11-18-2019 EDA Complete AgendaE C O N O MIC D E V E L O P ME N T AU T H O R IT Y ME E TIN G
R IC H F IE L D MU N IC IPAL C E N T E R , C O U N C IL C H AME R S
N O V E MB E R 18, 2019
7:15 P M (I MMEDI AT ELY FO L L OWI NG THE H R A M EE T I N G)
C all to Order
Approval of the Minutes
A pproval of the mi nutes of the: 1) Regular E conomi c D evelopment A uthority meeting of A ugust 19, 2019; 2) The E D A
work session on October 21, 2019
AG E N D A AP P R O VAL
1.A pproval of the A genda
O T H E R B U SIN E S S
2.C onsideration of the approval of a Transformati on Home L oan P ilot P roject to expand program parameters to
accommodate up to three loans for projects constructing A ccessory D welling Uni ts.
S taff Report No. 7
E D A D IS C U S S IO N ITE MS
3.E D A D i scussi on Items
E X E C U T IV E D IR EC TO R R E P O R T
4.E xecutive D i rector's Report
C L AIMS
5.C laims and P ayrolls
6.A djournment
Auxiliary aids for individuals with disabilities are available upon request. R equests must be made at least 96
hours in advance to the C ity Clerk at 612-861-9738.
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 19, 2019
CALL TO ORDER
The meeting was called to order by President Supple at 7:27 p.m. in the Council Chambers.
EDA Members Mary Supple, President; Pat Elliott; Maria Regan Gonzalez, and Erin Vrieze
Daniels.
EDA Members Absent Sue Sandahl
Staff Present: John Stark, Executive Director; Julie Urban, Housing Manager; Katie
Rodriguez, City Manager; Chris Regis, Finance Director; Neil Ruhland,
Communications and Engagement Manager.
APPROVAL OF THE MINUTES OF THE REGULAR ECONOMIC DEVELOPMENT AUTHORITY
MEETING OF JANUARY 15, 2019.
M/ Vrieze Daniels, S/Elliott to approve the minutes of the regular Economic Development
Authority meeting of January 15, 2019.
Motion carried 4-0.
Item #1
APPROVAL OF THE AGENDA
M/Elliott, S/Regan Gonzalez, to approve the agenda.
Motion carried 4-0.
Item #2
CONSIDERATION OF THE CONSENT CALENDAR
Executive Director Stark presented the Consent Calendar:
A. Consideration of the adoption of revisions to the Inclusionary Housing Policy with
regards to Housing and Redevelopment Authority scattered-site programs.
M/Regan Gonzalez, S/Elliott to approve the consent calendar.
Motion carried 4-0.
Item #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR
None.
EDA Meeting Minutes -2- August 19, 2019
Item #4
CONSIDERATION OF RESOLUTIONS APPROVING PROPOSED PROPERTY TAX
LEVY FOR PAYABLE 2020 FOR CERTIFICATION TO HENNEPIN COUNTY
Finance Director Regis presented the staff report regarding the proposed EDA property tax
levy for 2020, explaining that the levy represents a 2.34% decrease from this year. Executive
Director Stark gave a presentation on the budget, reviewing the various programs funded by the
EDA.
Commissioner Regan Gonzalez asked for additional information on use of the Open to
Business program. Executive Director Stark explained that there would be a future work session on
a potential Business Development program and that he would bring data on usage at that time.
M/Regan Gonzalez, S/Elliott to approve resolutions approving the proposed property tax
levy for payable 2020 for certification to Hennepin County.
Motion carried 4-0.
Item #5
EDA DISCUSSION ITEMS
None.
Item #6
EXECUTIVE DIRECTOR REPORT
None.
Item #7
CLAIMS AND PAYROLLS
M/Vrieze Daniels, S/Regan Gonzalez that the following claims and payroll be approved:
U.S. BANK 2/18/19
EDA Checks: 20153-20169 $44,904.00
TOTAL $44,904.00
U.S. BANK 3/18/19
EDA Checks: 20170 - 20182 $12,150.00
TOTAL $12,150.00
U.S. BANK 4/15/19
EDA Checks: 20183 - 20193 $7,250.00
TOTAL $7,250.00
U.S. BANK 5/20/19
EDA Checks: 20194 - 20207 $14,050.00
TOTAL $14,050.00
U.S. BANK 6/17/19
EDA Meeting Minutes -3- August 19, 2019
EDA Checks: 20208 - 20224 $29,307.00
TOTAL $29,307.00
U.S. BANK 7/15/19
EDA Checks: 20225 - 20240 $40,435.75
TOTAL $40,435.75
U.S. BANK 8/19/19
EDA Checks: 20241- 20253 $9,050.00
TOTAL $9,050.00
Motion carried 4-0.
Item #8
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:40 p.m.
Date Approved: _____________________
Mary B. Supple
President
Julie Urban John Stark
Housing Manager Executive Director
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Work Session Meeting
October 21, 2019
CALL TO ORDER
The meeting was called to order by Housing and Redevelopment Authority Chair Supple at
5:48 p.m.
ATTENDANCE
EDA Members Present: Mary Supple, President; Pat Elliott; Erin Vrieze Daniels; Sue Sandahl
EDA Members Absent:
Maria Regan Gonzalez
Staff Present: John Stark, Director of Community Development/EDA Executive
Director
Katie Rodriguez, City Manager
Julie Urban, Housing Manager
ITEM #1
DISCUSSION OF BUSINESS DEVELOPMENT ACTIVITIES AND PROGRAMS
Executive Director Stark explained the background of the City’s business development
activities and reviewed the current programs.
President Supple shared comments from Commissioner Regan Gonzalez, who was unable
to be in attendance. Commissioner Regan Gonzalez wrote in support of the programs suggested
by staff and agreed that additional staff is not the answer. She also asked what would outreach to
small businesses look like and encouraged building off the existing partnership with the Chamber
of Commerce. She also expressed her desire to see the City work collaboratively with partners to
move business development work forward.
Executive Director Stark explained that staff turnover made consistent work with the
Chamber more challenging and reminded Commissioners that the Chamber represents its
members, not all Richfield businesses. A discussion followed regarding ways to work together on
business development with the Chamber.
Rob Smolund from the Metropolitan Consortium of Community Developers (MCCD)
described his work with Richfield residents and businesses through the Open to Business
Program. Executive Director Stark explained that we’re working on more consistent market of the
program and exploring social media and other ways of creating awareness about the program.
Executive Director Stark stated that the Economic Development Authority (EDA) has
$170,000 available for business development and that there are several potential uses for the
funds, including a business assistance loan.
CC/HRA Meeting -2- August 19, 2019
Lee Hall, Chief Operating Officer at MCCD, talked about their lending experience and how
they’re using that capacity to assist communities with loan products. He explained that cities can
structure the business loans however they want, and MCCD will administer, underwrite and service
the loans.
Executive Director Stark reviewed potential terms of a Richfield loan program, explaining
that the maximum loan would be $75,000, in order to comply with the State’s business subsidy law.
He described a second option for EDA funds would be to create a displaced business fund specific
to businesses being displaced by any City/HRA project. In response to a question from
Commissioner Vrieze Daniels, Executive Director Stark explained that the program could apply to
all displaced businesses but reminded Commissioners that resources are limited. He explained
that a tiered program could be available to all but would prioritize and give greater funds to
businesses displaced by a City/HRA project.
A third possible program would be to promote energy-efficiency loans through the Center
for Energy and Environment. The EDA could also use its funds to buy down the interest rate.
Executive Director Stark described additional options for business development, including
moving the façade improvement grant to a different geographic area, e.g., East 66th Street, and/or
expanding banners to other areas, e.g., Cedar Point. The Commissioners discussed recognizing a
business on an annual basis and marketing all resources to local businesses. Given the positive
interest in all the options, Executive Director Stark explained that staff would come back to the
EDA with one program at a time, providing more specifics, and asking for approval.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:45 p.m.
Date Approved: , 2019
Mary B. Supple
EDA President
Julie Urban John Stark
Housing Manager Executive Director
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #2.
STAFF RE P ORT NO. 7
E CONOMIC DEVELOPME NT AUT HORIT Y
ME E T ING
11/18/2019
RE P O RT P RE PA RE D B Y: K ate A i tchi son, Housing S pecialist
O TH E R D E PA RTM E NT RE V IE W:
E X E C U TIV E D IRE C TO R RE V IE W: John S tark, E xecutive D irector
11/12/2019
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the approval of a Transfor mation Home Loan Pilot Project to expand program
parameters to accommodate up to three loans for projects constructing Accessory D welling Units.
E X E C UT IV E S UM M ARY:
A homeowner recently contacted staff about applying for a Transformation Home Loan for an
Accessory Dwelling Unit (ADU) project on her property. AD Us offer homeowners the opportunity to
either add rental income or provide housing for family members such as elderly parents, adult
children or those with disabilities needing extra care. In addition, ADUs provide the community with
more variety in housing stock and affordable rental options. Staff would like to take the opportunity
to expand the Transformation Home Loan program to show support for this concept, while asking for
additional homeowner feedback and outreach in return.
The A D U Pilot P rojec t would be available November 19, 2019 to December 31, 2021, and would give the
Executive Director authority to approve up to three Transformation Loans for A D U projec ts.
The following exc eptions would also be added to the Transformation Home Loan guidelines:
1. The application fee of $350 would be waived.
2. A free architec tural consultation will be offered to the applic ant.
3. The loan would still be c alculated at 15% of projec t c ost, with the maximum loan amount raised from
$25,000 to $30,000.
4. Homeowners would be asked to agree to spotlight their projec ts on either the Richfield Remodeled
Home Tour or through a case study narrative.
Constructing an A D U c an be cost-prohibitive. Providing more funding and resources will offer the
homeowner added inc entive to c omplete their A D U project, while also giving staff a mechanism for outreach
and education to the broader community.
RE C O M M E ND E D AC T IO N:
By motion: Approve the Transformation Home Loan Accessory Dwelling Unit Pilot Project to allow for
the funding of up to three Transformation H ome Loans for projects involving accessory dwelling
units.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
Over the past few years, C ommunity Development staff have explored the role of A D Us within the
c ommunity, from both a Planning and Zoning and Building I nspections perspec tive. The C ity currently
has an ordinanc e in plac e that allows for the development of A D Us but has had no official applicants to
date.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The promotion of A D U’s is c onsistent with the Housing Vision Statement (S tatement) that was
accepted by the City Council and HRA in J une 2013. The Statement calls for a full range and
balanc e of housing ty pes in the community that matc h the choic es of residents at every stage of
their lives.
The proposed AD U P ilot Project is also consistent with the C omprehensive Plan update which
calls for the rehabilitation and upgrade of the City's housing stoc k and specifically enc ourages
use of the City 's Acc essory Dwelling Unit ordinanc e to inc rease the number of housing units and
expand housing options for extended families.
Transformation Home Loan
The Transformation Home Loan is available for transformative home remodeling projec ts with a
cost of $50,000 or more.
The loan amount is c alculated at 15% of the project cost, with a maximum loan amount of $25,000.
The loan has no payments and accrues no interest.
Ac cessory Dwelling Units - Planning & Zoning (512.05 Subd 8(R), 518.05 S ubd.8 (R-1).
I nternal (basement), attached or detac hed A D Us are allowed.
Detac hed A D Us are only permitted as part of a detac hed garage structure.
The owner of the property must oc cupy at least one dwelling unit.
C.C R IT IC AL T IMIN G ISSU E S:
The homeowner is eager to begin work on the projec t and hopes to start before the end of 2019.
D.F IN AN C IAL IMPAC T:
The E D A currently budgets $130,000 annually for Transformation Home Loans.
This A D U Pilot Projec t would allow for a maximum loan of $30,000 rather than $25,000.
The $350 application fee for the Transformation Home Loan would be waived.
A free Arc hitectural C onsultation would be available to the homeowner, if needed ($250 value)
Design and c onstruc tion of A D Us can be c ost-prohibitive, and these expanded allowances will
help to offset the financ ial barriers.
E.L E GAL C ON S ID E R AT ION :
The terms and conditions of the loan would remain the same, and a mortgage and promissory note would
be filed with Hennepin County to secure the lien.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
Do not approve the Transformation Home Loan AD U Pilot Project.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
None
AT TAC H ME N TS :
D escripti on Type
Transformation Home L oan A D U P ilot P roject B ackup Materi al
Transformation Home Loans
Accessory Dwelling Unit Pilot Project
The objective of the Accessory Dwelling Unit (ADU) Pilot Project is to ascertain the demand and function
of a Transformation Home Loan within the construction of an ADU on a Richfield residential parcel.
The pilot project would allow for up to 3 loans to be made under the Transformation Home Loan
guidelines through the end of calendar year 2021.
The following expansions would be included within the guidelines of the Transformation Home Loan:
1) The application fee of $350 would be waived
2) A free architectural consultation will be offered to the applicant
3) The loan would still be calculated at 15% of project cost, but the maximum loan amount is raised
from $25,000 to $30,000.
4) Homeowners would be asked to agree to spotlight their projects on either the Richfield
Remodeled Home Tour or through a Case Study narrative for the City of Richfield.
To be approved for the ADU Pilot Project, an applicant must contact a Housing Specialist and begin an
application for the Transformation Home Loan.
The Economic Development Authority Executive Director may approve additional ADU Pilot Projects
through December 31, 2021, not to exceed three loans.
Criteria for Project Eligibility:
1. Must be constructing an ADU that meets Richfield’s zoning code requirements.
2. Must be an owner-occupied housing unit (main residence)
3. Project must have a minimum cost of $50,000
4. Project must have guidance from an experienced builder or architect familiar with urban ADU
construction.