07-19-2021 HRA Complete AgendaR E G U L AR H O U S IN G AN D R E D E V E LO P ME N T AU T H O R IT Y MEET IN G
R IC H F IE L D MU N IC IPAL C EN TER, C O U N C IL C H AMB E R S
JU LY 19, 2021
7:00 P M
C all to Order
A ttendance Roll C all
Open F orum: To participate live in the open forum to address the H R A on items not on the current agenda dial 612-
861-0651
Approval of the Minutes
A pproval of the mi nutes of the 1) J oint C ity C ounci l, Housing and Redevelopment A uthority and P lanning C ommissi on
work session of J une 21, 2021; and 2) the regular Housing and Redevelopment A uthori ty meeting of June 21, 2021.
AG E N D A AP P R O VAL
1.A pproval of the A genda
2.Consent C alendar contains several separate items which are acted upon by the H R A in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further H R A action on these items is necessary. However, any H R A
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for H R A discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A .C onsi der an adjustment to the payment standard for the S ection 8 Housi ng C hoice Voucher P rogram.
S taff Report No. 20
3.C onsideration of items, if any, removed from C onsent C alendar
O T H E R B U SIN E S S
4.C onsideration of a resolution approving the amendment, assignment and assumpti on of the P reliminary
Redevelopment A greement with P enn Investments L L C and P enn Investments L i mited P artnership for a
proposed multi -family housing development at 6501 P enn Avenue S outh.
S taff Report No. 21
H R A D IS C U S S IO N IT E MS
5.H R A D iscussion Items
E X E C U T IV E D IR EC TO R R E P O R T
6.E xecutive D i rector's Report
C L AIMS
7.C laims
8.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.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Concurrent Housing and Redevelopment
Authority, City Council and Planning
Commission Work Session
June 21, 2021
CALL TO ORDER
The work session was called to order by HRA Chair Supple at 5:45 p.m. in the Bartholomew
Room.
HRA Members Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl and Lee Ohnesorge
Present:
HRA Members
Absent: Erin Vrieze Daniels
Council Members
Present: Maria Regan Gonzalez, Mayor; Mary Supple, Ben Whalen and Sean Hayford
Oleary and Simon Trautmann
Council Members
Absent: None
PC Members
Present: Kathryn Quam, Chair and Brendan Kennealy;
PC Members
Absent: Brian Pynn; Brett Stursa; Susan Rosenberg and Jim Rudolph
Staff Present: Katie Rodriguez, City Manager; John Stark, HRA Executive
Director/Community Development Director; Melissa Poehlman, Assistant
Community Development Director; and LaTonia DuBois, Administrative
Assistant.
Others Present: Amy Gudmestad, MICC; Ben Lentz MICC; Bob Cunningham, Inland
Development Partners; Daniel Oberpriller, Northbay; Michael Stoddard, DJR
Architecture.
Item #1
INTRODUCTION AND PRELIMINARY DISCUSSION OF FUTURE PLANS FOR THE
MINNESOTA INDEPENDENCE COLLEGE AND COMMUNITY.
Concurrent HRA, City Council and Planning Commission Work Session -2-
June 21, 2021
Assistant Community Development Director Poehlman gave background information about
Minnesota Independence College and Community (MICC) and introduced Amy Gudmestad and Bob
Cunningham.
Bob Cunningham explained he is part of the development team for the MICC and Bumpy Lane
development.
Amy Gudmestad explained who MICC is, what the program offers, history and success of the
program and how the program continues to grow and the need for more space to extend the program.
Amy Gudmestad spoke of partnerships with MICC and local businesses. Amy Gudmestad expressed
gratitude and the benefits of being located in Richfield, the assistance offered by Richfield Police and
Fire departments and invited policy makers to visit MICC for a tour.
Bob Cunningham explained the development currently envisioned and shared a power point of
the development concept, explained the housing units would be available to students, graduates and
all residents of Richfield at affordable or low income rates. Requested feedback on the vision, if it is
an appropriate land use and hopes of a future resolution of support from the Housing and
Redevelopment Authority and City Council to apply for various funding mechanisms and requested
assistance of City staff to assist the development team with offering affordable and low income
housing options.
Council Member Whalen inquired about the current location within the Colony Apartments.
Amy Gudmestad explained that this development would be in addition to the space used at the
Colony Apartments, but fewer units at the Colony Apartments would be occupied by MICC.
Commissioner Ohnesorge inquired about the number of graduates for the current year.
Planning Chair Quam asked if all units would be affordable and how many would be available
to the community outside of MICC.
Bob Cunningham explained the goal is to have all units at low income or affordable levels and
the mix of MICC members and graduates and other community members would be about 50/50.
Chair Supple inquired about unit sizes.
Bob Cunningham explained current unit size visions.
Council Member Trautmann inquired about how many units would be ADA Accessible and if
there would be any tax revenue from the non-profit organization that would own the property.
Bob Cunningham stated that the development team would be asking for Tax Increment
Financing and mentioned that they would have more than the minimum requirement of Accessible
units, but more programing is yet to come.
Mayor Regan Gonzalez supported the proposal overall and encouraged MICC to reach out to
get Best Buy involved with the program. Spoke of the opportunity to be an example by building
partnership with local businesses and MICC.
Council Member Hayford Oleary commented on the land use and inquired about if this
would be a tax base development and concerns with the project and the residential units in the area.
Chair Supple inquired about parking.
Concurrent HRA, City Council and Planning Commission Work Session -3-
June 21, 2021
Bob Cunningham stated the current plan is to have all surface parking, but that they would
be looking into the possibilities of having underground parking as well.
Council Member Whalen shared that he would like to see units affordable at 30% Area
Median Income and a variety of affordability levels and would also like to see the design on the
building incorporate business partnerships.
Planning Chair Quam inquired about zoning changes and potential Comp Plan changes.
Assistant Community Development Director Poehlman explained current zoning and
possible changes that would be required in the future.
Item #2
DISCUSSION OF A NEW DEVELOPMENT PROPOSAL FOR THE PROPERTY AT
101 66TH STREET EAST (SITE OF THE PREVIOUSLY APPROVED EMI
DEVELOPOMENT).
Community Development Director Stark reminded policy makers of the history of the
development site and recommended the development team to hold neighborhood meetings, and
introduced Michael Stoddard, DJR Architecture and Daniel Oberpriller, Northbay Company.
Michael Stoddard shared the proposed development plans for a mixed use building with
commercial space.
Daniel Oberpriller provided further building design information, access points and parking
information for the proposed development. Daniel Oberpriller informed staff and policy makers that
they have closed on the property, spoke of the sustainability of the building, informed staff and policy
makers they would be seeking Tax Increment Financing and would offer 20% of units at 60% of the
Area Median Income.
Council Member Hayford Oleary inquired about traffic on 66th Street.
Assistant Community Development Director Poehlman explained the engineering department
and Hennepin County would review the proposal and evaluate any traffic concerns.
Council member Hayford Oleary mentioned concerns around the building height and the
preference to lower the building height, lighting concerns with the parking ramp and potential noise
and lighting on the balcony.
Daniel Oberpriller explained.
Planning Chair Quam inquired about the six story portion of the building and the location to the
houses on Stevens Avenue.
Daniel Oberpriller explained there are no houses directly across from the six story portion of
the building.
Assistant Community Development Director explained the lot directly across from the six story
portion of the building is a retaining pond and a home would not be developed at that location.
Concurrent HRA, City Council and Planning Commission Work Session -4-
June 21, 2021
Planning Chair Quam inquired about the main entrance and exit and inquired about how the
lighting may affect homes and mentioned it would be more desirable to spread out units on top of the
one story commercial space to reduce the six story portion.
Mayor Regan Gonzalez mentioned concerns around the building height.
Council Member Whalen also inquired about including residential units above the commercial
space and the oddity of having a single story portion of a building that also has six stories.
Council Member Trautmann stated concerns about lighting from the entrance.
Mayor Regan Gonzalez stated the benefits of having a community meeting regarding the
development and thanked residents for their comments and attendance.
Chair Supple inquired about green space on the lot.
Michael Stoddard explained landscaping plans and opportunities.
Chair Supple inquired about parking ratio
Daniel Oberpriller shared the proposed parking ratio.
Chair Supple echoed the desire to reduce the six story portion of the development.
Council Member Whalen stated he would like to know what the neighbors think about the
proposal and other building height designs.
Chair Supple inquired about accessibility.
Michael Stoddard shared the accessibility plans.
Community Development Stark shared what the next steps and requirements would be.
ADJOURNMENT
The work session was adjourned by unanimous consent at 6:44 p.m.
Date Approved: July 19, 2021
Mary Supple
Chair
LaTonia DuBois John Stark
Administrative Assistant Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 21, 2021
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:00 p.m. in the Council Chambers.
HRA Members Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl, Lee Ohnesorge
Present: and Erin Vrieze Daniels.
HRA Members None
Absent:
Staff Present: John Stark, Community Development Director/Executive Director; Julie
Urban, Housing Manager; and LaTonia DuBois, Administrative Assistant,
and Kari Sinning; City Clerk.
Others Present: Lori Boisclair; Boisclair Corporation and NHH Properties Development team,
Jared Hillman; Benefactor Brewing – Via phone.
OATH OF OFFICE OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
COMMISSIONER, LEE OHNESORGE
City Clerk Sinning administered the Oath of Office to Commissioner Ohnesorge.
RETURNING TO IN-PERSON MEETINGS
Chair Supple announced the return to in-person meetings.
OPEN FORUM
Chair Supple provided instructions to call in for the open forum.
No Callers.
APPROVAL OF THE MINUTES
HRA Meeting Minutes -2- June 21, 2021
M/Sandahl, S/Regan Gonzalez to approve the minutes of the regular Housing and
Redevelopment meeting of May 17, 2021.
Motion carried 5-0
Item #1
CONSENT CALENDAR
Executive Director Stark presented the Consent Calendar:
A. Consideration of the approval of revisions to the Richfield Rediscovered Lot Sale
Program Guidelines and the Richfield Rediscovered Credit Program Guidelines.
(Staff Report No. 16)
B. Consideration of a resolution approving the conveyance of the northern portion
of 6600 Logan Avenue South and 6600 newton Avenue South from the Housing
and Redevelopment Authority to the City of Richfield. (Staff Report No. 17)
M/Vrieze Daniels, S/Sandahl to approve the Consent Calendar.
Motion Carried 5-0
HRA RESOLUTION NO. 1396
RESOLUTION APPROVING CONVEYANCE OF CERTAIN REAL PROPERTY TO CITY OF RICHFIELD, MINNESOTA
Item #2
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None.
Item #3
CONSIDERATION OF A RESOLUTION SUPPORTING A TAX CREDIT
APPLICATION FOR A PROOSED MULTI-FAMILY HOUSNG DEVELOPMENT AT
6501 PENN AVENUE SOUTH. (S.R. NO. 18)
Housing Manager Urban presented Staff Report No. 18.
Commissioner Vrieze Daniels asked if there would be any changes to the building since last
reviewed.
Housing Manager Urban stated that the commercial space has been removed and the unit
mix has been adjusted to make the development financially feasible.
Commissioner Vrieze Daniels expressed enthusiasm about the project meeting a number of
the City’s housing goals.
Commissioner Regan Gonzalez inquired about when policy makers would know if the
project received funding.
HRA Meeting Minutes -3- June 21, 2021
Housing Manager Urban stated they should know in December 2021.
Commissioner Sandahl expressed enthusiasm about the number of 2 and 3 bedroom units.
Commissioner Ohnesorge expressed appreciation for the mix of units and the accessible
units available.
Lori Boisclair, Development team stated that they are committed to the Section 811 units as
well as the subsidized units.
Chair Supple inquired if the parking ratio would be based on bedroom size or if it would be
per unit.
Housing Manager Urban responded the parking ratio is based on per unit and plans to
speak with the Planning Commission and further reviews.
M/Vrieze Daniels, S/Regan Gonzalez to approve a resolution supporting a tax credit
application for a proposed multi-family housing development at 6501 Penn Avenue South.
Motion Carried 5-0
HRA RESOLUTION NO. 1397
RESOLUTION SUPPORTING A TAX CREDIT APPLICATION FOR A MULTIFAMILY HOUSING PROJECT
Item #4
CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING WITH
BENEFACTOR BREWING. (S.R. NO. 19)
Executive Director Stark presented Staff Report No. 19
Jared Hillman, Benefactor Brewing, spoke of plans to host events and goals to be involved
with the community.
Commissioner Regan Gonzalez asked about different funding options to allow Benefactor
Brewing to have a competitive offer.
Executive Director Stark explained possible further funding options.
Commissioner Vrieze Daniels inquired about how the HRA can spend Housing and
Redevelopment Funds.
Executive Director Stark explained how the Funds could be used under current rules.
Commissioner Regan Gonzalez spoke of redevelopment costs in the City and inquired
about other lots that may be viable for a brewery.
HRA Meeting Minutes -4- June 21, 2021
Executive Director Stark explained some of the building requirements for breweries and
the lack of potential development space for such a development.
Commissioner Vrieze Daniels spoke of the limited possible uses for the Housing and
Redevelopment Funds and offered support for the proposal.
Commissioner Regan Gonzalez would be in favor of staff coming back to the HRA for
additional support.
Chair Supple asked that the development team work with the neighborhood regarding use
of the amphitheater and to be good neighbors.
M/Regan Gonzalez, S/Sandahl approve the attached Memorandum of Understanding (and
the terms therein) with Benefactor Brewing and direct staff to: Draft a Contract for Private
Development with Benefactor Brewing; Draft a Mortgage with Benefactor Brewing; Draft a
Business Subsidy with Benefactor Brewing, and; Reevaluate the Tax Increment to be generated in
the Lyndale Gardens Tax Increment Financing District to determine the potential of increasing the
Pay-As-You-Go Tax Increment Financing Note to Lyndale Gardens, LLC.
Motion carries 5-0
Item #5
HRA DISCUSSION ITEMS
Commissioner Regan Gonzalez stated that she looks forward to future conversations with
staff regarding pooled Tax Increment.
Chair Supple informed residents about possible funding for rent assistance through VEAP
and through the State of MN.
Item #6
EXECUTIVE DIRECTOR’S REPORT
Executive Director Stark reported on a house bill surrounding the expiration of the eviction
moratorium.
Executive Director Stark reported on special legislation regarding how restrictive the use of
Pooled Tax Increment funding is and new possible allowable uses of the funds through
compromised legislation.
Item #7
CLAIMS
HRA Meeting Minutes -5- June 21, 2021
M/Regan Gonzalez, S/Sandahl that the following claims be approved:
U.S. BANK 6/21/2021
Section 8 Checks: 132853-132936 $182,082.24
HRA Checks: 34013-34040 $93,343.19
TOTAL $275,425.43
Motion carried 5-0
Item #8
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:48 p.m.
Date Approved: July 19, 2021
Mary B. Supple
HRA Chair
LaTonia DuBois John Stark
Administrative Assistant Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
STAFF RE P ORT NO. 20
HOUSING AND REDE V E LOP MENT AUT HORIT Y
ME E T ING
7/19/2021
RE P O RT P RE PA RE D B Y: Lynnette C hambers, Multifamily Housing C oordi nator
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
7/13/2021
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consider an adjustment to the payment standar d for the Section 8 Housing C hoice Voucher Program.
E X E C UT IV E S UM M ARY:
On an annual basis, the U.S. Department of Housing and Urban Development (HUD ) establishes a Fair
Market Rent (FMR) for the Twin Cities Metropolitan A rea, by bedroom size. I ndividual Housing and
Redevelopment A uthorities are allowed to select a payment standard within 90% to 110% of HUD's F MR. The
selec tion of the payment standard should ensure that a suffic ient supply of rental housing is available to
Sec tion 8 Housing C hoice Voucher Program (P rogram) partic ipants. HUD's newly published F MRs have
inc reased and the Housing and Redevelopment A uthority 's (HRA) c urrent pay ment standards do not fit within
the established parameters. To remain in complianc e with HUD regulations, the HRA must increase its
payment standards. The proposed pay ment standards will fall between 90% to 91% of the current F MRs.
On September 21, 2020 the HRA approved new payments effec tive for December 1, 2020 based on the new
F MR's published on October 1, 2020. Since D ec ember 1, 2020, contract rents continue to increase for
tenants, but there has been a new trend by owners/management c ompanies to charge tenants a shared utility
fee. The shared utility fee is a fee shared by all the tenants in the c omplex to help pay for the water, trash and
sewer costs. The fees range between $30 to $50 a month based on unit size. The additional shared fees
coupled with the annual contract rent increases are a barrier to Section 8 voucher holders finding affordable
housing.
The shared utility fees have the highest impact on the one and two bedroom apartment community; therefore,
the proposed pay ment standard inc rease is only for our one and two bedrooms.
RE C O M M E ND E D AC T IO N:
By motion: Approve the proposed adjustment of the payment standard for the Section 8 Housing
Choice Voucher Pr ogram.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
The HRA last adjusted its payment standards in September 2020.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Sec tion 8 partic ipants currently living in one and two bedroom units will receive a larger portion of
rent assistance with the increased pay ment standard, helping to offset the shared utility fees
charged.
Sec tion 8 partic ipants will be able to c hoose from a larger selection of affordable housing units
and may rec eive some immediate rent relief on a c ase-by -case basis.
HUD provides suffic ient federal assistance to c over these adjustments in the payment standards
and has approved the inc rease.
W ithout an increase in the payment standard, many Sec tion 8 participants will be unable to find
housing and keep up with changing rents.
Potential changes in Federal law impact the financ ial resources available to the Program if the
HRA does not remain current with the F MR.
C.C R IT IC AL T IMIN G ISSU E S:
The new pay ment standards will be effective August 1, 2021.
D.F IN AN C IAL IMPAC T:
An inc rease in the pay ment standard will dec rease the rent burden for S ec tion 8 partic ipants.
HUD provides suffic ient funding to c over the increase.
E.L E GAL C ON S ID E R AT ION :
The c ontrac t between the HRA and HUD provides for F MR adjustments in ac cordanc e with
federal regulations.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
Do not change the payment standard at this time; however, this will create a larger rent burden for our
tenants.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
N/A
AT TAC H ME N TS :
D escripti on Type
071921 S ection 8 P ayment S tandard 8 - 2021 C over Memo
Proposed Payment Standards effective 8/1/2021
0 BDR 1 BDR 2 BDR 3 BDR 4 BDR 5 BDR
810 1000 1225 1655 1945 2281
Current Payment Standards effective 12/01/2020
0 BDR 1 BDR 2 BDR 3 BDR 4 BDR 5 BDR
810 950 1180 1655 1945 2281
HUD FMR effective 10/1/2020
0 BDR 1 BDR 2 BDR 3 BDR 4 BDR
898 1054 1308 1838 2156
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #4.
STAFF RE P ORT NO. 21
HOUSING AND REDE V E LOP MENT AUT HORIT Y
ME E T ING
7/19/2021
RE P O RT P RE PA RE D B Y: Julie Urban, Housing and Redevelopment Manager
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
7/14/2021
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of a resolution approving the amendment, assignment and assumption of the
Preliminary R edevelopment Agreement with Penn Investments L L C and Penn Investments Limited
Partnership for a proposed multi-family housing development at 6501 P enn Avenue South.
E X E C UT IV E S UM M ARY:
The development team of B oisc lair Corporation and NHH Properties (Developer) is proposing to redevelop
the property at 6501 Penn Avenue South and 6500-04 Oliver Avenue South with 63 apartments, including 15
units for people with disabilities. The Housing and Redevelopment Authority (HRA) owns the property at 6501
Penn Avenue South and 6500 Oliver Avenue South and approved a Preliminary Redevelopment Agreement
(Agreement) with the Developer in 2020.
The Developer is proposing to fund the project primarily with federal tax credits, a mortgage through
Minnesota Housing, federal HOME funds, and Metropolitan Council Local Housing I ncentive A cc ount (L HI A)
funds. One-hundred percent of the units would be inc ome-restricted at a mix of income levels, including 30%,
50% and 60% of the Area Median I nc ome.
The Agreement is set to expire on J uly 31, 2021. The deadline was established to give the HRA and the
Developer the option to terminate the Agreement in the event the Developer did not submit an application for
tax c redit funding. An applic ation was submitted by the J uly 15th deadline, and awards are expected in
December 2021. W ith the amendment, the Agreement would be extended until J anuary 31, 2022, with the
option under the E xecutive D irec tor ’s discretion to extend that an additional 60 days if the projec t is awarded
tax c redits. I n addition, the Agreement would be assigned to Penn I nvestments Limited Partnership for
purposes of the tax credit financing.
RE C O M M E ND E D AC T IO N:
By motion: Approve a resolution authorizing the execution and delivery of an amendment, assignment
and assumption of a Preliminary Redevelopment Agreement with Penn Investments LL C and Penn
Investments Limited Partnership for a proposed multi-family housing development at 6501 Penn
Avenue South.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
The HRA purc hased the former Bumper to Bumper auto parts property in J anuary 2019.
The D eveloper presented a proposal for the property to joint work sessions of the Ric hfield City
Council, HRA and Planning Commission on September 16 and November 18, 2019.
The HRA approved a Preliminary Redevelopment Agreement with the Developer, doing business
as P enn I nvestments LLC, on J anuary 21, 2020.
An additional work session on projec t affordability options was held with the HRA on February 18,
2020, and a sec ond session was held with both HRA and Council on J une 15, 2020. A majority of
polic ymakers expressed support for further exploring both deeper affordability and possible units
for people with disabilities.
The HRA approved an amended Preliminary Redevelopment Agreement on November 16, 2020,
extending project deadlines into 2021, due to delays caused by the pandemic .
On J une 21, 2021, the HRA approved a resolution in support of the application for federal tax
credits.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The property is zoned and guided for Mixed Use with the Penn Avenue Overlay. The goal of the
Penn Avenue Corridor D istrict is to provide for a balanced mix of commercial, offic e and
residential uses that together create a c ohesive and pedestrian-friendly area.
The C ity's Comprehensive P lan and Housing Visioning statement encourage the development of a
full range of housing c hoices.
The Metropolitan Counc il has determined the City 's share of housing affordable at 30% of the
Area Median I nc ome (A MI ) to be 66 units.
The City's I nclusionary Housing Polic y (P olicy ) requires the inclusion of at least 20% of units
affordable at 60% of the A MI for all projects rec eiving City financial assistance. The Policy also
encourages deeper affordability and larger bedroom sizes. The c oncept being explored by the
Developer would exc eed this requirement.
Federal tax c redit applic ations are funded based on how well a project sc ores and is in alignment
with the State's Qualified Allocation Plan (QA P). The Developer has put together the proposed
project and its mix of affordability in order to meet the goals of the QA P and be c ompetitive for
funding.
C.C R IT IC AL T IMIN G ISSU E S:
Applic ations for tax credits were due to Minnesota Housing by J uly 15, 2021. Awards are
expected in December 2021.
The A greement expires J uly 31, 2021.
A formal Redevelopment Agreement and Tax I nc rement Financing (TI F) Plan, pl anning review
and land use approvals, outreach to the neighborhood, and engagement with
stakeholders are expected in the next several months.
D.F IN AN C IAL IMPAC T:
The D eveloper is apply ing to Minnesota Housing for $6.7 million in federal tax credits and an
additional $4.6 million deferred loan.
The D eveloper anticipates a gap of approximately $1 million to be filled with tax increment. The
HRA will be asked to approve a Housing TI F Distric t and issue a Pay-As-You-Go Note of
$631,000, plus interest, to fill this gap. There is suffic ient increment generated by the project to
meet this need.
The estimated end-value of the projec t is $10 million.
E.L E GAL C ON S ID E R AT ION :
A Limited Partnership is necessary for tax c redit purposes requiring an assignment of the
Agreement to Penn I nvestments Limited Partnership.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
Decide not to support the application for tax c redits.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
Representatives from the development team.
AT TAC H ME N TS :
D escripti on Type
Resolution Resolution L etter
A mended A ssi gnment and Restatement E xhibit
S ite P lan B ackup Materi al
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF AN AMENDMENT,
ASSIGNMENT AND ASSUMPTION OF THE AMENDED AND RESTATED PRELIMINARY
REDEVELOPMENT AGREEMENT WITH PENN INVESTMENTS LLC AND PENN
INVESTMENTS LIMITED PARTNERSHIP
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) owns certain real property located 6500 Oliver Avenue South and 6501
Penn Avenue South (the “Redevelopment Property”) in the City of Richfield, Minnesota (the “City”);
and
WHEREAS, the Authority and Penn Investments LLC, a Minnesota limited liability company
(the “Assignor”), entered into a Preliminary Redevelopment Agreement, dated January 21, 2020 (the
“Original Preliminary Redevelopment Agreement”), setting forth the Assignor’s intentions to acquire
the Redevelopment Property, demolish the blighted buildings thereon, and construct a building with
market-rate and affordable housing units and up to 12,000 square feet of commercial space (the
“Project”); and
WHEREAS, the Authority and the Assignor entered into an Amended and Restated Preliminary
Redevelopment Agreement, dated November 20, 2020 (as amended and restated, the “Preliminary
Redevelopment Agreement”), which amended and restated the Original Preliminary Redevelopment
Agreement to modify deadlines and revise the scope of the Project to include 63 affordable housing
units, lobby, office space, storage space, and community room and no commercial space; and
WHEREAS, it is necessary for the Assignor to assign the Preliminary Redevelopment
Agreement to Penn Investments Limited Partnership, a Minnesota limited partnership (the “Assignee”),
as a result of the need to obtain tax credits for the Project; and
WHEREAS, the parties to the Preliminary Redevelopment Agreement also desire to extend the
termination date of the Preliminary Redevelopment Agreement from July 31, 2021 to January 31, 2022;
and
WHEREAS, the Board of Commissioners of the Authority (the “Board”) has been presented
with a form of an Amendment, Assignment and Assumption of the Amended and Restated Preliminary
Development Agreement (the “Amendment and Assignment Agreement”) between the Authority, the
Assignor, and the Assignee, pursuant to which the Assignor will assign its rights and interests in and its
obligations under the Preliminary Redevelopment Agreement to the Assignee, the Assignee will assume
such rights, interests, and obligations, and the termination date of the Preliminary Redevelopment
Agreement will be extended to January 31, 2022; and
WHEREAS, the Board has reviewed the Amendment and Assignment Agreement and finds that
the execution thereof by the Authority and performance of the Authority’s obligations thereunder are in the
best interest of the City and its residents; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
2
RC125-368-733329.v2
1. The Amendment and Assignment Agreement presented to the Authority and on file with
the Executive Director is hereby in all respects approved, subject to modifications that do not alter the
substance of the transaction and that are approved by the Chair and Executive Director; provided that
execution of such document by such officials shall be conclusive evidence of approval.
2. The Chair and Executive Director are hereby authorized to execute the Amendment and
Assignment Agreement on behalf of the Authority and to carry out on the Authority’s obligations
thereunder.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 19th day of July, 2021.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
AMENDMENT, ASSIGNMENT AND ASSUMPTION OF THE AMENDED AND RESTATED
PRELIMINARY REDEVELOPMENT AGREEMENT
THIS AMENDMENT, ASSIGNMENT AND ASSUMPTION OF THE AMENDED AND
RESTATED PRELIMINARY REDEVELOPMENT AGREEMENT is made and entered into this ____
day of July, 2021, between the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota, a Minnesota public body corporate and politic (the “HRA”), Penn Investments LLC, a
Minnesota limited liability company, or one of its wholly owned affiliates (the “Assignor”), and Penn
Investments Limited Partnership, a Minnesota limited partnership or one of its wholly owned affiliates
(the “Assignee”) and amends the Amended and Restated Preliminary Redevelopment Agreement, dated
November, 20, 2020 (the “Agreement”), between the HRA and the Assignor.
WITNESSETH
WHEREAS, the HRA and the Assignor entered into an Amended and Restated Preliminary
Redevelopment Agreement, dated November 20, 2020 (the “Amended and Restated Preliminary
Redevelopment Agreement”), with respect to the proposed redevelopment by the Assignor of the property
legally described therein, including the construction of a multi-phased project including a building with
up to 69 market-rate and affordable housing units, commercial space, lobby, office space, bike entrance,
storage space and community room; and
WHEREAS, the Assignor has requested that the Project be revised to include the construction of
a multi-phased project including a building with up to 63 affordable housing units, lobby, office space,
storage space, and community room (the “Project”); and
WHEREAS, the Assignor has requested that the termination date of the Amended and Restated
Preliminary Redevelopment Agreement be extended to January 31, 2022; and
WHEREAS, the Assignor desires to assign to the Assignee all of its interest in and its rights and
obligations under the Amended and Restated Preliminary Redevelopment Agreement as of the date
hereof, and the Assignee desires to assume the Assignor’s interest in and rights and obligations as the
“Redeveloper” under the Amended and Restated Preliminary Redevelopment Agreement from and after
the date hereof, all as more particularly set forth in this Agreement and
WHEREAS, the Assignee represents that it is in the process of undertaking the activities
described in Section 1 of the Agreement required to be performed by the Redeveloper but that it still in
the process of negotiating the terms of the Contract (as defined in the Agreement) contemplated in the
Agreement; and
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:
1. Definitions. All capitalized terms not defined herein shall have the meanings given such terms in
the Amended and Restated Preliminary Redevelopment Agreement.
2. Assignment and Assumption of Redevelopment Agreement. The Assignor hereby assigns to the
Assignee all of its interest in the Amended and Restated Preliminary Redevelopment Agreement and its
rights and obligations under the Amended and Restated Preliminary Redevelopment Agreement. The
RC125-368-733229.v3
Assignee hereby accepts such rights and assumes such obligations, subject to the terms of this Agreement.
The HRA acknowledges and consents to such assignment.
3. Covenants of the Assignee. The Assignee expressly assumes all of the obligations, rights and
interests of the Assignor as the “Redeveloper” under the Amended and Restated Preliminary
Redevelopment Agreement, and the Assignee agrees to be subject to all the conditions and restrictions to
which the Assignor is subject under the Amended and Restated Preliminary Redevelopment Agreement.
4. Release of Assignor. This Agreement shall be deemed to release and discharge the Assignor
from any obligations of the “Redeveloper” under the Amended and Restated Preliminary Redevelopment
Agreement, such obligations having been assumed by the Assignee.
5. Extension of Termination Date. The HRA hereby amends the Amended and Restated Preliminary
Redevelopment Agreement to extend the termination date to January 31, 2022, unless further extended up
to 60 days in the event of an award of federal tax credits, at the discretion of the Executive Director or
terminated in accordance with the terms of the Amended and Restated Preliminary Redevelopment
Agreement.
6. Governing Law. It is agreed that this Agreement shall be governed by, construed, and enforced
in accordance with the laws of the State of Minnesota.
7. Entirety of Agreement. This Agreement shall constitute the entire agreement between the parties
and any prior understanding or representation of any kind preceding the date of this Agreement shall not
be binding upon either party except to the extent incorporated in this Agreement.
8. Modification. Any modification of this Agreement or additional obligation assumed by either
party in connection with this Agreement shall be binding only if placed in writing and signed by each
party or an authorized representative of each party.
9. Execution in Counterparts. This Agreement may be executed, acknowledged, and delivered in
any number of counterparts and each of such counterparts shall constitute an original but all of which
together shall constitute one agreement.
(Remainder of this page is intentionally left blank.)
RC125-368-733229.v3
IN WITNESS WHEREOF, the parties have executed this Amendment, Assignment and
Assumption of the Amended and Restated Preliminary Redevelopment Agreement effective the date and
year first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By: ________________________
Mary B. Supple
Its: Chair
By: ________________________
John Stark
Its: Executive Director
PENN INVESTMENTS LLC, a Minnesota limited
liability company
By:
Name:
Its:
PENN INVESTMENTS LIMITED PARTNERSHIP, a
Minnesota limited partnership
By: ___________________________
Name: ___________________________
Its: ___________________________
kaas wilson architects
65TH AND PENNPROJECT DATA
1.0 03/12/20
UNIT MIX - GROSS AREA
Name Count
Unit Gross
Area
Total Area %Main Floor
1 BR
Unit 1-0 16 663 ft² 10,604 ft² 25%
16 10,604 ft² 25%
2BR
Unit 2-0 27 939 ft² 25,350 ft² 43%
Unit 2-1 3 1,142 ft² 3,425 ft² 5%
30 28,776 ft² 48%
3BR
Unit 3-0 3 1,215 ft² 3,645 ft² 5%
Unit 3-1 14 1,251 ft² 17,514 ft² 22%
17 21,159 ft² 27%
Grand total 63 60,538 ft² 100%
PARKING
Level Type Count
Level -1 63
63
GROSS AREA - TOTAL
Level Area
Level 4 17,170 ft²
Level 3 19,759 ft²
Level 2 19,759 ft²
Level 1 19,759 ft²
Level -1 20,057 ft²
Grand total 96,504 ft²
(54 GARAGE, 8 EXTERIOR)
street & utility easement
30'-0"
W 65TH STREET
OLIVER AVE SPENN AVE SEasement line
3 STORY ROOF4 STORY APARTMENT
BUILDING
63 UNITS
PLAZA PATIO
AT LEVEL 1
TOT LOT
RAISED GARDEN BEDS
GARAGE ENTRY
BUILDING MAIN ENTRY
N
kaas wilson architects
65TH AND PENNSITE PLAN
2.0 03/12/20
1/32" = 1'-0"1 SD Site Plan
8
9
10
11
12 13 14 15
16
171819202122
23
24
25
26
27
20,057 ft²
Garage
Mech/ Elec.
24'-0"
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
212223242526272829303132
54
53
52
51
50
49
48
47
46
45
44
43
42
41
40
39
38
37
36
35
33
34
2'-10 7/16"24'-0"3'-0"Bike Storage
kaas wilson architects
65TH AND PENNLEVEL -1
3.0 03/12/20
3/64" = 1'-0"1 Level -1
8
9
10
11
12 13 14 15
16
17181920212223
24
25
26
27
Color Scheme Legend
1 BR
2BR
3BR
12'-0"
Community
Room
Fitness
Lobby/Office
Stair A
Stair C
1,042 ft²
Core
939 ft²
Unit 2-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
939 ft²
Unit 2-0
939 ft²
Unit 2-0
1,251 ft²
Unit 3-1
1,251 ft²
Unit 3-1
663 ft²
Unit 1-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
1,251 ft²
Unit 3-1
1,251 ft²
Unit 3-1
663 ft²
Unit 1-0
939 ft²
Unit 2-0
Business
Center
patio
kaas wilson architects
65TH AND PENNLEVEL 1
3.1 05/05/21
3/64" = 1'-0"1 Level 1
8
9
10
11
12 13 14 15
16
17181920212223
24
25
26
8"1,142 ft²
Unit 2-1
27
1,042 ft²
Core
Color Scheme Legend
1 BR
2BR
3BR
939 ft²
Unit 2-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
939 ft²
Unit 2-0
939 ft²
Unit 2-0
1,251 ft²
Unit 3-1
1,251 ft²
Unit 3-1
663 ft²
Unit 1-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
939 ft²
Unit 2-0
1,215 ft²
Unit 3-0
1,251 ft²
Unit 3-1
1,251 ft²
Unit 3-1
663 ft²
Unit 1-0
939 ft²
Unit 2-0
Stair A
Stair C
kaas wilson architects
65TH AND PENNLEVEL 2
3.2 05/05/21
3/64" = 1'-0"1 Level 2
8
9
10
11
12 13 14 15
16
17181920212223
24
25
26
27
Color Scheme Legend
1 BR
2BR
3BR
Stair A
Stair C
1,142 ft²
Unit 2-1
1,042 ft²
Core
939 ft²
Unit 2-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
939 ft²
Unit 2-0
939 ft²
Unit 2-0
1,251 ft²
Unit 3-1
1,251 ft²
Unit 3-1
663 ft²
Unit 1-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
939 ft²
Unit 2-0
1,215 ft²
Unit 3-0
1,251 ft²
Unit 3-1
1,251 ft²
Unit 3-1
663 ft²
Unit 1-0
939 ft²
Unit 2-0
kaas wilson architects
65TH AND PENNLEVEL 3
3.3 05/05/21
3/64" = 1'-0"1 Level 3
8
9
10
11
12 13 14 15
16
17181920212223
24
25
26
27
Color Scheme Legend
1 BR
2BR
3BR
Stair A
Stair C
1,142 ft²
Unit 2-1
1,042 ft²
Core
939 ft²
Unit 2-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
939 ft²
Unit 2-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
939 ft²
Unit 2-0
663 ft²
Unit 1-0
939 ft²
Unit 2-0
1,215 ft²
Unit 3-0
1,251 ft²
Unit 3-1
1,251 ft²
Unit 3-1
663 ft²
Unit 1-0
939 ft²
Unit 2-0
ROOF
kaas wilson architects
65TH AND PENNLEVEL 4
3.4 05/05/21
3/64" = 1'-0"1 Level 4