06-21-2022 HRA Resolution No. 1435HRA Resolution No. 1435 1
HRA RESOLUTION NO. 1435
RESOLUTION APPROVING AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT
WITH MWF PROPERTIES, LLC
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) was created pursuant to Minnesota Statutes, Sections 469.001 through
469.047, as amended, and was authorized to transact business and exercise its powers by a
resolution of the City Council of the City of Richfield, Minnesota (the “City”); and
WHEREAS, MWF Properties, LLC, a Minnesota limited liability company (the “Developer”),
intends to acquire certain property from the Authority (the “Development Property”) and construct
thereon an approximately 55-unit multifamily housing development, including two (2) one bedroom
units of housing for people with disabilities, accompanied by supportive services for persons or
families whose income is thirty percent (30%) or less of the metro area’s median gross income and
five (5) two bedroom units reserved for persons or families whose income is fifty percent (50%) or
less of the metro area’s median gross income (the “Minimum Improvements”); and
WHEREAS, the Board of Commissioners of the Authority (the “Board”) previously
approved a Contract for Private Development (the “Development Agreement”) between the
Authority and the Developer, pursuant to which the Developer agreed to construct the Minimum
Improvements, and the Authority agreed to reimburse the Developer for certain public
redevelopment costs associated with the Minimum Improvements (the “Public Redevelopment
Costs”); and
WHEREAS, pursuant to the Development Agreement, the Authority proposed to convey
property to the Developer in exchange for a payment of $70,000 (resulting in a land write-down of
$700,000); and
WHEREAS, in order to make the Minimum Improvements economically feasible for the
Developer to construct, the Authority planned to reimburse the Developer for public redevelopment
costs in the amount of up to $881,848 by either (i) establishing a housing Tax Increment Financing
District (the “TIF District”) within the Richfield Project pursuant to Minnesota Statutes, Section
469.174 through 469.1794, as amended; or (ii) drawing funds from the City’s Affordable Housing
Trust Fund; and
WHEREAS, the Developer has determined to change the project to a 9% tax credit project
and plans to change the affordability mix of units to include four bedroom units and is exploring
energy efficiency measures; and
WHEREAS, the Developer intends to change the unit mix in the Minimum Improvements to
include seven (7) HPH Housing Support units, five (5) 811 units for disabled individuals, six units
for persons or families whose income is thirty percent (30%) or less of the metro area’s median
gross income, and nineteen (19) units for persons or families whose income is fifty percent (50%)
or less of the metro area’s median gross income; and
WHEREAS, the Developer has requested an additional amount of funds in the maximum
amount of $200,000 to be drawn from the City’s Affordable Housing Trust Fund in order to change
the affordability mix of units and implement energy efficiency measures; and
HRA Resolution No. 1435 2
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:
Section 1. The Authority hereby approves an increase in funds to the Developer in the
amount of up to $200,000 if the Developer provides the Authority’s staff with sufficient evidence of
a need for the additional funds.
Section 2. The Chair and the Executive Director are hereby authorized to execute and
deliver to the Developer an amendment to the Development Agreement incorporating to carry out
the intentions of this resolution.
Section 3. The Authority directs the Chair and Executive Director to incorporate the
following language regarding compliance with labor law into the amendment: prior to the
issuance of the Certificate of Completion, the Development must provide the Authority with
evidence satisfactory to the Authority Representative that all contractors, subcontractors, and
project laborers have been paid.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 21st day of June, 2022.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary