06-21-2022 HRA Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 21, 2022
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; Erin Vrieze Daniels, Vice Chair; and Lee Ohnesorge
Present:
HRA Members
Maria Regan Gonzalez and Gordon Hanson
Absent:
Staff Present:
Melissa Poehlman, Executive Director/Community Development Director;
Julie Urban, Assistant Community Development Director; and Kari Sinning,
City Clerk
Others Present:
Ryan Schwickert, MWF Properties
OPEN FORUM
Chair Supple provided instructions to call in for the open forum and asked if there was
anyone in attendance.
APPROVAL OF THE MINUTES
M/Vrieze Daniels, S/Ohnesorge to approve the minutes of the Regular Housing and
Redevelopment Authority Meeting of May 16, 2022.
Motion carried: 3-0
ITEM #1 APPROVAL OF THE AGENDA
M/Vrieze Daniels, S/Ohnesorge to approve the agenda.
Motion carried: 3-0
CONSIDERATION OF A RESOLUTION AWARDING UP TO $200,000 IN FUNDING
FROM THE AFFORDABLE HOUSING TRUST FUND TO MWF PROPERTIES FOR
ITEM #2
THE DEVELOPMENT OF 55 UNITS OF AFFORDABLE MULTI-FAMILY HOUSING
AT 7700 PILLSBURY AVENUE SOUTH. (STAFF REPORT NO. 22)
HRA Meeting Minutes -2- June 21, 2022
Assistant Community Development Director Urban presented Staff Report No. 22.
Chair Supple asked about the developer to clarify what supportive housing that would
available. Ryan Schwickert from MWF Properties shared that Hennepin County has a database
(Coordinated Entry System) to help people that are struggling with homelessness to find stable
housing and the local service provider, ReEntry House, works with the individuals to create
financial stability. Chair Supple followed up with a question regarding families that are struggling
with homelessness. Ryan Schwickert stated that the top priority for Hennepin County is single
individuals and the referrals that they will receive for this project would be individuals.
Chair Supple also asked about the developer’s plans for energy standards. Ryan
Schwickert stated that they have to adhere to the Green Community Standards for the tax credits
and they work with a company to find out how to reduce their energy consumption below a certain
threshold each year to reach hopefully a net zero energy consumption.
Chair Supple also asked about the safeguards to protect contracted and subcontracted
workers are paid fairly and that labor laws are followed. Ryan Schwickert shared that the
subcontractor, Eagle Building Company, has a Subcontractor Compliance Program in place to
prevent worker abuse and MWF Properties will do their best to make sure that all that work on the
project are paid fairly.
M/Supple, S/Vrieze Daniels to adopt a resolution approving an amendment to the Contract
for Private Development with MWF Properties, awarding up to $200,000 for affordability and
energy-efficiency improvements, and authorizing the Chair and Executive Director to execute the
amendment.
Chair Supple shared that she would like to make an amendment to the motion.
M/Supple, S/Vrieze Daniels to further amend the contract for private development to add
the following language: prior to the issuance of the certificate of completion the developer must
provide the Authority with evidence satisfactory to the Authority representative that all contractors,
subcontractors, and project laborers have been paid.
Commissioner Vrieze Daniels asked why this amendment would need to be added and
what evidence would be satisfactory. Chair Supple stated that it adds a way to impose compliance
and is consistent with other contracts. Director Poehlman stated that HRA Attorney Julie Eddington
suggested the wording and explained that a signed statement certifying that records have been
checked and that all workers have been paid would act as evidence. Commissioner Vrieze Daniels
expressed support of this amendment to be consistent with other developments.
Motion Carried: 3-0
The Commissioners expressed excitement for the additional affordability and the larger
bedroom sizes added.
M/Supple, S/Vrieze Daniels to adopt a resolution approving an amendment to the Contract
for Private Development with MWF Properties, awarding up to $200,000 for affordability and
energy-efficiency improvements, and authorizing the Chair and Executive Director to execute the
amendment as amended.
HRA RESOLUTION NO. 1435
RESOLUTION APPROVING AMENDMENT TO CONTRACT FOR
PRIVATE DEVELOPMENT
WITH MWF PROPERTIES, LLC
HRA Meeting Minutes -3- June 21, 2022
Motion Carried: 3-0
CONSIDERATION OF THE ADOPTION OF A RESOLUTION APPROVING A
CONTRACT FOR PRIVATE DEVELOPMENT WITH 101 E 66TH ST LLC AND
ITEM #3 AUTHORIZING THE ISSUANCE OF A TAX INCREMENT LIMITED REVENUE
NOTE RELATED TO THE CONSTRUCTION OF AN 80- UNIT MIXED USE
PROJECT AT 101 - 66TH STREET EAST. (STAFF REPORT NO. 23)
Director Poehlman presented Staff Report No. 23.
Commissioner Ohnesorge asked if there was a chosen selection on the accessible units.
Director Poehlman stated that she did not know if they have selected which type of accessible
units yet but will follow up with the Authority. Chair Supple asked a follow up question if the ADA
accessible units would be ready to be accessible or already accessible. Director Poehlman stated
that the units would already be accessible.
Commissioner Vrieze Daniels asked if the plans are the same as the previously approved
contract for development for the site. Director Poehlman stated that this is a completely new project
that has gone through the process with the Planning Commission and City Council and the
previous contract for development was never executed.
Chair Supple verified the 5-year timeline with the TIF district. Director Poehlman stated that
the timeline started in February 2022. Chair Supple also verified that the contract for development
has language to protect workers’ rights. Director Poehlman stated the language is included in the
certificate of completion section and in the events of default.
M/Vrieze Daniels, S/Ohnesorge to approve a resolution approving a Contract for Private
Development with 101 E 66th St LLC and authorizing the issuance of a Tax Increment Limited
Revenue Note.
HRA RESOLUTION NO. 1436
RESOLUTION APPROVING CONTRACT FOR PRIVATE
DEVELOPMENT WITH 101 E 66TH ST LLC AND AUTHORIZING
THE ISSUANCE OF A TAX INCREMENT LIMITED REVENUE
NOTE
Motion Carried: 3-0
HRA DISCUSSION ITEMS
ITEM #4
REVIEW AND DISCUSSION OF THE RICHFIELD REDISCOVERED
PROGRAM
Director Poehlman and Assistant Community Development Director Urban gave a brief
summary of the memo given to the Authority that detailed the program and gave recommendations
which is attached to the agenda.
Commissioner Ohnesorge asked about the amount to be given to the Affordable Housing
Trust. Assistant Community Development Director Urban stated after the audit and consultant
review is completed; an annual amount would be funded over the next four years that could be in
the millions. Director Poehlman stated staff would return to the Authority to prioritize the funding.
HRA Meeting Minutes -4- June 21, 2022
Commissioner Vrieze Daniels stated that there are parts of the program that she loves and
some that she does not. She wondered about the way to keep track of the goals that we have for
Richfield and which programs help achieve those goals. She shared concerns of purchasing
blighted properties that could be affordable housing to a potential buyer and taking available
houses of off the open market when they are sold to the HRA by the owner. She supports land
trusts, extreme energy efficiency (net zero), accessory dwelling units (ADU), and duplexes. She
stated that instead of calling the program ‘Richfield Rediscovered’ perhaps the program should be
‘Richfield Reimagined’ because it is what we want to see in the future of Richfield.
Commissioner Ohnesorge stated that out of the 151 homes in the program that accessibility
was not addressed and that the program should move to include more accessible housing. Chair
Supple followed up that accessibility should be part of the criteria for an ADU or a duplex and
Commissioner Ohnesorge agreed. Assistant Community Development Director Urban offered the
idea of Universal Design that would make a guideline to push for more readily accessible homes
through the program.
Chair Supple mentioned the use of geothermal heating instead of the use of fossil fuels for
these homes. Assistant Community Development Director Urban stated that there are some
requirements for energy efficiency that have been recently revised which are standards for similar
programs. Chair Supple thanked staff for the depiction of the costs and subsidies for the programs
and asked about the uses of the Affordable Housing Trust Fund. Assistant Community
Development Director Urban stated that the fund is restricted to capital costs and apartment
remodeling could be done however income compliance would need to be done; she also stated
that not a lot of applications are submitted for this fund. Chair Supple also clarified that the money
for the Richfield Rediscovered Program would be returned back to the County if not used by the
time the TIF districts end. Assistant Community Development Director Urban stated that we would
love to keep the money invested in the community but if there are no opportunities some of the
money would be returned to the County.
Commissioner Vrieze Daniels shared thoughts on instead of restricting the applicants that it
could be reworded to state the preferences for the projects and the ones with the most aligned
preferences would be awarded funds. Director Poehlman stated the importance of clear guidelines
due to initial investment from homeowners.
The Commissioners expressed support for recommendation number three. Commissioner
Vrieze Daniels stated opposition of recommendation number two. Director Poehlman asked a
clarifying question regarding a homeowner selling their house to the HRA. Commissioner Vrieze
Daniels shared thoughts on holding properties that would be just waiting for redevelopment instead
of being sold on the open market. Chair Supple shared that we should not be actively seeking
properties.
Director Poehlman read comments from Commissioner Regan Gonzalez that stated the
importance of reviewing our programs that we provide and supported the staff recommendation to
strategically focus the program while continuing to focus on affordability.
Commissioner Vrieze Daniels asked where the funds would go if we were to discontinue
the program. Director Poehlman stated the funds would have to be used to correct blighted
properties like World of Fish or 6501 Penn Ave and also stated that it has been a challenge to find
good uses for the funds.
Assistant Community Development Director Urban gave a summary of the discussion:
The Authority favored staff recommendation number three to use these funds to
promote other goals of the HRA including accessibility, ADUs, and energy efficiency.
HRA Meeting Minutes -5- June 21, 2022
The Authority was less interested in staff recommendation number two regarding the
acquisition of blighted properties to the HRA.
Staff will return with proposed changes all three programs (lot sale, credit, and new
home) guidelines for HRA approval that would highlight the priorities of the programs.
Chair Supple, as also a member of the 494 Corridor Commission, mentioned that there are
partnerships between other cities’ HRAs and the 494 Corridor Commission and wondered if
Richfield has been approached. Director Poehlman stated that we have not been approached but
would be open to a partnership.
ITEM #5 EXECUTIVE DIRECTOR REPORT
Director Poehlman updated the Authority on the 6501 Penn Ave demolition, an agreement
th
with Better Futures to deconstruct 6326 14 Ave, and promoted the housing specialist position.
ITEM #6 CLAIMS
M/Vrieze Daniels, S/Ohnesorge that the following claims be approved:
U.S. BANK 6/20/2022
Section 8 Checks: 133879 – 133961 $188,423.68
HRA Checks: 34200 – 34214 $105,047.56
TOTAL $293,471.24
Motion carried: 3-0
Item #7 ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:15 p.m.
Date Approved: August 15, 2022
Mary B. Supple
HRA Chair
Kari Sinning Melissa Poehlman
City Clerk Executive Director