August HRA AgendaREGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
AUGUST 15, 2022
7:00 PM
Call to Order
Open Forum
Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments
are to be an opportunity to address the HRA. Please refer to the HRA agenda and minutes web page for
additional ways to submit comments. You may also call 612-861-9764 or email ldubois@richfieldmn.gov with
questions. Call into the open forum by dialing 1-415-655-0001 Use webinar access code: 2461 947 9457 and
password: 1234.
Approval of the Minutes
Approval of the minutes of the: 1) Joint City Council, Housing and Redevelopment Authority, and Planning Commission
Work Session of May 10, 2022; 2) the Regular Housing and Redevelopment Authority Meeting of June 21, 2022; and 3)
the Special Housing and Redevelopment Authority Meeting of July 12, 2022.
AGENDA APPROVAL
1.Approval of the Agenda
2.Consent Calendar contains several separate items which are acted upon by the HRA in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further HRA action on these items is necessary. However, any HRA
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for HRA discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A.Consideration of a resolution authorizing the use of Hennepin County Affordable Housing Initiative Funds in
Richfield by the West Hennepin Affordable Housing Land Trust.
Staff Report No. 25
3.Consideration of items, if any, removed from Consent Calendar
RESOLUTIONS
4.Consider a resolution to acquire redevelopment property at 1710 - 78th Street East from the City of Richfield.
Staff Report No. 26
5.Consider resolutions approving proposed 2023 Proposed Housing and Redevelopment Authority Budget and
Tax Levy and 2022 Revised Housing and Redevelopment Authority Budget.
Staff Report No. 27
HRA DISCUSSION ITEMS
6.HRA Discussion Items
EXECUTIVE DIRECTOR REPORT
7.Executive Director's Report
CLAIMS
8.Claims
9.Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at
least 96 hours in advance to the City Clerk at 612-861-9739.
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Joint City Council, Planning
Commission, and HRA Work
Session
May 10, 2022
CALL TO ORDER
The work session was called to order by Mayor Pro Tempore Supple at 5:45 p.m. in the
Bartholomew Room.
Council Members
Present:
Mary Supple, Mayor Pro Tempore; Simon Trautmann (5:47 p.m.); Sean
Hayford Oleary; and Ben Whalen
Council Members
Absent:
Maria Regan Gonzalez, Mayor
Planning
Commission
Members Present:
James Rudolph, Chair; Brett Stursa; Brendan Kennealy; and Ben Surma
Planning
Commission
Members Absent:
Kathryn Quam and Eddie Holmvig-Johnson
HRA Members
Present:
Mary Supple, Chair; Lee Ohnesorge; and Gordon Hanson
HRA Members
Absent:
Maria Regan Gonzalez; Erin Vrieze Daniels
Staff Present: Katie Rodriguez, City Manager; Melissa Poehlman, Community Development
Director; Chris Swanson, Management Analyst; and Kari Sinning, City Clerk
Others Present: Lance Bernard and Bryan Harjes, Representatives of HKGi and Tim Pabst,
Representative of Olin 1 LLC
ITEM #1 EXPLORE REDEVELOPMENT GOALS AND DESIGN GUIDELINES FOR PUBLIC
AND PRIVATE PROPERTY AT 1600, 1620, AND 1710 - 78TH STREET EAST
Mayor Pro Tempore Supple explained that Mayor Regan Gonzalez is out of town and
introduced the topic and Community Development Director Poehlman. Director Poehlman gave a brief
overview of the staff report and introduced Lance Bernard and Bryan Harjes from HKGi.
Joint City Council, Planning Commission, and HRA
Work Session Minutes -2-May 10, 2022
Lance Bernard presented an overview of the site, the ideas that are being explored, the
potential site opportunities and challenges, and some prospective examples such as hotels,
entertainment developments, and medical/office spaces.
Council Member Hayford Oleary asked about the ownership of the frontage road right-of-way
that is dead ended. Lance Bernard stated that he was unsure but it would be great to utilize that
space if it was moved further towards the tunnel. Director Poehlman guessed that it is owned by
MnDOT but would follow up. Council Member Hayford Oleary also asked if they have been in contact
or thought about the needs of the Jaguar dealership. Bryan Harjes shared that it was a topic of
discussion which could help the dealership and the property in question. Council Member Hayford
Oleary also asked where the retaining walls start to lower towards the tunnel and Director Poehlman
showed the locations on the map. Council Member Hayford Oleary stated that this will hopefully be a
gateway to Richfield and it would be great to incorporate those into the area much like Lake Street
and Hiawatha Ave.
Council Member Whalen asked about the zoning and use of the site to the northeast that is
vacant. Director Poehlman stated that the site is not available for redevelopment and City Manager
Rodriguez stated that it must be used for a public use.
Mayor Pro Tempore asked about pedestrian access. Lance Bernard stated that dependent
upon the chosen use of the site but they still want to make sure that this is a walkable environment.
Director Poehlman explained that there will be pedestrian walkways from Richfield Parkway.
Council Member Trautmann thanked them for the explanation of the site to the northeast and
expressed urges to utilize the northeast site to complement the redevelopment. Lance Bernard
appreciated the comment as it helps them and potential developers to understand the goals and
aspirations of the area.
Lance Bernard shared example ideas and asked the attendees for input that would be in line
with their goals of the area. Example ideas included entertainment spaces (bowling, pickleball courts,
mini golf, iFly), restaurants with rooftop access to watch the planes, hotels with banquet halls, and
medical office uses.
Commissioner Hanson asked about the capacity for a hybrid model (hotel and entertainment).
Lance Bernard stated that it might be difficult to incorporate that model into the 3.7 acre site; however,
a smaller entertainment like Pinstripes or iFly might work with a hotel. Lance Bernard stated that the
specific design is dependent upon the developer and the goal of the work session is to gauge the
goals of area.
Commissioner Kennealy was drawn more towards indoor entertainment uses that could be
used year round. Lance stated that they were also drawn more towards entertainment uses as it has a
regional draw and local asset.
Planning Commission Chair Rudolph expressed interest in entertainment purposes that would
be able to be used all year round and promoted a Pinstripes-like atmosphere that could even include
curling. Lance Bernard asked the collective group regarding the year round use and Bryan Harjes
stated that indoor uses might be more appealing due to travelers from the airport during spring break
or the holidays.
Council Member Whalen stated that this site should be a destination to travelers but most
importantly be accessible and affordable to the neighborhood. He stated support for indoor
entertainment due to the noise of the airport. He strongly encouraged incorporation of neighboring
community use; perhaps a new home for Benefactor Brewing of which Director Poehlman has already
been in contact with Benefactor about the site.
Joint City Council, Planning Commission, and HRA
Work Session Minutes -3-May 10, 2022
Council Member Hayford Oleary shared that this site might be a little out of the way for active
social activities as it is kind of boxed in with the dealerships and the residential area but he would be
okay with it if the visibility to the freeway brings value to the area.
Council Member Trautmann shared concerns to placing an entertainment site that could be
vacant for years with the downturn of the economy and promoted the thought of having a medical
office due to the proximity to the airport as a surgical destination. He also promoted the idea of a mid-
sized athletic facility that could double as meeting spaces.
Commissioner Stursa expressed consideration of the local neighborhood specifically activities
for older kids.
Bryan Harjes asked about the identity of the neighborhood and how Washington Park to the
north, the vacant lot to the northeast and this development could collaborate. Director Poehlman
shared that the recreation department would like more parking due to the well-attended events at the
pickleball courts and soccer fields. Council Member Whalen added that indoor pickleball would be a
hit because people are already used to going to the area for that and also strongly urged against a
strip mall on this site.
Mayor Pro Tempore Supple shared her aversion to a hotel that could create minimum wage
jobs and would like to see opportunities to provide jobs that pay more than minimum wage such as a
medical office. She echoed the comment of Commissioner Stursa to provide activities for teens and
would support a mixed use. She also shared an idea of a global farmer’s market since the area is a
food desert.
Commissioner Kennealy shared a brainstorming idea of a concert venue.
Commissioner Ohneosorge stressed the importance of green spaces and shared an idea of a
long-term care facility.
Council Member Whalen liked Mayor Pro Tempore Supple’s idea of a global market and
wondered about indoor playgrounds. Bryan Harjes mentioned something like the Brookview Backyard
Indoor Playground in Golden Valley that also has meeting spaces.
Council Member Trautmann also agreed with a cultural or global market that could be a
regional draw.
Commissioner Surma mentioned that with the underpass, transit opportunities would be more
accessible.
The presenters summarized the prior discussion stating that this site should be integrated into
the neighborhood and provide some sort of entertainment value to the community. Bryan Harjes
asked for thoughts on how to balance intensity of use and density due to the major interstates and the
visibility and the neighborhood aspect.
Council Member Hayford Oleary shared thoughts that the site should have a minimum height
that is as close to the maximum height possible for more visibility from the interstate and as little
surface parking as possible.
Commissioner Hanson echoed the comment of Council Member Hayford Oleary that the site
should be used for high intensive use.
Council Member Trautmann asked if parking could be a use of the non-developed parcel to
the northeast. City Manager Rodriguez said that it would be.
Joint City Council, Planning Commission, and HRA
Work Session Minutes -4-May 10, 2022
Commissioner Kennealy asked for clarification of access from the interstate. Director
Poehlman stated that if someone was on I-494, they would need to exit at 24th Ave or Portland Ave
and reiterated that this should be a destination that would attract people to want to go there
purposefully.
Council Member Whalen echoed the comment of high intensive use and possibly stepping it
down as it gets closer to the park.
Chair Rudolph asked if the limited access to the site could restrict the type developments.
Bryan Harjes stated that with the underpass and the connection to the Mall of America there shouldn’t
be a problem with that and the site will continue to be a high visibility area; the main difficulty will be
how to balance the connection to the neighborhood.
Director Poehlman asked Tim Pabst if there was anything he wanted to add. Tim Pabst stated
that they would like to continue to be involved with the project if they are able. Director Poehlman
stated that there will be a memorial honor to the Mathwig family that donated the site.
Director Poehlman summarized the work session and the next steps. HGKi gathered feedback
from the work session and will meet with the City again for more concrete ideas. She stated that if
developers that wonder about the property that the general community would want to see something
that provides benefits to the community, provides higher paying jobs, and provides visibility that draws
people into Richfield.
Mayor Pro Tempore Supple thanked Tim Pabst for the donation and HGKi for coming to share
their ideas.
ADJOURNMENT
The work session was adjourned by unanimous consent at 6:49 p.m.
Date Approved: August 15, 2022
Mary B. Supple
HRA Chair
Kari Sinning Melissa Poehlman
City Clerk Executive Director
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
Present:
Mary Supple, Chair; Erin Vrieze Daniels, Vice Chair; and Lee Ohnesorge
HRA Members
Absent:
Maria Regan Gonzalez and Gordon Hanson
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
ITEM #2
CONSIDERATION OF A RESOLUTION AWARDING UP TO $200,000 IN FUNDING
FROM THE AFFORDABLE HOUSING TRUST FUND TO MWF PROPERTIES FOR
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
ITEM #3
CONSIDERATION OF THE ADOPTION OF 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 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
ITEM #4
HRA DISCUSSION ITEMS
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
with Better Futures to deconstruct 6326 14th 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
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special HRA Meeting
July 12, 2022
CALL TO ORDER
The meeting was called to order by Chair Supple at 6:15 p.m. in the Council Chambers.
HRA Members
Present:
Mary Supple, Chair; Erin Vrieze Daniels, Vice Chair; Maria Regan
Gonzalez; Lee Ohnesorge; and Gordon Hanson
HRA Members
Absent:
None
Staff Present: Melissa Poehlman, Executive Director/Community Development Director;
Julie Urban, Assistant Community Development Director; and Kari Sinning,
City Clerk
Others Present: Ben Lentz, MICC; Doug Jandro, Bumpy Lane
ITEM #1 APPROVAL OF THE AGENDA
M/Vrieze Daniels, S/Regan Gonzalez to approve the agenda.
Motion carried: 5-0
ITEM #2
CONSIDERATION OF A RESOLUTION SUPPORTING A TAX CREDIT
APPLICATION FOR A PROPOSED MIXED-USE DEVELOPMENT BY MINNESOTA
INDEPENDENCE COLLEGE AND COMMUNITY, LOCATED AT 2000, 2006 AND
2018 - 76TH STREET WEST AND 7532 MORGAN AVENUE SOUTH. (STAFF
REPORT NO. 24)
Assistant Community Development Director Urban presented Staff Report No. 24.
M/Vrieze Daniels, S/Hanson to approve a resolution supporting a tax credit application for a
proposed mixed-use development by Minnesota Independence College and Community, located at
2000, 2006 and 2018 - 76th Street West and 7532 Morgan Avenue South.
HRA RESOLUTION NO. 1437
RESOLUTION SUPPORTING A TAX CREDIT APPLICATION FOR
A MULTIFAMILY HOUSING PROJECT
Chair Supple thanked MICC for their great community work.
Special HRA Meeting Minutes -2-July 12, 2022
Commissioner Ohnesorge congratulated the developer for going above and beyond the
inclusionary housing policy.
Doug Jandro thanked the HRA for the support on this project and gave a brief description of
his background.
Commissioner Regan Gonzalez thanked MICC for being present, expressed excitement for
the growth of MICC and for the continued partnership between the City and MICC.
Motion Carried: 5-0
ITEM #3 ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:20 p.m.
Date Approved: August 15, 2022
Mary B. Supple
HRA Chair
Kari Sinning Melissa Poehlman
City Clerk Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
STAFF REPORT NO. 25
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
8/15/2022
REPORT PREPARED BY: Celeste McDermott, Housing Specialist
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
8/9/2022
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution authorizing the use of Hennepin County Affordable Housing Initiative
Funds in Richfield by the West Hennepin Affordable Housing Land Trust.
EXECUTIVE SUMMARY:
The Housing and Redevelopment Authority (HRA) works with the West Hennepin Affordable Land Housing
Trust (WHAHLT), dba Homes Within Reach, to purchase and rehabilitate homes to be sold to income-
qualifying households through the HRA's New Home Program. WHALHT is a Community Land Trust that
allows moderate-income buyers to achieve affordable homeownership by holding ownership of the land, and
reducing the burden of down payment and large mortgage payments on the homeowner. The model ensures
ongoing affordability throughout the lifetime of the property and with multiple owners.
WHAHLT received an award of $175,000 from Hennepin County’s Affordable Housing Initiative Fund (AHIF)
to provide affordable housing in scattered sites across suburban Hennepin County. WHAHLT is planning to
utilize an estimated $22,000 of the allotted funding on properties in Richfield, including 7209 Knox Avenue
South where rehabilitation work is already underway.
Hennepin County requires that a City or the HRA provide a resolution authorizing the use of AHIF within its
community.
RECOMMENDED ACTION:
By motion: Adopt the resolution authorizing use of Affordable Housing Initiative Funds in Richfield by
the West Hennepin Affordable Housing Land Trust.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
Since 2002, WHAHLT has successfully purchased, rehabilitated and sold 14 homes in Richfield
to households earning no more than 80 percent of the Area Median Income.
Funding for the work of the New Home Program has varied by year, with most recent projects
funded with local Community Development Block Grant (CDBG) funds as well as pooled Tax
Increment Financing (TIF) and the Affordable Housing Trust Fund.
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
The objectives of the New Home Program are to:
Eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods;
Maintain and improve the existing housing stock while preserving housing affordability;
Develop quality housing with long-term affordability, to the greatest extent possible;
Coordinate with developers to provide affordable housing for families.
Purchasing and rehabilitating homes to provide affordable housing carries out the policies of the
City’s Comprehensive Plan, including: Support the rehabilitation and upgrading of the existing
housing stock; promote the development, management and maintenance of affordable housing in
the City through assistance programs, alternative funding sources, and the creation of
partnerships whose mission is to promote low to moderate income housing.
C.CRITICAL TIMING ISSUES:
WHALHT is currently working on the rehabilitation of one property in Richfield and is looking for
an additional property.
WHAHLT cannot utilize AHIF funds in Richfield until a resolution is approved by the HRA.
D.FINANCIAL IMPACT:
WHAHLT is requesting the authorization to use AHIF funds towards the acquisition and
rehabilitation of properties in Richfield.
The use of AHIF in Richfield does not require financial participation from the HRA; however, in
October 2021 the HRA approved a Developers Agreement with WHAHLT for the development of
up to 5 homes through December 2022 using up to $200,000 in pooled TIF funding.
E.LEGAL CONSIDERATION:
The resolution is required by Hennepin County before AHIF funds can be used.
ALTERNATIVE RECOMMENDATION(S):
Do not adopt the resolution authorizing the use of AHIF funds in Richfield.
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ATTACHMENTS:
Description Type
Resolution Resolution Letter
HRA RESOLUTION NO. ________________
RESOLUTION APPROVING THE PARTICIPATION OF THE HENNEPIN COUNTY
HOUSING AND REDEVELOPMENT AUTHORITY IN AN AFFORDABLE HOUSING
PROJECT
WHEREAS, the Hennepin County Housing and Redevelopment Authority
(HCHRA) has approved the use of a $175,000 Affordable Housing Incentive Fund
(AHIF) loan for West Hennepin Affordable Housing Land Trust (WHAHLT), dba Homes
Within Reach contingent upon the City of Richfield Housing and Redevelopment
Authority’s (HRA) consent to the HCHRA’s participation in the project.
WHEREAS, The purchase of up to ten homes to be acquired for the WHAHLT
program, of which one or more properties may be located within the city of Richfield and
the rest within suburban Hennepin County, will preserve the supply of affordable
housing in the city by providing long-term affordability.
WHEREAS, AHIF from the HCHRA will complete the financing required for the
project to go forward.
NOW THEREFORE, BE IT RESOLVED that the participation of the HCHRA in
the project for the limited purpose of providing financial support to the project is hereby
approved.
BE IT FURTHER RESOLVED that nothing in this resolution shall create a
pecuniary obligation of the HRA to assist the project, nor shall the HRA be in any way
responsible for any financing obligation or agreement of the HCHRA with respect to its
provision of financial assistance to the project.
BE IT FURTHER RESOLVED that nothing in this resolution is intended to
endorse the merits of the projects to be undertaken.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield this 15th day of August, 2022.
_________________________________
Mary B. Supple, Chair
ATTEST:
_______________________
Maria Regan Gonzalez, Secretary
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #4.
STAFF REPORT NO. 26
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
8/15/2022
REPORT PREPARED BY: Melissa Poehlman, Executive Director
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
8/9/2022
ITEM FOR COUNCIL CONSIDERATION:
Consider a resolution to acquire redevelopment property at 1710 - 78th Street East from the City of
Richfield.
EXECUTIVE SUMMARY:
The property at 1710 - 78th Street East was purchased by the City of Richfield in 2000 to facilitate
construction of the 77th Street underpass. It was unclear at the time exactly how much of the parcel would be
needed in that construction. Now that it has been determined, staff is recommending that the remnant parcel
be conveyed to the Housing and Redevelopment Authority (HRA) to facilitate redevelopment of the property
along with 1600 and 1620 - 78th Street East.
One of the primary purposes of a City's HRA is to purchase and sell properties for redevelopment purposes.
State Statutes have established a more streamlined process for HRA's to act in this capacity (versus cities).
On July 12, 2022 the City Council approved the conveyance of the property to the HRA for $1.00; the HRA
must now authorize the acquisition.
RECOMMENDED ACTION:
By motion: Approve a resolution authorizing the acquisition of certain property within the City of
Richfield.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
In 2000, 1710 - 78th Street was acquired by the City to facilitate construction of the 77th Street
tunnel.
The remnant land, not needed for the underpass, is now available for redevelopment.
In December 2021, the HRA accepted the generous donation of property at 1600 - 78th Street
East.
In May, the Council, HRA, and Planning Commission participated in a facilitated discussion of the
possible redevelopment of properties at 1600, 1620, and 1710 - 78th Street East.
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
State Statutes prescribe a process allowing a City's HRA to purchase and sell properties for
redevelopment purposes.
Since 2015, it has been standard practice for the City to convey property to the HRA for
redevelopment.
C.CRITICAL TIMING ISSUES:
Attached to this report is a marketing brochure that will be used to convey the general desires of
the City to potential developers.
This brochure has been shared and reviewed by the owner of 1620 - 78th Street East.
In order to effectively manage the redevelopment, all parcels over which the City has control
should be managed by a single entity. As described above, the HRA is the preferred entity.
D.FINANCIAL IMPACT:
If approved, the property will be conveyed for a fee of $1.00. The fee is a contractual
requirement.
E.LEGAL CONSIDERATION:
HRA legal counsel has advised this action.
ALTERNATIVE RECOMMENDATION(S):
None
PRINCIPAL PARTIES EXPECTED AT MEETING:
None
ATTACHMENTS:
Description Type
Resolution Resolution Letter
Marketing Flyer - 77th Street Tunnel Site Exhibit
HRA RESOLUTION NO. __________
RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY WITHIN
THE CITY OF RICHFIELD
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (“the HRA”) desires to obtain certain real property as described in the
attached Exhibit A (“the Property”) currently owned by the City of Richfield, pursuant to and
in furtherance of its redevelopment efforts;
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation;
WHEREAS, the HRA has determined that acquisition of said property is in
furtherance of its redevelopment purposes; and
NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1.The conveyance of the Property by the City to the HRA is hereby approved.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota on this 15th day of August, 2022.
_____________________
Mary B. Supple, Chair
ATTEST:
___________________________
Maria Regan Gonzalez, Secretary
EXHIBIT A
City of Richfield property to be conveyed to Richfield HRA
That part of the North 180.26 feet of the South Half of the Southeast Quarter of the Southeast
Quarter of Section 35, Township 28, Range 24, lying East of the West 722 feet thereof;
Except that portion thereof contained in the following described tract: Beginning at a point in the
East line of said Section 35, distant 383 feet North of the Southeast corner of said Section 35;
thence West parallel with the South line of said Section 35 distant 158 feet; thence North parallel
with the East line of said Section 35 distant 150 feet; thence East parallel with the South line of
said Section 35 distant 158 feet; thence South along the East line of said Section 35 distant 150
feet to the point of beginning.
Torrens Certificate No. 1058854
I-494 HWY 77I-494 Mixed Use
Redevelopment Opportunity
JULY 2022
1600, 1620, & 1710E 78TH STREETRICHFIELD, MN 55423
94 94
94
Minneapolis
Roseville
Downtown
Minneapolis
Mall of America
DowntownSt. Paul
Richeld
Bloomington
Burnsville
Eagan Inver Grove
Heights
Minneapolis/St. Paul
International
Airport
Edina
Hopkins
St. Louis
Park
Golden
Valley
Robbinsdale
Crystal
St. Paul
Falcon Heights
St.
Anthony
WestSt. Paul
Mendota
Heights
South
St. Paul
494 494
494
394
35E
35E
35E
35W
35W
77
77
62
5
5
62
55
55
55
10
10
52
52
SITE
32I-494 Mixed Use Redevelopment Opportunity
The City of Richfield is looking for interested developers to create a unique destination for the northwest corner of I-494 and Highway 77 (Cedar Avenue). The preferred developer will work collaboratively with the
City of Richfield, Housing & Redevelopment Authority (HRA), and a private property owner to accomplish an
implementable development plan that achieves the following goals:
SITE HISTORY
The property at 1710 - 77th Street East was purchased by the City in 2000 for
the construction of the 77th Street
underpass. In December 2021, the
Housing & Redevelopment Authority
(HRA) accepted the generous donation of the property at 1600 - 78th Street East
by the Jerry Mathwig Trust. The Mathwig
Trust continues to own the property
between these two lots, 1620 - 78th Street
East, and has indicated a desire to work collaboratively with the City and HRA to
holistically redevelop the area.
SITE DESCRIPTIONThe parcels include 1600, 1620, and 1710 - 78th Street East. Combined, these parcels create one of the
last remaining redevelopment sites (3.7 acres) along the I-494 corridor guided for mixed-use. The site is in close proximity to the Minneapolis-Saint Paul International Airport and Mall of America, and is highly visible
from the interstate system. These attributes contribute to the site’s potential for becoming a regional
destination.
PREFERRED LAND USE TYPES
The parcels are guided by the City’s Comprehensive Plan for “Regional Commercial,” which supports
retail, entertainment, lodging facilities, meeting
facilities, and limited office. The Regional
Commercial designation supports high density
development patterns and greater building heights that do not conflict with airport zoning regulations
(maximum building height is 80 feet). The parcels
are zoned for “MU-R Mixed Use-Regional,” which
also supports a mix of commercial and retail uses.
Create a walkable & bikeable environment.
Establish a brand that is distinctiveto Richfield.
Incorporate public spaces that are
welcoming.
Recognize private contributions &
partnerships.
Create a unique & interesting destination.
Ensure the utilization of the land provides a regional & local benefit.
Ensure development is compatiblewith adjacent uses & the surrounding
neighborhood.
PREFERRED LAND USE
TYPES FOR THE SITE MAY
INCLUDE:
»Hotels + Public Meeting Space
»Food and Dining
»Breweries and Distilleries
»Game and Entertainment Centers
»Food Halls or Markets
»Event Space
»Athletic Facilities
»Business Incubators or Makers Space
»Vertical Farms
»Educational Institutions
»Medical Uses
SITE & SURROUNDING CONTEXT
SITE REGIONAL CONTEXT MAP
LEGEND
Site Boundary (3.7 acres)
Existing Bike Route
Existing Bus Route
Vehicular Circulation
Freeway
Existing Sidewalk/Trail
MSP AIRPORT
ADT: 149,000
ADT: 52,000MALL OF
AMERICA
SITE
VEHICULAR ACCESS CLOSURE (2023)
INTERCHANGEINTERCHANGE
INTERCHANGE
HWY 77 UNDERPASS(UNDER CONSTRUCTION)
Richfield’s Next Destination
54I-494 Mixed Use Redevelopment Opportunity
LEGEND
Site Boundary (3.7 acres)
Existing Bike Route
Existing Bus Route
Existing Bus Stop
Future Bus Route Extension
Existing 77th St. Noise Wall
Existing Sidewalk/Trail
Future Sidewalk/Trail
Existing + Future Pedestrian Crossing
Future Pedestrian Underpass
Development should provide a local benefit to the surrounding neighborhoods.
The site offers unique views of airplanes taking-off and landing at the Minneapolis-Saint Paul Airport.The 77th underpass project will include retaining walls and a slight grade change. The grade change may offer the site a unique opportunity to include
structured parking below grade.
There are potential opportunities to reconfigure the frontage road/cul-de-sac to expand the site’s development capacity.The site includes an existing billboard easement. Vacating the easement will require
further discussion and negotiations with the owner.
Washington Park is a local
and regional destination for its soccer fields and pickleball courts.
This location may be considered as an opportunity for future Washington Park needs.
An existing noise wall is located on the north side of 77th Street. The City’s hope to find design solutions that eliminate the need for portions of the noise wall to better connect the neighborhood with the site.
The site is currently served by three access points from 77th Street and three access points from 78th Street. It is assumed some of these access points will be consolidated or modified as part of a new development
The 77th Street underpass will connect 77th Street east and west of Highway 77 (Cedar Avenue) to eliminate a gap in the
minor reliever network. The project will connect Bloomington and Longfellow Avenues and address regional traffic issues on the I-494 corridor through Richfield and Bloomington. The project
will also enhance pedestrian and bicycle connections, and expand transit routes. The underpass is scheduled to open in the fall of 2022
77th Street is a multimodal corridor. Development will need to help
activate the street frontage and provide connections for pedestrians, bicyclists, and wheelchairs/walkers.
WASHINGTON PARK
CITY OF BLOOMINGTON
CITY OF RICHFIELD
E 77TH STREET
BLOOMINGTON AVE SFUTURE THRU STREETE 78TH STREET
LAND ROVER RICHFIELD
77
494
1
8 10
11
12
2
34
5
6
6
7
The City’s expectations for the site are expressed in a series of Design Principles listed on page 7. It is also important to note that building heights cannot exceed 80 feet.
9
Site Opportunities
& Constraints
76I-494 Mixed Use Redevelopment Opportunity
The City of Richfield and its partners have established a list of development principles for guiding and evaluating future development proposals. The principles embody the groups
general desires and intentions for the reuse of the site.
• Gateway: Create a “gateway” into the community that is visible from I-494 and CedarAvenue.
• Public Space: Provide and maintain a publicly accessible space, which may include a
plaza, courtyard, or community room.
• Site Intensity: Maximize the site’s capacity to achieve greater lot coverage and
densities, while providing ample space for landscaping treatments and public spaces.
• Building Transition: Require site design and building architectural characteristics that
provide appropriate transition between residential neighborhoods and Washington
Park.
• Building Height: Maximum height of 8 stories. Building heights cannot exceed 80ft
(airport zone).
• Building Frontage: Locate commercial and retail space on the ground floor and
provide direct access from street frontages and open spaces.
• Building Orientation: Require site design and building orientation to avoid linear
patterns (e.g., strip commercial development) that can negatively impact the
community’s identity.
• Connectivity: Increase the site’s connectivity to Washington Park and neighborhoods
by incorporating pedestrian, wheelchair/walker, and bicycle connections.
• Views: Explore rooftop views that offer a unique experience for patrons to view
airplanes taking-off and landing at the Minneapolis-Saint Paul Airport.
• Sustainable Development: Use sustainable design practices and new technology indevelopments that will help create a healthy, sustainable, vibrant neighborhood, and
contribute to the park environment.
• Job Creation: Provide jobs that offer livable wage for its employees.
• Structured Parking: Integrate structured parking in subtle and non-intrusive ways
that complements the site’s aesthetics and character
• Quantity of Parking: Minimize parking needs by leveraging the site’s location
along multimodal corridors to reduce the use of the automobile, while limiting
neighborhood impacts.
1
1 1
7
8
8
9
10
11
2
12
12
13
9
10
2
2
3
3
4
4
5
5
6
6
Nei g h b o r h o o d-Character ArchitectureArtistic Gateway Feature + P r o m e nadeaA
rtistic Gateway Feat u r e
I
nt
e
r
n
al P
ublic Plaza
Retail Street-Fronta g eBal
a
n
ced Site Intensity
A
ctivated Public Sp a c e
Rooftop Plane-Wat c h in g
H
i
d
den Parking8-St
o
ry Maxium
Pedestrian C o n nectivitySu
stainable Design
Development Principles
Development inquires should be
directed to:
Melissa Poehlman
Community Development Director
City of Richfield
Phone: 612.861.9777
Email: MPoehlman@richfieldmn.gov
Contact Information
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #5.
STAFF REPORT NO. 27
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
8/15/2022
REPORT PREPARED BY: Kumud Verma, Finance Manager
OTHER DEPARTMENT REVIEW: N/A
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
8/10/2022
ITEM FOR COUNCIL CONSIDERATION:
Consider resolutions approving proposed 2023 Proposed Housing and Redevelopment Authority
Budget and Tax Levy and 2022 Revised Housing and Redevelopment Authority Budget.
EXECUTIVE SUMMARY:
The bylaws of the Richfield Housing and Redevelopment Authority (HRA) require that an annual budget be
submitted to the HRA Commissioners for approval. Accordingly, the 2023 Proposed Budget and Tax Levy and
2022 Revised Budget are presented for approval.
In addition, Minnesota State Statutes require adoption of a preliminary tax levy from each taxing authority.
The proposed tax levy must be certified to the Hennepin County Auditor by September 30, 2022. Any
amendments to the proposed budget, which would increase the property tax levy, must be made prior to
September 30, 2022. No increases in the tax levy are permissible after that date, only reductions. Final
certification of the HRA tax levy is part of the City’s budget process.
The recommended tax levy as proposed represents a 4% increase from the previous year’s levy.
RECOMMENDED ACTION:
By motion: Adopt the attached resolutions approving the 2023 Proposed Housing and Redevelopment
Authority Budget and Tax Levy and 2022 Revised Housing and Redevelopment Authority Budget.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
N/A
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
Minnesota Statutes require adoption of a preliminary levy from each taxing authority.
The budget and accompanying proposed levy for 2023 are ready for consideration.
Even though a public hearing for the HRA tax levy is not required by State Statute, this does not
preclude the HRA from opening this item up for public discussion if the HRA desires to do so.
C.CRITICAL TIMING ISSUES:
As required by State Statutes, each taxing authority must certify its proposed tax levy for the
payable year 2023 to the County Auditor on or before September 30, 2022.
D.FINANCIAL IMPACT:
The Proposed 2023 HRA levy represents a 4% increase from the previous year’s levy. This
equates to an $26,000 increase.
The levy is approximately $112,956 less than the maximum HRA levy established by law of the
.0185% of the City’s total estimated taxable market value.
E.LEGAL CONSIDERATION:
N/A
ALTERNATIVE RECOMMENDATION(S):
The HRA could adopt a preliminary levy less than the one proposed herein. However, that would not
provide for programs that are recommended in the 2023 Proposed/2022 Revised budget.
The HRA could also consider adoption of a greater levy (up to $788,916), but that would exceed the
expressed needs of staff and may result in a burdensome property tax bill for residents.
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ATTACHMENTS:
Description Type
2023 HRA Proposed Budget and Tax Levy Resolution Resolution Letter
2022 Revised HRA Budget Resolution Letter
HRA RESOLUTION NO.
RESOLUTION APPROVING PROPOSED 2023 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2023 TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of
Richfield, Minnesota as follows:
Section 1. The budget for the Housing and Redevelopment Authority
General Fund of Richfield for the year 2023 in the amount of
$572,150 is hereby ratified.
Section 2. The estimated gross revenue of the Housing and Redevelopment
Authority General Fund of Richfield from all sources, including
general ad valorem tax levies as hereinafter set forth for the year
2022, and as the same are more fully detailed in the Executive
Director’s official copy of the budget for the year 2022, in the
amount of $679,700 is hereby approved.
Section 3. There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2022, payable in 2023 for the
following purposes:
Housing and Redevelopment Authority $675,960
Section 4. A certified copy of this resolution shall be transmitted to the County
Auditor.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 15th day of August, 2022.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF THE 2022 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No. appropriated funds for personal services and other
expenses and capital outlay for the Housing and Redevelopment Authority for the year
2020, and
WHEREAS, The Executive Director has requested a revision of the 2020 budget as
detailed in the 2021 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
Section 1. That the 2022 appropriation for the Housing and Redevelopment
Authority General Fund is revised as follows:
$75,650 decrease
Section 2. Estimated 2022 gross revenue of the Housing and Redevelopment
Authority General Fund from all sources, as the same is more fully
detailed in the Executive Director’s official copy of the 2022 budget
document, are hereby revised as follows:
$77,400 increase
Section 3. That the Executive Director bring into effect the provisions of this
resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 15th day of August, 2022.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary