041921 EDA Complete AgendaECONOMIC DEVELOPMENT AUTHORITY MEETING
VIRTUAL MEETING HELD VIA WEBEX
APRIL 19, 2021
7:15 PM (IMMEDIATELY FOLLOWING THE HRA MEETING)
Call to Order
Attendance
Open Forum: Opportunity to address the EDA on items not on the Agenda; dial phone number 612-861-0651. As you
call in, a moderator will assist you.
Approval of the Minutes
Approval of the minutes of the regular Economic Development Authority meeting of January 19, 2021.
AGENDA APPROVAL
1.Approval of the Agenda
RESOLUTIONS
2.Consider the adoption of a resolution approving revisions to the Inclusionary Affordable Housing Policy.
Staff Report No. 5
EDA DISCUSSION ITEMS
3.EDA Discussion Items
EXECUTIVE DIRECTOR REPORT
4.Executive Director's Report
CLAIMS
5.Claims
6.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 612-861-9738.
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 19, 2021
CALL TO ORDER
The meeting was called to order by President Supple at 7:45 p.m. via Webex.
EDA Members Mary Supple, President; Maria Regan Gonzalez; Sue Sandahl; Pat Elliott;
and Erin Vrieze Daniels.
EDA Members
Absent None
Staff Present: John Stark, Executive Director; Julie Urban, Housing Manager; and LaTonia
DuBois, Administrative Assistant.
CONSIDERATION OF THE ELECTION OF OFFICERS FOR THE RICHFIELD ECONOMIC
DEVELOPMENT AUTHORITY FOR 2021 (S.R. NO.1)
President Supple opened nominations.
M/Vrieze Daniels, S/Regan Gonzalez nominate Mary Supple to serve as President.
Motion carried 5-0
M/Sandahl, S/Elliott nominate Commissioner Regan Gonzalez to serve as Vice President.
Motion carried 5-0
M/Vrieze Daniels, S/Regan Gonzales nominate Commissioner Sandahl to serve as
Treasurer.
Motion carried 5-0
M/Vrieze Daniels, S/Regan Gonzalez nominate Administrative Assistant DuBois to serve as
Secretary.
Motion carried 5-0
M/Sandahl nominate Chris Regis to serve as Assistant Treasurer.
Motion carried 5-0
EDA Meeting Minutes -2- January 19, 2021
OPEN FORUM
Administrative Assistant DuBois provided instructions to call in for the open forum.
No callers.
APPROVAL OF THE MINUTES
M/Regan Gonzalez, S/Sandahl to approve the regular Economic Development Authority
meeting minutes of December 21, 2020.
Motion carried 5-0
Item #1
APPROVAL OF THE AGENDA
M/Regan Gonzalez, S/Sandahl, to approve the agenda.
Motion carried 5-0
Item #2
CONSIDERATION OF THE CONSENT CALENDAR
Executive Director Stark presented the Consent Calendar:
A. Consideration of resolutions designating official depositories for the Economic
Development Authority for 2021, including the approval of collateral. (S.R. No. 2)
RESOLUTION NO. 29
RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR
THE INVESTMENT OF ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN
20201
RESOLUTION NO. 30
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN
ASSOCIATIONS, BANKS AND CREDIT UNIONS AS DEPOSITORIES
FOR THE INVESTMENT OF ECONOMIC DEVELOPMENT
AUTHORITY OF RICHFIELD FUNDS IN 2021
RESOLUTION NO. 31
RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF
FUNDS OF THE EDA OF RICHFIELD FOR THE YEAR 2021
M/Sandahl, S/Regan Gonzalez to approve the Consent Calendar.
Motion carried 5-0
EDA Meeting Minutes -3- January 19, 2021
Item #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR
None.
Item #4
DESIGNATION OF COMMUNITY DEVELOPMENT EXECUTIVE DIRECTOR JOHN
STARK AS THE EXECUTIVE DIRECTOR OF THE RICHFIELD HOUSING AND
REDEVELOPMENT AUTHORITY FOR 2021 (S.R. NO. 3)
Executive Director Stark presented Staff Report 3 and expressed his gratitude to serve as
the Executive Director.
M/Regan Gonzalez, S/Vrieze Daniels to designate Community Development Director John
Stark as the Economic Development Authority Executive Director until the first regular meeting is
conducted by the Economic Development Authority in 2022.
Motion carried 5-0
Item #5
CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING FOR THE
CONTINUED PARTNERSHIP WITH CENTER FOR ENENRGY AND
ENVIRONMENT IN ADMINISTERING THE RICHFIELD ENEGRY EFFICIENCY
BUSINESS GRANT (S.R. NO. 4)
Executive Director Stark presented Staff Report 4, and explained the CEE would administer
the program at no cost to the EDA.
Commissioner Vrieze Daniels inquired about the majority of loans going through in the
month of December.
Executive Director Stark explained that the program was put on hold due to the pandemic
and was opened again September.
Motion to approve a Memorandum of Understanding with the Center for Energy and the
Environment to provide professional services related to the administration of the Richfield Energy
Efficient Grant.
Motion Carried 5-0
Item #6
EDA DISCUSSION ITEMS
None
Item #6
EXECUTIVE DIRECTOR REPORT
Executive Director Stark notified the EDA of the Year in Review presentation coming up in
February.
Item #7
CLAIMS AND PAYROLLS
M/Elliott, S/Sandahl that the following claims and payroll be approved:
EDA Meeting Minutes -4- January 19, 2021
U.S. BANK 1/19/2021
EDA Checks: 20577-30603 $47,039.09
TOTAL $47,309.09
Motion carried 5-0
Item #8
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:04 p.m.
Date Approved: April 19, 2021
Mary B. Supple
President
LaTonia DuBois John Stark
Administrative Assistant Executive Director
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #2.
STAFF REPORT NO. 5
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
4/19/2021
REPORT PREPARED BY: Julie Urban, Housing & Redevelopment Manager
OTHER DEPARTMENT REVIEW: N/A
EXECUTIVE DIRECTOR REVIEW: John Stark, Executive Director
4/13/2021
ITEM FOR COUNCIL CONSIDERATION:
Consider the adoption of a resolution approving revisions to the Inclusionary Affordable Housing
Policy.
EXECUTIVE SUMMARY:
In 2018, the Economic Development Authority (EDA) adopted an Inclusionary Affordable Housing Policy
(Policy) requiring that all new development receiving financial assistance from the EDA include affordable
housing. Specifically, the Policy requires all housing developers receiving public subsidy to either:
Make at least 20% of all housing units be affordable to either renters earning less than 60% of the Area
Median Income (AMI) or owners earning less than 115% of the AMI, or
Pledge 15% of the net-present-value of the subsidy they receive to the Richfield Housing and
Redevelopment Fund, and
Provide 90-day notice of sale, and
Agree to not discriminate against renters receiving rental subsidies (including the Section 8 Housing
Choice Voucher program).
Policymakers reviewed the Policy in 2019 and again in September 2020 and February 2021. Staff was
directed to prepare several revisions relating to deeper affordability, length of the affordability term, larger
units, and accessible housing.
1. Providing more deeply affordable units increases costs. To balance those increased costs, the
proposed revisions would allow for fewer units at the deeper the affordability provided:
Affordability Level % of Units
RENTAL
60% of Area Median Income (AMI)20%
50% of AMI 15%
30% of AMI 10%
OWNER-OCCUPIED
115% of AMI 20%
100% of AMI 15%
80% of AMI 10%
A mix of affordability would also be allowed.
2. The proposed revision would require that the affordable units be provided through a mix of bedroom sizes,
similar to the mix provided by the development as a whole. In recognition of the greater need for larger units
and the additional cost to provide them, flexibility in the total number of units required would be allowed if more
two and three bedroom units are provided.
3. A requirement for accessible units would be added to the Policy. Either 5% Type A units or 3% fully-
accessible units would be required, again at a mix of sizes. The affordability requirement would apply to the
Policy-required units (i.e., the 2% Type A units currently required by Building Code could be market-rate).
Roll-in showers would be required in the Type A units.
4. The Policy requires developments not providing affordable units to pay a fee "in lieu," equal to 15% of the
tax increment generated (or other public assistance provided), to the HRA's Housing and Redevelopment
Fund. An additional cash payment of $5,000 per unit to the City's Affordable Housing Trust Fund would be
required if a developer chose to opt out of providing the Type A/accessible units.
4. The Policy currently requires an affordability term equal to the length of the subsidy being provided or a
minimum of 10 years, whichever is greater. The minimum would increase to 15 years with the proposed
revision.
5. The current Policy requires non-housing developments to replace any affordable housing being
removed. The proposed revision would expand that requirement to housing developments as well.
6. Flexibility would be added for projects between 5 and 19 units. Projects of that size could be given
an exception to the requirements by the Community Development Director, in recognition of the
financial and administrative burden the Policy requirements could have on smaller developments.
The revisions also include some minor wording updates.
RECOMMENDED ACTION:
By motion: Adopt a resolution approving revisions to the Inclusionary Affordable Housing Policy.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The HRA has been informally requiring projects receiving tax increment financing to include
affordable housing or contribute to the HRA's Housing and Redevelopment Fund since 2001. The
HRA and the EDA formally adopted a written Inclusionary Affordable Housing Policy in
September of 2018. A revision related to single family housing programs was adopted in April of
2019.
Work sessions on the proposed revisions were held in September 2020 and February 2021.
Detailed information on the costs of the various requirements, as well as the positives and
negatives of each was shared at the work sessions.
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
The Policy furthers the Comprehensive Plan goal to provide a full range of housing
choices that meet residents' needs at every stage of their lives, and ensure a healthy
balance of housing types that meets the needs of a diverse population with diverse
needs.
The Comprehensive Plan identifies the need in the community for an additional 66 units of
housing affordable at 30% of the AMI. The proposed Policy change encourages the development
of these more deeply affordable units.
The Policy is consistent with the City's Housing Visioning Statement that calls for a full range and
balance of housing types and its Affordable Inclusionary Housing Policy Statement, which
encourages developments to contain a mix of market-rate and affordable units, with a higher
proportion of market-rate units.
C.CRITICAL TIMING ISSUES:
The Policy revisions would not apply to projects currently in process, although staff has been
informally encouraging larger bedroom sizes and accessible units in the projects in process.
D.FINANCIAL IMPACT:
Providing affordable housing requires a subsidy, and the deeper the affordability, the greater the
amount of the subsidy. To balance that greater cost, the proposed Policy revisions require a lesser
percentage of units the greater the affordability.
E.LEGAL CONSIDERATION:
The EDA has the authority to create an Inclusionary Affordable Housing Policy that applies to the
use of its financial resources.
ALTERNATIVE RECOMMENDATION(S):
The EDA may choose to:
approve the revisions with changes;
delay consideration to allow for additional public input;
request an additional work session on the revisions, or
not approve the revisions.
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ATTACHMENTS:
Description Type
Resolution Resolution Letter
Amended Policy Backup Material
Amended Policy REDLINED Backup Material
RESOLUTION NO. ____
A RESOLUTION APPROVING THE ADOPTION OF
AMENDMENTS TO THE INCLUSIONARY AFFORDABLE HOUSING POLICY
WHEREAS, the Richfield Economic Development Authority (EDA) adopted an
Inclusionary Housing Policy in 2018 that furthers the development of affordable housing within
in the City; and
WHEREAS, the EDA wishes to further support development of high quality housing in
the community for households of various income levels, ages and sizes in order to help the City
meet its goals of preserving and promoting economically diverse housing options in the City; and
WHEREAS, the EDA wants to ensure that both the public and private sectors continue
to create affordable housing opportunities in the City; and
WHEREAS, the EDA believes that adoption of a policy setting criteria and incentives
for developers to build new affordable units will assist the City in achieving its inclusionary
housing goals; and
WHEREAS, the EDA regularly reviews its policies and periodically makes changes to
ensure consistency with current City policies and market conditions.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Economic Development
Authority, that:
1. The Inclusionary Affordable Housing Policy as revised is hereby approved and
adopted.
2. EDA staff is authorized to carry out the policy effective immediately.
Adopted by the Richfield Economic Development Authority this 19th day of April, 2021.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
City of Richfield
Richfield Housing and Redevelopment Authority
Richfield Economic Development Authority
Inclusionary Affordable Housing Policy
The City of Richfield, Richfield Housing and Redevelopment Authority, and Richfield Economic
Development Authority are committed to building a community that is welcoming and affordable to
a diverse population of individuals and families at all stages of their lives. As such, we hereby
establish the following policy for the inclusion of affordable housing in development proposals.
Requirements
1. Housing Development Projects containing the construction of at least 5 new units that receive
Financial Assistance from the HRA, EDA or City:
a. Must contain a percentage of units that are affordable at one or more of the following
levels over a period of fifteen years or the duration of the subsidy (whichever is longer):
i.
Affordability Level % of Units
RENTAL
60% of Area Median Income (AMI) 20%
50% of AMI 10%
30% of AMI 5%
OWNER-OCCUPIED
115% of AMI 20%
100% of AMI 10%
80% of AMI 5%
ii. A combination of affordability levels may be considered (e.g., 10% at 60% AMI
and 5% at 30% AMI).
iii. A mix of bedroom sizes similar to that of the overall building must be provided. A
reduction in the overall number of affordable units may be considered if a
greater number of 2 and/or 3 bedroom units are provided.
and
b. Must contain a minimum of 5% rental units that are Type A with a roll-in shower or 3%
of rental units that are ADA-Accessible. A combination of Accessible and Type A units
may also be considered. Units beyond those required by the Building Code must meet
the affordability and mix of bedroom sizes as required in 1a.
Or
c. Must contribute to the Richfield Housing and Redevelopment Fund
i. 15% of the “net present value” of Tax Increment generated by the project (or
15% of the net present value of other types of assistance) must be pledged to
the Richfield Housing and Redevelopment Fund over a period of fifteen years or
the duration of the subsidy (whichever is longer), or
ii. A pro-rata combination of the above (i.e. 10% affordable units and a 7.5%
contribution) may be considered, and
iii. The accessibility component of 1b must still be met (the units may be market-
rate) or an additional up-front cash payment of $5,000 per required unit made
to the City’s Affordable Housing Trust Fund.
and
d. Must agree to provide 90 days’ advance notice to the public body providing funding of
any sale of the property,
and;
e. Must agree to not discriminate against households utilizing Housing Choice Vouchers
(Section 8) or other forms of rental assistance.
2. Development Projects that receive Financial Assistance from HRA, EDA or City and which result
in the loss of affordable housing:
a. Affordable housing units eliminated by the project must be replaced on-site or at
another location in Richfield by the developer at similar affordability levels, or;
b. 5-15% (depending on the magnitude of the loss of affordable housing) of the “net
present value” of the Financial Assistance provided must be pledged to the Richfield
Housing and Redevelopment Fund over a period of fifteen years or the duration of the
subsidy (whichever is longer).
Incentives
3. Housing Development Projects which include affordable units (as outlined in 1a above) are
eligible to apply to the City for the following considerations regardless of whether or not they
receive Public Financial Assistance:
i. Building Permit Fee Reductions e.g., ;
ii. 4d Property Tax Reduction (rental projects);
iii. Consideration of code flexibility (e.g., smaller setbacks, excessive impervious
surface, etc.) in planned unit developments;
iv. A housing unit density bonus of 5-15% (e.g., a project in an area that allows 8-24
units/acre could add an additional 1-4 units/acre and remain in compliance).
Exceptions
4. With regards to “scattered-site single family housing development,” at least 20% of the units
newly constructed or rehabilitated and converted to long-term affordability in any three-year
period must meet the proscribed affordability requirements.
5. With regards to projects between 5 and 19 units, the Community Development Director may
grant exceptions to the policy as circumstances warrant.
6. The City Council or Board of Commissioners of the Housing and Redevelopment Authority or
Economic Development Authority may vary the application of this policy as circumstances
warrant or as a developer identifies alternative means of addressing the spirit and intent of this
policy, with the adoption of findings of the reasons for doing so.
Adopted as revised:
This ___ day of _____, 2021 by the Richfield City Council.
______________________ _______________________
Mayor City Manager
This ___ day of _______, 2021 by the Richfield Housing and Redevelopment Authority.
______________________ _______________________
Chair Secretary
This ___ day of _________, 2021 by the Richfield Economic Development Authority.
______________________ _______________________
President Secretary
City of Richfield
Richfield Housing and Redevelopment Authority
Richfield Economic Development Authority
Inclusionary Affordable Housing Policy
The City of Richfield, Richfield Housing and Redevelopment Authority, and Richfield Economic
Development Authority are committed to building a community that is welcoming and affordable to
a diverse population of individuals and families at all stages of their lives. As such, we hereby
establish the following policy for the inclusion of affordable housing in development proposals.
Requirements
1. Housing Development Projects containing the construction of at least 5 new units which that
receive Financial Assistance from the HRA, EDA or City:
a. Must contain at least 20%a percentage of units that are affordable at one or more of the
following levels over a period of fifteen years or the duration of the subsidy (whichever
is longer): units
i.
Affordability Level % of Units
RENTAL
60% of Area Median Income (AMI) 20%
50% of AMI 10%
30% of AMI 5%
OWNER‐OCCUPIED
115% of AMI 20%
100% of AMI 10%
80% of AMI 5%
ii. A combination of affordability levels may be considered (e.g., 10% at 60% AMI
and 5% at 30% AMI).
iii. A mix of bedroom sizes similar to that of the overall building must be provided. A
reduction in the overall number of affordable units may be considered if a
greater number of 2 and/or 3 bedroom units are provided.
i. At least 20% of rental housing units must be made affordable to tenant
households earning no more than 60% of the Area Median Income over a period
of ten years or the duration of the subsidy (whichever is longer);
ii. At least 20% of owner‐occupied housing units must be made affordable to, and
initially sold to, households earning no more than 115% of the Area Median
Income;
iii. At least 20% of the grand total of housing units in a mixed rental/ownership
development must be affordable at the affordability levels established in 1.a)i
and 1.a)ii,
and
b. Must contain a minimum of 5% rental units that are Type A with a roll‐in shower or 3%
of rental units that are ADA‐Accessible. A combination of Accessible and Type A units
may also be considered. Units beyond those required by the Building Code must meet
the affordability and mix of bedroom sizes as required in 1a.
Or
b.c. Must contribute to the Richfield Housing and Redevelopment Fund
i. 15% of the “net present value” of Tax Increment generated by the project (or
15% of the net present value of other types of assistance) must be pledged to
the Richfield Housing and Redevelopment Fund over a period of ten fifteen
years or the duration of the subsidy (whichever is longer), or
ii. A pro‐rata combination of the above (i.e. 10% affordable units and a 7.5%
contribution) may be considered, and
iii. The accessibility component of 1b must still be met (the units may be market‐
rate) or an additional up‐front cash payment of $5,000 per required unit made
to the City’s Affordable Housing Trust Fund.
and
c.d. Must agree to provide 90 days’ advance notice to the public body providing funding of
any sale of the property,
and;
d.e. Must agree to not discriminate against households utilizing Housing Choice Vouchers
(Section 8) or other forms of rental assistance.
2. Non‐Housing Development Projects that receive Financial Assistance from HRA, EDA or City and
which result in the loss of affordable housing:
a. Affordable housing units eliminated by the project must be replaced on‐site or at
another location in Richfield by the developer at similar affordability levels, or;
b. 5‐15% (depending on the magnitude of the loss of affordable housing) of the “net
present value” of the Financial Assistance provided must be pledged to the Richfield
Housing and Redevelopment Fund over a period of ten fifteen years or the duration of
the subsidy (whichever is longer).
Incentives
3. Housing Development Projects which include affordable units (as outlined in 1a above) are
eligible to apply to the City for the following considerations regardless of whether or not they
receive Public Financial Assistance:
i. Building Permit Fee Reductions (e.g., 10% reduction for rehabilitation and/or 5%
reduction for new construction);
ii. 4d Property Tax Reduction (rental projects);
iii. Consideration of code flexibility (e.g., smaller setbacks, excessive impervious
surface, etc.) in planned unit developments;
iv. A housing unit density bonus of 5‐15% (e.g., a project in an area that allows 8‐24
units/acre could add an additional 1‐4 units/acre and remain in compliance).
Exceptions
4. With regards to “scattered‐site single family housing development,” at least 20% of the units
newly constructed or rehabilitated and converted to long‐term affordability in any three‐year
period must meet the proscribed affordability requirements.
4.5. With regards to projects between 5 and 19 units, the Community Development Director may
grant exceptions to the policy as circumstances warrant.
5.6. The City Council or Board of Commissioners of the Housing and Redevelopment Authority or
Economic Development Authority may vary the application of this policy as circumstances
warrant or as a developer identifies alternative means of addressing the spirit and intent of this
policy, with the adoption of findings of the reasons for doing so.
Adopted as revised:
This ___ day of _____, 2021 by the Richfield City Council.
______________________ _______________________
Mayor City Manager
This ___ day of _______, 2021 by the Richfield Housing and Redevelopment Authority.
______________________ _______________________
Chair Secretary
This ___ day of _________, 2021 by the Richfield Economic Development Authority.
______________________ _______________________
President Secretary