January 18 EDA AgendaECONOMIC DEVELOPMENT AUTHORITY MEETING
VIRTUAL MEETING VIA WEBEX
JANUARY 18, 2022
7:15 PM (IMMEDIATELY FOLLOWING THE HRA MEETING)
Call to Order
Consider the election of officers for the Richfield Economic Development Authority for 2022.
Staff Report No. 1
Open Forum: To participate live in the open forum dial 612-861-0651
Approval of the Minutes
Approval of the minutes of the regular Economic Development Authority meeting of December 20, 2021.
AGENDA APPROVAL
1.Consent Calendar contains several separate items which are acted upon by the EDA in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further EDA action on these items is necessary. However, any EDA
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for EDA discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A.Consider resolutions designating official depositories for the Economic Development Authority for 2022,
including the approval of collateral.
Staff Report No. 2
2.Consideration of items, if any, removed from Consent Calendar
OTHER BUSINESS
3.Consideration of the approval of a pilot component of the Apartment Remodeling Program, expanding eligible
properties to single-family and duplex rentals.
Staff Report No. 3
EDA DISCUSSION ITEMS
4.EDA Discussion Items:
Review the EDA Bylaws
Reschedule the February 21, 2022 EDA meeting to Wednesday, February 23, 2022 due to the
President's Day Holiday and the regular City Council meeting occurring on the following Tuesday.
EXECUTIVE DIRECTOR REPORT
5.Executive Director Report
CLAIMS
6.Claims
7.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.
AGENDA SECTION:Call to Order
AGENDA ITEM #
STAFF REPORT NO. 1
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
1/18/2022
REPORT PREPARED BY: LaTonia DuBois, Administrative Assistant
OTHER DEPARTMENT REVIEW: N/A
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Interim Executive Director
1/11/2022
ITEM FOR COUNCIL CONSIDERATION:
Consider the election of officers for the Richfield Economic Development Authority for 2022.
EXECUTIVE SUMMARY:
The Bylaws of the Richfield Economic Development Authority (EDA) provide that the EDA hold an annual
meeting in January. The Bylaws further provide that the EDA elect the President, Treasurer, and Secretary
annually.
Officers for 2021 were:
Mary Supple, President
Maria Regan Gonzalez, Vice-President
Sue Sandahl, Treasurer
LaTonia DuBois, Secretary (not required to be an EDA Commissioner)
Chris Regis, Assistant Treasurer (not required to be an EDA Commissioner)
The office of the Secretary states that they shall keep the minutes and maintain the records of the EDA. Staff
recommends that City Clerk, Kari Sinning be appointed as the Secretary of the EDA.
The office of the Assistant Treasurer has historically been held by the Finance Director. Since the current
Finance Director position is vacant, EDA Attorney, Julie Eddington suggested an EDA Commissioner take
on the role of Assistant Treasurer until the vacancy is filled.
RECOMMENDED ACTION:
By motion: Elect officers for the Richfield Economic Development Authority for 2022.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
Provided in the Executive Summary.
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
The EDA Bylaws provide for the election of officers.
C.CRITICAL TIMING ISSUES:
The EDA Bylaws require that an election of officers be held at the annual meeting in January.
D.FINANCIAL IMPACT:
N/A
E.LEGAL CONSIDERATION:
None
ALTERNATIVE RECOMMENDATION(S):
None
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 20, 2021
CALL TO ORDER
The meeting was called to order by President Supple at 7:41 p.m. via Webex.
EDA Members Mary Supple, President; Maria Regan Gonzalez; Erin Vrieze Daniels; Sue
Sandahl and Lee Ohnesorge
EDA Members
Absent None.
Staff Present: Melissa Poehlman, Interim Community Development Director; Julie Urban,
Housing and Redevelopment Manager; Kelly Wynn, Administrative Assistant
and LaTonia DuBois, Administrative Assistant.
OPEN FORUM
None.
APPROVAL OF THE MINUTES
M/Regan Gonzalez, S/Sandahl to approve the regular Economic Development Authority meeting minutes of August 16, 2021. Motion carried 5-0
Item #1 APPROVAL OF THE AGENDA M/Sandahl, S/Vrieze Daniels, to approve the agenda. Motion carried 5-0
Item #2
CONSIDERATION OF THE CONSENT CALENDAR
Interim Community Development Director Poehlman presented the consent calendar. a. Consideration of the approval of an extension and minor revisions to Transformation Home Loan Accessory Dwelling Unit Pilot Project.
EDA Meeting Minutes -2- December 20, 2021
M/Regan Gonzalez, S/Vrieze Daniels to approve the consent calendar. Motion carried 5-0 Item #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR.
None.
Item #4
CONSIDERATION OF A RESOLUTION GRANTING A 6-MONTH EXTENSION TO
THE REPAYMENT OBLIGATION AND INTEREST ACCRUALS RELATED TO THE
COVID-19 SMALL BUSINESS ASSISTANCE FORGIVABLE LOAN (STAFF
REPORT NO. 8).
Interim Community Development Director Poehlman presented Staff Report No. 8 M/Regan Gonzalez, S/Sandahl to approve a resolution granting a 6-month extension to the repayment obligation and interest accruals related to the COVID-19 Small Business Assistance Forgivable Loan. President Supple expressed excitement to learn that 92% of the loans had already been forgiven. Commissioner Sandahl inquired about the number of loans issued and forgiven. Motion carried 5-0 RESOLUTION NO. 35
RESOLUTION GRANTING AN EXTENSION TO REPAYMENT OBLIGATIONS AND INTEREST ACCRUALS
RELATED TO COVID-19 SMALL BUSINESS ASSISTANCE FORGIVABLE LOAN PROGRAM
Item #5
CONSIDERATION OF THE DESIGNATION OF MELISSA POEHLMAN AS
INTERIM EXECUTIVE DIRECTOR OF THE ECONOMIC
DEVELOPMENT AUTHORITY (STAFF REPORT NO. 9).
Interim Community Development Director Poehlman presented Staff Report No. 9 M/Regan Gonzalez, S/Sandahl to Designate Melissa Poehlman as the Interim Executive Director of the Economic Development Authority coterminous with her appointment as the Interim Community Development Director, but not to exceed six months. Motion carried 5-0
Item #6 EDA DISCUSSION ITEMS
None.
EDA Meeting Minutes -3- December 20, 2021
Item #7 EXECUTIVE DIRECTOR REPORT
None.
Item #8 CLAIMS AND PAYROLLS M/Regan Gonzalez, S/Sandahl that the following claims and payroll be approved:
U.S. BANK 9/20/2021
EDA Checks: 20707-20721 $40,065.99
TOTAL $40,065.99
U.S. BANK 10/18/2021
EDA Checks: 20722-20739 $50,172.17
TOTAL $50,172.17
U.S. BANK 11/15/2021
EDA Checks: 20740-20753 $37,563.00
TOTAL $37,563.00
U.S. BANK 12/20/2021
EDA Checks: 20754-20769 $38,246.91
TOTAL $38,246.91
Motion carried 5-0 Item #8 ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:54 p.m. Date Approved: January 18, 2022 Mary B. Supple President LaTonia DuBois Melissa Poehlman Administrative Assistant Interim Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #1.A.
STAFF REPORT NO. 2
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
1/18/2022
REPORT PREPARED BY: Myrt Link, Community Development Accountant
OTHER DEPARTMENT REVIEW: Jodi Bursheim, Interim Finance Director
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Interim Executive Director
1/6/2022
ITEM FOR COUNCIL CONSIDERATION:
Consider resolutions designating official depositories for the Economic Development Authority for
2022, including the approval of collateral.
EXECUTIVE SUMMARY:
In compliance with Minnesota statutes, the Economic Development Authority of Richfield (EDA) must
designate on an annual basis those financial institutions it does business with.
The following resolutions for the EDA Board’s consideration, designate U.S Bank/4M Fund as a depository
of EDA funds, and certain savings and loan associations, banks, credit unions and certain financial
institutions as depositories for the investment of EDA funds.
RECOMMENDED ACTION:
By motion: Adopt the attached resolutions designating official depositories, with the understanding
that the Economic Development Auhority could not invest in any of the depositories beyond the level
of insurance coverage of the pledged collateral.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
N/A
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
In accordance with Minnesota Statutes Section 118A.01 - 118A.06 and 469.099, the EDA of
Richfield must designate financial institutions annually. The institutions must pledge the collateral
over and above the amount of federal insurance, as public depositories.
U.S. Bank acts as the banking institution in the EDA’s banking arrangement with the 4M Fund.
Monies received, checks written, by the EDA, flow through U.S. Bank, however, at the end of
each business day, any proceeds remaining in EDA U.S. Bank accounts are swept to the 4M
Fund to be invested. Therefore, at the end of the business day the EDA accounts are zero, which
means the collateral requirements of Minnesota Statutes Section 118A.03 are not required.
Accordingly, U.S. Bank has met all other statutory requirements and should be considered as a
depository for the EDA’s vendor accounts and all savings deposits.
The EDA must also designate annually, certain savings and loan associations, banks, and credit
unions as official depositories for deposit and investment of certain EDA funds. With approval of
these official depositories, the EDA will be able to invest funds in these institutions, not exceeding
the federal insurance of $250,000.
Finally, a designation must be made for certain financial institutions as depositories for the
investment of EDA funds for 2022. These institutions, such as investment brokerage firms, offer
government securities in the manner required by law. These financial institutions include RBC
Capital Markets, Raymond James & Associates, Northland Securities, Oppenheimer & Co., Wells
Fargo Institutional Retirement and Trust, and the 4M Fund.
C.CRITICAL TIMING ISSUES:
N/A
D.FINANCIAL IMPACT:
N/A
E.LEGAL CONSIDERATION:
The EDA is required by Minnesota Statute 118A.01 - 118A.06 and 469.099, to designate as a
depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied
by an assignment pledged to the EDA in the amount specified in the attached resolutions.
ALTERNATIVE RECOMMENDATION(S):
None.
PRINCIPAL PARTIES EXPECTED AT MEETING:
None.
ATTACHMENTS:
Description Type
Resolution Designating Certain Financial Institutions as
Depositories Resolution Letter
Resolution Designating US Bank a depository of funds Resolution Letter
Resolution Designating Certain S&L Associations, banks
& credit unions as depositories Resolution Letter
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2022 WHEREAS, the Economic Development Authority of Richfield has money which is available for investment; and WHEREAS, different financial institutions offer different rates of return on investments; and WHEREAS, the Economic Development Authority of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the Economic Development Authority of Richfield providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections 118A.01 – 118A.06, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Economic Development Authority of Richfield funds that certain financial institutions be designated as additional depositories for Economic Development Authority of Richfield funds for 2022. 2. The following financial institutions designated as depositories for the Economic Development Authority of Richfield funds: RBC Capital Markets. Raymond James & Assoc. 4M Fund Oppenheimer & Co. Wells Fargo Institutional Retirement & Trust Northland Securities, Inc. 3. The Finance Director is hereby authorized to deposit the Economic Development Authority of Richfield funds in any or all of the depositories herein designated. Such deposits may be made and withdrawn from time to time by the Finance Director’s judgment and as the interest of the Economic Development Authority of Richfield dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the investment of these funds. Adopted by the Economic Development Authority of Richfield, Minnesota this 18th day of January, 2022. Mary B. Supple, President ATTEST: Melissa Poehlman, Interim Executive Director
RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE EDA OF RICHFIELD FOR THE YEAR 2022
BE IT RESOLVED, by the Economic Development Authority of Richfield as
follows:
That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank be, and hereby is designated a depository of the funds of the Economic
Development Authority of Richfield, subject to modification and revocation at any time by said Economic Development Authority, and subject to the following terms and
conditions:
The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any
depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in
any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved
by the Economic Development Authority of Richfield.
That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on
demand.
BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. The following officers or their facsimile
signatures shall sign checks on this account;
MARY B. SUPPLE, PRESIDENT MELISSA POEHLMAN, INTERIM EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that all funds remaining in the account at the end
of each business day will be transferred from U.S. Bank to the 4M Fund where funds
deposited are invested and insured.
Adopted by the Economic Development Authority of Richfield, Minnesota this
18th day of January, 2022.
Mary B. Supple, President
ATTEST:
Melissa Poehlman, Interim Executive Director
RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2022 BE IT RESOLVED, by the Economic Development Authority of Richfield, Minnesota: WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 – 118A.06, municipal funds may be deposited in any Savings and Loan Association, Bank or Credit Union which has its deposits insured by the Federal Deposit Insurance Corporation (FDIC), or National Credit Union Administration (NCUA); and WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA insurance covering such deposits which insurance amount is presently $250,000; and WHEREAS, the deposit of Economic Development Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Economic Development Authority’s investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of Richfield, Minnesota, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Economic Development Authority funds that certain Savings and Loan Association and Banks be designated as additional depositories for Economic Development Authority funds for 2022. 2. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Economic Development Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Economic Development Authority funds in other officially designated depositories of the Economic Development Authority. 3. The Finance Director is hereby authorized to deposit Economic Development Authority funds in various depositories up to the amount of $250,000, or such other amount as may be subsequently permitted by law, such deposits to be in the form of demand accounts, payable to the Economic Development Authority of Richfield on the signatures of the Economic Development Authority Finance Director. Such deposits may be made and withdrawn from time to time by the Finance Director as his best judgment and the interests of the Economic Development Authority dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies of the Economic Development Authority regarding the investment of Economic Development Authority funds. Adopted by the Economic Development Authority of Richfield, Minnesota this 18th day of January, 2022. Mary B. Supple, President ATTEST: Melissa Poehlman, Interim Executive Director
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #3.
STAFF REPORT NO. 3
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
1/18/2022
REPORT PREPARED BY: Julie Urban, Housing & Redevelopment Manager
OTHER DEPARTMENT REVIEW: N/A
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Interim Executive Director
1/12/2022
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the approval of a pilot component of the Apartment Remodeling Program, expanding
eligible properties to single-family and duplex rentals.
EXECUTIVE SUMMARY:
The Economic Development Authority (EDA) has an interest in maintaining and improving the city's
apartment housing stock. To that end, the EDA created a Richfield Apartment Remodeling Program (ARP) in
2018. The ARP targets apartments with four or more units. In the four years of the ARP, the EDA has
awarded $325,362 in loans to eight properties, ranging from four to 422-unit properties, and leveraging more
than twice that amount in investment in our apartment communities.
Of the city's 6,000-plus licensed rental housing units, approximately 800 are single family and duplex units.
These units provide an important source of larger-sized rental units in the city, as well as the opportunity to
provide private open space for families with children. The city's single-family and duplex housing units were
primarily built in the 1950s and like the 1960s-era apartment buildings, are often in need of maintenance and
repair.
Based on requests from owners of single-family and duplex rentals, and the fact that ARP funds have not
been fully utilized by apartment owners in the past couple of years, staff is proposing that the EDA adopt a
pilot program that would allow up to $20,000 of 2022 ARP funds to be used on single-family and duplex rental
property improvements.
The proposed program guidelines would include the following components:
Funds would be awarded in the form of a fifteen-year, zero-interest, forgivable loan.
The maximum loan amount would be $10,000 per unit and a 100 percent match would be required.
Eligible improvements would be limited to maintenance and repairs, safety improvements, energy-
efficiency and accessibility-related improvements. Up to an additional $5,000 could be added to the
loan if energy-efficiency and accessibility-related improvements were included.
If a Borrower continued to rent the property and maintain a current rental license for the full
length of the loan term, the lien would be forgiven.
If a Borrower sold the property before the maturity date to an existing renter with a household income
no more than 80 percent of the Area Median Income (AMI), the loan would also be forgiven.
Priority would be given to properties that charge rent affordable at no more than 60 percent of the AMI.
A single property owner would be limited to no more than $50,000 in loans across multiple properties.
Depending on the results of the pilot program, staff would seek additional funding sources to
continue the program.
RECOMMENDED ACTION:
By motion: Adopt guidelines for a pilot component of the Apartment Remodeling Program expanding
the program to single-family and duplex rental properties, and authorize staff to prepare loan
documents in consultation with the Economic Development Authority Attorney.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The EDA created an Apartment Remodeling Program in 2018, and has awarded eight loans and
over $325,000 in funds.
The city is home to approximately 800 single-family and duplex rental units. Built primarily in the
1950s, the city's single-family and duplex housing units are in ongoing need of maintenance and
improvements
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
It is the city's policy to support the rehabilitation and upgrading of the existing housing stock.
C.CRITICAL TIMING ISSUES:
Approving guidelines at this time will give staff direction on the EDA's interest in the program
before spending time and resources developing loan documents.
D.FINANCIAL IMPACT:
$100,000 is available for ARP for 2022. The pilot program would be limited to $20,000 of this
funding. The ARP is funded through the EDA levy.
E.LEGAL CONSIDERATION:
The EDA Attorney will review the program guidelines and prepare loan documents.
ALTERNATIVE RECOMMENDATION(S):
1. Approve the guidelines for the pilot program expansion of the Apartment Rehabilitation Program with
modifications.
2. Decide not to approve the expansion of the Apartment Rehabilitation Program.
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ATTACHMENTS:
Description Type
Proposed Guidelines Backup Material
Apartment Remodeling Program Guidelines Backup Material
Pilot Program – Rehabilitation Loans for Single Family and Duplex Rentals
January 2021
Criteria for Eligibility
1. The property must be a single family or duplex residential rental property.
2. In the case of an owner-occupied duplex, only the rental unit is eligible for loan funds.
3. Only one Loan will be provided per eligible property during the 15-year loan period.
4. The building(s) to be improved must be at least 30 years old.
5. The Property must be located within the City of Richfield municipal boundaries.
6. The Applicant must have a current rental housing license in good standing for the Property
and be in compliance with applicable city codes and ordinances. A request for loan funds to
bring the property into compliance may also be considered.
7. The combined loan-to-value ratio of all loans secured by the property must not exceed
110% of the property value.
8. The Applicant must be current on mortgage/contract for deed payments and property
taxes.
Terms and Conditions of the Loan
1. Funds will be awarded in the form of a fifteen-year, zero-interest, forgivable Loan.
2. If a Borrower sells or transfers title of the property before the maturity date, the Borrower
will be responsible for repaying the Loan in full.
3. If a Borrower retains ownership and continues to rent the Property and maintains a current
rental license for the full length of the loan term, the lien will be forgiven fifteen years from
the date of the loan.
4. If a Borrower sells or transfers title of the property before the maturity date to an existing
renter with a household income no more than 80 percent of the Area Median Income
(AMI), the loan will be forgiven. The income qualification rules of the City’s First-time
Homebuyer Program will be applied to determine eligibility.
5. Minimum loan amount = $3,000
6. Maximum loan amount/unit = $10,000
7. Additional funds up to $5,000 may be awarded to properties that have had a certified
energy audit (e.g., Home Energy Squad) performed and the additional funds are needed to
complete energy-saving improvements identified in the energy audit or to make
accessibility improvements to accommodate a tenant with disabilities.
8. Maximum total loan funds awarded to a single property owner = $50,000
9. Loan funds must be matched on a 1:1 basis by other funds.
Eligible/In-Eligible Improvements
1. Maintenance and repair, such as roof replacement, window/door replacement, electrical
updates.
2. Safety improvements, such as egress window installation, hard-wired smoke and carbon
monoxide detectors.
3. Energy Star Certified furnaces, water heaters, and central air conditioning.
Pilot Program – Rehabilitation Loans for Single Family and Duplex Rentals
January 2021
4. Other energy-efficiency-related improvements, such as insulation, caulking, or air sealing,
consistent with Energy Fit Homes Requirements.
5. Accessibility-related improvements, such as door widening, grab bars, ramps.
6. Grading/site work as it relates to preventing water infiltration.
7. Other maintenance, repair, and/or safety-related improvements as approved by EDA staff.
8. Swimming pools, hot tubs, and appliances (except for built-in appliances) are not eligible for
loan funds.
9. Improvements begun prior to the day of closing are not eligible for loan funds.
ARP Guidelines March 19, 2018
1
Richfield Economic Development Authority
Apartment Remodeling Program
Procedural Guidelines
Statement of Purpose
The Richfield Apartment Remodeling Program (ARP)was established by the Richfield Economic
Development Authority (EDA)to encourage investment in the City’s apartment buildings and
improve the City’s rental housing stock.The purpose of ARP is to provide financial incentives to
owners of residential apartment property to make physical improvements to their properties.
NOTE:Procedural Guidelines are a tool for guiding program administration. Procedural Guidelines
do not constitute a contractual agreement or liability on the part of the City or the Economic
Development Authority (EDA).
Program Objectives
To maintain and improve Richfield’s rental housing stock.
To offset costs associated with deferred maintenance and updates associated with rental
housing.
To incentivize owners to invest private resources into apartment buildings.
To preserve naturally-occurring affordable rental housing.
To stabilize and improve neighborhoods.
Criteria for Eligibility
1.Residential rental property with four or more units.
2.Only one Loan will be provided per eligible property during the 15-year loan period.
3.The building(s) to be improved must be at least 30 years old.
4.The Property must be located within the City of Richfield municipal boundaries.
5.The Applicant must have a current rental housing license for the Property and be in compliance
with applicable city codes and ordinances.
6.The combined loan-to-value ratio of all loans secured by the property must not exceed 110%of
the property value.
7.The Applicant must be current on mortgage/contract for deed payments and property taxes.
Terms and Conditions of the ARP Loan
1.Funds will be awarded in the form of a fifteen-year, zero-interest, forgivable Loan.
2.If a Borrower sells or transfers title of the property before the maturity date, the Borrower will
be responsible for repaying the Loan in full.
3.If a Borrower retains ownership and continues to rent the Property for the full length of the
loan term, the lien will be forgiven fifteen years from the date of the loan.
4.Minimum loan amount = $5,000
Maximum loan amount per building = $50,000
Maximum amount per unit = $5,000
ARP Guidelines March 19, 2018
2
The EDA Board may consider requests for loan amounts more than the maximum.
5.Loan funds must be matched on a 1:1 basis by other funds.
6.Funding is available on a limited basis.The EDA is not responsible for unavailability of Loan
funds to Applicants.
7.Funding an application is at the EDA’s discretion.
Application Procedure
The Applicant must:
1.Complete the Application Form (Exhibit A).
2.Submit completed Application Form and all required documentation, including a
rehabilitation plan, at least one bid(s), and digital photos.The EDA reserves the right to
require a second bid.
3.Submit the $300 application fee.
The EDA will:
1.Review applications for completeness and compliance with ARP Guidelines.
2.Review and award Applications on a first-come, first-served basis, based on the date of
receipt and completeness of the application, as determined by the EDA.Priority may be
given to buildings that qualify as Naturally Occurring Affordable Housing (NOAH) and to
projects that don’t displace current tenants.
3.If the Application is determined to be eligible and funds are available, will provide a
Loan commitment letter to the Applicant.
Loan Process
1.Upon receipt of a Commitment letter, the Borrower has 30 days to close on the loan.
2.A lien will be placed against the Property by the EDA for the full Loan amount through a
Mortgage and Promissory Note (Exhibits B and C).The Borrower will provide the EDA with an
executed mortgage in recordable form.The Loan recipient must also provide to the EDA an
executed Promissory Note,Loan Agreement, Errors and Omissions Acknowledgement
Agreement, and Certificate and Request for Notice: Foreclosure.(See examples in Exhibits B,
C, D, E, and F.)The Borrower will pay the cost of recording the mortgage.
3.Work must be completed and funds requested within 180 days of the Loan closing date.
4.Loan funds will be paid upon completion of the work.The following items must be received
prior to final disbursement of funds:
1)final invoice from contractor;
2)lien waivers for the full amount of the payment, and
3)a Completion Certificate signed by the city inspector, the Borrower, and Contractor
(Exhibit G).
5.If at any time during the life of the ARP Loan an Event of Default occurs or the Loan matures
prior to the original fifteen year term, the Loan will be required to be repaid in full.
6.A satisfaction of Mortgage (Exhibit H) in recordable form will be provided upon receipt of
repayment of the Loan or at the end of the repayment period. The ARP Loan may also be paid
in full at any time.
ARP Guidelines March 19, 2018
3
Eligible/Ineligible Improvements
1.Value-added improvements, such as remodeling kitchens and/or bathrooms.
2.Maintenance and repair, such as roof replacement, window/door replacement,or electrical
updates.
3.Furnaces, water heaters, and central air conditioning.
4.Cosmetic improvements, such as painting or flooring replacement/repair.
5.Improvements to common areas, as approved by EDA staff.
6.Energy-efficient-related improvements, such as insulation, caulking, or air sealing.
7.Permanent landscaping, as determined by EDA staff.
8.Swimming pools,hot tubs, and appliances (except for built-in appliances)are not eligible for
loan funds.
9.Improvements begun prior to the day of closing are not eligible for loan funds.
Contractors/Permits
1.All work must be performed by a licensed Contractor(s), when required by city/state
ordinance.
2.All proper permits must be obtained per city code.
3.During the rehabilitation process, required inspections must be arranged by the Applicant or
Contractor.Additional inspections may be requested by EDA staff.
4.Work can be performed on a “sweat equity” basis;however, loan funds cannot be used to
compensate for labor, only for materials. The owner must clearly demonstrate the ability to
complete the work in a quality manner and within the program time requirement.The EDA
reserves the right to deny a loan if it determines that this requirement is not likely to be met.
When required by city ordinance, a building permit must be obtained by the Borrower.
General Conditions
1.Borrowers shall not discriminate against holders of Section 8 vouchers or other forms of rent
assistance.
2.In the event of a sale of the property, Borrowers shall provide the EDA with 90 days’ written
notice, prior to closing on the sale of the property.
General Program Marketing
Program marketing is entirely at the discretion of the EDA. It may include the following:
Promotional Articles
Direct Mail or Email contact
Website announcements
Data Privacy
The EDA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government Data Practices
Act”).Under the Minnesota Government Data Practices Act, the names and addresses of
applicants for or recipients of assistance under this program and the amount of assistance
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received under this program are public data.All other financial information submitted to the HRA
for purposes of the program application is considered private data.
Hold Harmless
Applicants shall indemnify and hold harmless the EDA and the City, their officers, agents, and
employees from and against all claims, loss, damage, cost, and expense alleged to have resulted
from any remodeling or rehabilitation work completed with the funds provided under ARP.
No EDA officer authorized to take part in administering the ARP Loan Program, in his or her official
capacity, shall have a personal financial interest or benefit financially from the Loan. No member,
official, or employee of the EDA shall be personally liable to the Buyer, or any successor in interest,
for any act or omission of the EDA or for any amount which may become due to the Applicant or
successor or on any EDA obligations.
Definitions
Applicant—Person or persons who apply for ARP funding.
ARP Loan or Loan—Interest-free loan offered by the EDA for rehabilitating a Property. The
maximum loan amount is $50,000 and $5,000 per unit. The Loan is payable upon sale of the
Property or forgiven after 15 years.
Borrower –The person receiving the loan.
City —The City of Richfield.
Combined Loan-to-Value Ratio (CLTV)–The sum of all debt owed against a property divided by the
total value of the property.
Contractor –A professional, appropriately licensed by the Minnesota Department of Labor,hired
by the Applicant to complete all or a portion of the Improvements.
Economic Development Authority (EDA)–The Richfield Economic Development Authority.
Deferred Loan –Payment of the loan is deferred until such time as the loan matures. The loan
requires no payments or interest as long as the terms of the Note and Mortgage are being met.
Event of Default –A default under a Mortgage or Loan Agreement executed by the Buyer for
purposes of an ARP Loan.
Improvements —Each and all of the remodeling or rehabilitation to be constructed on the
Property by the Applicant, as specified in the Rehabilitation Plans approved by the EDA.
Loan Agreement –A contract between a Borrower and the EDA that regulates the mutual
promises made by each party.
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Mortgage and Holder —The Mortgage shall include financing creating an encumbrance or lien
upon the Property or any part thereof, as security for a loan. The Holder includes any insurer or
guarantor (other than the Buyer) of any obligation or condition secured by such mortgage or deed
of trust.
Naturally Occurring Affordable Housing (NOAH)-Residential rental properties that maintain
affordable rents without public subsidies. Properties charge rents that are affordable to a
household earning less than 60 percent of the Area Median Income (AMI), as published annually
by the Department of Housing and Urban Development.
Property –The rental property identified in the ARP application.
Rehabilitation Plans —Collectively,the plans, drawings,and documents related to the
Improvements.
Rental Property —A property from which the owner receives payment from an occupant(s) in
return for occupying the property for at least 12 months prior to applying for an ARP Loan.
Sweat Equity –Improvements made to a property by the property’s owner.
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List of Exhibits
Exhibit A –Application Form
Exhibit B –Mortgage
Exhibit C –Promissory Note
Exhibit D -Loan Agreement
Exhibit E –Errors and Omissions Acknowledgement Agreement
Exhibit G –Certificate and Request for Notice: Foreclosure
Exhibit H -Satisfaction of Mortgage
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EXHIBIT A
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EXHIBIT B
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EXHIBIT C
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EXHIBIT D
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EXHIBIT E
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EXHIBIT F
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EXHIBIT G
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EXHIBIT H
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BYLAWS OF THE
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
ARTICLE I – THE AUTHORITY
Section 1. Name of Authority. The name of the economic development authority shall
be the “Richfield Economic Development Authority” (the “Authority”).
Section 2. Seal of Authority. The seal of the Authority shall be in the form of a circle and
shall bear the name of the Authority.
Section 3. Office of Authority. The offices of the Authority shall be at City Hall in the City
of Richfield, Minnesota, but the Authority may hold its meetings at such other place or places as
it may designate by resolution.
Section 4. Official Newspaper. The official newspaper shall be the official newspaper
designated by the City as its official newspaper each year.
ARTICLE II – BOARD
Section 1. Number and Appointment of Commissioners. The Authority shall consist of a
governing body of five commissioners (the “Board”). Two commissioners shall be members of
the City Council and three commissioners shall be members at large. The terms of the
commissioners who are also members of the City Council shall coincide with their terms of
office as members of the City Council. The three at large commissioners shall be the three at
large commissioners of the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the “HRA”). The terms of the commissioners at large shall be six years.
At any time an at large commissioner of REDA is not also a commissioner of the HRA, such
commissioner’s term on REDA shall terminate.
ARTICLE III – OFFICERS
Section 1. Officers. The officers of the Authority shall be a President, Vice-President,
Treasurer, Secretary, and Assistant Treasurer, each of whom shall have the usual duties and
powers of such offices, the duties and powers given to them by the Board from time to time, and
those duties and powers prescribed by Minnesota law or these bylaws. The President,
Treasurer, and Secretary shall be elected annually by the Board. No commissioner may be
both President and Vice-President simultaneously. No commissioner may be both Treasurer
and Assistant Treasurer simultaneously. The Secretary and the Assistant Treasurer need not
be commissioners.
Section 2. President. The President shall preside at all meetings of the Board. Except
as otherwise authorized by resolution of the Board, the President shall sign all contracts, deeds,
and other instruments made or authorized by the Board. At each meeting the President shall
submit such recommendations and information as he or she may consider proper concerning
the business, affairs, and policies of the Authority.
Section 3. Vice-President. The Vice-President shall perform the duties of the President
in the absence or incapacity of the President. In case of the resignation or death of the
President, the Vice-President shall perform the duties of the President until such time as the
Board shall elect a new President.
Section 4. President Pro Tem. In the event of the absence or incapacity of both the
President and the Vice-President at any meeting, the Board may appoint any remaining
commissioner as President Pro Tem to preside at such meeting.
Section 5. Secretary. The Secretary shall keep the minutes of all meetings of the Board
and shall maintain all records of the Authority and shall have such other duties and
responsibilities as the Board may from time to time prescribe by resolution.
Section 6. Treasurer. The Treasurer shall have the care and custody of all funds of the
Authority and shall deposit the same in the name of the Authority in such national or state bank
or banks in Minnesota as the Board may select. The Treasurer shall sign all Authority orders
and checks for the payment of money and shall pay out and disburse such moneys under the
direction of the Board. The Treasurer shall keep regular books of accounts showing receipts
and expenditures and shall render to the Board, at least annually (or more often when
requested), an account of such transactions and also of the financial condition of the Authority
by filing a detailed financial statement with the Secretary. The Treasurer is responsible for the
acts of the Assistant Treasurer and must give bond as required by law.
Section 7. Assistant Treasurer. The Assistant Treasurer has the powers and duties of
the Treasurer if the Treasurer is absent or disabled.
Section 8. Executive Director. The Authority shall employ an Executive Director who
shall be the chief executive officer of the Authority and shall have general supervision over the
administration of the Authority’s business and affairs, subject to the direction of the Authority.
He or she shall have such additional responsibilities and authority as the Board may from time
to time by resolution prescribe. Regardless of who is appointed as Executive Director, the City
Manager of the City of Richfield shall have ultimate authority in recommending an annual levy
and budget. The Executive Director may designate an acting Executive Director during periods
when the Executive Director is absent or incapacitated.
Section 9. Other Administrative Officers. The Authority may designate a Recording
Secretary who shall keep the records of the Authority, shall act as recorder of the meetings of
the Authority and record all votes, and shall keep a record of the proceedings of the Authority in
a journal of proceedings to be kept for such purpose, and shall perform all duties incidental to
his or her office. He or she shall keep in safe custody the seal of the Authority and shall have
power to affix such seal to all contracts and instruments authorized to be executed by the
Authority.
Section 10. Additional Employees. The Authority may from time to time such personnel
as it deems necessary to exercise its powers, duties, and functions, including but not limited to a
chief engineer, other technical experts and agents, and other employees. The selection and
compensation of such personnel shall be determined by the Board.
Section 11. Advisory Committees. The Authority may by resolution establish one or
more advisory committees to the Authority.
Section 12. Signature Authority. The following signature authority shall be authorized
for transactions executed under direction of the Board:
(A) All orders and checks of the Authority for payment of money as directed
by the Board shall be signed by the President and the Executive Director.
(B) All contracts, deeds, and other instruments made or authorized by the
Board, except as otherwise authorized by resolution of the Board, shall be signed by the
President and the Executive Director.
(C) The Vice-President shall have the capacity to sign as an alternate officer
of the Authority under extenuating circumstances such as lengthy executed absence,
vacancy, termination, resignation, incapacitation or death of the President or of the
Executive Director. The Vice-President may sign as an alternate for only one absent
individual for any Authority matter until the absent individual has returned or a successor
is appointed to fill the office. The Vice-President may not sign in the capacity of more
than one individual for any particular item requiring more than one signature. For
purposes of this definition, absent is defined as a period, usually significant in length,
during which an officer is away and/or unable to fulfill the officer’s role within the
Authority leading to the potential for business issues of the Authority to be delayed
and/or deadlines to be missed.
ARTICLE IV – FINANCIAL MATTERS
Section 1. Fiscal Year. The fiscal year of the Authority shall be the same as the fiscal
year of the City.
Section 2. Accounting System and Audits; Books and Records. The financial records
and financial statements of the Authority shall be prepared, audited, filed, and published or
posted in the manner required for the financial statements of the City. The books and records of
the Authority shall be public records maintained in accordance with state law and with such
rules, regulations, and ordinances adopted by the City for maintaining public records.
Section 3. Public Money; Checks. All Authority money is public money. An Authority
check must be signed as provided in Section 12 under Article III – Officers. The check must
state the name of the payee and the nature of the claim for which the check was issued.
Section 4. Reports to the City. Annually, at a time and in a form fixed by the City
Council, the Authority shall make a written report to the City Council giving a detailed account of
its activities and of its receipts and expenditures during the preceding calendar year, together
with additional matters and recommendations the Authority deems advisable for the economic
development of the City. The Authority shall also submit a report to the City Council annually
within 60 days of the anniversary date of the adoption of the enabling resolution stating whether
and how the enabling resolution should be modified.
Section 5. Financial Statement. Annually, or more often, the Authority shall examine the
Treasurer’s detailed financial statement, together with the Treasurer’s vouchers, filed with the
Secretary. The financial statement must show all receipts and disbursements, their nature, the
money on hand, the purposes to which the money on hand is to be applied, the Authority’s
credits and assets, and the Authority’s outstanding liabilities in a form required for the City’s
financial statements. If the Authority finds that the statement and vouchers are correct, it shall
approve them by resolution and enter the resolution in its records.
Section 6. Budget to the City. The Authority shall annually, at a time fixed by the City,
send its budget to the City Council. The budget must include a detailed written estimate of the
amount of money that the Authority expects to need from the City to do Authority business
during the next fiscal year. The needed amount is what is needed in excess of any expected
receipts from other sources.
Section 7. Employees, Services, Supplies, and Contracts. The Authority shall have all
of the power and do all of the things permitted by Minnesota Statutes, Section 469.097, as
amended, including but not limited to employing an Executive Director, a chief engineer,
technical experts and other employees as it may require; contracting for the services of
consultants, agents, public accountants, legal services, and such other persons or services as it
may need to perform its duties and exercise its powers; purchasing supplies and materials; and
using City facilities, offices, and staff, including the City engineer and City attorney, in the
exercise of its powers and the performance of its duties.
Section 8. Execution of Contracts. The Authority may make and enter into contracts
pursuant to Minnesota Statutes, Section 469.101, as amended, and other applicable law. All
contracts, notes, and other written agreements or instruments to which the Authority is a party
or by which the Authority may be bound must be executed as provided in Section 12 under
Article III – Officers. If the president or the executive director is absent or otherwise unable to
execute a document, the vice president may execute the document in place of one individual
but not both.
ARTICLE V – MEETINGS
Section 1. Annual Meeting. The annual meeting of the Authority shall be held on the
third Tuesday in January immediately following the adjournment of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, which commences at 7:00
p.m. at the regular meeting place of the Authority.
Section 2. Regular Meetings. Monthly meetings shall be held without notice at the
regular meeting place of the Authority on the third Monday of each month immediately following
the adjournment of the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota, which commences at 7:00 p.m. unless the same shall be a legal holiday, in which
event said meeting shall be held on the next succeeding secular day.
Section 3. Special Meetings. Special meetings of the Authority may be called by the
President or any two commissioners of the Authority for the purpose of transacting any business
designated in the call. The call for a special meeting may be delivered at any time prior to the
time of the proposed meeting to each member of the Authority or may be mailed to the business
or home address of each commissioner of the Authority at least two (2) days prior to the date of
such special meeting. At such special meeting no business shall be considered other than as
designated in the call, but if all of the members of the Authority are present at a special meeting,
any and all business may be transacted at such special meeting.
Section 4. Quorum. The powers of the Authority shall be vested in the commissioners
thereof in office from time to time. Three commissioners shall constitute a quorum for the
purpose of conducting its business and exercising its powers and for all other purposes, but a
smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in
attendance, action may be taken by the Authority upon a vote of a majority of the
commissioners present.
Section 5. Order of Business. At the regular meetings of the Authority the following
shall be the order of business:
1. Call to Order/Noting of Attendance.
2. Open Forum
3. Approval of Minutes of Previous Meeting(s).
4. Presentations.
5. Approval of Agenda.
6. Consent Agenda.
7. Public Hearings.
8. Resolutions.
9. Other Business.
10. EDA Discussion Items.
11. Executive Director’s Report.
12. Approval of Claims.
13. Adjournment.
All resolutions shall be in writing and shall be copied in the journal of the
proceedings of the Authority.
Section 6. Combining Administrative Offices; Compensation. The compensation
of the Executive Director and other personnel of the Authority shall be determined by
the Authority. Any two or more administrative offices may be combined.
Section 7. Additional Duties. The officers of the Authority shall perform such other
duties and functions as may from time to time be required by the Authority or the Bylaws or
rules and regulations of the Authority.
Section 8. Executive Director. The Executive Director shall be appointed by the
Authority. Any person appointed to fill the office of Executive Director or any vacancy therein,
shall have such term as the Authority fixes, but no commissioner of the Authority shall be
eligible for this office.
Section 9. Vacancies. A vacancy is created in the membership of the Authority when a
commissioner who is also a City Council member ends his or her City Council membership. A
vacancy for this or another reason must be filled for the balance of the unexpired term, in the
manner in which the original appointment was made. The City Council may set the term of the
commissioners who are members of the City Council to coincide with their term of office as
members of the City Council. Should the office of President, Vice-President, or Secretary
become vacant, the Authority shall elect a successor from its membership at the next regular
meeting, and such election shall be for the unexpired term of said office.
ARTICLE V – AMENDMENTS
Section 1. Amendments to Bylaws. The Bylaws of the Authority shall be amended only
with the approval of at least three of the members of the Authority at a regular or a special
meeting.
Adopted: May 15, 2017
Amended: October 15, 2018
Amended: January 21, 2020
Revised: 3/10/21
CITY OF RICHFIELD
ECONOMIC DEVELOPMENT AUTHORITY
Name Elected Term Expires
Maria Regan Gonzalez (1)
Vice President
2019 January 2, 2023
Mary Supple (1)
President
2019 January 2, 2023
Lee Ohnesorge
2021 November 12, 2023
Sue Sandahl (1)
Treasurer
2017 March 20, 2022
Erin Vrieze Daniels (1)
2017 November 20, 2022
Executive Director: John Stark
Secretary: LaTonia DuBois
Assistant Treasurer: Chris Regis