011723 MWF Resolution Approving First Amendment to ContractHOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 1448
RESOLUTION APPROVING AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT
WITH MWF PROPERTIES, LLC
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) was created pursuant to Minnesota Statutes, Sections 469.001 through
469.047, as amended, and was authorized to transact business and exercise its powers by a
resolution of the City Council of the City of Richfield, Minnesota (the “City”); and
WHEREAS, MWF Properties, LLC, a Minnesota limited liability company (the “Developer”),
intends to acquire certain property from the Authority (the “Development Property”) and construct
thereon a multifamily housing development, which shall include seven (7) HPH Housing Support
units, five (5) 811 units for disabled individuals, six (6) units reserved for persons or families whose
income is thirty percent (30%) or less of the metro area’s median gross income, and nineteen (19)
units reserved for persons or families whose income is fifty percent (50%) or less of the metro
area’s median gross income (the “Minimum Improvements”); and
WHEREAS, the Authority and the Developer entered into a Contract for Private
Development, dated December 20, 2021 (the “Original Agreement”), pursuant to which the
Developer agreed to construct the Minimum Improvements, and the Authority agreed to reimburse
the Developer for certain public redevelopment costs associated with the Minimum Improvements
(the “Public Redevelopment Costs”); and
WHEREAS, the Board of Commissioners of the Authority (the “Board”) previously approved
amendments to the Original Agreement by motion at its June 21, 2022 meeting, pursuant to which
the Developer changed the project to a 9% tax credit project, changed the affordability mix of units
to include four-bedroom units, and explored implementation of energy efficiency measures, and the
Authority increased the maximum amount of funds to be reimbursed to the Developer as Public
Redevelopment Costs by $200,000; and
WHEREAS, the Developer requires housing allocation (“Housing Allocation”) to construct
the Minimum Improvements and proceed under the Original Agreement, and the Developer was
unsuccessful in its January 2023 bid for Housing Allocation through the Minnesota Housing
Finance Agency; and
WHEREAS, the Developer has requested an amendment to the Original Agreement to
(i) extend the date the Development Property may be conveyed to the Developer and (ii) extend
the dates that construction on the Minimum Improvements will start and end to provide the
Developer with additional opportunities to seek Housing Allocation and time to complete due
diligence on the financing for the Minimum Improvements; and
WHEREAS, there has been presented to the Board a form of First Amendment to Contract
for Private Development (the “First Amendment”) between the Authority and the Developer, which
sets forth the requested amendments to the Original Agreement; and
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NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The First Amendment presented to the Board and on file with the staff of the
Authority is hereby in all respects approved, subject to modifications that do not alter the substance
of the transaction and that are approved by the Chair and Executive Director; provided that
execution of such document by such officials shall be conclusive evidence of approval.
2.The Chair and Executive Director are hereby authorized to execute the First
Amendment on behalf of the Authority and to carry out the Authority’s obligations thereunder.
3.The Chair and the Executive Director are hereby further authorized to execute and
deliver any and all documents deemed necessary to carry out the intentions of the First
Amendment and this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 17th day of January, 2023.
Erin Vrieze Daniels, Acting Chair
ATTEST:
Gordon Hanson, Interim Secretary
RC123-371 (JAE)
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