November HRA AgendaR E G U LAR H O U S IN G AN D R E D E V E LO P ME N T AU TH O R ITY ME E TIN G
R IC H F IE L D MU N IC IPAL C E N TE R, C O U N C IL C H AMB E R S
N O VEMB E R 21, 2022
7:00 P M
C all to Order
Open F orum
E ach speaker is to keep their comment period to three minutes to allow sufficient time for others. C omments
are to be an opportunity to address the H R A . P lease refer to the H R A 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. C all into the open forum by dialing 1-415-655-0001 U se webinar access code: 2450 454 9348 and
password: 1234.
Approval of the Minutes
A pproval of the minutes of the: 1) Joint City Council and Housing and Redevelopment A uthority Work S ession of
October 17, 2022; and 2) Regular Housing and Redevelopment A uthority meeting of October 17, 2022.
AG E N D A APPR O VAL
1.A pproval of the A genda
R E S O L U T IO N S
2.C onsider a resolution authorizing the transfer of funds from the Lyndale Gateway / Interchange West, Urban
Village, and C ity B ella Tax Increment F inancing D istricts to the A ffordable Housing Trust F und and consideration
of priorities for the use of Trust F und resources for affordable housing developments.
S taff Report No. 33
3.C onsider a resolution adopting a S pending P lan for unobligated tax increment.
S taff Report No. 34
O T H E R B U S IN E S S
4.C onsideration of the approval of revisions to the Richfield Rediscovered L ot S ale P rogram Guidelines and the
Richfield Rediscovered C redit P rogram Guidelines.
S taff Report No. 35
H R A D IS C U S S IO N ITE MS
5.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
6.E xecutive D irector's Report
C LAIMS
7.Claims
8.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.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Joint HRA and City Council
Work Session
October 17, 2022
CALL TO ORDER
Chair Supple called the work session to order at 6:00 p.m. in the Bartholomew Room.
Mary Supple, Chair; Lee Ohnesorge; and Gordon Hanson
Maria Regan Gonzalez; and Erin Vreize Daniels
HRA Members
Present:
HRA Members
Absent:
Council Members
Present:
Council Members
Absent:
Staff Present:
Mary Supple; Sean Hayford Oleary; and Ben Whalen
Maria Regan Gonzalez, Mayor; Simon Trautmann
Julie Urban, Acting Executive HRA Director/Assistant Community
Development Director; Katie Rodriguez, City Manager; and Kari Sinning,
City Clerk
Chair Supple introduced the topic for discussion and turned it over to Acting Executive Director
Urban.
ITEM #1 DISCUSS OPPORTUNITIES TO SPEND POOLED TAX INCREMENT WITHIN THE
COMMUNITY
Acting Director Urban gave a presentation (available in the agenda) that overviewed the TIF
Management Plan, three pooling options, and the recommended next steps. She explained that
subsidies would not be available through any of these funds, but the department would look for other
sources to help with down payment and rent assistance.
Council Member Hayford Oleary asked for clarification of the breakdown of the amount of total
TIF funding. Acting Director Urban stated that 10 percent of the total TIF from all the districts would go
into the affordable housing trust fund and that the additional breakdowns are based upon what the
City has unencumbered until the end of this year and maxes out what is available. Council Member
Hayford Oleary asked how blighted a district could be. Acting Director Urban explained the test that
they do to classify a building as blighted for homes and commercial buildings are determined by an
outside consultant.
Joint HRA and City Council
Work Session Minutes -2-October 17, 2022
Council Member Whalen asked for clarification about the restrictions on rental and down
payment assistance. Acting Director Urban shared that it creates subsidized units instead of
emergency assistance. Council Member Whalen asked if we could address some of the other upfront
funding costs that would make higher rent costs. Acting Director Urban stated that could be one
option or it could be used for rental assistance directly, but it could not be a subsidy like we are used
to. Council Member Whalen shared general agreement with the proposed way to prioritize the funds
and commented on the need for deeper affordability.
Commissioner Hanson agreed with Council Member Whalen and wondered about the timeline
to adopt the plan. Acting Director Urban stated that it would be brought the HRA during the November
meeting and schedule a public hearing for December.
Council Member Whalen clarified the process that Council would be involved. Acting Director
Urban stated that the HRA would be approving individual expenditures that are a part of the plan.
Council Member Hayford Oleary commented on the possibility of projects that the spending
plan could be used on to foster future investment in the downtown area.
Chair Supple agreed with the plan and a good use of funds to ask Ehlers to come up with a
plan and commented on maintaining the affordability of commercial spaces. Acting Director Urban
mentioned the new Economic Development Manager that will be hired to help explore those
concerns. Chair Supple expressed the need to maintain balance between residential and commercial
opportunities. She agreed with the goals of the affordable housing trust fund plan and mentioned the
consideration to help make spaces more climate resilient.
Council Member Whalen asked if the spending plan would have the flexibility to do the energy
efficient upgrades. Acting Director Urban stated that it would have to be substantial rehabilitation or a
new construction. Council Member Whalen asked about the utilization of apartment rehab loans.
Acting Director Urban stated that we would probably have to reach out to the apartment places that
we identify that could use the rehab loans. Council Member Whalen asked if we could be more
proactive to meet the goals that we set. Acting Director Urban mentioned that the Community
Development Department staff is hopeful to be more proactive.
Commissioner Hanson asked if the Penn Ave corridor could be involved in the spending plan.
Acting Director Urban stated that it could if we would find a partner and it would be an increase of tax
base. Chair Supple asked if that would apply to the east side of 66th Street. Acting Director Urban said
that it could apply.
Acting Director Urban summarized the discussion of general agreement with the proposed
plans and overviewed the timeline as stated above. Chair Supple extended thanks to the department
and for the consultants.
ADJOURNMENT
The work session was adjourned by unanimous consent at 6:42 p.m.
Date Approved: November 21, 2022
Mary B. Supple
HRA Chair
Kari Sinning Julie Urban
City Clerk Acting Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
October 17, 2022
CALL TO ORDER
Chair Supple called the meeting to order at 7:00 p.m. in the Council Chambers.
HRA Members
Present:
Mary Supple, Chair; Erin Vrieze Daniels, Vice Chair; Lee Ohnesorge and
Gordon Hanson
HRA Members
Absent:
Maria Regan Gonzalez
Staff Present: Julie Urban, Acting Executive Director/Assistant Community Development
Director; and Kari Sinning, City Clerk
Others Present: Bev Adrian, President of the Woodlake Terrace Cooperative
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/Hanson to approve the minutes of the Regular Housing and
Redevelopment Authority Meeting of September 19, 2022.
Motion carried: 4-0
ITEM #1
APPROVAL OF THE AGENDA
M/Vrieze Daniels, S/Hanson to approve the agenda.
Motion carried: 4-0
HRA Meeting Minutes -2- October 17, 2022
ITEM #2
CONSENT CALENDAR
Acting Executive Director Urban presented the Consent Calendar:
A. Consideration to approve forgiveness of an Interfund Loan from the ILN to Cedar Point
Commons and authorize a transfer of funds from the ILN to Cedar Point Commons.
(Staff Report No. 30)
B. Consideration of the adoption of a resolution approving an Assignment and Assumption
Agreement (Amended and Restated Contract for Private Redevelopment) to Woodlake
Centre Owner, LLC, a Delaware limited liability company, an estoppel certificate, and an
investment letter assigning the Tax Increment Financing Note to Woodlake Health
Centre Campus TIF, LLC. (Staff Report No. 31)
HRA RESOLUTION NO. 1442
RESOLUTION APPROVING ASSIGNMENT AND ASSUMPTION
AGREEMENT (AMENDED AND RESTATED CONTRACT FOR
PRIVATE REDEVELOPMENT) AND OTHER DOCUMENTS IN
CONNECTION THEREWITH
M/Vrieze Daniels, S/Hanson to approve the Consent Calendar.
Motion Carried: 4-0
ITEM #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None.
ITEM #4
CONSIDERATION OF A RESOLUTION APPROVING AN AMENDMENT TO THE
GRANT AGREEMENT WITH WOODLAWN TERRACE COOPERATIVE,
INCREASING THE AMOUNT OF FUNDING PROVIDED FOR DEMOLITION AND
REHABILITATION WORK (STAFF REPORT NO. 32)
Acting Director Urban presented Staff Report No. 32.
Commissioner Vrieze Daniels asked if the sixth unit to be demolished would be replaced.
President Adrian stated that it would be replaced and that the board is developing a strategic plan
that could include more affordable housing and pointed out that they are private utilities that add to
the costs of the rehabilitation work.
Chair Supple asked if the funding would help with those improvements of their private
utilities. President Adrian stated that it would be a huge improvement to the property as most
things are over 50 years old.
Commissioner Hanson asked if there are plans to connect to City water. President Adrian
explained that they are on the process to get hooked up to the City water and sewer and have
received a grant from the State to help fund the project that should hopefully be started in the
HRA Meeting Minutes -3- October 17, 2022
spring of 2023. President Adrian expressed excitement for the progress that has been happening
and that the entire community has stepped up to invest in their neighborhood.
Chair Supple asked if the water from the well is potable. President Adrian explained that no
one drinks the water as it is high in iron and has an odor; the water was the biggest concern that
residents of Woodlawn Terrace have.
M/Vrieze Daniels, S/Ohnesorge to adopt the attached resolution approving an amendment
to the Grant Agreement with the Woodlawn Terrace Cooperative, increasing the funds for
demolition and rehabilitation work up to a total of $140,000, and authorizing the Chair and
Executive Director to execute an amendment to the Grant Agreement.
HRA RESOLUTION NO. 1443
RESOLUTION APPROVING AN AMENDMENT TO THE GRANT
AGREEMENT FOR THE WOODLAWN TERRACE
MANUFACTURED HOME PARK
Commissioner Vrieze Daniels appreciated the investment in the community while prices for
construction are high.
Motion Carried: 4-0
Chair Supple thanked staff and the cooperative for all the work they to do invest in the
community.
ITEM #5
HRA DISCUSSION ITEMS
Commissioner Hanson asked about the HUB redevelopment since the anchor store has
pulled out of the project. Acting Director Urban stated that the property owners have not been in
contact with the City but the property will most likely be developed in stages starting on the west
side of the property.
ITEM #6
EXECUTIVE DIRECTOR REPORT
Acting Director Urban did not have a report.
ITEM #7
CLAIMS
M/Vrieze Daniels, S/Hanson that the following claims be approved:
U.S. BANK 10/17/2022
Section 8 Checks: 134205 – 134277 $195,486.35
HRA Checks: 34259 - 34272 $80,140.42
TOTAL $275,626.77
Motion carried: 4-0
HRA Meeting Minutes -4- October 17, 2022
ITEM #8
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:16 p.m.
Date Approved: November 21, 2022
Mary B. Supple
HRA Chair
Kari Sinning Melissa Poehlman
City Clerk Executive Director
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #2.
S TAFF REPORT NO. 33
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
11/21/2022
RE P O RT P RE PA RE D B Y: J ulie Urban, A ssistant C ommunity D evelopment D irector
O THE R D E PA RTM E NT RE V IE W:
E X E C UTIV E D IRE C TO R RE V IE W: Melissa P oehlman, E xecutive D irector
11/16/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider a resolution authorizing the transfer of funds from the Lyndale Gateway / Interchange W est,
Urban Village, and City Bella Tax Increment Financing Districts to the Affordable Housing Trust Fund
and consideration of priorities for the use of Trust Fund resources for affordable housing
developments.
E X E C UT IV E S UM M ARY:
The City created the Affordable Housing Trust Fund (Trust Fund) in 2020 to construct, preserve and
rehabilitate affordable housing in the community. Since its creation, staff have been seeking revenue sources
for the Trust Fund. I n 2021, the State Legislature passed special legislation that allows the Housing and
Redevelopment Authority (HRA) to transfer pooled tax increment collected for housing purposes to its Trust
Fund. The Tax I ncrement Financing Management Plan (TI F Plan), prepared by the HRA's financial
consultants and presented to the HRA in September, identified pooled Tax I ncrement Financing (TI F)
available in three TI F Districts as eligible to be transferred to the Trust Fund under the special legislation.
These three Districts are Lyndale Gateway / I nterchange West, Urban Village, and City Bella. Staff has
designated $250,000 from each of these Districts for transfer to the Trust Fund.
The special legislation allows these funds to be used to make grants, loans, and loan guarantees for the
development, rehabilitation or financing of housing. The 2023 Trust Fund budget commits $200,000 of the
funds to Richfield Flats, an affordable apartment development proposed to be built at 7700 Pillsbury Avenue
South. Additional funds can be budgeted in future years for activities such as single-family
acquisition/rehabilitation through the land trust or other affordable apartment developments.
I n deciding whether or not to fund affordable apartment developments, the HRA may consider the following
priorities for the Trust Fund:
Housing with three and four bedroom units;
Housing with units affordable at 30% of the Area Median I ncome;
Housing with accessible units;
Housing with supportive services;
Housing with resident rental subsidies; and/or
The preservation and rehabilitation of naturally occurring affordable housing (NOA H);
Projects that also improve energy-efficiency and/or use Trust Fund money to leverage other
funding will be strongly considered.
Trust Fund awards will only be made to projects that exceed the minimum requirements of the City’s
I nclusionary Housing Policy or the statutory requirements for a Housing TI F District.
RE C O M M E ND E D AC T I O N:
By motion:
1. Adopt a resolution authorizing the transfer of $750,000 from the Lyndale Gateway / Interchange
West, Urban Village and City Bella Tax Increment Financing Districts to the Affordable Housing Trust
Fund.
2. Adopt priorities for the use of Trust Fund resources when assisting affordable housing
developments.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The City Council created the Trust Fund in May of 2020. The Trust Fund is a tool that allows the
City to create, preserve and rehabilitate affordable housing.
Since the Trust Fund's creation, staff have been exploring various revenue sources. Special
legislation was approved by the State Legislature in J une of 2021 that allows the HRA to transfer
pooled tax increment collected for housing purposes into the Trust Fund for the development of
affordable housing.
I n May of 2022, the City Council and HRA authorized the collection of 10% of TI F to be pooled
for affordable housing purposes. Those pooled funds may be transferred to the Trust Fund.
I n September of 2022, Ehler's, the City's financial consultants, presented the TI F Management
Plan to the HRA, which included several recommendations for using the HRA's available pooled
TI F. One of those recommendations was to transfer funds to the Trust Fund under the
authorization of the special legislation.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The City's Trust Fund provides resources to construct, preserve, and rehabilitate affordable
housing in the community.
A copy of the priorities for use of the Trust Fund to fund affordable housing developments,
in the form that will be shared with developers, is attached to the staff report.
C.C R IT IC AL T IMIN G IS S U E S:
The special legislation allows transfers of the HRA's pooled TI F through December 31, 2026.
I f awarded federal tax credits, the $200,000 committed to Richfield Flats will be needed at the start
of construction in 2023.
D.F IN AN C IAL IMPAC T:
$250,000 is available in each of the three TI F Districts for transfer to the Trust Fund.
E.L E GAL C ON S ID E R AT ION:
Individual funds will be established within the Trust Fund to track revenues and
expenditures easily to meet the statutory reporting requirements relating to T IF.
Special legislation allows pooled T IF transferred to the Trust Fund to be used to make
grants, loans, and loan guarantees for the development, rehabilitation, or financing of
housing. T he funds cannot be used for rental or down payment assistance.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Decide not to transfer funds to the City's Trust Fund.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
Trust F und P riorities B ackup Material
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. _______
TRANSFERRING POOLED TAX INCREMENT FROM TAX INCREMENT
FINANCING DISTRICTS WITHIN THE CITY OF RICHFIELD FOR
AFFORDABLE HOUSING PURPOSES
WHEREAS, the Legislature of the State of Minnesota passed a special law authorizing
the City of Richfield, Minnesota (the “City”) or the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota (the “Authority”) to transfer tax increment accumulated for
housing development purposes under Minnesota Statutes, Section 469.1763, subdivision 2(b) or
(d) to the housing trust fund established by the City, all as provided in Laws of Minnesota 2021,
First Special Session, Chapter 14, Article 9, Section 5 (the “Special Law”), in particular
subdivision 1(b) thereof; and
WHEREAS, pursuant to the Special Law, the authority to make such transfers shall expire
on December 31, 2026; and
WHEREAS, the Authority has proposed to transfer pooled tax increment from the following
tax increment financing districts within the Richfield Redevelopment Project (collectively, the “TIF
Districts”) to the City for purposes of funding the Affordable Housing Trust Fund:
(a) from the Interchange West and Lyndale Gateway Tax Increment Financing District,
the amount of $250,000;
(b) from the Urban Village Tax Increment Financing District, the amount of $250,000;
and
(c) from the City Bella Tax Increment Financing District, the amount of $250,000; and
WHEREAS, the pooled tax increment transferred to the Affordable Housing Trust Fund
may be returned to the appropriate Authority tax increment fund if the funds are not spent on or
before December 31, 2026; and
WHEREAS, the City Council will consider a resolution accepting the transfer of the pooled
tax increment on or about December 13, 2022; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota that:
1. The Authority hereby approves the transfer of pooled tax increment from the TIF
Districts as set forth herein to fund the City’s Affordable Housing Trust Fund.
2. The Authority may amend this resolution to provide for additional transfers of
pooled tax increment to fund the Affordable Housing Trust Fund.
3. The tax increment transferred to the Affordable Housing Trust Fund must be
accounted for separately and may be used only for the following purposes: making grants, loans,
and loan guarantees for development, rehabilitation or financing of housing or providing matches
for other federal, state, or private resources for housing projects.
4.This resolution is effective upon approval by the City Council of the resolution
accepting the transfer of the pooled tax increment.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 21st day of November, 2022.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
Adopted: 12/13/22
Richfield Affordable Housing Trust Fund
Priorities and Procedures
The City of Richfield established an Affordable Housing Trust Fund in 2020 to preserve and
create affordable housing opportunities for households with the lowest incomes. Funds are
available through the City’s Trust Fund on a rolling basis to assist developers in the construction
and rehabilitation of affordable housing.
Priorities
Multi-family projects that address the following city priorities will be considered for funding:
Housing with three and four bedroom units
Housing with units affordable at 30% of the Area Median Income
Housing with accessible units
Housing with supportive services
Housing with resident rental subsidies
Preservation and rehabilitation of naturally occurring affordable housing (NOAH)
Projects that also improve energy-efficiency and/or use Trust Fund money to leverage other
funding will be strongly considered.
Trust Fund awards are made only to projects that exceed the minimum requirements of the
City’s Inclusionary Housing Policy and the statutory requirements for a Housing Tax Increment
Financing (TIF) District, if applicable.
Forms of Assistance and Eligible Activities
Funding may be provided in the form of grants, loans, and/or loan guarantees for the
development, rehabilitation or financing of housing and/or to serve as a match for other funds
from federal, state, or private resources.
Funds are not available for rental assistance.
Process
Projects seeking a Trust Fund award must submit an Application for Financial Assistance, or if
also seeking TIF, complete the Trust Fund section on the TIF Application. A $500 application fee
is required at the time of the application submittal.
The Trust Fund is administered by the City’s Housing and Redevelopment Authority (HRA). HRA
staff, along with the City’s financial consultants, will review the application for consistency with
the City’s priorities, viability of the project, demonstrated need for funding, and reasonableness
of the request. There is no minimum or maximum award amount; however, the amount may be
Adopted: 12/13/22
limited by the amount of funds available. Projects will be required to cover the costs of the
City’s financial and legal consultants, as well as up to $2,000 in staff costs.
Affordability Term
Projects receiving an award from the Trust Fund must agree to a minimum of 25 years of
affordability.
Compliance
A Declaration of Restrictive Covenants will be filed against the property to ensure ongoing
compliance. Applicants will be required to demonstrate that they have the capacity to conduct
income compliance and collect and maintain appropriate documentation. A certificate of
compliance must be submitted on an annual basis. Property managers who are unfamiliar with
income compliance will be required to take appropriate training.
Section 8
During the period of affordability, Trust Fund award recipients shall not adopt any policies
specifically prohibiting or excluding the renting of units to tenants holding rental vouchers or
similar forms of rental assistance.
This policy is intended to set forth the general priorities and guidelines regarding the use of the
Affordable Housing Trust Fund. The City Council and HRA may modify the terms at any time.
Questions: Contact Julie Urban, Assistant Community Development Director, at 612-861-9777
or jurban@richfieldmn.gov.
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #3.
S TAFF REPORT NO. 34
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
11/21/2022
RE P O RT P RE PA RE D B Y: Melissa P oehlman, E xecutive D irector
O THE R D E PA RTM E NT RE V IE W:
E X E C UTIV E D IRE C TO R RE V IE W: Melissa P oehlman, E xecutive D irector
11/21/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider a resolution adopting a Spending Plan for unobligated tax increment.
E X E C UT IV E S UM M ARY:
I n 2022, the Housing and Redevelopment Authority (HRA) approved the preparation of a Tax I ncrement
Management Review & Analysis report by HRA financial consultant Ehlers. This analysis identified a
significant amount of pooled tax increment that is available to invest in the community in the next few
years. T here are three separate statutory authorities under which the money can be spent; all with
different timelines and authorized uses. T hese options are described in the Policies Section below. A
preliminary plan to maximize the effectiveness of these monies was introduced to the HRA on
September 19 and presented jointly to the City Council and HRA at a work session on October 17.
As previously presented in September and discussed in October, staff is recommending that the
H R A adopt the attached Spending Plan (Plan) for unobligated tax increment from the Lyndale
Gateway / Interchange West, Urban Village, and City Bella Tax Increment Financing (T IF) Districts.
Per 2021 legislative authority, this unobligated tax increment may be spent on projects that spur
development and create or retain jobs (including construction jobs). Available increment may be
used to provide improvements, loans, interest rate subsidies, or assistance in any form to private
development consisting of the construction or substantial rehabilitation of buildings and ancillary
facilities, which will create or retain jobs in the state. T he attached Plan stipulates that preference for
financing assistance shall be based on goals identified by the Comprehensive Plan and the
following priorities identified by the City's Strategic Plan:
A vibrant downtown that includes both new housing and business;
I ncreased tax base through redevelopment that advances the Comprehensive Plan;
Maintaining Richfield as an affordable place to live; and
Climate resilience through the support of projects that advance the Climate Action Plan and
sustainability goals.
T he attached Plan must be adopted by both the H R A and the City Council; a public hearing at the
City Council is scheduled for December 13.
RE C O M M E ND E D AC T I O N:
By motion: Approve the attached Resolution and Spending Plan for unobligated tax increment.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
On September 19, 2002, Senior Municipal Advisor Rebecca Kurtz presented the Tax I ncrement
Management Review and Analysis to the HRA. Approximately $10 million in pooled tax increment
was identified and a preliminary recommendation for the allocation of these funds was introduced.
On October 11, 2022, staff discussed opportunities to spend this pooled increment with the HRA
and City Council.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Minnesota State Statute 469.1763 Subd. 2(a) allows the HRA to retain a maximum of 25% of its
annual tax increment from its redevelopment TI F Districts and use it for other redevelopment
activities outside of the District's boundaries. This 25% maximum includes the amount retained for
administration.
I n 2021 the City obtained special legislation allowing the City and HRA to transfer 10% of
increment pooled for housing to an affordable housing trust fund. I n May of 2022, policymakers
modified the TI F plans of the Lyndale Gateway / I nterchange West, Urban Village, and City Bella
TI F Districts to allow for this transfer.
I n 2021 the State Legislature provided temporary authority to use unobligated TI F from existing
TI F Districts to help stimulate private development that would not otherwise occur without
assistance prior to December 31, 2025.
C.C R IT IC AL T IMIN G IS S U E S:
Authority granted by the temporary legislation expires December 31, 2025. Only increment that is
not obligated as of December 31, 2022 (or within the following six months) may be spent. A
Spending Plan for money to be used under this authority must be adopted by December 31,
2022.
I f there is money that is not spent prior to December 31, 2025, these funds could be transferred to
the Affordable Housing Trust Fund or spent under regular pooling rules per Statute.
Special legislation allows the transfer of pooled TI F to the Affordable Housing Trust Fund (A HTF)
through December 31, 2026. There is no deadline to spend monies once in the A HTF.
Regular pooling must be spent prior to the decertification of the TI F District from which it is
generated. The TI F Districts in question expire in 2025 (Lyndale Gateway / I nterchange West &
Urban Village) and 2030 (City Bella).
D.F IN AN C IAL IMPAC T:
Approximately $10 million in pooled increment is anticipated over the next 8 years.
Some of these money have been committed to current projects (e.g. Enclave, W oodlawn
Terrace).
An additional item before the HRA will request authorization to transfer $750,000 to the Affordable
Housing Trust Fund now to cover anticipated, near-term projects.
E.L E GAL C ON S ID E R AT ION:
The attached resolution was prepared by the HRA Attorney.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve the attached Spending Plan and resolution.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
S pending P lan E xhibit
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. _______
APPROVING A SPENDING PLAN FOR CERTAIN TAX INCREMENT
FINANCING DISTRICTS LOCATED IN THE CITY OF RICHFIELD
WHEREAS, the City of Richfield, Minnesota (the “City”) and the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota (the “Authority”) have
previously established the following tax increment financing districts located within the Richfield
Redevelopment Project in the City and adopted tax increment financing plans therefor, pursuant
to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota
Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”): the Interchange
West and Lyndale Gateway Tax Increment Financing District, the Urban Village Tax Increment
Financing District, and the City Bella Tax Increment Financing District (collectively, the “TIF
Districts”); and
WHEREAS, Section 469.176, subdivision 4n of the TIF Act (the “Temporary TIF
Authority Act”) authorizes the Authority to spend available tax increment from any existing tax
increment financing district, notwithstanding any other law to the contrary, to provide
improvements, loans, interest rate subsidies, or assistance in any form to private development
consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if the
following conditions exist:
(1) Such assistance will create or retain jobs in the State of Minnesota,
including construction jobs;
(2) Construction commences before December 31, 2025;
(3) The construction would not have commenced before the dates specified
above without the assistance;
(4) Tax increments under the spending plan are spent by
December 31, 2025; and
(5) The City Council of the City approves a written spending plan (after a duly
noticed public hearing) that specifically authorizes the Authority to take such actions; and
WHEREAS, the Authority has proposed to apply available tax increments from the TIF
Districts for various uses in accordance with the Temporary TIF Authority Act, and to that end
has caused to be prepared a spending plan for the TIF Districts (the “Spending Plan”); and
WHEREAS, the assistance authorized under the Spending Plan expressly includes but
is not limited to assistance for private development that provides for job creation or development
of housing, including but not limited to market rate and affordable multifamily, townhomes, and
single-family units; and
WHEREAS, assistance authorized and provided under the Spending Plan may
constitute a business subsidy as described in Minnesota Statutes, Sections 116J.993 to
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116J.995, as amended (the “Business Subsidy Act”), which will require that the Board conduct a
public hearing prior to providing such financial assistance to a developer; and
WHEREAS, on December 13, 2022, the City Council of the City will conduct a public
hearing regarding the Spending Plan in accordance with the Temporary TIF Authority Act and
consider a resolution approving the Spending Plan; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota that:
1. The Spending Plan is hereby approved in substantially the form on file in City Hall.
2. The Authority makes all the findings set forth in the Spending Plan, which are
incorporated herein by reference.
3. Authority staff and consultants are hereby authorized to take actions necessary to
carry out the terms of the Spending Plan.
4. The Board shall conduct a public hearing prior to providing financial assistance to
a developer or redeveloper under the Spending Plan if in the opinion of counsel to the Authority
such assistance constitutes a business subsidy under the Business Subsidy Act.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 21st day of November, 2022.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
RC125-392 (JAE)
838636v1
HRA Consideration: November 21, 2022
City Public Hearing: December 13, 2022
Richfield Housing and
Redevelopment Authority
City of Richfield,
Hennepin County, Minnesota
Spending Plan
Lyndale Gateway / Interchange West TIF District
Urban Village TIF District
City Bella TIF District
Spending Plan for Lyndale Gateway / Interchange West,
Urban Village and City Bella Tax Increment Financing
Districts
PURPOSE
The Richfield Housing and Redevelopment Authority (the “Authority”) administers the Tax
Increment Financing Districts listed above (the “TIF Districts”) in the City of Richfield,
Minnesota (the “City”), and proposes to adopt a Spending Plan for the TIF Districts in
accordance with Minnesota Statutes, Section 469.176 Subd. 4n (the “Act”).
The purpose of the Spending Plan is to develop or redevelop sites, lands or areas within
the City in conformity with the City’s Comprehensive Plan or other City plans or objectives
by using available tax increments from the TIF Districts to provide improvements, loans,
interest rate subsidies, or assistance in any form to private development consisting of the
construction or substantial rehabilitation of buildings and ancillary facilities, which will
create or retain jobs in this state, including construction jobs.
UNOBLIGATED TIF FUNDS
The HRA has identified a total of $6,346,000 in unobligated funds on hand within the TIF
Districts (“Unobligated Tax Increments”):
▪ $771,000 of unobligated funds of the Urban Village Tax Increment
Financing District;
▪ $5,121,000 of unobligated funds of the Lyndale Gateway / Interchange
West Tax Increment Financing District; and
▪ $454,000 of unobligated funds of the City Bella Tax Increment Financing
District.
PLAN
The Authority is authorized as follows:
(a) To use Unobligated Tax Increments from the TIF Districts to provide
improvements, loans, interest rate subsidies, or assistance in any form to private
development consisting of the construction or substantial rehabilitation of buildings
and ancillary facilities (the "Projects") in financing assistance to further the goals
in the City’s Comprehensive Plan or other City plans or objectives, if doing so will
create or retain jobs in the state, including construction jobs.
Preference for financing assistance shall be based on the City of Richfield
Strategic Plan FY 2023-2026, adopted in July 2022. These priorities include: (1) a
vibrant downtown that includes both new housing and business; (2) increased tax
base through redevelopment that advances the Comprehensive Plan; (3)
maintaining Richfield as an affordable place to live; (4) climate resilience through
the support of projects that advance the Climate Action Plan and sustainability
goals; and (5) additional goals as identified by the Comprehensive Plan or other
City plans or objectives.
The Projects shall commence before December 31, 2025 (unless a later
commencement date is authorized by law) and shall constitute Projects that would
not commence by such date without the assistance provided pursuant to this
Spending Plan.
(b) To amend the budget set forth in the Tax Increment Financing Plan s for the
TIF Districts as necessary to provide for the assistance authorized by this
Spending Plan.
(c) To take any other action necessary and authorized under the Act in
connection with the construction or substantial rehabilitation of facilities of the type
described in clause (a) above.
The assistance provided pursuant to this Plan shall be subject to Minnesota Statutes,
Sections 116J.993 to 116J.995 (the “Business Subsidy Law”), if applicable, and shall be
subject to the City’s Business Subsidy Policy.
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #4.
S TAFF REPORT NO. 35
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
11/21/2022
RE P O RT P RE PA RE D B Y: C eleste McD ermott, Housing S pecialist
O THE R D E PA RTM E NT RE V IE W:
E X E C UTIV E D IRE C TO R RE V IE W: Melissa P oehlman, E xecutive D irector
11/16/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the approval of revisions to the Richfield Rediscovered Lot Sale Program Guidelines
and the Richfield Rediscovered Credit Program Guidelines.
E X E C UT IV E S UM M ARY:
The Richfield Rediscovered Lot Sale Program (Lot Sale Program) sells lots to builder / buyer teams for the
development of newly constructed homes. The Richfield Rediscovered Credit Program (Credit Program)
contributes $50,000 towards the private construction of newly constructed homes. The objective of the Lot
Sale Program and the Credit Program is to replace smaller, substandard and blighted homes in Richfield with
larger market rate homes that help to diversify the City's housing stock.
I n J une, the Housing and Redevelopment Authority (HRA) reviewed the Lot Sale Program and Credit
Program (Programs) and determined that it was appropriate to continue the Programs with certain
adjustments and asked that staff prepare an amendment to the Guidelines of the Programs that promote
current City housing priorities.
To further facilitate Richfield's housing goals of diversifying the housing stock within the City and encouraging
energy efficiency and accessibility, the following changes to the Guidelines of the Programs are
recommended:
Require that all homes built within the Programs include some minimum standards for accessibility.
Require that builders utilize deconstruction rather than demolition in cases where a substandard home
needs to be removed before construction can begin.
I n order to be eligible for either of the Programs, all homes must inc lude at least one of the following
features:
An Accessory Dwelling Unit;
Full accessibility per the standards of the Minnesota Accessibility Code Section 1002;
Sustainability measures that meet the Green C redit standards and inc lude either solar panels,
geothermal heating, or other additional sustainability feature as approved by the HRA;
Be an owner-occupied duplex or;
Another unique design that furthers HRA housing goals, as approved by the HRA.
The revision also includes some minor administrative updates relating to the escrow and utility requirements.
RE C O M M E ND E D AC T I O N:
By motion: Approve the recommended revisions to the Richfield Rediscovered Lot
Sale Program Guidelines and to the Richfield Rediscovered Credit Program Guidelines.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The Programs have been successful for replacing smaller, substandard housing with larger,
higher-valued homes. Since the Programs inception in 1990, 151 new, market-value homes have
been constructed.
In 2021, the Green Credit Standards were updated based on feedback from the City's
Sustainability Specialist and City Forester to ensure that projects are well-rounded.
For the most recent lot listed through the Richfield Rediscovered Lot Sale Program in 2021,
applicants were required to submit a plan including an Accessory Dwelling Unit (ADU), and in
2022 the home was completed including an ADU.
On June 21, 2022, the HRA discussed the Programs and determined that it would like to
continue the Programs with the added conditions that housing goals such as building ADU's duplexes, and highly energy-efficient homes be furthered through the Programs.
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
The HRA is responsible for the administration of the Programs and the successful
replacement of over 130 substandard homes.
The current policy objectives of the Programs are:
Remove substandard, functionally obsolete housing and eliminate its blighting influence;
Provide new, higher valued housing; and
Alleviate shortage of housing choices for families.
The proposed revisions to the Guidelines' policy objectives require applicants to include one of
five features: full accessibility, high energy efficiency, duplex, ADU, or an additional unique
feature as approved by the HRA.
The existing policy offers a financial incentive for adding energy efficiency in addition to the
newly-required feature.
The revision requires some minimum accessibility features in all homes (e.g., wider doorways,
accessible light switches and door knobs, grab-bar ready bathrooms).
C.CRITICAL TIMING ISSUES:
There are two HRA-owned lots that will be listed through the Richfield Rediscovered Lot Sale
Program next year, one of which staff plans to market for a duplex.
D.FINANCIAL IMPACT:
$220,000 has been budgeted for the Programs in 2022 and $208,000 in 2023.
Design and construction of ADUs, duplexes, sustainable, and accessible homes can be cost-
prohibitive, and adjustments to the lot price may be offered to developments exceeding the
minimum requirements.
E.LEGAL CONSIDERATION:
The HRA Attorney has reviewed the Guidelines of the Programs.
ALTERNATIVE RECOMMENDATION(S):
The HRA may choose not to approve the revisions to the Guidelines.
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ATTACHMENTS:
Description Type
RR Lot Sale Guidelines Update Backup Material
RR Credit Guidelines Update Backup Material
Green Credit Standards Backup Material
RICHFIELD REDISCOVERED
PROGRAM GUIDELINES
LOT SALE PROGRAM
REVISED: June 21, 2021November, 2022
2
PROGRAM OBJECTIVES ............................................................................................................................ 3
DEFINITIONS ............................................................................................................................................... 3
PROGRAM BASICS ..................................................................................................................................... 4
APPLICATION REQUIREMENTS ................................................................................................................ 4
ADDITIONAL REQUIREMENTS .................................................................................................................. 5
HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS .............................................................. 6
New House Standards ............................................................................................................................ 6
Site Standards ....................................................................................................................................... 76
Construction Requirements .................................................................................................................. 7
General Standards ................................................................................................................................ 87
Green Community Concepts ............................................................................................................. 108
CITY REVIEW PROCEDURE ................................................................................................................... 109
LOT SALE TO BUILDER/BUYER .......................................................................................................... 1110
PROGRAM MARKETING ....................................................................................................................... 1210
DATA PRIVACY ..................................................................................................................................... 1211
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This document has been developed as a guidance tool for program administration. It should not be
interpreted as constituting any contractual agreement or liability by the City or Housing and
Redevelopment Authority (HRA). The HRA may modify or divert from the guidelines where it deems
appropriate.
I. Program Objectives
1. To remove substandard, functionally obsolete housing on scattered sites throughout the City
and replace with new, higher-valued housing.
2. To eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods.
3. To alleviate the shortage of housing choices for families.
4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes
designed for families.
5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand fam ily
opportunities or to serve elderly residentsaccessory dwelling units, sustainably built homes,
owner-occupied duplexes, and accessible homes..
These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to
Builder/Buyer teams for the development of newly constructed homes.
II. Definitions
Accessory Dwelling Unit: A dwelling unit that is located on the same lot as a principal residential
structure to which it is accessory, and that is subordinate in area to the principal dwelling. These may
be attached to either the primary home or the garage, but cannot be freestanding and must meet all
applicable zoning code requirements.
Applicant: An individual who submits an application for a Richfield Rediscovered lot. The Applicant may
be a Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the
Applicant is the Buyer, the Applicant must submit a signed contract between the Builder and the Buyer to
build a home on the lot identified in the application.
Buyer: An individual(s) who will build, own and occupy a new housing unit in Richfield.
The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the
Builder on a Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal
entities. A speculative project by a Buyer may be considered if all other program requirements can be
met. However, neither the Buyer, the Buyer’s Builder or Builder’s subcontractors, or the Builder’s realty
agents may occupy or purchase the property.
Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the
foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC sy stems or interior
carpentry.
A Buyer, and all members of his/her household, is limited to building a home through the program no
more than once every seven years.
Builder: Licensed Contractor who has signed a contract with the Buyer to build a home on the lot
identified in the application.
Contract for Private Development: A contract between the HRA and the Builder or Buyer that establishes
the conditions under which the lot will be sold and the proposed house will be developed.
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Deconstruction: the process of carefully removing components of the home so the materials can be
recycled, repurposed, or reused instead of being sent to a landfill. Once all materials that can be salvaged
are removed, the remainder of the foundation will be demolished. Grants may be available through
Hennepin County to help offset the costs.
Duplex- A residential building used for occupancy by two (2) families living independently of each other,
where both units are situated on the same parcel of land. At least one unit mus t be owner-occupied in
order to be eligible for the Richfield Rediscovered program.
Green Community Concepts Plan: A written plan indicating how the proposed development will
incorporate green building features and concepts. Priority will be given to pr ojects that incorporate green
building features.
HRA: Housing and Redevelopment Authority in and for the City of Richfield.
Lot List: A listing of available lots for sale. Information regarding the lot location, size and sale price is
provided.
III. Program Basics
1. HRA publishes a list of available vacant lots for purchase including sale price and
development criteria.
2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and
program requirements and makes an offer to purchase.
3. HRA may issue a Request for Proposals for a specific lot(s) with a specific submittal
deadline. HRA staff review all Proposals submitted by the deadline for consistency with
development criteria and program requirements. The Proposal that best meets t he criteria
and requirements is selected to develop the lot.
4. HRA approves lot sale.
5. Lot is sold to Builder or Buyer.
6. Builder constructs new home.
7. Projects must be completed within one year of HRA approval of the project.
IV. Application Requirements
The following must be submitted for application to the program:
1. $550 application fee
An application fee must be paid at the time of application. This fee is non -refundable and
is not part of the lot price.
2. Application Form
3. Floor plans
The layout of all levels, including basement and unfinished space, must be provided.
4. Elevations
Elevations of all four sides of the house, including view of garage shall be provided.
Colored renderings may also be required.
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5. Site plan
The site plan shall indicate the location of the new house, walkways and garage.
6. Landscaping plan
A landscaping plan must indicate the location and type of trees, shrubbery, flowers and
landscaping materials (e.g. rocks, mulch) and any existing trees to be preserved.
7. Detail of construction materials to be used on the project.
8. Green Community Concepts Plan
The plan should indicate what Green Community Concepts will be incorporated into the
project.
9. Construction timeline
Construction must be completed with one year of the purchase of the property.
10. Signed contract with Builder
11. Purchase agreement
If the Builder plans to purchase the lot, t he application must include a valid purchase
agreement between the Buyer and the Builder for the lot to be developed.
12. Financial capability statement
A statement from a financial institution indicating willingness to provide sufficient
construction capital to complete the project must be provided.
13. Builder References
a. Five previous customers
b. Three major suppliers, one being the construction supplier
c. Building inspectors from two cities where the Builder has constructed new housing
within the past three years
14. Proof of Builder’s Comprehensive General Liability with Property Damage Protection .
15. Proof of sufficient worker’s compensation insurance coverage by the Builder .
16. Written warranty program
To be provided to the Buyer, which guarantees at a minimum, warranted repairs as
required by Minnesota State Statute.
V. Additional Program Requirements
1. The Applicant is expected to meet with an architectural/design consultant prior to submitting an
application. A two-hour consultation is available through the HRA at a cost of $25 50.00 to the
applicant. See the City’s website (www.richfieldmn.gov ) for more information. This requirement
may be waived if the applicant is using an architect for the project.
2. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List.
The HRA will not accept offers for less than the established sale price. Home design features
may be taken into account when establishing the final lot price.
3. A Contract for Private Development is signed by the HRA and the Builder or the Buyer. The
Contract is a standard form which includes conditions for acquisition and development of the
property. The Contract will establish a minimum required end -value for the property based on
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construction estimates provided by the applicant. The Builder or Buyer will be expected to agree
to the terms of the Contract before the application can be scheduled on the HRA agenda.
4. The lot can be sold to either the Builder or the Buyer. If the lot is sold to the Builder, the Builder
will pay cash for the lot at closing and submit a L etter of Credit or cash escrow for $10,000. The
Letter of Credit must be from a financial institution incorporated in the Twin Cities metropolitan
area. The cash escrow will be held in a non-interest bearing account. The Letter of Credit or
cash escrow will be released once the construction and landscape work are completed and a final
Certificate of Occupancy is issued.
5. If the lot is sold to the Builder and the Builder fails to complete construction as approved by the
HRA, the Letter of Credit or cash escrow may be drawn upon by the HRA. In addition, the
Contract for Private Development will contain a reverter provision, which will enable the HRA to
reclaim ownership of the property in the event of a default in the Contract. In the event that the
Builder fails to complete construction, the HRA may exercise its rights under the reverter
provision, as well as draw upon the Letter of Credit or cash escrow.
6. If the lot is sold to the Buyer, the Buyer will pay cash for the lot at closing and and submit a cash
escrow fora $10,000 mortgage in favor of the HRA will be filed on the property. The mortgage will
be in first position. The HRA may consider subordinating its interest in appropriate cases.The
cash escrow will be released once the construction and la ndscape work are completed and a final
Certificate of Occupancy is issued.
7. If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the
HRA, the HRA may exercise its rights provided in the mortgage.
8. A Buyer, and all members of his/her household, is limited to purchasing no more than one lot
every seven years.
VI. House Design and Site Development Requirements
The development of all sites shall meet the development criteria listed below, as reviewed and approved
by the HRA. To maximize the development of a given lot, the HRA reserves the right to explore all
development options without obligating the HRA to support any specific proposal, idea or solicitation.
Housing design is a critical element of the program. Siding materials, exterior façade presentation, roof,
window, siding and building line variability, finished landscape, interior space function and use are all
important issues of design to the HRA. The design requirements were created to ensure that the homes
built on the HRA-sold lots blend in with the surrounding neighborhood and respond to the specific
concerns of the HRA.
All new houses built under the Richfield Rediscovered Program must meet the requirements of the City’s
Zoning Code and additional criteria, as listed in this document.
A. New House Standards
1. New dwelling must be owner-occupied.
2. Three finished bedrooms are required, at a minimum.
3. Two finished bathrooms are required, at a minimum.
4. Two-car garage is required, at a minimum.
5. A full basement is required, unless the selected design results in a split-level or a garden-level
type of basement. In the case of an “accessible” house, a basement may be omitted if it would
otherwise prohibit accessible design elements.
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6. Must incorporate additional accessibility features as outlined in the Program Guidelines.
5.7. Home must feature either an accessory dwelling unit, green design, duplex, accessible design,
or other unique feature that furthers HRA housing goals as approved by the HRA.
B. Site Standards
1. After construction, the site must be fully landscaped, including plantings around the foundation .
The entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land
forms and plant materials shall be used to define the site and ble nd neatly with adjoining
properties. Specific lot line blending requirements may be required, as appropriate, for specific
sites.
The applicant must meet the “Landscaping and Screening Requirements” in the City’s Zoning
Code under Section 544.03, Subd. 4, General landscaping requirements and Subd. 5,
Residential sites. The code is available on the City’s website: www.richfieldmn.gov Additionally,
one approved landscaping feature will be required in both the fr ont yard and back yard.
Examples of acceptable landscaping features are: native plantings, pollinator gardens, and food
gardens. The square footage of the landscaping feature must be reasonable in relation to lot
size. SSOM compost will be required for all installations.
2. To the greatest extent possible, existing trees should be preserved. Any trees removed must be
replaced (they do not have to be the same species or in the same location) and should be labeled
on the required landscape plan. A lot review will be conducted by City staff to determine the
health of existing trees as well as ideal placement of new trees to increase natural cooling
efficiency. New trees must be species from the Forestry Department’s approved list. A total of
three trees will be required on the lot, including existing trees that can be preserved. A boulevard
tree must be planted if there is not an existing one on the lot.
Unless otherwise specified by the Public Works Director, all tree species and their cultivars and
varieties planted on the boulevard shall conform to the American Association of Nurserymen
Standards and be at least 1 ½ to 2 inches (1.5 -2”) in diameter, six inches (6”) above ground level,
and at least nine feet (9’) in height when planted. The crown shall be in g ood balance with the
trunk.
3. Utility meters shall be screened from street view and locations must be specified on plans.
4. Site drainage should be accommodated on the site so that water is directed away from the new
home and the neighboring properties. All downspouts must drain into the grass, a garden, or a
rainwater harvesting system. Neighboring properties must not be disturbed by the creation of
drainage swales. Specific storm water management requirements may be required, as
appropriate, including the addition of gutters or on-site management for specific sites.
Construction and the finished structure must not have a detrimental impact on storm water
drainage patterns in the neighborhood.
5. All air conditioning units must be located in the rear yard of the house, or as approved by the
HRA.
C. Construction Requirements
1. If demolition of an existing home is necessary, the builder should utilize deconstruction. If not
feasible, an exemption may be requested from HRA staff.
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1.2. Existing trees identified on the landscape plan as being preserved, must be protected during
construction. A tree wrap with board reinforcements shall be used on trees directly adjacent to
active grading and construction areas. Damaged or destroyed trees must be replaced.
2.3. The construction site, neighboring properties and adjacent public streets shall be kept free of
construction debris at all times.
3.4. No construction workers, construction equipment or construction material shall encroach upon
neighboring properties.
4.5. The property shall have a new sanitary service line installed to the City sanitary sewer main per
city standards consisting of schedule 40 PVC or equivalent. If there is an existing 6" sewer stub
at the property line, it must be fully lined with an approved CIPP product of the same sewer size
4" schedule 40 PVC or equivalent to the City’s sanitary main, and it must include a "donut" at the
end with cement.
The line must be televised after installation to ensure the line meets city standards following:
1.There are no obstructions in the line.
2.The PVC liner is not protruding into the City’s sanitary sewer main line.
D. General Standards
1.The value of the new home must meet or exceed the minimum value specified in the Contract for
Private Redevelopment.
2.All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new
construction and the design must include one of the following features:
a.Accessory Dwelling Unit
b.Meet the attached “Green Credit Standards for Richfield Rediscovered”. and include
either solar panels, geothermal heating or other sustainable feature as approved by the
HRA.
c.Be an owner-occupied duplex
d.Fully accessible per the criteria outlined in the Minnesota Accessibility Code Section
1002: Accessible Units
2.e. Other unique design that furthers HRA housing goals, as approved by the HRA
3.Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable.
Brick, aluminum, vinyl stucco and fiber cement siding are preferred. Natural cedar lap is
acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are
prohibited. Roof valleys must have metal valleys and not be woven.
4.Unit height and mass of the new house shall be compatible with the scale of the surrounding
homes in the neighborhood.
5.Plans must present a balanced and pleasing distribution of wall, door and window areas from all
views.
6.The dominance of the garage door must be minimized through placement, architectural detail,
door design and utilization and design of windows. Garages, where the garage door faces the
street, shall not be located closer to the front lot line than the foremost facade of the principal
building facing the front property line. Garage sidewalls that face the street should appear to
contain habitable space. This can be accomplished by incorporating windows and other design
elements into the garage wall that are in character with the remainder of the dwelling. For lots
that have alley access, the garage should be oriented to access the alley.
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7. At minimum, home design must meet the following standards of accessibility:
Exterior
o All walkways at least 36 in wide
o Attention paid to entrance accessibility (railings, stair tread measurements, slope etc)
o Outside light with motion control at entryways
Entryways
o One half inch threshold
o 36 in clear opening
o Five foot by five foot by five foot landing on each side of door
o Covered entry
All doors
o Lever style door handles (not round doorknobs)
o 32 in clear opening for all doors
o Flush entrance for interior doors
o 18 in clearance beyond latch
Bathrooms
o All bathrooms must have reinforcements in place for placement of future grab bars
o Wheelchair turning radius included in at least one ground floor bathroom
Lit closets
Laundry room- Clear floor space 36 inches wide extending full length of appliances p lus 18
inches to either side of clothes washer and dryer.
48 inches between counters in kitchen
Large rocker-style light switches that are easy to use
Hallways 36 inches wide; 42 inches is recommended.
Preference for designs that include:
Kitchen, bath, laundry, and at least one sleeping room (no smaller than 12 feet by 12 feet) on the
main floor. The sleeping room can be used for different purposes at different times: den, office,
playroom, etc.
Closets “stacked” over each other in a multi-story home, in order to allow for future installation of
an elevator or lift (allow at least 60 inches by 60 inches for installation)
.
6.a.
7.8. All building plans must have been prepared in consultation with an architect or qualified
draftsperson. All requirements by the Building Inspections Division must be met.
8.9. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements.
9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound
insulation measures may be provided on a site-by-site basis. All construction must conform to
sound attenuation building standards as required by Zoning Ordinance Section 541.19 for
properties located within the 2007 60-62 DNL Contour and 2007 63 or greater DNL contours.
9.10. If a variance is required to construct the proposed development , the HRA may, at its sole
discretion, choose to reject the application.
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10.11. If the HRA accepts an application that needs a variance(s), sale of the property will be
contingent upon the applicant obtaining the necessary variance(s). The Applicant is responsible
for applying for the variance(s) at its own expense. The HRA, as owner of the property, will,
however, cooperate with the application.
E. Green Community Concepts
Priority will be given to projects incorporating the green community concepts listed below. Any concepts
the applicant would like considered during the application process should be explained in a written plan
submitted with the application. Projects that meet the attached “Green Credit Standards for Richfield
Rediscovered” in addition to another feature (ADU, duplex or accessibly designed home) will be eligible
for a lot price reduction. A lot price reduction will be provided to the Applicant for projects that meet the
criteria outlined in the attached “Green Credit Standards for Richfield Rediscovered”. The lot price will be
reduced by a minimum of $5,000 up to a maximum of $10,000 depending on the actual costs of the
measures provided.
1. Protect and conserve water and soil. To reduce water consumption, consider the use of water -
conserving appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of
soil and sediment during construction and occupancy to reduce storm -water sediment and air
pollution.
2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural
heating, cooling and day lighting, and by using energy-efficient appliances, equipment and
lighting.
3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems,
and moisture control products and systems.
4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or
manufactured materials, products with recycled content or from renewable sources, r ecyclable or
reusable materials, and low-VOC-emitting materials.
5. Reduce waste. Reduce and manage wastes generated during the construction process and
operation of buildings. If demolition occurs, sort and recycle leftover materials and debris.
VII. City Review Procedure
1. Applicant reviews proposed project with HRA staff before plans are finalized.
2. Applicant submits application, plans, and application fee at least 45 days prior to the HRA
meeting.
3. An application is considered to be received when delivered personally to HRA staff in a pre-
arranged meeting. If more than one application is submitted for a lot within five -working days, all
applications will be reviewed, and the application that best meets the program guidelines will be
selected. The application fee will be returned to the Applicant whose proposal was not selected.
Following this five-day period, the lot will be considered reserved by the selected application and
no additional applications will be accepted for the proposed lot while the application is being
processed.
3.
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4. If an application is determined to be incomplete, the applicant will have 30 days to submit a
complete application. If a complete application is not received within 30 days, the application will
be rejected and the lot will be made available for new applications.
5. HRA staff review application to ensure conformance with House Design and S ite Development
Requirements.
6. HRA staff may reject or accept an application at its sole discretion.
7. HRA staff may choose to issue a Request for Proposals (RFP) for a lot. In this case, Staff issues
an RFP, giving a specific time period within which proposals may be submitted. HRA staff review
all proposals for consistency with development criteria and program requirements. The proposal
that best meets the criteria and requirements is selected to develop the lot. The applicant will
have 30 days to submit a complete application. If a complete application is not received within 30
days, the application will be rejected. Staff may elect to award the lot to another submitted
proposal or solicit additional proposals.
8. The Builder or Buyer executes a Contract for Private Redevelopment.
9. An application is determined to be complete at least three weeks prior to the HRA meeting.
10. HRA staff publishes a legal notice of the public hearing and prepares a report and
recommendation for the HRA.
11. HRA reviews application, conducts a public hearing, and takes action at the HRA meeting.
12. If approved, the Contract for Private Redevelopment is executed by the HRA.
VIII. Lot Sale to Builder or Buyer
1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and
the Builder or Buyer.
2. The HRA will prepare all statements, affidavits, documents, and general release forms required
for closing.
2.3. The Builder will attend a pre-construction meeting with city staff from relevant departments.
3.4. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring
the necessary building permits with the City of Richfield Building Inspections Division. If changes
to the plans are required by the Inspections Division, the applicant must notify HRA staff.
4.5. The Applicant provides evidence to HRA staff that all requirements to proceed with construction ,
as determined in the Contract for Private Redevelopment , have been met.
5.6. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed. The site will be sold
to the Builder or Buyer at the fair market value as appears on the Lot List.
6.7. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for $10,000 to
the HRA.
7.8. At closing with the Buyer, the Buyer signs a mortgage and promissory note for $10,000 in favor of
the HRA.
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8.9. Upon completion of the project, the Letter of Credit or cash escrow is released to the Builder or
the Buyer’s mortgage is released. A Certificate of Completion is executed by the HRA, releasing
the obligations of the Contract for Private Redevelopment.
IX. Program Marketing
Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the
following:
1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional
articles, direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any
financially capable individual or household, including first-time buyers, move-up buyers or empty-
nesters.
2. Public Promotion.
a. The HRA will periodically provide information about the program through articles in city
publications, on the City’s web site, on the Community Cable channel, or via press
releases to promote community awareness.
b. A public open house may be held to provide an opportunity for residents and other
interested parties to collectively view the finished homes. The Pa rade of Homes Fall
Showcase and Spring Preview may also accomplish this.
c. Photos will be taken of finished homes and may be used to promote the program.
A program information package will be mailed to all interested participants. The information packet ma y
include the following:
1. Lot List
2. Richfield Rediscovered Lot Sale Procedural Guidelines
3. Application Form
4. Sample Contract for Private Redevelopment
X. Data Privacy
The HRA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government Data Pract ices 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 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.
RICHFIELD REDISCOVERED
PROCEDURAL GUIDELINES
REDEVELOPMENT CREDIT PROGRAM
Revised: June 21November, 20221
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PROGRAM OBJECTIVES ............................................................................................................................ 3
DEFINITIONS ............................................................................................................................................... 3
PROGRAM BASICS ................................................................................................................................... 43
APPLICATION REQUIREMENTS ................................................................................................................ 4
SECURING A SITE ....................................................................................................................................... 5
PROPERTY EVALUATION CONSIDERATIONS AND PROCEDURES ..................................................... 5
HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS .............................................................. 6
NEW HOME STANDARDS .......................................................................................................................... 6
SITE STANDARDS ..................................................................................................................................... 76
CONSTRUCTION REQUIREMENTS ......................................................................................................... 87
GENERAL STANDARDS ........................................................................................................................... 87
GREEN COMMUNITY CONCEPTS ......................................................................................................... 108
DISBURSEMENT OF FUNDS .................................................................................................................. 119
SOLICITATION OF NEW DEVELOPMENT PROPOSALS ..................................................................... 119
GENERAL PROGRAM MARKETING .................................................................................................... 1110
DATA PRIVACY ..................................................................................................................................... 1210
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This document has been developed as a guidance tool for program administration. It should not be
interpreted as constituting any contractual agreement or liability by the City or Housing and
Redevelopment Authority (HRA).
I. Program Objectives
To remove substandard, functionally obsolete housing on scattered sites throughout the
city with new, higher-valued housing
To eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods.
To alleviate the shortage of housing choices for families.
To facilitate “Market Rate Initiatives” which include:
o Larger three- to four-bedroom, owner-occupied homes designed for families
o Accessory dwelling units,
o Sustainably built homes,
o Owner-occupied duplexes
o Accessible homes.
These objectives will be achieved through the acquisition of property by private Buyers and the
development of newly constructed homes.
II. Definitions
Accessory Dwelling Unit: A dwelling unit that is located on the same lot as a principal residential
structure to which it is accessory, and that is subordinate in area to the principal dwelling. These may
be attached to either the primary home or the garage, but cannot be freestanding and must meet all
applicable zoning code requirements
Buyer: An individual(s) who will build, own and occupy a new single -family home in Richfield.
The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the
Builder on a Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal
entities. A speculative project by a Buyer may be considered if all other program requirements can be
met. However, neither the Buyer, the Buyer’s Builder or Builder’s subcontractors, or the Builder’s realty
agents may occupy or purchase the property.
Buyers, unless licensed in the trade specified, may not put any sweat equity into the constructi on of the
foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior
carpentry.
A Buyer, and all members of his/her household, is limited to building a home through the program no
more than once every seven years.
Builder: Contractor who has signed contract with the Buyer to build a single-family home on the lot
identified in the application.
Contract for Private Development: A contract between the HRA and the Buyer or Builder that establishes
the conditions under which the lot will be sold and the proposed house will be developed.
Deconstruction: the process of carefully removing components of the home so the materials can be
recycled, repurposed, or reused instead of being sent to a landfill. Once all materials that can be salvaged
are removed, the remainder of the foundation will be demolished. Grants may be available through
Hennepin County to help offset the costs.
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Duplex- A residential building used for occupancy by two (2) families living independently of each other,
where both units are situated on the same parcel of land. At least one unit must be owner -occupied in
order to be eligible for the Richfield Rediscovered program
Green Community Concepts Plan: A written plan indicating how the proposed development will
incorporate green building features and concepts. Priority will be given to projects th at incorporate green
building features.
HRA: Housing and Redevelopment Authority in and for the City of Richfield.
Seller: Owner of property identified as eligible by the HRA based on condition, size and marketability.
Redevelopment Credit: To offset costs of acquisition and demolition, a redevelopment credit of $50,000 is
available from the HRA for a Buyer who acquires the property directly from the seller for redevelopment.
III. Program Basics
Program is first-come, first-serve, subject to funding availability.
Buyer purchases property, hires builder to demolish existing structures and construct s a
new single-family home in conformance with program requirements.
A $50,000 Redevelopment Credit is available per completed property.
Projects must be completed within one year of HRA approval of the project.
A Buyer, and all members of his/her household, is only eligible to receive a
Redevelopment Credit once every seven years
IV. Application Requirements
The following must be submitted for application t o the program:
1. $550 application fee
An application fee, in the form of a certified cashier’s check made out to the Richfield
HRA, must be paid at the time of application. This fee is non -refundable and is not part
of the lot price.
2. Project Information Sheet
3. Purchase agreement
The Buyer must present a valid purchase agreement for the lot it proposes to redevelop.
The closing must be scheduled after the date of the HRA meeting.
4. Blueprints
The layout of all levels, including basement and unfinished space, must be provided.
5. Elevations
Elevations of all four sides of the house, including view of garage shall be provided.
6. Site plan
The site plan shall indicate the location of the new house, walkways and garage.
7. Landscaping plan
A landscaping plan may be hand-drawn by the applicants, but must indicate the location
and type of trees, shrubbery, flowers and landscaping materials (e.g. rocks, mulch). The
entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land
forms and plant materials shall be used to define the site and blend neatly with adjoining
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properties. Specific lot line blending requirements may be required, as appropriate, for
specific sites.
8. Green Community Concepts Plan
The plan should indicate what Green Community Concepts will be incorporated into the
project.
9. Detail of construction materials to be used on the project.
10. Construction timeline
Construction must be completed with one year of the purchase of the property.
11. Signed contract with Builder
12. Financial capability statement
a. A statement from a financial institution indicating willingness, with standard
contingencies, to provide sufficient construction capital to complete the project.
13. Builder References
a. Five previous customers
b. Three major suppliers, one being the construction supplier
c. Building inspectors from two cities where the Builder has constructed new housing within
the past three years
14. Proof of Builder’s Comprehensive General Liability with Property Damage Protection .
15. Proof of sufficient worker’s compensation insurance coverage by the Builder .
16. Written warranty program
a. To be provided to the Buyer, which guarantees at a minimum, warranted repairs as
required by Minnesota State Statute.
V. Securing a Site
Participants identify a property on their own or from a list of Richfield Rediscovered -eligible properties
provided by HRA staff. If the property has not already been qualified for the program, it must be
evaluated for substandardness or market obsolescence. Upon request of a prospective Buyer, HRA staff
may research the property, and arrange for a “Substandard Evaluation” to be conducted. An evaluator
will inspect the interior for substandard qualification.
The Buyer is responsible for negotiating with the Seller on a purchase pri ce. Once a purchase agreement
between the Seller and Buyer has been signed, the Buyer should submit an application form and required
supporting documents. Only when HRA staff has received a complete application, can the $50,000
Redevelopment Credit be reserved. The reservation of funds is not an approval by the HRA. All
applications must be brought to the HRA at a regularly-scheduled meeting for approval.
VI. Property Evaluation Considerations and Procedures
Properties with the lowest market values, poorest visibility, and/or a history of code violations, will be
considered first for the program.
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To be eligible for the Richfield Rediscovered program, a house must be structurally substandard and
meet at least of one of the criteria in Criteria A and all of Criteria B.
Criteria A
Obsolete design for block and area in which it is located.
Deteriorated to the point that it has caused blight to other adjoining properties.
Detrimental to the health or safety of abutting properties.
Less than $140,000 in value, as determined by the City of Richfield Assessing
Department.
Criteria B
Site can be developed with a new home within city code requirements, including
conformance with the Zoning Code and the Comprehensive Plan
Property does not cause negative impact on other redevelopment projects.
Redevelopment projects may include:
o Established commercial redevelopment areas
o Right-of-way improvement projects such as I-494, I-35W, Crosstown Highway
62, , TH 77 and 66th Street
o Negative airport noise zones
o Stormwater/flood prevention improvement projects
o Other, as determined by the HRA
At the request of an interested Buyer, staff will research the property and if it is believed that the property
may qualify for the Richfield Rediscovered program, a “Substandard Evaluation” will be arranged. An
evaluator will inspect the interior for substandard qualification.
If a property meets the substandard test during the independent “Substandard Evaluation”, application
procedures can continue. If the substandard test cannot be met, the property cannot be considered for
the Richfield Rediscovered program.
At the discretion of staff, properties over 50 years old may also be required to be evaluated for historical
significance through the Minnesota Historical Society.
VII. House Design and Site Development Requirements
Housing design is a critical element of the program. Siding materials, exterior façade presentation, roof,
window, siding and building line variability, finished landscape, interior space function and u se are all
important issues of design to the HRA. The criteria were created to ensure that the homes built on the
identified lots blend in with the surrounding neighborhood and respond to the specific concerns of the
HRA.
All new houses built under the R ichfield Rediscovered Program must meet the requirements of the City’s
Zoning Code and additional criteria, as listed in this document.
The development of all sites shall meet the development criteria listed below, as reviewed and approved
by the HRA. To maximize the development of a given lot, the HRA reserves the right to explore all
development options without obligating the HRA to support any specific proposal, idea or solicitation.
A. New Home Standards
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1. Existing buildings must be demolisheddeconstructed. If not feasible, an exemption may be
requested from HRA staff. If an existing garage is in good condition, it may be retained upon
review by HRA staff and the Building Official.
2. New dwelling must be owner-occupied and single-family.
3. Three finished bedrooms are required.
4. Two finished bathrooms are required.
5. Two-car garage is required.
6. A full basement is required, unless the selected design results in a split-level or a garden-level
type of basement. In the case of an “accessible” house, a basement may be omitted if it would
otherwise prohibit accessible design elements.
7. Must incorporate additional accessibility features as outlined in the Program Guidelines.
8. Home must feature either an accessory dwelling unit, green design, duplex, accessible design,
or other unique feature that furthers HRA housing goals as approved by the HRA.
6.9.
B. Site Standards
1. After construction, the site must be fully landscaped, including plantings around the foundation .
The entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land
forms and plant materials shall be used to define the site and blend neatly with adjoining
properties. Specific lot line blending requirements may be required, as appropriate, for specific
sites.
The applicant must meet the “Landscaping and Screening Requirements” in the City’s Zoning
Code under Section 544.03, Subd. 4, General landscaping requirements and Subd. 5,
Residential sites. The code is available on the City’s website: http://www.richfieldmn.gov.
Additionally, one approved landscaping feature will be required in both the front yard and back
yard. Examples of acceptable landscaping features are: native plantings, pollinator gardens, and
food gardens. The square footage of the landscaping feature must be reasonable in relation to
lot size. SSOM compost will be required for all installations.
2. To the greatest extent possible, existing trees should be preserved. Any trees removed must be
replaced (they do not have to be the same species or in the same location) and should be labeled
on the required landscape plan. A lot review will be conducted by City staff to determine the
health of existing trees as well as ideal placement of new trees to increase natural cooling
efficiency. New trees must be species from the Forestry Department’s approved list. A total of
three trees will be required on the lot, including existing trees that can be preserved. A boulevard
tree must be planted if there is not an existing one on the lot.
Unless otherwise specified by the Public Works Director, all tree species and their cultivars and
varieties planted on the boulevard shall conform to the American Association of Nurserymen
Standards and be at least 1 ½ to 2 inches (1.5 -2”) in diameter, six inches (6”) above ground level,
and at least nine feet (9’) in height when planted. The crown shall be in good balance with the
trunk.
3. Utility meters shall be screened from street view and locations must be specified on plans.
4. Site drainage should be accommodated on the site so that water is directed away from the new
home and the neighboring properties. All downspouts must drain into the grass, a garden, or a
rainwater harvesting system. Neighboring properties must not be disturbed by the creation of
drainage swales. Specific storm water management requirements may be required, as
appropriate, including the addition of gutters for specific sites. Construction and the finished
structure must not have detrimental impact on storm water drainage patterns in the
neighborhood.
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5.All air conditioning units must be located in the rear yard of the house or as approved by the
HRA.
C. Construction Requirements
1.Existing trees must be protected during construction. A tree wrap with board reinforcements
shall be sued on trees directly adjacent to active grading and construction area. Damaged or
destroyed trees must be replaced.
2.The construction site, neighboring properties and adjacent public streets shall be kept free of
construction debris at all times.
3.No construction workers, construction equipment or construction material shall encroach upon
neighboring properties.
4.The property shall have a new sanitary service line installed to the city sanitary sewer main
consisting of schedule 40 PVC or equivalent per city standards. If there is an existing 6" sewer
stub at the property line, it must be fully lined with 4" schedule 40 PVC or equivalentan approved
CIPP product of the same sewer size to the city’s sanitary main, and it must include a "donut" at
the end with cement.
The line must be televised after installation to ensure the line meets city standards. following:
1.There are no obstructions in the line.
2.The PVC liner is not protruding into the cit y’s sanitary sewer main line.
D. General Standards
1.The value of the new home must meet or exceed the minimum value specified in the Contract for
Private Redevelopment.
2.All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new
construction and the design must include one of the following features:
a.Accessory Dwelling Unit
b.Meet the attached “Green Credit Standards for Richfield Rediscovered” and include
either solar panels, geothermal heating or other sustainable feature as approved by the
HRA.
c.Be an owner-occupied duplex
d. Fully accessible per the criteria outlined in the Minnesota Accessibility Code Section
1002: Accessible Units.
e. Other unique design that furthers HRA housing goals, as approved by the HRA
3.Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable.
Brick, aluminum, vinyl stucco and fiber cement siding are preferred. Natural cedar lap is
acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are
prohibited. Roof valleys should have metal valleys and not be woven.
4.Unit height and mass of the new house shall be compatible with the scale of the surrounding
homes in the neighborhood.
5.Plans must present a balanced and pleasing distribution of wall, door and window areas from all
views.
6.The dominance of the garage door must be minimized through placement, architectural detail,
door design and utilization and design of windows. Front-loaded garages (where the garage door
faces the street), shall not be located closer to the front lot line than the foremost facade of the
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principal building facing the front property line. Garage sidewalls that face the street should
appear to contain habitable space. This can be accomplished by incorporat ing windows and other
design elements into the garage wall that are in character with the remainder of the dwelling. For
lots that have alley access, the garage should be oriented to access the alley.
7. At minimum, home design must meet the following standards of accessibility:
Exterior
o All walkways at least 36 in wide
o Attention paid to entrance accessibility (railings, stair tread measurements, slope etc)
o Outside light with motion control at entryways
Entryways
o One half inch threshold
o 36 in clear opening
o Five foot by five foot by five foot landing on each side of door
o Covered entry
All doors
o Lever style door handles (not round doorknobs)
o 32 in clear opening for all doors
o Flush entrance for interior doors
o 18 in clearance beyond latch
Bathrooms
o All bathrooms must have reinforcements in place for placement of future grab bars
o Wheelchair turning radius included in at least one ground floor bathroom
Lit closets
Laundry room- Clear floor space 36 inches wide extending full length of appliances plus 18
inches to either side of clothes washer and dryer.
48 inches between counters in kitchen
Large rocker-style light switches that are easy to use
Hallways 36 inches wide; 42 inches is recommended.
Preference for designs that includes:
Kitchen, bath, laundry, and at least one sleepin g room (no smaller than 12 feet by 12 feet) on
the main floor. The sleeping room can be used for different purposes at different times: den,
office, playroom, etc.
Closets “stacked” over each other in a multi-story home, in order to allow for future
installation of an elevator or lift (allow at least 60 inches by 60 inches for installation)
6.
7.8. All building plans must have been prepared in consulta tion with an architect or qualified
draftsperson. All requirements by the Building Inspections Division must be met.
8.9. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements.
9.10. All new homes should be built to provide high quality sound insulation.
Recommendations for sound insulation measures may be provided on a site-by-site basis. All
construction must conform to sound attenuation building standards as required by Zoning
Ordinance Section 541.19 for properties located within the 2007 60-62 DNL Contour and 2007 63
or greater DNL contours.
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10.11. If a variance is required to construct the proposed development, the HRA may, at its sole
discretion, choose to reject the application.
11.12. If the HRA accepts an application that needs a variance(s), sale of the property will be
contingent upon the applicant obtaining the necessary variance(s). The Applicant is responsible
for applying for the variance(s) at its own expense.
E. Green Community Concepts
Priority will be given to projects incorporating the green community concepts listed below. Any concepts
the applicant would like considered during the application process should be explained in a cover letter
submitted with the application. Projects that meet the attached “Green Credit Standards for Richfield
Rediscovered” in addition to another feature (ADU, duplex or accessibly designed home) will be eligible
for an additional credit. An additional credit will be provided to the Applicant for projects that meet the
Criteria outlined in the attached “Green Credit Standa rds for Richfield Rediscovered”. The credit amount
will be a minimum of $5,000 up to a maximum of $10,000 depending on the actual costs of the measures
provided.
1. Protect and conserve water and soil. To reduce water consumption, consider the use of water -
conserving appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of
soil and sediment during construction and occupancy to reduce s torm-water sediment and air
pollution.
2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural
heating, cooling and day lighting, and by using energy-efficient appliances, equipment and
lighting.
3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems,
and moisture control products and systems.
4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or
manufactured materials, products with recycled content or from renewable sources, recyclable or
reusable materials, and low-VOC-emitting materials.
5. Reduce waste. Reduce and manage wastes generated during the construction process and
operation of buildings. When demolition occurs, consider the sorti ng and recycling of leftover
materials and debris.
VIII. City Review Procedure
1. Applicant reviews proposed project with HRA staff before plans are finalized.
2. HRA Staff will review application to ensure conformance with House Design and S ite
Development Requirements.
3. HRA staff prepares a report and recommendation for the HRA.
4. A Contract for Private Redevelopment is reviewed and signed by applicants in advance of the HRA
meeting.
5. HRA reviews application and takes action at the HRA meeting.
6. If approved, the Contract for Private Redevelopment is executed by the HRA.
7. The Builder will attend a pre-construction meeting with city staff from relevant departments.
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6.
7.8. Upon approval by the HRA, the applicant is responsible for acquiring the necessary building and
demolition permits with the City of Richfield Inspections Department. If changes are r equired, the
Buyer must notify HRA staff.
IX. Disbursement of Funds
Approved projects are eligible for a $50,000 Redevelopment Credit. The Credit will be dispersed upon
completion of the project (including landscaping) and the issuance of a Certifica te of Completion by the
Building Official. A lender may require a portion of the Redevelopment Credit be held as an escrow as
part of the interim financing of the project, only to be released upon project completion.
The Buyers may also request the Redevelopment Credit to be issued in three installments. The first
installment of $20,000 would be issued at the time of closing, the second for $20,000 when permits are
pulled and the third for $10,000 when the project has been completed and a Certificate of Completion has
been issued by the Building Official. A mortgage will be filed and a lien put on the house until the project
has been completed. Filing fees are the responsibility of the applicant.
The disbursement of funds will be outlined in the Contra ct for Private Redevelopment, to be executed by
the HRA and the Buyer.
X. Solicitation of New Development Proposals
The HRA will advertise the Richfield Redevelopment program in publications or newspapers, by direct
mail, or other methods as deemed appropriate, to solicit interest.
When the HRA has property information, it will provide the address of the property, lot dimensions and
contact information of the seller. Interested parties may contact the owners directly. All purchase
negotiations and timing issues must be resolved between the parties.
Properties identified by the applicant may also qualify. The HRA will review each one on a case -by-case
basis.
A program information package will be available upon request to interested Buyers. The in formation
packet will include the following:
Richfield Rediscovered Procedural Guidelines
Sample Contract for Private Redevelopment
Application Cover Sheet
Project Information Sheet
Lot List
XI. General Program Marketing
Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the
following:
1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional
articles, direct mail, the Internet, or other methods as deemed appropriate. Buye rs may be any
financially capable individual or family, including first -time buyers, move-up buyers or empty-
nesters.
2. Public Promotion.
Formatted: Indent: Left: 0.5", No bullets or
numbering
12
a. The HRA will periodically provide information about the program through articles in city
publications, on the City’s web site, on the Community Cable channel, or via press releases
to promote community awareness.
b. A public open house may be held to provide an opportunity for residents and other interested
parties to collectively view the finished homes. The Parade of Homes Fall Showcase and
Spring Preview may also accomplish this.
XII. Data Privacy
The HRA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government Data Practices Act”).
Under the Minnesota Government Data Practices Act, the names and addresse s of applicants for or
recipients of assistance under this program and the amount of assistance 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.
Green Credit Standards for Richfield Rediscovered
Requirement Details
Overall
Certification
Obtain one of the listed
certifications, or propose a
different certification to be
approved by City staff. Share
the submitted certification
checklist or documents with
City staff.
GreenStar Homes – Silver
MN GreenPath – Advanced or Master
ENERGY STAR
Tree Standards
4 trees must be on the lot.
Existing trees that remain
throughout construction count
towards this total.
Must plant a boulevard tree if
there is not an existing one.
Trees must be from the list of approved species (see attached). At
least one ornamental must be a tree and not a shrub. Staff will
conduct a lot review for ideal placement to increase natural
heating/cooling efficiency.
Unless otherwise specified by the Public Works Director, all tree
species and their cultivars and varieties planted on the boulevard shall
conform to American Association of Nurserymen Standards and be at
least 1½ to 2 inches (1.5-2“) in diameter, six inches (6”) above ground
level, and at least nine feet (9’) in height when planted. The crown
shall be in good balance with the trunk.
Landscaping
50% of “unbuilt” green space
must be alternatively
landscaped. One feature must
be located in the front yard.
SSOM compost use is required
to fulfill this standard.
Approved landscaping elements:
Native grasses/natural or conservation landscaping
Gardens (pollinator, flower, food, etc.)
Xeriscaping
other proposals as approved by City staff
Water
Conservation
Must include 1 or more
features.
All downspouts must be
disconnected and drain into
the grass, a garden, or a
rainwater harvesting system.
Install water-conserving
appliances and fixtures.
Install a grass strip in the middle of the driveway for less
impervious pavement.
Install a rainwater harvesting system (i.e. a cistern) or rain barrels.
Use permeable materials in walkways or patios.
Materials
Must include 1 or more
features.
Enhance indoor environmental quality by using non-toxic building
materials, ventilation and exhaust systems, and moisture control
products and systems.
Use locally-produced, salvaged and/or manufactured materials,
products with recycled content or from renewable sources,
recyclable or reusable materials, and low-VOC-emitting materials.
Reduce waste generated during the construction process and
operation of buildings. If demolition occurs, sort and recycle
leftover materials and debris.
Energy Efficiency
Must include 1 or more
features.
All LED lighting, a
programmable thermostat, a
high-efficiency HVAC system,
and attic insulation are
required.
Reduce energy consumption by taking advantage of natural
heating, cooling and day lighting.
Install conduit for an EV charger so the garage is “EV-ready”.
Install solar panels.
Install a heat pump system.
Install all electric appliances.
Other
One of these features may
count towards any of the
above categories (except
Trees, Landscaping, and
Install a green roof. Green roofs help manage storm water by
mimicking hydrologic processes normally associated with open
space. Plants capture rainwater and absorb it in their root zone,
encouraging evapotranspiration and preventing much stormwater
Overall Certification) from entering runoff streams.
Deconstruction of any existing building onsite.
List of Acceptable Tree Varieties
General conditions for selecting varieties of trees suitable are: hardiness, upright growth characteristics, lack of fruit or nuts, local
availability, and price. Other varieties may be accepted by the City Forester.
Deciduous or coniferous trees
Birch, Prairie Dream
Birch, River
Birch, Whitespire
Buckeye, Autumn splendor
Coffeetree, Kentucky-Espresso
Elm, New Harmony
Elm, New Horizon
Elm, Princeton
Elm, Valley Forge
Ginkgo, Autumn Gold
Ginkgo, Princeton Sentry
Hackberry
Honeylocust, Imperial
Honeylocust, Northern Acclaim
Honeylocust, Skyline
Honeylocust, Streetkeeper
Honeylocust, Sunburst
Ironwood
Linden, American
Linden, Blvd.
Linden, Glenleven
Linden, Greenspire
Linden, Redmond
Linden, Sentry
*Maple, Amur
*Maple, Hybrids (Autumn Blaze, Fantasy, Firefall and
Radiance)
*Maple, Norway
*Maple, Sugar
*Maple, Red
Oak, Bur
Oak, Crimson Spire
Oak, Heritage
Oak, Northern Pin
Oak, Red
Oak, Regal Prince
Oak, Swamp White
Oak, Warei ‘Long’
Pine, White
*Maples are allowed but not recommended due to their prevalence
in Richfield.
Ornamental trees
Ash, Showy Mountain
Beech, Blue
Crabapple, Donald Wyman
Crabapple, Harvest Gold
Crabapple, Pink Spires
Crabapple, Prariefire
Crabapple, Rejoice
Crabapple, Royal Raindrops
Crabapple, Spring Snow
Crabapple, Velvet Pillar
Hawthorn, Russian
Hawthorn, Thornless
Japanese Tree Lilac, Ivory Silk
Japanese Tree Lilac, Summer Storm
Prohibited Trees
Amur Cork
Amur Maple
Ash
Autumn Olive
Black Locust
Boxelder
Buckthorn
Ginko (female only)
Mulberry
Non-disease resistant elm species
Nonhybrid cottonwood species
Norway Maple
Russian Olive
Siberian Elm
Siberian Peashrub
Tree of Heaven