091823 Complete AgendaREGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
SEPTEMBER 18, 2023
7:00 PM
Call to Order
Oath of Office; Commissioner Young
Elect a new Secretary for the Richfield Housing and Redevelopment Authority.
Staff Report No. 20
Open Forum
Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments
are to be an opportunity to address the HRA. Please refer to the HRA agenda and minutes web page for
additional ways to submit comments. Call into the open forum by dialing 1-415-655-0001 Use webinar access
code: 2632 754 5422 and password: 1234.
Appr oval of t he M inut es
Approval of the 1) special work session of July 29, 2023; and 2) the regular Housing and Redevelopment Authority
meeting of August 21, 2023.
AGENDA APPROVAL
1.Approval of the Agenda
2.Consent Calendar contains several separate items which are acted upon by the HRA in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further HRA action on these items is necessary. However, any HRA
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for HRA discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A.Consider an adjustment to the payment standard for the Section 8 Housing Choice Voucher Program.
Staff Report No. 21
3.Consideration of items, if any, removed from Consent Calendar
RESOLUTIONS
4.Consideration of a resolution authorizing the Executive Director to modify New Home Loans in certain
circumstances.
Staff Report No. 22
5.Consider a resolution supporting a proposed velodrome project with the Minnesota Cycling Center.
Staff Report No. 23
HRA DISCUSSION ITEMS
6.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
7.E xecutive D irector's Report
C LAIMS
8.C laims
9.A djournment
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.
AGENDA SECTION:Call to Order
AGENDA ITEM #
S TAFF REPORT NO. 20
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
9/18/2023
RE P O RT P RE PA RE D B Y: L aTonia D uB ois, A dministrative A ssistant
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: Melissa P oehlman, E xecutive D irector
8/10/2023
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Elect a new Secretary for the Richfield Housing and Redevelopment Authority.
E X E C UT IV E S UM M ARY:
I n March of 2023, Commissioner Ohnesorge was elected to serve as the Secretary to the Richfield Housing
and Redevelopment Authority (HRA). Commissioner Ohnesorge submitted his resignation to the HRA in April
of 2023, leaving the roll of Secretary vacant.
RE C O M M E ND E D AC T I O N:
By motion: Elect a new Secretary for the Richfield Housing and Redevelopment Authority to serve
through February 2024.
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
Provided in the Executive Summary.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The HRA Secretary signs the official minutes of the body and performs the duties of the
Chairperson in cases where both the Chairperson and Vice-Chairperson are absent.
C.C R IT IC AL T IMIN G IS S U E S:
The roll of Secretary is currently vacant.
D.F IN AN C IAL IMPAC T:
None
E.L E GAL C ON S ID E R AT ION:
None
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special HRA Work Session
June 29, 2023
The meeting was called to order by Chair Erin Vrieze Daniels at 5:00 p.m. held virtually via
WebEx.
HRA Members Erin Vrieze Daniels, Chair; Mary Supple; and Gordon Hanson
Present:
Staff Present: Kelly Wynn, Administrative Assistant
Item #1
MEETINGS WITH APPLICANTS FOR VACANT HRA AND EDA SEAT
The applicant did not show for the interview. Members of the HRA discussed next steps in
recruitment for the vacant seat.
The work session was adjourned by unanimous consent at 5:30 p.m.
Date Approved: September 18, 2023
Erin Vrieze Daniels
HRA Chair
Kelly Wynn Melissa Poehlman
Administrative Assistant Executive Director
CALL TO ORDER
ADJOURNMENT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 21, 2023
CALL TO ORDER
Chair Vrieze Daniels called the meeting to order at 7:00 p.m. in the Council Chambers.
HRA Members
Present:
Erin Vrieze Daniels, Chair; Mary Supple; Sean Hayford Oleary;
and Gordon Hanson
HRA Members
Absent
Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant
Community Development Director; and Dustin Leslie, City Clerk.
OPEN FORUM
Ruane Onesirosan – 2421 W. 65th St.: Resident asked two questions: 1) why were
developers eligible for city subsidies, and 2) do the HRA bylaws place a cap on the amount that
can be considered for subsidy.
APPROVAL OF THE MINUTES
Commissioner Supple stated that on the June 20 HRA minutes under item #6 in the
second paragraph that it was stated the Superintendent made a statement. However, the
Superintendent was not at the meeting and it should be changed to say that Tracy Smith made
the statement.
M/Supple, S/Hayford Oleary to approve the minutes of the regular Housing and
Redevelopment Authority meeting of June 20, 2023 with the correction noted by Commissioner
Supple.
Motion carried: 4-0
HRA Meeting Minutes -2- August 21, 2023
ITEM #1
HRA BUDGET PRESENTATION
Executive Director Poehlman gave the presentation covering HRA staff, budget details,
funding sources, HRA levy history, 2023 highlights, and future priorities.
Commissioner Supple thanked staff for their hard work.
Chair Vrieze Daniels noted that in the funding sources the tax increases were mostly
coming from the new metro sales tax. She also thanked staff for their work.
ITEM #2
APPROVAL OF THE AGENDA
M/Gordon, S/Supple to approve the agenda.
Motion carried: 4-0
ITEM #3
APPROVAL OF THE CONSENT CALENDAR
Executive Director Poehlman presented the Consent Calendar.
A. Cancellation of the public hearing regarding consideration of an amended Business
Subsidy Policy. (Staff Report No. 16).
B. Consideration of a revised fee schedule for housing programs and loan administration.
(Staff Report No. 17).
M/Supple, S/Hayford Oleary to approve the Consent Calendar.
Motion Carried: 4-0
ITEM #4
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None.
ITEM #5
CONSIDER RESOLUTIONS APPROVING PROPOSED 2024 PROPOSED
HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND
TAX LEVY AND 2023 REVISED HOUSING AND REDEVELOPMENT AUTHORITY
BUDGET (STAFF REPORT #18).
Executive Director Poehlman gave the report.
HRA Meeting Minutes -3- August 21, 2023
M/Hayford Oleary, S/Supple to adopt the attached resolutions approving the 2024
Proposed Housing and Redevelopment Authority Budget and Tax Levy and 2023 Revised
Housing and Redevelopment Authority Budget.
Commissioner Supple noted that the HRA would have the ability to lower, but not raise,
the levy after approval and with state funding still to come, the levy estimate was conservative.
Executive Director Poehlman concurred with this statement.
Motion carried: 4-0
ITEM #6
PUBLIC HEARING AND CONSIDERATION OF THE ADOPTION OF A
RESOLUTION AUTHORIZING THE SALE OF 6600 NEWTON AVENUE
SOUTH TO MUNIRA ALI YUSUF, ABDIRIZAK YAHYE ABDINOOR AND NAIMO
ABDULLAHI FARAH AND THE APPROVAL OF
A CONTRACT FOR PRIVATE DEVELOPMENT WITH MUNIRA ALI YUSUF,
ABDIRIZAK YAHYE ABDINOOR AND NAIMO ABDULLAHI FARAH
FOR THE CONSTRUCTION OF A DUPLEX THROUGH THE RICHFIELD
REDISCOVERED PROGRAM (STAFF REPORT #19).
Assistant Community Development Director Urban gave the report.
Commissioner Hayford Oleary noted that this property was one parcel with two owners
and asked if the parcel could be split into two. Assistant Community Development Director
Urban stated the parcel was too small to be split.
Commissioner Hayford Oleary asked if the property met all required codes. Assistant
Community Development Director Urban confirmed the property met all required codes.
Commissioner Hayford Oleary asked if the owner-occupied rules only applied to the
initial homeowners. Assistant Community Development Director Urban confirmed that the rules
would only apply to the initial owners.
Chair Vrieze Daniels opened the public hearing.
A resident residing at 6624 Morgan Ave stated she was a resident who lived in the
neighborhood and asked questions about the layout. Executive Director Poehlman reviewed the
layout of the property with the resident.
M/Hanson, S/Supple to close the public hearing.
Motion carried: 4-0.
M/Hayford Oleary, S/Hanson to adopt a resolution authorizing the sale of 6600 Newton
Avenue South to Munira Ali Yusuf, Abdirizak Yahye Abdinoor and Naimo Abdullahi Farah.
Commissioner Supple stated it was exciting to see this program being used for a duplex
and welcomed the new residents to the neighborhood. The rest of the HRA concurred.
Motion carried: 4-0.
M/Hayford Oleary, S/Supple to authorize execution of a Contract for Private
Development between the Housing and Redevelopment Authority and Munira Ali Yusuf,
HRA Meeting Minutes -4- August 21, 2023
Abdirizak Yahye Abdinoor and Naimo Abdullahi Farah for the redevelopment of 6600 Newton
Avenue South.
Motion carried: 4-0.
ITEM #7
HRA DISCUSSION ITEMS
Commissioner Supple spoke about the interview process for the new HRA
Commissioner and looks forward to having a new member approved at the September 12 City
Council meeting.
ITEM #8
EXECUTIVE DIRECTOR REPORT
Executive Director Poehlman spoke about the Richfield Remodelers Showcase which
will be held on Saturday, October 7.
Executive Director Poehlman stated the City submitted a grant application on behalf of
the Beacon Aster Commons project from the Met Council for $1.1 million.
ITEM #9
CLAIMS
M/Gordon, S/Supple that the following claims be approved:
U.S. BANK 8/17/2023
HRA Checks: #36917-36931 82,700.00
Section 8 Checks: #135047-135120 185,982.16
TOTAL $268,682.16
Motion carried: 4-0
ITEM #10
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:42 p.m.
Date Approved: September 18, 2023
Erin Vrieze Daniels
HRA Chair
Dustin Leslie Melissa Poehlman
City Clerk Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
S TAFF REPORT NO. 21
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
9/18/2023
RE P O RT P RE PA RE D B Y: Lynnette C hambers, Multifamily Housing C oordinator
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
9/12/2023
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider an adjustment to the payment standard for the Section 8 Housing Choice Voucher Program.
E X E C UT IV E S UM M ARY:
On an annual basis, the U.S. Department of Housing and Urban Development (HUD) establishes a Fair
Market Rent (FMR) for the Twin Cities Metropolitan Area, by bedroom size. I ndividual Housing and
Redevelopment Authorities are allowed to select a payment standard within 90% to 110% of HUD's F MR. The
selection of the payment standard should ensure that a sufficient supply of rental housing is available to
Section 8 Housing Choice Voucher Program (Program) participants. HUD's newly published FMRs have
increased and the Housing and Redevelopment Authority's (HRA) current payment standards do not fit within
the established parameters. To remain in compliance with HUD regulations, the HRA must increase its
payment standards. The proposed payment standards will fall between 91% to 92% of the current FMRs.
RE C O M M E ND E D AC T I O N:
By motion: Approve the proposed adjustment of the payment standard for the Section 8 Housing
Choice Voucher Program.
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 HRA last adjusted its payment standards in September 2022.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Section 8 participants will be able to choose from a larger selection of affordable housing units
and may receive some immediate rent relief on a case-by-case basis.
HUD provides sufficient federal assistance to cover these adjustments in the payment standards
and has approved the increase.
W ithout an increase in the payment standard, many Section 8 participants will be unable to find
housing and keep up with changing rents.
Potential changes in federal law impact the financial resources available to the Program if the
HRA does not remain current with the FMR.
C.C R IT IC AL T IMIN G IS S U E S:
The new payment standards will be effective October 1, 2023.
D.F IN AN C IAL IMPAC T:
An increase in the payment standard will decrease the rent burden for Section 8 participants.
HUD provides sufficient funding to cover the increase.
E.L E GAL C ON S ID E R AT ION:
The contract between the HRA and HUD provides for F MR adjustments in accordance with
federal regulations.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not change the payment standard at this time; however, this would mean that Richfield HRA is not in
compliance with the HUD regulations.
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
10/1/2023 P ayment S tandards C over Memo
Curent Payment Standards
0 BDR 1 BDR 2 BDR 3 BDR 4 BDR 5 BDR
925 1125 1350 1775 2075 2425
Proposed Payment Standards Effective for 10/1/2023 Move-In’s and 12/1/2023 Annuals
0 BDR 1 BDR 2 BDR 3 BDR 4 BDR 5 BDR
1070 1210 1480 1995 2255 2635
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #4.
STAFF REPORT NO. 22
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
9/18/2023
REPORT PREPARED BY: Brian Duerwachter, Housing Specialist
OTHER DEPARTMENT REVIEW: N/A
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
9/12/2023
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution authorizing the Executive Director to modify New Home Loans in certain
circumstances.
EXECUTIVE SUMMARY:
The New Home Loan Program (Program) provides affordable homeownership opportunities to households
earning 80% of the Area Median Income (AMI) or less. From 1983 to 2017, the Housing and Redevelopment
Authority (HRA) facilitated the sale of new and substantially rehabilitated homes to qualified homebuyers. In
the case of 51 of the homes, the HRA issued 30-year, deferred, interest-free loans to cover the gap between
the cost of the home and the amount the homebuyer could afford. The size of the loans vary from $11,900 to
$45,000 with an average size of $22,000. The loans are due and payable with one of the following
occurrences:
the property is sold, transferred or otherwise conveyed;
the property is rented, leased, unoccupied or assigned;
a default under the first mortgage occurs;
the mortgage is satisfied or assigned or the homeowner does not occupy the home for more
than one year, or
the first mortgage is paid in full.
At the conclusion of the 30-year term, the loan is due and payable.
In the past, homeowners have asked for modifications to and forgiveness of their loans, which have been
brought before the HRA on an individual basis. As several of the remaining ten active loans near their 30-year
maturity date, staff is anticipating future requests. Rather than have individual homeowners approach
the HRA, staff is asking the HRA to grant the authority to the Executive Director to modify New
Home Loans in the following circumstances:
1.When a homeowner pays off a first mortgage, modify the mortgage to remove the requirement that the
HRA's loan also be repaid.
2.When a homeowner refinances, modify the mortgage to remove the requirement that the HRA's loan
also be repaid, assuming the proposed refinance meets the HRA's subordination policy.
3.Reduce the amount of the loan to be repaid upon sale of the property, in cases of financial hardship.
4.When a loan reaches its 30-year maturity, provide a satisfaction, thereby forgiving the loan.
In the case of the first two circumstances, homeowners have struggled to make what is essentially a "balloon"
payment when paying off their first mortgage or refinancing; they are unlikely to have sufficient funds to also
pay off their New Home Loan. In the third circumstance, homeowners have had to come before the HRA to
explain, in public, their personal situation of financial hardship and request a reduction or forgiveness of the
loan.
The fourth circumstance addresses the requirement to repay the loan upon maturity, which is unique to this
Program. In the case of other loan programs, the HRA has typically considered 30 years a sufficient amount
of time to ensure that a homeowner isn't being unduly enriched by the HRA's contribution and, in the case of
rehabilitation, a more-than-sufficient amount of time to cover the lifespan of the work. While any repaid funds
are recycled and reused for affordable homeownership efforts, the Program is not dependent upon these
funds. Staff recommends that the HRA allow the forgiveness of these loans after 30 years in order to
encourage equitable access to wealth-building and housing stability in lower-income households.
RECOMMENDED ACTION:
By Motion: Adopt a resolution authorizing the Executive Director to modify New Home Loans in
certain circumstances.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
From 1983 to 2017, the HRA sold new and substantially rehabilitated homes to qualified
homebuyers under the Program. In the case of 21 of the homes, the HRA issued 30-year,
deferred, interest-free loans to cover the gap between the cost of the home and the amount the
homebuyer could afford. The size of the loans vary from $11,900 to $45,000 with an average size
of $22,000.
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
The modification would be consistent with other HRA loan programs such as the Transformation
and Deferred Loan Programs that are forgiven after a 30-year repayment period.
C.CRITICAL TIMING ISSUES:
Several of the remaining loans are nearing their 30-year maturity date, and staff anticipates future
requests for extensions or forgiveness are forthcoming.
D.FINANCIAL IMPACT:
The remaining active loans have a value of $249,347, which would not be repaid if all loans
reached full maturity and were forgiven.
The primary source of funding for the Program has been federal Community Development Block
Grant (CDBG) funds. There is no requirement that the funds be repaid.
E.LEGAL CONSIDERATION:
The HRA Attorney prepared the resolution authorizing the Executive Director to modify New
Home Loans.
ALTERNATIVE RECOMMENDATION(S):
Do not adopt the proposed resolution and require any modifications to New Home Loans be brought before
the HRA.
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ATTACHMENTS:
Description Type
Resolution Resolution Letter
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 1462
RESOLUTION PROVIDING STAFF WITH ABILITY TO
MODIFY NEW HOME LOANS AS NEEDED
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) created the New Home Loan Program in the 1980s for first time homebuyers
with an income of 80% of area median income or less (the "Loan Program") in order for Richfield citizens
to cover the financing gap between the purchase price of a home and the mortgage amount available; and
WHEREAS, the interest-free New Home Loan Program was in effect from 1983 to 2003 and the
loans provided by the Loan Program were generally evidenced by a mortgage and a promissory note; and
WHEREAS, each of the loans becomes due upon various occurrences, including the payment in
full of a first mortgage, the date the property is sold, transferred or otherwise conveyed, the prop erty is
rented, leased, unoccupied or assigned, a default under the first mortgage, the mortgage is satisfied or
assigned or the homeowner does not occupy the home for more than one year; and
WHEREAS, the homeowners that pay off their first mortgage are unlikely to have sufficient
funds to pay their New Home Loans immediately after paying off their first mortgage; and
WHEREAS, as the New Home Loans become due, several homeowners have asked for
modifications of their note and/or security agreement and several of those requests have been granted;
and
WHEREAS, Authority staff request the flexibility to respond to homeowners requests related to
their New Home Loans when requesting extensions in order to pay the loan back and the ability to
simplify the criteria for when each mortgage is due; 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 as follows:
1.The Executive Director is hereby authorized to review and execute modifications to the New
Home Loan notes and security agreements, which may include but is not limited to forgiveness after 30 years,
extensions of time to pay the loan, reduction in the repayment amount in cases of financial hardship, and
simplifying the criteria for when each mortgage is due.
2
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 18th day of September, 2023.
Erin Vrieze Daniels, Chair
ATTEST:
_______________________, Secretary
RC125-1 (JAE)
864599v1
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #5.
STAFF REPORT NO. 23
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
9/18/2023
REPORT PREPARED BY: Jan Youngquist, Economic Development Manager
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
9/12/2023
ITEM FOR COUNCIL CONSIDERATION:
Consider a resolution supporting a proposed velodrome project with the Minnesota Cycling Center.
EXECUTIVE SUMMARY:
The Minnesota Cycling Center (MNCC) has expressed interest in developing a multi-purpose velodrome
facility on properties located at 78th Street East that are owned by the Housing and Redevelopment Authority
(HRA) and the Mathwig Trust (Trust).
The property at 1710 - 78th Street East was purchased by the City in 2000 for the construction of the 77th
Street underpass. The City transferred ownership of this property to the HRA in August 2022. In December
2021, the HRA accepted the generous donation of the property at 1600 - 78th Street East by the Trust. The
Trust continues to own the property between these two lots, 1620 - 78th Street East, and has indicated a
desire to work collaboratively with the City and HRA to holistically redevelop the area.
In 2022, the City and HRA undertook a visioning process for the three properties and a marketing brochure
was prepared. Using this document as a guide, the HRA prepared and publicized a Request for Interest
(RFI) in January 2023 with the hope of attracting a private partner with whom to redevelop the land.
The RFI led to several conversations with prospective developers and in June, MNCC contacted
HRA staff to discuss a proposal to develop a velodrome on the properties. The proposed concept
includes a multi-purpose facility with a 200-meter cycling track; a flexible infield that could include
basketball, volleyball, and pickleball courts; concert and event space; meetings rooms; and retail
space (Project).
On August 8, MNCC presented conceptual plans for the Project at a joint work session of the City Council,
HRA, and Planning Commission. Policymakers expressed support for the Project in concept and directed
staff to continue conversations with MNCC and the Trust to pursue development of the Project.
MNCC has requested a resolution from the HRA confirming its support for the concept of the Project at this
location, which will help them to begin immediately seeking funding for the Project. The resolution does not
guarantee or obligate the approval of any requests associated with the Project, but indicates that the HRA is
supportive of the concept, will continue to work with MNCC and the Trust to explore options for redevelopment
of the properties, will consider providing financial assistance for the Project, and will cooperate with MNCC in
seeking additional funding for the Project.
RECOMMENDED ACTION:
By motion: Approve the attached resolution supporting a proposed velodrome project with the
Minnesota Cycling Center.
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 property at 1710 - 78th Street East was purchased by the City in 2000 for the construction of
the 77th Street underpass and ownership was transferred to the HRA in August 2022.
I n December 2021, the HRA accepted the generous donation of the property at 1600 - 78th
Street East by the Trust.
I n 2022, the City and HRA undertook a visioning process for the properties, including the property
owned by the Trust, and a marketing brochure was prepared.
A RF I was published in J anuary 2023 with the hope of attracting a private party with whom to
partner on redevelopment. The HRA did not receive any Applications of I nterest, but had several
conversations with prospective developers.
At a work session in March 2023, the HRA indicated that it was not interested in purchasing the
Trust’s property, but would like to continue to work with the Trust in redevelopment of the site and
explore possible solutions around the carrying costs for the Trust's now-vacant site.
MNC C contacted HRA staff in J une 2023 to express interest in the property for development of
the Project.
The City Council, HRA and Planning Commission held a joint work session on August 8.
Policymakers expressed support for the Project in concept and directed staff to continue
conversations with MNC C and the Trust to pursue development of the Project.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The Comprehensive Plan guides the properties for Regional Commerc ial development, which is
defined as "uses loc ated along regional corridors that provide visibility and acc essibility " (including
Highway 77 and I nterstate 494). "These commercial land uses are larger in scale and attract
users throughout the Twin Cities metropolitan area."
The properties are zoned Mixed Use-Regional, which supports destination-oriented commercial
and office uses at a high density/intensity of development.
C.C R IT IC AL T IMIN G IS S U E S:
Documented support for the Project from the HRA will help MN C C to begin immediately
seeking funding.
D.F IN AN C IAL IMPAC T:
The resolution indicates that the HRA will consider providing financial assistance for the Project,
but approval of the resolution does not obligate the HRA to provide any assistance.
E.L E GAL C ON S ID E R AT ION:
Legal counsel drafted the attached resolution.
The resolution indicates that the HRA is supportive of the Project in concept, but does not obligate
the HRA to approve any specific development proposal.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve a resolution of support.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
J ason Lardy, President of the Minnesota Cycling Center (MNC C)
AT TAC H ME N T S:
D escription Type
Resolution S upporting Velodrome P roject Resolution L etter
L ocation and C omprehensive P lan Map B ackup Material
M N C ycling C enter P roject Narrative B ackup Material
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 1463
RESOLUTION SUPPORTING A PROPOSED VELODROME PROJECT WITH THE
MINNESOTA CYCLING CENTER
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) owns the real property located at 1600 and 1710 78th Street East
(the “Redevelopment Property”) in the City of Richfield, Minnesota (the “City”); and
WHEREAS, the Minnesota Cycling Center, a Minnesota 501(c)(3) nonprofit (the
“Redeveloper”), proposes to purchase the Redevelopment Property from the Authority, along
with the real property located at 1620 78th Street East in the City (the “Third-Party Parcel”),
which Third-Party Parcel is owned by a third party, and construct thereon a multi-purpose
velodrome facility (the “Project”); and
WHEREAS, the Redeveloper and the Authority have been engaged in informal
discussion regarding the Project, including consideration of the Authority selling the
Redevelopment Property to the Redeveloper at a reduced cost and providing financial
assistance for the Project; and
WHEREAS, the Redeveloper has presented information with respect to the Project to
the Board of Commissioners of the Authority (the “Board”), and the Board intends to express its
support for the Project, subject to the terms of this resolution; 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 as follows:
1.The Board hereby supports the concept of the Project.
2.The Board commits to working with the Redeveloper and the owner of the
Third-Party Parcel to explore options for redevelopment of the Redevelopment Property and the
Third-Party Parcel for the Project.
3.To make the Project financially feasible, the Authority may consider providing
financial assistance, including but not limited to the use of pooled tax increment derived from the
temporary spending plan approved by the City and the Authority, selling the Redevelopment
Property to the Redeveloper at a reduced cost, or the creation of a tax increment financing
district.
4.The Board agrees to cooperate with the Redeveloper in seeking additional funding
for the Project.
2
Adopted by the Board of Commissioners of the Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota this 18th day of September, 2023.
Erin Vrieze Daniels, Chair
ATTEST:
___________________, Secretary
RC125-396 (JAE)
900784v1
S B H W Y 7 7 T O W BI49477TH ST E
7 6 T H S T E16TH AVE SINTERSTATE 494 CEDARAVESBLOOMINGTON AVE78TH ST E
EB I494 TO SB HWY77 18TH AVE S17TH AVE SBLOOMINGTON AVE15TH AVE SWBI494TOSBHWY77WashingtonPark Nokomis - MinnesotaRiver RegionalTrailNine Mile CreekRegional Trail
±
2040 Comprehensive Plan Designations
I:\G IS\Community Develop me nt\Case Maps\2023 \HR A and Mathwig Trust C omp Pla n.mxd
Vets Memorial
Wood Lake Nature Center
TaftRichfield Lake
Donaldson
Augsburg
ChristianMonroe
Roosevelt
Nicollet
Washington
Sheridan
Lincoln Field
Madison
Jefferson Heredia
Garfield
Little Bob's
2040 Planned Land Use
Mixed Use
Regional Commercial
Medium Density Residential
Low Density Residential
Park
Right-of-Way (R OW)
HRA and Mathwig Trust Properties
0 250 500125ft
Subject Properties
MN Cycling Center
A world-class cycling and community fitness hub
in the heart of Richfield - the Urban Hometown
Our Mission and Vision
Build and operate a velodrome in MN that serves to engage,
inspire, and challenge current and future cyclists.
Build interest in and deliver excellent velodrome racing and
training. U<lize the physics of cycling to engage and educate
youth with real world science programming.
Bringing track cycling back to MN
For 30 years, the world-renowned NSC Velodrome in Blaine hosted thousands of riders and fans
over its 30 year lifespan. Hundreds of world and na<onal champions raced – and punched their
<ckets to the Olympics in Blaine. Hundreds of MN youth learned to ride – and became
champions. Through countless volunteer hours we surpassed the Velodrome’s expected 20-
year lifespan by 50%, but in 2020, MN weather finally caught up with this outdoor wood
structure. We strive to return Minnesota to the top of the cycling world. Despite the popularity
of the sport, only 3 indoor velodromes exist in the United States. The MN Cycling Center – and
Richfield - can take the lead in this exci<ng sport.
Velodrome racing – the history and future of cycling
More Olympic cycling medals are awarded to track cyclists
than in all other cycling disciplines combined. Some of the
earliest bicycle races were held on velodromes, including
many of the first races in the US in the 1890s, many right
here in MN. The track cycling discipline thrives today with
amateur and professional race circuits taking place year-
round throughout the world.
Track cycling builds skills for all riders, whether they are
world class athletes or casual riders. Velodromes have no
vehicle traffic to avoid. Track bikes are simple – yet cuXng
edge. They can be affordable and create an easy way for
riders to develop their cycling skills. Races are short, fast and
thrilling. The velodrome allows spectators to enjoy a full
evening of bike racing right from the edge of their seats!
Get a glimpse of the thrills of track cycling: h^ps://www.youtube.com/watch?v=44lTJ2c-Ql0
Mul;-purpose cycling, fitness and community ac;vity center
We hope to build a regional des<na<on for world-class cycling and entertainment events that
can host community residents for a range of ac<vi<es, including pickleball, basketball,
volleyball, futsal and more. Our local cycling programming will include youth development
programs, training and racing for local athletes drawing hundreds of riders each week. The
facility can also offer indoor walking opportuni<es for seniors, a unique concert and event space
and rooms for community mee<ngs and conferences. Poten<al retail spaces could include a
café/restaurant, bike shop and a “pro shop” for other sport par<cipants.
Our commitment to diversity
Diversifying and expanding the community of cyclists stands at
the core of our vision for the MN Cycling Center. Our facility
and programming will place significant emphasis on including
non-tradi<onal cyclists, especially people in underserved
communi<es. The NSC Velodrome was a na<onal model as
home to the largest field of FTW racers in the US.
ABC’s – The Science of Cycling
The MN Cycling Center believes in the power of bicycles to
reach youth and connect the unique physics of bicycles to the
STEM concepts that are vital knowledge for tomorrow ’s
workforce. For the past 5 years, we have partnered with
Minneapolis Public Schools to provide aker-school cycling-
centric STEM programs to elementary school students.
Our ABCs – the Science of Cycling curriculum teaches students how to ride confidently, ride
safely in groups, and maintain and repair their bikes. While we teach these basic bike skills, we
conduct STEM experiments that build on those cycling fundamentals. We pair lessons on flat
<re repair with discoveries based on the physics of air pressure, and much more. The love for
the bike connects the dots with the science in a way that engages and lasts. With the proposed
loca<on, students from Centennial Elementary and Richfield STEM/RDLS will be able to reach
this programming in less than 10 minutes on the City ’s safe bike infrastructure.
Expanding cycling op;ons in the Urban Hometown
There’s no be^er place for the MN Cycling Center than Richfield. The City ’s commitment to
cycling shows clearly through its designa<on as a Silver-level Bicycle Friendly Community, its
extensive network of on and off-street cycling routes, its regional trail connec<ons, and its
commitment to providing Safe Routes to School.
The City’s central loca<on – and the proximity of the proposed site, in par<cular – make
Richfield ideal for a regional amenity. The space provides unique accessibility and visibility for
millions of Twin Ci<ans and worldwide visitors each year. A few of the highlights of the space:
- Direct connec<on to the 76th St bike route and Nine Mile Regional Trail
- Easy, quick access to MSP airport for out-of-town racers and guests
- Easy access to the en<re Twin Ci<es via 494 and Cedar Ave
- Safe, quick access for Richfield’s elementary school students
- Proximity to the region’s other regional draws like the Mall of America
- High visibility for sponsor signage
- Loca<on within a Qualified Census Tract – offering easy access to programming for those
neighbors
Let’s ride together
The MN Cycling Center offers a unique regional
des<na<on and a wide range of new
programming for the residents of Richfield. The
proposed site near Washington Park is a great fit
for our proposed facility. A partnership between
Richfield and the MN Cycling Center will draw
thousands of visitors to the City every year.
Our partnership objec<ves include:
- Support for site control
- Support for pursuit of legisla<ve and other sources of funding
- Programming connec<ons with Richfield Parks and Recrea<on
Learn more at h^ps://mncyclingcenter.org