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10162023 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 O C TO B ER 16, 2023 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. C all into the open forum by dialing 1-415-655-0001 U se webinar access code: 2632 407 6388 and password: 1234. Approval of the Minutes A pproval of the 1) S pecial Housing and Redevelopment meeting of A ugust 21, 2023; and 2) the Regular Housing and Redevelopment A uthority meeting of S eptember 18, 2023. AG E N D A APPR O VAL 1.A pproval of the A genda 2.Consent Calendar contains several separate items which are acted upon by the H R A in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further H R A action on these items is necessary. However, any H R A Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for H R A discussion and action. All items listed on the Consent Calendar are recommended for approval. A .C onsideration of S ub-Grant A greements with Woodlawn Terrace C ooperative and Home S ource, Inc. for a L ow Income Housing Incentives A ccount Grant awarded to Woodlawn Terrace for affordable homeownership opportunities. S taff Report No. 24 R E S O L U T IO N S 3.C onsider a resolution approving the A mended and Restated B usiness S ubsidy P olicy. S taff Report No. 25 P U B LIC H E AR IN G S 4.P ublic hearing and consideration of the adoption of a resolution authorizing the sale of 6326 14th Avenue S outh and the approval of a C ontract for P rivate D evelopment with Nasadir A hmed and Mohamed Isse for the construction of a duplex through the Richfield Rediscovered P rogram. S taff Report No. 26 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.C laims 8.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. CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special HRA Work Session August 21, 2023 The meeting was called to order by Chair Erin Vrieze Daniels at 4:55 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 HRA members met with and interviewed applicant, John Young. Members of the HRA discussed the next steps in recruitment for the vacant seat. The work session was adjourned by unanimous consent at 5:23 p.m. Date Approved: October 16, 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 September 18, 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; John Young; and Gordon Hanson HRA Members Absent Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant Community Development Director; Jan Youngquist, Economic Development Manager; and Dustin Leslie, City Clerk. OATH OF OFFICE: COMMISSIONER YOUNG City Clerk Leslie administered the oath of office to Commissioner Young. Commissioner Supple nominated Commissioner Hayford Oleary to serve as Secretary. M/Supple S/Hanson to approve Commissioner Hayford Oleary nomination as Secretary of the Housing Redevelopment Authority. Motion carried: 5-0 OPEN FORUM Executive Director Poehlman answered two questions from the previous HRA meeting regarding tax subsidies and HRA by-laws. APPROVAL OF THE MINUTES M/Supple, S/Hayford Oleary to approve the 1) minutes of the special work session of July 29, 2023 and 2) the minutes of the regular Housing and Redevelopment Authority meeting of August 21, 2023. Motion carried: 5-0 HRA Meeting Minutes -2- September 18, 2023 ITEM #1 APPROVAL OF THE AGENDA M/Hanson, S/Hayford Oleary to approve the agenda. Motion carried: 5-0 ITEM #2 APPROVAL OF THE CONSENT CALENDAR Executive Director Poehlman presented the Consent Calendar. A. Consider an adjustment to the payment standard for the Section 8 Housing Choice Voucher Program (Staff Report No. 21) M/Hayford Oleary, S/Supple to approve the Consent Calendar. Motion Carried: 5-0 ITEM #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR None. ITEM #4 CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO MODIFY NEW HOME LOANS IN CERTAIN CIRCUMSTANCES. (STAFF REPORT #22). Assistant Director Urban gave the report. Commissioner Hayford Oleary asked if the home would need to stay owner-occupied. Assistant Director Urban stated it would need to stay owner-occupied. Chair Vrieze Daniels requested to change the recommended motion to include reporting to the HRA whenever there were any modifications to the laws. The other commissioners agreed. M/Supple, S/Hanson to adopt a resolution authorizing the Executive Director to modify New Home Loans in certain circumstances and to report any modifications to the HRA. Motion Carried: 5-0 ITEM #5 CONSIDER A RESOLUTION SUPPORTING A PROPOSED VELODROME PROJECT WITH THE MINNESOTA CYCLING CENTER (STAFF REPORT #23). HRA Meeting Minutes -3- September 18, 2023 Economic Development Manager Youngquist gave the report. Commissioner Hayford Oleary asked what would happen if there was another party interested in the property. Economic Development Manager Youngquist stated the Minnesota Cycling Center put money into escrow to cover the fees which would put the property on hold until June 2024. M/Hayford Oleary, S/Supple to approve a resolution supporting the proposed velodrome project with the Minnesota Cycling Center. Motion Carried: 5-0 Commissioner Supple indicated that she did receive emails of support from residents in the community for this project. Commissioner Hayford Oleary stated he had only heard positive things about the proposal. Commissioner Hanson stated he liked the concept and that it would be a unique, multi- use destination in Richfield. Commissioner Supple asked representatives from the Minnesota Cycling Center what kind of feedback they heard from PennFest. Jason Larty stated he had only heard positive feedback from residents. ITEM #6 HRA DISCUSSION ITEMS None. ITEM #7 EXECUTIVE DIRECTOR REPORT Executive Director Poehlman spoke about the Renovation Celebration taking place on October 7 and stated they were still looking for volunteers. ITEM #8 CLAIMS M/Supple, S/Hanson that the following claims be approved: U.S. BANK 9/18/2023 HRA Checks: #36932-36943 67,651.08 Section 8 Checks: #135121-135195 190,193.16 TOTAL $257,844.24 Motion carried: 5-0 HRA Meeting Minutes -4-September 18, 2023 ITEM #9 ADJOURNMENT The meeting was adjourned by unanimous consent at 7:23 p.m. Date Approved: October 16, 2023 Erin Vrieze Daniels HRA Chair Dustin Leslie Melissa Poehlman City Clerk Executive Director AGENDA SECTION:Consent Calendar AGENDA ITEM #2.A. STAFF REPORT NO. 24 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 10/16/2023 Julie Urban, Assistant Community Development DirectorREPORT PREPARED BY: EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director 10/13/2022 ITEM FOR COUNCIL CONSIDERATION: Consideration of Sub-Grant Agreements with Woodlawn Terrace Cooperative and Home Source, Inc. for a Low Income Housing Incentives Account Grant awarded to Woodlawn Terrace for affordable homeownership opportunities. EXECUTIVE SUMMARY: The Housing and Redevelopment Authority (HRA) was awarded a $192,000 Local Housing Incentives Account (LHIA) Affordable Homeownership Program Grant for Woodlawn Terrace, the manufactured home community located at 7421 Lyndale Avenue South. The Grant is to provide affordability gap, demolition and site preparation funding that will enable the Woodlawn Terrace Cooperative (WTC), the owners of the community, to add three new, double-wide manufactured units that will provide an affordable homeownership option for families earning less than 80 percent of the Area Median Income (AMI). WTC is working with Home Source, Inc. to install and sell the three units. Grant funds will be provided to WTC to demolish two abandoned units and prepare the sites for the new units. Grant funds will also be provided to Home Source, Inc. to cover costs of installation. Using LHIA Grant funds to cover these costs of up to $64,000 per unit, will allow Home Source, Inc. to sell the units at an estimated price between $120,000- $150,000, which will be affordable to income-qualified households. A second lien (no payments, no interest, a portion forgiven each year up to 15 years) will be placed on the three homes to ensure continued affordability in the event that the homebuyer sells the home to a non-qualified subsequent buyer. RECOMMENDED ACTION: By motion: Adopt a resolution approving Sub-Grant Agreements with Woodlawn Terrace Cooperative and Home Source, Inc. for a Low Income Housing Incentives Account Grant awarded to Woodlawn Terrace for affordable homeownership opportunities. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The current residents of Woodlawn Terrace formed the WTC in 2021 and purchased the underlying property from the long-time owner. There are 32 existing units in Woodlawn Terrace, and the WTC plans to add up to 21 new for-sale units over the next three years. In 2021, the HRA agreed to provide $350,000 in financial assistance to Woodlawn Terrace to upgrade utilities, including bringing the community onto the City's water system. An additional $140,000 was committed to demolish abandoned units and rehabilitate an existing permanent structure to be used as two rental housing units. On January 25, 2023, the HRA was awarded a $192,000 LHIA Grant for Woodlawn Terrace to bring in and sell affordably three, double-wide units suitable for families. B.POLICIES (resolutions, ordinances, regulations, statutes, exc): Assistance to Woodlawn Terrace meets several policy objectives of the HRA and City: preserving existing affordable housing, providing affordable homeownership opportunities, providing affordable rental housing opportunities, maintaining and replacing aging infrastructure, alleviating blighted conditions, and rehabilitating the housing stock. The assistance committed by the HRA to-date is helping to preserve and improve 32 existing affordable homes and to add up to 21 new affordable homes in the community, including three larger units suitable for families with children. Under the goal of Community Development, a desired outcome of the City's Strategic Plan is to maintain the City as an affordable place to live. Assistance to Woodlawn Terrace achieves this outcome by both preserving and creating affordable housing units. An additional goal of the Strategic Plan is to promote Equity and Inclusion in the community. Facilitating equitable outcomes in homeownership is also one of the intentions of the LHIA Affordable Homeownership Grant. WTC and Home Source, Inc. have committed to marketing and outreach to diverse communities. C.CRITICAL TIMING ISSUES: The deadline in the Sub-Grant Agreements is December 31, 2025, which matches that of the LHIA Grant. D.FINANCIAL IMPACT: The HRA was awarded $192,000 in LHIA Grant funds by the Metropolitan Council to provide affordability gap funds for the installation of three, family-sized new homes in Woodlawn Terrace. E.LEGAL CONSIDERATION: The HRA executed an agreement with the Metropolitan Council on March 22, 2023, for the LHIA Grant funds. While a Sub-Grant agreement is not required by the agreement, it is strongly recommended to ensure that the recipients of Grant funds operate under the parameters defined in the LHIA agreement. It is ultimately the HRA's responsibility to spend the Grant funds in accordance with the LIHA agreement. The HRA Attorney prepared the Sub-Grant Agreements. ALTERNATIVE RECOMMENDATION(S): Decide not to approve the Sub-Grant Agreements. PRINCIPAL PARTIES EXPECTED AT MEETING: NA ATTACHMENTS: Description Type Resolution Resolution Letter Sub-Grant Agreement Woodlawn Terrace Contract/Agreement Sub-Grant Agreement LHIA Contract/Agreement HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION NO. ______ RESOLUTION APPROVING DOCUMENTS RELATED TO LOCAL HOUSING INCENTIVES ACCOUNT GRANT FROM METROPOLITAN COUNCIL FOR WOODLAWN TERRACE MANUFACTURED HOME PARK WHEREAS, Woodlawn Terrace Cooperative, a Minnesota nonprofit corporation (the “Cooperative”), purchased and operates a manufactured home park on property located at 7421 Lyndale Avenue South in the City of Richfield (the “Project”); and WHEREAS, the Cooperative is working with Home Source, Inc. (Home Source), a seller of manufactured homes, to add up to 21 new manufactured home units to the manufactured home park, including three double-wide units at a price affordable to households earning less than 80 percent of the Area Median Income (AMI); and WHEREAS, in order to assist with the costs bringing in the three double-wide units and selling them affordably to income-qualified households, the Housing and Redevelopment Authority (HRA), on behalf of the Cooperative, applied for and received a Low Income Housing Incentives Account Affordable Homeownership grant (LHIA Grant) from the Metropolitan Council (Met Council) in the total sum of $192,000, which will be allocated to the Project; and WHEREAS, the proceeds of the LHIA Grant are authorized to be used for eligible costs of the Project (Grant-Eligible Activities), as described, along with other terms and conditions of the LHIA Grant, in the LHIA Grant Agreement (Grant Agreement), which was previously approved and executed by the HRA; and WHEREAS, the HRA intends to provide the proceeds of the LHIA Grant to the Cooperative and Home Source to provide financing for the Grant-Eligible Activities pursuant to two Subgrant Agreement sproposed to be entered into between the HRA and the Cooperative and the HRA and Home Source; and WHEREAS, there has been presented before the HRA the Subgrant Agreement in the amount of $120,750 with the Cooperative and the Subgrant Agreement in the amount of $71,250 with Home Source which reference the terms and conditions of the LHIA Grant and thereby require the Cooperative and Home Source to spend grant funds in accordance with the LHIA Grant terms and conditions; 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 Subgrant Agreement in the amount of $120,750 with the Cooperative and the Subgrant Agreement in the amount of $71,250 with Home Source for the payment of the Project Costs is hereby approved. 3.The Chair and the Executive Director are hereby authorized and directed to execute the Subgrant Agreements for and on behalf of the Authority as to be prepared by the HRA Attorney under the direction of the Executive Director. 4.This resolution shall be in full force and effect as of the date hereof. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of October, 2023. 2 Erin Vrieze Daniels, Chair ATTEST: Sean Hayford Oleary, Secretary SUB-GRANT AGREEMENT (Metropolitan Council Livable Communities Act Grant – Local Housing Incentives Account – Affordable Homeownership Grant Program) THIS SUB-GRANT AGREEMENT (the “Agreement”) is made as of this ___ day of _____________, 2023 (the “Effective Date”), between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a public body corporate and politic of the State of Minnesota (the “Grantee”), and WOODLAWN TERRACE COOPERATIVE, a Minnesota nonprofit cooperative (the “Sub-Grantee”). WHEREAS, the Grantee and Metropolitan Council entered into the Metropolitan Livable Communities Act Grant Agreement, effective as of January 25, 2023 (the “Grant Agreement”), a copy of which is attached hereto as EXHIBIT A and is incorporated herein and made part of this Agreement; and WHEREAS, the Grant Agreement provides that Metropolitan Council is to grant to the Grantee a sum not to exceed $192,000, a portion of which funds in the amount of $120,750 shall be used to reimburse the Sub- Grantee for tree removal, lot crowning, and demolition costs incurred in preparation for the creation of three new three-bedroom housing units to be sold to households with incomes of no more than eighty percent (80%) of the area median income (the “Project”) on the property legally described in EXHIBIT B attached hereto (the “Property”); and WHEREAS, the remainder of the funds derived from the Grant in the amount of $71,250 will be provided to Home Source Inc., a Minnesota corporation, pursuant to a separate Sub-Grant Agreement to reimburse Home Source Inc. for site preparation hard costs, including lot prep, utility connections, and other related costs; and WHEREAS, the Grantee and the Sub-Grantee have agreed for the Sub-Grantee to assume certain duties and responsibilities of the Grantee under the Grant Agreement in consideration of receiving funds provided for in the Grant Agreement and subject to the terms, conditions, and limitations set forth therein. NOW, THEREFORE, in consideration of the premises and the mutual promises set forth herein, the parties hereto covenant and agree as follows: 1.Grant Funds. The Grantee will distribute funds received under the Grant Agreement upon the continuing compliance by the Sub-Grantee with its obligations hereunder. The Sub-Grantee shall use the grant proceeds which are being provided by the Grantee under this Agreement solely for the Project, as further specified within the Livable Communities Project Summary (attached to the Grant Agreement). The grant proceeds shall not be used for any ineligible uses as described in the Grant Agreement. The Sub-Grantee understands and agrees that any reduction or termination of Local Housing Incentives Account funds made available to Metropolitan Council from the Local Housing Incentives Account of the Metropolitan Livable Communities Fund may result in a like reduction in the amount of the grant proceeds that will be made available to the Sub-Grantee pursuant to this Agreement. Pursuant to Section 2.08 of the Grant Agreement, the parties agree that none of the grant funds may be made available to any subgrantee or subrecipient without the prior written consent of Metropolitan Council. 2.Grantee’s Obligations. The Grantee will be responsible for reimbursing the Sub-Grantee for the costs of tree removal, crowning, and demolition (the “Activities”) up to a total amount of $120,750, which will be funded from the grant proceeds received from Metropolitan Council. The Grantee will disburse funds to the Sub-Grantee pursuant to this Agreement and the Grant Agreement, based upon reimbursement requests submitted by the Sub-Grantee and reviewed and approved by the Grantee and Metropolitan Council. Reimbursement requests must be accompanied by all inf ormation and 2 documentation needed by the Grantee pursuant to Section 2.12 of the Grant Agreement to submit a payment request form to Metropolitan Council. In order to ensure that all funds are drawn prior to the expiration of the grant, all payment requests must be received by the Grantee at least 60 days prior to the grant-term expiration date of December 31, 2025 unless extended by the Grantee in writing, otherwise any unrequested funds will be lost. The Grantee shall have no obligation to disburse any of these funds if, at the time of disbursement, the Sub-Grantee is in default under any of the terms of this Agreement. 3.Sub-Grantee’s Obligations. The Sub-Grantee shall perform and satisfy certain obligations of the Grantee under the Grant Agreement. Specifically, but without limiting the foregoing, the Sub-Grantee must perform all the following with respect to the Activities and in satisfaction of the Grant Agreement obligations: a.The Sub-Grantee will be responsible for performing all of the activities on the Property set forth in the Livable Communities Project Summary that is attached to the Grant Agreement (the “Activities”). All Activities provided by the Sub-Grantee under this Agreement must be performed to the reasonable satisfaction of the Grantee and Metropolitan Council and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Sub-Grantee will not receive payment for Activities found by the Grantee or Metropolitan Council to be reasonably unsatisfactory or performed in violation of federal, state, or local law. b.The Sub-Grantee will comply with all requirements and conditions of the Grant Agreement applicable to the Activities that, by their nature, must be performed by Sub -Grantee rather than Grantee and that are conditions of award of funds under the Grant Agreement. c.The Sub-Grantee must take all other actions as are needed to ensure compliance with the Grant Agreement and provide such information and assistance to the Grantee as may reasonably be needed to ensure the Grantee can comply with the requirements of the Grant Agreement that, by their nature, must be performed by the Grantee rather than the Sub-Grantee. d.In order to permit the Grantee and Metropolitan Council to monitor compliance with this Agreement, the Sub-Grantee shall permit any person that the Grantee or Metropolitan Council designates, at the expense of the Grantee or Metropolitan Council, to visit and inspect the Property, corporate books and financial records and documents of the Sub-Grantee as relevant to receipt and expenditure of the grant funds or this Agreement and to discuss its affairs, finances, and accounts (as they relate to receipt and expenditure of the grant funds or this Agreement) with the principal officers of Sub-Grantee, all at such reasonable times and as often as the Grantee or Metropolitan Council may reasonably request during the term of this Agreement and for a period of six (6) years after the termination of this Agreement. e.The Sub-Grantee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation or age and will take affirmative action to insure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 3 f.If the Sub-Grantee earns any interest or other income from the grant funds received from the Grantee under this Agreement, the Sub-Grantee must use the interest earnings or income only for the purposes of implementing the Activities. g.Pursuant to Section 3.01 of the Grant Agreement, because the Project includes affordable housing units, the Grantee is required to ensure that said housing units will remain “affordable,” as that term is defined in the Grant Agreement, for a minimum period of fifteen (15) years. Said obligation may be satisfied if other Project funding sources require an affordability term of at least fifteen (15) years. If at any point it is determined that the Sub-Grantee is not participating in said program or in another state or federal program that will ensure such affordability for the period required via formal instrument, or if there is any other reason to believe that there are no instruments in place to ensure the same, as required in the Grant Agreement, the Sub-Grantee agrees that it will execute any instruments to ensure such affordability, in a form that meets the Grantee’s satisfaction. A failure to adhere to this subsection may result , at Grantee’s request, in the Sub-Grantee being required to pay back grant funds received pursuant to this Agreement. h.Pursuant to Section 3.02 of the Grant Agreement, the Sub-Grantee agrees and acknowledges that it, as the Project owner, must adopt and implement an affirmative fair housing marketing plan for all housing units within the Project. To that end, the Sub- Grantee agrees that before it will be eligible for any grant funds under the terms of this Agreement, it shall adopt and implement such a plan, which shall substantially conform to affirmative fair housing marketing plans published by the U.S. Department of Housing and Urban Development (“HUD”) or sample affirmative fair housing marketing plans published by the Minnesota Housing Finance Agency. Such plan shall be made available to Grantee upon its request. A failure to adhere to this subsection may result, at the Grantee’s request, in the Sub-Grantee being required to pay back grant funds received pursuant to this Agreement. 4.Ownership and Condition of the Property. The Sub-Grantee makes the following representations: a.It is the owner of the Property in fee simple. b.To the best of the Sub-Grantee’s knowledge, the Property does not violate any applicable federal, state, or local law, ordinance, or regulation. c.There are no actions, suits, or proceedings pending, at law or in equity, or to the knowledge of the Sub-Grantee threatened, against or affecting it or the Property, and the Sub-Grantee is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority. d.The consummation of this transaction and performance of the Sub-Grantee’s obligations under this Agreement will not result in any breach of, or constitute a default under any mortgage, deed of trust, lease, bank loan, or credit agreement, partnership agreement, or other instrument which affects the Sub-Grantee, or to which the Sub-Grantee is a party. e.It has not used the Property in connection with the generation, disposal, storage, treatment, or transportation of hazardous substances and that the Property will not be so used during the term of this Agreement by the Sub-Grantee, its agents, tenants, or assigns, except in 4 compliance with a Minnesota Pollution Control Agency (“MPCA”) approved Development Response Action Plan. f.It has obtained or caused its contractors and/or affiliates to obtain, all the insurance described in Section 5 hereof and such policies of insurance are in full force and effect as of the date of this Agreement. g.The individual(s) signing this Agreement on behalf of the Sub-Grantee are duly authorized to execute this Agreement on the Sub-Grantee’s behalf. 5.Affirmative Covenants. The Sub-Grantee hereby covenants and agrees that it shall: a.Insurance. i.Purchase and maintain such insurance, or cause its contractors and/or affiliates to purchase and maintain such insurance, as will protect it from claims which may arise out of, or result from, the Activities completed under this Agreement, whether such operations be by the Sub-Grantee or by any subcontractor, or by anyone directly employed by them, or by anyone for whose acts any one of them may be liable. ii.For the term of this Agreement and in connection with the Activities completed pursuant to this Agreement, secure the following coverages and comply with all provisions noted, or cause its contractors and/or affiliates to secure, the following coverages and comply with all provisions noted. Upon written request by Grantee, during the term of this Agreement, the Sub-Grantee will provide certificates of insurance evidencing current coverages. Commercial General Liability Insurance: $1,500,000 per occurrence $2,000,000 general aggregate $2,000,000 products/completed operations total limit $1,000,000 personal injury and advertising injury This policy shall be written on an occurrence basis using ISO form CG 00 01 or its equivalent. The Sub-Grantee represents that there is no per claim limit under the Sub-Grantee’s occurrence-based policy. Coverage shall include contractual liability and XCU. Notwithstanding the foregoing, the Sub-Grantee will obtain, or cause its contractor and/or affiliates to obtain completed operations coverage for three (3) years after substantial completion of the Activities. Upon written request by the Grantee, the Sub-Grantee is required to add, or to cause its contractors and/or affiliates to add, the Grantee and any specified officials, employees, volunteers, and agents as Additional Insureds to the Commercial General Liability and Umbrella policies fulfilling the requirements of this Agreement with respect to liabilities caused in whole or in part by the Sub-Grantee’s acts or omissions, or the acts or omissions of those acting on the Sub-Grantee’s behalf in the performance of the ongoing operations, services, and completed operations of the Sub-Grantee under this Agreement. The coverage provides shall be primary and non-contributory. 5 Automobile Insurance: Coverage shall be provided for hired, non-owned, and owned automobiles. Minimum limits of $1,000,000 combined single limit. Workers’ Compensation and Employers’ Liability: Workers’ Compensation as required by Minnesota statutes. Employers’ Liability Limits: $500,000/$500,000/$500,000 Professional Liability/Errors and Omissions Coverage (if applicable): Per Claim Limit: $500,000 Per Occurrence Limit: $1,500,000 Aggregate Limit: $2,000,000 This policy is to be written as acceptable to the Grantee. Certificates of Insurance must indicate if the policy is issued on a claims-made or occurrence basis. If coverage is carried on a claims-made basis, then (1) the retroactive date shall be noted on the certificate and shall be prior to or the day of the inception of this Agreement; and (2) evidence of coverage shall be provided for three (3) years beyond expiration of this Agreement. iii.The Sub-Grantee shall provide the Grantee with prior notice of any lapse in the insurance required under this Agreement including cancellation, and/or non-renewal or material change in coverage. iv.The above sub-paragraphs establish minimum insurance requirements, and it is the sole responsibility of the Sub-Grantee to purchase and maintain, or cause its contractors and/or affiliates to purchase and maintain, additional coverages as the Sub-Grantee may deem necessary in connection with this Agreement. v.The Certificate of Insurance must demonstrate that the policy is issued pursuant to these requirements. Copies of insurance policies shall be submitted to the Grantee upon written request. vi.Certificates shall specifically indicate if the policy is written with an admitted or non-admitted carrier. Best’s Rating for the insurer shall be noted on the certificate and shall not be less than an A-. b.To the fullest extent permitted by law, the Sub-Grantee shall defend, indemnify, and hold harmless the Grantee and Metropolitan Council and their officials, employees, and agents from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the conduct or implementation of the Activities funded by this Agreement, except to the extent the claims, damages, losses, and expenses arise from the own negligence of the Grantee or Metropolitan Council. Claims included in this indemnification include without limitation any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes, Chapter 115B (CERCLA), as amended, United States Code Title 42, Section 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, 6 United States Code Title 42, Sections 6901 et seq. This obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which otherwise would survive the expiration or termination of this Agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or Metropolitan Council of any immunities or limits on liability provided by Minnesota Statutes Chapter 466 or other applicable state or federal law. c.Promptly pay and discharge all taxes, assessments, and other governmental charges imposed upon it or upon its income and profits or upon the Property, and any and all claims for labor, material or supplies or rental charges or charges of any other kind which, if unpaid, might by law become a lien or charge upon the Property, provided, however, that the Sub-Grantee shall not be required to pay any such tax, assessment, charge or claim, if the Sub-Grantee is contesting the validity of such matters, in good faith, through appropriate proceedings, and the Sub-Grantee sets aside on its books adequate reserves for the payment of such claims. d.Maintain the Property in good repair, working order, and condition and from time to time, make or cause to be made all necessary renewals, replacements, and repairs so that at all times the Sub-Grantee’s business can be conducted efficiently. e.Establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received from the Grantee. Notwithstanding the expiration and termination provisions of this Agreement, such accounts and records shall be kept and maintained by the Sub-Grantee for a period of six (6) years following the completion of the Activities for six (6) years following the expenditure of the grant funds, whichever occurs earlier. Accounting methods shall be in accordance with generally accepted accounting principles. f.The accounts and records of the Sub-Grantee shall be audited in the same manner as all other accounts and records of the Sub-Grantee are audited and may be audited or inspected on the Sub-Grantee’s premises or otherwise by individuals or organizations designated and authorized by the Grantee or Metropolitan Council at any time, following reasonable notification to the Sub-Grantee, for a period of six (6) years following the completion of the Activities or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes, Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices of the Sub-Grantee that are relevant to this Agreement are subject to examination by the Grantee and Metropolitan Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. g.The Sub-Grantee shall include in any contract or subcontract for the Activities appropriate provisions to ensure contractor or subcontractor compliance with all applicabl e state and federal laws and this Agreement, including, but not limited to, federal and state laws relating to stormwater discharges (i.e., Code of Federal Regulations, Title 40, parts 122 and 123 and Metropolitan Council’s 2040 Water Resources Policy Plan and the local water management plan). Along with such provisions, the Sub-Grantee shall require that contractors and subcontractors performing activities covered by this grant obtain all required permits, licenses, and certifications, and comply with all applicable state and federal Occupational Safety and Health Act regulations. 7 h.Construct the Project to meet all applicable local codes, rehabilitation standards, ordinances, and zoning regulations. The Grantee and Metropolitan Council assume no responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or approvals necessary to perform or complete the Activities. The Sub-Grantee and its contractors, if any, must comply with all applicable licensing, permitting, bonding, authorization, and approval requirements of federal, state, and local governmental and regulatory agencies, including conservation districts. i.Acknowledge the financial assistance provided by Metropolitan Council in promotional materials, press releases, reports and publications relating to the Activities which are funded in whole or in part with the grant funds. The acknowledgment must contain the following or comparable language: “Financing for this project was provided by the Metropolitan Council Metropolitan Livable Communities Fund.” Until the Activities are completed, the Sub-Grantee must ensure the above acknowledgment language, or alternative language approved by the authorized agent of Metropolitan Council, is included on all signs (if any) located on the Property or construction sites. The acknowledgments and signage should refer to “Metropolitan Council” (not “Met Council” or “Metro Council”). j.Provide the Grantee with all information that is needed by the Grantee to submit the required written progress reports and annual written reports required by Section 4.03 of the Grant Agreement. 6.Negative Covenants. The Sub-Grantee covenants and agrees that for the term of this Agreement, it will not: a.Merge or consolidate with or into any other entity. b.Default upon any contract or fail to pay any contract or fail to pay any of its debts or obligations as the same mature, subject to the applicable cure periods set forth in such a contract. c.Generate, dispose of, use, store, treat, or transport hazardous waste substances on, in, over or across the Property or allow the Sub-Grantee’s tenants to do so; provided, however, that Sub-Grantee may treat or remediate hazardous substances pursuant to an MPCA-approved Development Response Action Plan and the Sub-Grantee and its tenants may use, store, and transport hazardous substances on, over or across the Property as is reasonably necessary to the use of the Property as residential, commercial, or office property provided such use, storage, and transportation complies at all times with all applicable federal, state, and local statutes, codes, regulations, and ordinances. 7.Miscellaneous. a.All representations and warranties contained herein or made in writing by or on behalf of the Sub-Grantee in connection with the transactions contemplated hereby shall be made as of the Effective Date but survive the execution and delivery of this Agreement and the advances hereunder. All statements contained in any certificate or other instrument delivered by or on behalf of the Sub-Grantee pursuant thereto or in connection with the 8 transactions contemplated hereby shall constitute representations and warranties by the Sub-Grantee. b.This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties. c.No amendment, change, waiver, or modification of this Agreement shall be valid unless it is in a written document which Sub-Grantee, and the Grantee sign, and the Grantee’s waiver of any breach or default of any of the Sub-Grantee’s obligations, agreements, or covenants under this Agreement shall not be deemed to be a waiver of any subsequent breach of this Agreement, or any other obligation, agreement, or covenant. The Grantee’s forbearance in pursuing or enforcing a remedy for the Sub-Grantee’s breach of any of the obligations set forth in this Agreement shall not be deemed a waiver of the Grantee’s rights and remedies with respect to such breach. d.This Agreement may be executed simultaneously in two (2) or more counterparts, each of which shall be an original, but all of which shall constitute one (1) agreement. e.This Agreement supersedes and has merged into all prior oral agr eements between the Grantee and the Sub-Grantee regarding the Activities. f.Any notices required or contemplated hereunder shall be effective upon the placing thereof in the United States Mail, certified mail, return receipt requested, postage prepaid, and addressed as follows: To the Grantee: Housing and Redevelopment Authority in and for the City of Richfield, Minnesota 6700 Portland Avenue South Richfield, MN 55423 Attn: Executive Director To the Sub-Grantee: Woodlawn Terrace Cooperative 7421 Lyndale Avenue South Richfield, MN 55423 Attn: President g.This Agreement shall be interpreted and construed according to the laws of the State of Minnesota. All litigation regarding this Agreement shall be venued in the appropriate state or federal district court in Hennepin County, Minnesota. h.Neither party may assign or transfer its rights and obligations under this Agreement without the prior consent of the other party, provided that such party’s assignee or transferee assumes all obligations under this Agreement and the other party consents to the assignment in writing. Said agreement to assignment shall not unreasonably be withheld by the consenting party. 8.Relationship. It is agreed that nothing contained in this Agreement is intended or should be construed as creating the relationship of agents, partners, joint venturers, or associates between the parties hereto or as constituting the Sub-Grantee as the employee of the Grantee for any purpose or in any manner whatsoever. The Sub-Grantee is an independent contractor and neither it, nor its employees, agents, or representatives are employees of the Grantee. 9 9.MGDPA. All data collected, created, received, maintained or disseminated for any purpose in the course of the Sub-Grantee’s performance of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, and any other applicable state statutes, any state rules adopted to implement the Act and statutes, as well as federal statutes and regulations on data privacy. 10.Copyrights. The Sub-Grantee certifies that it (a) is the owner of any renderings, images, perspectives, sections, diagrams, photographs or other copyrightable materials (collectively “copyrightable materials”) that are in the grant application or submitted to the Grantee as part of the grant app lication process or that the Sub-Grantee is fully authorized to grant permissions regarding the copyrightable materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Sub-Grantee agrees that the Grantee and Metropolitan Council have a non-exclusive royalty-free license and all necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including but not limited to press releases, presentations, reports and on the Internet. The Sub-Grantee also agrees that it will not hold the Grantee or Metropolitan Council responsible for the unauthorized use of the copyrightable materials by third parties. 11.Restrictions on Loans or Grants by Sub-Grantee. The Sub-Grantee shall not use the grant proceeds for loans or grants to any subrecipient at any tier unless the Sub-Grantee obtains the prior written consent of Metropolitan Council. 12.Business Subsidy Law. The Sub-Grantee must comply, if appropriate and applicable, with any “business subsidy” requirements of Minnesota Statutes, Sections 116J.993 to 116J.995, that apply to the Sub-Grantee’s expenditures or uses of the grant funds. The grant will be used for the creation of affordable housing and subsidies for affordable housing are exempt from the Business Subsidy Law. 13.Expiration and Termination. This Agreement shall automatically expire upon the expiration or termination of the Grant Agreement, or upon the satisfactory completion of all obligations hereunder, whichever occurs first (the “Expiration Date”), except that the obligations contained in Section 3(g) and (h) hereof shall survive any such expiration. This Agreement may be terminated by the Grantee for cause at any time upon fourteen (14) calendar days’ written notice to the Sub-Grantee. “For cause” shall mean a material breach of this Agreement and any amendments to this Agreement. If this Agreement is terminated prior to the Expiration Date, the Sub-Grantee shall receive payment on a pro rata basis for eligible Activities that have been completed prior to the termination. Termination of this Agreement does not alter the authority of the Grantee or Metropolitan Council to recover grant funds on the basis of a later audit or other review, and does not alter the Sub-Grantee’s obligation to return any grant funds due to the Grantee or Metropolitan Council as a result of later audits or corrections. If the Grantee or Metropolitan Council determines that the Sub-Grantee has failed to comply with the terms and conditions of this Agreement, the Grant Agreement, or the applicable provisions of Metropolitan Livable Communities Act, the Grantee may take any action to protect the interests of the Grantee or Metropolitan Council and may refuse to disburse additional grant funds and may require the Sub-Grantee to return all or part of the grant funds already disbursed. 14.Effect of Grant. Issuance of this grant neither implies any Grantee or Metropolitan Council responsibility for the condition of the Property nor imposes any obligation on the Grantee or Metropolitan Council to participate in any activities on the Property. By awarding grant funds to the Sub-Grantee for the Activities and executing this Agreement, the Grantee and Metropolitan Council assume no responsibility for (a) any damage to persons, property, or the environment caused by implementation of the Activities; or (b) determining whether intended uses of the Property identified in the grant application or potential future uses of the Property, including any residential uses, are suitable for the Property. S-1 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands to this Sub-Grant Agreement as of the date and year first written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chair By Its Executive Director S-2 Execution page of the Sub-Grantee to the Sub-Grant Agreement, dated the date and year first written above. WOODLAWN TERRACE COOPERATIVE By Its President By Its Vice President A-1 EXHIBIT A GRANT AGREEMENT A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 A-10 A-11 A-12 A-13 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE PROPERTY The South five (5) acres of the North ten (10) acres and the North four feet (4') of the South twenty (20) acres of the North thirty (30) acres of the Northwest One Quarter of the Southwest One Quarter of Section 34, Township 28 North, Range 24, West of the Fourth Principal Meridian, except railroad right-of-way, Hennepin County, Minnesota. (Abstract Property) RC125-384 (JAE) 878466v1 SUB-GRANT AGREEMENT (Metropolitan Council Livable Communities Act Grant – Local Housing Incentives Account – Affordable Homeownership Grant Program) THIS SUB-GRANT AGREEMENT (the “Agreement”) is made as of this ___ day of _____________, 2023 (the “Effective Date”), between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a public body corporate and politic of the State of Minnesota (the “Grantee”), and HOME SOURCE INC., a Minnesota corporation (the “Sub-Grantee”). WHEREAS, the Grantee and Metropolitan Council entered into the Metropolitan Livable Communities Act Grant Agreement, effective as of January 25, 2023 (the “Grant Agreement”), a copy of which is attached hereto as EXHIBIT A and is incorporated herein and made part of this Agreement; and WHEREAS, the Grant Agreement provides that Metropolitan Council is to grant to the Grantee a sum not to exceed $192,000, a portion of which funds in the amount of $71,250 shall be used to reimburse the Sub- Grantee for site preparation hard costs, including lot preparation, utility connections, and other related costs, incurred in preparation for three new three-bedroom housing units to be sold to households with incomes of no more than eighty percent (80%) of the area median income (the “Project”) on the property legally described in EXHIBIT B attached hereto (the “Property”); and WHEREAS, the remainder of the funds derived from the Grant in the amount of $120,750 will be provided to Woodlawn Terrace Cooperative, a Minnesota nonprofit cooperative, pursuant to a separate Sub-Grant Agreement to reimburse Woodlawn Terrace Cooperative for tree removal and demolition costs incurred in preparation for the Project; and WHEREAS, following completion of the Project, the Sub-Grantee will (a) sell the housing units for a commensurate reduced sale price; (b) sell the housing units to households earning no more than eighty percent (80%) of the area median income, as adjusted by household size; and (c) submit income documentation to staff of the Grantee, as more fully described herein; and WHEREAS, the Grantee and the Sub-Grantee have agreed for the Sub-Grantee to assume certain duties and responsibilities of the Grantee under the Grant Agreement in consideration of receiving funds provided for in the Grant Agreement and subject to the terms, conditions, and limitations set forth therein. NOW, THEREFORE, in consideration of the premises and the mutual promises set forth herein, the parties hereto covenant and agree as follows: 1.Grant Funds. The Grantee will distribute funds received under the Grant Agreement upon the continuing compliance by the Sub-Grantee with its obligations hereunder. The Sub-Grantee shall use the grant proceeds which are being provided by the Grantee under this Agreement solely for the Project, as further specified within the Livable Communities Project Summary (attached to the Grant Agreement). The grant proceeds shall not be used for any ineligible uses as described in the Grant Agreement. The Sub-Grantee understands and agrees that any reduction or termination of Local Housing Incentives Account funds made available to Metropolitan Council from the Local Housing Incentives Account of the Metropolitan Livable Communities Fund may result in a like reduction in the amount of the grant proceeds that will be made available to the Sub-Grantee pursuant to this Agreement. Pursuant to Section 2.08 of the Grant Agreement, the parties agree that none of the grant funds may be made available to any subgrantee or subrecipient without the prior written consent of Metropolitan Council. 2 2.Grantee’s Obligations. The Grantee will be responsible for reimbursing the Sub-Grantee for the costs of performing site preparation, including crowning, utility connections, and other related costs, incurred in preparation for three new three-bedroom housing units to be sold to households with incomes of no more than eighty percent (80%) of the area median income (the “Activities”) up to a total amount of $71,250, which will be funded from the grant proceeds received from Metropolitan Council. The Grantee will disburse funds to the Sub-Grantee pursuant to this Agreement and the Grant Agreement, based upon reimbursement requests submitted by the Sub-Grantee and reviewed and approved by the Grantee and Metropolitan Council. Reimbursement requests must be accompanied by all information and documentation needed by the Grantee pursuant to Section 2.12 of the Grant Agreement to submit a payment request form to Metropolitan Council. In order to ensure that all funds are drawn prior to the expiration of the grant, all payment requests must be received by the Grantee at least 60 days prior to the grant -term expiration date of December 31, 2025, unless extended by the Grantee in writing, otherwise any unrequested funds will be lost. The Grantee shall have no obligation to disburse any of these funds if, at the time of disbursement, the Sub-Grantee is in default under any of the terms of this Agreement. 3.Sub-Grantee’s Obligations. The Sub-Grantee shall perform and satisfy certain obligations of the Grantee under the Grant Agreement. Specifically, but without limiting the foregoing, the Sub-Grantee must perform all the following with respect to the Activities and in satisfaction of the Grant Agree ment obligations: a.The Sub-Grantee is not the owner of the Property. The Sub-Grantee has been hired by the Owner of the Property to perform site preparation, including lot preparation, utility connections, and other related costs, incurred in preparation for three new three-bedroom housing units to be sold to households with incomes of no more than eighty percent (80%) of the area median income. All Activities provided by the Sub-Grantee under this Agreement must be performed to the reasonable satisfaction of the Grantee and Metropolitan Council and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Sub-Grantee will not receive payment for Activities found by the Grantee or Metropolitan Council to be reasonably unsatisfactory or performed in violation of federal, state, or local law. b.The Sub-Grantee will comply with all requirements and conditions of the Grant Agreement applicable to the Activities that, by their nature, must be performed by Sub -Grantee rather than Grantee and that are conditions of award of funds under the Grant Agreement. c.The Sub-Grantee must take all other actions as are needed to ensure compliance with the Grant Agreement and provide such information and assistance to the Grantee as may reasonably be needed to ensure the Grantee can comply with the requirements of the Grant Agreement that, by their nature, must be performed by the Grantee rather than the Sub-Grantee. d.In order to permit the Grantee and Metropolitan Council to monitor compliance with this Agreement, the Sub-Grantee shall permit any person that the Grantee or Metropolitan Council designates, at the expense of the Grantee or Metropolitan Council, to visit and inspect the Property, corporate books and financial records and documents of the Sub-Grantee as relevant to receipt and expenditure of the grant funds or this Agreement and to discuss its affairs, finances, and accounts (as they relate to receipt and expenditure of the grant funds or this Agreement) with the principal officers of Sub-Grantee, all at such reasonable times and as often as the Grantee or Metropolitan Council may reasonably request during the term of this Agreement and for a period of six (6) years after the termination of this Agreement. 3 e.The Sub-Grantee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation or age and will take affirmative action to insure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. f.If the Sub-Grantee earns any interest or other income from the grant funds received from the Grantee under this Agreement, the Sub-Grantee must use the interest earnings or income only for the purposes of implementing the Activities. g.Pursuant to Section 3.01 of the Grant Agreement, because the Project includes affordable housing units, the Grantee is required to ensure that said housing units will remain “affordable,” as that term is defined in the Grant Agreement, for a minimum period of fifteen (15) years. Said obligation may be satisfied if other Project funding sources require an affordability term of at least fifteen (15) years. If at any point it is determined that the Sub-Grantee is not participating in said program or in another state or federal program that will ensure such affordability for the period required via formal instrument, or if there is any other reason to believe that there are no instruments in place to ensure the same, as required in the Grant Agreement, the Sub-Grantee agrees that it will execute any instruments to ensure such affordability, in a form that meets the Grantee’s satisfaction. A failure to adhere to this subsection may result, at Grantee’s request, in the Sub-Grantee being required to pay back grant funds received pursuant to this Agreement. 4.Ownership and Condition of the Property. The Sub-Grantee makes the following representations: a.The Sub-Grantee is not an owner of the Property. The Sub-Grantee has been hired by the Owner of the Property to perform site preparation, including lot preparation, utility connections, and other related costs, incurred in preparation for three new three-bedroom housing units to be sold to households with incomes of no more than eighty percent (80%) of the area median income. b.It has obtained or caused its contractors and/or affiliates to obtain, all the insurance described in Section 5 hereof and such policies of insurance are in full force and effect as of the date of this Agreement. c.The individual(s) signing this Agreement on behalf of the Sub-Grantee are duly authorized to execute this Agreement on the Sub-Grantee’s behalf. 5.Affirmative Covenants. The Sub-Grantee hereby covenants and agrees that it shall: a.Insurance. i.Purchase and maintain such insurance, or cause its contractors and/or affiliates to purchase and maintain such insurance, as will protect it from claims which may arise out of, or result from, the Activities completed under this Agreement, whether such operations be by the Sub-Grantee or by any subcontractor, or by anyone directly employed by them, or by anyone for whose acts any one of them may be liable. 4 ii.For the term of this Agreement and in connection with the Activities completed pursuant to this Agreement, secure the following coverages and comply with all provisions noted, or cause its contractors and/or affiliates to secure, the following coverages and comply with all provisions noted. Upon written request by Grantee, during the term of this Agreement, the Sub-Grantee will provide certificates of insurance evidencing current coverages. Commercial General Liability Insurance: $1,500,000 per occurrence $2,000,000 general aggregate $2,000,000 products/completed operations total limit $1,000,000 personal injury and advertising injury This policy shall be written on an occurrence basis using ISO form CG 00 01 or its equivalent. The Sub-Grantee represents that there is no per claim limit under the Sub-Grantee’s occurrence-based policy. Coverage shall include contractual liability and XCU. Notwithstanding the foregoing, the Sub-Grantee will obtain, or cause its contractor and/or affiliates to obtain completed operations coverage for three (3) years after substantial completion of the Activities. Upon written request by the Grantee, the Sub-Grantee is required to add, or to cause its contractors and/or affiliates to add, the Grantee and any specified officials, employees, volunteers, and agents as Additional Insureds to the Commercial General Liability and Umbrella policies fulfilling the requirements of this Agreement with respect to liabilities caused in whole or in part by the Sub-Grantee’s acts or omissions, or the acts or omissions of those acting on the Sub-Grantee’s behalf in the performance of the ongoing operations, services, and completed operations of the Sub-Grantee under this Agreement. The coverage provides shall be primary and non-contributory. Automobile Insurance: Coverage shall be provided for hired, non-owned, and owned automobiles. Minimum limits of $1,000,000 combined single limit. Workers’ Compensation and Employers’ Liability: Workers’ Compensation as required by Minnesota statutes. Employers’ Liability Limits: $500,000/$500,000/$500,000 Professional Liability/Errors and Omissions Coverage (if applicable): Per Claim Limit: $500,000 Per Occurrence Limit: $1,500,000 Aggregate Limit: $2,000,000 This policy is to be written as acceptable to the Grantee. Certificates of Insurance must indicate if the policy is issued on a claims-made or occurrence basis. If coverage is carried on a claims-made basis, then (1) 5 the retroactive date shall be noted on the certificate and shall be prior to or the day of the inception of this Agreement; and (2) evidence of coverage shall be provided for three (3) years beyond expiration of this Agreement. iii.The Sub-Grantee shall provide the Grantee with prior notice of any lapse in the insurance required under this Agreement including cancellation, and/or non-renewal or material change in coverage. iv.The above sub-paragraphs establish minimum insurance requirements, and it is the sole responsibility of the Sub-Grantee to purchase and maintain, or cause its contractors and/or affiliates to purchase and maintain, additional coverages as the Sub-Grantee may deem necessary in connection with this Agreement. v.The Certificate of Insurance must demonstrate that the policy is issued pursuant to these requirements. Copies of insurance policies shall be submitted to the Grantee upon written request. vi.Certificates shall specifically indicate if the policy is written with an admitted or non-admitted carrier. Best’s Rating for the insurer shall be noted on the certificate and shall not be less than an A-. b.To the fullest extent permitted by law, the Sub-Grantee shall defend, indemnify, and hold harmless the Grantee and Metropolitan Council and their officials, employees, and agents from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the conduct or implementation of the Activities funded by this Agreement, except to the extent the claims, damages, losses, and expenses arise from the own negligence of the Grantee or Metropolitan Council. Claims included in this indemnification include without limitation any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes, Chapter 115B (CERCLA), as amended, United States Code Title 42, Section 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code Title 42, Sections 6901 et seq. This obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which otherwise would survive the expiration or termination of this Agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or Metropolitan Council of any immunities or limits on liability provided by Minnesota Statutes Chapter 466 or other applicable state or federal law. c.Maintain the Property in good repair, working order, and condition and from time to time, make or cause to be made all necessary renewals, replacements, and repairs so that at all times the Sub-Grantee’s business can be conducted efficiently. d.Establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received from the Grantee. Notwithstanding the expiration and termination provisions of this Agreement, such accounts and records shall be kept and maintained by the Sub-Grantee for a period of six (6) years following the completion of the Activities for six (6) years following the expenditure of the grant funds, whichever occurs earlier. Accounting methods shall be in accordance with generally accepted accounting principles. 6 e.The accounts and records of the Sub-Grantee shall be audited in the same manner as all other accounts and records of the Sub-Grantee are audited and may be audited or inspected on the Sub-Grantee’s premises or otherwise by individuals or organizations designated and authorized by the Grantee or Metropolitan Council at any time, following reasonable notification to the Sub-Grantee, for a period of six (6) years following the completion of the Activities or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes, Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices of the Sub-Grantee that are relevant to this Agreement are subject to examination by the Grantee and Metropolitan Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. f.The Sub-Grantee shall include in any contract or subcontract for the Activities appropriate provisions to ensure contractor or subcontractor compliance with all applicable state and federal laws and this Agreement, including, but not limited to, federal and state laws relating to stormwater discharges (i.e., Code of Federal Regulations, Title 40, parts 122 and 123 and Metropolitan Council’s 2040 Water Resources Policy Plan and the local water management plan). Along with such provisions, the Sub-Grantee shall require that contractors and subcontractors performing activities covered by this grant obtain all required permits, licenses, and certifications, and comply with all applicable state and federal Occupational Safety and Health Act regulations. g.Construct the Project to meet all applicable local codes, rehabilitation standards, ordinances, and zoning regulations. The Grantee and Metropolitan Council assume no responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or approvals necessary to perform or complete the Activities. The Sub-Grantee and its contractors, if any, must comply with all applicable licensing, permitting, bonding, authorization, and approval requirements of federal, state, and local governmental and regulatory agencies, including conservation districts. h.Acknowledge the financial assistance provided by Metropolitan Council in promotional materials, press releases, reports and publications relating to the Activities which are funded in whole or in part with the grant funds. The acknowledgment must contain the following or comparable language: “Financing for this project was provided by the Metropolitan Council Metropolitan Livable Communities Fund.” Until the Activities are completed, the Sub-Grantee must ensure the above acknowledgment language, or alternative language approved by the authorized agent of Metropolitan Council, is included on all signs (if any) located on the Property or construction sites. The acknowledgments and signage should refer to “Metropolitan Council” (not “Met Council” or “Metro Council”). i.Provide the Grantee with all information that is needed by the Grantee to submit the required written progress reports and annual written reports required by Section 4.03 of the Grant Agreement. j.Following the completion of the Project, the Sub-Grantee shall (i) sell the housing units for a commensurate sale price; and (ii) sell the housing units to households earning no more than eighty percent (80%) of the area median income, as adjusted by household size. 7 k.Prior to the sale of any housing units, the Sub-Grantee shall submit income documentation of the potential purchaser to the Grantee for review. Upon determination of eligibility, the Grantee shall provide written confirmation to the Sub-Grantee prior to the sale of the housing unit. 6.Negative Covenants. The Sub-Grantee covenants and agrees that for the term of this Agreement, it will not: a.Merge or consolidate with or into any other entity. b.Default upon any contract or fail to pay any contract or fail to pay any of its debts or obligations as the same mature, subject to the applicable cure periods set forth in such a contract. c.Generate, dispose of, use, store, treat, or transport hazardous waste substances on, in, over or across the Property or allow the Sub-Grantee’s tenants to do so; provided, however, that Sub-Grantee may treat or remediate hazardous substances pursuant to an MPCA-approved Development Response Action Plan and the Sub-Grantee and its tenants may use, store, and transport hazardous substances on, over or across the Property as is reasonably necessary to the use of the Property as residential, commercial, or office property provided such use, storage, and transportation complies at all times with all applicable federal, state, and local statutes, codes, regulations, and ordinances. 7.Miscellaneous. a.All representations and warranties contained herein or made in writing by or on behalf of the Sub-Grantee in connection with the transactions contemplated hereby shall be made as of the Effective Date but survive the execution and delivery of this Agreement and the advances hereunder. All statements contained in any certificate or other instrument delivered by or on behalf of the Sub-Grantee pursuant thereto or in connection with the transactions contemplated hereby shall constitute representations and warranties by the Sub-Grantee. b.This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties. c.No amendment, change, waiver, or modification of this Agreement shall be valid unless it is in a written document which Sub-Grantee, and the Grantee sign, and the Grantee’s waiver of any breach or default of any of the Sub-Grantee’s obligations, agreements, or covenants under this Agreement shall not be deemed to be a waiver of any subsequent breach of this Agreement, or any other obligation, agreement, or covenant. The Grantee’s forbearance in pursuing or enforcing a remedy for the Sub-Grantee’s breach of any of the obligations set forth in this Agreement shall not be deemed a waiver of the Grantee’s rights and remedies with respect to such breach. d.This Agreement may be executed simultaneously in two (2) or more counterparts, each of which shall be an original, but all of which shall constitute one (1) agreement. e.This Agreement supersedes and has merged into all prior oral agreements between the Grantee and the Sub-Grantee regarding the Activities. 8 f.Any notices required or contemplated hereunder shall be effective upon the placing thereof in the United States Mail, certified mail, return receipt requested, postage prepaid, and addressed as follows: To the Grantee: Housing and Redevelopment Authority in and for the City of Richfield, Minnesota 6700 Portland Avenue South Richfield, MN 55423 Attn: Executive Director To the Sub-Grantee: Home Source 14500 Burnhaven Drive – Suite 139 Burnsville, MN 55306 Attn: Dona or Butch Kisor g.This Agreement shall be interpreted and construed according to the laws of the State of Minnesota. All litigation regarding this Agreement shall be venued in the appropriate state or federal district court in Hennepin County, Minnesota. h.Neither party may assign or transfer its rights and obligations under this Agreement without the prior consent of the other party, provided that such party’s assignee or transferee assumes all obligations under this Agreement and the other party consents to the assignment in writing. Said agreement to assignment shall not unreasonably be withheld by the consenting party. 8.Relationship. It is agreed that nothing contained in this Agreement is intended or should be construed as creating the relationship of agents, partners, joint venturers, or associates between the parties hereto or as constituting the Sub-Grantee as the employee of the Grantee for any purpose or in any manner whatsoever. The Sub-Grantee is an independent contractor and neither it, nor its employees, agents, or representatives are employees of the Grantee. 9.MGDPA. All data collected, created, received, maintained or disseminated for any purpose in the course of the Sub-Grantee’s performance of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, and any other applicable state statutes, any state rules adopted to implement the Act and statutes, as well as federal statutes and regulations on data privacy. 10.Copyrights. The Sub-Grantee certifies that it (a) is the owner of any renderings, images, perspectives, sections, diagrams, photographs or other copyrightable materials (collectively “copyrightable materials”) that are in the grant application or submitted to the Grantee as part of the grant application process or that the Sub-Grantee is fully authorized to grant permissions regarding the copyright able materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Sub-Grantee agrees that the Grantee and Metropolitan Council have a non -exclusive royalty-free license and all necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including but not limited to press releases, presentations, reports and on the Internet. The Sub-Grantee also agrees that it will not hold the Grantee or Metropolitan Council responsible for th e unauthorized use of the copyrightable materials by third parties. 9 11.Restrictions on Loans or Grants by Sub-Grantee. The Sub-Grantee shall not use the grant proceeds for loans or grants to any subrecipient at any tier unless the Sub-Grantee obtains the prior written consent of Metropolitan Council. 12.Business Subsidy Law. The Sub-Grantee must comply, if appropriate and applicable, with any “business subsidy” requirements of Minnesota Statutes, Sections 116J.993 to 116J.995, that apply to the Sub-Grantee’s expenditures or uses of the grant funds. The grant will be used for the creation of affordable housing and subsidies for affordable housing are exempt from the Business Subsidy Law. 13.Expiration and Termination. This Agreement shall automatically expire upon the expiration or termination of the Grant Agreement, or upon the satisfactory completion of all obligations hereunder, whichever occurs first (the “Expiration Date”), except that the obligations contained in Section 3(g) and (h) hereof shall survive any such expiration. This Agreement may be terminated by the Grantee for cause at any time upon fourteen (14) calendar days’ written notice to the Sub-Grantee. “For cause” shall mean a material breach of this Agreement and any amendments to this Agreement. If this Agreement is terminated prior to the Expiration Date, the Sub-Grantee shall receive payment on a pro rata basis for eligible Activities that have been completed prior to the termination. Termination of this Agreement does not alter the authority of the Grantee or Metropolitan Council to recover grant funds on the basis of a later audit or other review, and does not alter the Sub-Grantee’s obligation to return any grant funds due to the Grantee or Metropolitan Council as a result of later audits or corrections. If the Grantee or Metropolitan Council determines that the Sub-Grantee has failed to comply with the terms and conditions of this Agreement, the Grant Agreement, or the applicable provisions of Metropolitan Livable Communities Act, the Grantee may take any action to protect the interests of the Grantee or Metropolitan Council and may refuse to disburse additional grant funds and may require the Sub-Grantee to return all or part of the grant funds already disbursed. 14.Effect of Grant. Issuance of this grant neither implies any Grantee or Metropolitan Council responsibility for the condition of the Property nor imposes any obligation on the Grantee or Metropolitan Council to participate in any activities on the Property. By awarding grant funds to the Sub-Grantee for the Activities and executing this Agreement, the Grantee and Metropolitan Council assume no responsibility for (a) any damage to persons, property, or the environment caused by implementation of the Activities; or (b) determining whether intended uses of the Property identified in the grant application or potential future uses of the Property, including any residential uses, are suitable for the Property. S-1 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands to this Sub-Grant Agreement as of the date and year first written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chair By Its Executive Director S-2 Execution page of the Sub-Grantee to the Sub-Grant Agreement, dated the date and year first written above. HOME SOURCE INC. By Its A-1 EXHIBIT A GRANT AGREEMENT A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 A-10 A-11 A-12 A-13 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE PROPERTY The South five (5) acres of the North ten (10) acres and the North four feet (4') of the South twenty (20) acres of the North thirty (30) acres of the Northwest One Quarter of the Southwest One Quarter of Section 34, Township 28 North, Range 24, West of the Fourth Principal Meridian, except railroad right-of-way, Hennepin County, Minnesota. (Abstract Property) RC125-384 (JAE) 878719v1 AGENDA SECTION: RESOLUTIONS AGENDA ITEM # 3. STAFF REPORT NO. 25 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 10/16/2023 Jan Youngquist, Economic Development ManagerREPORT PREPARED BY: EXECUTIVE DIRE CTOR RE VIEW: Melissa Poehlman, Executive Director 10/3/2023 ITEM FOR COUNCIL CONSIDERATION: Consider a resolution approving the Amended and Restated Business Subsidy Policy. EXECUTIVE SUMMARY: The Business Subsidy Act as defined in Minnesota Statutes regulates business subsidies and requires local units of government to adopt criteria for awarding business subsidies after conducting a public hearing. The Business Subsidy Act states that: Business subsidies must meet a public purpose, which may include goals for job creation or retention, or other goals such as increasing the tax base, removing blight, or catalyzing future redevelopment. A business subsidy recipient must enter into a business subsidy agreement with the grantor. The business subsidy agreement must include the job and wage goals and the recipient's obligation if the goals are not met. However, after a public hearing, the wage and job goals may be set to zero if the creation or retention of jobs is determined not to be the primary goal. The Housing and Redevelopment Authority (HRA) and the City Council (Council) adopted the Existing Business Subsidy Policy in 2002. The Economic Development Authority (EDA) was established in 2017 and is also subject to the Existing Business Subsidy Policy. Much of the financial assistance provided by the HRA and EDA is not defined as a business subsidy by the Business Subsidy Act, such as assistance for housing development or assistance of $150,000 or less. However, financial assistance of $25,000 or more and business loans of $75,000 or more are subject to the Business Subsidy Act’s reporting requirements. The State Legislature amended the Business Subsidy Act after the Existing Business Subsidy Policy was adopted. Staff worked with legal counsel to draft the Amended and Restated Business Subsidy Policy, which is updated to comply with the amended Business Subsidy Act. The substantive changes include: The wage floor requirements were increased from 110 percent of the Federal minimum wage in the Existing Business Subsidy Policy to 125 percent of the State minimum wage. The goals outside of job creation and retention were revised to include a project that results in redevelopment along priority commercial corridors or in the downtown area, to help meet the outcomes of the City’s 2023-2026 Strategic Plan. A clause was added stating that all references to the Business Subsidy Act include any and all amendments made after the Amended and Restated Business Subsidy Policy is approved. The Council held a public hearing on behalf of the City, HRA and EDA on September 12. One person spoke at the public hearing; however, the comments were not specific to the Business Subsidy Policy. The Council adopted the Amended and Restated Business Subsidy Policy on September 26. RECOMMENDED ACTION: By motion: Adopt a resolution approving the Amended and Restated Business Subsidy Policy. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT In 1999, the State Legislature enacted a law (the Business Subsidy Act) that regulates business subsidies by state and local units of government and requires the government agency to adopt criteria for awarding business subsidies after conducting a public hearing. The HRA conducted a public hearing and adopted a Business Subsidy Policy on November 15, 1999. The Council conducted a public hearing and adopted the Business Subsidy Policy on November 22, 1999. In the 2000 State Legislative Session, the Business Subsidy Act was amended. The HRA conducted a public hearing and adopted the Existing Business Subsidy Policy on May 20, 2002. The Council conducted a public hearing and adopted the Existing Business Subsidy Policy on June 11, 2002. The EDA was established in 2017 to promote and provide incentives for economic development in Richfield and is subject to the Existing Business Subsidy Policy. The State Legislature made amendments to the Business Subsidy Act after the adoption of the Existing Business Subsidy Policy. The Council conducted a public hearing on the Amended and Restated Business Subsidy Policy on September 12. A clause was added to the Amended and Restated Business Subsidy Policy stating that the business subsidy agreement must include a requirement for the recipient to comply with labor laws. The Council adopted the Amended and Restated Business Subsidy Policy on September 26. B.POLICIES (resolutions, ordinances, regulations, statutes, exc): Minnesota Statutes, Sections 116J.993 through 116J.995, (the Business Subsidy Act) regulates business subsidies and requires state and local units of government to adopt criteria for awarding business subsidies after conducting a public hearing. The Business Subsidy Act states that: Business subsidies must meet a public purpose, which may include goals for job creation or retention, or other goals such as increasing the tax base, removal or blight, or catalyzing future redevelopment. Some financial assistance is not considered a business subsidy, including assistance for housing, contamination cleanup, and certain redevelopment projects, as well as financial assistance of $150,000 or less. A business subsidy recipient must enter into a business subsidy agreement with the grantor. The business subsidy agreement must include job and wage goals and the recipient's obligation if the goals are not met. After a public hearing, if the creation or retention of jobs is determined not to be a goal, the wage and job goals may be set to zero. Public hearings must be conducted for business subsidies that exceed $150,000. The business subsidy recipient and the City are required to submit annual reports to the Minnesota Department of Employment and Economic Development (DEED) regarding the business subsidy. Reporting to DEED is also required for financial assistance of $25,000 or more and business loans of $75,000 or more. C.CRITICAL TIMING ISSUES: The HRA is currently subject to the Existing Business Subsidy Policy. The Council conducted a public hearing on September 12 and adopted the Amended and Restated Business Subsidy Policy on September 26. The public hearing was also conducted on behalf of the HRA, which allows the HRA to consider adopting the Amended and Restated Business Subsidy Policy and be consistent with the Council's action. D.FINANCIAL IMPACT: None. E.LEGAL CONSIDERATION: Legal counsel drafted the Amended and Restated Business Subsidy Policy to comply with Minnesota Statutes, Sections 116J.993 through 116J.995. A public hearing must be conducted prior to adopting criteria for awarding business subsidies. Notice that the Council would hold a public hearing was published in the Richfield Sun Current on August 31, 2023. The Council conducted a public hearing on behalf of the City, HRA, and EDA on September 12, 2023. ALTERNATIVE RECOMMENDATION(S): None. PRINCIPAL PARTIES EXPECTED AT MEETING: N/A ATTACHMENTS: Description Type Resolution Resolution Letter Amended and Restated Business Subsidy Policy Backup Material Existing Business Subsidy Policy 2002 Backup Material HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION NO. ______ RESOLUTION APPROVING AMENDED AND RESTATED BUSINESS SUBSIDY POLICY BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the “Authority”) as follows: Section 1. Recitals. 1.01. The Authority was created pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of Richfield, Minnesota (the “City”). 1.02. Before awarding any “business subsidy” as defined in Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the “Business Subsidy Act”), the Authority is required to adopt criteria regarding such subsidies after holding a public hearing. 1.03. The staff of the City, the Authority, and the Richfield Economic Development Authority have reviewed the existing business subsidy policy and have amended and restated the Business Subsidy Policy. 1.04. The Board has reviewed the Amended and Restated Business Subsidy Policy on file at the Municipal Center. On September 12, 2023, the City Council, on behalf of the City, the Authority, and the Economic Development Authority, held a duly noticed public hearing, at which all interested persons were given an opportunity to be heard. Section 2. Business Subsidy Policy Approved. 2.01. The Board approves the Amended and Restated Business Subsidy Policy on file at the Municipal Center, which criteria supersede any prior business subsidy policy or criteria adopted by the Authority. 2.02. Authority staff is authorized to transmit a copy of the Amended and Restated Business Subsidy Policy to the Minnesota Department of Employment and Economic Development in accordance with the Business Subsidy Act. Adopted by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16ᵗʰ day of October, 2023. Erin Vrieze Daniels, Chair _____________________________ ATTEST: Sean Hayford Oleary, Secretary ______________________________ Error! Unknown document property name. 1 ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD, MINNESOTA; HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA; AND CITY OF RICHFIELD, MINNESOTA AMENDED AND RESTATED BUSINESS SUBSIDY POLICY I.Purpose This document sets forth the business subsidy policies and specific criteria to be considered by the Richfield Economic Development Authority, the Housing and Redevelopment Authority and the City of Richfield, in evaluating requests for Business Subsidies, including Tax Increment Financing, Tax Abatement, or other financial assistance programs that may become available through the Grantor. In adopting these criteria, it is the intent of the Grantor to comply with Minnesota Statutes, Sections 116J.993 through 116J.995, as amended. The governing bodies of each Grantor have adopted this policy and these criteria after a duly noticed public hearing held in accordance with the Business Subsidy Act. II.Definitions “Benefit Date" means the date that the recipient receives the Business Subsidy. If the Business Subsidy involves the purchase, lease, or donation of physical equipment, then the benefit date begins when the recipient puts the equipment into service. If the Business Subsidy is for improvements to property, then the benefit date refers to the earliest date of either: a) When the improvements are finished for the entire project; or b) When a business occupies the property. If a business occupies the property and the subsidy Grantor expects that other businesses will also occupy the same property, the Grantor may assign a separate benefit date for each business when it first occupies the property. “Business Subsidy” means a City, HRA, or EDA grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business. Certain forms of financial assistance set forth in Section 116J.993, subd. 3 of the Business Subsidy Act are not considered a Business Subsidy. “Business Subsidy Act” means Minnesota Statutes Section 116J.993 to 116J.995, as hereafter amended. Error! Unknown document property name. 2 “Business Subsidy Agreement” means an agreement between a Grantor and a Recipient that meets the requirements of Section 116J.994, subd. 3 of the Business Subsidy Act. The Business Subsidy Agreement may be incorporated into a broader Development Agreement for a project. “Business Subsidy Report” means the annual report submitted each year by a business receiving a Business Subsidy. The report is submitted by the local government unit in order to comply with Section 116J.994 Subd. 7 (b) of the Business Subsidy Act. Both the Recipient and the Grantor must comply with the business subsidy reporting and monitoring requirements of the Business Subsidy Act. “City” means the City of Richfield, Minnesota. “Criteria” means the standards upon which the Grantor will evaluate requests for a Business Subsidy to a private business or development project in the City of Richfield. Meeting the Criteria does not mean that a project will automatically be approved, nor does it create any contractual rights on the part of any applicant. “EDA” means the Economic Development Authority of Richfield, Minnesota. “Grantor” means the City, the HRA or the EDA, as defined herein. “HRA” means the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. “Public Purpose” A Business Subsidy must meet a public purpose which may include, but may not be limited to, increasing the tax base. Job retention may only be used as a public purpose in cases where job loss is specific and demonstrable. “Recipient” means any for-profit or nonprofit business entity meeting the requirements of Section 116J.993, subd. 6 of the Business Subsidy Act that receives a Business Subsidy. III.Business Subsidy Criteria The following criteria shall be used to evaluate a request for a Business Subsidy, although meeting these criteria does not create a contractual right to a Business Subsidy, and the Grantor may later modify these criteria, as permitted by the Business Subsidy Act. An applicant who is not in good standing with the City regarding licenses, code violations, or delinquent taxes, bills, fines or other charges will not be considered for a Business Subsidy. 1.Public Purpose. Every Business Subsidy must meet a public purpose, which may include, but may not be limited to, increasing the tax base. a.Job and Wage Goals. Unless job creation or retention is not a public purpose of the Business Subsidy, every Recipient must create or retain jobs, and these jobs must pay at least 125 percent of the existing state minimum wage per hour, Error! Unknown document property name. 3 exclusive of benefits. Retained jobs may be included in job goals only if job loss is specific and demonstrable. Wage and jobs goals will be set forth in the Business Subsidy Agreement and must be met by the Recipient within two (2) years of the Benefit Date. b.Goals Other Than Job Creation or Retention. If, after a public hearing, it is determined by the governing bodies of the Grantor that creation or retention of jobs is not a goal, the wages and jobs required of a Recipient may be set to zero; however, the Recipient must achieve at least one of the following measurable, specific, and tangible goals: i.The project enhances the viability of other businesses in the City; ii.The project provides a service or meets a consumer need not currently or adequately met in the City; iii.The project results in revitalization and redevelopment in the downtown area or along priority commercial corridors as identified in adopted City policies and plans; iv.The project removes blighted or substandard property; v.The project stimulates additional capital investment and acts as a catalyst for future development and redevelopment; vi.The project prevents the closure of an essential business in the City; vii.The project promotes the retention or adaptive reuse of buildings of historical or architectural significance; viii.The project results in improvements to public infrastructure or public facilities, including, without limitation; roads, pedestrian and bike infrastructure, transit, parks, and recreational facilities; or ix.The project includes necessary environmental clean-up of the site for development or redevelopment. The Grantor may deviate from these goal criteria in granting Business Subsidies if the reasons for the deviation are documented in writing and reported to the Minnesota Department of Employment and Economic Development, pursuant to the Business Subsidy Act. 2.Increase in Tax Base. While the Business Subsidy Act provides that an increase in the tax base cannot be the sole grounds for granting a Business Subsidy, the Grantor gives a strong preference to proposed Business Subsidies that increase the tax base. Error! Unknown document property name. 4 3. Zoning. Any project benefited by a Business Subsidy must be consistent with the City’s Comprehensive Plan and Zoning Ordinance. If required changes to the Comprehensive Plan and Zoning Ordinance are under active consideration by the City, the Grantor may conditionally approve a request for a Business Subsidy. 4. Require Business Subsidy to Proceed. Business Subsidies will only be provided to Recipients who would not be able to proceed with the stated project without the benefit of the Business Subsidy. Business Subsidies will not be issued to Recipients for the purpose of increasing Recipient’s profit margin. 5. Continued Operations. Recipients must commit to continue operations of the business in the City for at least five (5) years following the Benefit Date of the Business Subsidy. IV. Process for Awarding Business Subsidies The Business Subsidy applicant will enter into negotiations with the Grantor and may enter into a proposed Business Subsidy Agreement to be drafted by the Grantor and its consultants. All applicants will be responsible for legal, financial, consultant and other costs associated with the review of the application and development of the Business Subsidy Agreement. Prior to approval of a Business Subsidy, the Business Subsidy applicant shall provide any required market and financial feasibility studies, appraisals, soil boring analysis, information provided to private lenders, credit reviews, and other information or data that the Grantor or its consultants may require in order to proceed with the Business Subsidy application process. The Grantor may undertake such a review on its own accord, to be paid from the fee paid by the Business Subsidy applicant. A Business Subsidy applicant should be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. Before the Grantor signs a Business Subsidy Agreement with a proposed Recipient, the Grantor must check with the compilation and summary report compiled by the Department of Employment and Economic Development to determine if the proposed Recipient is eligible to receive a Business Subsidy. 1. Business Subsidy Agreement. The Recipient must enter into a Business Subsidy Agreement with the Grantor. The Business Subsidy Agreement must include: a. A description of the Business Subsidy, including amount and type, and type of district if the Business Subsidy is Tax Increment Financing; b. The public purpose(s) for the Business Subsidy; c. Any measurable, specific, and tangible goals related to the Business Subsidy and the financial obligation of the Recipient if said goals are not met; d. A statement of why the Business Subsidy is needed for the project; Error! Unknown document property name. 5 e. A commitment from the Recipient to continue operations in the City for at least five (5) years following the Benefit Date; f. The name and address of any parent corporation of the Recipient; and g. A list of all Business Subsidies received for the project. h. A requirement for the Recipient to comply with labor laws. 2. Public Hearing. A publicly noticed public hearing is required for Business Subsidies in amounts over $150,000, unless otherwise required by law. 3. Governing Body Approval. A Business Subsidy of $150,000 or less, must be approved by the governing body of the Grantor. For a Business Subsidy of $150,000 or more, the governing body of the Grantor and the City Council must approve the Business Subsidy. V. Compliance 1. Reporting. Both the Recipient and the Grantor must comply with the reporting and monitoring requirements of the Business Subsidy Act. Each Recipient must provide a report to the Grantor each March 1. The Grantor will provide the report to the Department of Employment and Economic Development on or before April 1. 2. Failure to Meet Set Goals. If a Recipient fails to meet the wage and job goals as set forth in the Business Subsidy Agreement within two (2) years of the Benefit Date, the Business Subsidy assistance plus interest must be paid back to the Grantor, provided that repayment may be prorated to reflect partial fulfillment of the goals. Interest to be repaid must be set at no less than the implicit price deflator for government consumption expenditures and gross investment for state and local governments prepared by the Bureau of Economic Analysis of the United States Department of Commerce for the twelve-month period ending March 31 of the previous year. a. The Grantor may, after a public hearing, extend the time for compliance with Business Subsidy job and wage goals by up to one (1) year. The Grantor may extend the period of time for meeting other goals specified in the Business Subsidy Agreement by documenting in writing the reason for the extension and attaching a copy of the document to its next annual report to the Department of Employment and Economic Development. b. A Recipient that fails to meet the terms of a Business Subsidy Agreement may not receive a Business Subsidy from any grantor for a period of five (5) year s from the date of failure or until the Recipient satisfies its repayment obligation under the Business Subsidy Agreement, whichever occurs first. VI. FINANCIAL ASSISTANCE NOT CONSIDERED A BUSINESS SUBSIDY Error! Unknown document property name. 6 Section 116J.993, subd. 3 of the Business Subsidy Act provides that the following forms of assistance are not a Business Subsidy within the meaning of the Business Subsidy Act: 1. A business subsidy of less than $150,000. 2. Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria. 3. Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made. 4. Redevelopment property polluted by contaminants as defined in Minnesota Statutes Section 116J.552, subdivision 3. 5. Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50 percent of the total cost. 6. Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services. 7. Assistance for housing. 8. Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance sub-district as defined under Minnesota Statutes Section 469.174, subdivision 23; 9. Assistance for energy conservation. 10. Tax reductions resulting from conformity with federal tax law. 11. Workers' compensation and unemployment insurance. 12. Benefits derived from regulation. 13. Indirect benefits derived from assistance to educational institutions. 14. Funds from bonds allocated under Minnesota Statutes Chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1999. 15. Assistance for a collaboration between a Minnesota higher education institution and a business. 16. Assistance for a tax increment financing soils condition district as defined under Minnesota Statutes Section 469.174, subdivision 19. 17. Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current years estimated market value. 18. General changes in tax increment financing law and other general tax law changes of a principally technical nature. 19. Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency. 20. Funds from dock and wharf bonds issued by a seaway port authority. 21. Business loans and loan guarantees of $150,000 or less. 22. Federal loan funds provided through the United States Department of Commerce, Economic Development Administration. 23. Property tax abatements granted under Minnesota Statutes Section 469.1813 to property that is subject to valuation under Minnesota Rules, Chapter 8100. Error! Unknown document property name. 7 However, Minn. Stat. Section 116J.994 states that notwithstanding Minn. Stat. Section 116J.993, subd. 3, clauses (1) and (21), Business Subsidies as defined under Minn. Stat. Section 116J.993 include the following forms of financial assistance: a business subsidy of $25,000 or more; and business loans and guarantees of $75,000 or more. The Grantor is required to provide reporting for these types of subsidies pursuant to Minn. Stat. Section 116J.994, subd. 7(c). Requests for subsidies exempt from the Business Subsidy Act are still su bject to review and approval of the Grantor. Such approval is at the sole discretion of the Grantor. VII.AMENDMENTS TO BUSINESS SUBSIDY ACT The references to the Business Subsidy Act in this Business Subsidy Policy shall include any and all amendments to the Business Subsidy Act that are made after this policy is adopted. Adopted by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, this _____ day of ______________, 2023. Adopted by the Board of Commissioners of the Richfield Economic Development Authority of Richfield, Minnesota, this _____ day of ______________, 2023. Adopted by the City Council of the City of Richfield, Minnesota, this ____ day of _____________, 2023. Housing and Redevelopment AUTHORITY Business Subsidy Criteria i~pr~~.e.~ Purpose 1.01 This document includes the criteria to be considered by the Housing and Redevelopment Authority (the "Authority") in andfortheCityofRichfieldtoevaluaterequestsfor business subsidies.It is theintentof the AuthorityinadoptingthesecriteriatocomplywithMinnesota Statutes, Sections 116J. 993-116J.995 ( Authority option toor waivesectionsof thesecriteriawhendoingso is determinednecessaryorappropriate. Amendmentsto these criteriaaresubjecttopublichearing requirements oftheAct.1.03Thesecriteria are intended tosetspecific requirements be subsidies. Theadopt case-Statutory Limitations accordance subsidy must the Act Minnesota togoverned by theinGoals Objectives the Authority' advance in All projects, than consistent Plan and or community of thesubsidies thatwithout the subsidy. Potential grantees shall be required suchotheras may berequested by the Authoritypriorto consideration ofarequestforbusiness Ifincrementisgranteewithallfor"be underTIF Act and Act. c. Grantees willbe required to enterinto anagreementwith the Authority that is consistent with statutoryrequirements, andwhich contains measurable, specificandtangible goals. The Agreement shall include acommitmentto continue in operation within the City for a minimum of five years afterthe benefit date, unless waivedbytheAuthorityand shall comply with thespecificjob and wage goals established for theproject, if any. x ~_ IV. Business Subsidy Criteria 4.01 The Authority recognizes that every proposal is unique. Nothing in these criteria shall be deemed to be an entitlement orshall thesecriteriaestablish acontractual righttoa subsidy. The Authority reserves the modifythese criteria fromtimeto timeand to evaluate eachprojectas awhole.4.02 A business subsidy must a Thefollowingcriteria shallbeutilized inevaluating arequestforabusiness subsidy:a. Increaseintax base. While an in basecannotbe thesole groundsforgranting asubsidy, theAuthoritybelieves it is apreferredcondition forany subsidy. b. Jobs. It is theAuthority' s intentthat the grantee maximize thenumber ofjobsat thesite. This may include jobs to beretained but only if job loss is specificand demonstrable. c. Wage Floor. The jobscreatedas aresult of any business subsidyapproved bytheAuthority shallwages at an hourly thanofminimum wage full- time part-timeAnydeviation thefloor must documented in with theset forththe Act. provisions regarding floor doapplyinstancethe Authority, a hearing, thator retention is not the publicpurposeofthesubsidy. 4. 03EconomicDevelopment. In additionalto thecriteriainSection4. 02, projects should promoteoneormoreofthefollowing: 1. Encourage commercial diversitywithinthecommunity;Contributeto the establishmentofcriticalmassofcommercialdevelopment within anarea;Providebasicandservices, increase therange of goodsandservicesavailableor encourage fast-growing orhightechnology business locationorexpansion;4. Promoteobjectivesand removal ofblight, including pollutioncleanup; 5. Promotethe adaptive significance; Promoteadditional or spin-offdevelopment within the community; or 7. Encourage fullutilization of existingor plannedinfrastructure improvements.Compliance andAnysubsidy the Authority willbe totherequirementof ahearing, if necessary, and must be approved bytheAuthority.5.02Itwill benecessary for both the grantee andthe Authority to comply with the reportingand monitoring requirements of the Act. AGENDA SECTION:PUBLIC HEARINGS AGENDA ITEM #4. STAFF REPORT NO. 26 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 10/16/2023 Celeste McDermott, Housing SpecialistREPORT PREPARED BY: EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director 10/16/2023 ITEM FOR COUNCIL CONSIDERATION: Public hearing and consideration of the adoption of a resolution authorizing the sale of 6326 14th Avenue South and the approval of a Contract for Private Development with Nasadir Ahmed and Mohamed Isse for the construction of a duplex through the Richfield Rediscovered Program. EXECUTIVE SUMMARY: Nasadir Ahmed and Mohamed Isse (Buyers), are applying to purchase the lot at 6326 14th Avenue South from the Housing and Redevelopment Authority (HRA) for the construction of a duplex. The Buyers are working with Benjamin Akhigbe of Benoz Homes, Inc (Builder) to construct the home. The Buyers are family members who will own and occupy both units in the duplex. The duplex will feature four finished bedrooms in each unit, and an attached two car garage. Each unit will have approximately 2,036 finished square feet. Additionally, the home will include accessibility features such as wider doorways and wheelchair accessible bathrooms on the main level, as well as sustainability features including Energy Star certification. In 2021, the substandard home at 6326 14th Avenue South was purchased by the HRA for $155,000 with plans to develop the property through the Richfield Rediscovered Program (Program). The existing home was deconstructed in 2022, a process by which most of the material was recycled or reused rather than sent to a landfill. The objective of the 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. A Request for Proposals (RFP) for the lot at 6326 14th Avenue South was released in May 2023 indicating a preference towards applications featuring a duplex. The application from the Buyers was the only application received. The property is being sold for $81,500. The property appraised for $121,500 as a vacant lot, but a $20,000 discount is being provided to offset the cost of building a duplex, a $10,000 discount to offset sound attenuation requirements due to proximity to the airport, and an additional $10,000 discount is provided for meeting Green Credit standards. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: 1.Adopt a resolution authorizing the sale of 6326 14th Avenue South to Nasadir Ahmed and Mohamed Isse; and 2.Authorize execution of a Contract for Private Development between the Housing and Redevelopment Authority with Nasadir Ahmed and Mohamed Isse for the redevelopment of 6326 14th Avenue South. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT 6326 14th Avenue South: In 2021,the substandard home at 6326 14th Avenue South was purchased by the HRA with plans to develop the property through the Program. In 2022, to prepare the lot for future construction, the existing home was deconstructed through a grant program by Hennepin County. This allowed much of the materials to be recycled or reused instead of going to a landfill. Richfield Rediscovered Program: In November 2022, the Program Guidelines were updated to require that all homes meet minimum accessibility requirements. Additionally, all homes built through the Program must include at least one of the following features: An Accessory Dwelling Unit (ADU); Full accessibility per the standards of the Minnesota Accessibility Code Section 1002; Sustainability measures that meet the Green Credit standards and include 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. B.POLICIES (resolutions, ordinances, regulations, statutes, exc): The proposed project meets the policy objectives of the Program: Removes substandard, functionally obsolete housing and eliminates its blighting influence; Provides larger, higher valued housing; Two-unit design (duplex) alleviates shortage of housing choice for families; Includes additional accessibility features that make the first floor accessible to wheelchair users; Includes sustainability features that meet the Green Credit standards and may include solar panels. All efforts will be made to preserve any existing high priority trees on site when possible. The project also meets the Housing Design and Site Development criteria, as defined in the Program Guidelines: The height and mass of the house is visually minimized through the varied roof lines and sidings. The plan provides a balanced and pleasing distribution of wall, door and window areas from all views. In April 2019, the HRA adopted the revised Inclusionary Housing Policy (IHP), which states: "With regards to scattered-site single family housing development, at least 20 percent of the units newly constructed or rehabilitated and converted to long-term affordability in any three-year period must meet the proscribed affordability requirements." Assuming approval of this project with completion estimated in 2024, the estimated percentage of affordable scattered-site single family housing development will be 33 percent for the 2022- 2024 time period. One of the desired outcomes of the City's Strategic Plan, 2023-2026, is to maintain Richfield as an affordable place to live as a desired outcome. While the duplex itself is market-rate, the percentage of HRA-supported housing exceeds the affordability requirements of the IHP. C.CRITICAL TIMING ISSUES: The Contract for Private Development (Contract) requires the Builder to close on the property by March 1, 2024, and to complete construction by November 1, 2024. All Program contracts include a provision authorizing staff to grant an extension to these deadlines for a period up to six months. D.FINANCIAL IMPACT: The HRA purchased the 75-foot wide property in 2021 for $155,000. The appraised value of the property as a vacant lot is $121,500. Discounts to the lot sale price are applied to account for the additional expenses related to constructing a duplex, sound attenuation requirements due to airport proximity, and meeting Green Credit Standards. Under the terms of the Contract, $81,500 will be due at closing. Under the terms of the Contract for the property, the contracted minimum market value of the new home will be at least $800,000. Under the terms of the Contract, the Buyer will also be required to submit a $10,000 cash escrow. E.LEGAL CONSIDERATION: Notice of the public hearing was published in the Sun Current on October 5th, 2023. Mailed notification is not required on this item; however, a courtesy notice was mailed to residents within 350 feet of the property. The HRA Attorney prepared the Contract and will approve any final revisions. ALTERNATIVE RECOMMENDATION(S): Do not approve the sale of the property and the Contract for Private Development. PRINCIPAL PARTIES EXPECTED AT MEETING: Nasadir Ahmed and Mohamed Isse, Buyers, and Ben Akhigbe, Benoz Homes Inc, Builder ATTACHMENTS: Description Type Resolution Resolution Letter Contract for Private Development Contract/Agreement Elevations, floor plan & site plan Backup Material HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6326 14TH AVENUE SOUTH TO NASADIR AHMED & MOHAMED ISSE WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the Richfield Rediscovered Program adopted by the HRA, said real property being described as: Address: 6326 14th Avenue South Legal: Lot 5, Block 2, “Rich Highlands”, Hennepin County, Minnesota. WHEREAS, the HRA is authorized to sell real property within its area of operation after a public hearing; and WHEREAS, the purchaser of the described property has been identified as Nasadir Ahmed and Mohamed Isse (Buyer), and WHEREAS, a Contract for Private Development has been prepared, and the sale price of 6326 14th Avenue South is $81,500 with performance security in the amount of $10,000; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota: 1.A public hearing has been held and 6326 14th Avenue South is authorized to be sold for $81,500 to Nasadir Ahmed and Mohamed Isse; and 2.The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to the Buyer. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of October, 2023. Erin Vrieze Daniels, Chair ATTEST: Sean Hayford Oleary, Secretary CONTRACT FOR PRIVATE DEVELOPMENT Between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and Nasadir Ahmed & Mohamed Isse for property located at 6326 14th Ave S, Richfield MN 55423 This Instrument Drafted by: The Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Telephone: (612) 861-9760 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, made and entered into as of this ______ day of ________, 20___, by and between the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA) and Nasadir Ahmed & Mohamed Isse (Buyer). WITNESSETH: WHEREAS, the City of Richfield (City) and the HRA have previously created and established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047 (collectively, the Act); and WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a redevelopment plan for the Project (Redevelopment Plan); and WHEREAS, in order to achieve the objectives of the Redevelopment Plan and particularly to make specified land in the Project available for development by private enterprise for and in accordance with the Redevelopment Plan, the HRA has determined to provide substantial aid and assistance to finance development costs in the Project; and WHEREAS, the Buyer has proposed a development as hereinafter defined within the Project which the HRA has determined will promote and carry out the objectives for which the Project has been undertaken, will assist in carrying out the obligations of the Redevelopment Plan, will be in the vital best interests of the City and the health, safety and welfare of its residents and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which development in the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the mutual covenants and obligation of the HRA and the Buyer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: Building Plans. Detailed plans for the Improvements to be constructed on the Property, as required by the local building official for issuance of a building permit. City. The City of Richfield, Minnesota. Construction Plans. The construction plans approved by the HRA pursuant to Section 4.1 of this Agreement. The Construction Plans include a schedule for construction of the Improvements, preliminary plans and schematics of the Improvements to be constructed, and a landscaping plan. Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. 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. Event of Default. Event of Default has the meaning given such term in Section 8.1. Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised November, 2022 and attached as Exhibit B to this Agreement. Green Credit Standards The Green Credit Standards for Richfield Rediscovered, attached as Exhibit D. Improvements. Each and all of the structures and site improvements constructed on the Property by the Buyer, as specified in the Construction Plans to be approved by the HRA. Minimum Market Value. $800,000, which is the minimum market value for the Property and Improvements as confirmed by the Hennepin County Assessor. Mortgage. A mortgage obtained by the Bu yers from a third party lender in accordance with Section 6.1 of this Agreement. Property. The real property legally described as: Lot 5, Block 2, “Rich Highlands”, Hennepin County, Minnesota. Located on land having a street address of: 6326 14th Ave S, Richfield, Minnesota 55423 Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control of the Bu yers. Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Form of Certificate of Completion B. Program Guidelines – Lot Sale Program C. Form of Quit Claim Deed D. Green Credit Standards For Richfield Rediscovered Program Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words “herein” and “hereof” and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II REPRESENTATIONS AND UNDERTAKINGS Section 2.1. By the Buyer. The Buyer makes the following representations and undertakings: (a) The Buyer has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement; (b) The Buyer has the necessary equity capital or has obtained commitments for financing necessary for construction of the Improvements; (c) The Buyer will construct the Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations; (d) The Buyer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect; and (f) The Buyer intends to reside at the Property upon completion of the Improvements and is not buying the Property with the intent to resell it upon completion of the Improvements; and (g) The Buyer has read and understands the Guidelines and agrees to be bound by them. Section 2.2. By the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement and to carry out its obligations hereunder; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Bu yer and will cooperate with the efforts of the Bu yer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements. ARTICLE III ACQUISITION OF PROPERTY; CONVEYANCE TO BUYER Section 3.1. Purchase of Property by Buyer. The HRA agrees to sell the Property to Bu yer and the Buyer agrees to purchase the Property from the HRA in an “as-is” condition. The HRA agrees to convey the Property to the Buyer by Quit Claim Deed in the general form of Exhibit C. The HRA’s deed to the Buyer will contain the right of reverter required in Section 8.3. The purchase price for the Property, payable on the Closing Date (as defined in Section 3.6), will be $81,500.00 (“Purchase Price”). The Purchase Price reflects a land write-down in the amount of $40,000.00. The land write-down is being provided to the Buyer under the conditions that the Buyer constructs a Duplex that conforms to the City’s requirements which will be commenced and completed as required under Section 4.3, meets Green Credit Standards as outlined in Exhibit D, and meets landscaping requirements as approved by city staff. Section 3.2. Title and Examination. As soon as reasonably possible after execution of this Contract for Private Development by both parties, (a) HRA shall surrender any abstract of title and a copy of any owner’s title insurance policy for the property, if in HRA’s possession or control, to Bu yer or to Buyer’s designated title service provider; and (b) Bu yer shall obtain the title evidence determined necessary or desirable by Buyer or Buyer’s lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney’s title opinion, at Buyer’s selection and cost, and provide a copy to the HRA. The Buyer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to effect a cure; provided, however, that the HRA shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. Section 3.3. Taxes and Special Assessments. Real estate taxes and installments of special assessments will be prorated between the HRA and Buyer as of the Closing Date. Section 3.4. Soil Conditions and Hazardous Wastes. The Buyer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for the construction of improvements or any other purpose for which the Buyer may use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will allow reasonable access to the Property for the Buyer to conduct such tests regarding soils conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to conduct such tests must be given in writing under reasonable terms and conditions established by the HRA. Section 3.5. Other Preconditions to Closing. Closing may not take place until the HRA is satisfied that the proposed Improvements are in all respects in full compliance with the provisions of the Guidelines contained in Exhibit B. Section 3.6. Closing. Closing must take place on or before March 1, 2024, (“Closing Date”) or such other date as may be agreed to by the Buyer and HRA in writing. On the Closing Date, the Buyer will provide the HRA with a cash deposit for the escrow account established pursuant to Section 5.1, in addition to the Purchase Price. Section 3.7. Closing Costs. The Buyer will pay: (a) all closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Buyer; (b) title services chosen by Buyer pursuant to Section 3.2 above, including the premium for title insurance policy, if any, and (c) the recording fees for the Contract for Private Development and the deed transferring title to the Buyer. HRA will pay (a) any transfer taxes, and (b) fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.8. Sewer and Water. HRA warrants that city water is available at the lot line and city sewer is available at the curb. Section 3.9. ISTS Disclosure. HRA is not aware of any individual sewage treatment system on the property. Buyer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.10. Well Disclosure. The HRA does not know of any wells on the property. Section 3.11. Methamphetamine Disclosure. To the best of HRA’s knowledge, methamphetamine production has not occurred on the property. Section 3.12. Right of Entry. (a) The HRA hereby grants to the Buyer, its agents, employees and contractors, the right to enter upon the Property for purposes of making surveys, inspections, investigations, soil borings, and testing relative to the Buyer’s possible purchase of the Property. (b) In consideration for such right of entry, the Buyer agrees to: (i) Notify the HRA at least 48 hours in advance of the date and time that the Buyer, its agents, employees or contractors, will enter the Property and of the purpose for the entry, in order to permit the HRA to be present during the time any work is being done by the Buyer, its agents, employees or contractors; (ii) Provide to the HRA a copy of all test results and reports prepared by the Buyer or its consultants evaluating the conditions present on the Property, as soon as reasonably possible following final completion thereof; (iii) Dispose of all solid waste generated during the course of the Buyer’s sampling activities and other work on the Property in accordance with applicable federal, state and local laws, rules and regulations; (iv) Coordinate activities with the HRA so as to avoid unnecessary disruption to or interference with the HRA’s use of the Property; (v) Do no unnecessary damage to the Property and restore the Property to substantially the same condition as the condition in which it was found by the Buyer at the time of entry upon the Property by the Buyer, its agents, employees or contractors; (vi) Hold the HRA harmless from and indemnify the HRA from any and all claims, damages, judgments or obligations, including the cost of defense of suit, arising out of damage to Property or arising out of injury to anyone incurred or alleged to have been incurred in connection with or as a result of any work done pursuant to this right of entry, or as a result of the intentional torts or negligence of the Buyer, its agents, employees or contractors. Notwithstanding the foregoing, (i) neither the Buyer nor its contractors shall be responsible for the timeliness of any submission or application for further investigation or feasibility analysis or determining the proper methods of removal, treatment or disposal of any pollutants, contaminants or hazardous substances present on the Property; and (ii) nothing in this Agreement shall be deemed a waiver of defenses or limitations available to the HRA under Minnesota Statutes Chapter 466 (the Municipal Tort Claims Act); and (v) If the Buyer or its contractors removes a sample or portion of the Property for investigation, monitoring or testing or obtains any data or issues any report, it must give the HRA an equal amount of the sample or portion and a copy of any data or report, and must permit the HRA to perform an independent investigation, monitoring, or testing of the sample or portion. ARTICLE IV CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Buyer shall construct the Improvements on the Property in accordance with the Guidelines and the Construction Plans, shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section 1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. The Buyer shall provide his or her proposed construction plans to the HRA for review; if the proposed construction plans are in conformity with this Agreement and the Guidelines, the HRA will approve the Construction Plans following review and comment by the Homeowner. Section 4.2. Construction Plans. No building permit will be issued by the City unless the Building Plans are in conformity with the Guidelines, the Construction Plans, the required Minimum Market Value, other requirements contained in this Agreement, and all local, state and federal regulations. The Buyer shall provide the HRA with a set of Building Plans to be used in connection with any application for a building permit. The HRA shall, within 25 days of receipt of the Building Plans review the same to determine whether the foregoing requirements have been met. If the HRA determines such Building Plans to be deficient, it shall notify the Buyer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City shall be a conclusive determination that the Building Plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3. Schedule of Construction. Subject to Unavoidable Delays, construction of the Improvements shall be completed prior to November 1, 2024 (“Construction Completion Date”). All construction shall be in conformity with the approved Construction Plans and the Guidelines. Periodically during construction the Buyer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Buyer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Buyer and demand assurances from the Buyer regarding the Buyer’s construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4. Certificate of Completion. After notification by the Buyer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whet her the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof, and including satisfactory completion of Green Credit Standards. In the event that the HRA is satisfied with the construction, and upon closing on the sale of the Property to the Homeowner, the HRA shall furnish the Buyer with a Certificate of Completion in the form attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement. Issuance of the Certificate of Completion shall also serve as a satisfaction of any obligation of Buyer secured by the escrow account established under Section 5.1, and the remaining funds in the escrow account will be released to the Buyer. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Buyer to take or perform in order to obtain such certification. Section 4.5. Landscaping. The Buyer agrees to meet landscaping requirements and that the landscaping plan must be approved by city staff. Section 4.6. Trees. All healthy trees will be saved and protected by the Buyer during construction, to the extent possible, except those that specifically interfere with the construction of the Improvements. The Buyer may not cut or remove a tree from the Property without prior permission from the HRA. Trees requested to be removed must be identified by type on the site plan provided by the Buyer. Section 4.7. Green Credit. The Buyer understands that the purchase price reflects a land write-down under the condition that the Green Credit Standards are completed as outlined in Exhibit D. Section 4.8. Accessibility. The Buyer understands that all accessibility requirements listed in the Guidelines in Exhibit B must be met prior to the issuance of the Certificate of Completion. Section 4.9. Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred, and the HRA may proceed with its remedies under Section 8.2. ARTICLE V REDEVELOPMENT ASSISTANCE Section 5.1. Establishment of Cash Escrow. Buyer acknowledges that the HRA has incurred significant costs in acquiring the Property and selling the Property to the Buyer at a reduced price. On the Closing Date, Buyer will deliver to the HRA $10,000 to be placed in a non- interest bearing escrow account pursuant to the Escrow Agreement, dated as of the date hereof, between Buyer and HRA. The obligation to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be returned to Buyer if: (i) the Buyer receives a Certificate of Completion; and (ii) the Buyer is not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event of Default shall be deemed to have occurred and the HRA may exercise its remedies under Section 8.2. ARTICLE VI FINANCING Section 6.1. Financing. HRA acknowledges that Buyer has submitted evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. Buyer must notify HRA immediately of any changes to or withdrawal of the approved financing, HRA shall have 10 days to approve or disapprove changes in financing. If the HRA rejects a change in the approved financing or if the approved financing is withdrawn, the Buyer shall have 30 days or such additional period of time as the Buyer may reasonably require from the date of the HRA’s notification to submit evidence of financing satisfactory to the HRA. If the Buyer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder. Closing shall not take place until Buyer has provided HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2. Copy of Notice of Default to Lender. Whenever the HRA shall deliver any notice or demand to the Buyer with respect to any Event of Default by the Buyer in its obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of such notice or demand to each holder of any Mortgage authorized by the Agreement at the last address of such holder shown in the records of the HRA. Section 6.3. Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Buyer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent the HRA deems reasonable, upon request by the financial institution and the Buyer. ARTICLE VII PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1. Representation as to Redevelopment. The Buyer represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in land holding. The Buyer further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Buyer are of particular concern to the HRA. The Buyer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Buyer for the faithful performance of all undertakings and covenants agreed by the Buyer to be performed. Section 7.2. Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Buyer represents and agrees as follows: (a) Except as specifically allowed by this section, Buyer has not made or created, and, prior to the issuance of the Certificate of Completion, Buyer will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA. (b) This provision shall not be deemed as preventing the Buyer from entering into a Purchase Agreement for the sale of the Property to the Homeowner. (c) This provision does not prohibit conveyances that are only by way of security for, and only for the purpose of obtaining financing necessary to enable the Buyer or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement. Any Mortgage obtained by the Buyer must be disclosed to the HRA, and must be subordinate to this Agreement. The Buyer must provide the HRA with an address for the holder of the Mortgage for purposes of providing notices as may be required by this Agreement. ARTICLE VIII EVENTS OF DEFAULT Section 8.1. Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Buyer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Buyer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (c) If the Buyer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (d) If the Buyer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Buyer, a receiver of the Buyer or of the whole or substantially all of its property, or approve a petition filed against the Buyer seeking reorganization or arrangement of the Buyer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (e) If the Buyer is in default under any Mortgage and has not entered into a work-out agreement with the holder of the Mortgage. Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Buyer as provided in Section 8.3 of this Agreement: (a) Suspend its performance under this Agreement until it receives assurances from the Buyer, deemed reasonably adequate by the HRA, that the Buyer will cure its default and continue its performance under this Agreement; (b) Cancel or rescind this Agreement; (c) Exercise its right under Section 8.3; (d) Withdraw all funds in the escrow account established in Section 5.1; (e) Withhold the Certificate of Completion; or (f) Take whatever action at law or in equity may appear necessary or desirable to the HRA to enforce performance and observance of any obligation, agreement, or covenant of the Buyer under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the holders of a Mortgage; and provided further that should any holder of a Mortgage succeed by foreclosure of the Mortgage or deed in lieu thereof to the Buyer’s interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the obligations of the Buyer under this Agreement to the extent that the same have not therefore been performed by the Buyer. Section 8.3. Revesting Interest in HRA Upon Happening of Event of Default Subsequent to Conveyance of Property to Buyer. In the event that subsequent to the closing or the sale of the Property to the Buyer and prior to the issuance of the Certificate of Completion: (a) The Buyer fails to begin construction of the Improvements in conformity with this Agreement, and such failure is not due to Unavoidable Delays; (b) The Buyer, after commencement of the construction of the Improvements, defaults in or violates obligations with respect to the construction of the Improvements, including the nature and the date for the completion thereof, or abandons or substantially suspends construction work, and such act or actions is not due to Unavoidable Delays; (c) The Buyer or successor in interest fails to pay real estate taxes or assessments on the Property or any part thereof when due, or places thereon any encumbrance or lien unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier’s or mechanic’s lien, or any other unauthorized encumbrance or lien to attach; (d) There is, in violation of Article VIII of this Agreement, any transfer of the Property or any part thereof; or (e) The Buyer fails to comply with any of its covenants under this Agreement, then the HRA shall have the right upon 30 days’ written notice to Buyer and the Buyer’s failure to cure within such 30 days period, to re-enter and take possession of the Property and to terminate and revest in the HRA the interest of the Buyer in the Property; provided, however, that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under this Agreement or any right of the Homeowner pursuant to a valid Purchase Agreement authorized by this Agreement. Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Buyer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VIII. Section 8.5. No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. ARTICLE IX ADDITIONAL PROVISIONS Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or emplo yee of the HRA shall be personally liable to the Buyer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Buyer or successor or on any obligations under the terms of this Agreement. Section 9.2. Non-Discrimination. The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and non-discrimination, and any affirmative action program of the City shall be considered a part of this Agreement and binding on the Buyer as though fully set forth herein. Section 9.3. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue South Richfield, MN 55423 (b) As to the Buyer: Nasadir Ahmed 1901 W 80 ½ St Bloomington, MN 55431 Mohamed Isse 402 Fillmore St NE Minneapolis, MN 55413 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 8.3. Section 9.4. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 9.5. Extensions. Any extension to the Closing Date and/or extension to Construction Completion Date that exceeds 6 months from the date agreed to in Section 3.6 and 4.3, respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing Date to a date less than 6 months from the Closing Date agreed to in Section 3.6 and extend the Construction Completion Date to a date less than 6 months from the Construction Completion Date agreed to in Section 4.3. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By _______________________________________ Its Chairperson By _______________________________________ Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF ______________ ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 20_____, by , the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the authority. ________________________________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ______________ ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 20_____, by , the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the authority. ________________________________________________ Notary Public Signature Page for Buyer ______________________________________ Nasadir Ahmed ______________________________________ Mohamed Isse STATE OF MINNESOTA ) ) SS COUNTY OF ______________ ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 20_____, by __________________________________________, the ______________________ of _______________________________________________, a _________________________ under the laws of _____________________, on behalf of the _____________________. ________________________________________________ ________________________________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ______________ ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 20_____, by __________________________________________, the ______________________ of _______________________________________________, a _________________________ under the laws of _____________________, on behalf of the _____________________. ________________________________________________ ________________________________________________ Notary Public EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that ____________________________, has fully and completely complied with its obligations under that document entitled “Contract for Private Development”, between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and ________________________ dated ___________________________, filed ___________________________ as Document No. ____________________ (the “Contract”) with respect to the construction of the approved construction plans at ________________________, legally described as _____________________________ and is released and forever discharged from its obligations under such Contract. DATED: ___________________ THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD By: __________________________________ Its: Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 20__, by _________________________ the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. ________________________________ Notary Public This instrument was drafted by: Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402-1299 (612) 337-9300 EXHIBIT B RICHFIELD REDISCOVERED PROGRAM GUIDELINES LOT SALE PROGRAM REVISED: November, 2022 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 ......................................................................................................................................... 6 Construction Requirements .................................................................................................................. 7 General Standards .................................................................................................................................. 7 Green Community Concepts ................................................................................................................. 9 CITY REVIEW PROCEDURE ....................................................................................................................... 9 LOT SALE TO BUILDER/BUYER .............................................................................................................. 10 PROGRAM MARKETING ........................................................................................................................... 10 DATA PRIVACY ......................................................................................................................................... 11 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 accessory 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 ma y 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 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: 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. 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 must be owner -occupied in order to be eligible for the Richfield Rediscovered prog ram. 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 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 the 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. 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, the 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 $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 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 Letter 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 submit a cash escrow for $10,000 The cash escrow will be released once the construction and landscape 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 solicit ation. 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. 6. Must incorporate additional accessibility features as outlined in the Program Guidelines. 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 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: 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 i s 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. 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. 3. The construction site, neighboring properties and adjacent public streets shall be kept free of construction debris at all times. 4. No construction workers, construction equipment or construction material shall encroach upon neighboring properties. 5. The property shall have a new sanitary service line installed to the City sanitary sewer main per city standards . 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 the City’s sanitary main. The line must be televised after installation to ensure the line meets city standards 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: Accesible 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, 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. 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 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) 8. All building plans must have been prepared in consultation with an architect or qualified draftsperson. Al l requirements by the Building Inspections Division must be met. 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. 10. If a variance is required to construct the proposed development, the HRA may, at its sole discretion, choose to reject the application. 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. 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, recy clable 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. 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 Site 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. 3. The Builder will attend a pre-construction meeting with city staff from relevant departments. 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 Buildin g Inspections Division. If changes to the plans are required by the Inspections Division, the applicant must notify HRA staff. 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. 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. 7. At closing with the Builder, the Builder provides a cash escrow for $10,000 to the HRA. 8. Upon completion of the project, the cash escrow is released to the Builder. 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 Parade 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 may 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 Practices Act”). Under the Minnesota Government Data Practices Act, the names and addresses of applicants for or re cipients 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. EXHIBIT C QUIT CLAIM DEED Deed Tax Due: $__________ ECRV ___________________ Date: ____________________ FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to _____________________, a _______________ under the laws of the State of ____________, Grantee, real property in Hennepin County, Minnesota, described as follows: , according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. This deed is subject to that certain Contract for Private Development between Grantor and Grantee, dated __________________, 20__ (the “Contract”), recorded in the office of the Hennepin County Recorder/Registrar of Titles. The Contract provides that the Grantee’s rights and interest in the real property described above are subject to the Grantor’s right to re-enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of the Grantor’s right to re-enter and revest upon issuance of a Certificate of Completion as defined in the Contract. together with all hereditaments and appurtenances.  The Seller certifies that the Seller does not know of any wells on the described real property.  A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: __________________).  I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. Housing and Redevelopment Authority in and for the City of Richfield By ______________________________ Its Chairperson By ______________________________ Its Executive Director STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this ____ day of _______, 20__ by _____________________, the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Grantor. ________________________________ NOTARY STAMP SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this ____________ day of _______, 20__, by ________________, the Executive Director, of Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation, Grantor. ________________________________ NOTARY STAMP SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT This instrument was drafted by: Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402-1299 (612) 337-9300 Tax Statements should be sent to: EXHIBIT D 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  LEED Certification 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  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, Trees, Landscaping, and Overall Certification) encouraging evapotranspiration and preventing much stormwater 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, 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 D-0 Error! Unknown document property name. 12 6 4 12 12 6 4 12 PAGE NO: SCALE: DATE: DATE:DRAWN: JOB NO:CHECKED : PLANS PROVIDED BY: SCHWIETERS HOME DESIGN 1628 COUNTY HIGHWAY 10 N.E. SPRING LAKE PARK, MN 55432 TEL: (763) 785-2105 SchHomDsgn@aol.com FINAL SUBMITTAL PLAN 14TH AVE DUPLEX JUNE 07, 2023 As indicated A-1 ELEVATIONS 09/17/2021 06/07/2023 DICK S. 02330 R.J.S. PROJECT: 14TH AVE. DUPLEX 6 AND 4 PITCH OWNER: MOHAMED A ISSE HAMID ADDRESS: 6326 14TH AVE S. RICHFIELD, MINN. CONTRACTOR: BENOZ HOMES INC. CONTACT: BEN AKHIGBE PHONE: (612) 508-7927 E-MAIL: bakhigbe@aol.com 1/4" = 1'-0"A-1 1 EAST ELEVATION (14TH AVE S.) 1/8" = 1'-0"A-1 2 SOUTH ELEVATION 1/8" = 1'-0"A-1 3 WEST ELEVATION 1/8" = 1'-0"A-1 4 NORTH ELEVATION A-1 5 {3D} REVISIONS NO. DATE DESCRIPTION BY PAGE NO: SCALE: DATE: DATE:DRAWN: JOB NO:CHECKED : PLANS PROVIDED BY: SCHWIETERS HOME DESIGN 1628 COUNTY HIGHWAY 10 N.E. SPRING LAKE PARK, MN 55432 TEL: (763) 785-2105 SchHomDsgn@aol.com FINAL SUBMITTAL PLAN 14TH AVE DUPLEX JUNE 07, 2023 D-1 3-D PERSPECTIVES 09/17/2021 06/07/2023 DICK S. 02330 R.J.S. PROJECT: 14TH AVE. DUPLEX 6 AND 4 PITCH OWNER: MOHAMED A ISSE HAMID ADDRESS: 6326 14TH AVE S. RICHFIELD, MINN. CONTRACTOR: BENOZ HOMES INC. CONTACT: BEN AKHIGBE PHONE: (612) 508-7927 E-MAIL: bakhigbe@aol.com D-1 1 3-D PERSPECTIVE NORTH EAST VIEW D-1 2 3-D PERSPECTIVE NORTH WEST VIEW D-1 3 3-D PERSPECTIVE SOUTH WEST VIEW D-1 4 3-D PERSPECTIVE SOUTH EAST VIEW REVISIONS NO. DATE DESCRIPTION BY W/H W/H W/HW/H 42' - 0"STORAGE42' - 0"48' - 0"15 R UPSTORAGE13' - 6"3' - 5 1/2" R.I. 3/4 BATH FUTURE BEDROOM # 6 FUTURE BEDROOM # 5 MECHANICAL & STORAGE 6' - 4"35' - 4"6' - 4" 48' - 0" 17' - 8"17' - 8" HEET RISER0' - 1"3' - 5 3/4"7' - 10"W/D LIN CL. FURN 4' - 0" LIN CL. MECHANICAL & STORAGE HEET RISER FURN 11' - 1 3/4"15 R UP12' - 0"8' - 0"6' - 0"8' - 0"12' - 0"2 X 6 TREATED @ 16" O.C.2 X 6 TREATED @ 16" O.C.22' - 0"22' - 0"64' - 0"64' - 0"24' - 0"24' - 0" 4' - 0"4' - 0" W/D GARAGE UNEXCAVATED GARAGE UNEXCAVATED 3' - 6"15' - 11"11' - 4"2' - 6"12' - 3"12' - 4"11' - 8"11' - 8"12' - 4"15' - 11"11' - 4"2' - 6"12' - 3"FUTURE REC. ROOM FUTURE REC. ROOM FUTURE BEDROOM # 6 FUTURE BEDROOM # 5 R.I. 3/4 BATH - --- PAGE NO: SCALE: DATE: DATE:DRAWN: JOB NO:CHECKED : PLANS PROVIDED BY: SCHWIETERS HOME DESIGN 1628 COUNTY HIGHWAY 10 N.E. SPRING LAKE PARK, MN 55432 TEL: (763) 785-2105 SchHomDsgn@aol.com FINAL RESUBMITTAL 14TH AVE DUPLEX OCTOBER 09, 2023 1/4" = 1'-0" A-2 FOOTING AND FOUNDATION PLAN 04/15/2023 10/09/2023 DICK S. 02330 R.J.S. PROJECT: 14TH AVE. DUPLEX OWNER: MOHAMED A ISSE HAMID ADDRESS: 6326 14TH AVE S. RICHFIELD, MINN. CONTRACTOR: BENOZ HOMES INC. CONTACT: BEN AKHIGBE PHONE: (612) 508-7927 E-MAIL: bakhigbe@aol.com 1/4" = 1'-0"A-2 1 FOOTING AND FOUNDATION PLAN REVISIONS NO. DATE DESCRIPTION BY UP UP 48' - 0" 48' - 0"42' - 0"6' - 0"24' - 0"24' - 0"42' - 0"6' - 0"18" FLOOR TRUSSES @ 19.2" O.C. OFFICE/ DENMUDROOMF LIVING ROOM FOYER KITCHEN REFSINK D.W.RANGE2-8 17 RISERS17 RISERS31' - 4"10' - 8"17' - 8"17' - 8"22' - 0"35' - 4" MUDROOM 48' - 0" 6' - 4"6' - 4" LIVING ROOM REFSINK D.W.RANGE4' - 0" 4' - 0"4' - 0" 18" FLOOR TRUSSES @ 19.2" O.C. HEAT RISER HEAT RISER 2-8 3' - 6"12' - 0"8' - 0" PANTRY 4' - 0"LOCKERLOCKERBENCHLOCKERLOCKERBENCH24' - 10"4' - 0"2' - 6"10' - 8"64' - 0"22' - 0"64' - 0"3' - 4" 8' - 4"7' - 6"2' - 7"5' - 7"5' - 7"2' - 7"7' - 6"8' - 4" 8' - 0"12' - 0" GARAGE GARAGE 10'-0" X 8'-0" O.H. DOOR PANTRY 2' - 8"3' - 0" CL CL 2' - 6"KITCHEN 3' - 6" 9' - 0"8' - 8"8' - 8"9' - 0" 10'-0" X 8'-0" O.H. DOOR 1' - 6"3' - 6"0' - 4 1/2" 1' - 4"0' - 4 1/2"1' - 6"LIN. VOID 1' - 0"4' - 0"1' - 0"4' - 0"2' - 6"2' - 6" LIN. VOID 36 X 48 F.G. SHOWER 36 X 48 F.G. SHOWER 1' - 6"24" VAN.3-03' - 6"24" VAN.F 3-0 5'-0" DIA.5'-0" DIA. OFFICE/ DEN - --- PAGE NO: SCALE: DATE: DATE:DRAWN: JOB NO:CHECKED : PLANS PROVIDED BY: SCHWIETERS HOME DESIGN 1628 COUNTY HIGHWAY 10 N.E. SPRING LAKE PARK, MN 55432 TEL: (763) 785-2105 SchHomDsgn@aol.com FINAL RESUBMITTAL 14TH AVE DUPLEX OCTOBER 09, 2023 1/4" = 1'-0" A-3 MAIN FLOOR PLAN 2022 SQ. FT. 04/15/2023 10/09/2023 DICK S. 02330 R.J.S. PROJECT: 14TH AVE. DUPLEX OWNER: MOHAMED A ISSE HAMID ADDRESS: 6326 14TH AVE S. RICHFIELD, MINN. CONTRACTOR: BENOZ HOMES INC. CONTACT: BEN AKHIGBE PHONE: (612) 508-7927 E-MAIL: bakhigbe@aol.com 1/4" = 1'-0"A-3 1 MAIN FLOOR PLAN REVISIONS NO. DATE DESCRIPTION BY LAUNDRY 16' - 0"2-417 R DOWN17 R DOWNLOBBY 11' - 4"12' - 4"11' - 0"5' - 0"5' - 6 5/8"BED # 2 1' - 10" 5' - 5" LOBBY BED # 3 MASTER BEDROOM #1 6' - 11"6' - 11"5' - 5" 12' - 4" LAUNDRY BED # 2 BED # 3 MASTER BEDROOM #1 M. BATH M. BATH BATH BATH 11' - 0"2' - 6"2' - 6"11' - 4"9' - 8"9' - 8"5' - 6"5' - 10"43' - 0"48' - 0" 11' - 8"24' - 8"11' - 8"15' - 8"15' - 8"43' - 0"48' - 0" 14' - 4"14' - 4" - --- PAGE NO: SCALE: DATE: DATE:DRAWN: JOB NO:CHECKED : PLANS PROVIDED BY: SCHWIETERS HOME DESIGN 1628 COUNTY HIGHWAY 10 N.E. SPRING LAKE PARK, MN 55432 TEL: (763) 785-2105 SchHomDsgn@aol.com FINAL RESUBMITTAL 14TH AVE DUPLEX OCTOBER 09, 2023 1/4" = 1'-0" A-4 2ND FLOOR PLAN 2050 SQ. FT. 04/15/2023 10/09/2023 DICK S. 02330 R.J.S. PROJECT: 14TH AVE. DUPLEX OWNER: MOHAMED A ISSE HAMID ADDRESS: 6326 14TH AVE S. RICHFIELD, MINN. CONTRACTOR: BENOZ HOMES INC. CONTACT: BEN AKHIGBE PHONE: (612) 508-7927 E-MAIL: bakhigbe@aol.com 1/4" = 1'-0"A-4 1 2ND FLOOR PLAN REVISIONS NO. DATE DESCRIPTION BY 0' - 7"MAX MID POINT HEIGHT 25 FT.27' - 3 1/8"7' - 10"1' - 6 3/4"9' - 1 7/8"4 1/2 12 PAGE NO: SCALE: DATE: DATE:DRAWN: JOB NO:CHECKED : PLANS PROVIDED BY: SCHWIETERS HOME DESIGN 1628 COUNTY HIGHWAY 10 N.E. SPRING LAKE PARK, MN 55432 TEL: (763) 785-2105 SchHomDsgn@aol.com FINAL RESUBMITTAL 14TH AVE DUPLEX OCTOBER 09, 2023 3/8" = 1'-0" A-5 SECTIONS 04/15/2023 10/09/2023 DICK S. 02330 R.J.S. PROJECT: 14TH AVE. DUPLEX OWNER: MOHAMED A ISSE HAMID ADDRESS: 6326 14TH AVE S. RICHFIELD, MINN. CONTRACTOR: BENOZ HOMES INC. CONTACT: BEN AKHIGBE PHONE: (612) 508-7927 E-MAIL: bakhigbe@aol.com 3/8" = 1'-0"A-5 1 SECTION THRU HOUSE MID POINT REVISIONS NO. DATE DESCRIPTION BY 75' - 0"135' - 0"42' - 0"30' - 0"63' - 0"8' - 0"48' - 0"19' - 0"23' - 6"LOT 10125 SQ. FT. IMPERVIOUS 45% 4556 SQ. FT. MAX IMPERVIOUS 2889 SQ. FT. STRUCTURE 1667 GARAGE APRON, DRIVE WAY & SIDEWALK 4556 MAX SQ, FT, HAVE 4556 SQ. FT. 0 SQ, FT, STRUCTURE 35% 3543 MAX SQ. FT. HAVE 2889 SQ. FT. -654 SQ. FT. 3' - 0"23' - 6"22' - 0"CONCRETE GARGE APRON 3' - 0" 8' - 8" 777 SQ. FT. 2016 SQ. FT. 9' - 0" 144 48 48 IMPERVIOUS 10125 X .45% = 4556 SQ. FT. STRUCTURE 10125 X .35% = 3543 SQ. FT. 35' - 4" 6' - 4"17' - 8"17' - 8"6' - 4" GARAGE GARAGE 360 1163 17' - 8"17' - 8" 3' - 0"20' - 0"62' - 4" 49' - 4"13' - 0"9' - 0"11' - 0"13' - 0"11' - 3 1/2"89' - 8 5/8"6' - 0"24' - 3 1/2"1' - 4"135' - 0"20' - 11 7/8"24' - 0"24' - 0" PAGE NO: SCALE: DATE: DATE:DRAWN: JOB NO:CHECKED : PLANS PROVIDED BY: SCHWIETERS HOME DESIGN 1628 COUNTY HIGHWAY 10 N.E. SPRING LAKE PARK, MN 55432 TEL: (763) 785-2105 SchHomDsgn@aol.com RESUBMITTAL PLAN 14TH AVE DUPLEX SEPTEMBER 01, 2023 3/32" = 1'-0" A-6 SITE PLAN 04/15/2023 09/01/2023 DICK S. 02330 R.J.S. PROJECT: 14TH AVE. DUPLEX OWNER: MOHAMED A ISSE HAMID ADDRESS: 6326 14TH AVE S. RICHFIELD, MINN. CONTRACTOR: BENOZ HOMES INC. CONTACT: BEN AKHIGBE PHONE: (612) 508-7927 E-MAIL: bakhigbe@aol.com 3/32" = 1'-0"A-6 1 SITE REVISIONS NO. DATE DESCRIPTION BY