112023 HRA AgendaR E G U LAR H O U S IN G AN D R E D E V E LO P ME N T AU TH O R ITY ME E TIN G
R IC H F IE L D MU N IC IPAL C E N TE R, C O U N C IL C H AMB E R S
N O VEMB E R 20, 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: 2633 450 5197 and password: 1234.
Approval of the Minutes
A pproval of the minutes of the Regular Housing and Redevelopment A uthority meeting of October 16, 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 a resolution approving an extension to the Grant A greements with Woodlawn Terrace
C ooperative until D ecember 31, 2024.
S taff Report No. 27
B .C onsider a resolution designating buildings formerly located at 7700 and 7730 P ortland Avenue S outh and
the existing structure at 500 78th S treet E ast as structurally substandard within the Richfield
Redevelopment P roject A rea.
S taff Report No. 28
C .C onsider the approval of a resolution accepting contributions for the 2023 Tour of Remodeled Homes.
S taff Report No. 29
3.C onsideration of items, if any, removed from C onsent C alendar
R E S O L U T IO N S
4.C onsideration of a modification to the Tax Increment F inancing P lan, Tax Increment F inancing D istrict 2018-1,
RF 64, withdrawing parcels from the D istrict.
S taff Report No. 30
O T H E R B U S IN E S S
5.C onsider acceptance of the Richfield Housing and Redevelopment A uthority Tax Increment F inancing D istrict
S tatus Update.
S taff Report No. 31
6.C onsideration of a Memorandum of Understanding with D ani, L aura, and Mariela Jimenez related to the Housing
and Redevelopment A uthority property located at 1430 66th S treet E ast for construction of a bakery and deli.
S taff Report No. 32
7.C onsideration of a Memorandum of Understanding with Lyndale Gardens, L L C .
S taff Report No. 33
H R A D IS C U S S IO N ITE MS
8.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
9.E xecutive D irector's Report
C LAIMS
10.C laims
11.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.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
October 16, 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.
OPEN FORUM
Chair Vrieze Daniels gave instructions on how to participate in the open forum. No one
spoke.
APPROVAL OF THE MINUTES
Chair Vrieze Daniels asked for a change to the 9/18 regular HRA minutes – she wanted
“changes made to ‘loans,’ not ‘laws.’”
M/Supple, S/Hanson to approve the 1) minutes of the special Housing and
Redevelopment Authority meeting of August 21, 2023, and 2) the minutes of the regular
Housing and Redevelopment Authority meeting of September 18, 2023 with the change offered
by Chair Vrieze Daniels.
Motion carried: 5-0
ITEM #1
APPROVAL OF THE AGENDA
M/Young, S/Hanson to approve the agenda.
Motion carried: 5-0
HRA Meeting Minutes -2- October 16, 2023
ITEM #2
APPROVAL OF THE CONSENT CALENDAR
Executive Director Poehlman presented the Consent Calendar.
A. 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 (Staff Report #24).
M/Supple, S/Hayford Oleary to approve the Consent Calendar.
Motion Carried: 5-0
ITEM #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None.
ITEM #4
CONSIDER A RESOLUTION APPROVING THE AMENDED AND RESTATED
BUSINESS SUBSIDY POLICY.
Economic Development Manager Youngquist gave the report.
M/Supple, S/Young to approve a resolution approving the amended and restated
Business Subsidy Policy.
Motion carried: 5-0
Commissioner Supple spoke about the discussions that occurred at the City Council meeting
and the changes made to the policy.
ITEM #5
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.
Assistant Director Urban gave the report and shared the site plan.
Commissioner Hayford Oleary stated he was concerned about the tire track driveway
and the potential for damage to the yard around it. There was also a conversation about lot
coverage.
Commissioner Hanson shared concerns with the dual track driveway and how it could
impact the health and appearance of the lawn. He also asked if there would be a landscaping
HRA Meeting Minutes -3-October 16, 2023
plan for the property. A representative from the building company spoke to the Authority and
talked about the planning process for the site and considerations for the trees in the yard.
Commissioner Young asked if it was a requirement for the buyers to occupy the house.
Assistant Director Urban stated there were no restrictions, but the intent was for the residents to
live in the unit. Commissioner Young asked what would happen if the buyer did not have
enough funds and if there was a deadline to start construction. Assistant Director Urban stated
there were financing options available and that the deadline was six months after closing.
Chair Vrieze Daniels opened the public hearing.
Todd Seigfried – 6332 14th Ave: Resident stated there were trees on this property that
hang over the fence onto his property and wanted to know what would happen to them. The
resident also asked how the city ensured that all required steps in the process were met.
Dana Anderson – 6308 14th Ave: Resident had concerns about the process and
requirements of those living in the unit – particularly how many people would be allowed to live
in the unit at one time.
There were no other speakers. M/Supple, S/Hanson to close the public hearing.
Motion carried: 5-0
Assistant Director spoke about the processes and steps and stated both sides would be
occupied and will meet all standard building codes.
Commissioner Supple stated that once completed, there would be a certificate of
completion showing that are requirements were met. Assistant Director Urban concurred.
Chair Vrieze Daniels asked if a full driveway would need a variance. Assistant Director
stated that was correct.
Executive Director Poehlman spoke regarding occupancy requirements and that there
were occupancy standards already in city code.
M/Supple, S/Hayford Oleary to adopt a resolution authorizing the sale of 6326 14th
Avenue South to Nasadir Ahmed and Mohammed Isse; and authorize execution of a contract
for private development between the Housing and Redevelopment Authority with Nasadir
Ahmed and Mohamed Isse for the redevelopment of 6236 14th Avenue South.
Motion carried: 5-0
ITEM #6 HRA DISCUSSION ITEMS
Commissioner Supple thanked those who opened up their homes for the Richfield
Renovation Tour. She also spoke about Fire Prevention Week and reminded residents to check
their smoke detectors.
Chair Vrieze Daniels spoke about the Renovation Tour.
HRA Meeting Minutes -4-October 16, 2023
ITEM #7 EXECUTIVE DIRECTOR REPORT
Executive Director Poehlman spoke about the Renovation Tour and noted 350-400
people attended the event.
ITEM #8 CLAIMS
M/Hanson, S/Young_ that the following claims be approved:
U.S. BANK 10/16/2023
HRA Checks: #36948-36957 $39,597.78
Section 8 Checks: #135196-135277 $212,099.50
TOTAL $251,697.28
Motion carried: 5-0
ITEM #9 ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:41 p.m.
Date Approved: November 20, 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. 27
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
11/20/2023
Julie Urban, Assistant Community Development DirectorREPORT PREPARED BY:
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
11/16/2023
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution approving an extension to the Grant Agreements with Woodlawn Terrace
Cooperative until December 31, 2024.
EXECUTIVE SUMMARY:
In 2021, the Housing and Redevelopment Authority (HRA) approved two grant agreements (Agreements) with
Woodlawn Terrace Cooperative (WTC), the owners of a manufactured home community located at 7421
Lyndale Avenue South. One grant, in the amount of $350,000, was awarded to help upgrade the water and
sewer on the site. A second grant in the amount of $60,000 was awarded to fund the rehabilitation of a
permanent structure containing two rental housing units and the demolition of five abandoned units. That grant
amount was increased in 2022 to $140,000 due to increased construction costs and the need to demolish an
additional unit. The deadline for both Agreements is December 31, 2023.
As WTC began preparing for work on the sewer and water earlier this year, they discovered additional work
was needed which requires additional funding. WTC submitted an application to Minnesota Housing for
additional funds in September and anticipate hearing a decision by the end of the year. In the meantime,
work has stalled and cannot be completed by the end of this year. WTC is asking the HRA to extend its grant
Agreement for an additional year as a result of the delay.
Rehabilitation work is nearing completion on one of the two units being rehabilitated with HRA funds, per the
second Agreement; however, the contractor has since identified an issue with the water service underneath
the structure. That issue can be addressed with the move to City water, but that work has been delayed (as
described in the previous paragraph), so completion of the rehab work has also been delayed. As a result,
WTC is also seeking an extension to the rehabilitation Agreement until the end of 2024. The demolition portion
of the Agreement has been completed.
RECOMMENDED ACTION:
By motion: Adopt the attached resolution approving an extension to the Grant Agreements with the
Woodlawn Terrace Cooperative until December 31, 2024.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The current residents of Woodlawn Terrace formed a Cooperative in 2021 and purchased the underlying
property from the long-time owner. At the time of purchase, there were 32 occupied units in Woodlawn
Terrace, and WTC plans to add 21 new for-sale units over the next three years.
A conditions survey and analysis identified $1.1 million in repairs and upgrades that should be done,
including connecting the park to C ity water, lining the storm sewer pipes to extend their useful life,
rehabilitation of several structures, and the removal of five abandoned mobile home units.
In 2021, the HRA approved the use of $350,000 in Housing and Redevelopment F unds for utility
upgrades and $60,000 for rehabilitation work. In 2022, the HRA increased the grant amount for
rehabilitation work to $140,000.
B .E QU ITAB L E OR S T R AT E GIC C ON S ID E R AT ION S OR IMPAC T S
A ssistance to W TC furthers the C ity C ouncil desired outcome in the S trategic P lan to maintain
Richfield as an affordable community.
The Woodlawn Terrace community offers a very affordable homeownership opportunity. S upporting the
preservation of this affordable homeownership community furthers equitable outcomes for residents with
lower incomes.
C .P OL IC IE S (resolutions, ordinances, regulations, statutes, exc):
A ssistance to Woodlawn Terrace meets several policy objectives of the HRA and C ity: 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 21 new affordable homes in the community.
D .C R IT IC AL T IMIN G IS S U E S:
W TC is asking the HRA to extend the deadline for the C ooperative to spend the grant funds from
D ecember 31, 2023, until D ecember 31, 2024, as they are in the process of seeking additional funds to
complete the work.
E .F IN AN C IAL IMPAC T:
T he already-committed funds are available in the Housing and Redevelopment Fund.
F.L E GAL C ON S ID E R AT ION:
NA
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Decide not to approve the extension.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
NA
AT TAC H ME N T S:
D escription Type
Resolution $350,000 Grant E xtension Resolution L etter
Resolution $140,000 Grant E xtension Resolution L etter
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING EXTENSION FOR HRA’S GRANT
TO WOODLAWN TERRACE COOPERATIVE
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) was created pursuant to Minnesota Statutes, Sections 469.001 through
469.047, as amended, and is authorized to transact business and exercise its powers by a
resolution of the City Council of the City of Richfield, Minnesota (the “City”); and
WHEREAS, the Woodlawn Terrace Cooperative, a Minnesota nonprofit corporation (the
“Cooperative”) has purchased and intends to operate a manufactured home park on property at
7421 Lyndale Avenue South in the City (the “Project”); and
WHEREAS the Authority previously inspected the Project and determined there were
blighted conditions; and
WHEREAS the Cooperative has received a Minnesota Housing Grant to fund infrastructure
improvements for the purposes of connecting the Project to the City’s water system and to line the
existing sewer system; and
WHEREAS, on September 20, 2021, the Board of Commissioners of the Authority adopted
a resolution approving a grant of $350,000 (the “Authority Grant”) to the Cooperative for the
purposes of assisting with the costs of assisting with the water system and sanitary system
improvements at the Project subject to (i) the Cooperative having purchase the Project; (ii) the
Cooperative having obtained the Minnesota Housing Grant; and (iii) the Authority and the
Cooperative having entered into a Grant Agreement; and
WHEREAS, all of the requirements set forth above have been met; and
WHEREAS, the utility work has been delayed due to the Cooperative determining that the
sanitary sewer work needed is significantly more than expected and the Cooperative needs to seek
additional outside funding; and
WHEREAS, pursuant to the Grant Agreement, the Cooperative was required to complete
the demolition of five substandard units and rehabilitate unit six on or prior to December 31, 2023;
and
WHEREAS, due to unavoidable delays, it is proposed to extend the grant to December 31,
2024; 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 Authority’s Grant is hereby extended to December 31, 2024.
2.This resolution shall be in full force and effect as of the date hereof.
2
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 20th day of November, 2023.
Erin Vrieze Daniels, Chair
Sean Hayford Oleary, Secretary
RC125-1 (JAE)
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING EXTENSION FOR HRA’S GRANT
TO WOODLAWN TERRACE COOPERATIVE
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the “Authority”) was created pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as
amended, and is authorized to transact business and exercise its powers by a resolution of the City Council of
the City of Richfield, Minnesota (the “City”); and
WHEREAS, the Woodlawn Terrace Cooperative, a Minnesota nonprofit corporation (the
“Cooperative”) has purchased and intends to operate a manufactured home park on property at 7421 Lyndale
Avenue South in the City (the “Project”); and
WHEREAS the Authority previously inspected the Project and determined there were blighted
conditions; and
WHEREAS, on October 18, 2021, the Board of Commissioners of the Authority adopted a
resolution approving a grant of $60,000 (the “Authority Grant”) to the Cooperative for the purposes of
assisting with the costs of: (i) the demolition of five substandard units in the Project (estimated cost of
$20,000); and (ii) the rehabilitation of unit 5 so that it can be rented (estimated cost of $30,000; and (iii) the
rehabilitation of unit 6 so that it could be rented (estimated cost of $10,000) (collectively, the “Project
Costs”); and
WHEREAS, on October 17, 2022, the Grant was amended to increase the amount of the Grant to
$140,000, for the purposes of: (i) the demolition of six substandard units in the Project (up to $28,000); (ii)
the rehabilitation of unit 5 (up to $50,000; (iii) additional costs for electrical and water service upgrades (up to
$22,000); (iv) the rehabilitation of unit 6 (up to $10,000); and (v) additional costs to be pre-approved by the
Executive Director of the Authority before commencing work (up to $30,000) (collectively, the “Project
Costs”);
WHEREAS, the rehabilitation work has been delayed due to the Cooperative uncovering issues with
the water line underneath one of the units, which led the Cooperative to explore whether or not it was more
appropriate to include replacement as part of the larger city water connection project; and
WHEREAS, pursuant to the Grant Agreement, the Cooperative was required to complete the
demolition of five substandard units and rehabilitate unit six on or prior to December 31, 2023; and
WHEREAS, due to unavoidable delays, it is proposed to extend the grant to December 31, 2024; 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 Authority’s Grant is hereby extended to December 31, 2024.
2.This resolution shall be in full force and effect as of the date hereof.
2
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 20th day of November, 2023.
Erin Vrieze Daniels, Chair
Sean Hayford Oleary, Secretary
RC125-1 (JAE)
914792v1
AGENDA SECTION: Consent Calendar
AGENDA ITEM # 2.B.
STAFF REPORT NO. 28
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
11/20/2023
Melissa Poehlman, Executive DirectorREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consider a resolution designating buildings formerly located at 7700 and 7730 Portland Avenue South
and the existing structure at 500 78th Street East as structurally substandard within the Richfield
Redevelopment Project Area.
EXECUTIVE SUMMARY:
The Minnesota Department of Transportation (Mn-DOT) recently purchased the properties at 7700 and 7730
Portland Avenue South to allow for the reconstruction of the I-494 and Portland Avenue intersection. Following
construction of the roadway improvements, remnant land is anticipated to be available for redevelopment.
The Richfield Comprehensive Plan calls for Regional Commercial Development at this major transportation
intersection. In order to achieve this, remnant land will need to be combined adjacent property addressed as
7701 5th Avenue South (parking lot) and 500 78th Street East (vacant former restaurant).
Redevelopment of this land is expected to be very costly. In addition to anticipated high acquisition costs and
demolition of building at 500 78th Street East, the nature of the previous use of half of the parcels for auto
repair makes it likely that environmental clean-up will also be required. To preserve the City's authority to
create a Redevelopment Tax Increment Finance (TIF) District in the future, an inspection documenting the
condition of the buildings was requested by the Executive Director of the Housing and Redevelopment
Authority (HRA).
Under Minnesota law, the City or the HRA is authorized to deem parcels as occupied by structurally
substandard buildings before the demolition or removal of the buildings, in order to create a Redevelopment
TIF District. The City has three years to create this District, following demolition of the substandard
structures.
Several timing issues complicate the future creation of a Redevelopment TIF District and the City will need to
approach the State for special legislation related to the area. To begin, this phase of the I-494 project is
expected to last three years (through fall 2026). Remnant land is not expected to be available for
redevelopment until after final completion of the project. Current law gives the City only three years after
demolition of the substandard structures to create a Redevelopment TIF District. The City will need to seek
special approval from the legislature for an extension of the time limit. Second, due to timing issues with the
scheduled demolition by Mn-DOT, the finding before the HRA tonight was unable to be made prior to
demolition of two of the structures (7700 and 7730 Portland Avenue South). Given that the City will need to
request special legislation related to the three-year time limit, staff and the HRA Attorney determined that it
would be worthwhile to adopt a resolution after-the-fact and include a request for an exemption from this
requirement as well.
Melissa Poehlman, Executive Director
11/13/2023
T he architecture firm L H B, Inc. has conducted an extensive evaluation of the buildings and issued
the attached report which concludes that the site and the buildings it contains meet the requirements
necessary to qualify as a Redevelopment T IF District.
The attached resolution would make findings accepting the results of the L HB, I nc. report and designating the
buildings to be substandard, as defined in Minnesota State Statutes.
RE C O M M E ND E D AC T I O N:
By Motion: Adopt a resolution designating the buildings formerly located at 7700 and 7730 Portland
Avenue South and the existing structure at 500 78th Street East as structurally substandard within the
Richfield Redevelopment Project Area.
B AS IS O F RE C O M M E ND AT I O N:
A .H IS TOR IC AL C ON T E X T
P roperty at the intersection of I-494 and P ortland Avenue is guided for Regional C ommercial use by the
Richfield C omprehensive P lan. Redevelopment in this area is expected to be exceptionally expensive
due to anticipated environmental clean-up.
The properties formerly addressed at 7700 and 7730 P ortland Avenue S outh were acquired by Mn-
D O T for the expansion of the interchange with I-494. Remnant land is expected to be available for
redevelopment following completion of the project in fall 2026.
A redevelopment project that serves a regional purpose will require the combination of remnant land with
the adjoining parcels at 500 78th S treet E ast and 7701 5th Avenue S outh.
B .E QU ITAB L E OR S T R AT E GIC C ON S ID E R AT ION S OR IMPAC T S
Redevelopment of this property will be outside of the dates of the S trategic P lan; however, it will
potentially further the goal of increasing the tax base.
If and when a redevelopment proposal comes forward, the equity impacts of that proposal will be
evaluated.
C .P OL IC IE S (resolutions, ordinances, regulations, statutes, exc):
In order to establish a Redevelopment TIF D istrict, the property within the proposed D istrict boundaries
must be found to be blighted and structurally substandard under the requirements established by
Minnesota S tate S tatutes.
D .C R IT IC AL T IMIN G IS S U E S:
The HRA A ttorney recommends that we approve the resolution as soon as possible given that Mn-D O T
has removed the buildings.
F ollowing approval of substandard resolutions related to 500 78th S treet E ast, the property owner will
remove the structure which has become a target for thieves and unsheltered persons.
E .F IN AN C IAL IMPAC T:
None at this time.
F.L E GAL C ON S ID E R AT ION:
The attached resolution was prepared with the assistance of the HRA A ttorney.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Decide not adopt the resolution certifying the buildings as substandard, thereby eliminating the possibility of
creating a Redevelopment TI F District in the future.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
S ubstandard L etter of F inding E xhibit
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION DESIGNATING BUILDINGS AS STRUCTURALLY SUBSTANDARD WITHIN
THE RICHFIELD REDEVELOPMENT PROJECT
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) was created pursuant to Minnesota Statutes, Sections 469.001 through
469.047, as amended, and was authorized to transact business and exercise its powers by a
resolution of the City Council of the City of Richfield, Minnesota (the “City”); and
WHEREAS, under Minnesota Statutes, Section 469.174, subdivision 10(d), the Authority is
authorized to deem parcels as occupied by structurally substandard buildings before the demolition
or removal of buildings, subject to certain terms and conditions as described in this resolution; and
WHEREAS, the Authority obtained blight studies for four parcels and may in the future
include one or more of the properties described in EXHIBIT A attached hereto (the “Property”), in a
redevelopment tax increment financing district as defined in Minnesota Statutes, Sections 469.174,
subdivision 10, within the Richfield Redevelopment Project; and
WHEREAS, the Authority plans to purchase two parcels from the Department of
Transportation after the Department of Transportation no longer needs the two parcels; and
WHEREAS, the Authority has determined that the parcels currently owned by the
Department of Transportation are blighted based on the long-term use of those parcels as a
mechanics garage; and
WHEREAS, the Department of Transportation demolished the buildings on the Department
of Transportation parcels on or about October 27, 2023; and
WHEREAS, if the Authority cannot purchase the Department of Transportation parcels
within three years of the date the Department of Transportation demolished the buildings on its
parcels, the Authority will seek special legislation in order to preserve the ability to create a
redevelopment tax increment district in the future; 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 Authority finds that three of the buildings are structurally substandard to a
degree requiring substantial renovation or clearance, based upon the analysis of such buildings by
LHB, Inc. in a final report dated November 10, 2023, and on file in City Hall.
2. Two of the buildings on the Property were demolished or removed on or about
October 27, 2023; following preparation of a report by LHB, Inc. dated October 26, 2023, and on
file in City Hall.
2
3. The remaining building on the Property may be demolished or removed by the
Authority, or such demolition or removal may be financed by the Authority or may be undertaken by
a developer under a development agreement with the Authority.
4. The Authority intends to include the Property in a redevelopment tax increment
financing district, and to file the request for certification of such district with the Auditor/Treasurer of
Hennepin County, Minnesota, as the county auditor (the “County Auditor/Treasurer”), within three
(3) years after the date of demolition of the buildings on the Property.
5. Upon filing the request for certification of the new tax increment financing district,
the Authority will notify the County Auditor/Treasurer that the original tax capacity of the Property
must be adjusted to reflect the greater of (a) the current net tax capacity of the parcel, or (b) the
estimated market value of the parcel for the year in which the buildings were demolished or
removed, but applying class rates for the current year, all in accordance with Minnesota Statutes,
Section 469.174, subdivision 10(d).
6. Authority staff and consultants are authorized to take any actions necessary to carry
out the intent of this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 20th day of November, 2023.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
A-1
EXHIBIT A
POTENTIAL PROPERTY TO BE INCLUDED IN REDEVELOPMENT TIF DISTRICT
34-028-24-44-0006
34-028-24-44-0007
34-028-24-44-0027
34-028-24-44-0023
November 10, 2023
Melissa Poehlman, AICP
Community Development Director
City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
TIF ANALYSIS FINDINGS FOR 500 78TH STREET EAST, 7700 AND 7730 PORTLAND AVENUE SOUTH
LHB was hired to inspect three buildings on four parcels in Richfield, Minnesota, to determine if they meet the definition of
“Substandard” as defined by Minnesota Statutes, Section 469.174, subdivision 10. The building parcels may potentially be
part of a future Redevelopment TIF District, so will need to be compliant with all the statutes pertaining to a Redevelopment
District.
The buildings are located at 500 78th Street East, 7700 and 7730 Portland Avenue South (Buildings A, B, and C in Diagram 1).
Diagram 1
TIF Analysis Findings for 500 78th St East, 7700 and 7730 Portland Avenue South Page: 2
City of Richfield
CONCLUSION
After evaluating the condition of the buildings on October 25 and November 3, 2023, and applying current statutory criteria for
a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the
buildings qualify as substandard.
The remainder of this letter and attachments describe our process and findings in detail.
MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS
The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174,
Subdivision 10(c), which states:
INTERIOR INSPECTION
“The municipality may not make such determination [that the building is structurally substandard] without an interior
inspection of the property...”
EXTERIOR INSPECTION AND OTHER MEANS
“An interior inspection of the property is not required, if the municipality finds that
(1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain
permission from the party that owns or controls the property; and
(2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard.”
DOCUMENTATION
“Written documentation of the findings and reasons why an interior inspection was not conducted must be made and
retained under section 469.175, subdivision 3, clause (1).”
QUALIFICATION REQUIREMENTS
Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires two tests for occupied parcels:
1. Coverage Test
“…parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or
gravel parking lots…”
The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174,
Subdivision 10(e), which states:
“For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots,
or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or
gravel parking lots, or other similar structures.”
The LHB team reviewed the following parcels:
Parcel A ID Number 340282440006
• The parcel is approximately 14,545 sf and is 100 percent covered by buildings, parking lots or other
improvements.
TIF Analysis Findings for 500 78th St East, 7700 and 7730 Portland Avenue South Page: 3
City of Richfield
Parcel B ID Number 340282440007
• The parcel is approximately 22,980 sf and is 100 percent covered by buildings, parking lots or other
improvements.
Parcel C ID Number 340282440023
• The parcel is approximately 29,176 sf and is 99 percent covered by buildings, parking lots or other
improvements.
Parcel D ID Number 340282440027
• The parcel is approximately 12,933 sf and is 100 percent covered by buildings, parking lots or other
improvements.
Findings
The parcels are covered by buildings, parking lots or other improvements, exceeding the 15 percent parcel requirement.
2. Condition of Buildings Test
Minnesota Statutes, Section 469.174, Subdivision 10(a) states:
“…and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance;”
Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states:
“For purposes of this subdivision, ‘structurally substandard’ shall mean containing defects in structural elements or a
combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate
egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total
significance to justify substantial renovation or clearance.”
We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174,
Subdivision 10(b)) defined as “structurally substandard”, due to concerns expressed by the State of Minnesota Court of
Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001.
Findings
Three buildings exceed the criteria required to be determined a substandard building (see the attached Building Code,
Condition Deficiency and Context Analysis Reports).
Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth
in Subdivision 10(c) which states:
“A building is not structurally substandard if it follows the building code applicable to new buildings or could be
modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the
same square footage and type on the site. The municipality may find that a building is not disqualified as structurally
substandard under the preceding sentence based on reasonably available evidence, such as the size, type, and age
of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence.”
“Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police
inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar
reliable evidence.”
LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section
469.174, Subdivision 10(c)) for the following reasons:
TIF Analysis Findings for 500 78th St East, 7700 and 7730 Portland Avenue South Page: 4
City of Richfield
• The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor
and Industry website where minimum construction standards are required by law.
• Chapter 13 of the 2015 Minnesota Building Code states, “Buildings shall be designed and constructed in
accordance with the International Energy Conservation Code.” Furthermore, Minnesota Rules, Chapter
1305.0021 Subpart 9 states, “References to the International Energy Conservation Code in this code mean the
Minnesota Energy Code…”
• Chapter 11 of the 2015 Minnesota Residential Code incorporates Minnesota Rules, Chapters, 1322 and 1323
Minnesota Energy Code.
• The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota
Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced throughout the
State of Minnesota.
• In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota
Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota
Energy Code is higher than buildings built prior to the enactment of the code.
Proper TIF analysis requires a comparison between the replacement value of a new building built under current code
standards with the repairs that would be necessary to bring the existing building up to current code standards. For an equal
comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction
estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code
deficiencies should also be identified in the existing structures.
Findings
The buildings have code deficiencies exceeding the 15 percent building code deficiency criteria required to be determined
substandard (see the attached Building Code, Condition Deficiency and Context Analysis Reports).
TEAM CREDENTIALS
MICHAEL A. FISCHER, AIA, LEED AP - PROJECT PRINCIPAL/TIF ANALYST
Michael has 34 years of experience as project principal, project manager, project designer and project architect on planning,
urban design, educational, commercial, and governmental projects. He has become an expert on Tax Increment Finance
District analysis assisting over 100 cities with strategic planning for TIF Districts. He is an Architectural Principal at LHB and
currently leads the Minneapolis office.
Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning master’s degrees in City Planning
and Real Estate Development from MIT. He has served on more than 50 committees, boards, and community task forces,
including City Council President in Superior, Wisconsin, Chair of the Duluth/Superior Metropolitan Planning Organization, and
Chair of the Edina, Minnesota Planning Commission. Most recently, he served as a member of the Edina city council and
Secretary of the Edina HRA. Michael has also managed and designed several award-winning architectural projects and was one
of four architects in the Country to receive the AIA Young Architects Citation in 1997.
PHIL FISHER – INSPECTOR
For 35 years, Phil Fisher worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools. At
the University of Minnesota, he earned his Bachelor of Science in Industrial Technology. He is a Certified Playground Safety
Inspector, Certified Plant Engineer, and is trained in Minnesota Enterprise Real Properties (MERP) Facility Condition
TIF Analysis Findings for 500 78th St East, 7700 and 7730 Portland Avenue South Page: 5
City of Richfield
Assessment (FCA). His FCA training was recently applied to the Minnesota Department of Natural Resources Facilities
Condition Assessment project involving over 2,000 buildings.
ATTACHMENTS
We have attached a Building Code, Condition Deficiency and Context Analysis Report, Replacement Cost Report, Code
Deficiency Report, and thumbnail photo sheets for each substandard building.
Please contact me at (612) 752-6920 if you have any questions.
LHB, INC.
MICHAEL A. FISCHER, AIA, LEED AP
c: LHB Project No.230805
M:\23Proj\230805\300 Design\Reports\Final Report\230805 Richfield 500 78th St East, 7700 and 7730 Portland Ave South Letter of
Finding.docx
APPENDIX A
Building Code, Condition Deficiency and Context Analysis Report
Replacement Cost Report
Code Deficiency Report
Photographs
Portland Ave South TIF District Page 1 of 3 Building Report
LHB Project No. 230805.00 Parcel A – 7700 Portland Ave So, Richfield, MN 55423
Portland Avenue South Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel A Automotive Repair Garage
Address: 7700 Portland Avenue South, Richfield, Minnesota 55423
Parcel ID: 053-3402824440006
Inspection Date(s) & Time(s): October 25, 2023, 11:25 am
Inspection Type: Interior and Exterior
Summary of Deficiencies: It is our professional opinion that this building is Substandard because:
- Substantial renovation is required to correct Conditions found.
- Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost: $417,424
Estimated Cost to Correct Building Code Deficiencies: $160,040
Percentage of Replacement Cost for Building Code Deficiencies: 38.3%
DEFECTS IN STRUCTURAL ELEMENTS
1. Steel lintels should be protected from rusting per code.
2. Exterior wall concrete block and mortar should be repaired/replaced to prevent water intrusion per code.
COMBINATION OF DEFICIENCIES
1. Essential Utilities and Facilities
a. There is no code required accessible parking.
b. There is no code required accessible route into the building.
c. The restroom is not code compliant for accessibility.
2. Light and Ventilation
a. Lighting does not comply with code.
b. The electrical wiring system does not comply with code.
c. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a. Thresholds do not comply with code for maximum height.
b. Door hardware does not comply with code.
c. There is no code required smoke detector system in the building.
d. There is no code required emergency exit signage in the building.
e. There is no code required emergency lighting system in the building.
f. There is no code required emergency notification system in the building.
Portland Ave South TIF District Page 2 of 3 Building Report
LHB Project No. 230805.00 Parcel A – 7700 Portland Ave So, Richfield, MN 55423
g. There is no code required building sprinkler system.
h. There is no code required fire caulking.
i. The flooring is damaged creating an impediment to emergency egress which is contrary to code.
4. Layout and Condition of Interior Partitions/Materials
a. The interior walls and ceilings should be repaired/repainted.
5. Exterior Construction
a. The roofing material is failing, allowing for water intrusion which is contrary to code.
b. Windows are failing, allowing for water intrusion which is contrary to code.
c. Exterior walls should be repaired and repainted.
DESCRIPTION OF CODE DEFICIENCIES
1. Steel lintels should be protected from rusting per code.
2. Concrete block should be repaired/replaced to prevent water intrusion per code.
3. Accessible parking should be created per code.
4. A code required accessible route into the building should be created.
5. The restroom does not comply with the accessibility code.
6. The lighting does not comply with code.
7. The electrical wiring system does not comply with code.
8. The HVAC system does not comply with code.
9. The damaged flooring should be repaired to create a code required unimpeded means for emergency egress.
10. Thresholds should be modified to comply with code.
11. Door hardware does not comply with code.
12. Code required fire caulking should be installed.
13. There is no code required smoke detector system.
14. There is no code required emergency exit signage system.
15. There is no code required emergency lighting system.
16. There is no code required emergency notification system.
17. There is no code required building sprinkler system.
18. Failed windows should be replaced to prevent water intrusion per code.
19. Failed roofing material should be replaced to prevent water intrusion per code.
OVERVIEW OF DEFICIENCIES
This building was most recently used as an automotive repair garage. There is no code required accessible parking or
accessible route into the building. The restroom does not comply with code. The electrical wiring and lighting systems do not
comply with code. Interior walls and ceiling should be repaired and repainted. A code required accessible route to all levels of
the building should be created. The HVAC system does not comply with code. There are no code required life safety systems
including smoke detectors, emergency lighting, notification and exiting, and building sprinklers. The exterior and interior block
and mortar are failing, allowing for water intrusion which is contrary to code. Exterior walls should be repainted. The roofing
material and windows are failing, allowing for water intrusion which is contrary to code.
Portland Ave South TIF District Page 3 of 3 Building Report
LHB Project No. 230805.00 Parcel A – 7700 Portland Ave So, Richfield, MN 55423
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whether the building is substandard.
M:\23Proj\230805\300 Design\Reports\Building Reports\A - 7700 Portland Ave So Building Report Redevelopment District.docx
Square Foot Cost Estimate Report Date:10/25/2023
Estimate Name:7700 Portland Avenue South
Building Type:Garage, Repair with Cast in Place Concrete / Steel Joists
Location:RICHFIELD, MN
Story Count:1
Story Height (L.F.):14.00
Floor Area (S.F.):2200
Labor Type:OPN
Basement Included:No
Data Release:Year 2023 Quarter 4
Cost Per Square Foot:$189.74
Building Cost:$417,424.71
Quantity % of Total Cost Per S.F. Cost
A Substructure 17.42% $28.74 $63,228.42
A1010 Standard Foundations $16.79 $36,937.32
A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF,
12" thick
220 $10.43 $22,949.96
A10101102700 Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity
6 KSF, 12" deep x 24" wide
242 $6.36 $13,987.36
A1030 Slab on Grade $11.55 $25,412.64
A10301204520 Slab on grade, 6" thick, light industrial, reinforced 2200 $11.55 $25,412.64
A2010 Basement Excavation $0.40 $878.46
A20101104560 Excavate and fill, 10,000 SF, 4' deep, sand, gravel, or common earth,
on site storage
2200 $0.40 $878.46
B Shell 40.38% $66.62 $146,563.99
B1020 Roof Construction $8.99 $19,787.92
B10201162500 Roof, steel joists, 1.5" 22 ga metal deck, on bearing walls, 40' bay,
25.5" deep, 40 PSF superimposed load, 61 PSF total load
2200 $8.99 $19,787.92
B2010 Exterior Walls $32.40 $71,284.01
B20101014000 Concrete wall, reinforced, 8' high, 8" thick, plain finish, 3000 PSI 2464 $32.40 $71,284.01
B2020 Exterior Windows $6.88 $15,131.48
B20201066650 Windows, aluminum, sliding, standard glass, 5' x 3'10.27 $6.88 $15,131.48
B2030 Exterior Doors $6.49 $14,272.88
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
0.66 $1.02 $2,234.43
B20302204450 Door, steel 24 gauge, overhead, sectional, manual operation, 12'‐0" x
12'‐0" opening
3.21 $5.47 $12,038.45
B3010 Roof Coverings $11.86 $26,087.70
B30101051400 Roofing, asphalt flood coat, gravel, base sheet, 3 plies 15# asphalt felt,
mopped
2200 $4.04 $8,888.40
B30103203090 Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite 2200 $2.70 $5,934.65
B30104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face 220 $3.96 $8,719.93
B30106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick 220 $1.16 $2,544.72
C Interiors 9.14% $15.08 $33,185.79
C1010 Partitions $5.32 $11,695.51
C10101022300 Lightweight block 4" thick 462 $1.87 $4,116.73
C10101046000 Concrete block (CMU) partition, light weight, hollow, 8" thick, no
finish
616 $3.44 $7,578.78
C1020 Interior Doors $0.38 $833.69
C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality,
flush, 3'‐0" x 7'‐0" x 1‐3/8"
0.73 $0.38 $833.69
C1030 Fittings $1.17 $2,584.28
C10301100460 Toilet partitions, cubicles, ceiling hung, stainless steel 1 $1.17 $2,584.28
C3010 Wall Finishes $5.87 $12,905.16
C30102202000 2 coats paint on masonry with block filler 2464 $4.32 $9,509.07
C30102300320 Painting, masonry or concrete, latex, brushwork, primer & 2 coats 880 $0.85 $1,871.52
C30102300340 Painting, masonry or concrete, latex, brushwork, addition for block
filler
880 $0.69 $1,524.57
Portland Avenue South Redevelopment TIF District
Replacement Cost Report
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Portland Ave South TIF District
LHB Project No. 230805.00 Page 1 of 3
Replacement Cost Report
Parcel A - 7700 Portland Ave So, Roichfield, MN 55432
C3020 Floor Finishes $1.68 $3,693.71
C30204100940 Concrete topping, hardeners, metallic additive, minimum 1980 $1.46 $3,211.70
C30204101580 Vinyl, composition tile, minimum 220 $0.22 $482.01
C3030 Ceiling Finishes $0.67 $1,473.44
C30302105800 Acoustic ceilings, 5/8" fiberglass board, 24" x 48" tile, tee grid,
suspended support
220 $0.67 $1,473.44
D Services 33.06% $54.55 $119,999.81
D2010 Plumbing Fixtures $4.10 $9,027.75
D20101102080 Water closet, vitreous china, bowl only with flush valve, wall hung 0.75 $1.39 $3,056.25
D20102102000 Urinal, vitreous china, wall hung 0.37 $0.30 $655.16
D20103102080 Lavatory w/trim, wall hung, PE on CI, 19" x 17" 0.75 $0.72 $1,593.79
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" 0.37 $1.22 $2,686.58
D20108201920 Water cooler, electric, wall hung, wheelchair type, 7.5 GPH 0.37 $0.47 $1,035.97
D2020 Domestic Water Distribution $0.88 $1,933.74
D20202202260 Gas fired water heater, residential, 100< F rise, 30 gal tank, 32 GPH 0.37 $0.88 $1,933.74
D2040 Rain Water Drainage $8.40 $18,490.33
D20402106200 Roof drain, steel galv sch 40 threaded, 4" diam piping, 10' high 1.12 $2.72 $5,979.98
D20402106240 Roof drain, steel galv sch 40 threaded, 4" diam piping, for each
additional foot add
102 $5.69 $12,510.35
D3050 Terminal & Package Units $11.32 $24,902.37
D30501503120 Rooftop, single zone, air conditioner, factories, 10,000 SF, 33.33 ton 2200 $11.32 $24,902.37
D3090 Other HVAC Systems/Equip $3.43 $7,544.05
D30903201040 Garage, single exhaust, 3" outlet, cars & light trucks, 1 bay 1 $3.43 $7,544.05
D4010 Sprinklers $6.35 $13,971.69
D40104101080 Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF 2200 $6.35 $13,971.69
D4020 Standpipes $1.58 $3,467.12
D40203101540 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1
floor
0.22 $1.44 $3,168.40
D40203101560 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe,
additional floors
0.09 $0.14 $298.72
D5010 Electrical Service/Distribution $2.72 $5,990.22
D50101200280 Overhead service installation, includes breakers, metering, 20' conduit
& wire, 3 phase, 4 wire, 120/208 V, 200 A
1 $1.69 $3,714.80
D50102300280 Feeder installation 600 V, including RGS conduit and XHHW wire, 200
A
30 $0.86 $1,902.12
D50102400200 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 400 A
0.03 $0.17 $373.30
D5020 Lighting and Branch Wiring $11.61 $25,540.28
D50201100280 Receptacles incl plate, box, conduit, wire, 4 per 1000 SF, .5 watts per
SF
2200 $2.68 $5,904.05
D50201350280 Miscellaneous power, 1 watt 2200 $0.36 $801.26
D50201400240 Central air conditioning power, 3 watts 2200 $0.79 $1,738.33
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
2200 $7.77 $17,096.64
D5030 Communications and Security $4.07 $8,962.96
D50309100452 Communication and alarm systems, fire detection, addressable, 25
detectors, includes outlets, boxes, conduit and wire
0.22 $2.42 $5,333.22
D50309100462 Fire alarm command center, addressable with voice, excl. wire &
conduit
0.22 $1.36 $2,992.83
D50309200104 Internet wiring, 4 data/voice outlets per 1000 S.F. 0.44 $0.29 $636.91
D5090 Other Electrical Systems $0.08 $169.30
D50902100280 Generator sets, w/battery, charger, muffler and transfer switch,
gas/gasoline operated, 3 phase, 4 wire, 277/480 V, 15 kW
0.22 $0.08 $169.30
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
Portland Ave South TIF District
LHB Project No. 230805.00 Page 2 of 3
Replacement Cost Report
Parcel A - 7700 Portland Ave So, Roichfield, MN 55432
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $164.99 $362,978.01
15.0% $24.75 $54,446.70
0.0% $0.00 $0.00
0.0% $0.00 $0.00
Total Building Cost $189.74 $417,424.71
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Portland Ave South TIF District
LHB Project No. 230805.00 Page 3 of 3
Replacement Cost Report
Parcel A - 7700 Portland Ave So, Roichfield, MN 55432
Code Deficiency Cost Report
Parcel A - 7700 Portland Avenue South, Richfield, Minnesota 55423 Building Name or Type
Parcel ID 053-3402824440006 Automotive Repair Garage
Code Related Cost Items Unit Cost Units Unit Quantity Total
Accessibility Items
Accessible Parking
Create code required accessible parking 100.00$ EA 1 100.00$
Accessible Routes
Create a code required accessible route into the building 500.00$ Lump 1 500.00$
Restroom
Modify restroom to comply with code 3.58$ SF 2,200 7,876.00$
Structural Elements
Steel Lintels
Protect steel lintels from rusting per code 750.00$ Lump 1 750.00$
Concrete Masonry Units
Repair or replace damaged/missing concrete masonry units to prevent
water intrusion per code 9.95$ SF 2,200 21,890.00$
Exiting
Flooring
Repair/replace damaged flooring to create an unimpeded means for
emergency egress per code 1.68$ SF 2,200 3,696.00$
Thresholds
Modify thresholds to comply with code for maximum height 500.00$ Lump 1 500.00$
Door Hardware
Install code compliant door hardware 1,250.00$ Lump 1 1,250.00$
Emergency Exit Signs
Install code required emergency exit signs 1,250.00$ SF 3 3,750.00$
Emergency Notification System
Install a code required emergency notification systme 1.36$ SF 2,200 2,992.00$
Fire Protection
Fire Caulking
Install code required fire caulking 0.15$ SF 2,200 330.00$
Smoke Detectors
Install code required smoke detectors 2.42$ SF 2,200 5,324.00$
Building Sprinkler Systems
Install a code required building sprinkler system 7.93$ SF 2,200 17,446.00$
Portland Avenue South Redevelopment TIF District
Portland Ave South TIF District
LHB Project No. 230805.00 Page 1 of 2
Code Deficiency Cost Report
Parcel A - 7700 Portland Ave So, Richfield, MN 55423
Code Related Cost Items Unit Cost Units Unit Quantity Total
Exterior Construction
Windows
Replace failed windows to prevent water intrusion per code 6.88$ SF 2,200 15,136.00$
Roof Construction
Roofing Materials
Remove failed roofing material and replace to prevent water intrusion
per code 11.86$ SF 2,200 26,092.00$
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system 11.32$ SF 2,200 24,904.00$
Electrical
Install a code compliant electrical wiring system 6.55$ SF 2,200 14,410.00$
Install a code compliant electrical lighting system 7.77$ SF 2,200 17,094.00$
Total Code Improvements 164,040$
Portland Ave South TIF District
LHB Project No. 230805.00 Page 2 of 2
Code Deficiency Cost Report
Parcel A - 7700 Portland Ave So, Richfield, MN 55423
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Portland Ave South TIF District Page 1 of 3 Building Report
LHB Project No. 230805.00 Parcel B – 7730 Portland Ave So, Richfield, MN 55423
Portland Avenue South Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel B Automotive Repair Garage
Address: 7730 Portland Avenue South, Richfield, Minnesota 55423
Parcel ID: 053-3402824440007
Inspection Date(s) & Time(s): October 25, 2023, 11:50 am
Inspection Type: Interior and Exterior
Summary of Deficiencies: It is our professional opinion that this building is Substandard because:
- Substantial renovation is required to correct Conditions found.
- Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost: $863,626
Estimated Cost to Correct Building Code Deficiencies: $355,708
Percentage of Replacement Cost for Building Code Deficiencies: 41.2%
DEFECTS IN STRUCTURAL ELEMENTS
1. Steel lintels should be protected from rusting per code.
2. Exterior wall concrete block and mortar should be repaired/replaced to prevent water intrusion per code.
COMBINATION OF DEFICIENCIES
1. Essential Utilities and Facilities
a. There is no code required accessible parking.
b. There is no code required accessible route into the building.
c. The restroom is not code compliant for accessibility.
2. Light and Ventilation
a. Lighting does not comply with code.
b. The electrical wiring system does not comply with code.
c. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a. Thresholds do not comply with code for maximum height.
b. The flooring is damaged creating an impediment to emergency egress which is contrary to code.
c. Door hardware does not comply with code.
d. There is no code required accessible route to all levels of the building
e. There is no code required smoke detector system in the building.
f. There is no code required emergency exit signage in the building.
Portland Ave South TIF District Page 2 of 3 Building Report
LHB Project No. 230805.00 Parcel B – 7730 Portland Ave So, Richfield, MN 55423
g. There is no code required emergency lighting system in the building.
h. There is no code required emergency notification system in the building.
i. There is no code required building sprinkler system.
j. There is no code required fire caulking at through wall and ceiling penetrations.
4. Layout and Condition of Interior Partitions/Materials
a. The interior walls and ceilings should be repaired/repainted.
5. Exterior Construction
a. The roofing material is failing, allowing for water intrusion which is contrary to code.
b. Windows are failing, allowing for water intrusion which is contrary to code.
c. Exterior walls should be repainted.
DESCRIPTION OF CODE DEFICIENCIES
1. Code required accessible parking should be created.
2. A code required accessible route into the building should be created.
3. There is no code compliant accessible route to all levels of the building.
4. The restroom does not comply with accessibility code.
5. The lighting does not comply with code.
6. The electrical wiring system does not comply with code.
7. The HVAC system does not comply with code.
8. Thresholds do not comply with code for maximum height.
9. Door hardware does not comply with code.
10. Flooring should be prepared to create an unimpeded means for emergency egress to comply with code.
11. There is no code required smoke detector system.
12. There is no code required emergency exit signage system.
13. There is no code required emergency lighting system.
14. There is no code required emergency notification system.
15. There is no code required building sprinkler system.
16. There is no code required fire caulking.
17. Steel lintels should be protected from rusting per code.
18. Exterior block and mortar should be repaired/replaced to prevent water intrusion per code.
19. Failed windows should be replaced to prevent water intrusion per code.
20. Failed roofing material should be replaced to prevent water intrusion per code.
Portland Ave South TIF District Page 3 of 3 Building Report
LHB Project No. 230805.00 Parcel B – 7730 Portland Ave So, Richfield, MN 55423
OVERVIEW OF DEFICIENCIES
This building was most recently used as an automotive repair garage. There is no code required accessible parking or
accessible route into the building. The restroom does not comply with code. The electrical wiring and lighting systems do not
comply with code. Interior walls and ceiling should be repaired and repainted. A code required accessible route to all levels of
the building should be created. The HVAC system does not comply with code. There are no code required life safety systems
including smoke detectors, emergency lighting, notification and exiting, and building sprinklers. The exterior block and mortar
are failing, allowing for water intrusion which is contrary to code. The roofing material and windows are failing, allowing for
water intrusion which is contrary to code. Exterior walls should be repainted.
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whether the building is substandard.
M:\23Proj\230805\300 Design\Reports\Building Reports\B - 7730 Portland Ave So Building Report Redevelopment District.docx
Square Foot Cost Estimate Report Date:10/25/2023
Estimate Name:7730 Portland Avenue South
Building Type:Garage, Repair with Concrete Block / Steel Joists
Location:RICHFIELD, MN
Story Count:1
Story Height (L.F.):21
Floor Area (S.F.):5600
Labor Type:OPN
Basement Included:No
Data Release:Year 2023 Quarter 4
Cost Per Square Foot:$154.22
Building Cost:$863,626.41
Quantity % of Total Cost Per S.F. Cost
A Substructure 17.09% $22.92 $128,373.07
A1010 Standard Foundations $10.97 $61,450.27
A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF,
12" thick
366 $6.82 $38,180.39
A10101102700 Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity
6 KSF, 12" deep x 24" wide
402.6 $4.16 $23,269.88
A1030 Slab on Grade $11.55 $64,686.72
A10301204520 Slab on grade, 6" thick, light industrial, reinforced 5600 $11.55 $64,686.72
A2010 Basement Excavation $0.40 $2,236.08
A20101104560 Excavate and fill, 10,000 SF, 4' deep, sand, gravel, or common earth,
on site storage
5600 $0.40 $2,236.08
B Shell 36.54% $49.00 $274,426.50
B1020 Roof Construction $8.99 $50,369.26
B10201162500 Roof, steel joists, 1.5" 22 ga metal deck, on bearing walls, 40' bay,
25.5" deep, 40 PSF superimposed load, 61 PSF total load
5600 $8.99 $50,369.26
B2010 Exterior Walls $16.80 $94,096.62
B20101116280 Concrete block (CMU) wall, regular weight, 75% solid, 8 x 8 x 16, 4500
PSI, reinforced, vertical #5@32", grouted
6148.8 $16.80 $94,096.62
B2020 Exterior Windows $6.74 $37,759.91
B20201066650 Windows, aluminum, sliding, standard glass, 5' x 3'25.62 $6.74 $37,759.91
B2030 Exterior Doors $6.38 $35,729.04
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
1.68 $1.02 $5,687.63
B20302204450 Door, steel 24 gauge, overhead, sectional, manual operation, 12'‐0" x
12'‐0" opening
8.01 $5.36 $30,041.41
B3010 Roof Coverings $10.08 $56,471.67
B30101051400 Roofing, asphalt flood coat, gravel, base sheet, 3 plies 15# asphalt felt,
mopped
5600 $4.04 $22,625.01
B30103203090 Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite 5600 $2.70 $15,106.39
B30104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face 366 $2.59 $14,506.79
B30106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick 366 $0.76 $4,233.48
C Interiors 10.65% $14.29 $80,003.58
C1010 Partitions $5.32 $29,770.37
C10101022300 Lightweight block 4" thick 1176 $1.87 $10,478.94
C10101046000 Concrete block (CMU) partition, light weight, hollow, 8" thick, no
finish
1568 $3.44 $19,291.43
C1020 Interior Doors $0.38 $2,122.13
C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality,
flush, 3'‐0" x 7'‐0" x 1‐3/8"
1.87 $0.38 $2,122.13
C1030 Fittings $0.46 $2,584.28
C10301100460 Toilet partitions, cubicles, ceiling hung, stainless steel 1 $0.46 $2,584.28
C3010 Wall Finishes $5.78 $32,374.06
C30102202000 2 coats paint on masonry with block filler 6148.8 $4.24 $23,729.45
C30102300320 Painting, masonry or concrete, latex, brushwork, primer & 2 coats 2240 $0.85 $4,763.88
C30102300340 Painting, masonry or concrete, latex, brushwork, addition for block
filler
2240 $0.69 $3,880.73
Portland Avenue South Redevelopment TIF District
Replacement Cost Report
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Portland Ave South TIF District
LHB Project No. 230805.00 Page 1 of 2
Replacement Cost Report
Parcel B - 7730 Portland Ave So, Richfield, MN 55423
C3020 Floor Finishes $1.68 $9,402.17
C30204100940 Concrete topping, hardeners, metallic additive, minimum 5040 $1.46 $8,175.23
C30204101580 Vinyl, composition tile, minimum 560 $0.22 $1,226.94
C3030 Ceiling Finishes $0.67 $3,750.57
C30302105800 Acoustic ceilings, 5/8" fiberglass board, 24" x 48" tile, tee grid,
suspended support
560 $0.67 $3,750.57
D Services 35.71% $47.89 $268,176.34
D2010 Plumbing Fixtures $4.10 $22,979.70
D20101102080 Water closet, vitreous china, bowl only with flush valve, wall hung 1.9 $1.39 $7,779.54
D20102102000 Urinal, vitreous china, wall hung 0.95 $0.30 $1,667.67
D20103102080 Lavatory w/trim, wall hung, PE on CI, 19" x 17" 1.9 $0.72 $4,056.92
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" 0.95 $1.22 $6,838.57
D20108201920 Water cooler, electric, wall hung, wheelchair type, 7.5 GPH 0.95 $0.47 $2,637.00
D2020 Domestic Water Distribution $0.88 $4,922.25
D20202202260 Gas fired water heater, residential, 100< F rise, 30 gal tank, 32 GPH 0.95 $0.88 $4,922.25
D2040 Rain Water Drainage $4.95 $27,732.12
D20402106200 Roof drain, steel galv sch 40 threaded, 4" diam piping, 10' high 2.86 $2.72 $15,221.77
D20402106240 Roof drain, steel galv sch 40 threaded, 4" diam piping, for each
additional foot add
102 $2.23 $12,510.35
D3050 Terminal & Package Units $11.32 $63,387.86
D30501503120 Rooftop, single zone, air conditioner, factories, 10,000 SF, 33.33 ton 5600 $11.32 $63,387.86
D3090 Other HVAC Systems/Equip $1.96 $10,948.05
D30903201040 Garage, single exhaust, 3" outlet, cars & light trucks, 1 bay 1 $1.35 $7,544.05
D30903201060 Garage, single exhaust, 3" outlet, additional bays up to seven bays 2 $0.61 $3,404.00
D4010 Sprinklers $6.35 $35,564.31
D40104101080 Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF 5600 $6.35 $35,564.31
D4020 Standpipes $1.58 $8,825.41
D40203101540 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1
floor
0.56 $1.44 $8,065.02
D40203101560 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe,
additional floors
0.22 $0.14 $760.39
D5010 Electrical Service/Distribution $1.07 $5,990.22
D50101200280 Overhead service installation, includes breakers, metering, 20' conduit
& wire, 3 phase, 4 wire, 120/208 V, 200 A
1 $0.66 $3,714.80
D50102300280 Feeder installation 600 V, including RGS conduit and XHHW wire, 200
A
30 $0.34 $1,902.12
D50102400200 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 400 A
0.03 $0.07 $373.30
D5020 Lighting and Branch Wiring $11.61 $65,011.64
D50201100280 Receptacles incl plate, box, conduit, wire, 4 per 1000 SF, .5 watts per
SF
5600 $2.68 $15,028.50
D50201350280 Miscellaneous power, 1 watt 5600 $0.36 $2,039.58
D50201400240 Central air conditioning power, 3 watts 5600 $0.79 $4,424.84
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
5600 $7.77 $43,518.72
D5030 Communications and Security $4.07 $22,814.78
D50309100452 Communication and alarm systems, fire detection, addressable, 25
detectors, includes outlets, boxes, conduit and wire
0.56 $2.42 $13,575.46
D50309100462 Fire alarm command center, addressable with voice, excl. wire &
conduit
0.56 $1.36 $7,618.10
D50309200104 Internet wiring, 4 data/voice outlets per 1000 S.F. 1.12 $0.29 $1,621.22
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $134.10 $750,979.49
15.0% $20.12 $112,646.92
0.0% $0.00 $0.00
0.0% $0.00 $0.00
Total Building Cost $154.22 $863,626.41
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Portland Ave South TIF District
LHB Project No. 230805.00 Page 2 of 2
Replacement Cost Report
Parcel B - 7730 Portland Ave So, Richfield, MN 55423
Code Deficiency Cost Report
Parcel B - 7730 Portland Avenue South, Richfield, Minnesota 55423 Building Name or Type
Parcel ID 053-3402824440007 Automotive Repair Garage
Code Related Cost Items Unit Cost Units Unit Quantity Total
Accessibility Items
Accessible Parking
Create code required accessible parking 100.00$ EA 1 100.00$
Accessible Routes
Create a code required accessible route into the building 500.00$ Lump 1 500.00$
Create a code required accessible route to all levels of the building 2,500.00$ Lump 1 2,500.00$
Restroom
Modify restroom to comply with code 3.58$ SF 5,600 20,048.00$
Structural Elements
Steel Lintels
Protect steel lintels from rusting per code 1,250.00$ Lump 1 1,250.00$
Concrete Masonry Units
Repair or replace damaged/missing concrete masonry units to prevent
water intrusion per code 3.25$ SF 5,600 18,200.00$
Exiting
Flooring
Repair/replace damaged flooring to create an unimpeded means for
emergency egress per code 1.68$ SF 5,600 9,408.00$
Thresholds
Modify thresholds to comply with code for maximum height 1,000.00$ Lump 1 1,000.00$
Door Hardware
Install code compliant door hardware 1,500.00$ Lump 1 1,500.00$
Emergency Exit Signs
Install code required emergency exit signs 1,250.00$ EA 5 6,250.00$
Emergency Notification System
Install a code required emergency notification systme 1.36$ SF 5,600 7,616.00$
Fire Protection
Fire Caulking
Install code required fire caulking 0.15$ SF 5,600 840.00$
Smoke Detectors
Install code required smoke detectors 2.42$ SF 5,600 13,552.00$
Building Sprinkler Systems
Install a code required building sprinkler system 7.93$ SF 5,600 44,408.00$
Portland Avenue South Redevelopment TIF District
Portland Ave South TIF District
LHB Project No. 230805.00 Page 1 of 2
Code Deficiency Cost Report
Parcel B - 7730 Portland Ave So, Richfield, MN 55423
Code Related Cost Items Unit Cost Units Unit Quantity Total
Exterior Construction
Windows
Replace failed windows to prevent water intrusion per code 6.74$ SF 5,600 37,744.00$
Roof Construction
Roofing Materials
Remove failed roofing material and replace to prevent water intrusion
per code 10.08$ SF 5,600 56,448.00$
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system 11.32$ SF 5,600 63,392.00$
Electrical
Install a code compliant electrical wiring system 4.90$ SF 5,600 27,440.00$
Install a code compliant electrical lighting system 7.77$ SF 5,600 43,512.00$
Total Code Improvements 355,708$
Portland Ave South TIF District
LHB Project No. 230805.00 Page 2 of 2
Code Deficiency Cost Report
Parcel B - 7730 Portland Ave So, Richfield, MN 55423
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Portland Ave South TIF District Page 1 of 3 Building Report
LHB Project No. 230805.00 Parcel C – 500 78th St E, Richfield, MN 55423
Portland Avenue South Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel C Khan’s Mongolian Barbecue
Address: 500 78th Street East, Richfield, Minnesota 55423
Parcel ID: 3402824440023
Inspection Date(s) & Time(s): November 3, 2023, 8:00 am
Inspection Type: Interior and Exterior
Summary of Deficiencies: It is our professional opinion that this building is Substandard because:
- Substantial renovation is required to correct Conditions found.
- Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost: $1,471,188
Estimated Cost to Correct Building Code Deficiencies: $626,320
Percentage of Replacement Cost for Building Code Deficiencies: 42.6%
DEFECTS IN STRUCTURAL ELEMENTS
1. No defects observed.
COMBINATION OF DEFICIENCIES
1. Essential Utilities and Facilities
a. There is no code compliant access into the building.
b. Transaction counters do not comply with the accessibility code.
c. Restrooms do not comply with code.
2. Light and Ventilation
a. The lighting system does not comply with code.
b. The electrical system does not comply with code.
c. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a. Thresholds do not comply with code for maximum height.
b. Code required fire caulking should be installed in all through wall and ceiling penetrations.
c. Door hardware does not comply with code.
d. Exit signage does not comply with code.
e. Smoke detectors do not comply with code.
f. Flooring material is damaged creating and impediment to emergency egress which is contrary to code.
Portland Ave South TIF District Page 2 of 3 Building Report
LHB Project No. 230805.00 Parcel C – 500 78th St E, Richfield, MN 55423
g. Emergency lighting does not comply with code.
h. There is no code required emergency notification system.
i. There is no code required building sprinkler system.
4. Layout and Condition of Interior Partitions/Materials
a. Interior walls should be repaired/repainted.
b. The carpet should be cleaned.
c. There is mold present on the kitchen walls.
5. Exterior Construction
a. Wood trim should be repainted.
b. The exterior concrete walls are failing allowing for water intrusion which is contrary to code.
c. Windows are failing allowing for water intrusion which is contrary to code.
d. Roofing materials are failing allowing for water intrusion which is contrary to code.
DESCRIPTION OF CODE DEFICIENCIES
1. Code-compliant transaction counters should be installed.
2. Restrooms should be made code compliant.
3. The lighting system should be modified to comply with code.
4. The electrical wiring system should be modified to comply with code.
5. A code compliant HVAC system should be installed.
6. Thresholds do not comply with code.
7. Install code compliant door hardware.
8. Fire caulking should be installed where required by code.
9. Install code compliant smoke detectors.
10. Install code compliant emergency lighting.
11. Install code compliant emergency exit signage.
12. A code required emergency notification system should be installed.
13. A code required building sprinkler system should be installed.
14. Failing exterior concrete block should be repaired to prevent water intrusion per code.
15. Failing windows should be replaced to prevent water intrusion per code.
16. Roofing materials are failing allowing for water intrusion which is contrary to code.
OVERVIEW OF DEFICIENCIES
This restaurant is currently not in operation. Exterior windows are failing allowing for water intrusion which is contrary to code.
Code-compliant transaction counters should be installed. The restrooms are not code compliant. Interior walls should be
repaired/repainted. All code required life safety systems should be installed. The interior walls should be repaired and
repainted. The carpet should be cleaned. Code compliant lighting should be installed. Code-compliant electrical wiring
should be installed. A code-compliant HVAC system should be installed. Exterior concrete block is failing allowing for water
intrusion which is contrary to code. The roofing material is failing, allowing for water intrusion which is contrary to code.
Portland Ave South TIF District Page 3 of 3 Building Report
LHB Project No. 230805.00 Parcel C – 500 78th St E, Richfield, MN 55423
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whether the building is substandard.
M:\23Proj\230805\300 Design\Reports\Building Reports\C - 500 78th St East Building Report Redevelopment District.docx
Replacement Cost Report
Square Foot Cost Estimate Report Date:11/7/2023
Estimate Name:500 78th Street East
Building Type:Restaurant with Brick Veneer / Reinforced Concrete
Location:RICHFIELD, MN
Story Count:1
Story Height (L.F.):14
Floor Area (S.F.):5800
Labor Type:OPN
Basement Included:No
Data Release:Year 2023 Quarter 4
Cost Per Square Foot:$253.65
Building Cost:$1,471,188.70
Quantity % of Total Cost Per S.F. Cost
A Substructure 9.00% $19.86 $115,180.55
A1010 Standard Foundations $11.79 $68,355.53
A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF,
12" thick
320 $5.76 $33,381.76
A10101102700 Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity
6 KSF, 12" deep x 24" wide
320 $3.19 $18,495.68
A10102107410 Spread footings, 3000 PSI concrete, load 100K, soil bearing capacity 6
KSF, 4' ‐ 6" square x 15" deep
29 $2.84 $16,478.09
A1030 Slab on Grade $7.38 $42,824.76
A10301202240 Slab on grade, 4" thick, non industrial, reinforced 5800 $7.38 $42,824.76
A2010 Basement Excavation $0.69 $4,000.26
A20101103380 Excavate and fill, 4000 SF, 4' deep, sand, gravel, or common earth, on
site storage
5800 $0.69 $4,000.26
B Shell 32.47% $71.63 $415,436.48
B1010 Floor Construction $2.58 $14,981.35
B10102049913 Cast‐in‐place concrete column, 12", square, tied, minimum
reinforcing, 150K load, 10'‐14' story height, 135 lbs/LF, 4000PSI
185.6 $2.58 $14,981.35
B1020 Roof Construction $20.55 $119,182.75
B10207257000 Roof, concrete, beam and slab, 25'x25' bay, 40 PSF superimposed
load, 20" deep beam, 9" slab, 152 PSF total load
5800 $20.55 $119,182.75
B2010 Exterior Walls $19.67 $114,087.68
B20101291420 Brick veneer wall, standard face, 2x6 studs @ 16" back‐up, common
bond
3136 $19.67 $114,087.68
B2020 Exterior Windows $6.24 $36,179.36
B20202101100 Aluminum flush tube frame, for 1/4"glass,1‐3/4"x4", 5'x6' opening, no
intermediate horizontals
224 $1.21 $7,023.74
B20202202050 Glazing panel, plate glass, 1/4" thick, tempered 1120 $5.03 $29,155.62
B2030 Exterior Doors $8.89 $51,572.98
B20301106550 Door, aluminum & glass, without transom, full vision, double door,
hardware, 6'‐0" x 7'‐0" opening
3.48 $6.20 $35,961.54
B20301107250 Door, aluminum & glass, with transom, non‐standard, double door,
hardware, 6'‐0" x 10'‐0" opening
1.16 $2.01 $11,684.27
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
1.16 $0.68 $3,927.17
B3010 Roof Coverings $11.80 $68,455.84
B30101203400 Roofing, single ply membrane, EPDM, 60 mils, loosely laid, stone
ballast
5800 $2.57 $14,918.24
B30103202700 Insulation, rigid, roof deck, extruded polystyrene, 40 PSI compressive
strength, 4" thick, R20
5800 $6.69 $38,793.24
B30104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face 320 $2.19 $12,683.54
B30106100050 Gutters, box, aluminum, .027" thick, 5", enameled finish 160 $0.29 $1,662.51
B30106200100 Downspout, aluminum, rectangular, 2" x 3", embossed mill finish,
.020" thick
64 $0.07 $398.31
Portland Avenue South Redevelopment TIF District
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Portland Ave South TIF District
LHB Project No. 230805.00 Page 1 of 3
Replacement Cost Report
Parcel C - 500 78th St E, Richfield, MN 55423
B3020 Roof Openings $1.89 $10,976.52
B30202100300 Roof hatch, with curb, 1" fiberglass insulation, 2'‐6" x 3'‐0", galvanized
steel, 165 lbs
2.32 $0.86 $4,964.38
B30202102100 Smoke hatch, unlabeled, galvanized, 2'‐6" x 3', not incl hand winch
operator
2.32 $1.04 $6,012.14
C Interiors 13.15% $29.00 $168,211.54
C1010 Partitions $4.27 $24,765.63
C10101045500 Concrete block (CMU) partition, light weight, hollow, 6" thick, no
finish
2320 $4.27 $24,765.63
C1020 Interior Doors $0.81 $4,709.00
C10201022510 Door, single leaf, wood frame, 3'‐0" x 7'‐0" x 1‐3/8", birch, hollow core 5.8 $0.81 $4,709.00
C1030 Fittings $1.05 $6,080.78
C10301100420 Toilet partitions, cubicles, ceiling hung, plastic laminate 5.8 $1.05 $6,080.78
C3010 Wall Finishes $5.98 $34,708.14
C30102202000 2 coats paint on masonry with block filler 3136 $2.09 $12,102.45
C30102202000 2 coats paint on masonry with block filler 3712 $2.47 $14,325.35
C30102301940 Ceramic tile, thin set, 4‐1/4" x 4‐1/4" 928 $1.43 $8,280.34
C3020 Floor Finishes $10.28 $59,630.93
C30204100080 Carpet tile, nylon, fusion bonded, 18" x 18" or 24" x 24", 35 oz 4060 $3.84 $22,243.85
C30204101800 Tile, quarry tile, mud set, minimum 870 $3.05 $17,667.09
C30204101820 Tile, quarry tile, mud set, maximum 870 $3.40 $19,719.99
C3030 Ceiling Finishes $6.61 $38,317.06
C30301105300 Gypsum board ceilings, 5/8" fire rated gypsum board, painted and
textured finish,1" x 3" wood, 16" OC furring, concrete support
5800 $6.61 $38,317.06
D Services 45.37% $100.08 $580,465.95
D2010 Plumbing Fixtures $12.25 $71,028.95
D20101102080 Water closet, vitreous china, bowl only with flush valve, wall hung 5.8 $4.09 $23,698.16
D20102102000 Urinal, vitreous china, wall hung 2.32 $0.70 $4,064.07
D20103101560 Lavatory w/trim, vanity top, PE on CI, 20" x 18" 5.8 $2.07 $12,008.78
D20104102040 Kitchen sink w/trim, countertop, stainless steel, 44" x 22" triple bowl 5.8 $3.07 $17,829.29
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" 1.16 $1.44 $8,332.72
D20108201880 Water cooler, electric, wall hung, dual height, 14.3 GPH 1.16 $0.88 $5,095.93
D2020 Domestic Water Distribution $4.55 $26,377.76
D20202502220 Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480
GPH
1.16 $4.55 $26,377.76
D2040 Rain Water Drainage $2.47 $14,312.76
D20402104120 Roof drain, CI, soil,single hub, 3" diam, 10' high 6.96 $2.38 $13,825.21
D20402104160 Roof drain, CI, soil,single hub, 3" diam, for each additional foot add 13.92 $0.08 $487.55
D3050 Terminal & Package Units $43.02 $249,512.89
D30501554040 Rooftop, multizone, air conditioner, restaurants, 3,000 SF, 15.00 ton 4640 $35.36 $205,100.06
D30501556900 Commercial kitchen exhaust/make‐up air system, rooftop, gas, 2000
CFM
1.16 $7.66 $44,412.83
D4010 Sprinklers $12.87 $74,637.03
D40104100580 Wet pipe sprinkler systems, steel, light hazard, 1 floor, 2000 SF 5800 $10.72 $62,179.48
D40104101020 Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 1000 SF 1160 $2.15 $12,457.55
D4020 Standpipes $3.46 $20,047.34
D40203101540 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1
floor
1.39 $3.46 $20,047.34
D5010 Electrical Service/Distribution $4.73 $27,458.41
D50101200320 Overhead service installation, includes breakers, metering, 20'
conduit & wire, 3 phase, 4 wire, 120/208 V, 400 A
1 $1.28 $7,406.58
D50102300320 Feeder installation 600 V, including RGS conduit and XHHW wire, 400
A
60 $1.31 $7,608.48
D50102400200 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 400 A
1 $2.15 $12,443.35
Portland Ave South TIF District
LHB Project No. 230805.00 Page 2 of 3
Replacement Cost Report
Parcel C - 500 78th St E, Richfield, MN 55423
D5020 Lighting and Branch Wiring $13.24 $76,818.39
D50201100520 Receptacles incl plate, box, conduit, wire, 10 per 1000 SF, 1.2 watts
per SF
5800 $3.71 $21,538.71
D50201350400 Miscellaneous power, 1.8 watts 5800 $0.57 $3,318.06
D50201400320 Central air conditioning power, 6 watts 5800 $1.19 $6,888.66
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
5800 $7.77 $45,072.96
D5030 Communications and Security $3.50 $20,272.42
D50309100450 Communication and alarm systems, fire detection, addressable, 12
detectors, includes outlets, boxes, conduit and wire
1.16 $2.78 $16,122.17
D50309100460 Fire alarm command center, addressable without voice, excl. wire &
conduit
1.16 $0.72 $4,150.25
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $220.57 $1,279,294.52
15.0% $33.09 $191,894.18
0.0% $0.00 $0.00
0.0% $0.00 $0.00
Total Building Cost $253.65 $1,471,188.70
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Portland Ave South TIF District
LHB Project No. 230805.00 Page 3 of 3
Replacement Cost Report
Parcel C - 500 78th St E, Richfield, MN 55423
Code Deficiency Cost Report
Parcel C - 500 78th Street East, Richfield, Minnesota 55423 Building Name or Type
Parcel ID 3402824440023 Khan's Mongolian Barbecue
Code Related Cost Items Unit Cost Units Unit Quantity Total
Accessibility Items
Transaction Counters
Modify transaction counters to comply with code 1,500.00$ Lump 1 1,500.00$
Restrooms
Modify restrooms to comply with code 7.91$ SF 5,800 45,878.00$
Structural Elements
No deficiencies observed -$
Exiting
Thresholds
Modify thresholds to comply with code for maximum height 100.00$ EA 4 400.00$
Door Hardware
Install code compliant door hardware 250.00$ EA 6 1,500.00$
Emergency Lighting
Install code compliant emergency lighting 2.15$ SF 5,800 12,470.00$
Emergency Notification System
Install a code required emergency notification system 0.72$ SF 5,800 4,176.00$
Emergency Exit Signs
Install code compliant emergency exit signs 0.75$ SF 5,800 4,350.00$
Fire Protection
Fire Caulking
Install code required fire caulking 0.07$ SF 5,800 406.00$
Smoke Detectors
Install code required smoke detectors 2.78$ SF 5,800 16,124.00$
Building Sprinkler System
Install a code required building sprinkler system 16.33$ SF 5,800 94,714.00$
Exterior Construction
Concrete Block
Repair/replace failed concrete block to prevent water intrusion per
code 0.50$ SF 5,800 2,900.00$
Windows
Replace failing windows to prevent water intrusion per code 6.24$ SF 5,800 36,192.00$
Portland Avenue South Redevelopment TIF District
Portland Ave South TIF District
LHB Project No. 230805.00 Page 1 of 2
Code Deficiency Cost Report
Parcel C - 500 78th St E, Richfield, MN 55423
Code Related Cost Items Unit Cost Units Unit Quantity Total
Roof Construction
Roofing Materials
Replace failed roofing materials to prevent water intrusion per code 13.69$ SF 5,800 79,402.00$
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system 43.02$ SF 5,800 249,516.00$
Electrical
Install a code compliant electrical wiring system 5.47$ SF 5,800 31,726.00$
Install a code compliant lighting system 7.77$ SF 5,800 45,066.00$
Total Code Improvements 626,320$
Portland Ave South TIF District
LHB Project No. 230805.00 Page 2 of 2
Code Deficiency Cost Report
Parcel C - 500 78th St E, Richfield, MN 55423
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Portland Avenue South Redevelopment TIF District | Parcel C
1
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Portland Avenue South Redevelopment TIF District | Parcel C
2
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Portland Avenue South Redevelopment TIF District | Parcel C
3
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Portland Avenue South Redevelopment TIF District | Parcel C
4
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Portland Avenue South Redevelopment TIF District | Parcel C
5
AGENDA SECTION: Consent Calendar
AGENDA ITEM # 2.C.
STAFF REPORT NO. 29
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
11/20/2023
Celeste McDermott, Housing SpecialistREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW: Melissa Poehlman, Executive Director
11/16/2023
ITEM FOR COUNCIL CONSIDERATION:
Consider the approval of a resolution accepting contributions for the 2023 Tour of Remodeled Homes.
EXECUTIVE SUMMARY:
The Community Development Department solicited financial sponsorship for the 2023 Renovation
Celebration: Tour of Remodeled Homes in Richfield (Tour). Five sponsors donated $200 each to sponsor the
Tour. The funds were used to provide gift cards to participating homeowners and for marketing expenses.
State law requires the Housing and Redevelopment Authority (HRA) to accept the funds by resolution.
Grants were provided by:
The Center for Energy and Environment
House Dressing Company
Plekkenpol Builders Inc.
Remodeling Dimensions; and
Steve Schneeberger of Keller Williams Realty
RECOMMENDED ACTION:
By motion: Approve a resolution allowing the acceptance of monetary support solicited for the 2023
Tour of Remodeled Homes.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The Tour was held on October 7, 2023. Six homes were open to the public from 1:00 to 5:00 p.m.
Approximately 350 people attended the Tour to learn about the remodeling projects from the
homeowners and sponsors. Information about HRA housing programs, and how various projects impact
a home’s value, was also provided.
The Center for Energy and Environment, House Dressing Company, Plekkenpol Builders Inc.,
Remodeling Dimensions, and Steve Schneeberger of Keller Williams Realty participated in the Tour
and provided $200 to be a Tour sponsor. They were present at the Tour and their names and logos were
part of marketing materials.
The funds were used to defray marketing expenses for the Tour and to provide gift cards to the six
homeowners for participating.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
While accepting donations doesn’t address the Strategic Plan priorities directly, promoting the Tour
furthers the Comprehensive Plan goals to maintain and enhance the City’s housing stock and to provide
a full range of housing choices.
C .P OL IC IE S (resolutions, ordinances, regulations, statutes, exc):
The Tour was part of the HRA’s housing marketing plan that was adopted in 2014. The Tour highlighted
investment in the local housing stock and offered information on the HRA’s remodeling programs.
D .C R IT IC AL T IMIN G IS S U E S:
A resolution accepting the donations needs to be passed before the end of the 2023 calendar year.
E .F IN AN C IAL IMPAC T:
The HRA received $1,000 in donations towards Tour expenses. One lender, three designers/builders,
and one realtor donated $200 each to sponsor the Tour.
F.L E GAL C ON S ID E R AT ION:
Minnesota S tatute 465.03 requires that every acceptance of a grant or devise of real or personal
property on terms prescribed by the donor be made by resolution.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Direct staff to return the donations to the donors.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution A ccepting D onations Resolution L etter
RESOLUTION NO.
RESOLUTION AUTHORIZING RICHFIELD COMMUNITY DEVELOPMENT
DEPARTMENT TO ACCEPT DONATIONS FROM THE LISTED BUSINESSES FOR
DESIGNATED USES
WHEREAS, the Community Development Department received checks from the
following for the 2023 Renovation Celebration: Tour of Remodeled Homes;
Center for Energy and Environment
House Dressing Company
Plekkenpol Builders, Inc.
Remodeling Dimensions
Steve Schneeberger, Keller Williams Realty
and,
WHEREAS, Minnesota Statute requires every acceptance of a grant or devise of
real or personal property on terms prescribed by the donor be made by resolution; and,
WHEREAS, the donated funds will be used towards the designated events
sponsored by the Community Development Department.
NOW, THEREFORE, BE IT RESOLVED that the Director of Community
Development will accept and distribute the donations as specified.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of November, 2023.
__________________________
Erin Vrieze Daniels, Chair
ATTEST:
___________________
Sean Hayford Oleary, Secretary
Checks Received
2023
Business Name Amount of Donation Designation
Center for Energy and
Environment
$200.00
(used for gift cards and
marketing expenses)
Remodeled Home Tour
House Dressing
Company
$200
(used for gift cards and
marketing expenses)
Remodeled Home Tour
Plekkenpol Builders,
Inc
$200
(used for gift cards and
marketing expenses)
Remodeled Home Tour
Remodeling
Dimensions
$200
(used for gift cards and
marketing expenses)
Remodeled Home Tour
Steve Schneeberger,
Keller Williams Realty
$200
(used for gift cards and
marketing expenses)
Remodeled Home Tour
Total: $1,000
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #4.
STAFF REPORT NO. 30
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
11/20/2023
Julie Urban, Asst. Community Development DirectorREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW: Melissa Poehlman, Executive Director
11/16/2023
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a modification to the Tax Increment Financing Plan, Tax Increment Financing District
2018-1, RF64, withdrawing parcels from the District.
EXECUTIVE SUMMARY:
In 2018, the Housing and Redevelopment Authority (HRA) approved a Contract for Private Redevelopment
(Contract) with NHH Properties, now doing business as Cedar Point Investments, LLC (Developer), to
construct up to 80 townhome units in the Cedar Point II Housing area (63rd to 65th Streets, 16th Avenue to
Richfield Parkway). The number of units was later reduced to 64. To facilitate the redevelopment and
encourage housing affordability, the HRA approved the creation of a housing Tax Increment Financing (TIF)
District and the issuance of two TIF Notes in the amount of $900,000 each. Each Note was to be issued
when construction had begun on each set of 32 units, and payment is contingent upon 95% of the units being
sold to households earning up to 100% (family of 1-2) or 115% (family of 3 or more) of the Area Median
Income (AMI).
The first Note was issued in 2021, but as construction and sales neared completion of the first 32 units, cost
increases impacted the affordability of the project compelling the Developer to ask the HRA to allow the
second 32 units to be sold to non-income-qualified buyers. The HRA approved an amendment to the Contract
on October 18, 2021, that allows the Developer to sell units as market-rate with the understanding that the
second TIF Note would not be issued and any non-qualified parcels removed from the District.
The amendment includes a provision whereby the Developer could resume selling to income-
qualified buyers in blocks of eight units, in the event that market conditions improved. Conditions,
however, have not improved and have in fact worsened with rising interest rates. Construction is
now completed on all 64 units and while 13 units remain to be sold, there is no block of eight units
which would meet the amendment requirement, so all 32 units need to be removed from the TIF
District for the District to remain in compliance.
As explained in the attached memorandum from Ehler's, the HRA's financial consultant, the
proposed modification to the TIF Plan removes 39 parcels from the TIF District, which
encompasses the 32 market-rate townhomes and adjacent common areas. The removal will bring
the District into compliance with Minnesota Statute.
RECOMMENDED ACTION:
By motion: Adopt a resolution approving a modification to the Tax Increment Financing Plan, Tax
Increment Financing District 2018-1, RF64, withdrawing parcels from the District, contingent upon City
Council approval.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
On August 20, 2018, the HRA approved the Contract with NHH Companies, LLC for the
townhome portion of the development. The Contract was later assigned to Cedar Point
Investments, LLC.
The first eight townhomes had been reserved by buyers and construction was nearing
completion when the pandemic began in 2020.
On October 18, 2021, the HRA approved an amendment to the Contract allowing the
Developer to sell units to non-income-qualified buyers. The combination of rising
construction costs, pandemic-related supply chain delays, and high interest rates caused
a significant rise in sale prices that made the units out of reach of income-qualified
buyers.
Construction has been completed on all 64 units. 31 of the first 32 units have been sold.
19 of the remaining 32 units have been sold. One unit remains to be sold to an income-
qualified buyer, and 13 units remain to be sold at market-rate.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Removing parcels from the TIF District will place the entire valuation in the City's tax base, meeting the
Strategic Plan desired outcome to increase the tax base.
While the townhomes are no longer being sold affordably, the project still advances equity in the
community because funds from the sale of the apartment side of the development were transferred to the
Affordable Housing Trust Fund and used to provide affordable homeownership opportunities through the
HRA's First-Time Homebuyer Program, which provides homeownership opportunities to low-income
buyers and has helped buyers who are Black, Indigenous, and People of Color enter the
homeownership market.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
Minnesota Statute requires that at least 95 % of the units in a housing district be initially purchased and
occupied by individuals whose family income is less than or equal to 100 to 115 % of the AMI.
The RF64 development consists of both the townhomes as well as 237 units of market-rate apartments
on the east side of the block. The development was negotiated and approved prior to the adoption of the
City's Inclusionary Housing Policy. While the primary goal of the project was redevelopment of the
Cedar Corridor area, affordability standards were applied to the development. Specifically 95% of the
townhomes were expected to be affordable, 100% of the apartments are market-rate but provide a 10%
contribution in TIF to the City's Housing and Redevelopment Fund (HRF). In addition, a portion of the
sales proceeds from the apartment side of the development were directed to the City's Affordable
Housing Trust Fund.
D.CRITICAL TIMING ISSUES:
The City's financial consultant recommends that the modification be approved before the end of the
year, so the parcels can be removed from the district before tax increment is collected in 2024.
E.FINANCIAL IMPACT:
In addition to approving TIF funding, the HRA assisted in the acquisition and land assembly costs for
the project, loaning the project $630,000 for the acquisition of two properties. 20% of the annual tax
increment generated by the project is set aside to repay this loan. The amount to be generated to repay
the interfund loan is reduced if the TIF District is reduced, so under the terms of the amendment, the
Developer makes a payment to the HRA in the amount of $8,506 at the sale of each market-rate unit to
cover any shortfall in increment. This money is currently being held in escrow until the HRA's financial
consultant determines the final shortfall amount to be covered by the Developer.
F.LEGAL CONSIDERATION:
The proposed modification is required to bring the 2018-1 Housing TIF District into compliance with
Minnesota Statute.
Legally, a modification removing parcels from a District only requires action by the HRA; however, it has
been City practice to bring modifications to both HRA and Council, so the approval is contingent upon
C ouncil approval. C ouncil consideration is scheduled for November 28.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve the proposed modification.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
Memorandum from E hlers C over Memo
Modification to TIF P lan, RF 64 B ackup Material
RF 64 TIF P lan Mod Map B ackup Material
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING THE REMOVAL OF PARCELS FROM
THE 2018-1 RF64 TAX INCREMENT DISTRICT
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) was created pursuant to Minnesota Statutes, Sections 469.001 through
469.047, as amended, and is authorized to transact business and exercise its powers by a
resolution of the City Council of the City of Richfield, Minnesota (the “City”); and; and
WHEREAS, on August 20, 2018, the Authority authorized the creation of the RF64 Tax
Increment District, a housing district (the “TIF District”); and
WHEREAS, the Authority entered into a Contract for Private Development (the “Contract”)
with Cedar Point Investments, LLC (the “Developer”) on September 17, 2018; and
WHEREAS, a TIF Note in the amount of $900,000 was issued in August of 2021; and
WHEREAS, the Developer has determined that due to the changing market conditions,
they are not able to complete the remaining townhomes in accordance with the Contract; and
WHEREAS, in order to remain in compliance with the Minnesota Statutes, Sections
469.174 through 469.1794 (the “TIF Act”), at least 95% of the units must be initially purchased and
occupied by individuals whose family income is less than or equal to 100% to 115% of the area
median income; and
WHEREAS, the Developer is requesting that 39 parcels be removed from the TIF District
and the 32 qualified townhomes remain in the TIF District; and
WHEREAS, Minn. Stat. Section 469.175, subd. 4 states that the TIF Plan may be modified
without a public hearing as long as the only modification is elimination of parcels from the district
and the current net tax capacity of the parcels eliminated from the district equals or exceeds the net
tax capacity of those parcels in the district's original net tax capacity; and
WHEREAS, Modification #1 for the TIF District has been prepared and made available to
the Authority Board for review; 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.Modification #1 for the TIF District is hereby approved.
2.The Chair and the Executive Director are hereby authorized to take all actions
deemed necessary to carry out the intentions of Modification #1.
3.This resolution shall be in full force and effect as of the date hereof.
2
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 20th day of November, 2023.
Erin Vrieze Daniels, Chair
Sean Hayford Oleary, Secretary
RC125-1 (JAE)
637083v1
▪
▪
PID : Pay 2023/24 Taxable MV - 2023 Taxable MV - 2024
26-028-24-11-0086 6363 16th Ave. S. 93,000 457,300
26-028-24-11-0087 6361 16th Ave. S. 81,000 443,200
26-028-24-11-0088 6359 16th Ave. S. 81,000 458,000
26-028-24-11-0089 6357 16th Ave. S. 93,000 452,500
26-028-24-11-0090 6349 16th Ave. S. 97,000 468,300
26-028-24-11-0091 6351 16th Ave. S. 85,000 448,000
26-028-24-11-0092 6353 16th Ave. S. 85,000 458,000
26-028-24-11-0093 6355 16th Ave. S. 97,000 442,500
26-028-24-11-0094 6347 16th Ave. S. 92,000 313,300
26-028-24-11-0095 6345 16th Ave. S. 80,000 438,000
26-028-24-11-0096 6343 16th Ave. S. 80,000 299,000
26-028-24-11-0097 6341 16th Ave. S. 92,000 313,300
26-028-24-11-0098 6333 16th Ave. S. 92,000 482,300
26-028-24-11-0099 6335 16th Ave. S. 80,000 299,000
26-028-24-11-0100 6337 16th Ave. S. 80,000 299,000
26-028-24-11-0101 6339 16th Ave. S. 92,000 31,300
26-028-24-11-0102 6331 16th Ave. S. 92,000 211,300
26-028-24-11-0103 6329 16th Ave. S. 80,000 197,000
26-028-24-11-0104 6327 16th Ave. S. 80,000 197,000
26-028-24-11-0105 6325 16th Ave. S. 92,000 211,300
26-028-24-11-0106 6317 16th Ave. S. 92,000 211,300
26-028-24-11-0107 6319 16th Ave. S. 80,000 197,000
26-028-24-11-0108 6321 16th Ave. S. 80,000 197,000
26-028-24-11-0109 6323 16th Ave. S. 92,000 211,300
26-028-24-11-0110 6315 16th Ave. S. 92,000 122,300
26-028-24-11-0111 6313 16th Ave. S. 80,000 197,000
26-028-24-11-0112 6311 16th Ave. S. 80,000 197,000
26-028-24-11-0113 6309 16th Ave. S. 92,000 211,300
26-028-24-11-0114 6301 16th Ave. S. 92,000 211,300
26-028-24-11-0115 6303 16th Ave. S. 80,000 197,000
26-028-24-11-0116 6305 16th Ave. S. 80,000 197,000
26-028-24-11-0117 6307 16th Ave. S. 92,000 211,300
26-028-24-11-0119 Unassigned - Driveway
26-028-24-11-0120 Unassigned - Driveway
26-028-24-11-0121 Unassigned - Driveway
26-028-24-11-0122 Unassigned - Driveway
26-028-24-14-0009 6433 16th Ave. S. Individual home owner
26-028-24-14-0002 6509 16th Ave. S. Mt. Clavary
26-028-24-14-0003 6501 16th Ave. S. Mt. Clavary
Pay 2023/24 Market Value Total: 2,776,000 9,280,400
Address
Parcels to be removed from the RF64 TIF District
PID : Base / Pay 2019 Address Taxable MV - Pay 2019
26-028-24-11-0033 6309 - 16th Ave. S 192,000
26-028-24-11-0034 6315 - 16th Ave. S. 0
26-028-24-11-0035 6321 - 16th Ave. S. 192,000
26-028-24-11-0036 6327 - 16th Ave. S. 182,000
26-028-24-11-0037 6333 - 16th Ave. S. 0
26-028-24-11-0038 6339 - 16th Ave. S. 186,000
26-028-24-11-0039 6509 - 16th Ave. S. 0
26-028-24-14-0002 6501 - 16th Ave. S. 235,000
26-028-24-14-0003
Base Market Value Total:987,000
Parcels to be removed from the RF64 TIF District
PID : Pay 2023/24
26-028-24-11-0082 6365 16th Ave. S.
26-028-24-11-0083 6367 16th Ave. S.
26-028-24-11-0084 6369 16th Ave. S.
26-028-24-11-0085 6371 16th Ave. S.
26-028-24-14-0150 6457 16th Ave. S.
26-028-24-14-0151 6459 16th Ave. S.
26-028-24-14-0152 6461 16th Ave. S.
26-028-24-14-0153 6463 16th Ave. S.
26-028-24-14-0154 6449 16th Ave. S.
26-028-24-14-0155 6451 16th Ave. S.
26-028-24-14-0156 6453 16th Ave. S.
26-028-24-14-0157 6455 16th Ave. S.
26-028-24-14-0161 6431 16th Ave. S.
26-028-24-14-0162 6429 16th Ave. S.
26-028-24-14-0163 6427 16th Ave. S.
26-028-24-14-0164 6425 16th Ave. S.
26-028-24-14-0165 6417 16th Ave. S.
26-028-24-14-0166 6419 16th Ave. S.
26-028-24-14-0167 6421 16th Ave. S.
26-028-24-14-0168 6423 16th Ave. S.
26-028-24-14-0169 6415 16th Ave. S.
26-028-24-14-0170 6413 16th Ave. S.
26-028-24-14-0171 6411 16th Ave. S.
26-028-24-14-0172 6409 16th Ave. S.
26-028-24-14-0173 6401 16th Ave. S.
26-028-24-14-0174 6403 16th Ave. S.
26-028-24-14-0175 6405 16th Ave. S.
26-028-24-14-0176 6407 16th Ave. S.
26-028-24-14-0177 6379 16th Ave. S.
26-028-24-14-0178 6377 16th Ave. S.
26-028-24-14-0179 6375 16th Ave. S.
26-028-24-14-0180 6373 16th Ave. S.
26-028-24-14-0158 Unassigned - Driveway
26-028-24-14-0159 Unassigned - Driveway
26-028-24-11-0118 Unassigned - Driveway
26-028-24-14-0183 Unassigned - Driveway
26-028-24-14-0182 Unassigned - Driveway
26-028-24-14-0181 Unassigned - Driveway
26-028-24-14-0184 Common Area
Address
Parcels to Remain in the RF64TIF District
PID : Pay 2023/24
26-028-24-11-0086 6363 16th Ave. S.
26-028-24-11-0087 6361 16th Ave. S.
26-028-24-11-0088 6359 16th Ave. S.
26-028-24-11-0089 6357 16th Ave. S.
26-028-24-11-0090 6349 16th Ave. S.
26-028-24-11-0091 6351 16th Ave. S.
26-028-24-11-0092 6353 16th Ave. S.
26-028-24-11-0093 6355 16th Ave. S.
26-028-24-11-0094 6347 16th Ave. S.
26-028-24-11-0095 6345 16th Ave. S.
26-028-24-11-0096 6343 16th Ave. S.
26-028-24-11-0097 6341 16th Ave. S.
26-028-24-11-0098 6333 16th Ave. S.
26-028-24-11-0099 6335 16th Ave. S.
26-028-24-11-0100 6337 16th Ave. S.
26-028-24-11-0101 6339 16th Ave. S.
26-028-24-11-0102 6331 16th Ave. S.
26-028-24-11-0103 6329 16th Ave. S.
26-028-24-11-0104 6327 16th Ave. S.
26-028-24-11-0105 6325 16th Ave. S.
26-028-24-11-0106 6317 16th Ave. S.
26-028-24-11-0107 6319 16th Ave. S.
26-028-24-11-0108 6321 16th Ave. S.
26-028-24-11-0109 6323 16th Ave. S.
26-028-24-11-0110 6315 16th Ave. S.
26-028-24-11-0111 6313 16th Ave. S.
26-028-24-11-0112 6311 16th Ave. S.
26-028-24-11-0113 6309 16th Ave. S.
26-028-24-11-0114 6301 16th Ave. S.
26-028-24-11-0115 6303 16th Ave. S.
26-028-24-11-0116 6305 16th Ave. S.
26-028-24-11-0117 6307 16th Ave. S.
26-028-24-11-0119 Unassigned - Driveway
26-028-24-11-0120 Unassigned - Driveway
26-028-24-11-0121 Unassigned - Driveway
26-028-24-11-0122 Unassigned - Driveway
26-028-24-14-0009 6433 16th Ave. S.
26-028-24-14-0002 6509 16th Ave. S.
26-028-24-14-0003 6501 16th Ave. S.
Address
Parcels to be removed from the
RF64 TIF District
PID : Pay 2023/24
26-028-24-11-0082 6365 16th Ave. S.
26-028-24-11-0083 6367 16th Ave. S.
26-028-24-11-0084 6369 16th Ave. S.
26-028-24-11-0085 6371 16th Ave. S.
26-028-24-14-0150 6457 16th Ave. S.
26-028-24-14-0151 6459 16th Ave. S.
26-028-24-14-0152 6461 16th Ave. S.
26-028-24-14-0153 6463 16th Ave. S.
26-028-24-14-0154 6449 16th Ave. S.
26-028-24-14-0155 6451 16th Ave. S.
26-028-24-14-0156 6453 16th Ave. S.
26-028-24-14-0157 6455 16th Ave. S.
26-028-24-14-0161 6431 16th Ave. S.
26-028-24-14-0162 6429 16th Ave. S.
26-028-24-14-0163 6427 16th Ave. S.
26-028-24-14-0164 6425 16th Ave. S.
26-028-24-14-0165 6417 16th Ave. S.
26-028-24-14-0166 6419 16th Ave. S.
26-028-24-14-0167 6421 16th Ave. S.
26-028-24-14-0168 6423 16th Ave. S.
26-028-24-14-0169 6415 16th Ave. S.
26-028-24-14-0170 6413 16th Ave. S.
26-028-24-14-0171 6411 16th Ave. S.
26-028-24-14-0172 6409 16th Ave. S.
26-028-24-14-0173 6401 16th Ave. S.
26-028-24-14-0174 6403 16th Ave. S.
26-028-24-14-0175 6405 16th Ave. S.
26-028-24-14-0176 6407 16th Ave. S.
26-028-24-14-0177 6379 16th Ave. S.
26-028-24-14-0178 6377 16th Ave. S.
26-028-24-14-0179 6375 16th Ave. S.
26-028-24-14-0180 6373 16th Ave. S.
26-028-24-14-0158 Unassigned - Driveway
26-028-24-14-0159 Unassigned - Driveway
26-028-24-11-0118 Unassigned - Driveway
26-028-24-14-0183 Unassigned - Driveway
26-028-24-14-0182 Unassigned - Driveway
26-028-24-14-0181 Unassigned - Driveway
26-028-24-14-0184 Common Area
Address
Parcels to Remain in the RF64TIF District
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #5.
STAFF REPORT NO. 31
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
11/20/2023
Melissa Poehlman, Executive DirectorREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW: Melissa Poehlman, Executive Director
11/16/2023
ITEM FOR COUNCIL CONSIDERATION:
Consider acceptance of the Richfield Housing and Redevelopment Authority Tax Increment Financing
District Status Update.
EXECUTIVE SUMMARY:
The Tax Increment Financing (TIF) District Status Update is presented to the Richfield Housing and
Redevelopment Authority (HRA) annually for review. There are currently 13 active TIF Districts. This year,
the TIF Status Update shows that the HRA is able to meet all of its Pay-As-You-Go Note and General
Obligation Tax Increment Bond obligations.
Senior Municipal Advisor Rebecca Kurtz will provide a brief summary of the TIF Status Update.
RECOMMENDED ACTION:
By motion: Accept the Richfield Housing and Redevelopment Authority Annual Tax Increment
Financing District Status Update.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The annual TIF Status Update is provided to the HRA to summarize tax increment financial activity and
comment on the status of the HRA’s ability to meet its tax increment obligations.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
N/A
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The TIF Status Update is presented annually to keep the HRA informed of the ability to meet
outstanding obligations.
D.CRITICAL TIMING ISSUES:
None
E.FINANCIAL IMPACT:
See detailed TIF Status Update document.
F.LEGAL CONSIDERATION:
N/A
ALTERNATIVE RECOMMENDATION(S):
None
PRINCIPAL PARTIES EXPECTED AT MEETING:
Rebecca Kurtz, Ehlers, Inc.
ATTACHMENTS:
Description Type
TIF Update Backup Material
11/16/2023
1
Richfield Housing and Redevelopment
Authority
2023 Tax Increment Financing Update
November 20, 2023
2
• TIF Management Plan completed 2022/23
Assess opportunities and challenges
Compliance requirements
Details by District for City and HRA staff
• Review 2023 changes
Overview
1
2
11/16/2023
2
3
• Districts are on track
No TIF plan modifications recommended
No compliance issues
• Pooling opportunities available
10% to Housing Trust Fund
Temporary Spending Authority
Regular 25% pooling
Findings
4
District Summary of TIF Districts
District
Lyndale
Gateway /
Interchange
West
Urban Village City Bella
Lyndale
Gateway West
(Kensington
Park)
Cedar Avenue
(Rya)
2010-1
Woodlake
Housing
Lyndale
Gardens
District Type Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Housing Redevelopment
First Increment 2000 2000 2005 2004 2008 2014 2014
Anticipated Last
Increment December 2025 December 2025 December 2030 December 2029 December 2043 December 2039 December 2039
Current Obligations
G.O. Tax
Increment Ref
Bds 2010B, Best
Buy PAYGO &
Richfield Sr
Housing(TCCH)
PAYGO
PAYGO Notes A
& B
City Bella
PAYGO Note
IFL(ILN TIF
District & HRA
General Acct),
2012B G.O. TIF
Ref Bds
IFL to General
Fund; CPII Dev.
PAYGO Note
PAYGO Notes A
& B, IFLs to HRA
General Fund
PAYGO Master
Developer Note &
Secondary Note B
2023 Estimated TIF
Revenues $2,157,504 $992,736 $690,552 $354,739 $489,653 $239,494 $536,188
District
2014-1 RM
Senior Living
Richfield
(Havenwood)
2017-1
Chamberlain
2018-1 Cedar
Pointe
Townhomes -
RF 64
2020-2 Emi
(101 66th St E)
2020-3 Lynk65
(Lynvue)
2020-1 Henley
II (Riley)
District Type Redevelopment Housing Housing Redevelopment Redevelopment Housing
First Increment 2018 2020 2022 2023 2023 2022
Anticipated Last
Increment December 2043 December 2045 December 2046 December 2038 December 2042 December 2047
Current Obligations
IFL to Non Tax
Increment
Account &
Mesaba Capital
Dev LLC PAYGO
IFL to Non Tax
Increment
Account &
Chamberlain
Apartments LLS
PAYGO
PAYGO Note to
Cedar Point
Investments, LLC
& IFL to Non Tax
Increment
Account
IFL to General
Fund
IFL to General
Fund
PAYGO Note to
Richfield Property
Holdings, LLC &
IFL to General
Fund
2023 Estimated TIF
Revenues $188,994 $933,885 $152,105 $7,420 $0 $138,180
3
4
11/16/2023
3
5
Impact of Decertified TIF Districts
TIF District Decertifies 2024 2025 2026 2027 2028 2029 2030 2031 2032
Lyndale Gateway / Interchange West 12/31/2025 1,301,234 (2)
Urban Village 12/31/2025 860,256
City Bella 12/31/2030 676,472
Lyndale Gateway West (Kensington Park) 12/31/2029 340,692
Total Annual Captured Net Tax Capacity Returned to Tax Rolls - - 2,161,490 - - - 340,692 676,472 -
City Tax Rate for Taxes Payable in 2023 (1)50.841%
Estimated Additional Annual Tax Levy Available (1)-$ -$ 1,098,923$ -$ -$ -$ 173,211$ 343,925$ -$
(1) - Assumptions:
- Calculates additional dollars the City could levy and still maintain the same tax rate as Pay 2023.
- Assumes no change in existing tax base from prior year
- Assumes no change in the Fiscal Disparities Distribution Dollars from Pay 2023
(2) - Notes:
- The value for this District reflects the preliminary value from Hennepin County of $81M for the Best Buy portion of the District.
Projected
6
Outstanding Obligations
Highlights
• 2 bonds remaining
2010B – done 2/1/24
2012B – done 2/1/25
• PAYGO Notes
Risk is on the
developer
• Interfund Loans
Covers early Admin
Pay for project costs
Risk is on City/HRA
Lyndale Gateway / Interchange West 2010B G.O. Refunding Bonds (Bridge)
Richfield Sr. Housing PAYGO Note
Best Buy PAYGO Note
Urban Village Note A PAYGO Note
Note B PAYGO Note
City Bella City Bella PAYGO Note
Lyndale Gateway West (Kensington Park) 2012B Taxable TIF Refunding Bonds
Interfund Loan - From ILN
Interfund Loan - From HRA General Fund
Interfund Loan - From HRA Development Fund
Cedar Avenue (Rya)CPII Development PAYGO Note
2010-1 Woodlake Housing PAYGO Note A
Interfund Loan - From HRA General Fund (Land)
Lyndale Gardens Master PAYGO Note
Secondary PAYGO Note (Henley)
2014-1 RM Senior Living Richfield (Havenwood) RM Senior Housing PAYGO Note
2017-1 Chamberlain Chamberlain Apartments PAYGO Note
2018-1 Cedar Pointe Townhomes - RF 64 Cedar Point PAYGO Note
2020-2 Emi (101 66th St E)Interfund Loan - From HRA General Fund
2020-3 Lynk65 (Lynvue)Interfund Loan - From HRA General Fund
2020-1 Henley II (Riley)Interfund Loan - From HRA General Fund
Richfield Property Holdings, LLC PAYGO Note
590,800
2,025,987
3,836,362
57,869,134
13,803,987
1,100,000
533,913
4,830
85,613
1296 9,022
1289 690,341
1290 2,729,520
1291 2,400,000
1292 8,203,878
1293 900,000
1,491,077
1281 / 1282
1280
Summary of Outstanding Non-Pooled Debt Obligations as of 12/31/2022
TIF No.District Name Obligation Outstanding
1,170,000$
399,313
10,622,304 1285
1286 755,000
1287,1288
1294 10,794
1295 12,008
5
6
11/16/2023
4
7
• Best Buy requested the Minimum Assessment Agreement (MMA) be
amended for 2024 and terminated for 2025. Modifications to the
MMA require action by City, County and School District
HRA and Council approved amendment and termination in May 2023
County Board approve amendment in September 2023
School District has not taken action
• MMA remains for 2024 market value of $118.5 million
Best Buy
8
• Owner-occupied housing TIF district
Requires that at least 95% of the units be purchased and occupied by
persons with family income less than or equal to 100-115% area median
income
For Richfield in 2023: $124,900 to $143,635
• Recommending removal of 39 parcels so District complies with
Statutory income requirements
32 units remain in District
2018-1 TIF District: RF 64
7
8
11/16/2023
5
9
• Unobligated TIF may be used to redevelop sites or build affordable
housing not located in a TIF District
• 3 Districts identified
Lyndale Gateway / Interchange West
Urban Village
City Bella
• 3 Pooling Options
Special Legislation for 10% pooling to Housing Trust Fund
Temporary Legislation for Spending Plans
25% Regular Pooling
Pooling Opportunities
10
• 2021 Special Legislation
Designate an additional 10% for affordable housing
Transfer this additional 10% out of TIF funds to Housing Trust Fund
$750,000 transferred in 2022
Funds available now, can be transferred anytime through December 31, 2026
Special Legislation: 10% to Housing Trust Fund
Year
Lyndale
Gateway /
Interchange
West District
Urban Village
TIF District
City Bella TIF
District TOTAL
2022 250,000$ 250,000$ 250,000$ 750,000$
2023 - - - -
2024 - - - -
2025 - - - -
2026 - -
TOTAL 250,000$ 250,000$ 250,000$ 750,000$
9
10
11/16/2023
6
11
• TIF Authorities can use unobligated tax increment to help stimulate private
development
Spending Plan adopted December 13, 2022
Funds transferred to a new fund
Funds must be spent by December 31, 2025
Unspent increment transferred back to TIF Fund(s)
Temporary Spending Authority: Ends 12/2025
Year
Lyndale
Gateway /
Interchange
West District
Urban Village
TIF District
City Bella TIF
District TOTAL
2022 3,145,000$ 760,000$ 465,000$ 4,370,000$
TOTAL 3,145,000$ 760,000$ 465,000$ 4,370,000$
12
• Public Redevelopment
Costs
Spent within Richfield
Redevelopment Project Area (City
limits)
Includes up to 10% for
Administrative costs
Must meet criteria for “TIF eligible”
of Pooled District
Other redevelopment districts can
also participate
25% Regular Pooling
Year
Lyndale
Gateway /
Interchange
West District
Urban Village
TIF District
City Bella TIF
District TOTAL
2022 - - --
2023 1,200,000 195,688 140,381 1,536,069
2024 1,200,000 198,013 124,526 1,522,539
2025 1,024,801 179,708 124,527 1,329,036
2026 - - 124,526 124,526
2027 - - 124,527 124,527
2028 - - 124,526 124,526
2029 - - 124,527 124,527
2030 - - 868,137 868,137
TOTAL 3,424,801$ 573,409$ 1,755,674$ 5,753,884$
*Assumes no changes to MMA for Best Buy for Pay 2025.
11
12
11/16/2023
7
13
Housing Districts and Affordable Housing
• Affordable Criteria
20% of units at 50% or less of median income
40% of units at 60% or less of median income
Rental projects remain affordable for life of TIF districts
Owner-occupied affordable for initial sale
• No limit - Considered “In-District”
• 2 Districts with future potential
2010-1 Woodlake Housing: $3.3M by 2039
$150,000/year until PAYGO Note paid in 2035; $250,000/year until decertification
2017-1 The Chamberlain: $8.7M by 2045
$0/year until PAYGO Note is paid in 2036; $875,000/year until decertification
14
• Every parcel must have qualifying activity
Compliance: 4-Year Rule
Four-Year Rule
Deadline
TIF District
May 20232018-1 Cedar Pointe Townhomes – RF64
March 20252020-2: Emi (101 – 66
th Street E.)
March 20252020-3: Lynk 65 (Lynvue)
July 20252020-1: Henley II (Riley)
13
14
11/16/2023
8
15
• Districts must have an obligation
Compliance: 5-Year Rule
Five-Year Rule
Deadline
TIF District
March 20262020-2: Emi (101 – 66
th Street E.)
March 20262020-3: Lynk 65 (Lynvue)
16
• Statute allows for up to 10% of revenues or expenses for
administrative costs
Depends on when district was established
Includes staff time, legal expenses, financial advisory expenses,
publication and reporting expenses
Staff time must be documented
10% limit must be met when district decertifies
Not an annual calculation
Cannot take 10% “off the top”
Administrative Expenses
15
16
11/16/2023
9
17
• All districts on track and in compliance
Consider resolution to remove parcels from 2018-1 TIF District: RF 64
No budget modifications recommended at this time
• Looking Ahead
Market value for Best Buy may decrease for Pay 2025
Full MAA value likely not returning to tax rolls after decertification
Affordable housing opportunities available now and in the future
Pooling and In-District opportunities
Findings & Recommendations
18
AQ
&
17
18
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #6.
STAFF REPORT NO. 32
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
11/20/2023
Jan Youngquist, Economic Development ManagerREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a Memorandum of Understanding with Dani, Laura, and Mariela Jimenez related to
the Housing and Redevelopment Authority property located at 1430 66th Street East for construction
of a bakery and deli.
EXECUTIVE SUMMARY:
Ms. Dani Jimenez is the owner of two La Vaquita Mexican markets in Richfield. Ms. Jimenez is looking to
expand her operations by opening a bakery to provide fresh baked goods to the markets and also provide
some "grab and go" deli selections. Ms. Jimenez approached the Housing and Redevelopment Authority
(HRA) expressing interest in purchasing the HRA-owned property at 1430 66th Street East for development
of the bakery/deli. Ms. Jimenez is working with her relatives, Laura and Mariela Jimenez on this proposal
(collectively referred to as the Developers).
The Developers presented their concept to the HRA at a work session on March 20, 2023. The HRA
Commissioners expressed support in concept for the proposal and for continuing conversations regarding the
property. The Developers are working with an architect to develop preliminary plans for the
bakery/deli, but are hesitant to spend money if the HRA may sell the property to another developer.
The attached Memorandum of Understanding (MOU) describes the intent of the Developers and HRA to
continue discussions regarding the proposed project. The Developers would be responsible for working with
an architect to develop preliminary plans and conduct a preliminary financial assessment of the project for
consideration of financial assistance from the HRA. The HRA would not market, negotiate or contract with
another party for development or sale of the property. The term of the MOU would be six months and may be
extended another six months with administrative approval from the HRA Executive Director.
If the terms of the MOU are approved, staff would work with the Developers to evaluate preliminary plans and
financial information for the project to bring to the HRA for consideration.
RECOMMENDED ACTION:
By motion: Approve the attached Memorandum of Understanding with Dani, Laura, and Mariela
Jimenez.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
In 2018, the HRA purchased the property at 1430 66th Street East for future redevelopment and
Melissa Poehlman, Executive Director
11/13/2023
demolished the building on the site that was in disrepair.
At the March 20, 2023 HRA work session, the Developers presented a concept to develop a
bakery/deli on the site.
The HRA discussed whether to hold the property to potentially be assembled with adjacent properties
for future wholesale redevelopment or to consider selling the property for a standalone development.
HRA Commissioners expressed support in concept for the bakery/deli proposal and for continuing
discussions regarding redevelopment of the site.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Equity considerations:
The Developers are Latina women who are existing business owners in Richfield. The MOU may
provide a path toward the Developers acquiring property to expand their operations, open a new small
business, and build generational wealth.
Strategic Plan considerations:
The Strategic Plan calls for a comprehensive look at HRA-owned properties and a plan for marketing
and redevelopment of the sites.
The Strategic Plan also calls for increased diversification of the tax base through commercial
development. In December 2022, the HRA and City Council adopted a Spending Plan to use
unobligated Tax Increment Financing (TIF) Funds to specifically advance this goal.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The Comprehensive Plan guides the property for Community Commercial, which encompasses a wide
variety of retail goods and services that are more intense than neighborhood-scale commercial, but
generally still focus on a local customer base.
D.CRITICAL TIMING ISSUES:
The Developers are working with an architect to develop preliminary plans for the bakery/deli, but are
hesitant to spend money if the HRA is considering offers to sell the property to another developer. While
the MOU does not obligate the HRA to sell the property, it provides assurance that the HRA will not
market or sell the property during the term of the MOU.
E.FINANCIAL IMPACT:
None at this time.
F.LEGAL CONSIDERATION:
The HRA's legal counsel drafted the MOU.
The MOU is not a binding agreement and does not obligate the HRA to sell the property to the
Developers.
ALTERNATIVE RECOMMENDATION(S):
Approve a modified version of the Memorandum of Understanding.
Do not approve the Memorandum of Understanding.
PRINCIPAL PARTIES EXPECTED AT MEETING:
Dani Jimenez, Laura Jimenez, and Mariela Jimenez.
ATTACHMENTS:
Description Type
Memorandum of Understanding Contract/Agreement
Location and Comprehensive Plan Map Backup Material
1
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (“MOU”), dated as of this 20th day of November,
2023 (the “Effective Date”) is entered into by and between Dani Jimenez, Laura Jimenez, and
Mariela Jimenez (collectively the “Developer”) and the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota (the “HRA”), together (the “Parties”).
RECITALS
First: The Parties have been engaged in informal discussions regarding the development of
a certain property located at 1430 66th Street East in Richfield, Minnesota, which is owned by the
HRA and legally described in Exhibit A attached hereto (the “Property”).
Second: On March 20, 2023, at an HRA work session, the Developer presented a concept
to the HRA to develop a bakery/deli on the Property (the “Project”).
Third: The Developer is working with an architect to develop plans for the proposed
Project.
Fourth: The Parties intend to continue discussions regarding the potential and feasibility of
the Project, the sale of the Property to the Developer, and the potential need for financial assistance
from the HRA for development of the Project.
Fifth: While discussions are ongoing, the HRA will not market the Property for sale.
Sixth: The term of this MOU will be six months after the date of execution, with an option
to extend for six additional months with administrative approval from the HRA Executive
Director.
Seventh: By entering into this MOU, the HRA does not make any assurances to the
Developer regarding the feasibility of the Project and does not make assurances to the Developer
regarding the ultimate outcome of the Project.
Eighth: The Parties have executed this MOU to document their understanding with respect
to the proposed Project.
NOW, THEREFORE, the Parties agree as follows:
A.Responsibilities of Developer. The Developer will, at its expense, complete the following:
1.Work with an architect to develop preliminary plans for the Project.
2.Conduct a preliminary financial assessment to present to the HRA including
estimated sources and uses of funds for the Project and the potential dollar amount
of HRA financial assistance requested.
3.Present a preliminary proposal to the HRA for evaluation of the Project within 90
days after the Effective Date of this MOU.
2
4.Maintain consistent communication with the HRA throughout the term of the
MOU.
B.Responsibilities of the HRA. The HRA will be responsible for the following:
1.Maintain open lines of communication with the Developer throughout the term of
this MOU.
2.Refrain from marketing the Property for sale during the term of this MOU.
3.Refrain from negotiating or contracting with another party concerning the
development or sale of the Property during the term of this MOU unless this MOU
is earlier terminated in accordance with its provisions.
4.Provide prompt notice to the Developer if, prior to the expiration of this MOU,
another party expresses an interest to purchase the Property.
D.Transfer or Assignment. The Developer shall not assign or transfer their rights under this
MOU in full or in part without the prior consent of the HRA, which the HRA may grant or
withhold in its sole and absolute discretion.
E.Termination of the MOU.
1.If the Developer fails to fulfill any of its responsibilities under this MOU, the HRA
may, after giving 30 days written notice to the Developer to fulfill such
responsibility, terminate this MOU.
2.Notwithstanding any other provisions of this MOU to the contrary, the term of this
MOU shall expire 180 calendar days after the Effective Date.
F.Notices. Notice or demand or other communication between the parties shall be
sufficiently given if sent by email, regular mail, postage prepaid, return receipt requested
or delivered personally to the following addresses:
As to the HRA:
Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota
6700 Portland Avenue South
Richfield, MN 55423
Attn: Melissa Poehlman, Executive Director
As to the Developer:
Dani M. Jimenez
5098 Dragonette Street
Lakeville, MN 55044
3
G.Not a Binding Agreement. Neither the HRA nor Developer intend this MOU to be a
binding agreement. This MOU does not constitute a Development Agreement, Option
Agreement, or Right of First Refusal. By executing this MOU, the HRA is conveying no
rights to the Developer with respect to the Property. The HRA’s obligations under this
Agreement are limited to those responsibilities specifically set forth in Section B of the
MOU. The HRA shall have no other implied obligations.
(The remainder of this page is intentionally left blank.)
A-1
IN WITNESS WHEREOF, the parties have caused this MOU to be duly executed in their names
as of the date and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
Erin Vrieze Daniels
Its Chair
By
Melissa Poehlman
Its Executive Director
DEVELOPER
By
Dani Jimenez
By
Laura Jimenez
By
Mariela Jimenez
A-1
EXHIBIT A
LEGAL DESCRIPTION
Lots 10 and 11 including adjoining 1/2 of a vacated alley, Block 4, Nokomis Gardens Right
Block 1-5 Girard Parkview.
A-1
RC125-398 911778v.4
16TH AVE S66TH ST E
67TH ST E
68TH ST E12TH AVE S11TH AVE S17TH AVE SBLOOMINGTONAVE14TH AVE S13TH AVE S65TH ST E
66TH ST E
15THAVESRICHFIELDPKWYRICHFIELDPKWY±
2040 Comprehensive Plan Designations
2040 Planned Land Use
Mixed Use
Regional Commercial
Community Commercial
High Density Residential
Medium Density Residential
Low Density Residential
Park
Quasi-Public
1430 – 66th Street East
0 360 720180ft
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #7.
STAFF REPORT NO. 33
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
11/20/2023
Jan Youngquist, Economic Development ManagerREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a Memorandum of Understanding with Lyndale Gardens, LLC.
EXECUTIVE SUMMARY:
The Housing and Redevelopment Authority (HRA) entered into a Contract for Private Development with
Lyndale Gardens, LLC (Developer) in November 2011 to redevelop the site of the former Lyndale Garden
Center. The site is located in what is known as the Lakes at Lyndale area. Since the late 1990s, the
City has identified this area for reinvestment and/or redevelopment, with the intent of creating a
vibrant, thriving city center that will serve as Richfield's downtown.
The former Lyndale Garden Center site is zoned Planned Mixed Use. Approval of that zoning as part of the
Lyndale Gardens Planned Unit Development (PUD) occurred in March 2013. Subsequent redevelopment as
part of the PUD includes the Lakewinds Food Co-op, an amphitheater and quasi-public space, 66
apartments, 8 townhomes, and 30 condominiums.
One vacant parcel of the former Lyndale Garden Center site remains to be redeveloped. The subject property
is located at the southwest corner of Lyndale Avenue South and 64th Street West, just north of Lakewinds
Food Co-op and east of the amphitheater. An active commercial use component for the subject property
is part of the overall development plan. The original PUD approved in 2013 included 9,000 square
feet of retail space and 2,600 square feet of restaurant space for the site. The PUD was amended in
December 2013 to allow up to 7,000 square feet of restaurant space. In 2018, an amendment to the
PUD included an approximately 6,000 square foot commercial building that would coordinate with
the already-constructed adjacent outdoor activity space and amphitheater.
The 2013 Lakes at Lyndale Connectivity Plan identified the subject property as a key gateway to draw people
to the adjacent public amenities and to include a site design that provides visual connections to the
amphitheater and Richfield Lake as well as safe and intuitive pedestrian access to these amenities from
Lyndale Avenue.
The Developer has marketed the subject property for sale for development of active commercial uses, but
current market conditions including high interest rates and expensive construction costs have created
obstacles that have been difficult to overcome in generating interest for development of the desired uses.
In an effort to spur economic development, further the HRA and City’s development goals for the property,
and potentially entice redevelopment of an active commercial use on the site, staff is recommending that the
HRA consider providing financial assistance of up to $500,000 toward capital costs and providing a 50%
Melissa Poehlman, Executive Director
11/15/2023
financial match for up to four Sewer Availability Charge (SAC) fees for a development that meets several of
the HRA's goals for the site.
The attached Memorandum of Understanding (MOU) describes the intent of the Developer and HRA to
continue discussions regarding redevelopment of the subject property. Under the terms of the MOU, the
Developer will actively market the site for sale for an active commercial use and will develop a preliminary
financial assessment if a project that meets the development goals is identified. The HRA will consider a
potential subsidy for development of the subject property if a project that meets several of the development
goals identified in the MOU is proposed. The term of the MOU would be six months and may be extended
another six months with administrative approval from the HRA Executive Director.
RECOMMENDED ACTION:
By motion: Approve the attached Memorandum of Understanding with Lyndale Gardens, LLC.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The subject property is located within the Lakes at Lyndale area of Richfield. For many years, this area
has been considered Richfield's downtown and redevelopment has been a priority.
The Lyndale Garden Center closed its doors in 2006. The site was purchased by The Cornerstone
Group in 2011 and a PUD including 151 apartments, a grocery store, 9,000 square feet of retail space,
2,600 square feet of restaurant, and an outdoor activity space was approved by the City Council in
March 2013.
In December 2013, the City Council approved an amendment to the PUD to allow up to 7,000 square
feet of restaurant space on the subject property.
The Lakewinds Food Co-op opened for business in 2014 on the south half of the site.
The amphitheater and other quasi-public amenities, including a connection to the Richfield Lake path,
were completed in 2017.
In 2018, an amendment to the overall development plan to replace the 151-unit apartment building with
30 condominiums, 8 rental townhomes, and 66 apartments was approved. This amendment also
approved approximately 6,000 square feet of retail space on the subject property that would coordinate
with the already-constructed adjacent outdoor activity space and amphitheater.
The Henley Apartments and Lakeside at Lyndale condominiums were completed in 2020. The final
phase of the overall development includes the commercial space that is planned for the subject property.
Benefactor Brewing submitted a proposal to develop a microbrewery and taproom on the subject
property in 2021.
On June 21, 2021, the HRA approved an MOU with Benefactor Brewing which stated that the HRA
would provide a forgivable loan of up to $500,000 for the development.
The Planning Commission held a public hearing on Benefactor Brewing's development proposal in
March 2022 and recommended approval of the project with conditions. Benefactor Brewing withdrew
the proposal prior to the City Council meeting.
Abdo Markethouse presented a concept to develop a 79-unit apartment building and a small restaurant
on the site at a joint work session of the HRA, City Council, and Planning Commission on August 21,
2023. The concept would have required a major amendment to the PUD to shift from the planned
commercial use on the site to allow multifamily housing. Policy makers did not express support for
amending the PUD.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
If a redevelopment proposal moves forward, the equity impacts of that project will be evaluated.
The Strategic Plan places a priority on community development and identifies a vibrant downtown as a
desired outcome, by proactively marketing downtown and increasing the number of businesses.
The Strategic Plan also calls for increased diversification of the tax base through commercial
development. In December 2022, the HRA and City Council adopted a Spending Plan to use
unobligated Tax Increment Financing (TIF) Funds to specifically advance this goal.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The 2040 Comprehensive Plan (Comp Plan) guides the Lyndale Avenue and 66th Street area as
Mixed Use with the intent of creating a city center that would serve as a downtown. The Comp Plan
states that the city center is expected to include a mix of residential (50%), shopping, recreational and
business uses (50%).
The 2013 Lakes at Lyndale Connectivity Plan (Connectivity Plan) provides guidance for the connections
and improvements through the Lakes at Lyndale area to promote a more livable and thriving community.
The Connectivity Plan recommends that a pedestrian and visual connection between Lyndale Avenue
and Richfield Lake be provided through the subject property as a gateway to the adjacent outdoor
activity and recreational space.
D.CRITICAL TIMING ISSUES:
The Developer is planning on retiring and would like to move forward with disposition of the property.
E.FINANCIAL IMPACT:
None at this time.
F.LEGAL CONSIDERATION:
The HRA's legal counsel drafted the MOU.
The MOU is not a binding agreement and does not obligate the HRA to provide financial assistance for
future redevelop of the property.
ALTERNATIVE RECOMMENDATION(S):
Approve a modified version of the MOU.
Do not approve the MOU.
PRINCIPAL PARTIES EXPECTED AT MEETING:
None.
ATTACHMENTS:
Description Type
Memorandum of Understanding Contract/Agreement
Location and Comprehensive Plan Map Backup Material
2018 PUD Amendment Master Site Plan Backup Material
Lakes at Lyndale Connectivity Plan Excerpt Backup Material
1
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (“MOU”), dated as of this _____ day of November, 2023 (the
“Effective Date”) is entered into by and between Lyndale Gardens, LLC (the “Developer”) and the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota (the “HRA”) (together, the
“Parties.”)
RECITALS
WHEREAS, on November 21, 2011, the Developer entered into a Contract for Private
Development with the HRA to redevelop the site of the former Lyndale Garden Center store;
WHEREAS, the Developer purchased the Lyndale Garden Center property on which the
Lakewinds Food Cooperative, 30 condominiums, 8 townhomes, 66 apartments and an amphitheater were
subsequently constructed as part of a planned unit development;
WHEREAS, the Parties have been engaged in informal discussions regarding the development of
the remaining vacant Lyndale Garden Center parcel owned by the Developer located at the southwest corner
of 64th Street West and Lyndale Avenue South, and legally described in Exhibit A (the “Commercial
Parcel”);
WHEREAS, the planned unit development requires approximately 6,000 square feet of retail space
that will coordinate with the already-constructed outdoor activity areas and retail space on the Commercial
Parcel;
WHEREAS, the 2013 Lakes at Lyndale Connectivity Plan identified the Commercial Parcel as a
key gateway to draw people to the adjacent public amenities and should include a site design that provides
visual and pedestrian connections to the amphitheater and Richfield Lake from Lyndale Avenue;
WHEREAS, the Parties intend to continue discussions regarding the feasibility of redeveloping the
Commercial Parcel in accordance with the planned unit development;
WHEREAS, the Developer has marketed the Commercial Parcel for active commercial uses, but
market conditions and construction costs have created obstacles that have been difficult to overcome;
WHEREAS, the HRA will consider providing financial assistance of up to $500,000 toward capital
costs and providing a 50% financial match for up to four (4) Sewer Availability Charge (SAC) fees to help
facilitate a commercial development on the site that meets several of the HRA’s goals, as described in
Exhibit B;
WHEREAS, the term of this MOU will be six months after the date of execution, with an option to
extend for six additional months with administrative approval from the HRA Executive Director;
WHEREAS, entering into this MOU, the HRA does not make any assurances to the Developer
regarding the feasibility of a redevelopment project and does not make assurances to the Developer
regarding the ultimate outcome of a redevelopment project; and
WHEREAS, the Parties have executed this MOU to document their understanding with respect to
redevelopment of the Commercial Parcel;
NOW, THEREFORE, the Parties agree as follows:
2
A.Responsibilities of Developer. The Developer will, at its expense, complete the following:
1.Actively market the property for sale to developers who may be interested in developing an active
commercial use on the Commercial Parcel that serves as a destination where people can eat, shop, or gather.
2.If a project meeting the HRA’s goals is identified, develop a preliminary financial assessment to
present to the HRA including estimated sources and uses of funds for the proposed project and the
potential dollar amount of HRA financial assistance requested.
3.Maintain consistent communication with the HRA throughout the term of the MOU.
B.Responsibilities of the HRA. The HRA will be responsible for the following:
1.Maintain open lines of communication with the Developer throughout the term of this MOU.
2.Consider potential subsidy for the development of the Commercial Parcel.
D.Transfer or Assignment. The Developer shall not assign or transfer their rights under this MOU in
full or in part without the prior consent of the HRA, which the HRA may grant or withhold in its sole and
absolute discretion.
E.Termination of the MOU.
1.If the Developer fails to fulfill any of its responsibilities under this MOU, the HRA may, after
giving 30 days written notice to the Developer to fulfill such responsibility, terminate this MOU.
2.Notwithstanding any other provisions of this MOU to the contrary, the term of this MOU shall
expire 180 calendar days after the Effective Date.
F.Notices. Notice or demand or other communication between the parties shall be sufficiently given
if sent by email, regular mail, postage prepaid, return receipt requested or delivered personally to the
following addresses:
As to the HRA: Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota
6700 Portland Avenue South
Richfield, MN 55423
Attn: Melissa Poehlman, Executive Director
As to the Developer: Lyndale Gardens, LLC
5324 Oliver Avenue South
Minneapolis, MN 55419
Attn: Colleen Carey
G.Not a Binding Agreement. Neither the HRA nor Developer intend this MOU to be a binding
agreement. This MOU does not constitute a development agreement. The HRA’s obligations under this
Agreement are limited to those responsibilities specifically set forth in Section B of the M OU. The HRA
shall have no other implied obligations.
(The remainder of this page is intentionally left blank.)
3
IN WITNESS WHEREOF, the parties have caused this Memorandum of Understanding to be duly executed
in their names as of the date and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
Erin Vrieze Daniels
Its Chair
By
Melissa Poehlman
Its Executive Director
LYNDALE GARDENS, LLC
By
Its
A-1
EXHIBIT A
LEGAL DESCRIPTION
Lot 3, Block 1, Lyndale Gardens 2nd Addition.
A-2
EXHIBIT B
HRA FINANCIAL CONSIDERATIONS AND GOALS FOR REDEVELOPMENT OF THE
LYNDALE GARDENS COMMERCIAL PARCEL
The Richfield HRA will consider contributing up to $500,000 toward capital costs and providing
a 50% financial match for up to four (4) Sewer Availability Charge (SAC) fees to help facilitate
a commercial development on the site that serves as a destination where people can eat, shop, or
gather. A project receiving financial assistance should help achieve several of the following
goals for redevelopment of the site:
Establishes uses (or a mix of uses) such as a restaurant, brewpub, coffee shop, retail store
or experiential/activity-based business.
Recognizes and elevates the site’s importance as a gateway to Richfield Lake, whose
natural and recreational amenities serve as a centerpiece of the Lakes at Lyndale
downtown area.
Includes a well-designed building and an inviting patio space that overlooks Richfield
Lake and the adjacent amphitheater.
Provides visual and pedestrian connections from Lyndale Avenue to the amphitheater and
the existing paths at Richfield Lake Park.
Embraces Richfield’s certification as a Silver-Level Bicycle Friendly Community by the
League of American Bicyclists and the site’s proximity to adjacent bicycle routes by
providing ample bicycle parking for employees and guests.
Activates the west and southwest portions of the property that are adjacent to the
amphitheater and existing pergola-covered seating area by providing outdoor gathering
spaces and including a pedestrian connection along the “dogleg” portion of the property
to the Lakewinds Co-op site.
Complements and builds off the existing public art in the area. This could be achieved
through art installations such as murals, sculpture, an artistic gateway feature, or other
forms of public art. The City of Richfield will consider adding any public art on the site
to the City’s Public Art Walking Tour.
RC125-316
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2040 Comprehensive Plan Designations
I:\GIS\Community Development\Case Maps\2023\Lyndale Gardens Site.mxd
2040 Planned Land Use
Mixed Use
Community Commercial
High Density Residential
Medium Density Residential
Low Density Residential
Park
Right-of-Way (ROW)
Lyndale Gardens Site
0 325 650162.5 ft
Lakewinds Food Co-op
The HenleyApartments
Lakeside at LyndaleCondominiums
Amphitheaterat Lyndale Gardens
Subject Property
2018 Lyndale Gardens PUD Amendment Master Site PlanSubject Property
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