061724 Resolution 1483HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 1483
RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF PRELIMINARY
REDEVELOPMENT AGREEMENT WITH JO COMPANIES, LLC
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) owns the real property located at 6501 Penn Avenue South in the
City of Richfield, Minnesota (the “City”); and
WHEREAS, the Authority intends to purchase the real property located at 6525 Penn
Avenue South in the City, which is currently forfeited property, and is working with the State of
Minnesota to obtain a deed to such property; and
WHEREAS, JO Companies, LLC, a Minnesota limited liability company, or one of its
wholly owned affiliates (collectively, the “Redeveloper”), proposes to purchase the real property
located at 6501 Penn Avenue South from the Authority and the real property located at 6525
Penn Avenue South once the Authority obtains such property (collectively, the “Redevelopment
Property”) and construct thereon a multifamily housing project consisting of approximately 40
affordable housing units and approximately 34 underground and 14 surface parking spaces (the
“Project”); and
WHEREAS, the Redeveloper proposes that all of the units within the Project will be
affordable, with a portion of the units occupied by residents whose incomes do not exceed thirty
percent (30%) of the area median gross income, a portion occupied by residents whose incomes
do not exceed fifty percent (50%) of the area median gross income, and the remainder of the
units occupied by residents whose incomes do not exceed sixty percent (60%) of the area
median gross income; and
WHEREAS, the Redeveloper and the Authority have been engaged in informal
discussion regarding the Project, including consideration of the Authority selling the
Redevelopment Property to the Redeveloper at a reduced cost, no more than $500,000, and/or
providing financial assistance for the Project using pooled tax increment from the Affordable
Housing Trust Fund in a total amount of up to $485,000, or a combination thereof; and
WHEREAS, the Board of Commissioners of the Authority (the “Board”) has been
presented with a Preliminary Redevelopment Agreement (the “Preliminary Redevelopment
Agreement”) between the Authority and the Redeveloper, which sets forth the Redeveloper’s
intentions and the conditions under which the Redeveloper will undertake the Project; and
WHEREAS, the Board has reviewed the Preliminary Redevelopment Agreement and finds
that the execution thereof by the Authority and performance of the Authority’s obligations
thereunder are in the best interest of the City and its residents; 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 Preliminary Redevelopment Agreement presented to the Board and on file with
the staff of the Authority is hereby in all respects approved, subject to modifications that do not
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alter the substance of the transaction and that are approved by the Chair and Executive Director;
provided that execution of such document by such officials shall be conclusive evidence of
approval.
2.The Chair and Executive Director are hereby authorized to execute the Preliminary
Redevelopment Agreement on behalf of the Authority and to carry out the Authority’s obligations
thereunder.
3.The approvals set forth in this resolution are contingent upon the Authority’s
acquisition of the portion of the Redevelopment Property located at 6525 Penn Avenue South.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 17th day of June, 2024.
Gordon Hanson, Acting Chair
Sean Hayford Oleary, Secretary
RC125-399 (JAE)
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