022024 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
F E B R U ARY 20, 2024
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 377 8053 and password: 1234.
Approval of the Minutes
A pproval of the minutes of the Regular Housing and Redevelopment A uthority meeting of D ecember 18, 2023; and the
S pecial Housing and Redevelopment A uthority Work S ession of J anuary 4, 2024.
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 authorizing the E xecutive D irector to make modifications to the C ontract for
P rivate D evelopment with Nasadir A hmed and Mohamed Isse for the development of 6326 14th Avenue
S outh through the Richfield Rediscovered P rogram.
S taff Report No. 1
3.C onsideration of items, if any, removed from C onsent C alendar
O T H E R B U S IN E S S
4.D iscuss a request to amend the Memorandum of Understanding between the Housing and Redevelopment
A uthority and D ani, L aura, and Mariela J imenez related to the Housing and Redevelopment A uthority property at
1430 - 66th S treet E ast for construction of a bakery and deli.
S taff Report No. 2
H R A D IS C U S S IO N ITE MS
5.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
6.E xecutive D irector's Report
C LAIMS
7.C laims
8.A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9739.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 18, 2023
CALL TO ORDER
Acting Chair Hanson called the meeting to order at 7:00 p.m. in the Council Chambers.
HRA Members
Present:
Gordon Hanson, Acting Chair, Sean Hayford Oleary; and John
Young
HRA Members
Absent
Erin Vrieze Daniels, Chair; and Mary Supple
Staff Present: Julie Urban, Assistant Community Development Director; Jan
Youngquist, Economic Development Manager; and Dustin Leslie,
City Clerk.
OPEN FORUM
Acting Chair Hanson gave instructions on how to participate in the open forum. No one
spoke.
APPROVAL OF THE MINUTES
M/Hayford Oleary, S/Young to approve the 1) minutes of the regular Housing and
Redevelopment Authority meeting of November 20, 2023.
Motion carried: 3-0
ITEM #1
APPROVAL OF THE AGENDA
M/Hayford Oleary, S/Young to approve the agenda.
Motion carried: 3-0
HRA Meeting Minutes -2- December 18, 2023
ITEM #2
CONSIDERATION OF THE ADOPTION OF A RESOLUTION APPROVING A
FIRST AMENDMENT TO THE AMENDED AND RESTATED
CONTRACT FOR PRIVATE DEVELOPMENT WITH 101 E 66TH ST LLC
RELATED TO THE CONSTRUCTION OF AN 80-UNIT MIXED USE
PROJECT AT 101 - 66TH STREET EAST.
Economic Development Manager Youngquist gave the report.
Commissioner Young asked about the “look back” provision and asked if its purpose was
to adjust the TIF Note downward if needed. Youngquist stated that was correct. Commissioner
Young also asked if they were going from 16 to 25 years due to rising costs. Youngquist
confirmed that was correct.
M/Hayford Oleary, S/Young to approve a resolution approving a First Amendment to the
Amended and Restated Contract for Private Development with 101 E 66th St. LLC.
Motion carried: 3-0
ITEM #3
PUBLIC HEARING REGARDING THE SALE OF 6613-25 PORTLAND AVENUE
SOUTH TO BEACON INTERFAITH HOUSING COLLABORATIVE,
DOING BUSINESS AS ASTER COMMONS LIMITED PARTNERSHIP AND ASTER
COMMONS GP LLC.
Assistant Community Development Director Urban gave the report.
Acting Chair Hanson opened the public hearing.
Kathleen Murphy – 6601 5th Avenue South #7: resident spoke about safety
concerns, especially at the nearby bus stop, if this project were to move forward.
M/Hayford Oleary, S/Young to close the public hearing.
Motion carried: 3-0.
Commissioner Hayford Oleary asked who would maintain the property during
development. Assistant Director Urban stated the HRA would.
M/Hayford Oleary, S/Young to approve the resolution authorizing the sale of
6613-25 Portland Avenue South to Beacon Interfaith Housing Collaboration doing
business as Aster Commons Limited Partnership and Aster Commons GP LLC for the
development of 38 units of affordable, supportive housing.
Motion carried: 3-0.
HRA Meeting Minutes -3- December 18, 2023
ITEM #4
HRA DISCUSSION ITEMS
None.
ITEM #5
EXECUTIVE DIRECTOR REPORT
Assistant Director Urban spoke about Aster Commons receiving a grant from the
Metropolitan Council for $1,000,000. She also stated that Woodlake Terrace received a grant
from Minnesota Housing for $711,000.
ITEM #6
CLAIMS
M/Hayford Oleary, S/Young that the following claims be approved:
U.S. BANK 12/18/2023
HRA Checks: #36975-36988 $35,747.78
Section 8 Checks: #135354-135427 $191,362.36
TOTAL $227,110.14
Motion carried: 3-0
ITEM #7
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:19 p.m.
Date Approved: February 20, 2024
Gordon Hanson
Acting HRA Chair
Dustin Leslie Julie Urban
City Clerk Assistant Community Development
Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special HRA Work Session
January 4, 2024
The meeting was called to order by Chair Erin Vrieze Daniels at 5:15 p.m. held in the
Babcock Meeting Room.
HRA Members Erin Vrieze Daniels, Chair; Mary Supple; and Sean Hayford Oleary
Present:
Item #1
MEETINGS WITH APPLICANTS FOR UPCOMING EXPRIING HRA AND EDA SEAT
The HRA members met with and interviewed the following applicants:
David Sperling
Gordon Hanson
Chris Walsh
Walter Burk
Members of the HRA discussed the next steps in recruitment for the expiring seat.
The work session was adjourned by unanimous consent at 7:04 p.m.
Date Approved: February 20, 2024
Erin Vrieze Daniels
HRA Chair
Kelly Wynn Melissa Poehlman
Administrative Assistant Executive Director
CALL TO ORDER
ADJOURNMENT
AGENDA SECTION: Consent Calendar
AGENDA ITEM # 2.A.
STAFF REPORT NO. 1
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
2/20/2024
Celeste McDermott, Housing SpecialistREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution authorizing the Executive Director to make modifications to the Contract
for Private Development with Nasadir Ahmed and Mohamed Isse for the development of 6326 14th
Avenue South through the Richfield Rediscovered Program.
EXECUTIVE SUMMARY:
The Housing and Redevelopment Authority (HRA) approved a Contract for Private Development (Contract)
with Nasadir Ahmed and Mohamed Isse (Buyers) for the development of a duplex at 6326 14th Avenue South
on October 16, 2023. Due to rising construction costs, the Buyers decided to redesign their duplex proposal
in order to reduce the overall size. The new design meets all Zoning Code requirements, design guidelines of
the Richfield Rediscovered Program (Program), and alleviates concerns over the long driveway shown in the
original plans. Since the redesign has pushed the construction timeline back, the required sale and
completion dates may need to be adjusted accordingly in the Contract. The proposed resolution allows the
HRA Executive Director to authorize changes to the Contract.
RECOMMENDED ACTION:
By motion: Approve a resolution authorizing the Executive Director to make modifications to the
Contract for Private Development with Nasadir Ahmed and Mohamed Isse for the development of 6326
14th Avenue South, including extending the closing date, extending the commencement date for
construction, and attaching revised building plans to the Contract for Private Development.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The HRA approved the Contract with Nasadir Ahmed and Mohamed Isse for the development of a
duplex at 6326 14th Avenue South on October 16, 2023.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The construction of a duplex supports equity goals by expanding housing choices to meet the needs of a
diverse population.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The proposed project meets the policy objectives of the Program:
Removes substandard, functionally obsolete housing and eliminates its blighting influence.
Provides larger, higher valued housing.
Two-unit design (duplex) alleviates shortage of housing choice for families.
Includes additional accessibility features that make the first floor accessible to wheelchair users.
Includes sustainability features that meet the Green Credit standards and may include solar
Melissa Poehlman, Executive Director
panels.
All efforts will be made to preserve any existing high priority trees on site when possible.
The project also meets the housing design and site development criteria, as defined in the Program
Guidelines:
The height and mass of the house is visually minimized through the varied roof lines and sidings.
The plan provides a balanced and pleasing distribution of wall, door and window areas from all
views.
In April 2019, the HRA adopted the revised Inclusionary Housing Policy (IHP), which states: "With
regards to scattered-site single family housing development, at least 20 percent of the units newly
constructed or rehabilitated and converted to long-term affordability in any three-year period must meet
the proscribed affordability requirements."
Assuming approval of this project with completion estimated in 2024, the estimated percentage
of affordable scattered-site single family housing development will be 33 percent for the 2022-
2024 time period.
One of the desired outcomes of the City's Strategic Plan, 2023-2026, is to maintain Richfield as
an affordable place to live as a desired outcome. While the duplex itself is market-rate, the
percentage of HRA-supported housing exceeds the affordability requirements of the IHP.
D.CRITICAL TIMING ISSUES:
The original Contract required the Buyer to close on the property by March 1, 2024, and to complete
construction by November 1, 2024. The proposed Resolution authorizes the Executive Director to
amend the required completion dates.
E.FINANCIAL IMPACT:
The HRA will be paid $81,500 at the time of closing.
F.LEGAL CONSIDERATION:
The HRA Attorney prepared the original Contract and the Resolution
The only modifications proposed are: the attached building plans and adjusting the sale and completion
dates.
All other Contract terms remain the same
ALTERNATIVE RECOMMENDATION(S):
Decide not to approve the Resolution
PRINCIPAL PARTIES EXPECTED AT MEETING:
None
ATTACHMENTS:
Description Type
Resolution Resolution Letter
Updated plans Backup Material
RC125-1-932790.v1
HRA RESOLUTION NO.
RESOLUTION APPROVING FIRST AMENDMENT TO CONTRACT FOR PRIVATE
DEVELOPMENT WITH NASADIR AHMED & MOHAMED ISSE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in
furtherance of the Richfield Rediscovered Program adopted by the HRA, said real
property being described as:
Address: 6326 14th Avenue South
Legal: Lot 5, Block 2, “Rich Highlands”, Hennepin County, Minnesota.
WHEREAS, the HRA and Nasadir Ahmed and Mohamed Isse (collectively, the
Buyer), entered into a Contract for Private Development, dated October 16, 2023; and
WHEREAS, the HRA and the Buyer propose to amend certain terms of the
Contract for Private Development, including but not limited to (i) extending the closing
date, (ii) extending the commencement date for construction, and (ii) attaching revised
building plans to the Contract for Private Development; and
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota:
1.The Executive Director is hereby authorized to make the modifications to the
Contract for Private Development noted above that the Executive Director deems
necessary, desirable, or appropriate, the execution thereof to constitute conclusive
evidence of their approval of any and all modifications therein.
2.The Executive Director is authorized to execute a first amendment to the Contract
for Private Development if they deem an amendment to be necessary.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of February, 2024.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
A1
02/01/2024Hung Ly
SHEET NO.
DRAWN BY:PROJECT NO.: DATE:
SHEET TITLE
REVISIONS
--/--/----ArchitectsHL51 11th Ave. SWaite Park, MN 56387320-237-7411: hlarchitects2000@gmail.comNew Duplex Housefor Mohamed Isse6326 14th Ave. SRichfield, MN 55423REG. 50476 Date: 02/01/2024
ARCHITECT CERTIFICATION:
I Hereby Certify That This Plan Was
Prepared By Me Or Under My
Direct Supervision and I am A Duly
Licensed Architect Under The Laws
Of The State of Minnesota
Signature:
Printed Name: Hung T. Ly
SITE LOCATION
DRAFTING SYMBOLS, SITE
PLAN AND SITE INFORMATION
AERIAL MAP
#4%*+6'%674#.
ARCHITECTURAL
A6
A5
PROJECT INDEX, TITLE SHEET, SITE PLAN, ROOF PLANA1
FOOTING AND FOUNDATION PLAN, AND NOTESA2
FIRST FLOOR PLAN AND NOTESA3
ATTIC FLOOR PLANA4
E1 BASEMENT ELECTRICAL PLAN
New Duplex House
for Mohamed Isse
6326 14th Ave. S
Richfield, MN 55423E2FIRST FLOOR ELECTRICAL PLAN
E3 ATTIC ELECTRICAL PLAN
A7
A8 DETAILS
BUILDING AND WALLS SECTIONS
EXTERIOR ELEVATION
EXTERIOR ELEVATION
A5
EXTERIOR ELEVATIONS
02/01/2024Hung Ly
SHEET NO.
DRAWN BY:PROJECT NO.: DATE:
SHEET TITLE
REVISIONS
--/--/----ArchitectsHL51 11th Ave. SWaite Park, MN 56387320-237-7411: hlarchitects2000@gmail.comNew Duplex Housefor Mohamed Isse6326 14th Ave. SRichfield, MN 55423REG. 50476 Date: 02/01/2024
ARCHITECT CERTIFICATION:
I Hereby Certify That This Plan Was
Prepared By Me Or Under My
Direct Supervision and I am A Duly
Licensed Architect Under The Laws
Of The State of Minnesota
Signature:
Printed Name: Hung T. Ly
A6
EXTERIOR ELEVATIONS
02/01/2024Hung Ly
SHEET NO.
DRAWN BY:PROJECT NO.: DATE:
SHEET TITLE
REVISIONS
--/--/----ArchitectsHL51 11th Ave. SWaite Park, MN 56387320-237-7411: hlarchitects2000@gmail.comNew Duplex Housefor Mohamed Isse6326 14th Ave. SRichfield, MN 55423REG. 50476 Date: 02/01/2024
ARCHITECT CERTIFICATION:
I Hereby Certify That This Plan Was
Prepared By Me Or Under My
Direct Supervision and I am A Duly
Licensed Architect Under The Laws
Of The State of Minnesota
Signature:
Printed Name: Hung T. Ly
seat
E1
BASEMENT ELECTRICAL PLAN
02/01/2024Hung Ly
SHEET NO.
DRAWN BY:PROJECT NO.: DATE:
SHEET TITLE
REVISIONS
--/--/----ArchitectsHL51 11th Ave. SWaite Park, MN 56387320-237-7411: hlarchitects2000@gmail.comNew Duplex Housefor Mohamed Isse6326 14th Ave. SRichfield, MN 55423REG. 50476 Date: 02/01/2024
ARCHITECT CERTIFICATION:
I Hereby Certify That This Plan Was
Prepared By Me Or Under My
Direct Supervision and I am A Duly
Licensed Architect Under The Laws
Of The State of Minnesota
Signature:
Printed Name: Hung T. Ly
E2
FIRST FLOOR ELECTRICAL
PLAN
02/01/2024Hung Ly
SHEET NO.
DRAWN BY:PROJECT NO.: DATE:
SHEET TITLE
REVISIONS
--/--/----ArchitectsHL51 11th Ave. SWaite Park, MN 56387320-237-7411: hlarchitects2000@gmail.comNew Duplex Housefor Mohamed Isse6326 14th Ave. SRichfield, MN 55423REG. 50476 Date: 02/01/2024
ARCHITECT CERTIFICATION:
I Hereby Certify That This Plan Was
Prepared By Me Or Under My
Direct Supervision and I am A Duly
Licensed Architect Under The Laws
Of The State of Minnesota
Signature:
Printed Name: Hung T. Ly
E3
ATTIC ELECTRICAL PLAN
02/01/2024Hung Ly
SHEET NO.
DRAWN BY:PROJECT NO.: DATE:
SHEET TITLE
REVISIONS
--/--/----ArchitectsHL51 11th Ave. SWaite Park, MN 56387320-237-7411: hlarchitects2000@gmail.comNew Duplex Housefor Mohamed Isse6326 14th Ave. SRichfield, MN 55423REG. 50476 Date: 02/01/2024
ARCHITECT CERTIFICATION:
I Hereby Certify That This Plan Was
Prepared By Me Or Under My
Direct Supervision and I am A Duly
Licensed Architect Under The Laws
Of The State of Minnesota
Signature:
Printed Name: Hung T. Ly
AGENDA SECTION: OTHER BUSINESS
AGENDA ITEM # 4.
STAFF REPORT NO. 2
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
2/20/2024
Jan Youngquist, Economic Development ManagerREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Discuss a request to amend the Memorandum of Understanding between the Housing and
Redevelopment Authority and Dani, Laura, and Mariela Jimenez related to the Housing and
Redevelopment Authority property at 1430 - 66th Street East for construction of a bakery and deli.
EXECUTIVE SUMMARY:
On November 20, 2023, the Housing and Redevelopment Authority (HRA) approved a Memorandum of
Understanding (MOU) with Dani, Laura, and Mariela Jimenez, (Developers). The MOU documents the intent
of the HRA and the Developers to explore the potential sale of the HRA property located at 1430 - 66th Street
East and the consideration of financial assistance for development of a bakery and deli that would provide
fresh baked goods to the two La Vaquita markets in Richfield that are partially owned by Dani and Mariela
Jimenez.
Under the provisions of the MOU, the Developers obligation is to work with an architect to develop preliminary
plans for the project, conduct a preliminary financial assessment, and present a preliminary proposal to the
HRA by February 20, 2024. The HRA’s responsibilities include refraining from marketing, negotiating, or
contracting with another party for the sale or development of the property during the term of the MOU, which
expires on May 20, 2024. The MOU does not obligate the HRA to sell the property to the Developers.
On December 19, 2023, the United States Department of Labor and Industry filed a lawsuit against the
ownership groups of the two La Vaquita markets alleging that the parties violated federal wage regulations as
part of the Fair Labor Standards Act.
Staff notified the Developers that while the lawsuit was pending, staff could not recommend that the HRA
consider sale of the property or financial assistance for the project because some of the parties named in the
MOU are also named in the lawsuit, and the bakery intends to provide goods to be sold in the markets that are
associated with the lawsuit. Staff recommended that the Developers not expend additional funds on the project
but indicated that the HRA would honor the existing terms of the MOU, regardless of what the Developers
decided to do.
The Developers would like to move forward with the project and have requested that the HRA consider: 1)
amending the MOU to remove Dani and Mariela Jimenez from the agreement, which would leave Laura Peña
Jimenez as the sole developer; and 2) extending the milestone dates in the MOU by three months to provide
additional time to comply with the obligations.
Given the pending lawsuit and uncertainty surrounding its outcome, staff has concerns about the HRA
continuing to consider sale of the property and financial assistance for development of a bakery that would
Melissa Poehlman, Executive Director
serve businesses involved in allegations of federal wage violations related to its employees.
Considerations to discuss:
Would the HRA consider amending the MOU as requested by the Developers?
Would the HRA consider holding the property until the lawsuit is resolved?
Would the HRA like to terminate the MOU and market the site for redevelopment?
RECOMMENDED ACTION:
None, as this is a discussion item.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
In 2018, the HRA purchased the property at 1430 - 66th Street East for future redevelopment and
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.
At its November 20, 2023 meeting, the HRA approved an MOU with the Developers. Through the
MOU, the Developers are 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 agreed to not market, negotiate or contract with another party for development or
sale of the property through the term of the MOU, which expires on May 20, 2024.
On December 19, 2023, the United States Department of Labor and Industry filed a lawsuit against
San Miguel Enterprises, LLC d/b/a La Vaquita-Short Stop; Jimenez Genao, LLC d/b/a La Vaquita-
LV2; and Mariela Jimenez, alleging that the parties violated federal wage regulations as part of the Fair
Labor Standards Act. The lawsuit is pending.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The pending lawsuit alleges violations of federal wage regulations in relation to low wage workers at La
Vaquita markets, many of whom are people of color. Until the outcome of the lawsuit is determined, the
HRA’s consideration of selling the property and providing financial assistance for the project is
inconsistent with the City’s equity goals.
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. Projects receiving
financial assistance through the Spending Plan must begin construction before December 31, 2025.
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.
The Amended and Restated Business Subsidy Policy (Policy) that was adopted by the HRA in October
2023 sets forth the policies and criteria for evaluating business subsidies. The Policy requires a
business subsidy recipient to comply with labor laws.
D.CRITICAL TIMING ISSUES:
The MOU requires the Developers to submit preliminary plans to the HRA by February 20, 2024.
Discussions between staff and the Developers about the implications of the pending lawsuit have
resulted in a pause on development of the plans.
If the HRA chooses to move forward with an amendment to the MOU with the Developers request for a
three-month extension, preliminary plans would be due May 20, 2024 and the MOU would expire on
August 20, 2024.
If the HRA chooses not to move forward with an amendment to the MOU, the HRA may terminate the
MOU after sending a 30 day written notice or let the MOU expire on May 20, 2024.
E.FINANCIAL IMPACT:
None at this time.
F.L E GAL C ON S ID E R AT ION:
T he MOU is not a binding agreement and does not obligate the HRA to sell the property
to the Developers.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
N/A
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Dani J imenez, Laura Peña J imenez, and Mariela J imenez.
AT TAC H ME N T S:
D escription Type
M OU A mendment Request B ackup Material
E xecuted M OU B ackup Material
US D epartment of L abor C omplaint B ackup Material
L ocation and C omprehensive P lan Map B ackup Material
1
UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
JULIE A. SU, Acting Secretary of Labor, ) United States Department of Labor, ) ) Plaintiff, ) ) v. ) Civil Action No.: )
SAN MIGUEL ENTERPRISES, LLC )
d/b/a LA VAQUITA-SHORT STOP, )
JIMENEZ GENAO, LLC d/b/a )
LA VAQUITA-LV2, and )
MARIELA JIMENEZ, ) ) Defendants. )
COMPLAINT
Pursuant to Section 217 of the Fair Labor Standards Act, of 1938, as
amended (29 U.S.C. § 201 et seq.) (“FLSA”), Plaintiff, Julie A. Su, Acting Secretary
of Labor, United States Department of Labor (“Acting Secretary”), brings this action
to enjoin and restrain the Defendants San Miguel Enterprises, LLC d/b/a La
Vaquita-Short Stop (“San Miguel”), Jimenez Genao, LLC d/b/a La Vaquita-
LV2 (“Jimenez”) and Mariela Jimenez (collectively, “Defendants”) from violating
Sections 207, 211, 215(a)(2) and/or 215(a)(5) of the FLSA and to recover unpaid
compensation, plus an equal amount in liquidated damages pursuant to Section
216(c) of the Act (29 U.S.C. § 216(c)) for Defendants’ employees.
The Acting Secretary, through the Wage and Hour Division, conducted an
investigation of Defendants for compliance with the FLSA. The Acting Secretary’s
investigation reviewed Defendants’ employment and pay practices at San Miguel
0:23-cv-3839
CASE 0:23-cv-03839 Doc. 1 Filed 12/19/23 Page 1 of 9
2
from July 8, 2020 through March 26, 2023 and Defendants’ employment and pay
practices at Jimenez from November 9, 2020 through March 26, 2023 (collectively,
the “Investigation Periods”). Unless stated otherwise, all allegations and conditions
described herein pertain to the Investigation Periods.1
Jurisdiction and Venue
1.This Court has jurisdiction of this case. 29 U.S.C. §§ 216(c), 217 and 28
U.S.C. § 1345.
2.This Court is the proper venue because all or a substantial part of the
events or omissions giving rise to these allegations occurred in this judicial district.
Defendants
3.Defendant San Miguel is a Minnesota limited liability company within
this Court’s jurisdiction with an office at 7034 Cedar Avenue S, Richfield,
Minnesota 55423, where it conducts business.
4.Defendant Jimenez is a Minnesota limited liability company within
this Court’s jurisdiction with an office located at 14239 Atwood Circle, Rosemount,
Minnesota 55068 and place of business located at 607 East 77th Street, Richfield,
Minnesota 55423.
1 Defendants did not agree to comply with the FLSA at the conclusion of the investigation. If Defendants continued to violate the FLSA after the Investigation Periods, then the allegations and conditions of pay and employment disclosed are incorporated herein by reference and Defendants may owe additional back wages and liquidated damages to employees.
CASE 0:23-cv-03839 Doc. 1 Filed 12/19/23 Page 2 of 9
3
5.Defendants San Miguel and Jimenez operate grocery stores that sell
general and specialty Mexican food products, prepared Mexican foods, and other
grocery items.
6.Defendant Mariela Jimenez has actively managed and supervised both
San Miguel and Jimenez’s operations and its employees during the Investigation
Periods. Among other things, Mariela Jimenez has hired and fired employees,
determined pay policies and practices for San Miguel and Jimenez, and scheduled
employees to work at one or both establishments.
7.Mariela Jimenez has acted directly or indirectly San Miguel and
Jimenez’s interests with respect to their employees and is therefore an “employer”
under the FLSA. 29 U.S.C. § 203(d).
8.During the Investigation Period, Defendants engaged in business
within Hennepin County, within this Court’s jurisdiction.
The FLSA Applies to Defendants
9.San Miguel and Jimenez are an “enterprise” under the FLSA due to
their related activities performed through unified operation or common control and
for a common business purpose. 29 U.S.C. § 203(r).
10.Specifically, San Miguel and Jimenez are owned by the same co-
owners; use the same logos and signage; sell the same specialty food products; and
share employees.
11.San Miguel and Jimenez are an “enterprise engaged in commerce”
under the FLSA, because they had (i) two or more employees who are engaged in or
CASE 0:23-cv-03839 Doc. 1 Filed 12/19/23 Page 3 of 9
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produced goods for commerce; and (ii) an annual gross volume of sales or business
done greater than $500,000 during the Investigation Periods. 29 U.S.C. §
203(s)(1)(A).
FLSA Violations
12.Defendants repeatedly violated Sections 207 and 215(a)(2) of the FLSA
when they failed to pay their employees one-and-one-half times their regular rates
for hours worked in excess of 40 in a workweek. 29 U.S.C. §§ 207(a)(1), 215(a)(2).
Specifically:
a.Defendants utilized an artificial regular rate pay scheme by: (i)
setting an artificially low hourly rate of pay, (ii) paying overtime
hours at one and one-half times the artificially low hourly rate of
pay to make it appear they were paying the overtime premium for
hours worked over 40 in a workweek, and (iii) mislabeling wages as
purported discretionary “bonuses,” which should have been
included in the employees’ regular rate of pay. Thus, when the
purported discretionary “bonuses” are included in employees’ total
compensation, their regular rates of pay are consistently higher
than their purported hourly rates of pay.
b.Defendants failed to pay the overtime premium in instances where
employees worked at both establishments of San Miguel and
Jimenez and, as a result, worked a cumulative total of more than 40
hours in a workweek.
CASE 0:23-cv-03839 Doc. 1 Filed 12/19/23 Page 4 of 9
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c.Defendants misclassified certain overtime-eligible employees as
exempt executive or administrative employees under Section
13(a)(1) of the FLSA and failed to pay those employees overtime
compensation when they worked more than forty hours in a
workweek. Specifically, pay records substantiate a violation of
Section 207 for San Miguel employee Felix Morales between July
18, 2022, through November 6, 2022. During this time, Morales was
misclassified as an exempt employee and paid a biweekly salary of
$1,040 for 120 hours of work. Because San Miguel did not pay
Morales a weekly salary of at least $684, as required under 29
C.F.R. §541.100, it misclassified him as an exempt employee under
Section 213. 29 U.S.C. § 213(a)(1); 29 C.F.R. § 541.100.
13.Defendants repeatedly violated Sections 211 and 215(a)(5) of the FLSA
when they failed to keep complete and accurate records. 29 U.S.C. §§ 211, 215(a)(5),
29 C.F.R. Part 516. Specifically, Defendants failed to make, keep, and preserve
accurate time and payroll records of:
a.the hours worked each workday and total hours worked each
workweek by each employee;
b.regular hourly rate of pay for any workweek in which overtime
compensation is due;
c.total daily or weekly straight-time earnings due for hours worked
during the workday or workweek;
CASE 0:23-cv-03839 Doc. 1 Filed 12/19/23 Page 5 of 9
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d.and total premium pay for overtime hours.
14.Moreover, Defendants repeatedly and willfully violated Sections 207
and 211 of the FLSA, because Defendants knew or showed reckless disregard for
whether the FLSA prohibited their conduct.
15.Specifically, Defendants acted willfully because they were aware of
their obligations to pay overtime and utilized a deceptive pay scheme to make it
appear they were in compliance with the FLSA even though they were not in
actuality paying the overtime premium for hours worked over 40 in a workweek.
Upon information and belief, San Miguel and Jimenez’s co-owners, including
Defendant Mariela Jimenez, informed employees they paid all hours worked at
straight time and they did not pay overtime.
Remedies Sought
16.As a result of their FLSA violations, Defendants owe the employees
listed in Exhibit A back wages and liquidated damages, under 29 U.S.C. §§ 216(c),
217.If Defendants continued to violate the FLSA after the Investigation Period,
then Defendants may owe additional back wages and liquidated damages to
employees.
17.Defendants may also owe additional back wages and liquidated
damages during the Investigation Period to employees whose identities are
presently unknown to the Acting Secretary.
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18.Because Defendants repeatedly and willfully violated the FLSA, the
Acting Secretary is entitled to recover back wages and liquidated damages for a
three-year period. 29 U.S.C. § 255(a).
Prayer for Relief
As a result of Defendants’ repeated and willful FLSA violations, the Acting
Secretary respectfully requests this Court enter an Order:
A.Permanently enjoining and restraining Defendants, their officers,
agents, servants, employees, and those in active concert or participation with them,
from violating Sections 207, 211, 215(a)(2), and 215(a)(5) of the FLSA. 29 U.S.C. §
217(a).
B.Finding Defendants liable for unpaid overtime wages, plus an equal
amount in liquidated damages, owing to the employees listed in Exhibit A, as well
as to other of Defendants’ employees not yet known to the Acting Secretary. 29
U.S.C. § 216(c).
C.If the Court declines to award liquidated damages, then enjoining and
restraining Defendants, their officers, agents, employees, and those persons in
active concert or participation with Defendants, from withholding unpaid
compensation found owing to Defendants’ employees, plus prejudgment interest
computed at the underpayment rate established by the Acting Secretary of the
Treasury under 26 U.S.C. § 6621.
D.Providing such other relief as may be necessary and appropriate.
CASE 0:23-cv-03839 Doc. 1 Filed 12/19/23 Page 7 of 9
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E.Awarding costs and granting such other and further relief as may be
necessary and appropriate.
Respectfully submitted,
SEEMA NANDA Solicitor of Labor
CHRISTINE Z. HERI Regional Solicitor
/s/ Bharathi Pillai
BHARATHI PILLAI U.S. Department of Labor Office of the Solicitor 230 South Dearborn Street, Rm. 844 Chicago, Illinois 60604 (312) 886-6991Pillai.bharathi@dol.govIL Bar #6319434
/s/ JoAnn G. Lim
JOANN G. LIM U.S. Department of Labor Office of the Solicitor 230 South Dearborn Street, Rm. 844 Chicago, Illinois 60604 (312) 353-6990Lim.joann.g@dol.govIL Bar #6300362
Attorneys for Plaintiff Julie A. Su,
Acting Secretary of Labor, United States
Department of Labor
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EXHIBIT A
San Miguel2 Jimenez 1.M. Agustin*2.N. Agustin*3.A. A. Tarrios4.L. B. Aguilar5.E. B. Pliego*6.M. C. Mendez7.A. Castellanos8.J. Castellanos*9.A. Cruz10. E. Espinoza*11. M. F. G. Rodriguez12. F. Gonzalez13. F. Gutierrez14. L. Hernandez*15. M. H. Almanzar16. L. L. Vazquez17. H. L. Camacho18. F. Morales19. J. O. Fuentes20. J. Ponce21. D. R. Valle22. E. R. Valle23. L. R. Lopez24. L. R. Diaz25. V. Romero26. S. S. Colins27. H. Tejada28. L. Tapia-Acosta29. L. A. Vasquez30. P. V. Lopes31. E. Zuluaga
1.M. Agustin*2.N. Agustin*3.E. B. Pliego*4.J. Burgos5.J. C. Chavez6.R. C. Gomeso7. J.Castellanos*8.J. Chinchilla9.E.Espinoza*10. J. Espinoza11. C. Esquivel12. M. E. Soriano13. I. F. Ciriaco14. C. G. Esquivel15. J. L. G. Tepozteco16. E. Hernandez17. L. Hernandez*18. A. I. Tapia19. T. M. Justo20. R. M. Lara21. J. Pacheco22. R. P. Lopez23. U. P. Vidal24. M. R. Valle25. V. Romero26. S. S. Colins
*Shared employees
2 Names have been redacted for privacy reasons. The Acting Secretary will provide Defendants with an unredacted list.
CASE 0:23-cv-03839 Doc. 1 Filed 12/19/23 Page 9 of 9
16TH AVE S66TH ST E
67TH ST E
68 TH 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 D ensity Residential
Medium Density Residential
Low Density Residential
Park
Quasi-Public
1430 – 66th Street East
0 360 720180
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