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031824 HRA AgendaREGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS MARCH 18, 2024 7:00 PM Call to Order Gordon Hanson Oath of Office Elect officers for the Richfield Housing and Redevelopment Authority for 2024. Staff Report No. 3 Open Forum Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the HRA. Please refer to the HRA agenda and minutes web page for additional ways to submit comments. Call into the open forum by dialing 1-415-655-0001 Use webinar access code: 2632 548 1687 and password: 1234. Appr oval of t he M inut es Approval of the minutes of the Regular Housing and Redevelopment Authority meeting of February 20, 2024. AGENDA APPROVAL 1.Approval of the Agenda 2.Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action on these items is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A.Consider resolutions designating official depositories for the Housing and Redevelopment Authority for 2024, including the approval of collateral. Staff Report No. 4 3.Consideration of items, if any, removed from Consent Calendar OTHER BUSINESS 4.Designation of Community Development Director Melissa Poehlman as the Executive Director of the Richfield Housing and Redevelopment Authority. Staff Report No. 5 5.2023 HRA and EDA Year in Review HRA DISCUSSION ITEMS 6.HRA D iscussion Items E X E C U T IV E D IR E C TO R R E P O R T 7.E xecutive D irector's Report C LAIMS 8.C laims 9.A djournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. AGENDA SECTION:Call to Order AGENDA ITEM # STAFF REPORT NO. 3 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 3/18/2024 REPORT PREPARED BY: LaTonia DuBois, Administrative Assistant OTHER DEPARTMENT REVIEW: N/A EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director 3/7/2023 ITEM FOR COUNCIL CONSIDERATION: Elect officers for the Richfield Housing and Redevelopment Authority for 2024. EXECUTIVE SUMMARY: The Bylaws of the Richfield Housing and Redevelopment Authority (HRA) provide that the HRA hold an annual meeting in March. The Bylaws further provide that the Chair, Vice Chair, and Secretary of the HRA be elected at this meeting. Officers for 2023 were: Erin Vrieze Daniels, Chair Gordon Hanson, Vice Chair Sean Hayford Oleary, Secretary RECOMMENDED ACTION: By motion: Elect officers for the Richfield Housing and Redevelopment Authority for 2024. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT Provided in the Executive Summary. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS None C.POLICIES (resolutions, ordinances, regulations, statutes, exc): The HRA Bylaws provide for the election of officers. D.CRITICAL TIMING ISSUES: The HRA Bylaws require that an election of officers be held at the annual meeting in March. E.FINANCIAL IMPACT: None F.LEGAL CONSIDERATION: None ALTERNATIVE RECOMMENDATION(S): None P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: N/A HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting February 20, 2024 CALL TO ORDER Acting Chair Hanson called the meeting to order at 7:00 p.m. in the Council Chambers. HRA Members Present: Erin Vrieze Daniels, Chair; Gordon Hanson; Sean Hayford Oleary; Mary Supple; and John Young HRA Members Absent Staff Present: 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 M/Hayford Oleary, S/Supple to approve the 1) minutes of the regular Housing and Redevelopment Authority meeting of December 18, 2023, and the 2) minutes of the Special Housing and Redevelopment Work Session of January 4, 2024. Motion carried: 5-0 ITEM #1 APPROVAL OF THE AGENDA M/Hanson, S/Hayford Oleary to approve the agenda. Motion carried: 5-0 HRA Meeting Minutes -2-February 20, 2024 ITEM #2 APPROVAL OF THE CONSENT CALENDAR Assistant Community Development Director Urban presented the Consent Calendar. A.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 (Staff Report No. 1). M/Hanson, S/Supple to approve the consent calendar. Motion carried: 5-0 ITEM #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR None. ITEM #4 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. Economic Development Manager Youngquist gave the report. Commissioner Hanson asked what kind of timeline could be expected for the lawsuit. Youngquist stated the City Attorney said it could last for more than a year. Commissioner Young noted that the Memorandum of Understanding (MOU) was set to expire in May and asked if there were any legal liability considerations to let the MOU expire. Youngquist stated that letting the MOU run its course and expire in May would be the least risky option according to the City Attorney. She further stated that there would only be liabilities if obligations before the expiration of the MOU were not met. Commissioner Hayford Oleary asked if it was the preference of staff to terminate the MOU or let it expire. Youngquist replied that the preference would be to let it expire. Commissioner Hayford Oleary asked how this occurrence differed from past allegations of wage violations. Youngquist stated these allegations were different because a lawsuit has been filed against the owners. Commissioner Supple stated she was comfortable with letting the MOU expire while the lawsuit plays out in court. Commissioner Young asked if this could be revisited once the lawsuit was resolved. Youngquist stated that it could be revisited. HRA Meeting Minutes -3-February 20, 2024 Commissioner Hayford Oleary stated he was concerned with treading water by just letting the MOU expire and not letting the developers advance the project. Chair Vrieze Daniels stated she would like to see what happens with the lawsuit and let the MOU expire. Commissioners Young and Hanson concurred with that statement. Youngquist summarized the feedback received from the Commissioners. ITEM #5 HRA DISCUSSION ITEMS Commissioner Supple congratulated Commissioner Hanson for being reappointed to the HRA. Commissioner Hayford Oleary spoke about a legislative bill that was introduced having to do with density around transit lines. ITEM #6 EXECUTIVE DIRECTOR REPORT Assistant Community Development Director Urban congratulated Commissioner Hanson on his reappointment and stated he would receive the oath of office at the next meeting in March. Urban stated she spoke with MWF Properties regarding the development at 7700 Pillsbury Ave and stated they did not receive enough points for tax credits. She further stated that they would not attempt to receive the points in the future. ITEM #7 CLAIMS M/Young, S/Hanson that the following claims be approved: U.S. BANK 1/16/2024 HRA Checks: #36989-37000 $146,510.76 Section 8 Checks: #135428-135512 $221,541.28 TOTAL $368,052.04 U.S. BANK 2/20/2024 HRA Checks: #37001-37019 $111,912.48 Section 8 Checks: #135513-135605 $209,458.67 TOTAL $321,371.15 Motion carried: 5-0 HRA Meeting Minutes -4-February 20, 2024 ITEM #8 ADJOURNMENT The meeting was adjourned by unanimous consent at 7:23 p.m. Date Approved: March 18, 2024 Erin Vrieze Daniels HRA Chair Dustin Leslie Julie Urban City Clerk Assistant Community Development Director AGENDA SECTION:Consent Calendar AGENDA ITEM #2.A. STAFF REPORT NO. 4 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 3/18/2024 REPORT PREPARED BY: Kumud Verma, Finance Director OTHER DEPARTMENT REVIEW: EXECUTIVE DIRECTOR REVIEW: ITEM FOR COUNCIL CONSIDERATION: Consider resolutions designating official depositories for the Housing and Redevelopment Authority for 2024, including the approval of collateral. EXECUTIVE SUMMARY: In compliance with Minnesota statutes, the Housing and Redevelopment Authority of Richfield (HRA) must designate on an annual basis those financial institutions it does business with. The following resolutions for the HRA Board’s consideration, designate U.S Bank/4M Fund as a depository of HRA funds, and certain savings and loan associations, banks, credit unions and certain financial institutions as depositories for the investment of HRA funds. RECOMMENDED ACTION: By motion: Adopt the attached resolutions designating official depositories, with the understanding that the Housing and Redevelopment Authority could not invest in any of the depositories beyond the level of insurance coverage of the pledged collateral. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT N/A B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Regular business transaction. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must designate financial institutions annually. The institutions must pledge the collateral over and above the amount of federal insurance, as public depositories. U.S. Bank acts as the banking institution in the HRA’s banking arrangement with the 4M Fund. Monies received, checks written, by the HRA, flow through U.S. Bank, however, at the end of each business day, any proceeds remaining in HRA U.S. Bank accounts are swept to the 4M Fund to be invested. Therefore, at the end of the business day the HRA accounts are zero, which means the collateral requirements of Minnesota Statutes Section 118A.03 are not required. Accordingly, U.S. Bank has met all other statutory requirements and should be considered as a depository for the HRA’s vendor accounts and all savings deposits. The HRA must also designate annually, certain savings and loan associations, banks, and credit unions as official depositories for deposit and investment of certain HRA funds. With approval of these official Melissa Poehlman, Executive Director 3/5/2024 N/A depositories, the HRA will be able to invest funds in these institutions, not exceeding the federal insurance of $250,000. Finally, a designation must be made for certain financial institutions as depositories for the investment of HRA funds for 2023. These institutions, such as investment brokerage firms, offer government securities in the manner required by law. These financial institutions include RBC Capital Markets, Raymond James & Associates, Northland Securities, Oppenheimer & Co., Principal Custody Solutions, Moreton Capital Markets, Pershing Wealth Solutions BNY Mellon and, and the 4M Fund. D.CRITICAL TIMING ISSUES: N/A E.FINANCIAL IMPACT: N/A F.LEGAL CONSIDERATION: The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an assignment pledged to the HRA in the amount specified in the attached resolutions. ALTERNATIVE RECOMMENDATION(S): None PRINCIPAL PARTIES EXPECTED AT MEETING: None ATTACHMENTS: Description Type Resolution Designating Certain Financial Institutions as Depositories Resolution Letter Resolution Designating Certain S&L Associations, banks & credit unions as depositories Resolution Letter Resolution Designating US Bank a depository of funds Resolution Letter RESOLUTION NO. 1475 RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2024 WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for investment; and WHEREAS, different financial institutions offer different rates of return on investments; and WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the Housing and Redevelopment Authority of Richfield providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections 118A.01 – 118A.06, as follows: 1.It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority of Richfield funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority of Richfield funds for 2024. 2.The following financial institutions designated as depositories for the Housing and Redevelopment Authority of Richfield funds: RBC Capital Markets Raymond James & Assoc. Principal Custody Solutions 4M Fund Northland Securities, Inc. Oppenheimer & Co. Moreton Capital Markets Pershing Wealth Solutions BNY Mellon 3.The Finance Director is hereby authorized to deposit the Housing and Redevelopment Authority of Richfield funds in any or all of the depositories herein designated. Such deposits may be made and withdrawn from time to time by the Finance Director’s judgment and as the interest of the Housing and Redevelopment Authority of Richfield dictates. 4.The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the investment of these funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18th day of March, 2024. Chair ATTEST: Secretary RESOLUTION NO. 1476 RESOLUTION DESIGNATING CERTAIN SAVING AND LO AN ASSOCIATIONS, BANKS AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2024 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota: WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 – 118A.06, municipal funds may be deposited in any Savings and Loan Association, Bank or Credit Union which has its deposits insured by the Federal Deposit Insurance Corporation (FDIC), or National Credit Union Administration (NCUA); and WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA insurance covering such deposits which insurance amount is presently $250,000; and WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Housing and Redevelopment Authority’s investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, as follows: 1.It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority funds that certa in Savings and Loan Association and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 2024. 2.It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Housing and Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. 3.The Finance Director is hereby authorized to deposit Housing and Redevelopment Authority funds in various depositories up to the amount of $250,000, or such other amount as may be subsequently permitted by law, such deposits to be in the form of demand accounts, payable to the H ousing and Redevelopment Authority of Richfield on the signatures of the Housing and Redevelopment Authority Finance Director. Such deposits may be made and withdrawn from time to time by the Finance Director as his best judgment and the interests of the Housing and Redevelopment Authority dictates. 4.The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies of the Housing and Redevelopment Authority regarding the investment of Ho using and Redevelopment Authority funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18th day of March, 2024. Chair ATTEST: Secretary RESOLUTION NO. 1477 RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FOR THE YEAR 2024 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment Authority of Richfield, subject to modification and revocation at any time by said Housing and Redevelopment Authority, and subject to the following terms and conditions: The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield. That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on demand. BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. The following officers or their facsimile signatures shall sign checks on this account; CHAIR EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of each business day will be transferred from U.S. Bank to the 4M Fund where funds deposited are invested and insured. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18th day of March, 2024. Chair ATTEST: Secretary AGENDA SECTION:OTHER BUSINESS AGENDA ITEM #4. STAFF REPORT NO. 5 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 3/18/2024 REPORT PREPARED BY: LaTonia DuBois, Administrative Assistant OTHER DEPARTMENT REVIEW: EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director 3/7/2023 ITEM FOR COUNCIL CONSIDERATION: Designation of Community Development Director Melissa Poehlman as the Executive Director of the Richfield Housing and Redevelopment Authority. EXECUTIVE SUMMARY: The Housing and Redevelopment Authority (HRA) Bylaws require an Executive Director to be appointed to conduct regular HRA business. On March 20, 2023 Community Development Director, Melissa Poehlman was appointed to serve until the regular HRA meeting in March 2024. Staff recommends the reappointment of Director Poehlman. The HRA Bylaws do not stipulate a term for the Executive Director. Since 2018, this has been done annually, although the reason for the annual consideration is unclear. Prior to that, the Executive Director was appointed indefinitely. HRA Attorney Eddington has confirmed that this is the standard. The HRA could continue to appoint an Executive Director annually or could decide to appoint for a different term: specific number of years; tied to Director Poehlman's employment as the Community Development Director; or other term determined by the HRA. At any time, the Board could bring an item to appoint a different employee as Executive Director. RECOMMENDED ACTION: By motion: Designate Community Development Director Melissa Poehlman as the Housing and Redevelopment Authority Executive Director. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT Historically, appointment of an HRA Executive Director was not considered annually. The specific language of the HRA Bylaws is as follows: Section 5. Executive Director. The Authority shall employ an Executive Director who shall have general supervision over the administration of its business and affairs, subject to the direction of the Authority. He or she shall be charged with the management of the housing and redevelopment projects of the Authority. Regardless of who is appointed, the City Manager of the City of Richfield shall have ultimate authority in recommending an annual levy and budget. The Executive Director may designate an acting Executive Director during periods N/A when he or she is absent or incapacitated. 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 None C .P OL IC IE S (resolutions, ordinances, regulations, statutes, exc): The B ylaws of the Richfield HRA require the designation of an E xecutive D irector to manage the day-to- day affairs of the A uthority. D .C R IT IC AL T IMIN G IS S U E S: A n E xecutive D irector must be appointed in order to conduct regular HRA business. E .F IN AN C IAL IMPAC T: None F.L E GAL C ON S ID E R AT ION: The B ylaws of the Richfield HRA require the designation of an E xecutive D irector. It is unusual to have this appointment be considered annually. Typically an E xecutive D irector is appointed indefinitely; effectively co-terminus with employment or action by the B oard to consider a different appointment. ALTE R N AT IV E R E C O MME N D ATIO N(S): None P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: N/A