081924 EDA AgendaECONOMIC DEVELOPMENT AUTHORITY MEETING
RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
AUGUST 19, 2024
7:15 PM (IMMEDIATELY FOLLOWING THE HRA MEETING)
Call to Order
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 EDA. Please refer to the EDA agenda and minutes web page for
additional ways to submit comments. You may also call 612-861-9764 or email ldubois@richfieldmn.gov with
questions. Call into the open forum by dialing 1-415-655-0001 Use webinar access code: 2631 553 4069 and
password: 1234.
Appr oval of t he M inut es
Approval of the minutes of the Regular Economic Development Authority meeting of April 15, 2024.
PRESENTATIONS
1.EDA Budget Presentation
AGENDA APPROVAL
2.Approval of the Agenda
3.Consent Calendar contains several separate items which are acted upon by the EDA in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further EDA action on these items is necessary. However, any EDA
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for EDA discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A.Consideration of an Amended Agreement with the Center for Energy and Environment to increase the
budget for the Apartment Remodeling Program.
Staff Report No. 8
4.Consideration of items, if any, removed from Consent Calendar
RESOLUTIONS
5.Consider resolutions approving proposed property tax levy for payable 2025 for certification to Hennepin County.
Staff Report No. 9
EDA DISCUSSION ITEMS
6.EDA Discussion 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 AN D PAYR O L LS
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.
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
April 15, 2024
CALL TO ORDER
The meeting was called to order by President Vrieze Daniels at 7:19 p.m. in the Council
Chambers.
EDA Members
Present:
Erin Vrieze Daniels, President; Sean Hayford Oleary; Mary Supple; and
Gordon Hanson
EDA Members
Absent:
John Young
Staff
Present:
Melissa Poehlman, Executive Director; Julie Urban, Assistant Community
Development Director; Dustin Leslie, City Clerk
ITEM 1 - PRESENTATION – OVERVIEW OF THE ELEVATE HENNEPIN PROGRAM
Brandon Bell with Hennepin County gave the presentation.
Commissioner Hanson asked about the roles of advisors in the program. Bell spoke about
the services advisors provided.
Commissioner Hayford Oleary asked who does the advising in the program. Bell stated
they were contracted with non-profit and for-profit partners.
OPEN FORUM
President Vrieze Daniels gave instructions on how to participate in the open forum. No
callers or speakers.
APPROVAL OF THE MINUTES
M/Hanson, S/Supple to approve the regular Economic Development Authority meeting
minutes of March 18, 2024.
Motion carried: 4-0
EDA Meeting Minutes -2-April 15, 2024
ITEM #2 APPROVAL OF THE AGENDA
M/Supple, S/Hayford Oleary to approve the agenda.
Motion carried: 4-0
ITEM #6 EDA DISCUSSION ITEMS
Commissioner Hanson spoke about Nashville Coop moving into the location where Flynn’s
Diner used to be.
ITEM #7 EXECUTIVE DIRECTOR’S REPORT
No report.
ITEM #8 CLAIMS
M/Hayford Oleary, S/Supple that the following claims be approved:
U.S. BANK 4/15/2024
EDA Checks # 23475-23489 $11,926.64
TOTAL $11,926.64
Motion carried: 4-0
ITEM #9 ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:40 p.m.
Date Approved: August 19, 2024
Erin Vrieze Daniels
President
LaTonia DuBois Melissa Poehlman
Administrative Assistant Executive Director
2024R-2025 EDA BUDGET
Role of the EDA
Mission
To fund beneficial economic development, business assistance, and
housing assistance programming.
Areas of Focus
•Business Assistance
•Housing Assistance – Kids@Home, Transformation Loan
•Apartment Remodeling
EDA Staff
The EDA pays portion of the salary of nine CD employees.
Executive Director, Melissa Poehlman
Assistant Director, Julie Urban
Economic Development Manager, Jan Youngquist
Multifamily Housing Administrator, Lynnette Chambers
Housing Specialists, Celeste McDermott & Hilary Lovelace
Assistant Planner, Ruby Villa
Accountant, Colleen Thornburg
Administrative Assistant, LaTonia DuBois
2024R/2025 EDA Budget
•2024 Revised Budget increases by about $107,000 (17.6%)
–Apartment Remodeling Loan Program (+ $85,000)
–SAC Assistance Program (new $20,000)
•The 2025 Proposed Budget 7.7% over adopted, -8.0% under revised
–13% increase in staff costs
–$5,000 matching funds for downtown branding grant
•2025 Proposed Levy - $623,343; 2025 Maximum Levy - $917,711
•Impact to average homeowner - $1.58/year
2023 Actual 2024 Approved 2024 Revised 2025 Proposed
EDA $428,714 $617,560 $724,700 $663,490
Funding Sources from the EDA Budget
Expenditures from the EDA Budget
EDA Sources & Uses
2024 App.2024 Rev.2025 Prop.
Taxes $573,370 $573,370 $623,343
Misc. Rev.$7,100 $7,100 $37,100
Total $600,470 $600,470 $660,443
2024 App.2024 Rev.2025 Prop.
Personnel $132,190 $131,930 $149,660
Admin.$17,070 $20,970 $21,680
Programs $468,300 $571,800 $492,150
Total $617,560 $724,700 $663,490
2024 Highlights
•New SAC Assistance Program
•Inventory of existing downtown businesses
•Apply for grant funds to initiate branding
strategy for downtown
Program Notes
•Kids @ Home
•Transformation Home Loans
•Apartment Rehab Loan/Grant
•Business Development
•Elevate Hennepin
Questions & Discussion
AGENDA SECTION:Consent Calendar
AGENDA ITEM #3.A.
STAFF REPORT NO. 8
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
8/19/2024
REPORT PREPARED BY: Julie Urban, Asst. Community Development Director
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of an Amended Agreement with the Center for Energy and Environment to increase the
budget for the Apartment Remodeling Program.
EXECUTIVE SUMMARY:
In March, the Economic Development Authority (EDA) approved an Agreement with the Center for Energy
and Environment (CEE) to administer the EDA's Apartment Remodeling Loan Program (Program). The
Agreement provided $100,000 for the Program. At this time, all of these funds have been either spent or
committed, and staff is recommending the Agreement be amended to increase the Program budget amount to
$150,000 to allow additional Program activity.
The Program is an important incentive the EDA offers to encourage owners of Naturally Occurring
Affordable Housing (NOAH) to make improvements to aging properties. Providing a steady stream
of funds to the Program ensures that the Program remains a reliable resource.
In a separate agenda item at this meeting, the EDA is being asked to consider the 2024 Revised Budget. The
Revised Budget proposes adding the additional funds to the Program. Approval of the Amended Agreement
is contingent upon EDA approval of the Revised Budget.
RECOMMENDED ACTION:
By motion: Approve an Amendment to the Apartment Remodeling Program Origination Agreement with
the Center for Energy and Environment, contingent upon approval of the 2024 Revised Economic
Development Authority budget.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
In March of 2018, the EDA approved the Program to encourage investment in the City's apartment
properties. In 2023, the EDA expanded the eligibility to include 1-3 unit rental properties when sufficient
funds are available.
The Program provides zero interest, deferred loans, with a 15-year term and is focused
on properties with rents affordable at 60% of the Area Median Income (AMI) or less (i.e.,
NOAH).
On March 18, 2024, the EDA approved a contract with CEE to administer the Program.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Investing in the City's apartment and rental housing community advances equity for residents with lower
Melissa Poehlman, Executive Director
08/09/2024
incomes and those who are Black, Indigenous, and People of Color (BIPOC). Fifty-four percent of the
City's rental housing community are BIPOC residents.
One of the Strategic Plan initiatives is to maintain Richfield as an affordable place to live. Public
investment in rental properties can help to maintain affordability.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The Amendment to the Agreement makes no changes to the Program guidelines that were adopted by
the EDA in 2018 and amended in 2023.
Maintaining and improving the City's NOAH housing is a high priority goal of the City and the EDA.
D.CRITICAL TIMING ISSUES:
The Agreement is in effect through December 31, 2024.
The 2024 Revised Budget is before the EDA for consideration on August 19.
E.FINANCIAL IMPACT:
The Amended Agreement increases the contract amount from $100,000 to $150,000.
There are sufficient funds available in EDA reserves, and the increased funds are allocated in the 2024
Revised Budget.
F.LEGAL CONSIDERATION:
The EDA Attorney reviewed the Agreement.
ALTERNATIVE RECOMMENDATION(S):
Decide not to approve the Amended Agreement with CEE.
PRINCIPAL PARTIES EXPECTED AT MEETING:
NA
ATTACHMENTS:
Description Type
Agreement Amendment Contract/Agreement
R:\CDAdmin\HOUSING\Partners\CEE\Contracts\2024\Amendment\Amendment 1 Multi-Family Richfield (Draft).doc #
AMENDMENT 1 to the LOAN ORIGINATION AGREEMENT
Between
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD And
CENTER FOR ENERGY AND ENVIRONMENT
City of Richfield Apartment Remodeling Loan Program
The Agreement made the 25th day of March, 2024 by and between the ECONOMIC
DEVELOPMENTAUTHORITY IN AND FOR THE CITY OF RICHFIELD, with offices at
6700 Portland Ave, Richfield, MN 55423, (the “Authority”), and the CENTER FOR ENERGY
AND ENVIRONMENT, with its offices at 212 3rd Avenue North, Suite 560, Minneapolis,
Minnesota 55401 (“CEE”) is hereby amended.
Exhibit A shall be replaced by Exhibit A1 (attached)
Exhibit B shall be replaced by Exhibit B1 (attached)
Section 5. Term and Termination of the agreement shall read:
5.1
Unless earlier terminated as provided in the following paragraphs, this Agreement shall
become effective on January 1, 2024 and continue through December 31, 2024.
All other sections of the contract shall remain as written in the original and amended agreements.
IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below:
HOUSING AND REDEVOPMENT
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD
CENTER FOR ENERGY AND
ENVIRONMENT
By ___________________________ By __________________________
Date __________________________ Date _________________________
CEE #
By ___________________________ TAX ID 41-1647799
Date __________________________
Exhibit B1
EXHIBIT B1
TOTAL PROGRAM BUDGET $150,000
RICHFIELD LOAN PROGRAM BUDGET
A.
Multi-Family Improvement Loan Budget (does not include One Time Set-Up Fee,
Remodeling Advisor Visits and Loan Origination Fees) :
2024: $150,000
Budget Notes:
1.CEE shall submit monthly invoices for loan program and administrative fees for that
period.
2.Services performed by CEE will be funded from the Total Program Budget as stated
above and paid in accordance with the following schedule.
(1)Annual Administration Fee None (included in Residential
Program)
(2)Remodeling Advisor Visit $250.00 per visit
(3) Multi-Family Improvement Loan Origination Fee
$750 per loan closed
(4) One time Set-Up Fee for Multi-Family Improvement Loan Program
$2,500
3.Marketing
Marketing efforts will be supported by CEE and marketing costs are not included in the
administrative budget. Hourly rates are inclusive of all overhead expenses and will be
charged only for hours directly related to the labor of all program marketing. CEE will
also be reimbursed by City of Richfield for any non-labor, out-of-pocket expenses
relating to these services on a dollar-for-dollar basis.
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #5.
STAFF REPORT NO. 9
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
8/19/2024
REPORT PREPARED BY: Kumud Verma, Finance Director
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consider resolutions approving proposed property tax levy for payable 2025 for certification to
Hennepin County.
EXECUTIVE SUMMARY:
The bylaws of the Richfield Economic Development Authority (EDA) require that an annual budget be
submitted to the EDA Commissioners for approval. Accordingly, the 2025 Proposed Budget and Tax Levy and
2024 Revised Budget are presented for approval.
In addition, Minnesota State Statutes require adoption of a preliminary tax levy from each taxing authority.
The proposed tax levy must be certified to the Hennepin County Auditor by September 30, 2024 (or next
business day, if September 30 falls on a weekend). Any amendments to the proposed budget, which would
increase the property tax levy, must be made prior to September 30, 2024. No increases in the tax levy are
permissible after that date, only reductions. Final certification of the EDA tax levy is part of the City’s budget
process.
The recommended tax levy as proposed represents a 4.0% increase from the previous year’s levy.
RECOMMENDED ACTION:
By motion: Adopt the attached resolutions approving the 2025 Proposed Economic Development
Authority Budget and Tax Levy and 2024 Revised Economic Development Authority Budget.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
N/A
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
N/A
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
Minnesota Statutes require adoption of a preliminary levy from each taxing authority.
The budget and accompanying proposed levy for 2025 are ready for consideration.
Even though a public hearing for the EDA tax levy is not required by State Statute, this does not
preclude the EDA from opening this item up for public discussion if the EDA desires to do so.
Melissa Poehlman, Executive Director
08/13/2024
D.CRITICAL TIMING ISSUES:
As required by State Statutes, each taxing authority must certify its proposed tax levy for the payable
year 2025 to the County Auditor on or before September 30, 2024.
E.FINANCIAL IMPACT:
The Proposed 2025 EDA levy represents a 4.0% increase from the previous year’s levy.
The levy is approximately $294,368 less than the maximum EDA levy established by law of the .01813%
of the City’s total estimated taxable market value.
F.LEGAL CONSIDERATION:
N/A
ALTERNATIVE RECOMMENDATION(S):
The EDA could adopt a preliminary levy greater than the one proposed herein. However, the levy
proposed provides the necessary funding to provide for programs that are recommended in the 2025
Proposed/2024 Revised budget.
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ATTACHMENTS:
Description Type
2025 EDA Tax Levy Resolution Resolution Letter
2024 EDA Budget Revision Resolution Letter
EDA RESOLUTION NO. 51
RESOLUTION APPROVING PROPOSED 2025 ECONOMIC DEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2025 TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of
Richfield, Minnesota as follows:
Section 1. The budget for the Economic Development Authority
General Fund of Richfield for the year 2025 in the amount of
$663,490 is hereby ratified.
Section 2. The estimated gross revenue of the Economic Development
Authority General Fund of Richfield from all sources, including
general ad valorem tax levies as hereinafter set forth for the year
2025, and as the same are more fully detailed in the Executive
Director’s official copy of the budget for the year 2025, in the
amount of $660,443 is hereby approved.
Section 3. There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2024, payable in 2025 for the
following purposes:
Economic Development Authority $623,343
Section 4. A certified copy of this resolution shall be transmitted to the County
Auditor.
Adopted by the Economic Development Authority in and for the City of Richfield,
Minnesota this 19th day of August 2024.
Erin Vrieze Daniels, President
ATTEST:
Melissa Poehlman, Executive Director
EDA RESOLUTION NO. 52
RESOLUTION AUTHORIZING REVISION OF THE 2024 BUDGET OF THE
ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No. 46 appropriated funds for personal services and other
expenses for the Economic Development Authority for the year 2024, and
WHEREAS, The Executive Director has requested a revision of the 2024 budget as
detailed in the 2025 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
of Richfield, Minnesota as follows:
Section 1. That the 2024 appropriation for the Economic Development Authority
General Fund is revised as follows:
$107,140 increase
Section 2. Estimated 2024 gross revenue of the Economic Development
Authority General Fund from all sources, as the same is more fully
detailed in the Executive Director’s official copy of the 2025 budget
document, are hereby revised as follows:
no change
Section 3. That the Executive Director bring into effect the provisions of this
resolution.
Adopted by the Economic Development Authority in and for the City of Richfield,
Minnesota this 19th day of August, 2024.
Erin Vrieze Daniels, President
ATTEST:
Melissa Poehlman, Executive Director