2025-01-28 Resolution 12298RC125-402-1000914.v1
City of Richfield January 28, 2025
County of Hennepin
State of Minnesota
RESOLUTION NO. 12298
Motion by: Coleman-Woods
Seconded by: Hayford Oleary
RESOLUTION AUTHORIZING THE USE OF 4d TAX CLASSIFICATION FOR RENTAL
PROPERTIES LOCATED AT 50 WEST 78TH STREET, 1300-1324 EAST 78TH STREET
AND 7500-7544 CEDAR AVENUE BY HEMPEL HOLDINGS, LLC,
OR A SUBSIDIARY THEREOF
WHEREAS, the City of Richfield, Minnesota (the “City”) has recently learned that there
are three Naturally Occurring Affordable Housing properties (“NOAH”), containing 236 rental
apartment units, up for sale in the City and a preservation buyer is interested in purchasing the
properties; and
WHEREAS, the NOAH properties consist of the New Orleans Court Apartments and
Townhomes (located at 50 West 78th St), the Richland Court Apartments (located at 1300-1324
East 78th St), and the Winton House Apartments (located at 7500/7544 Cedar Ave); and
WHEREAS, Hempel Holdings, LLC, a Minnesota limited liability company, or a
subsidiary thereof (collectively, the “Redeveloper”), has submitted and had accepted an offer to
and by the property owner to purchase the three NOAH properties; and
WHEREAS, the Redeveloper is seeking to preserve and maintain the affordability of the
NOAH properties and is using equity from the Greater Minnesota Housing Fund’s NOAH Impact
Fund, which would contribute equity to the project in exchange for preserving affordability for
15 years; and
WHEREAS, due to current market conditions, the Redeveloper needs additional funding
in order to preserve the affordability of the units and undertake modest rehabilitation of the
buildings and as a result has submitted a request for financial assistance to the City’s Housing
and Redevelopment Authority (the “Authority”); and
WHEREAS, on January 21, 2025, the Board of Commissioners of the Authority (the
“Board”) approved a Memorandum of Understanding (the “MOU”) between the Authority and
the Redeveloper, which sets forth the understanding of responsibilities of and actions to be
taken by the Redeveloper and the Authority with respect to the purchase and redevelopment of
the NOAH properties by the Redeveloper; and
WHEREAS, the MOU sets forth the possibility of financial assistance in an amount of up
to $1.77 million in exchange for the Redeveloper investing up to $2.5 million to rehabilitate the
properties and maintaining rents and incomes affordable at 60% of the Area Median Income
(AMI) for all one and two bedroom units and 70% of the AMI for all three bedroom units for a
period 15 years; and
WHEREAS, as a condition of financial assistance, the Authority would place a
Declaration of Restrictive Covenants on the property requiring the affordability, and in
exchange, the Redeveloper would be eligible for 4d tax classification for affordable housing;
and
WHEREAS, preserving the affordability of the NOAH properties is important to the
community because it furthers the City’s Strategic Plan goal to maintain Richfield as an
affordable place to live; and
RC125-402-1000914.v1
City of Richfield January 28, 2025
County of Hennepin
State of Minnesota
RESOLUTION NO. 12298
WHEREAS, preserving the affordability of the NOAH properties is important to the
community because they contain 156 two and three bedroom rental units which provide
valuable housing options for families with children, including school children; and
WHEREAS, preserving the affordability of the NOAH properties is important to the
community because they are currently home to 48 low-income households that receive rental
assistance through programs operated by the Authority and in exchange for financial assistance
the Redeveloper would agree to continue to rent to households who receive rental assistance;
and
WHEREAS, while the 4d tax classification for the NOAH properties will lower the City’s
tax capacity, two tax increment financing districts will be decertified in 2026, which will increase
the City’s tax capacity, offsetting the decrease; and
WHEREAS, the City sees additional benefits to the residents and to the community,
including the prevention of tenant displacement; the rehabilitation of the buildings, which are 50 to
60 years old, and local, in-house property management services, and
NOW, THEREFORE, BE IT RESOLVED as follows:
1.The City Council authorizes the use of the 4d tax classification up to 15 years for the
preservation of these NOAH properties.
2.The City Council supports the provision of financial assistance by the City’s
Authority in exchange for rent and income restrictions on all one and two bedroom
units at 60% of the AMI and on all three bedroom units at 70% of the AMI.
3.This resolution shall be in full force and effect upon its adoption.
VOTING AYE VOTING NAY
Supple, Mary Supple, Mary
Burk, Walter Burk, Walter
Christensen, Sharon Christensen, Sharon
Coleman-Woods, Rori Coleman-Woods, Rori
Hayford Oleary, Sean Hayford Oleary, Sean
Adopted by the City Council of the City of Richfield, Minnesota this 28th day of January,
2025.
Mary B. Supple, Mayor
ATTEST:
Michelle Friederich, City Clerk
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