021825 Resolution 1497 Penn Station Second AmendmentHOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 1497
RESOLUTION APPROVING A SECOND AMENDMENT TO PRELIMINARY
REDEVELOPMENT AGREEMENT WITH PENN STATION APARTMENTS LLLP
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "Authority") was created pursuant to Minnesota Statutes, Sections 469.001
through 469.047, as amended, and was authorized to transact business and exercise its powers
by a resolution of the City Council of the City of Richfield, Minnesota (the "City"); and
WHEREAS, the "Authority" owns the real property located at 6501 and 6525 Penn
Avenue South in the City of Richfield, Minnesota (the "City"); and
WHEREAS, JO Companies, LLC, a Minnesota limited liability company, or one of its
wholly owned affiliates (collectively, the "Redeveloper"), proposed to purchase the real property
located at 6501 Penn Avenue South and 6525 Penn Avenue South (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, on June 17, 2024, the Board of Commissioners of the Authority (the
"Board") approved a Preliminary Redevelopment Agreement (the "Preliminary 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, on July 9, 2024, the Board approved an Amendment to the Preliminary
Development Agreement (the "Amended Agreement") between the Authority and the
Redeveloper, which provided an updated valuation of the Redevelopment Property of
$1,500,000 and sets a total amount of financial assistance at no more than $1,485,000; and
WHEREAS, the Redeveloper has created an affiliate, Penn Station Apartments LLLP, a
limited liability limited partnership, for the development and is requesting that the Second
Amendment to the Preliminary Agreement (the "Second Amendment") be between the Authority
and Penn Station Apartments LLLP; and
WHEREAS, in order to obtain all necessary land use approvals and approval of a
Contract for Private Redevelopment with the Authority, the Redeveloper is requesting an
extension of the Amended Agreement deadline for six months to August 31, 2025; and
WHEREAS, as a condition of federal HOME funds that the Redeveloper has been
awarded, a Part 58 Environmental Review process is required, and language stating that the
agreement is subject to completion of the review and a determination of desirability of the
property for the project is required to be included in the Second Amendment; and
WHEREAS, the Board has reviewed the requests and finds that the Second Amendment
terms 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:
The Contract is hereby amended.
2. The Chair and Executive Director are hereby authorized to execute and deliver
any and all documents deemed necessary to carry out the intentions of this resolution and the
Contract.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 18th day of February, 2025.
Sean Hayford O eary, Secr taDy
RC125-399 (JAE)
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Erin llrie anie •, Chair
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