051925 HRAREGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
MAY 19, 2025
7:00 PM
Call to Order
Open Forum
Please refer to the HRA agenda and minutes web page for additional ways to submit comments.
Appr oval of t he M inut es
Approval of the minutes of the Regular Housing and Redevelopment Authority meeting of April 21, 2025.
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.Consideration of an amended resolution authorizing submittal of a grant application to Hennepin County for
environmental cleanup of contaminated soils and asbestos at 6501 and 6525 Penn Avenue South.
Staff Report No. 12
3.Consideration of items, if any, removed from Consent Calendar
PUBLIC HEARINGS
4.Public hearing and consideration of the adoption of a resolution authorizing the sale of Outlot A, Wexlers Second
Addition to Professional Dental Properties LLC.
Staff Report No. 13
OTHER BUSINESS
5.Consider a request for the settlement of a Transformation Loan issued to Kathleen Brogan and Mark Lauer at
6733 11th Avenue South.
Staff Report No. 14
HRA DISCUSSION ITEMS
6.HRA Discussion Items
EXECUTIVE DIRECTOR REPORT
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.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
April 21, 2025
Chair Vrieze Daniels called the meeting to order at 7:00 PM in the Council Chambers.
HRA Present: Erin Vrieze Daniels, Chair; Mary Supple; Sean Hayford Oleary; Gordon Hanson;
John Young
HRA Absent: None
Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant Community
Development Director; Michelle Friedrich, City Clerk
OPEN FORUM
Chair Vrieze Daniels gave instructions on how to participate in the open forum. No residents participated in
the open forum opportunity.
APPROVAL OF THE MINUTES
MOTION: made by Hanson, seconded by Supple to approve the minutes of the Regular Housing and
Redevelopment Authority meeting of March 17, 2025, as presented.
Motion carried: 5-0
ITEM #1 APPROVAL OF THE AGENDA
MOTION: made by Hayford Oleary, seconded by Young to approve the agenda of April 21, 2025.
Motion carried: 5-0
ITEM #2 CONSENT CALENDAR
Executive Director Poehlman presented the consent calendar item.
A. Consideration of an amended Contract for Private Redevelopment with Hempel Real Estate
providing financial assistance toward the acquisition and preservation of three affordable rental
communities. Staff Report No. 10.
HRA RESOLUTION NO. 1504 APPROVING THE EXECUTION AND DELIVERY OF AMENDED
CONTRACTS FOR PRIVATE DEVELOPMENT AND DECLARATION OF RESTRICIVE
CONVENANTS WITH OWNER OF NEW ORLEANS COURT LOCATED AT 50 WEST 78TH
STREET
CALL TO ORDER
HRA Meeting Minutes April 21, 2025
MOTION: made by Hayford Oleary, seconded by Supple to approve Consent Calendar as presented.
Motion carried: 5-0
ITEM
#3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
No consent calendar items were pulled for review.
ITEM #4
CONSIDERATION OF A RESOLUTION AUTHORIZING THE SUBMITTAL OF
TWO GRANT APPLICATIONS FOR ENVIRONMENTAL CLEANUP OF
CONTAMINATED SOILS AND ASBESTOS AT 6501 AND 6525 PENN AVENUE
SOUTH
Executive Director Poehlman noted the Housing and Redevelopment Authority (HRA) approved a
preliminary development agreement with JO Companies (Developer) for the redevelopment of city-owned
properties at 6501 and 6525 Penn Avenue South. Executive Director Poehlman reviewed plans to build 42
units of affordable multifamily housing, and explained the initial environmental investigations revealed
petroleum-contaminated soils from previous auto-related uses, and significant asbestos in the existing
building at 6525 Penn Avenue South. Executive Director Poehlman reviewed the developer is looking for
grant assistance to fund the remediation. The Developer will apply for an Environmental Response Fund
grant from Hennepin County and has requested the HRA apply to the Metropolitan Council for a Tax Base
Revitalization Account grant, each application potentially covering up to the full cost in case of overruns.
Executive Director Poehlman noted although such items are typically placed on the consent calendar, this
project was presented publicly to update the board on its progress. Executive Director Poehlman noted the
final development and land use approvals are still required and are currently under review, with decisions
expected in the coming months. The HRA and staff discussed the tax-based revitalization account and if
there is a limit on how many properties the city can apply for. Staff Report No. 11.
HRA RESOLUTION NO. 1505 AUTHORIZING JO COMPANIES LLC TO APPLY FOR AN
ENVIRONMENTAL RESPONSE FUND CLEANUP GRANT FROM HENNEPIN COUNTY
MOTION: made by Hayford Oleary, seconded by Hanson to adopt a resolution authorizing JO Companies
LLC to Apply for an Environmental Response Fund Cleanup Grant From Hennepin County.
Motion carried: 5-0
HRA RESOLUTION NO. 1506 AUTHORIZING APPLICATION FOR THE TAX BASE
REVITALIZATION ACCOUNT ON BEHALF OF 6501-6525 PENN AVENUE SOUTH
MOTION: made by Hayford Oleary, seconded by Hanson to adopt a resolution authorizing the Housing
and Redevelopment Authority Application for the Tax Base Revitalization Account on Behalf of 6501-6525
Penn Avenue South.
Motion carried: 5-0
ITEM #5 HRA DISCUSSION ITEMS
Commissioner Hayford Oleary shared that City Council is reviewing the order of the agenda items, and
Council direction was to move the Approval of the Agenda immediately after the Pledge of Allegiance, and
once City Council has formally accepted the change, an update to the HRA and EDA agenda could be
included in a bylaws review.
HRA Meeting Minutes April 21, 2025
ITEM #6 EXECUTIVE DIRECTOR’S REPORT
Executive Director Poehlman indicated no items to report.
ITEM #7 CLAIMS
MOTION: made by Young, seconded by Supple that the following claims be approved:
U.S. BANK 4/21/2025
HRA Checks #37222-37231 $26,491.37
Section 8 Checks #136651-136727 $223,185.53
TOTAL $249,676.90
Motion carried: 5-0
ITEM #8 ADJOURNMENT
This meeting was adjourned by unanimous consent at 7:08
p.m. Date Approved: May 19, 2025
Erin Vrieze Daniels
HRA Chair
Michelle Friedrich Melissa Poehlman
City Clerk Executive Director
AGENDA SECTION: Consent Calendar
AGENDA ITEM # 2.A.
STAFF REPORT NO. 12
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
5/19/2025
Julie Urban, Asst. Community Development DirectorREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of an amended resolution authorizing submittal of a grant application to Hennepin
County for environmental cleanup of contaminated soils and asbestos at 6501 and 6525 Penn Avenue
South.
EXECUTIVE SUMMARY:
At its April meeting, the Housing and Redevelopment Authority (HRA) approved two resolutions authorizing
submittal of grants by JO Companies (Developer) to the Metropolitan Council and Hennepin County for
environmental clean-up at 6501 and 6525 Penn Avenue South in an amount up to $299,119. The final cost
estimate for the clean-up has increased, increasing the amount of grant funds being requested to a total of
$303,282. An amended resolution for the Hennepin County Environmental Response Fund (ERF)
grant should be approved to clarify the amount requested. The final requests from each funding
source are as follows:
Hennepin County Environmental Response Fund (ERF): $150,191
Metropolitan Council Tax Base Revitalization Account (TBRA): $153,091
The original resolution for the TBRA grant does not require an amendment.
RECOMMENDED ACTION:
By Motion: Approve a resolution authorizing submittal of an application by JO Companies for
a Hennepin County Environmental Response Fund grant for environmental cleanup of
contaminated soils and hazardous building materials at 6501-6525 Penn Avenue South.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The HRA purchased 6501 Penn Avenue South in 2018 and the tax-forfeited property at 6525 Penn
Avenue South in 2024. The HRA approved a Preliminary Development Agreement with the Developer
in June of 2024 (revised in July and extended in February 2025).
Phase I and Phase II Environmental Surveys for 6501 Penn Avenue South in 2018-2019 identified soil
contamination from previous auto uses.
The buildings at 6501 Penn Avenue South were demolished in 2022. Contaminated soils were not
cleaned up at the time with the intention of having remediation occur at the same time as redevelopment
activity.
The HRA authorized an application for grant funding in February 2025 for additional environmental
investigation work. The results of the investigation have defined the amount and location of
Melissa Poehlman, Executive Director
5/13/2025
contaminated soil and identified asbestos in the 6525 Penn Avenue South building.
On April 21, the HRA approved a resolution in support of grant applications for environmental clean-up
funds in a total amount up to $299,119.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Redevelopment of the property provides an opportunity to further goals of the Strategic Plan, including
diversifying the tax base and maintaining Richfield as an affordable place to live.
Climate resilience is also a desired outcome of the Strategic Plan, and environmental cleanup of
contaminated sites can further this goal.
The proposed development will help to reduce racial inequities and barriers for traditionally excluded
groups by providing housing stability through affordable housing, including 16 units affordable to
households earning less than 30% of the area median income and 12 three- and four-bedroom units to
serve families with children with low incomes.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
It is the HRA's policy to seek outside funding when possible to support redevelopment that may further
community goals.
The Metropolitan Council Livable Communities Act (LCA) funding programs require either a city or its
housing and redevelopment authority to be the applicant and administrator of the funds. Hennepin
County allows a developer to be the applicant but requires a resolution of support from either the city or
in this case, the HRA as owner of the property.
D.CRITICAL TIMING ISSUES:
Both applications were due May 1, 2025. Hennepin County allows resolutions of support to be
submitted after the application is submitted. Funding will not be awarded without a resolution of support
from the HRA.
The Developer is working to complete work necessary to begin construction this Fall. An application for
land use approvals was submitted in April, and Planning Commission review is anticipated May 28 with
City Council consideration on June 10.
The HRA will also be asked to consider a full development agreement and hold a public hearing on the
sale of the land likely on June 16.
E.FINANCIAL IMPACT:
The Developer has requested a total of $303,282 from the two funding sources: $150,191 from ERF
and $153,091 from TBRA.
F.LEGAL CONSIDERATION:
One of the terms of the Preliminary Development Agreement is that the HRA will
cooperate with funding requests that help the development move forward.
ALTERNATIVE RECOMMENDATION(S):
Decide not to authorize the grant application to Hennepin County.
PRINCIPAL PARTIES EXPECTED AT MEETING:
NA
ATTACHMENTS:
Description Type
Resolution Resolution Letter
HRA RESOLUTION NO. 1507
RESOLUTION AUTHORIZING JO COMPANIES LLC TO APPLY FOR AN
ENVIRONMENTAL RESPONSE FUND CLEANUP GRANT FROM HENNEPIN
COUNTY
WHEREAS, JO Companies LLC (the “Developer”) is proposing to construct Penn
Station (the “Project”), a development containing 42 units of work force housing on
property owned by the City’s Housing and Redevelopment Authority (the “HRA”) located
at 6501 and 6525 Penn Avenue South (the “Property”); and
WHEREAS, the HRA conducted environmental testing on the Property that
indicates that some environmental contamination is present and needs to be
remediated; and
WHEREAS, on June 17, 2024, the HRA approved a Preliminary Development
Agreement (the “Agreement”) with the Developer to purchase the Property and develop
the Project; and
WHEREAS, the Developer is applying for an Environmental Response Fund
(ERF) cleanup grant from Hennepin County for $150,191 in funding (the “Program”);
and
WHEREAS, the Program’s application requires a resolution from the HRA as
owner of the Property; and
NOW, THEREFORE, BE IT RESOLVED
1.The HRA authorizes JO Companies LLC to apply for an Environmental
Response Fund cleanup grant from Hennepin County.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of May, 2025.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
AGENDA SECTION: PUBLIC HEARINGS
AGENDA ITEM # 4.
STAFF REPORT NO. 13
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
5/19/2025
Jan Youngquist, Economic Development ManagerREPORT PREPARED BY:
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
5/14/2025
ITEM FOR COUNCIL CONSIDERATION:
Public hearing and consideration of the adoption of a resolution authorizing the sale of Outlot A,
Wexlers Second Addition to Professional Dental Properties LLC.
EXECUTIVE SUMMARY:
The Housing and Redevelopment Authority (HRA) owns approximately 14,000 square feet of land known as
Outlot A, Wexlers Second Addition (Property) located at the southeast corner of Richfield Parkway and 66th
Street. The Property consists of remnant land from the Richfield Parkway roundabout project that was
completed in 2008. The City of Richfield (City) transferred the Property to the HRA after construction of the
roundabout. The Property is irregularly shaped and is not developable as a standalone parcel.
Prior to construction of the roundabout, the City entered into a Temporary Easement for
Construction and License Agreement for Parking (Agreement) with Professional Dental Properties
(PDP), the owner of the adjacent property at 1717 66th Street East. This Agreement provided the
City with access to PDP’s land during roadway construction and granted PDP an exclusive license
for parking on the Property for the Dental Health Care Center. The Temporary Easement expired on
September 30, 2007, but the License Agreement for Parking is still in effect.
In April 2024, Dr. John Woell from PDP contacted HRA staff to express an interest in purchasing the
Property. PDP has maintained and improved the Property with lawn, tree care, and irrigation for several
years and also has been paying taxes on the Property because the dental clinic parking lot constitutes a
private use of publicly owned land.
The Property has existing utilities that run through it and a portion of the Property consists of right of way for
18th Avenue South. In order to sell the Property, the HRA would need to grant easements to the City for
drainage, utilities, and roadway purposes. Additionally, there are utilities that run through a small portion of
PDP’s property that the City will need to access.
The Purchase Agreement for the Property includes a sales price of $67,000. The sale would be contingent
upon:
The HRA and PDP terminating the Temporary Easement for Construction and License Agreement for
Parking.
The HRA granting permanent roadway, drainage, and utility easements totaling 3,153 square feet to the
City prior to selling the Property to PDP.
PDP granting a 446 square foot easement on its property to the City for drainage and utilities.
RECOMMENDED ACTION:
Conduct and close a public hearing and by motion:
1.Approve the attached resolution authorizing the sale of Outlot A, Wexlers Second Addition to
Professional Dental Properties LLC.
2.Authorize execution of a Purchase Agreement between the Housing and Redevelopment
Authority and Professional Dental Properties LLC.
3.Authorize execution of an Agreement granting permanent roadway, drainage and utility
easements to the City of Richfield on Outlot A, Wexlers Second Addition.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The Property consists of 13,987 square feet of remnant land from the Richfield Parkway
roundabout project, which was platted as Outlot A, Wexlers Second Addition.
In June 2007, the City and PDP executed a Temporary Easement for Construction and
License Agreement for Parking, which allowed the City to utilize PDP's property for
construction, close the driveway access to 66th Street, and restore landscaping. The
Agreement also provided PDP with an exclusive license to use a portion of the City's
property for parking for the Dental Health Care Center.
The temporary Construction Easement expired on September 30, 2007, but the License Agreement for
Parking is still in effect.
After the roundabout project was complete, the City transferred the Property to the HRA.
In April 2024, PDP contacted HRA staff to discuss its interest in purchasing the Property.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
With a desired outcome of a diversified tax base, the City's Strategic Plan includes an initiative of
creating a redevelopment plan for HRA-owned sites. An analysis of this site concluded that the parcel is
not developable on its own without acquisition of the adjacent parcel and displacement of a family-
owned business that has been in operations since 1971. Therefore, sale of the property to PDP is
consistent with the highest and best use for the site.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The 2040 Comprehensive Plan includes a goal to provide an economic climate that will encourage the
availability of quality goods, services, and employment for residents. PDP has provided dental services
and employment opportunities on the adjacent property for more than 50 years.
D.CRITICAL TIMING ISSUES:
Under the terms of the Purchase Agreement, closing on the property would occur no later than June 30,
2025.
E.FINANCIAL IMPACT:
The appraised value of the Property is $140,000. The Purchase Agreement includes a reduced purchase price
of $67,000 due to the following considerations:
The Property is not developable as a standalone parcel. The highest and best use of the Property is
assemblage with the adjacent commercial parcel owned by PDP.
The Property is subject to an encumbrance of a License Agreement that would need to be terminated.
The sale of the Property is contingent upon the HRA granting permanent roadway, drainage and utility
easements to the City prior to selling the Property to PDP, which adds an encumbrance to the Property.
The sale of the Property is also contingent upon PDP granting an easement for drainage and utilities to
the City at no cost on its adjacent property at 1717 66th Street East.
PDP has maintained and improved the Property with lawn, tree care, and irrigation for several years.
PDP has also been paying property taxes on the Property, since the parking lot for the dental clinic
constitutes a private use of publicly owned land. Hennepin County has assessed 2025 property taxes to
PDP based on an estimated market value of $63,000 for the Property.
F.LEGAL CONSIDERATION:
Notice of the public hearing was published in the Sun Current on May 8, 2025.
Minnesota Statute 469.029 requires the HRA to conduct a public hearing and approve the sale of any
HRA-owned property.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Direct staff to renegotiate the terms of the sale.
Do not approve the sale of land.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Dr. J ohn W oell from Professional Dental Properties L L C
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
P urchase A greement C ontract/A greement
Roadway D rainage and Utility E asements C ontract/A greement
L ocation Map B ackup Material
HRA RESOLUTION NO. 1508
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY KNOWN AS
OUTLOT A, WEXLERS SECOND ADDITION TO PROFESSIONAL DENTAL
PROPERTIES LLC
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) owns certain real property, being described as:
Outlot A, Wexlers Second Addition, according to the recorded plat
thereof, Hennepin County, Minnesota
WHEREAS, the HRA is authorized to sell real property within its area of
operation after a public hearing; and
WHEREAS, the purchaser of the described property has been identified as
Professional Dental Properties LLC, and
WHEREAS, a public hearing has been held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota:
1.A public hearing has been held and Outlot A, Wexlers Second Addition is authorized
to be sold for $67,000 to Professional Dental Properties LLC; and
2.The Chairperson and Executive Director are authorized to execute a Purchase
Agreement and other agreements as required to effectuate the sale to the Bu yer.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of May, 2025.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
1
PURCHASE AGREEMENT
This Purchase Agreement (“Agreement”) is made this day of _______, 2025, by and
between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a
public body and politic under the laws of the State of Minnesota (“Seller”) and Professional Dental
Properties LLC, a limited liability company (“Buyer”).
1.PROPERTY. Seller is the owner of property located at Outlot A Wexlers Second
Addition, in the City of Richfield, Minnesota, which is legally described on the attached Exhibit
A (“Property”).
2.OFFER/ACCEPTANCE. In consideration of and subject to the terms and provisions of
this Agreement, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to
Buyer the exclusive right to purchase the Property and all improvements thereon, together with all
appurtenances. All fixtures located on the Property on the date of this Agreement are included in
the purchase of the Property.
3.PURCHASE PRICE FOR PROPERTY AND TERMS.
a.PURCHASE PRICE: The total purchase price for the Property is: Sixty-Seven
Thousand Dollars $67,000.00 (“Purchase Price”).
b.TERMS:
1.EARNEST MONEY: The sum of $1,000 Thousand Dollars ($1,000.00)
earnest money shall be paid by Buyer to Seller (“Earnest Money”) upon
execution of this Agreement. The Earnest Money is nonrefundable, subject
to Sections 14 and 15 hereof.
2.BALANCE DUE SELLER: Buyer agrees to pay by check or wire transfer
on the Closing Date (as hereinafter defined) any remaining balance due on
the Purchase Price according to the terms of this Agreement.
3.DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller
agrees to execute and deliver a Quit Claim conveying marketable fee simple
title to the Property to Buyer, free and clear of any mortgages, liens or
encumbrances other than matters created by or acceptable to Buyer, subject
only to the exceptions (the “Permitted Exceptions”) provided in Schedule
B-II of the title commitment issued to the Seller by Guaranty Commercial
Title on _______________, 2025 and provided to the Buyer (the “Title
Commitment”), which Schedule B-II is attached hereto as Exhibit B.
4.DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In addition to the
Quit Claim required at Section 3.b.3. above, Seller shall deliver to Buyer on the Closing Date:
a.An affidavit from Seller sufficient to remove any exceptions in Buyer’s policy of
2
title insurance for mechanics’ and materialmens’ liens and rights of parties in
possession;
b.A “bring-down” certificate, certifying that all of the warranties made by Seller in
this Agreement remain true as of the Closing Date;
c.Affidavit of Seller confirming that Seller is not a foreign person within the meaning
of Section 1445 of the Internal Revenue Code;
d.A statement that Seller does not know of any wells on the Property;
e.Any notices, certificates, and affidavits regarding any private sewage systems,
underground storage tanks, and environmental conditions as may be required by
state or federal statutes, rules or regulations;
f.An affidavit by Seller in form reasonably acceptable to the Buyer, certifying that
there are no purchase agreements, options, or other interests in the Property
currently in effect with any third parties, except as disclosed in the Title
Commitment; and
g.Any other documents reasonably required by Buyer’s title insurance company or
attorney to evidence that title to the Property is marketable and that Seller has
complied with the terms of this Purchase Agreement.
In addition, on the Closing Date, the Seller and Buyer will execute and record a termination for
the following _____________________________________________________.
5.TITLE EXAMINATION/CURING TITLE DEFECTS. Seller has obtained and
delivered to Buyer the Title Commitment for the Property. Buyer has examined the same and
hereby waives any objections to title based on the Title Commitment. Buyer reserves the right to
object to any encumbrances to title that arise between the date of this Purchase Agreement and the
Closing Date.
6.ENVIRONMENTAL INVESTIGATIONS. Buyer acknowledges that it is purchasing
the Property AS-IS.
7.REAL ESTATE TAXES AND SPECIAL ASSESSMENTS . Buyer shall pay all real
estate taxes, interest and penalties, if any, relating to the Property for the years prior to the year of
closing. Provided that this transaction shall close as provided herein, Buyer agrees to pay taxes
for the year of closing and all taxes for years thereafter. Buyer shall assume all special assessments
regarding the Property which are levied or pending as of the Closing Date, including portions
which would otherwise have been payable in future installments.
8.PARKING. The parties agree that by terminating the Temporary Easement for
Construction and License Agreement for Parking (“License Agreement”), dated June 5, 2007 that
there will be no takings claim made as referenced in Section 4 of the License Agreement. The
property the Buyer is acquiring includes the parking lot that is licensed so the Buyer will not lose
3
any of its parking.
9.CLOSING DATE. The date of closing shall be no later than June 30, 2025 (“Closing
Date”). Delivery of all papers and the closing shall be made at Richfield Municipal Center or a
location as is mutually agreed upon by the parties. All deliveries and notices to Buyer shall be
made as provided in Section 18 of this Agreement.
10.POSSESSION/UTILITIES.
a.Possession. Seller agrees to deliver possession of the Property to Buyer not later
than the Closing Date, in its “AS-IS” condition, with no obligation to remove any
personal property, junk, or debris.
b.Utilities. Seller shall pay all utility charges, if any, prior to the Closing Date.
11.SELLER’ WARRANTIES. Seller hereby represents and warrants to Buyer and Seller
will represent and warrant to Buyer as of the Closing Date that:
a.Mechanics' Liens. Seller warrants that, prior to the closing, Seller shall pay in full
all amounts due for labor, materials, machinery, fixtures or tools furnished within
the 120 days immediately preceding the closing in connection with construction,
alteration or repair of any structure upon or improvement to the Property caused by
or resulting from any action of Seller.
b.Notices. Seller warrants that Seller has not received any notice from any
governmental authority as to violation of any law, ordinance or regulation in
connection with the Property.
c.Tenants. Seller warrants that that there are no tenants or third parties in possession
of the Property.
d.Broker Commission. Seller has not utilized the services of any real estate broker,
in connection with the transaction contemplated by this Purchase Agreement, and
that no broker, agent, or representative has been engaged or shall be entitled to any
commission in connection with such transaction. Seller agrees to indemnify,
defend and hold Buyer harmless from the claims of any broker, real estate agent or
similar party claiming through Seller.
e.Legal Proceedings. To the best of Seller’s knowledge, other than as disclosed to
Buyer, there are no legal actions, suits or other legal or administrative proceedings,
pending or threatened, that affect the Property or any portion thereof, and Seller has
no knowledge that any such action is presently contemplated.
f.Legal Capacity. Seller has the legal capacity to enter into this Agreement. Seller
has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year
under the United States Bankruptcy Code, nor has any petition for bankruptcy or
4
receivership been filed against Seller within the last year.
g.Methamphetamine Production. To the best of Seller’ knowledge,
methamphetamine production has not occurred on the Property.
Seller’ representations and warranties set forth in this paragraph shall be continuing and are
deemed to be material to Buyer’s execution of this Agreement and Buyer’s performance of its
obligations hereunder. All such representations and warranties shall be true and correct on or as
of the Closing Date with the same force and effect as if made at that time; and all of such
representations and warranties shall survive closing, and shall not be affected by any investigation,
verification or approval by any part hereto or by anyone on behalf of any party hereto. Any claim
by Buyer against Seller for a breach of this Section 1 0 shall be deemed waived if not asserted by
Buyer within sixty (60) days of Closing.
BUYER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE PROVIDED
HEREIN, HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY AND
REVIEW AVAILABLE INFORMATION AND DOCUMENTATION AFFECTING THE
PROPERTY, BUYER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE
PROPERTY AND REVIEW OF SUCH INFORMATION AND DOCUMENTATION. BUYER
ACKNOWLEDGES AND AGREES THAT NO REPRESENTATIONS OR STATEMENTS
HAVE BEEN MADE BY SELLER IN ORDER TO INDUCE BUYER TO ENTER INTO THIS
TRANSACTION OTHER THAN AS EXPRESSLY STATED HEREIN, BUYER HAS NOT
RELIED UPON ANY REPRESENTATIONS OR STATEMENTS OTHER THAN AS
EXPRESSLY STATED HEREIN, AND BUYER FURTHER ACKNOWLEDGES AND
AGREES THAT, EXCEPT AS EXPRESSLY PROVIDED HEREIN, THE SALE OF THE
PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN “AS-IS, WHERE IS”
CONDITION AND BASIS WITH ALL FAULTS AND CONDITIONS (ENVIRONMENTAL
AND ALL OTHER), AND THAT SELLER HAS NO OBLIGATION TO MAKE ANY
REMEDIATION, REPAIRS, REPLACEMENTS OR IMPROVEMENTS WHATSOEVER.
12.EASEMENTS. This Agreement is contingent upon two easements being granted. The
HRA will grant a roadway, drainage, and utility easement to the City of Richfield (“City”) on the
Property prior to closing, as shown in Exhibit C. The Buyer will grant a drainage and utility
easement to the City on adjacent property located at 1717 66th Street East, as shown in Exhibit D.
13.CLOSING COSTS/RECORDING FEES/DEED TAX. Seller shall pay: (a) the cost of
any documents required to clear title or to evidence marketable title, to the extent required by this
Purchase Agreement; (b) costs of the Title Commitment and any title search and examination fees;
(c)the state deed tax; and (d) any other operating costs of the Property up to the Closing Date.
Buyer shall pay: (a) any environmental investigation costs; (b) costs of title insurance and
endorsements; and (c) closing fees customarily charged by the title company. Each party shall pay
its respective real estate broker and attorneys’ fees.
14.INSPECTIONS. Buyer, its employees and agents, shall be entitled to a general
walkthrough inspection within two days of the Closing Date.
5
15.RISK OF LOSS. If there is any loss or damage to the Property between the date hereof
and the Closing Date, for any reason including fire, vandalism, flood, earthquake or act of God,
the risk of loss shall be on Seller. If the Property is destroyed or substantially damaged before the
Closing Date, this Purchase Agreement shall become null and void, at Buyer’s option. At the
request of Buyer, Seller agrees to sign a cancellation of Purchase Agreement and to return Buyer’s
Earnest Money.
16.DEFAULT/REMEDIES. If Buyer defaults under this Purchase Agreement, Seller has
the right to terminate this Purchase Agreement by giving written notice of such election to Buyer,
which notice shall specify the default. If Buyer fails to cure such default within 5 days of the date
of such notice, Seller shall terminate this Purchase Agreement and may retain the Earnest Money
as Seller’s liquidated damages, time being of the essence of this Purchase Agreement. The
termination of this Purchase Agreement (and retention of the Earnest Money) will be the sole
remedies available to Seller for such default by Buyer, and Buyer will not be further liable for
damages. If Seller defaults under this Purchase Agreement, Buyer shall have the right (i) to
terminate this Purchase Agreement (in which case Buyer shall be entitled to a refund of the Earnest
Money), or (ii) to enforce and recover from Seller specific performance of this Purchase
Agreement. The termination of this Purchase Agreement (and refund of the Earnest Money), or
the enforcement and recovery from Seller of specific performance of this Purchase Agreement,
shall be the sole remedies available to Buyer for such default by Seller, and Seller shall not be
further liable for damages.
17.RELOCATION BENEFITS; INDEMNIFICATION. Seller acknowledges that it is not
being displaced from the Property as a result of the transaction contemplated by this Purchase
Agreement and that it is not eligible for relocation assistance and benefits or in the event that Seller
is eligible for relocation assistance and benefits, that the Purchase Price includes compensation for
any and all relocation assistance and benefits for which Seller may be eligible. The provisions of
this paragraph shall survive closing of the transaction contemplated by this Purchase Agreement.
18.NOTICE. Any notice, demand, request or other communication which may or shall be
given or served by the parties, shall be deemed to have been given or served on the date the same
is personally served upon one of the following indicated recipients for notices or is deposited in
the United States Mail, registered or certified, return receipt requested, postage prepaid and
addressed as follows:
SELLER: Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota
6700 Portland Avenue
Richfield MN 55423
Email: JYoungquist@richfieldmn.gov
BUYER: Professional Dental Properties LLC, a limited liability company
1717 East 66th Street
Richfield, MN 55423-2722
Email: woe11002@frontiernet.net
6
19.ENTIRE AGREEMENT. This Purchase Agreement, including exhibits attached hereto,
and any amendments hereto signed by the parties, shall constitute the entire agreement between
Seller and Buyer and supersedes any other written or oral agreements between the parties relating
to the Property. This Purchase Agreement can be modified only in a writing properly signed on
behalf of Seller and Buyer or their respective successors or assigns.
20.SURVIVAL. Notwithstanding any other provisions of law or court decision to the
contrary, the provisions of this Purchase Agreement shall survive closing.
21.BINDING EFFECT. This Agreement binds and benefits the parties and their successors
and assigns.
(the remainder of this page intentionally left blank)
7
IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date
and year above.
Buyer:
Professional Dental Properties LLC, a limited
liability company
By: ________________________________
John M. Woell,
Its: Managing Member
By: ________________________________
Marcia M. Woell
Its: Member
Seller:
Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota, a public
body politic under the laws of the State of
Minnesota
By: ________________________________
Erin Vries Daniels
Its: Chair
By: ________________________________
Melissa Poehlman
Its: Executive Director
THIS INSTRUMENT DRAFTED BY:
Kutak Rock LLP
Suite 700, Fifth Street Towers
150 South Fifth Street
Minneapolis, MN 55402
(612) 334-5013
A-1
EXHIBIT A
Legal Description of Property
Outlot A, Wexlers Second Addition, according to the recorded plat thereof, Hennepin
County, Minnesota.
(Abstract and Torrens)
Note: The Torrens portion being more particularly described on Certificate of Title
1466055 as follows: That part of Outlot A, Wexlers Second Addition, embraced within
Lot 16, Block 2, Wexler's Addition.
B-1
EXHIBIT B
Schedule B-II of Title Commitment
C-1
EXHIBIT C
PERMANENT ROADWAY, DRAINAGE AND UTILITY EASEMENTS
THIS INSTRUMENT is made by the Housing and Redevelopment Authority in and
for the City of Richfield, a Minnesota public body corporate and politic, “Grantor”, in favor of
the City of Richfield, a Minnesota municipal corporation, Grantee (the “City”).
Recitals
A.Grantor is the fee owner of certain real property located in the City of Richfield, Hennepin
County, Minnesota (PID Nos. 2602824410110, 2602824410115) and legally described as
follows:
Outlot A, Wexlers Second Addition, Hennepin County, Minnesota
(the “Property”).
B.Grantor desires to grant perpetual, non-exclusive, roadway, drainage, and utility easements to
the City according to the terms and conditions contained herein.
Terms of Easement
1.Recitals. The recitals above are hereby incorporated and made part of this Instrument.
2.Grant of Easements. For good and valuable consideration, receipt of which is acknowledged
by Grantor, Grantor grants and conveys to the City a permanent, non-exclusive easement for
drainage and utility purposes, and a permanent, non-exclusive easement for drainage, utility, and
roadway purposes over, under, across, and through that part of the Property all as described on the
attached Exhibit A and depicted on the attached Exhibit B (the “Drainage and Utility Easement
Areas”, the “Roadway, Drainage, and Utility Easement Area” and collectively, the “Easement
Areas”).
2.Scope of Easements. The permanent drainage and utility easement granted herein includes
the right of the City, its contractors, agents, and employees to enter the Drainage and Utility
Easement Areas at all reasonable times for the purpose of locating, constructing, reconstructing,
operating, maintaining, inspecting, altering, and repairing the utilities, drainage ways and
stormwater facilities over, under, across, and through the Drainage and Utility Easement Areas.
The permanent roadway, drainage, and utility easement granted herein includes the right
of the City, its contractors, agents, and employees to enter the Roadway, Drainage, and Utility
Easement Area at all reasonable times for the purposes of locating, operating, maintaining,
improving, inspecting, altering, and repairing roadway, drainage, and utility improvements, or
other public facilities or improvements of any type that are not inconsistent with use as a public
right-of-way, within the Roadway, Drainage, and Utility Easement Area.
C-2
The easements granted herein also include the right to cut, trim, or remove from the
Easement Areas such improvements, trees, shrubs, or other vegetation, and to prohibit obstructions
and grading alterations as in the City’s judgment unreasonably interfere with the easements or the
function of the facilities located therein.
3.Warranty of Title. Grantor warrants it is the owner of the Property and has the right, title
and capacity to convey to the City the easements herein.
4.Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorneys’ fees, or losses
resulting from any claims, actions, suits, or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the Easement Areas or Property prior to the date of this Instrument.
5.Binding Effect. The terms and conditions of this Instrument shall run with the land and be
binding on Grantor, its successors and assigns.
STATE DEED TAX DUE HEREON: NONE
C-3
Dated this ____ day of ___________, 2025.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
By:
Name: Erin Vrieze Daniels
Its: Chair
By:
Name: Melissa Poehlman
Its: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____ day of ______, 2025,
by Erin Vrieze Daniels and Melissa Poehlman, the Chair and Executive Director, respectively, of
the Housing and Redevelopment Authority in and for the City of Richfield, a Minnesota public
body corporate and politic, on behalf of the body corporate and politic as Grantor.
______________________________
NOTARY STAMP OR SEAL Notary Public
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Suite 700, Fifth Street Towers
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
C-4
EXHIBIT A
Legal Description of Easement Areas
A 10.00 foot wide perpetual easement for drainage and utility purposes over, under and across that
part of Outlot A, WEXLERS SECOND ADDITION, according to the recorded plat thereof,
Hennepin County, Minnesota, lying southeasterly, easterly, and northeasterly of, as measured at a
right angle, a line described as follows:
Beginning at the most northerly corner of said Outlot A; thence southwesterly,
southerly, and southeasterly along the westerly line of said Outlot A, also being the
easterly right-of-way line of Richfield Parkway, as delineated and dedicated, in said
WEXLERS SECOND ADDITION, a distance of 118.74 feet to a point hereinafter
referred to as Point A, and said line there terminating.
Together with a 5.00 foot wide perpetual easement for drainage and utility purposes over, under
and across that part of Outlot A, WEXLERS SECOND ADDITION, according to the recorded
plat thereof, Hennepin County, Minnesota, lying northeasterly of, as measured at a right angle, a
line described as follows:
Beginning at the aforementioned Point A; thence southeasterly along the westerly
and southwesterly line of said Outlot A, also being the easterly right-of-way line of
Richfield Parkway, as delineated and dedicated, in said WEXLERS SECOND
ADDITION, to the most southerly corner of said Outlot A, and said line there
terminating.
Together with a 10.00 foot wide perpetual easement for drainage and utility purposes over,
under and across that part of Outlot A, WEXLERS SECOND ADDITION, according to
the recorded plat thereof, Hennepin County, Minnesota. The centerline of said easement is
described as follows:
Commencing at the most northerly corner of said Outlot A; thence on an assumed
bearing of South 00 degrees 06 minutes 45 seconds East along the east line of said
Outlot A, a distance of 100.32 feet; thence North 74 degrees 45 minutes 35 seconds
West, a distance of 20.34 feet to the point of beginning of the centerline to be
described; thence continuing North 74 degrees 45 minutes 35 seconds West, a
distance of 20.94 feet to the westerly line of said Outlot A, and said centerline there
terminating.
Together with a perpetual easement for roadway, drainage and utility purposes over, under
and across that part of Outlot A, WEXLERS SECOND ADDITION, according to the
recorded plat thereof, Hennepin County, Minnesota, lying southerly of a line described as
follows and its extensions:
Commencing at the most southerly corner of said Outlot A; thence North 00 degrees
06 minutes 45 seconds West along the most easterly line of said Outlot A, a distance
C-5
of 45.54 feet to the point of beginning of the line to be described; thence South 89
degrees 55 minutes 57 seconds West, a distance of 62.14 feet to the southwesterly
line of said Outlot A, and said line there terminating.
C-6
EXHIBIT B
Depiction of Easement Area
D-1
EXHIBIT D
DRAINAGE AND UTILITY EASEMENT
THIS INSTRUMENT is made by Professional Dental Properties, LLC, a Minnesota
limited liability company, “Grantor”, in favor of the City of Richfield, a Minnesota municipal
corporation, Grantee (the “City”).
Recitals
B. Grantor is the fee owner of certain real property located at 1717 66th Street E., Richfield,
Hennepin County, Minnesota (PID No. 2602824410108) and legally described as follows:
Lot 1, Block 2, Wexler’s Addition, according to the recorded plat thereof,
Hennepin County, Minnesota
(the “Property”).
B. Grantor has agreed to grant a drainage and utility easement to the City according to the terms
and conditions contained herein.
Terms of Easement
3. Recitals. The recitals above are hereby incorporated and made part of this Instrument.
4. Grant of Easement. For good and valuable consideration, receipt of which is acknowledged
by Grantor, Grantor grants and conveys to the City a permanent, non-exclusive easement for
drainage and utility purposes over, under, across, and through that part of the Property described
on the attached Exhibit A and depicted on the attached Exhibit B (the “Easement Area”).
2. Scope of Easement. The permanent drainage and utility easement granted herein includes
the right of the City, its contractors, agents, and employees to enter the premises at all reasonable
times for the purpose of locating, constructing, reconstructing, operating, maintaining, inspecting,
altering, and repairing the utilities, drainage ways and stormwater facilities over, under, across,
and through the Easement Areas.
The easement granted herein also includes the right to cut, trim, or remove from the
Easement Area such improvements, trees, shrubs, or other vegetation, and to prohibit obstructions
and grading alterations as in the City’s judgment unreasonably interfere with the easement or the
function of the facilities located therein.
D-2
3. Warranty of Title. Grantor warrants it is the owner of the Property and has the right, title
and capacity to convey to the City the easement herein.
4. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorneys’ fees, or losses
resulting from any claims, actions, suits, or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the Easement Area or Property prior to the date of this Instrument.
5. Binding Effect. The terms and conditions of this Instrument shall run with the land and be
binding on Grantor, its successors and assigns.
STATE DEED TAX DUE HEREON: NONE
D-3
Dated this ____ day of May, 2025.
PROFESSIONAL DENTAL PROPERTIES, LLC
By:
Name: John M. Woell
Its: Managing Member
By:
Name: Marcia M. Woell
Its: Member
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____ day of ______, 2025,
by John M. Woell and Marcia M. Woell, the Managing Member and Member, respectively, of
Professional Dental Properties, LLC, a Minnesota limited liability company, on behalf of the
company as Grantor.
______________________________
NOTARY STAMP OR SEAL Notary Public
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Suite 700, Fifth Street Towers
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
D-4
EXHIBIT A
Legal Description of Easement Area
A perpetual easement for drainage and utility purposes over, under and across that part of Lot 1,
Block 2, Wexler’s Addition, according to the recorded plat thereof, Hennepin County,
Minnesota, described as follows:
Beginning at the northwest corner of said Lot 1; thence on an assumed bearing of
South 00 degrees 06 minutes 45 seconds East along the west line of said Lot 1, a
distance of 18.00 feet; thence North 46 degrees 34 minutes 19 seconds East, a
distance of 9.00 feet; thence North 80 degrees 35 minutes 10 seconds East, a
distance of 42.00 feet; thence North 00 degrees 04 minutes 03 seconds West, a
distance of 5.00 feet to the north line of said Lot 1; thence South 89 degrees 55
minutes 57 seconds West, a distance of 48.00 feet to said point of beginning.
D-5
EXHIBIT B
Depiction of Easement Area
1
DOCSOPEN\RC160\5\1002066.v1-1/16/25
PERMANENT ROADWAY, DRAINAGE AND UTILITY EASEMENTS
THIS INSTRUMENT is made by the Housing and Redevelopment Authority in and for the
City of Richfield, a Minnesota public body corporate and politic, “Grantor”, in favor of the City of
Richfield, a Minnesota municipal corporation, Grantee (the “City”).
Recitals
A. Grantor is the fee owner of certain real property located in the City of Richfield, Hennepin
County, Minnesota (PID Nos. 2602824410110, 2602824410115) and legally described as
follows:
Outlot A, Wexlers Second Addition, Hennepin County, Minnesota
(the “Property”).
B. Grantor desires to grant perpetual, non-exclusive, roadway, drainage, and utility easements to
the City according to the terms and conditions contained herein.
Terms of Easement
1. Recitals. The recitals above are hereby incorporated and made part of this Instrument.
2. Grant of Easements. For good and valuable consideration, receipt of which is acknowledged
by Grantor, Grantor grants and conveys to the City a permanent, non-exclusive easement for
drainage and utility purposes, and a permanent, non-exclusive easement for drainage, utility, and
roadway purposes over, under, across, and through that part of the Property all as described on the
attached Exhibit A and depicted on the attached Exhibit B (the “Drainage and Utility Easement
Areas”, the “Roadway, Drainage, and Utility Easement Area” and collectively, the “Easement
Areas”).
2. Scope of Easements. The permanent drainage and utility easement granted herein includes
the right of the City, its contractors, agents, and employees to enter the Drainage and Utility
Easement Areas at all reasonable times for the purpose of locating, constructing, reconstructing,
operating, maintaining, inspecting, altering, and repairing the utilities, drainage ways and
DOCSOPEN\RC160\5\1002066.v1-1/16/25 2
stormwater facilities over, under, across, and through the Drainage and Utility Easement Areas.
The permanent roadway, drainage, and utility easement granted herein includes the right
of the City, its contractors, agents, and employees to enter the Roadway, Drainage, and Utility
Easement Area at all reasonable times for the purposes of locating, operating, maintaining,
improving, inspecting, altering, and repairing roadway, drainage, and utility improvements, or
other public facilities or improvements of any type that are not inconsistent with use as a public
right-of-way, within the Roadway, Drainage, and Utility Easement Area.
The easements granted herein also include the right to cut, trim, or remove from the
Easement Areas such improvements, trees, shrubs, or other vegetation, and to prohibit obstructions
and grading alterations as in the City’s judgment unreasonably interfere with the easements or the
function of the facilities located therein.
3. Warranty of Title. Grantor warrants it is the owner of the Property and has the right, title
and capacity to convey to the City the easements herein.
4. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorneys’ fees, or losses
resulting from any claims, actions, suits, or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the Easement Areas or Property prior to the date of this Instrument.
5. Binding Effect. The terms and conditions of this Instrument shall run with the land and be
binding on Grantor, its successors and assigns.
STATE DEED TAX DUE HEREON: NONE
DOCSOPEN\RC160\5\1002066.v1-1/16/25 3
Dated this ____ day of ___________, 2025.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
By:
Name: Erin Vrieze Daniels
Its: Chair
By:
Name: Melissa Poehlman
Its: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____ day of ______, 2025,
by Erin Vrieze Daniels and Melissa Poehlman, the Chair and Executive Director, respectively, of
the Housing and Redevelopment Authority in and for the City of Richfield, a Minnesota public
body corporate and politic, on behalf of the body corporate and politic as Grantor.
______________________________
NOTARY STAMP OR SEAL Notary Public
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Suite 700, Fifth Street Towers
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
A-1
DOCSOPEN\RC160\5\1002066.v1-1/16/25
EXHIBIT A
Legal Description of Easement Areas
A 10.00 foot wide perpetual easement for drainage and utility purposes over, under and across that part
of Outlot A, WEXLERS SECOND ADDITION, according to the recorded plat thereof, Hennepin
County, Minnesota, lying southeasterly, easterly, and northeasterly of, as measured at a right angle, a
line described as follows:
Beginning at the most northerly corner of said Outlot A; thence southwesterly, southerly,
and southeasterly along the westerly line of said Outlot A, also being the easterly right-
of-way line of Richfield Parkway, as delineated and dedicated, in said WEXLERS
SECOND ADDITION, a distance of 118.74 feet to a point hereinafter referred to as Point
A, and said line there terminating.
Together with a 5.00 foot wide perpetual easement for drainage and utility purposes over, under and
across that part of Outlot A, WEXLERS SECOND ADDITION, according to the recorded plat thereof,
Hennepin County, Minnesota, lying northeasterly of, as measured at a right angle, a line described as
follows:
Beginning at the aforementioned Point A; thence southeasterly along the westerly and
southwesterly line of said Outlot A, also being the easterly right-of-way line of Richfield
Parkway, as delineated and dedicated, in said WEXLERS SECOND ADDITION, to the
most southerly corner of said Outlot A, and said line there terminating.
Together with a 10.00 foot wide perpetual easement for drainage and utility purposes over, under
and across that part of Outlot A, WEXLERS SECOND ADDITION, according to the recorded
plat thereof, Hennepin County, Minnesota. The centerline of said easement is described as
follows:
Commencing at the most northerly corner of said Outlot A; thence on an assumed bearing
of South 00 degrees 06 minutes 45 seconds East along the east line of said Outlot A, a
distance of 100.32 feet; thence North 74 degrees 45 minutes 35 seconds West, a distance
of 20.34 feet to the point of beginning of the centerline to be described; thence continuing
North 74 degrees 45 minutes 35 seconds West, a distance of 20.94 feet to the westerly
line of said Outlot A, and said centerline there terminating.
Together with a perpetual easement for roadway, drainage and utility purposes over, under and
across that part of Outlot A, WEXLERS SECOND ADDITION, according to the recorded plat
thereof, Hennepin County, Minnesota, lying southerly of a line described as follows and its
extensions:
Commencing at the most southerly corner of said Outlot A; thence North 00 degrees 06
minutes 45 seconds West along the most easterly line of said Outlot A, a distance of 45.54
feet to the point of beginning of the line to be described; thence South 89 degrees 55
minutes 57 seconds West, a distance of 62.14 feet to the southwesterly line of said Outlot
A, and said line there terminating.
B-1
DOCSOPEN\RC160\5\1002066.v1-1/16/25
EXHIBIT B
Depiction of Easement Area
Outlot A, Wexlers Second Addition
Location Map
Map Source: Hennepin County Poperty Map
Outlot A, Wexlers Second Addition
May 19, 2025
AGENDA SECTION: OTHER BUSINESS
AGENDA ITEM # 5.
STAFF REPORT NO. 14
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
5/19/2025
Celeste McDermott and Hilary Lovelace, Housing SpecialistsREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW: Melissa Poehlman, Executive Director
5/14/2025
ITEM FOR COUNCIL CONSIDERATION:
Consider a request for the settlement of a Transformation Loan issued to Kathleen Brogan and Mark
Lauer at 6733 11th Avenue South.
EXECUTIVE SUMMARY:
In 1996, Kathleen Brogan and Mark Lauer (Homeowners) received a Transformation Loan for $8,445 from
the Housing and Redevelopment Authority (HRA) to complete an addition on their home at 6733 11th Avenue
South. The loan forgiveness is date is July 23, 2026.
Mark Lauer passed away unexpectedly in 2014 and while Kathleen Brogan intended to stay in the home past
the forgiveness date, a recent medical diagnosis has made it necessary for her to move to more accessible
housing. If not for the change in medical needs, the Homeowner reports that she would have lived in
the home past the loan forgiveness date.
The Homeowner is requesting full forgiveness of her Transformation Loan in order to reserve her sale
proceeds and remaining funds for medical expenses in the face of unknown costs to accommodate
declining health.
The Executive Director has the authority to forgive loans in cases of financial hardship; however, the
anticipation of future expenses does not fit the criteria for Executive Director discretion. The expected sales
proceeds from the sale of the home would be sufficient to repay the HRA loan.
RECOMMENDED ACTION:
By Motion:
1. Approve full loan forgiveness of the $8,445 Transformation Loan issued to Kathleen Brogan and
Mark Lauer at 6733 11th Avenue South with the satisfaction to be provided upon the sale of the
home. OR
2. Require that Kathleen Brogan pay a settlement amount of $281.50, which would be the pro-rated
amount due with one year remaining on the Transformation Loan, at the time of the sale of the
home. OR
3. Do not approve the forgiveness request for Kathleen Brogan and Mark Lauer's Transformation
Loan.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
In 1996, the Homeowners received a Transformation Loan from the Richfield HRA in the amount of
$8,445. This loan helped to fund an addition to their home.
The maturity date for the loan is July 23, 2026.
Mark Lauer passed away unexpectedly in 2014 at age 56.
Recently, Kathleen Brogan was diagnosed with a progressive illness. Due to accessibility concerns and
limited homes available to meet her needs, she moved into an apartment building that could
accommodate her needs at the first availability.
The home was listed for sale on April 21st, as of the date of this staff report, not offer has been accepted
(May 13th). Estimated proceeds from the sale are $366,000.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The Homeowner is seeking full forgiveness of the loan because she requires more accessible housing
than her current home provides.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The Transformation Loan Program (Program) provides no-interest deferred loans to homeowners to
assist with the cost of large-scale home remodeling projects. Loans are due and payable upon the sale
of a home or when a home is no longer used as the primary residence. If neither of these conditions
occur, the loan is forgiven. Recent changes to the Program promote the construction of accessory
dwelling units, inclusion of energy efficient improvements, and including accessible features in the scope
of the project.
The entire loan amount is due and payable if the property is sold within the 30-year period, regardless of
the number of years remaining on the loan.
The Program is currently funded by Economic Development Authority (EDA) funds, but at the time the
loan was issued the Program was funded by HRA funds.
In November 2024, the HRA approved a policy that would allow the Executive Director to
administratively approve loan forgiveness if requests met certain criteria. The request for forgiveness
did not meet the designated criteria for administrative approval as the Homeowner has the money
available to pay off the loan after the sale of the home, so the request is being brought to the HRA.
D.CRITICAL TIMING ISSUES:
The home is currently listed for sale, and the Homeowner has already moved out.
E.FINANCIAL IMPACT:
The Program is currently funded by EDA funds, but at the time the loan was issued the
Program was funded by HRA funds. The full repayment of $8,445 would be returned to
the Rehabilitation Loan Fund, which is used to fund HRA housing programs.
There are sufficient sale proceeds from the sale of the home to repay the HRA loan.
F.LEGAL CONSIDERATION:
None.
ALTERNATIVE RECOMMENDATION(S):
There are no alternative recommendations; as the request for forgiveness did not meet the designated
criteria for administrative approval, staff cannot act on this request without guidance from the HRA.
PRINCIPAL PARTIES EXPECTED AT MEETING:
None (Homeowner is not able attend)
ATTACHMENTS:
Description Type
Letter from Homeowner Backup Material
Preliminary Settlement Estimate Backup Material