072125 HRAREGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
JULY 21, 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 June 16, 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 a resolution authorizing submittal of an application to the Metropolitan Council for a
Livable Communities Policy & Program Development grant.
Staff Report No. 19
3.Consideration of items, if any, removed from Consent Calendar
RESOLUTIONS
4.Consideration of the adoption of a resolution authorizing the purchase of 6804 14th Avenue South for future
development as a single-family home or duplex under the Richfield Rediscovered Program.
Staff Report No. 20
HRA DISCUSSION ITEMS
5.HRA Discussion Items
EXECUTIVE DIRECTOR REPORT
6.Executive Director's Report
CLAIMS
7.C laims
8.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.
HRA Meeting Minutes June 16, 2025
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HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 16, 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.
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 Supple, seconded by Hanson to approve the minutes of the Housing and
Redevelopment Authority work session and regular meeting Minutes of May 19, 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 as presented.
Motion carried: 5-0
ITEM #2 CONSENT CALENDAR
Executive Director Poehlman presented the consent calendar items.
A. Acceptance of the Housing Program Evaluation final report. Staff Report No. 15.
B. Consideration of the approval of Program Guidelines for the Woodlawn Terrace
Cooperative New Manufactured Home Purchase Progra m. Staff Report No. 16.
MOTION: made by Supple, seconded by Young, to approve the consent calendar as presented.
Motion carried: 5-0
CALL TO ORDER
HRA Meeting Minutes June 16, 2025
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ITEM #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR
None.
ITEM #4
PUBLIC HEARING CONSIDERATION OF A CONTRACT FOR PRIVATE
REDEVELOPMENT WITH PENN STATION APPARTMENTS LLLP AND SALE OF
LAND FOR THE DEVELOPMENT OF 42 UNITS OF AFFORDABLE HOUSING AT
6501-25 PENN AVENUE SOUTH
Assistant Community Development Director Urban presented Staff Report 17, outlining the proposed sale
of HRA-owned property to Penn Station Apartments LLLP for $1. Assistant Community Development
Director Urban explained that reducing the sale price of land to $1 preserves HRA Trust Fund resources
for other projects and avoids complications with tax increment financing (TIF) fund redistribution due to two
decertified districts.
Assistant Community Development Director Urban requested the final motion include authority of the
executive director and attorney to approve administrative, non-substantive details to final redevelopment
contract.
Chair Vrieze Daniels opened the public hearing to consider a contract for private redevelopment with Penn
Station Apartments LLLP and sale of land for the development of 42 units of affordable housing at 6501-25
Penn Avenue South. No residents participated in the public hearing.
MOTION: made by Vrieze Daniels, seconded by Hayford Oleary, to close the public hearing.
Motion carries: 5-0
HRA Commissioners asked for clarification of funds that would return to Hennepin County. HRA and staff
reviewed TIF district funding related to the project.
MOTION: made by Supple, seconded by Hayford Oleary to adopt a resolution Approving a Contract for
Private Redevelopment Agreement with Penn Station Apartments LLLP and authorize the Executive
Director and HRA Attorney to approve any administrative non-substantive changes to the contract, and
declaration of restrictive covenants, and authorize the chair and executive director to execute any
subordination agreements required by the principal lender or lenders.
HRA Commissioners expressed concern that the 100 percent residentially zoned project may undermine
the long-term vision for a vibrant, mixed-use Penn Avenue corridor and emphasized the site's central
location in the commercial district and noted past public support for preserving commercial activity.
HRA Commissioners noted the property presents development challenges due to its awkward layout,
limited depth, steep slope, and restrictive County access. HRA Commissioners added the commercial
potential is limited, without acquiring adjacent properties on Oliver Avenue. HRA Commissioners noted the
proposed, affordable housing project addresses a housing need and demonstrates a well-designed
building can fit and function on a difficult, one-acre site without major land consolidation.
RESOLUTION NO. 1509
RESOLUTION APPROVING A CONTRACT FOR PRIVATE REDEVELOPMENT
AGREEMENT WITH PENN STATION APARTMENTS LLLP AND AUTHORIZE THE EXECUTIVE
DIRECTOR AND ATTORNEY TO APPROVE ANY ADMINISTRATIVE NON -SUBSTANTIVE
CHANGES TO THE CONTRACT, AND DECLARATION OF RESTRICTIVE COVENANTS, AND
AUTHORIZE THE CHAIR AND EXECUTIVE DIRECTOR TO EXECUTE ANY SUBORDINATION
AGREEMENTS REQUIRED BY THE PRINCIPAL LENDER OR LENDERS.
HRA Meeting Minutes June 16, 2025
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Voting aye: Vrieze Daniels, Hayford Oleary, Supple, and Young Voting Nay: Hanson
Motion carried: 4-1
Nay vote referenced lack of support for the Penn Avenue corridor as a 100 percent residentially zoned
area. Commissioner Hanson added he would have supported the redevelopment of the property as mixed-
use zoning that included commercial.
ITEM #5 RESOLUTION FOR THE CONSIDERATION OF AUTHORIZING THE EXECUTIVE
DIRECTOR TO CHANGE DEFERRED LOANS TO A 15-YEAR TERM
Assistant Community Development Director Urban presented Staff Report No. 18 and outlined the
deferred loan program and how the loan forgiveness program has historically been funded.
Assistant Community Development Director Urban reviewed changes to the current program and
noted the 30-year repayment period to 15 -year repayment to kee p benefit of funds with
residents .
RESOLUTION NO. 1510
RESOLUTION CHANGING THE LOAN TERM OF DEFERRED LOAN TO FIFTEEN YEARS.
MOTION: made by Hayford Oleary, seconded by Hanson to adopt resolution changing the loan term of
deferred loans to fifteen years.
Motion carried: 5-0
ITEM #6 HRA DISCUSSION ITEMS
HRA Commissioners expressed appreciation of the State of Community event and noted the citizenry
within the city and the positive comments regarding the future of the City of Richfield.
ITEM #7 EXECUTIVE DIRECTOR REPORT
Executive Director Poehlman noted Trust Fund match of $150,000 from State of Minnesota, $303,000 in
TBRA funds from MET Council for Penn Project and future training on agenda management system.
Executive Director Poehlman noted the joint work session with Council on June 24 for the Lyndale Garden
site.
ITEM #8 CLAIMS
MOTION: made by Supple, seconded by Hanson, that the following claims be approved:
U.S. BANK 6/16/2025
HRA Checks #37250-37257 $40,718.25
Section 8 Checks #136810-136885 $224,594.56
TOTAL $265,312.56
Motion carried: 5-0
HRA Meeting Minutes June 16, 2025
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ITEM #8 ADJOURNMENT
This meeting was adjourned by unanimous consent at 7:23 p.m.
Date Approved: July 21, 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. 19
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
7/21/2025
Julie Urban, Asst. Community Development DirectorREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution authorizing submittal of an application to the Metropolitan Council for a
Livable Communities Policy & Program Development grant.
EXECUTIVE SUMMARY:
In June, the Housing and Redevelopment Authority (HRA) completed a Housing Program Evaluation which
identified potential needs for housing programming along with available funding and proposed suggestions for
new program development. Current staff capacity is limited, however, which will make it a challenge to move
forward quickly with new program development.
The Metropolitan Council currently offers funding through its Livable Communities Grant Program: Policy &
Affordable Housing Program Development (Grant Program) to help communities develop new programs that
"remove barriers to producing or preserving affordable housing." Staff recommends that the HRA apply for
up to $22,000 from the Grant Program to fund additional hours for the part-time Housing Specialists to focus
time specifically on assessing housing needs and developing new programs and creating a plan for
maximizing the use of available housing resources.
RECOMMENDED ACTION:
By motion: adopt a resolution authorizing the submittal of an application to the Metropolitan Council
for a Livable Communities Policy & Program Development grant.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
In June, HRA staff conducted an evaluation of HRA housing programs. The evaluation demonstrates
that there is funding available to expand the work the HRA does to meet housing needs in the
community.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The Grant Program is seeking proposals to develop programs that "remove barriers to producing or
preserving affordable housing," which can advance equity in the community as well as further the Strategic Plan
goal to maintain Richfield as an affordable place to live.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
It is the HRA's policy to seek outside funding whenever possible and practical.
D.CRITICAL TIMING ISSUES:
Melissa Poehlman, Executive Director
07/16/2025
The application was due on July 21; however, the Metropolitan Council has agreed to accept a
resolution submitted after the deadline as long as it is submitted by August 14, 2025.
Awards are expected to be announced in September. Work on the program development could begin
as early as October of this year.
The grant is a two-year grant; however, staff estimates utilizing the grant within one year.
E.FINANCIAL IMPACT:
The grant would pay the entire cost of the additional hours worked by the Housing Specialists on
program development. The Grant Program does not require a local match.
The Program Evaluation identified up to $425,000 in additional funds, annually, to be
used for new housing programming and the grant would help the HRA develop a plan and
programs for utilizing these funds.
The amount available for new programming is likely even greater, as the Program
Evaluation estimated the City will receive $400,000 annually in Local Affordable Housing
Aid (LAHA), but the actual amount certified for 2025 is $653,000.
F.LEGAL CONSIDERATION:
If the HRA receives a grant, the HRA Attorney will review and sign off on the grant agreement.
ALTERNATIVE RECOMMENDATION(S):
Decide not to authorize submittal of a grant application and direct staff to withdraw the grant application.
PRINCIPAL PARTIES EXPECTED AT MEETING:
NA
ATTACHMENTS:
Description Type
Resolution Resolution Letter
RESOLUTION NO. 1511
RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES ACT FUNDING AND
AUTHORIZING APPLICATION FOR GRANT FUNDS
WHEREAS the City of Richfield is a participant in the Livable Communities Act's Local
Housing Incentives Program for 2025 as determined by the Metropolitan Council, and the City’s
Housing and Redevelopment Authority (the “HRA”) is therefore eligible to apply for funds under
the Livable Communities Demonstration Account funds (“LCDA”); and
WHEREAS, the HRA has identified a proposed project within the City that meets the
grant program’s purposes and criteria and is consistent with and promotes the purposes of the
Metropolitan Livable Communities Act and the policies of the Metropolitan Council’s adopted
metropolitan development guide; and
WHEREAS the HRA has the institutional, managerial, and financial capability to ensure
adequate project and grant administration; and
WHEREAS the HRA certifies that it will comply with all applicable laws and regulations
as stated in the contract grant agreement; and
WHEREAS the HRA agrees to act as legal sponsor for the project contained in the grant
application submitted on July 21, 2025; and
WHEREAS, the HRA acknowledges Livable Communities Act grants are intended to
fund projects or project components that can serve as models, examples or prototypes in the
region, and therefore represents that the proposed project(s) or key components of the
proposed project(s) can be replicated in other metropolitan-area communities; and
WHEREAS only a limited amount of grant funding is available through the Metropolitan
Council’s Livable Communities Act programs during each funding cycle and the Metropolitan
Council has determined it is appropriate to allocate those scarce grant funds only to eligible
projects that would not occur without the availability of grant funding.
NOW THEREFORE BE IT RESOLVED that, after appropriate examination and due
consideration, the HRA:
1.Finds that it is in the best interests of the City’s development goals and priorities for
the proposed project or projects to occur at this particular time.
2.Finds that the project components for which Livable Communities Act funding is
sought:
a.will not occur solely through private or other public investment within the
reasonably foreseeable future; and
b.will occur within two years after a grant award only if Livable Communities
Act funding is made available for this project at this time.
3.Represents that the City has undertaken reasonable and good faith efforts to procure
funding for the project components for which Livable Communities Act funding is
sought but was not able to find or secure from other sources funding that is
necessary for project component completion within two years.
4.Authorizes its Chair and Executive Director to submit on behalf of the HRA an
application or applications for Metropolitan Council Livable Communities Act grant
funds for the project component(s) identified in the application(s), and to execute
such agreements as may be necessary to implement the project(s) on behalf of the
HRA.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 21st day of July 2025.
______________________________
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #4.
STAFF REPORT NO. 20
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
7/21/2025
Celeste McDermott, Housing SpecialistREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW: Melissa Poehlman, Executive Director
07/16/2025
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the adoption of a resolution authorizing the purchase of 6804 14th Avenue South for
future development as a single-family home or duplex under the Richfield Rediscovered Program.
EXECUTIVE SUMMARY:
In May, City staff began talking to representatives of the owner of 6804 14th Avenue South about selling the
home to the Richfield Housing and Redevelopment Authority (HRA). The house is 825 square feet and was
built in 1950. It is a one and a half story home, with two bedrooms, and one bathroom. There are two garages
and one shed on the property, exceeding current code allowances for accessory buildings. The house is
currently uninhabitable due to the condition of the home and was inspected and meets the substandard
requirements for acquisition and demolition under state statute for the use of Tax Increment Financing (TIF).
A sale price of $150,000 was agreed upon with the seller.
The home will be purchased for eventual deconstruction/demolition and sale through the Richfield
Rediscovered Program (Program). The goal of the Program is to provide opportunities for the
construction of new, market-rate single-family homes and duplexes in Richfield. The new units built
through the Program provide updated, diverse housing options for the community, and increase the
tax value of the previously underutilized properties.
The Purchase Agreement proposes to purchase the property as-is. The property contains a
significant amount of personal property that will remain behind. The proposed sale price takes into
account the cost of removing the personal property.
All homes built through the Program must meet minimum accessibility requirements and must include at least
one of the following features:
An Accessory Dwelling Unit (ADU);
Full accessibility per the standards of the Minnesota Accessibility Code Section 1002;
Sustainability measures that meet the Green Credit standards and include either solar panels,
geothermal heating, or other additional sustainability feature as approved by the HRA;
Be an owner-occupied duplex or;
Another unique design that furthers HRA housing goals, as approved by the HRA.
RECOMMENDED ACTION:
By motion: Adopt the resolution authorizing the purchase of 6804 14th Avenue South for new
construction of a single-family home or duplex under the Richfield Rediscovered Program.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The Program continues to be popular, with nearly 300 people signed up to receive notifications and
updates on the Program. The Program offers a singular opportunity for infill-new construction within the
City of Richfield and has seen 150 homes built since 1990.
In May 2025, staff began talking with representatives of the owner of 6804 14th Avenue South about the
possibility of the City purchasing the home. The owner is experiencing health problems and is no longer
able to live in the home or bring it into code compliance.
A substandard inspection of the home was completed, which identified a variety of code, environmental
health, and structural deficiencies qualifying the structure as substandard.
Staff reviewed the tax valuation of the property and cleanup costs, and worked with the homeowner and
representatives to find an agreed upon price of $150,000.
Constructed in 1950, the one and a half story home has 825 finished square feet. It has a floating slab
with no basement. It has two bedrooms, along with one bathroom. The property has two garages and a
shed. It is a 66-foot wide property with mature trees.
In November 2022, the Program Guidelines were updated to require that all new homes built through the
Program meet minimum accessibility requirements. Additionally, all homes built through the Program
must include at least one of the following features:
An Accessory Dwelling Unit (ADU);
Full accessibility per the standards of the Minnesota Accessibility Code Section 1002;
Sustainability measures that meet the Green Credit standards and include either solar panels,
geothermal heating, or other additional sustainability feature as approved by the HRA;
Be an owner-occupied duplex or;
Another unique design that furthers HRA housing goals, as approved by the HRA.
The HRA currently owns two properties through the Program with the goal of developing duplexes.
While interest has been strong, financing duplex construction poses unique challenges. Staff are actively
working with a few potential buyers to explore viable solutions.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The construction of ADU's, accessible homes and duplexes furthers equity goals by expanding housing
choices to meet the needs of a diverse population.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The Richfield 2040 Comprehensive Plan states as a goal: "Provide a full range of housing choices that
meet residents' needs at every stage of their lives, and ensure a healthy balance of housing types that
meet the needs of a diverse population with diverse needs."
Through the Program, the HRA purchases and removes substandard and functionally obsolete housing
and replaces it with newer, higher valued homes with square footages and design features sought after
by current buyers.
In efforts to reach the goals of the Comprehensive Plan, the following policies are promoted
through the Program:
Encourages the creation of "move up" housing through new construction and home
remodeling.
Promotes the development of a balanced housing stock that is available to a range of
income levels.
Richfield's Inclusionary Affordable Housing Policy applies to the construction of new single-family homes
(as developed under Richfield Rediscovered Program or the New Home Program), by guiding it as
follows:
"With regards to “scattered-site single family housing development,” at least 20% of the units
newly constructed or rehabilitated and converted to long-term affordability in any three-
year period must meet the proscribed affordability requirements."
With the addition of 6804 14th Avenue South into the Richfield Rediscovered portfolio,
staff anticipates that over the time period of 2022-2025, 33% of new/substantially
rehabilitated units will meet the affordability requirements outlined in the Inclusionary
Affordable Housing Policy.
D.CRITICAL TIMING ISSUES:
The seller is having health problems and is eager to close on the sale of his home.
Under the terms of the Purchase Agreement, closing would occur by September 30, 2025.
If acquired for the Richfield Rediscovered Program, the property would be marketed to builders and
potential buyers for the construction of a new single family home or duplex.
E.FINANCIAL IMPACT:
S taff revi ewed sales and acquisition data, and made an offer based on taxable market value and
expenses to clean up the property.
A pri ce of $150,000 was agreed upon. A P urchase A greement has been signed. A uthorization would
allow for up to an additional $5,000 for closing costs.
If sold through the Richfield Rediscovered P rogram, staff anticipates a sale price of the lot for around
$80,000-$110,000 depending on what features the new home proposal included.
W ith i ncreasing sale prices in the Richfield housing market, fewer opportunities have become available
for the HRA to acquire property for this P rogram. In the recent Richfield Rediscovered acquisitions,
subsidies have ranged from $49,000-$67,200 per lot. D evelopi ng a duplex on the property would likely
require additional subsidy.
F unds for this acquisition are available in the Housing and Redevelopment F und.
F.L E GAL C ON S ID E R AT ION:
The P urchase A greement was reviewed by legal counsel.
The HRA A ttorney and E xecutive D irector would review and approve any additional administrative
changes to the P urchase A greement.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve a resolution authorizing the acquisition of 6804 14th Avenue South.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
NA
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
P urchase A greement C ontract/A greement
F ront D oor B ackup Material
K itchen C eiling B ackup Material
K itchen Window B ackup Material
Toilet B ackup Material
HRA RESOLUTION NO. 1512
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6804 14TH AVENUE SOUTH
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (“the HRA”) desires to purchase certain real property pursuant to and
in furtherance of redevelopment and the City’s Comprehensive Plan, said property being
described as:
The East half of the South Sixty-six (66) feet of the North One Hundred Twenty-six (126)
feet of Block Six (6), Rich Fields, Hennepin County, Minnesota
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, HRA funds are available for acquisition purposes.
NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1.The purchase price for the property identified is approved not to exceed
$150,000, plus closing costs, not to exceed $155,000.
2.The Chairperson and Executive Director are authorized to e xecute a
Purchase Agreement and to take other actions necessary to purchase
the property for the amount set forth in this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota on this 21st day of July, 2025.
_______________________
Erin Vrieze Daniels, Chair
ATTEST:
_______________________
Sean Hayford Oleary, Secretary
1
315418v5 CBR RC125-41
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (the “Agreement”) is made as of this day of
July 21, 2025, by and between Warren Lyle Ahlgren, a single person, as trustee of the
Warren Lyle Ahlgren Revocable Trust Under Agreement Dated June 18, 2025 ("Seller")
and the Housing and Redevelopment Authority in and for the City of Richfield , a public
body corporate and politic under the laws of the State of Minnesota (“Buyer”).
RECITALS
Seller is the owner of property located at 6804 14th Avenue S, Richfield, Minnesota, which
is legally described on the attached Exhibit A ("Property").
The Property includes includes all plants, shrubs and trees, storm windows and/or inserts,
storm doors, screens, awnings, window shades, blinds, curtain-traverse-drapery rods, attached
lighting fixtures with bulbs, plumbing fixtures, water heater, heating system, humidifier, central
air conditioning, electronic air filter, automatic garage door opener with controls, water softener,
cable television outlets and cabling, and built-ins, including dishwasher, garbage disposal, trash
compactor, oven(s), cook top stove, microwave oven, hood-fan, intercom and installed carpeting
located on the premises which are the property of Seller. The property also includes the
following personal property: any personal property or debris remaining on the subject property at
the time of closing. Seller may remove any personal property prior to closing. No personal
property may be removed from the property past closing.
AGREEMENT
1. Offer/Acceptance for Sale of Property. The Seller agrees to sell to Buyer the
Property and Buyer agrees to purchase the same, according to the terms of this Agreement.
2.Purchase Price for Property and Terms.
A.PURCHASE PRICE: The total purchase price for the Property is One
Hundred and Fifty Thousand and 00/100ths Dollars ($150,000.00) (the
“Purchase Price”).
B.TERMS:
(1): EARNEST MONEY. There shall be no earnest money required.
(2): BALANCE DUE SELLER. Buyer agrees to pay by check or electronic
transfer of funds on the date of closing on the Property (the “Closing
Date”) any remaining balance of the Purchase Price due to Seller
according to the terms of this Agreement.
(3): DEED/MARKETABLE TITLE. Subject to performance by Buyer, Seller
agrees to execute an d deliver a Warranty Deed or Personal
2
315418v5 CBR RC125-41
Representative’s Deed conveying marketable title to the Property to
Buyer, subject only to the following exceptions:
a.Building and zoning laws, ordinances, state and federal
regulations.
b.Reservation of minerals or mineral rights to the State of
Minnesota, if any.
c.Public utility and drainage easements of record which will not
interfere with Buyer’s intended use of the Property.
(4): DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In
addition to the Warranty Deed required in paragraph 2B(3) above, Seller
shall deliver to Buyer:
a.Standard form Affidavit of Seller.
b.A “bring-down” certificate, certifying that all of the warranties made
by Seller in this Agreement remain true as of the Closing Date. This
will be provided by the Buyer to be signed by the Seller.
c.Certificate that Seller is not a foreign national. This will be
provided by the Buyer to be signed by the Seller.
e.Well disclosure certification as required pursuant to Paragraph 9 (g)
of this Agreement.
If Seller is unaware of the location of a well and there is a building
permit issued for the Property prior to installation of a City water
system, Seller agrees to have a licensed well contractor examine
the Property for purposes of locating a well.
Seller agrees to have all wells located on the Property, which are
not in use, sealed by a licensed well contractor at Seller’s expense.
Seller agrees to escrow funds on the Closing Date for the purpose
of locating and sealing wells if circumstances prohibit locating and
sealing wells prior to closing.
f.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
Agreement.
3.Contingencies. Buyer's obligation to buy is contingent upon the following:
3
315418v5 CBR RC125-41
a.Buyer's determination of marketable title pursuant to paragraph 4 of this
Agreement;
b.Buyer’s determination, in its sole discretion, that the results of any
environmental investigation of the Property conducted pursuant to this
Agreement are satisfactory to Buyer;
c.Approval of this Agreement by Buyer’s Board.
Buyer shall have until the Closing Date to remove the foregoing contingencies. The
contingencies at a. and b. are solely for the benefit of Buyer and may be waived by Buyer. The
contingency at c. may not be waived by either party. If Buyer or its attorney gives written notice to
Seller that the contingencies at a., b., and c. are duly satisfied or waived, Buyer and Seller shall
proceed to close the transaction as contemplated herein.
If one or more of Buyer’s or Seller’s contingencies is not satisfied, or is not satisfied on time, and is
not waived, this Agreement shall thereupon be void at the written option of Buyer and Seller shall
return the Earnest Money, if any, to Buyer, and Buyer and Seller shall execute and deliver to each
other a termination of this Agreement. As a contingent Agreement, the termination of this
Agreement is not required pursuant to Minnesota Statutes, Section 559.21, et. seq.
4.Title Examination/Curing Title Defects. As soon as reasonably possible after
execution of this Agreement by both parties,
(a)Seller shall surrender any abstract of title and a copy of any owner’s title
insurance policy for the property, if in Seller’s possession or control, to Buyer or to Buyer’s
designated title service provider; and
(b)Buyer shall obtain the title evidence determined necessary or desirable by Buyer.
The Buyer shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived.
The Seller shall have 90 days from the date of such objection to affect a cure; provided, however,
that Seller shall have no obligation to cure any objections, and may inform Buyer of such. The
Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement
null and void, and the parties will thereby be released from any further obligation hereunder.
5.Environmental Investigation. The Seller warrants that the Property has not
been used for production, storage, deposit or disposal of any toxic or hazardous waste or
substance, petroleum product or asbestos product during the period of time Seller has owned the
Property. The Seller further warrants that Seller has no knowledge or information of any fact
which would indicate the Property was used for production, storage, deposit or disposal of any
toxic or hazardous waste or substance, petroleum product or asbestos product prior to the date
Seller purchased the Property. Notwithstanding the above, Seller's warranty regarding petroleum
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products does not preclude the presence of heating oil or other similar products used as a heating
fuel for the dwelling but Seller does warrant that if there was a fuel tank on the Property used for
the storage of heating oil or other similar product, Seller has no knowledge of any leak in the
tank or contamination caused thereby.
6.Real Estate Taxes and Special Assessments. Real estate taxes payable in the
year of closing will be pro-rated between Buyer and Seller to the Closing Date. Seller shall pay all
real estate taxes payable in previous years, the entire unpaid balance of special assessments, and
all installments of special assessments levied and pending, including special assessments
installments payable after the year of closing. Seller also agrees to pay all assessments related to
service charges furnished to the Property prior to the Closing Date (e.g., delinquent water or sewer
bills, removed or diseased trees), including those charges levied, pending, or certified to taxes
payable in the year of closing. If closing occurs prior to the date the amount of real estate taxes
due in the year of closing are available from Hennepin County, the current year’s taxes will be
pro-rated based on the amount due in the prior year.
7.Closing Date. The Closing Date will be on or before September 30, 2025.
Delivery of all papers and the closing shall be made at the offices of Buyer, 6700 Portland Avenue
South, Richfield, Minnesota 55423, or at such other location as is mutually agreed upon by the
parties. All deliveries and notices to Buyer shall be made to the above address and marked to the
attention of Housing Specialists Celeste McDermott and Hilary Lovelace.
8.Possession/Utilities/Removal of Property/Escrow.
(a)Possession. The Seller agrees to deliver possession not later than the Closing
Date.
(b)Utilities. City water and sewer charges, electricity and natural gas charges, fuel
oil and liquid petroleum gas shall be pro-rated between the parties as of the Closing Date. Seller
shall arrange for final readings as of the Closing Date.
(c)Personal Property. The Seller may remove any personal property before the
possession date. Personal property not removed at the time of sale shall be deemed forfeited to
and shall become the property of Buyer. The provisions of this paragraph shall not merge with
the deed and shall survive closing on the property.
(d)Escrow. Buyer shall not retain an escrow from the purchase price for the
Property for payment of personal property removal, disposal charges and utility charges.
(e)Amounts Due. The Buyer’s ability to deduct amounts due under this paragraph from
the retained escrow is not exclusive but is in addition to Buyer's rights at law and equity to collect such
amounts from Seller. The Seller is responsible for the amounts due under this paragraph even if: (i) Buyer
neglects to deduct the amount from escrow; or (ii) the escrowed amount is insufficient to pay all
amounts due under this paragraph 8.
9.Seller Warranties .
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(a)Sewer and W ater. Seller warrants that the Property is connected to City
sewer and City water.
(b)Mechanics' Liens. Seller warrants that, prior to the Closing Date, Seller shall pay in
full all amounts due for labor, materials, machinery, fixtures or tools furnished within the 120 days
immediately preceding the Closing Date in connection with construction, alteration or repair of any
structure upon or improvement to the Property.
(c)Notices. Seller warrants that it has not received any notice from any
governmental authority as to violation of any law, ordinance or regulation in connection with the
Property.
(d)Tenants. Seller warrants that the Property is not now occupied by tenants and
was not occupied by tenants at the time Seller first received Buyer's written offer to purchase the
Property.
(e)Broker Commission. Seller is responsible for paying any and all realtor fees.
(f)Realtor Fees. Buyer agrees to be responsible for the cost of services of any real
estate broker or agent in connection with this Agreement or the transaction contemplated by this
Agreement.
(g)Indemnification. Each party agrees to indemnify, defend, and hold harmless the
other party against and in respect of any such obligation and liability based in any way upon
agreements, arrangements, or understandings made or claimed to have been made by the party
with any third person.
(h)Structures. The Seller warrants that the buildings, if any, are entirely within the
boundary lines of the Property. The parties acknowledge that the Property is being sold in "as is"
condition relating to the structural, operational, and mechanical systems.
(i)Well Disclosure.
The Seller certifies that the Seller does not know of any wells on the described real
property.
A well disclosure certificate accompanies this document.
I am familiar with the property described in this instrument and I certify that the status and
number of wells on the described real property have not changed since the last previously
filed well disclosure certificate.
(j) Methamphetamine Disclosure. To the best of Seller’s knowledge,
methamphetamine production has not occurred on the property.
10.Closing Costs/Recording Fees/Deed Tax. The Buyer will pay: (a) the closing fees
charged by the title insurance or other closing agent, if any, utilized to close the
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transaction contemplated by this Agreement; (b) fees for title evidence obtained by Buyer; and (c)
the recording fee for the deed transferring title to Buyer. Seller will pay all other fees normally paid
by sellers, including (a) any transfer taxes, recording fees and Well Disclosure fees required to
enable Buyer to record its deed from Seller under this Agreement, and (b) fees and charges related
to the filing of any instrument required to make title marketable. Each party shall pay its own
attorney fees.
11.Inspections. From the date of this Agreement to the Closing Date, Buyer, its
employees and agents, shall be en titled to enter upon the Property to conduct such surveying,
inspections, investigations, soil borings and testing, and drilling, monitoring, sampling and
testing of groundwater monitoring wells, as Buyer shall elect; provided, that Seller is given at least
24 hours’ notice.
12.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 Agreement shall become null and void, at Buyer’s option. At the
request of Buyer, Seller agrees to sign a cancellation of Agreement.
13.Default/Remedies. If Buyer defaults in any of the covenants herein, Seller may
terminate this Agreement, and on such termination all payments made hereunder shall be
retained by Seller as liquidated damages, time being of the essence. This provision shall not
deprive either party of the right to enforce specific performance of this Agreement, provided this
Agreement has not terminated and action to enforce specific performance is commenced within
six months after such right of action arises. In the event Buyer defaults in its performance of the
terms of this Agreement and Notice of Cancellation is served upon Buyer pursuant to Minn. Stat.
Section 559.21, the termination period shall be thirty (30) days as permitted by Minn. Stat.,
Section 559.21, Subd. 4.
14.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: Warren Ahlgren, as trustee of the Warren Lyle Ahlgren
Revocable Trust Under Agreement Dated June 18, 2025
6804 14th Ave S
Richfield, MN 55423
BUYER: Housing and Redevelopment Authority of the City of Richfield
Attn: Housing Specialist
6700 Portland Avenue South
Richfield, MN 55423
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AGENT: Kutak Rock, LLP
ATTN: Julie Eddington
60 South Sixth Street , Suite 3400
Minneapolis, MN 55402
15.Entire Agreement. This Agreement, Exhibits, and other amendments 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 Agreement
can be modified only in a writing properly signed on behalf of Seller and Buyer; except that the
Closing Date may be extended up to 6 months by written agreement of the Seller and Buyer without
further approval by Buyer’s Board. Buyer’s staff is hereby authorized to execute agreements to
extend the Closing Date up to 6 months from the Closing Date at paragraph 7 above.
16.Survival. Notwithstanding any other provisions of law or court decision to the
contrary, the provisions of this Agreement shall survive closing.
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IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date and
year above.
Buyer:
Housing and Redevelopment Authority of the
City of Richfield
By: ________________________________
Its Chair
And by: _____________________________
Its Executive Director
Seller:
________________________________
Warren Lyle Ahlgren, a single person, as trustee
of the Warren Lyle Ahlgren Revocable Trust
Under Agreement Dated June 18, 2025
B-1
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EXHIBIT A
Legal Description of Property
The East half of the South Sixty-six (66) feet of the North One Hundred Twenty-six (126) feet of
Block Six (6), Rich Fields, Hennepin County, Minnesota