12202010completeagendaCITY OF RICHFIELD, MINNESOTA
MONDAY, DECEMBER 20, 2010
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
Roll call
1. Approval of minutes of Regular HRA Meeting of November 15, 2010
2. HRA approval of agenda
3. Presentation of Certificate of Appreciation to former HRA Commissioner David
Gepner
4. 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 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 approval of Transformation Home Loan Program modification to
provide grant funds to loan recipients in recognition of 20th Annual Richfield
Remodeling Fair S.R. No. 42
B. Consideration of approval of funding for Architectural Home Consultation
Program available to Richfield homeowners S.R. No. 43
C. Consideration of approval of consultant services agreement with Greater
Metropolitan Housing Corporation for 2011 S.R. No. 44
D. Consideration of approval of resolution. decertifying Richfield Rediscovered Tax
Increment Financing Districts S.R. No. 45
Notes:
5. Consideration of request for subordination of HRA apartment remodeling program
loan at. 6401 Pleasant Avenue
Staff Report No. 46
Notes:
6. Consideration of resolution adopting 4th Amendment to Contract for Private
Redevelopment with Best Buy Co., Inc.
Staff Report No. 47
Notes:
7. HRA discussion items
Notes:
8. Executive Director report
Notes:
9. Claims and payroll
Adjournment
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 612-861-9738.
richfield: December 2010
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7 PM Special Friendship
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J
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
November 15, 2010
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:02 p.m.
OATH OF OFFICE
City Clerk Gibbs presented the Oath of Office to Commissioner Debbie Goettel.
ROLL CALL
HRA Members
Present: Sue Sandahl, Chair; Joan Helmberger; Debbie Goettel, Doris Rubenstein
and Steven Quam.
Staff Present Steve Devich, F~cecutive Director; John Stark, Community Development
Director; Karen Barton, Community Development Manager and Nancy
' Gibbs, City Clerk.
Item #1 APPROVAL OF MINUTES OF REGULAR HRA MEETING OF OCTOBER 18, 2010
M/Rubenstein, S/Helmberger to approve the minutes of the October 18, 2010 Regular HRA
Meetin .
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Quam, S/Goettel to approve the agenda.
Motion carried 5-0.
HRA Meeting -2-
Added Item #7A
November 15, 2010
Chair Sandahl requested that commissioner discussion be added to the agenda
effective next meeting.
Item #3 PUBLIC HEARING REGARDING RESOLUTION GRANTING NONEXCLUSIVE
EASEMENT FOR ACCESS PURPOSES FOR MERIDIAN CROSSINGS (SOUTH OF
77'~" STREET) OVER.PORTION OF EMERSON AVENUE .OWNED BY RICHFIELD
HRA S.R. 38
Community Development Director Stark presented Staff Report No. 38.
M/Sandahl, S/Quam to close the public hearing.
Motion carried 5-0.
M/Rubenstein, S/Goettel that the following resolution be adopted and that it be made a part
of these minutes:
HRA RESOLUTION NO. 1082
RESOLUTION AUTHORIZING GRANTING OF AN EASEMENT
OVER AND ACROSS REAL PROPERTY LOCATED WITHIN
THE INTERSTATE-LYNDALE-NICOLLET (ILN) TAX INCREMENT DISTRICT
Motion carried 5-0. This resolution appears as HRA Resolution No. 1082.
Item #4 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA
TRANSFORMATION HOME LOAN~AT 6945-14T" AVENUE S.R. NO. 39
Assistant Community Development Director Barton presented Staff Report #39.
Property owner Theodore Fletcher was present for questions along with Mr. Brad Dickinson
of 10336 Morris Rd. Bloomington, MN. Mr. Dickinson helped the Fletcher's with their first mortgage
and was available for questions and also explained current program that Fletchers are trying to
participate in.-
After some discussion Commission Member Quam stated that he was not ready to go
forward with this request.
M/Sandahl, S/Goettel to consider the request for subordination of HRA Transporation Home
Loan at 6945-14~' Avenue. .
Motion carried 4-1. Quam apposed.
Item #5 CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF AMENDED
AND RESTATED TAX INCREMENT PLEDGE AGREEMENT WITH CITY OF
RICHFIELD RELATING TO CITY'S PENN AVENUE BRIDGE BONDS S.R. N0.40
HRA Meetlng -3- November 15, 2010
Community Development Stark presented Staff Report No.. 40.
M/Sandahl, S/Rubenstein that the following resolution be adoeted and that it be made a part
of these minutes:
HRA RESOLUTION NO. 1083
RESOLUTION AUTHORIZING EXECUTION OF AN AMENDED
AND RESTATED TAX INCREMENT PLEDGE AGREEMENT WITH
THE CITY OF RICHFIELD RELATING TO THE CITY'S GENERAL
OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES
2010B, IN THE APPROXIMATE AGGREGATE PRINCIPAL
AMOUNT OF $6,465,000
Motion carved 5-0. This resolution appears as HRA Resolution No. 1083.
Item #6 CONSIDERATION OF GUIDELINES FOR RICHFIELD REDISCOVERED LOT SALE
PROGRAM S.R. NO. ~1
Assistant Community Development Director Barton presented Staff Report No. 41.
Commission Member Quam suggested that language'state either a letter of credit or escrow
money with the HRA.
M/Quam, S/Goettel to approve the guidelines for Richfield Rediscovered Lot Sale Program.
Motion carried 5-0.
Item #7 EXECUTIVE DIRECTOR REPORT
Executive Director Devich reported, at next month meeting there will be a recognition of
David Gepner.
Item #7A
Commission Member Rubenstein restated a thank you to everyone that was involved in
planning process of new crosstown project.
Item #8 CLAIMS AND PAYROLL
M/Quam, S/Sandahl that the followina claims and payrolls be approved:
U.S. Bank 11/15/2010
Section 8 Checks: 119401-119825 ~ $ 158,908.00
HRA Checks: 31038 - 31,.062 $ 57,934.12
HRA Meetlng -4-
TOTAL
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:50 p.m
Date Approved:
Nancy Gibbs
City Clerk
November 15, 2010.
$ 216,842.12
Suzanne M. Sandahl
Chair
Steve Devich
F~cecutive Director
AGPNDA ITEM#: 4 p~
REPORT #: 42
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 20, 2010
REPORT PREPARED BY:
MICHELLE J. T. LEWIS, HOUSING
SPECIALIST
NAME, TITLE
REPORT PRESENTER:
KAREN BARYON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME Trris
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Transformation Home Loan Program modification to provide grant funds to loan recipients in
Recognition of the 20th Annual Richfield Remodeling Fair
I. RECOMMENDED ACTION:
By Motion: Authorize a modification to the Transformation Home
Loan Program to provide a sup lemental grant.
II. BACKGROUND
For 20 years Richfield has encouraged remodeling and home improvement through
the Richfield Remodeling Fair (Fair). The 20th Annual Fair is scheduled for January
22, 2011. Over the past 20 years the Housing and Redevelopment Authority (HRA)
has worked with the Visions Committee in planning and presenting information at
the Fair. The Visions Committee asked the HRA and City to consider offering
additional incentives for this landmark year of the Fair.
In recognition of the 20th Anniversary of the Fair, staff is recommending the HRA
modify the Transformation Home Loan Program to provide a $2,000 grant in
addition to the deferred loan, up to $10,000 total, to loan applicants who meet the
following criteria.
1) The applicants attended the Remodeling Fair
12210 Modify TH Loan Program 20~" Remodeling Fair
2) The applicants submitted an application that qualifies to receive loan
funds.
Grant funds would be above and beyond the loan amount approved for each
applicant. Loan amounts are 15% of the total costs of projects valued at $50,000 or
more, up to a maximum $25,000 loan.
Staff will advertise the loan program through press releases to print and online
media, through the City's website, cable channel, and online forums, through
program brochures and other mailings, and through activities in the City throughout
the year. Additionally, staff will provide information to remodelers and contractors
providing services in the City, as well as sharing the information with realtors at the
annual Realtors' Workshop. Staff may also place signs in the yards where
transformations are taking place.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA has a primary interest in maintaining and improving the
housing stock in the City. With that, the HRA has an interest in
supporting the Fair and its success. .
• The HRA operates the Transformation Home Loan program to support
the following Comprehensive Plan Goals and Policies
• Goal: Maintain and enhance Richfield's image as a community with
strong, desirable and livable neighborhoods
o Encourage the use of quality, durable building and
landscaping materials to maintain ahigh-quality
standard in residential development.
o Support the rehabilitation and upgrading of the existing
housing stock.
o Encourage the creation of "move-up" housing through
new construction and home remodeling.
o Support ongoing maintenance and upkeep of residential
properties.
o Ensure redevelopment and infill projects maintain the
integrity of existing neighborhoods.
• Goal: Ensure sufficient diversity in the housing stock to provide for a
range of household sizes, income levels and needs.
o Encourage improvements to the housing stock to better
serve families with children and seniors.
o Promote additional housing diversity to serve families at
all stages of their life-cycle through assistance,~incentive
programs, and the exploration of possible partnerships.
B. CRITICAL TIMING ISSUES
• The Remodeling Fair is on January 22, 2011. To advertise this
opportunity in advance of the Fair, the program modification needs to
be approved as soon as possible.
C. FINANCIAL
• Funds for the grants. would come out of the budgeted funds for the
2011 Transformation Home Loan Program.
• The grant funds would be awarded only to applicants approved to
receive loan funds in Fiscal Year 2011. The grant funds would be in
addition to the loan amount.
D. LEGAL
• The HRA reserves the right to deny loan applicants who do not qualify
for the program. Grant funds would be awarded to applicants who
attended the Remodeling Fair and are subsequently approved to
receive loan funds.
IV. ALTERNATIVE RECOIVIlVIENDATION(S~
• Modify the incentive proposal.
• Do not approve an incentive.
V. ATTACHMENTS
• None
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
AGENDA IT`~M#: 48
REPORT #: 43
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 20, 2010
REPORT PREPARED BY:
JULIE URBAN, HOUSING SPECIALIST
NaarE Trrz,E
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of an Architectural Home Consultation Program.
I. RECOMMENDED ACTION:
By Motion: Authorize funding for an Architectural Home Consultation
Program available to Richfield homeowners.
II. BACKGROUND
The Richfield Housing and Redevelopment Authority (HRA) offers several
remodeling and new construction programs, including the Transformation Homes
Program, and the Richfield Rediscovered Program. The Transformation Homes
Program is amajor-remodeling program that provides a deferred loan in the amount
of 25% of project costs up to a maximum of $25,000. The Richfield Rediscovered
Program is a new construction program that provides opportunities for owner-
occupants to build new, move-up housing through either a $70,000 grantor
subsidized lots.
In an effort to encourage thoughtful expansions and new homes that are integrated
into the neighborhood, staff is proposing that the HRA offer an Architectural Home
Consultation Program (Program) to homeowners. The Minnesota Chapter of the
122010 Architect Home Consultation Prog.doc
KAREN BARYON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
American Institute of Architects (AIA) Residential Committee is interested in
partnering with the City to offer the Program.
The Program will operate as follows:
- A homeowner contacts an architect from an approved list available from the
Housing Specialists and on the City's website.
- The architect provides a 2-hour consultation in the home (no plans are
provided).
- The homeowner pays a $25 co-pay for the service.
- The HRA pays the remainder of the architect's fee ($225).
- The homeowner has the option of hiring the architect for additional work but
there is no expectation for that to occur.
The consultation will provide the homeowner an opportunity to discuss different
options and design ideas for their project with a registered architect.
The AIA will contact its members and ask interested firms to submit qualifications.
The firms would be required to be an AIA member, offer the services of a registered
architect, and have at least 50 percent of their work be residential.
The Program is modeled after a similar, successful program offered in St. Louis
Park.
The service would be required for buyers of Richfield Rediscovered lots unless they
are using their own architect.
III. BASIS OF RECOMMENDATION
A. POLICY '
• The HRA encourages homeowners to remodel and expand their
homes. Adding the Architectural Home Consultation Program would
provide additional assistance to remodeling homeowners and ensure
that additions fit the house style and meet the needs of the
homeowner and the neighborhood.
• An important component of the Richfield Rediscovered Lot Sale
Program is that the house be designed to complement the
neighborhood. Offering architectural advice can help to ensure that
this requirement is met.
• The Program was recommended in the 2009 Urban Land Institute
Housing Audit as one means to help the community encourage move-
up housing that meets the needs of today's families.
B. CRITICAL TIMING ISSUES
• Responses to the Request for Participation will be due in January
2011. The Program would begin in February.
• The Program was identified on the HRA's Work Program for 2010.
C. FINANCIAL
• Residents will pay a $25 co-pay for the service; the HRA will pay the
remaining $225.
• $5,625 would be set aside for the Program providing up to 25
architectural visits.
• Funds are available for the Program in the 2011 budget.
D. LEGAL
• NA
IV. ALTERNATIVE RECONIlVIENDATION(S~
• Do not to authorize the Architectural Home Consultation Program.
V. ATTAC~IlVIENTS
• Request for Qualifications -Architectural Home Consultation Program
VI. PRINCIl'AL PARTIES EXPECTED AT MEETING
• NA
~B -- ~
City of Richfield ~ ,~~T
Request for Qualifications-Architectural Home Consultation Program
December 10, 2010
Program outline•
The City of Richfield recognizes residents' needs to improve their homes for growing families
and to remain a healthy and viable community in the Twin Cities area. YVith only a small
percentage of the city's homes over 1500 square feet, there have been many home additions
completed without much consideration for design. In an effort to encourage more thoughtful
additions that are proportional and seamless with the existing homes and maintain the
neighborhood feel, the City would like to partner with architects to make design to be part of the
process.
Additionally, the City's Richfield Rediscovered program continues to facilitate construction of
new single-family homes or duplexes throughout the city. In much the same way as architectural
advising for home additions, the City will encourage more thoughtful designs so that new
construction will complement the existing neighborhoods, but will also offer new housing stock
to expand housing options within Richfield. Participants in the Richfield Rediscovered may also
utilize this service.
The city will pay for 25 two-hour architectural consultations, based on the approved budget for
January 2011- December 2011.
The Process•
Clients will pay $25 for this service. They will then choose from a list of approved architects
(gained through this RFQ process) based on information listed on the cities web site:
http://www.ci.richfield.mn.us. The architect will visit the client's home for the two-hour
consultation to discuss design ideas and to explain the process of working with an architect. No
drawings would be provided. The City would pay the architect $225 for the two-hour
consultation. If the client hires the architect, the City steps out of the process.
Qualifications•
1. AIA member
2. Registered architect in Minnesota
3. Work is at least 50% residential
4. Firm location is approximately within a 25-mile radius of Richfield
An email stating the firm's interest in participating in the program as well as a confirmation that
the architect/firm meets the qualifications, are due to Jennifer Gilhoi ilhoi e,aia-mn.org at the
AIA Minnesota office by 3pm on Friday, January 7, 2011
If interested, some things to consider are:
1. AIA Minnesota is not limiting the number of firms that participate.
2. Commitment to this project is ongoing for 2011. (Those selected this winter will
continue to be on the list unless they otherwise notify the AIA Minnesota office to
cancel their involvement.)
C:\Documents and Settings\mlewis\Local Settings\Temporary Internet Files\OLK99\AIA
RFQ Richfield 12062010 (2).doc
4g -~
3. Homes in the area were mostly built in the 1950's. ~ ~T
4. The City-paid service is for additions and new construction.
5. The City-paid service is a prerequisite for purchasing city lots, site review and
analysis.
6. Despite the outcome of the consultation, the City will still pay the fee to the architect.
7. This service will be offered and listed on the Richfield's web site:
http://www.ci.richfield.mn.us.
Architect Qualifications:
1. What is your AIA member number?
2. What is your Minnesota architectural license number?
3. Where is your firm located? (location should be approximately within a 25-mile radius of
Richfield or convenient for you to visit clients' homes for consultations)
4. What percentage of your work is residential?
5. How many remodeling or renovation projects have you done? What percentage of your
work does this represent?
6. How many new home construction projects have you done? What percentage of your
work does this represent?
7. How many years have you been practicing architectural design?
8. Please submit three project images (3x4, 300dpi, jpg) with brief program description and
at least 2 client testimonials.
Qualifications are due to Jennifer Gilhoi at the AIA Minnesota office by 3pm on Friday,
January 7, 2010.
C:\Documents and Settings\mlewis\Local Settings\Temporary Internet Files\OLK99\AIA
RFQ_Richfield_12062010 (2).doc
AGENDA ITEM#: 4C
REPORT #: 4q.
~~ ~ STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 20, 2010
REPORT PREPARED BY:
MICHELLE LEWIS/JULIE URBAN, HOUSING
SPECIALISTS
NAME, T/TLE
REPORT PRESENTER:
KAREN BARYON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of annual Consultant Services Agreement with the Greater Metropolitan
Housin Corporation for 2011.
I. RECOMMENDED ACTION:
By Motion: Authorize the attached Consultant Services Agreement
with the Greater Metropolitan Housing Corporation for 2011.
II. BACKGROUND
The Greater Metropolitan Housing Corporation (GMHC) specializes in a variety of
housing programs, services and financing options for homeowners. The
partnership with the Richfield Housing and Redevelopment Authority (HRA) began
in 2004 and provides GMHC's services to residents at no cost.
Through November 2010, GMHC provided 115 services to 91 Richfield residents
through its Southside HousingResource Center (HRC) (see Attachment 1). In
addition, three Minnesota Housing Finance Agency loans were processed through
the HRC.
Services offered include, but are not limited to:
• Home buyer information, loan services (including Minnesota Housing
Finance Agency loans), construction consultations, energy assistance,
01192010 2010 GMHC Services Contract.doc
mortgage foreclosure prevention, home improvement information, and
assistance with rental and emergency housing issues.
The HRA has successfully partnered with GMHC for the construction of affordable
houses built under the New Home Program as well as the purchase and
rehabilitation of properties through the Neighborhood Stabilization Program.
III. BASIS OF RECOMI~~NDATION
A. POLICY
A partnership between the HRA and GMHC ensures the availability of
comprehensive rehabilitation resources and financing resources to Richfield
residents. It also serves to accomplish the two housing goals and several housing
policies identified in the 2008 Comprehensive Plan.
Goal: Maintain and enhance Richfield's image as a community with strong,
desirable and livable neighborhoods.
• Support the rehabilitation and upgrading of the existing housing stock.
• Encourage the creation of "move-up" housing through new construction
and home remodeling.
• Support ongoing maintenance and upkeep of residential properties.
Goal: Ensure sufficient diversity in the housing stock to provide for a range of
household sizes, income levels and needs.
• Encourage improvements to the housing stock to better serve families
with children and seniors.
• Promote the development, management, and maintenance of affordable
housing in the City through assistance programs; alternative funding
sources; and the creation of partnerships whose mission is to promote
low to moderate income housing.
B. CRITICAL ISSUES
• GMHC offers Richfield homeowners comprehensive home improvement
support and a variety of programs in acost-effective manner.
• GMHC offers their packages of programs and services in 16 metro area
communities. By partnering with GMHC for these services, Richfield will
remain competitive in the metro area.
C. FINANCIAL
• The cost of services for 2010 is $7,000; unchanged since 2009.
• Funds are allocated for these services in the 2011 HRA budget.
D. 'LEGAL
• The Agreement has been reviewed by legal counsel.
IV. ALTERNATIVE RECOMMENDATION(S~
• The HRA can choose to direct staff to modify the scope of services or modify the
amount with GMHC.
• The HRA can choose to not approve the Agreement.
V. ATTAC~IMENTS
• Southside HousingResource Center Status Report (2010, to November)
• Copy of the Consultant Services Agreement
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
The Greater Metropolitan Housing Corporation
HousingResource Center - Southside
Richfield Summary Status Report
Monthly Tracking Report -November 2010
Previous 2010 TOTAL TO
Counseling Related Activities Year Totals Jan'30 Feb'10 Mar'10 Apr'10 May'10 Jun'10 July'10 Aug'10 Sept'30 Oct'10 Nov'10 Dec'10 TOTAL PATE
Home Buyer Information 10 0 0 0 1 0 0 1 0 0 1 0 0 3 13
Refinance/Satisfactions/Subordination 2 0 0 1 0 0 0 0 0 1 0 _
0 _
_
0 2 4
Construction Consultations (5) 195 9 4 2 4 3 _
8 6 1 3 0 2 0 42 237
Energy Assistance (1) 5 0 0 0 0 0 0 0 0 0 0 __
0 __
0 0 5
Mortgage Foreclosure Prevention 13 _
_
0 0 0 0 0 0 0 0 0 0 0 0 0 13
Home Improvement Information (2) 338 4 i 10 9 5 5 5 5 8 7 1 0 6
0 398
Rental/Emergency Housing Issues (3) ____ 14 __ 0 _ _ _
0 __ _
0 0 0 0 0 0 _
0 _
_ _
0 0 0 _
_
0 i4
Other 7 0 0 0 0 1 0 0 0 1 0 0 _
p _
2 9
MHFA Loan Products
Loan Applications Mailed 143 __ 0_ 1 6 2 3 _1_ 3 1 0 0 0 0 17 160
Loan Applications Recd 24 0 0 1 0 1 1 0 0 0 0 0 2 5 29
Loans Closed
13
0
0
1
0 --
1 _
0
0
0 _
-
0 _
__
1 _
_
0
0 _
3
16
TOTAL SERVICES PROVIDED 747 13 6 13 14 9 13 15 7 13 9 3 0 115 852
TOTAL CLIENTS SERVED 498 12 2 14 12 9 11 9 6 6 8 2 0 9.1 589
NOTE: These numbers reflect the number of CLIENTS serviced. In many instances a client will receive more than one service.
(1) ENERGY ASSISTANCE DENOTES REFERRALS TO SOCIAL SERVICE AGENCIES THAT PROVIDE MONETARY ASSISTANCE FOR ENERGY EXPENSES.
(2) HOME IMPROVEMENTS INCLUDES REFERRALS TO MHFA, CPED, PRIVATE LENDERS OR OTHERS FOR FINANCIAL INFORMATION ON HOME
(3) RENTAL/EMERGENCY HOUSING ISSUES IS A NEW CATEGORY AND WAS COMBINED WITH OTHER IN PREVIOUS YEARS.
(4) THIS CATEGORY INCLUDES ALL LOAN ADMINISTERED THROUGH THE HOUSING RESOURCE CENTERS INCLUDING MHFA PRODUCTS
_
- _
- _ _ _ _ _ _
(5) CONSTRUCTION CONSULTATION INCLUDE HOME VISITS AND TELEPHONE CONSULTATIONS ON RELATED MATTERS
~
- - - -- - _ _ _ --- -i _ _ - - -- - -- - _ .---
.^
1
4c -a
CONSULTANT SERVICES AGREEMENT
THIS IS AN AGREEMENT entered into the day of , 20_, by and
between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD, a Minnesota public body corporate and politic ("HRA"), and
GREATER METROPOLITAN HOUSING CORPORATION, a Minnesota non-profit
corporation ("Consultant").
RECITALS
A. The Consultant has a division called The Housing Resource Center ("HRC").
GMHC has agreed to provide certain Services through HRC (as defined below) in connection
with the HRA's housing program.
B. The HRA desires to hire the Consultant to render this technical, professional, and
marketing assistance in connection with housing programs in the HRA for the term as set forth in
this Agreement.
C. The Consultant is willing to provide such services on the terms and conditions set
forth herein.
In consideration of the foregoing recitals and following terms, conditions and mutual
promises contained herein, the parties agree as follows:
1. ScoAe of Services. The Consultant shall provide services as follows (the
"Services"):
a. Administer the following home improvement programs for residents and property
owners in the City of Richfield ("City"): Minnesota Housing Finance Agency's
Fix Up Fund, Community Fix Up Fund and Minnesota Housing Finance
Agency's Rental Rehab Program (collectively "MHFA programs") by:
1. Providing information about the MHFA programs, upon request;
2. Assisting the HRA in marketing the MHFA programs;
3. Receiving applications for the MHFA programs;
4. Processing applications for the MHFA programs;
5. Closing loans to qualified applicants in accordance with the applicable
requirements of the MHFA programs;
6. Overseeing the draw process for the funds for the MHFA programs,
including, as necessary, reviewing draws, reviewing the progress of the
work and collecting lien waivers and certificates of occupancy. The
Consultant may, for this purpose, rely on third-party representations and
certifications.
7. Providing monthly reports about the number of loans closed and the
balance in each of the MHFA programs.
fb.us.3166730.04
379104v2 RC 125-1
yG-3
b. Assist City residents and property owners considering rehabilitation, including
property visits, meet with homeowners and potential contractors, suggest
alternatives for rehabilitation to homeowners, educate homeowners on the
construction bid process, and assist homeowners to evaluate bids and work
completed and construction progress.
c. Provide HRC housing information to City residents and property owners,
including information on emergency assistance, housing rehabilitation, first time
homebuyers and limited rental information;
d. Assist the HRA in developing programs to purchase and rehabilitate homes;
e. Coordinate these services out of the Consultant's Minneapolis office; and
f. Have the Consultant's staff visit residences as determined necessary by the
Consultant and when requested by the H1tA.
2. Term. This Agreement shall be in full force and effect from January 1, 2011 and
shall continue through December 31, 2011, unless otherwise terminated as set forth below.
3. Compensation. For the services described in paragraphs lb through if of this
Agreement, the HRA shall pay to the Consultant Seven Thousand Dollars ($7,000.00) within
thirty (30) days after execution of this Agreement. For the services described in paragraph la of
this Agreement, the Consultant shall receive compensation for administering the MHFA
programs directly from the Minnesota Housing Finance Agency and not from the HRA.
4. Termination. Notwithstanding any other provision hereof to the contrary, this
Agreement may be terminated as follows:
a. The parties, by mutual written agreement, may terminate this Agreement at any
time in which case the parties shall agree to (as applicable) the amount of
compensation payable to the Consultant or the amount of compensation to be
returned to the H}:tA.
b. The HRA may terminate this Agreement upon the breach by the Consultant of
any of its material covenants contained herein, where such breach shall have
continued for a period of thirty (30) days following the receipt by the Consultant
of a written notice from the HRA, specifying the alleged breach; provided,
however, if the nature of anon-monetary breach is such that the Consultant
cannot reasonably cure same in the thirty (30) day period, the Consultant shall not
be deemed to be in breach if it commences to cure within the thirty (30) day
period, and diligently pursues same to completion within ninety (90) days
following receipt by the Consultant of such written notice. In the event of
termination by the HRA hereunder, the Consultant shall return a prorated portion
of its compensation to the H}2A. .
fb.us.3166730.04 2
379104v2 RC125-1
4~-y
c. The Consultant may terminate this Agreement upon the breach by the HRA of
any of its material covenants contained herein, where such breach shall have
continued for a period of thirty (30) days following the receipt by the H]tA of a
written notice from the Consultant, specifying the alleged breach; provided,
however, if the nature of anon-monetary breach is such that the HRA cannot
reasonably cure same in the thirty (30) day period, the HRA shall not be deemed
to be in breach if it commences to cure within the thirty (30) day period, and
diligently pursues same to completion within ninety (90) days following receipt
by the H}ZA of such written notice. In the event of termination by the Consultant
hereunder, the Consultant shall be entitled to retain the entire compensation fee
under this Agreement.
d. If the Consultant or the HRA (as applicable) (i) files a voluntary petition in
bankruptcy (ii) files a voluntary petition for reorganization under any bankruptcy
law, statute or regulation or other similar statute or regulation, (iii) is adjudicated
a bankrupt, (iv) makes an assignment for the benefit of creditors or applies for or
consents to the appointment of a receiver or trustee as part of or in conjunction
with a "creditor plan" with respect to any substantial part of its assets, or (v) a
receiver or trustee is appointed, or an attachment or execution levied with respect
to any substantial part of its assets, and said appointment is not vacated, or the
attachment or execution not released, within sixty (60) days, then this Agreement
shall, effective as of such date, without notice or further action by either party,
immediately terminate.
5. Insurance.
a. During the term of this Agreement, the Consultant -shall obtain and maintain
workers compensation, comprehensive general liability, and automobile liability
insurance. Comprehensive general liability insurance shall have an aggregate
limit of Two Million Dollars ($2,000,000.00) naming the HRA as an additional
insured.
b. Upon request by the H}ZA, the Consultant shall provide a certificate or certificates
of insurance relating to the insurance required. Such insurance secured by the
Consultant shall be issued by insurance companies licensed in Minnesota. The
insurance specified may be in a policy or policies of insurance, primary or excess.
c. Such insurance shall be in force on the date of execution of this Agreement and
shall remain continuously in force for the duration of this Agreement.
6. Indemnification.
a. Notwithstanding anything to the contrary in this Agreement, the H1ZA, its officers,
agents, and employees shall not be liable or responsible in any manner to the
Consultant, the Consultant's successors or assigns, the Consultant's subcontractors,
fb.us.3166730.04 3
379104v2 RC125-1
qc-S
cause of action of any kind, nature, or character, including intentional acts, arising
out of or by reason of the performance of this Agreement by the Consultant. The
Consultant, and the Consultant's successors or assigns, agree to protect, defend and
save the HRA, and its officers, agents, and employees, harmless from all third party
claims, demands, damages, and causes of action, to the extent caused by the
negligence or wrongful acts of the Consultant, and the costs, disbursements, and
expenses of defending the same, including but not limited to, attorneys fees,
consulting services, and other technical, administrative or professional assistance.
b. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or
limitation of any immunity or limitation on liability to which the HRA is entitled
under Minnesota Statutes, Chapter 466, or otherwise.
7. Assignment. This Agreement shall not be assigned, sublet, or transferred, in
whole or in part without the prior written approval of the HRA.
8. Conflict of Interest. The Consultant shall use best efforts to meet all
professional obligations to avoid conflicts of interest and appearances of impropriety in its work
for the HRA pursuant to this Agreement. In the event of a conflict, the Consultant, with the prior
written consent of the HRA, shall arrange for suitable alternative services.
9. Compliance with Laws. The Consultant shall comply with all applicable
Federal, State, and local laws, rules, ordinances, and regulations at all times and in the
performance of the services pursuant to this Agreement.
10. Notices. Any notices permitted or required by this Agreement shall be deemed
given when personally delivered or upon deposit in the United States mail, postage fully prepaid,
certified, return receipt requested, addressed to:
Consultant: Greater Metropolitan Housing Corporation
15 South 5th Street, Suite 710
Minneapolis, MN 55402
ATTN: Suzanne Snyder
HRA: Richfield Housing and Redevelopment Authority
6700 Portland Avenue
Richfield, MN 55423
ATTN: Michelle Lewis/Julie Urban
Or such other address as either parry may provide to the other by notice given in accordance with
this provision.
11. Entire Agreement. This Agreement, any attached exhibits and any addenda or
amendments signed by the parties shall constitute the entire agreement between the HRA and the
Consultant, and supersedes any other written or oral agreements between the HRA and the
fb.us.3166730.04 4
379104v2 RC125-1
4c-G
Consultant. This Agreement can only be modified in writing signed by the HRA and the
Consultant.
12. Third Party Rights. The parties to this Agreement do not intend to confer on
any third party any rights under this Agreement.
13. Counterparts. This Agreement may be signed in one or more counterparts but
all of which taken together shall constitute one instrument.
14. Choice of Law and Venue. This Agreement shall be governed by and construed
in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims
arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all
parties to this Agreement waive any objection to the jurisdiction of these courts, whether based
on convenience or otherwise.
15. Agreement Not Exclusive. The HRA retains the right to hire other housing
program consultants, in the I3RA's sole discretion.
16. Data Practices Act Compliance. Data provided to the Consultant or created by
the Consultant under this Agreement shall be administered in accordance with the Minnesota
Government Data Practices Act, Minnesota Statutes, Chapter 13, as amended.
[Signature Page FoZlowsJ
fb.us.3166730.04 5
379104v2 RC125-1
uc-7
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by
their duly authorized officials, this Agreement on the respective dates indicated below.
HRA:
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By:
Its: Chairperson
Date: , 20_.
By:
Its: Executive Director
Date: , 20_
CONSULTANT:
GREATER METROPOLITAN HOUSING CORPORATION
By:
Its: President
Date: , 20
fb.us.3166730.04 6
379104v2 RC125-1
AGENDA ITEM#: 4 p
REPORT #: 45
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 20, 2010
REPORT PREPARED BY:
REPORT PRESENTER:
70HN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
NAME, TITLE
70HN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE
~1
ITEM FOR HI2A CONSIDERATION:
Consideration of a resolution decertifying the Richfield Rediscovered Tax Increment Financing
Districts.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution decertifying the Richfield
Rediscovered Tax Increment Financing Districts (see resolution for
recise wording).
II. BACKGROUND
The annual review of Richfield's Tax Increment Financing (TIF) Districts was
conducted at the September 20, 2010 Richfield Housing and Redevelopment
Authority (HRA) meeting. As part of that presentation, HRA staff and financial
consultants from Ehlers and Associates recommended that the eleven Richfield
Rediscovered TIF Districts be decertified.
HRA staff and consultants informed the HRA that the eleven Richfield Rediscovered
TIF Districts have approximately $1,211,458 in their combined cash balance but
only a grand total of $570,000 in outstanding debt (Series 2002C General
Obligation TIF Bonds). Other than the outstanding debt service, there are no
additional costs or indebtedness that are forecast for the existing Richfield
Rediscovered TIF Districts. Staff suggested that sufficient funds (approximately
12202010 Richfield Rediscovered Decertification
$607,540 including fees) from the cash balance could be placed in escrow to make
payment on the outstanding debt service on the bonds and the remaining funds
($603,919) be used for other eligible redevelopment activities in 2011.
At the September 20, 2010 HRA meeting, the HRA directed staff to proceed with
the decertification of the eleven Richfield Rediscovered TIF Districts as
recommended. Because the Richfield Rediscovered Bonds (200X) were issued
by, and are backed by the General Obligation of, the City, staff proceeded to seek
approval from the City Council.
On November 9, 2010 the Richfield City Council adopted a Resolution authorizing
defeasance, prepayment and redemption of the Richfield Rediscovered Bonds and
the creation of an escrow account with which to temporarily hold funds for those
actions.
As the entity charged with the administration of TIF Districts in the City of Richfield,
the HRA has authority over the decertification of TIF Districts and the use of any TIF
funds resulting from the generation of TIF. The HRA is being asked, therefore, to
consider the attached Resolution decertifying the Richfield Rediscovered Tax
Increment Financing Districts.
III. BASIS OF RECOIVIlVIENDATION
A. POLICY
• There are sufficient funds available to meet all of the financial
obligations of the eleven Richfield Rediscovered TIF Districts.
• Staff is unaware of any other potential costs or debts associated with
the projects associated with the existing Richfield Rediscovered TIF
Districts.
• On September 20, 2010 staff and financial consultants recommended
the decertification of the Richfield Rediscovered TIF Districts.
• On November 9, 2010 the Richfield City Council voted unanimously to
defease the bonds associated with the Richfield Rediscovered TIF
Districts.
• The HRA is the body responsible for the decertification of TIF Districts.
B. CRITICAL TIMING ISSUES
• Decertification of the Richfield Rediscovered TIF Districts prior to the
end of the year would allow for all of the property taxes of the affected
properties to be levied at 100% of their current value (rather than
levied against their pre-TIF property values).
C. FINANCIAL
• The outstanding principal balance on the Richfield Rediscovered
Bonds (200X) is $570,000.
• As of October 31, 2010, the HRA had a combined cash balance in
both Richfield Rediscovered districts of $1,211,458. This balance is
adequate to defease the debt.
• Approximately $607,540 would be required to be placed into an
interest earning escrow account until February 2, 2012, at which time
the Bonds will be called and paid in full.
• At the time of the deposit, the City and HRA could take action to
decertify the TIF Districts, and have the property placed on the tax
rolls.
• Based on 2010 market values, decertifying the Richfield Rediscovered
TIF Districts in 2010 would place the property on the Pay 2011 tax
rolls at full value. This would have the effect to increase the City's tax
capacity by $153,573, which equates to approximately $76,523 in City
tax dollars.
• If the defeasance is approved, this would leave a cash balance of
approximately $603,918. This amount is subject to change depending
on the timing of the defeasance and the interest rate on the escrow.
• The HRA would then have the option to use this remaining balance of
cash in the following manner:
^ Retain the cash to assist with low to moderate income housing
projects. If this option were chosen the projects must qualify as
low to moderate income, per Minnesota Statutes. The projects
do not need to be in a current tax increment district.
^ Spend the cash on a project that will create jobs and commence
construction prior to July 1, 2011. Under legislation adopted on
April 1, 2010, the HRA could use the cash to provide
improvements,. loans, or assistance in any form to private
development as long as doing so will create or retain jobs in the
State. Under the legislation the cash must be expended by
December 31, 2011 and there are no restrictions on the type of
development.
^ A third option, which staff does not recommend and the City
Council is opposed to, would be to return the cash to the County
for redistribution. If the cash were returned to the County, the
County would redistribute the funds proportionately to the taxing
jurisdictions. The City would receive aone-time payment of its
portion of the cash estimated at $240,000. The use of the cash
would be unrestricted. ~ =
• Staff will bring these options back to the HRA at a future meeting with
recommendations to determine which option would best serve the
community and will keep the City Council informed of subsequent
actions.
D. LEGAL
• Legal counsel has been involved in all discussions regarding the
recommended actions and have reviewed the attached Resolution.
TERNATIVE
None.
ACHMENTS
V 1. PRINCIPAL PARTIES EXPECTED AT MEETING ~
• None.
40 - t
HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF RICHFIELD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
BEING A RESOLUTION APPROVING THE DECERTIFICATION OF THE
RICHFIELD REDISCOVERED A-1, B-1, A-2, B-Z, A-3, B-3, A-4, B-4, A-5,
B-5 AND RICHFIELD REDISCOVERED II TAX INCREMENT DISTRICTS
OF THE RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
WHEREAS, on various dates the Richfield Housing and Redevelopment Authority (the "HRA")
created it's Richfield Rediscovered A-1, B-1, A-2, B-2, A-3, B-3, A-4, B-4, A-5, B-5 and Richfield
Rediscovered II Tax Increment Financing Districts (the "Richfield Rediscovered TIF Districtsn)
within its Richfield Redevelopment Project Area (the "Project"); and
WHEREAS, as of December 30, 2010, hereof
Rediscovered TIF Districts have been pledged,
costs of the Project have been paid; and
all bonds and obligations to which the Richfield
have been paid in full or defeased and all other
WHEREAS, the HRA desires by this resolution to cause the decertification of the Richfield
Rediscovered TIF Districts after which all property taxes generated by property within the District
will be distributed in the same manner as all other property taxes.
NOW THEREFORE, BE IT RESOLVED by the HRA of the City of Richfield that the HRA's staff
shall take such action as is necessary to cause the County Auditor of Hennepin County to decertify
the Richfield Rediscovered TIF Districts as a tax increment districts and to no longer remit tax
increments from the district to the HRA contingent on the defeasance of the $1,045,000 General
Obligation Tax Increment Bonds, Series 200X.
DATED: December 20, 2010
Chair
ATTEST:
Secretary
(Seal)
AGENDA ITEM#: _ 5
REPORT #: 46
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 20, 2010
REPORT PREPARED BY:
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTC
JULIE URBAN, HOUSING SPECIALIST
NAME, TITLE
ITEM FOR HRA CONSIDERATION:
Consideration of a request for a subordination of a Housing and Redevelopment Authority
Apartment Remodeling Program loan at 6401 Pleasant Avenue.
I. RECOMMENDED ACTION:
By Motion: Approve a request for a subordination of the Apartment
Remodeling loan at 6401 Pleasant Avenue with the following
condition:
• That the mortgage be amended to encumber both 6401 and 6421
Pleasant Avenue.
II. BACKGROUND
In 1999 an Apartment Remodeling program loan was provided to the building at
6401 Pleasant Avenue. The loan of $11,567 helped to pay for new windows, doors,
siding, fascia and soffits in the 11-unit building. The loan is a 15-year deferred loan
with no interest and no payments.
The owner is interested in refinancing the mortgage on the building. The new
mortgage would also encompass the 11-unit building at 6421 Pleasant Avenue.
The Housing and Redevelopment Authority's (HRA) mortgage only encumbers the
building at 6401 Pleasant Avenue; the loan-to-value ratio (LTA would not meet the
122020106401 Pleasant Sub Appeal
KAREN BARYON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
HRA's subordination policy. In order to meet the HRA's required LTV of 80 percent;
the mortgage needs to be amended to include both properties. (see attached
Subordination Summary).
The owner also received a loan of $17,358 for the building at 6421 Pleasant
Avenue. That loan was repaid in 2000.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA's subordination policy limits the LTV of all superior debt plus
the HRA lien to no more than 80 percent of the documented market
value of the property.
• The policy also limits the number of subordinations to no more than
one other subordination in the past five years. Mr. Youngblood
requested and received a subordination in 2007 and in 2006.
B. CRITICAL TIMING ISSUES
• The owner would like to close on the new mortgage on December 22,
2010.
C. FINANCIAL
• The Apartment Remodeling program was funded through a Livable
Communities Grant from the Metropolitan Council.
D. LEGAL
• The HRA Attorney has reviewed the request and prepared the
Amendment to Mortgage.
IV. ALTERNATIVE RECOMMENDATION(S~
• Forgive the remaining three years on the term of the Apartment Remodeling
loan at 6401 Pleasant Avenue and provide a satisfaction of mortgage.
V. ATTACFIMENTS
• Subordination Summary
• Amendment to Mortgage
• Subordination
• Release of Mortgage (alternative recommendation)
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Jim Youngblood, owner of 6401 and 6421 Pleasant Avenue
5r
Subordination Summary
12/13/2010
Youngblood
6401 Pleasant Ave S
Apartment Remodeling Loan Date 7/27/1999
Existing Mortgage Balance - 6401 Pleasant $ 435,000
Existing Mortgage Balance - 6421 Pleasant $ 439,000
Estimated Settlement Charges $ 6,242
Cash from owner $ (131,242)
Summary of indebtedness
New Mortgage: $ 749,000
HRA Loan: $ 11,537
Totallndebtedness: $ 760,537
Combined Loan to Value ratio:
Totallndebtedness: $ 760,537 = 142%
6401 Appraisal Value: $ 535,000
Combined Loan to Value ratio with Amended Mortgage:
Totallndebtedness: $ 760,537 = 71%
6401 and 6421 Appraisal Value: $ 1,070,000
r:/cdadmin/housing/programs services/subordinations payoffs/Forms/Form Summary.xls
s-a
AMENDMENT TO MORTGAGE
Amendment to that. certain Mortgage from James P. Youngblood, a single person, as
"Mortgagor," to the Ilousing and Redevelopment Authority _in and for 'the City of
RicbfYeld; a public bow corporate and politic under the Iaws of Minnesota, as "Mortgagee,"
dated July 27, 1998 and recorded in the office of the Registrar of Titles 'Hennepin County
Recorder on January 13, 2000 as Document No. 3244839 (the "Mortgage").
This is a mortgab~-e amendment, as defined in Minnesota Statutes, Section 287.01, Subd 2, and
as such does not secu>"e a rew or an increased amount of debt
IT IS HERESY AGREED, by and between the parties, as follows:
1. That, in addition to the real property previously encumbered by the Mortgage, the
following described real property in Hennepin County, Minnesota is hereby also made subject to
the lien of.the above described Mortgage:
Lot 7, except the South 20.5 feet front and rear thereof, and the Southerly 41 feet,
front and rear of liot 8; all in Bloclc 5, Rearrangement of Nicollet Homes 2"d
Addition
2: The Mortgage shall otherwise continue in full force and effect, in accordance with
its terms.
IN WITNESS WHERnOF, the parties have caused this Amendment to be executed as of the
day of , 201 .
MORTGAGOR:
James P. Youngblood
_ 1
379440x2 JNS RC125-41
~5 - 3
STATE OF NIINNESOTA
ss..
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of ~ ~ ,
20~, by James P. Youngblood, a single person.
Notary Public
MORTGAGEE:
HOUSING AND. REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By:
Suzanne M. Sandahl
Its: Chairperson
By:
Steven L. Devish
Its: Executive Director
379440v2 JNS RC125-41 2
J r~
STATE OF MINNESOTA }
ss.. .
COUNTY OF HENNEPIN
The .foregoing was acknowledged before me this day of 20_, by
Suzanne M. Sandahl, the chairperson of the Housing and Redevelopment Authority in and for
the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf
of the corporation, Mortgagee. _
Notary Public -
STATE OF MINNESOTA }
ss..
COUNTY OF HENNEPiN
The foregoing was; acknowledged before me this day of 20_, by
Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and
for the City of Richfield, a public body corporate and politic under the Iaws of Minnesota, on
behalf of the corporation, Mortgagee.
Notary Public
This tnstruinent Drafted By:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402 (CAH}
3
379440x2 JNS RC125-41
_. _ - - _-__ _ -i
- _ -- _
-_
- _ - _
- -
S-S
{Reserved for Recording Data)
SUBORDINATION AGREEMENT
THIS AGREEMENT, made this 20~' day of December, 2010, by and between the Housing and
Redevelopment Authority in and for the City of Richfield, (the "HRA"), and JPMorgan Chase Bank, N. A., (the
"Mortgage Company").
WHEREAS, the HRA holds a lien: upon certain real estate in Hennepin County, Minnesota, described as: Lot 10
and the North 20.5 feet, front and rear of Lot 9, Block 5, "Rearrangement of Nicollet Homes 2"d Addition" Hennepin
County, Minnesota (the "Property" pursuant to a Apartment Remodeling Program Loan entered into the 27t" day
of J.ul~998, between James P~ Younablood a single person, (the "Borrower(s)") and the HRA; and filed for
record on the 13~' day of January, 2000, as Document No.3244839, in the Office of the Registrar of Titles,
Hennepin County, Minnesota.
WHEREAS, the Borrower(s) wish to mortgage the Property in favor of the Mortgage Company and the
Mortgage Company has requested that said mortgage have priority over existing liens.
THEREFORE, in consideration of the issuance of a new mortgage by the Mortgage Company, dated
2010, recorded 2010, as Document No. to
secure an indebtedness of $749,000.00 IT IS HEREBY AGREED that the mortgage by_James P. Younablood. a
single person, in favor of JPMora~n Chase Bank N. A , shall have priority aver the lien of the HRA referred to
herein.
HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF RICHFIELD
Steven L. Devich, Its Executive Director
Suzanne M. Sandahi, lts Chairperson
S- ~
STATE OF MINNESOTA
ss..
. . _:
COUNTY OF HENNEPIN_ - , -. _ ,
The foregoing instrument was acknowledged before me this day of , 2010, by Steven L. Devich
the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a
body corporate and politic under fh'e laws of Minnesota, on befialf ofi the Authority. . .
Notary Public .
STATE OF MINNESOTA
ss.. '
COUNTY OF HENNi/PIN
The foregoing instrument was acknowledged before me this day of- , 2010, by Suzanne M.
Sandahl the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota,
a body corporate and politic under'the laws of Minnesota, on behalf of the Authority. -
Notary Public
This document drafted by:
Richfield Housing and Redevelopment Authority in
and~or the City of Richfield, Minnesota
6700 Portland Avenue South
Richfield, MN 5542
612-861-9760
S/.~
RELEASE OF MORTGAGE
Date: , 2010
FOR VALUABLE CONSIDERATION, the real property in Hennepin County, Minnesota which is
described as Lot 10 and the North 20.5 feet, front and rear of Lot 9, Block 5, "Rearrangement of
Nicollet Homes 2nd Addition" is hereby released from the lien of the Mortgage, owned by the
undersigned, dated July 27, 1998, executed by James P. Youngblood, a single person, Mortgagor, to
Housing and Redevelopment Authority in and for the City of Richfield, as Mortgagee, and filed for
record January 13, 2000 as Document No. 3244839 in the Office of the Registrar of Titles of
Hennepin County, Minnesota.
Housing and Redevelopment Authority in and for the
City of Richfield
By
Its Chairperson
By
Its Executive Director
379496v1 CBRRC125-41
S-8
STATE OF NNfiNNNESOTA
} ss.
COUNTY OF HENNEI'IN _
The foregoing was acknowledged before me this day of , 2010, by
the Chairperson of the Housing and Redevelopment Authority in .and for the
City of Richfield, a public body corporate and politic under the laws of Minnesota; on behalf of the
corporation, Grantor.
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
STATE OF NIlNNESOTA
} ss.
COUNTY OF HENNEPIN
_ The foregoing was acknowledged before me this day of , 2010,
by ,the Executive Director, of Housing and ~Redeveloprrient Authority
in and for the City of Richfield, a public body corporate and politic under the laws of the State of
Minnesota, on behalf of the corporation, Grantor.
This document drafted by:
Kennedy & Graven Chartered
200 South Sixth St., Suite 470
Minneapolis, MN 55402_
612-337-9399 LMW
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
379496v1 CBRRC125~1
AGENDA ITEM#: 6
REPORT #: 47
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 20, 2010
REPORT PREPARED BY:
JOHN STARK COMMUNITY DEVELOPMENT
DIRECTOR
NAME, TITLE
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
JOHN STARK COMMUNITY DEVELOPMENT
DIRECTOR
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution adopting the 4th Amendment to the Contract for Private
Redevelo ment with Best Buy Co., Inc.
I. RECOMMENDED ACTION:
By Motion: Adopt a resolution adopting the 4th Amendment to the
Contract for Private Redevelopment with Best Buy Co., Inc.
II. BACKGROUND
In 2001 the City issued the $8,350,000 General Obligation (GO) Tax Increment
Bonds, Series 2001A for the purpose of financing the construction of the Penn
Avenue Bridge associated with the Best Buy Development. The source of
funding for these bonds was the Tax Increment Financing (TIF) derived from the
Best Buy Campus project. As the body which possesses administrative control
over TIF, the Richfield Housing and Redevelopment Authority (HRA) entered into
a Contract for Private Redevelopment with Best Buy (Contract) which, among
other items, defines and delineates the use of TIF.
376512v4 RC125-210
As was shared with the HRA and City Council during the past two months, City
and HRA staff, along with public financial advisors Ehlers & Associates, Inc.,
(Ehlers) have determined that a refinancing of the Penn Avenue Bridge bonds at
current interest rates would result in significantly reduced debt service payments.
Under current municipal bond interest rates, this refinancing will reduce the
principle and interest costs of paying this debt by approximately $738,000 (which
equates to an annual savings of approximately $57,000).
Under the terms of the existing Development Agreement between Best Buy and
the HRA, any TIF funds that exceeded the bridge bond debt service and a
capped payment to the HRA for reimbursement of administrative costs and
payment into the Housing and Redevelopment Fund would be provided to Best
Buy. Best Buy has generously offered, however, to amend the Development
Agreement in a way that allows 100% of the savings resulting from this band
refinance to go into the Housing and Redevelopment Fund.
The action currently being considered is a resolution approving the 4th
Amendment to the Contract for Private Redevelopment with Best Buy. Among
other provisions, this Amendment states that "the debt service savings
determined for each payment date will be included in the amount of Tax
Increment to be deposited to the Housing and Redevelopment Fund."
This proposed Amendment to the Contract is one of several steps necessary to
refinance the bonds (see attached schedule). The City Council adopted a
resolution authorizing the sale of the bonds at their November 9, 2010 meeting
and is scheduled to award the bond sale at their December 14, 2010 meeting. At
the November 15, 2010 HRA Meeting, the HRA approved a modified TIF Pledge
Agreement pertaining to the pledging of TIF funds for the debt service of the
Penn Avenue Bridge. If the HRA approves the attached Resolution, all public
actions relating to the Penn Bridge Bonds refinancing, and resulting additional
TIF into the Housing and Redevelopment Fund, will be complete. The use of
these funds would be subject to later HRA approval as part of budgeting the use
of the Housing and Redevelopment Fund.
III. BASIS OF RECOMMENDATION
A. POLICY
• City/HRA, staff and Ehlers have concluded that an action by the
City of Richfield to refinance the Penn Avenue Bridge Bonds GO
TIF Bonds Series 2001A would result in significant savings due to
favorable interest rates.
• Best Buy has agreed to amend their Contract for Private
Redevelopment with the HRA in a manner that allows 100% of
these savings to be deposited into Richfield's Housing and
Redevelopment Fund.
376512v4 RC125-210
B. CRITICAL TIMING ISSUES
• The Contract must be amended in a timely manner in order for
Hennepin County to allocate February 2011 TIF payments in the
manner being contemplated.
C. FINANCIAL
• Under current municipal bond interest rates, it is estimated that this
refinancing would reduce the principle and interest costs of paying
this debt by approximately $738,000 (which equates to an annual
savings of approximately $57,000).
• These savings are anticipated to become additional funding for the
HRA's Housing and Redevelopment Fund (subject to an amended
development agreement with Best Buy); the use of which will be
determined in the HRA's budgeting process.
D. LEGAL
• City/HRA legal counsel has been involved in every step of this
process and drafted the attached Resolution and Contract
Amendment.
IV. ALTERNATIVE RECOMMENDATION(S~
• .None.
V. ATTACHMENTS
• Resolution adopting the 4th Amendment to the Contract for Private
Redevelopment with Best Buy Co., Inc.
• 4th Amendment to the Contract for Private Redevelopment with Best Buy
Co., Inc.
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• Jason Woods, Senior Treasury Manager, Best Buy Co., Inc.
376512v4 RC125-210
~-i
HRA RESOLUTION NO.
RESOLUTION APPROVING
FOURTH AMENDMENT
CONTRACT FOR PRIVATE REDEVELOPMENT
BE IT RESOLVED, by the Board of Commissioners of the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota {the "HRA") as follows:
WHEREAS, the HRA and Best Buy Company, Inc. ("Best Buy") did on or about March
28, 2000 enter into an agreement entitled Contract for Private Redevelopment" (the "Contract"),
calling for the redevelopment of an area of land (the "Property") lying within the City of Richfield;
and
WHEREAS, the HRA and Best Buy did on or about November 27, 2000, February 20,
2001, and March 5, 2003, enter into agreements entitled, First Amendment to Contract for
Private Redevelopment (the "First Amendment"), Second Amendment to Contract for Private
Redevelopment (the "Second Amendment"), and Third Amendment to Contract for Private
Redevelopment (the "Third Amendment") respectively, which amended the Contract; and
WHEREAS, the City of Richfield (the "City") previously issued its $8,350,000 General
Obligation Tax Increment Bonds, Series 2001A (the "TIF Bonds") in order to finance a portion of
the cost of the Penn Avenue bridge project which was related .to the redevelopment of the
Property and the principal of and interest on such TIF Bonds are payable from Available Tax
Increment (as defined in the Contract); and
WHEREAS, for the purposes of achieving debt service savings on the TIF Bonds, the
City has determined to issue Refunding TIF Bonds (as defined below), the proceeds of which
will be applied to the redemption and prepayment of the TIF Bonds; and
WHEREAS, Best Buy has agreed that the HRA will keep any debt service savings
realized by refunding the TIF Bonds and such savings will be deposited to the Housing and
Redevelopment Fund; and
WHEREAS, the actions described above necessitate additional modifications to the
Contract; and
WHEREAS, the HRA has been presented with a proposed amendment to the Contract
entitled "Fourth Amendment to Contract for Private Redevelopment"; and
WHEREAS, the HRA has reviewed and is familiar with the proposed amendment to the
Contract, and is satisfied that the terms thereof carry out the intentions of the parties, and are
necessary and appropriate.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the
Housing and Redevelopment Authority in and for the City of Richfield, Minnesota that:
1. The proposed Fourth Amendment to Contract for Private Development is hereby
approved in all respects.
376512v4 RC125-210
/~ r
2. The Executive Director and Board Chair are hereby authorized to execute and
deliver the Fourth Amendment to Contract for Private Development in substantially the form on
file with the HRA, with such additions, deletions, and other changes as are approved by the
Executive Director and Board Chair. The Executive Director and Board Chair are further
directed to take all steps and do all things necessary to effectuate the provisions of the Fourth
Amendment to Contract for Private Development.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota on this 20th day of December, 2010.
Suzanne Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
376512v4 RC125-210
(O
FOURTH AMENDMENT
TO
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made and entered into as of the day of , 2010,
by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic
(the "HRA"), and BEST BUY CO., INC., a Minnesota corporation (the "Redeveloper").
WITNESSETH:
WHEREAS, the parties hereto did on or about March 28, 2000 enter into an
agreement entitled, Contract for Private Redevelopment, (the "Contract"), calling for the
redevelopment of an area of land (the "Property") lying within the City of Richfield; and
WHEREAS, the parties hereto did on or about November 27, 2000, February 20,
2001, and March 5, 2003, enter into agreements entitled, First Amendment to Contract
for Private Redevelopment (the "First Amendment"), Second Amendment to Contract
for Private Redevelopment (the "Second Amendment"), and Third Amendment to
Contract for Private Redevelopment (the "Third Amendment") respectively, which
amended the Contract; and
WHEREAS, the City of Richfield (the "City") previously issued its $8,350,000
General Obligation Tax Increment Bonds, Series 2001A (the "TIF Bonds") in order to
finance a portion of the cost of the Penn Avenue bridge project which was related to the
redevelopment of the Property and the principal of and interest on such TIF Bonds are
payable from Available Tax Increment (as defined in the Contract); and
WHEREAS, for the purposes of achieving debt service savings on the TIF
Bonds, the City has determined to issue Refunding TIF Bonds (as defined below), the
proceeds of which will be applied to the redemption and prepayment of the TIF Bonds;
and
. WHEREAS, the Redeveloper has agreed that the HRA will keep any debt service
savings realized by refunding the TIF Bonds and such savings will be deposited to the
Housing and Redevelopment Trust Fund; and
WHEREAS, the semi-annual debt service savings realized by refunding the TIF
Bonds will be determined by the City's financial advisor on the date of sale of the TIF
Refunding Bonds (as defined herein) by subtracting each semi-annual principal and
interest payment due and owing on the TIF Bonds after the redemption date of the TIF
Bonds (anticipated to be August 1, 2011) through the original life of those bonds for
each payment date (each February 1 and August 1) from each semi-annual principal
376512v4 RC125 210
`° "
and interest payment due and owing on the TIF Refunding Bonds for each payment
date during the same time period; and
WHEREAS, the debt service savings determined for each payment date will be
included in the amount of Tax Increment to be deposited to the Housing and
Redevelopment Trust Fund and will not be includable in Available Tax Increment; and
WHEREAS, due to the actions described above, additional modifications to the
Contract should be made; and
NOW, THEREFORE, based upon the mutual covenants and undertakings
hereinafter, and in the Contract provided, the parties hereto stipulate and agree as
follows:
I. The WHEREAS clauses set forth above are incorporated into this Fourth
Amendment to Contract for Private Redevelopment and confirmed in all respects.
II. The HRA acknowledges that the payments of interest and principal on the
Note (as defined in the Contract), which are payable to the Redeveloper, are due and
owing semi-annually on February 1 and August 1 pursuant to the terms and conditions
set forth in the Contract.
III. The Contract is hereby amended in the following respects:
Section 1.1 of Contract is amended to include the following definition:
"TIF Refunding Bonds" means any bonds issued by the City to refund the TIF Bonds or
any bonds issued by the City to further refund such bonds.
2. Exhibit B of the Third Amendment is deleted and replaced in its entirety by
the Exhibit B attached hereto.
After giving effect to the amendments described above, the definition of
"Available Tax Increment" found in Section 1.1 of the Third Amendment (which
amended Section 1.1 of the Contract) and the Exhibits referenced therein, shall be as
follows (all Exhibit are attached hereto):
"Available Tax Increment" for the purpose of the Note means the Tax Increment
received with respect to the Development Property after first deducting there from,. and
in the following order: i) the amounts shown on the attached Exhibit A, "Housing and
Redevelopment Trust Fund", ii) for the reimbursement of the- HRA's administrative
costs ("Administrative Fund") either the amounts shown on the attached Exhibit B, or, in
any year in which the assessor's estimated market value for the Development Property
exceeds by 2% the assessor's estimated market value for the preceding year, the
amounts shown on Exhibit C. Notwithstanding the foregoing, in the event the
assessor's estimated market value for the Development is greater than
376512v4 RC125-210
~s
$118,571,000.00 for the 2003 assessment (2004 taxes) the amounts shown on
Exhibit C will be used throughout the term of the contract. In the event that the amounts
shown on Exhibit B are used as specified above, said amounts will only be used until
the present value (5% rate) of all previous payments equals $500,000, and thereafter
the annual amount will be only in accordance with Exhibit C. Regardless of whether
payments are made in accordance with Exhibit B (and regardless of the present value
shown on Exhibit B), or Exhibit C, or any combination of Exhibits B and C, said
payments will only be made until the present value (5% rate) of all payments equals
$1,000,000; iii) any amount necessary to pay principal and interest on the TIF Bonds or,
subject to the provisions of Section 3.5, subd. 3, any TIF Refunding Bonds.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed in their behalf by their authorized representatives on or as of the date first
above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
By
Its Vice-Chair
Its Executive Director
376512v4 RC125-210
/_ r
STATE OF MINNESOTA
ss..
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of
2010, by and ,the Vice-Chair and Executive
Director, respectively, of the Housing and Redevelopment Authority in and for the City of
Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the
Authority.
Notary Public
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
376512v4 RC125 214
-~
BEST BUY CO., INC.
By:
Its:
STATE OF MINNESOTA
ss..
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of
2010, by ,the of Best Buy Co.,
Inc., a Minnesota corporation, on behalf of the corporation.
Notary Public
376512v4 RC125-210
~-8
EXHIBIT A TO FOURTH AMENDMENT
Housing and TIF
Redevelopment .Refunding
Beginning Period Trust Bond
Fund Base Savings
Yrs. Mth. Yr.
0.0 1-Feb 2001 0
0.5 1-Aug 2001 0
1.0 1-Feb 2002 0
1.5 1-Aug 2002 0
2.0 1-Feb 2003 0
2.5 1-Aug 2003 0
3.0 1-Feb 2004 (224,084)
3.5 1-Aug 2004 (224,084)
4.0 1-Feb 2005 (228, 801)
4.5 1-Aug 2005 (228, 801)
5.0 1-Feb 2006 (233,598)
5.5 1-Aug 2006 (233,598)
6.0 1-Feb 2007 (238,479)
6.5 1-Aug 2007 (238,479)
7.0 1-Feb 2008 (243,443)
7.5 1-Aug 2008 (243,443)
8.0 1-Feb 2009 (248,493)
8.5 1-Aug 2009 (248,493)
9.0 1-Feb 2010 (253,631)
9.5 1-Aug 2010 (253,631)
10.0 1-Feb 2011 (258,857)
10.5 1-Aug 2011 (258,857)
11.0 1-Feb 2012 (264,173) *~`
11.5 1-Aug 2012 (264,173)
12.0 1-Feb 2013 (269, 581)
12.5 1-Aug 2013 (269,581)
13.0 1-Feb 2014 (275,082)
Total Amount
to Housing and
Redevelopment
Trust Fund
A-1
376512v4 RC125-210
~~q
Housing and TIF Total Amount
Redevelopment Refunding to Housing and
Begin ning Period Trust Bond Redevelopment
Fund Base Savings Trust Fund
Yrs. Mth. Yr.
13.5 1-Aug 2014 (275,082)
14.0 1-Feb 2015 (280,678)
14.5 1-Aug 2015 (280,678)
15.0 1-Feb 2016 (286,370)
15.5 1-Aug 2016 (286,370)
16.0 1-Feb 2017 (292,161)
16.5 1-Aug 2017 (292,161)
17.0 1-Feb 2018 (298, 051)
17.5 1-Aug 2018 (298, 051)
18.0 1-Feb 2019 (304,044)
18.5 1-Aug 2019 (304, 044)
19.0 1-Feb 2020 (310,139)
19.5 1-Aug 2020 (310,139)
20.0 1-Feb 2021 (316,340)
20.5 1-Aug 2021 (316,340)
21.0 1-Feb 2022 (322,647)
21.5 1-Aug 2022 (322,647)
22.0 1-Feb 2023 (329,064)
22.5 1-Aug 2023 (329,064)
23.0 1-Feb 2024 (335, 591)
23.5 1-Aug 2024 (335, 591)
24.0 1-Feb 2025 (342,231)
24.5 1-Aug 2025 (342, 231)
25.0 1-Feb 2026 (348,985)
25.5. 1-Au 2026 348,985)
13,009,042)
Present Value 7,000,036
Present Value Rates 5.00% 5.00% 5.00%
** Date debt service savings from TIF Refunding Bonds Commences; blank columns will be completed toiiowing the
sale of the TIF Refunding Bonds.
A-2
376512v4 RC125-210
Cam- ~~
EXHIBIT B TO FOURTH AMENDMENT
Beginning Period
Yrs. Mth. Yr.
0.0 1-Feb 2001
0.5 1-Aug 2001
1.0 1-Feb 2002
1.5 1-Aug 2002
2.0 1-Feb 2003
2.5 1-Aug 2003
3.0 1-Feb 2004
3.5 1-Aug 2004
4.0 1-Feb 2005
4.5 1-Aug 2005
5.0 1-Feb 2006
5.5 1-Aug 2006
6.0 1-Feb 2007
6.5 1-Aug 2007
7.0 1-Feb 2008
7.5 1-Aug 2008
8.0 1-Feb 2009
8.5 1-Aug 2009
9.0 1-Feb 2010
9.5 1-Aug 2010
10.0 1-Feb 2011
10.5 1-Aug 2011
11.0 1-Feb 2012
11.5 1-Aug 2012
12.0 1-Feb 2013
12.5 1-Aug 2013
13.0 1-Feb 2014
13.5 1-Aug 2014
14.0 1-Feb 2015
14.5 1-Aug 2015
Admin
Fund
0
0
0
0
0
0
(58,139)
(58,139)
(59,311)
(59,311)
(60,502)
(60,502)
(61,714)
(61,714)
(62,947)
(62,947)
(64,202)
(64,202)
(65,478)
{65,478)
(66,776)
(66,776)
(68,096)
(68,096)
(69,439)
(69,439)
(70,805)
(70,805)
(72,195)
(72,195)
B-1
376512v4 RC125-210
~-ii
Beginning Period Admin
Fund
Yrs. Mth. Yr.
15.0 1-Feb 2016 (73,609)
15.5 1-Aug 2016 (73,609)
16.0 1-Feb 2017 (75,047)
16.5 1-Aug 2017 (75,047)
17.0 1-Feb 2018 (76,510)
17.5 1-Aug 201$ (76,510)
18.0 1-Feb 2019 (77,999)
18.5 1-Aug 2019 (77,999)
19.0 1-Feb 2020 {79,513)
19.5 1 Aug 2020 {79,513)
20.0 1-Feb 2021 (81, 053)
20.5 1-Aug 2021 (81, 053}
21.0 1-Feb 2022 (82,619}
21.5 1-Aug .2022 (82,619)
22.0 1-Feb 2023 ~ (84,213)
22.5 1-Aug 2023 (84,213)
23.0 1-Feb 2024 (85,834)
23.5 1-Aug 2024 (85,834)
24.0 1-Feb 2025 (87,483)
24.5 1-Aug 2025 (87,483)
25.0 1-Feb 2026 (89,161)
25.5 1-Au 2026 89,161
3,345,291
Present Value (1,802,784
RC125-210
C-2
376512v4 RC125-210
~-ia
EXHIBIT C TO FOURTH AMENDMENT
Beginning Period
Yrs. Mth.
Yr. Admin
Fund
0.0 1-Feb 2001 0
0.5 1-Aug 2001 0
1.0 1-Feb 2002 0
1.5 1-Aug 2002 0
2.0 1-Feb 2003 0
2.5 1-Aug 2003 0
3.0 1-Feb 2004 (32,012)
3.5 1-Aug 2004 (32,012)
4.0 1-Feb 2005 (32,686)
4.5 1-Aug 2005 (32,686)
5.0 1-Feb 2006 (33,371)
5.5 1-Aug 2006 (33, 371)
6.0 1-Feb 2007 (34,068)
6.5 1-Aug 2007 (34,068)
7.0 1-Feb 2008 (34;777)
7.5 1-Aug 2008 (34,777)
8.0 1-Feb 2009 (35,499)
8.5 1-Aug 2009 (35,499)
9.0 1-Feb 2010 (36,233)
9.5 1-Aug 2010 (36,233)
10.0 1-Feb 2011 (36,979)
10.5 1-Aug 2011 (36,979)
11.0 1-Feb 2012 (37,739}
11.5 1-Aug 2012 (37,739)
12.0 1-Feb 2013 (38, 511)
12.5 1-Aug 2013 (38, 511)
13.0 1-Feb 2014 (39,297)
13.5 1-Aug 2014 (39,297)
14.0 1-Feb 2015 (40,097)
14.5 1-Aug 2015 (40,097)
15.0 1-Feb 2016 (40,910)
15.5 1-Aug 2016 (40,910)
16.0 1-Feb 2017 (41, 737)
16.5 1-Aug 2017 (41, 737)
12202010 Best Buy Contract Amendment
(D
Beginning Period Admin
Fund
Yrs. Mth. Yr.
17.0 1-Feb 2018 (42,579)
17.5 1-Aug 2018 (42,579)
18.0 1-Feb 2019 (43,435)
18.5 1-Aug 2019 (43,435)
19.0 1-Feb 2020 (44,305)
19.5 1-Aug 2020 (44,305)
20.0 1-Feb 2021 (45,191)
20.5 1-Aug 2021 (45,191)
21.0 1-Feb 2022 (46,092)
21.5 1-Aug 2022 (46,092)
22.0 1-Feb 2023 (47,009)
22.5 1-Aug 2023 (47,009)
23.0 1-Feb 2024 (47,941)
23.5 1-Aug 2024 (47,941)
24.0 1-Feb 2025 (48,890)
24.5 1-Aug 2025 (48, 890)
25.0 1-Feb 2026 (49, 855)
25.5 1-Au 2026 (49,855)
1,858,425
Present Value (1,000,000)