03-20-06 Regular
CITY OF RICHFIELD, MINNESOTA
MONDA V, MARCH 20, 2006
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
1. Approval of minutes of (1) Special Concurrent HRA/City Council/Planning Commission
Worksession of February 21, 2006; (2) Regular HRA Meeting of February 21,2006; (3)
Special HRA Meeting of February 27,2006; and (4) Special Concurrent HRA/City
Council/Planning Commission Worksession of February 27,2006
Notes:
2. HRA approval of agenda
3. 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 HRAdiscussion and action. All
items listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of disclosure notice submitted by City of Richfield employee
applying for rent assistance through Kids @ Home Program S.R. No. 10
Notes:
4. Public hearing regarding resolution authorizing sale of 6329-14th Avenue to Greater
Metropolitan Housing Corporation for single family home development
Staff Report No. 11
Notes:
5. Consideration of resolution approving concept plans for Cedar Point redevelopment project
Staff Report No. 12
Notes:
6. Executive Director report
Notes:
7. 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.
AGENDA ITEM # 3A
REpORT # 10
......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 20, 2006
REpORT PREPARED By:
L YNNETTE CHAMBERS, LEASED HOUSING
SPECIALIST
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED By EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a Disclosure Notice for a City of Richfield employee applying for rent
assistance through the Kids @ Home Proaram.
I. RECOMMENDED ACTION:
By Motion: Accept attached Disclosure Notice submitted by a City of
Richfield employee applying for rent assistance through the Kids @
Home Program.
I II. BACKGROUND I
. Richfield Housing and Redevelopment Authority (HRA) staff administers a local
rent assistance program entitled Kids @ Home Program. Eligible families are
encouraged to apply for the program. After their eligibility is verified, the HRA
provides rental assistance for the family under the terms and conditions of the
program. The rental assistance payments are paid directly to the
owner/manager of the property. Currently, the Kids @ Home Program has
openings and has not turned away any qualified families.
. An employee of the City of Richfield has indicated they are interested in
receiving rent assistance under the Kids @ Home Program. They have provided
the HRA with verifications of their income and expenses, which fit within
032006 Disclosure Notice
program criteria. HRA staff contacted Kennedy & Graven regarding possible
conflict of interest. Legal counsel opined that according to Minnesota Statue,
Section 469.009 the employee must file a written Disclosure Notice with the
HRA describing the matter requiring action and the nature of the potential
conflict. .
. Upon acceptance of the Disclosure Notice by the HRA, staff will proceed with
the steps to complete the eligibility requirement for the family. The person
applying to receive rental assistance under the Kids @ Home Program will not
have access to their file. Another staff person will complete the rental
calculations and annual paperwork required determining the employee's
continued eligibility under the program guidelines.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. To provide support to families eligible to participate in the Kids @
Home Program.
I B. CRITICAL ISSUES I
. The employee must file a Disclosure Notice and the HRA must accept
it or the employee will not be able to receive rent assistance under the
Kids @ Home Program.
I C. FINANCIAL I
. Funds are available based on the approved HRA budget.
I D. LEGAL I
. Legal counsel has prepared a memorandum, which is attached.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Do not accept the employee's Disclosure Notice.
. Delay consideration until a future meeting.
I V. ATTACHMENTS
. Disclosure Notice
. Kennedy & Graven memorandum
. Kids @ Home Program summary sheet
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
I, Kristi Amend, respectfully request I be allowed to apply for the Kids @ Home
program as I meet the following criteria for the program:
1. I have a child enrolled in the Richfield School District
2. I am currently under lease in Richfield
3. I work at least 24 hours a week
4. I am income eligible.
There is a potential conflict with my participation on the program as I also help
administer the Kids @ Home program for the Richfield HRA.
K~'u~' ILfY\~~
"8 -/L/-ol1.
470 U. S. Bank Plaza
200 South Sixth Street
Minneapolis MN 55402
&
(612) 337-9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
CHARTERED
MEMORANDUM
3/14/06
To: Lynnette Chambers, Leased Housing Specialist
From: John Dean
Subject: Possible Conflict of Interest.
You asked for our opinion regarding the steps to be taken in a situation in which an
individual is both an employee ofthe HRA whose job responsibilities include administration
of a new rental assistance program; and is a potential recipient of funds from that program.
My comments are based on the following assumptions:
1. The program is funded entirely by local housing trust fund monies.
2. The recipient selection process is such that the employee would not be able
to influence the selection process once the applications have been received
and determined to qualify. I further assume that the employee would have
no ability to modify any other applications so as to cause those applications
not to qualify.
Minnesota Statutes, Section 469.009 contains the provisions which govern potential
conflict situations for HRA employees. In essence, the statute requires that HRA
employees file a written disclosure statement with the HRA describing the matter
requiring action and the nature of the potential conflict. The statement is to be made
not later than one week after the employee becomes aware of the potential conflict;
and the HRA is required to enter the disclosure upon the minutes of the next HRA
meeting.
Following the disclosure, the employee's supervisor is required to assign the matter
to another employee who does not have a conflict. The employee with the potential
conflict may not thereafter take part in any manner in the selection process.
The statute also provides penalties for failure to comply.
The involvement of the HRA Board is to accept or reject the disclosure notice. No
additional action is required of the Board.
284584v2 JBD RC125-1
I have reviewed the proposed Disclosure Notice, and conclude that it complies with
the requirements of the referenced statute.
Please advise if you require any further input.
284584v2 JBD Rel25-!
Kid @ Home - Rental As istance Program
Kids @ Home is a 36-month rent assistance program. Families have a transition period of 6 months to 24 months to
receive additional (minimal rent assistance) based on individual family's need at the end of 36-month program.
Criteria for families:
. have a child or children in Richfield schools (K - 12)
. child or children need to be enrolled and attend a Richfield school for 60 days prior to referral to program
. one parent is either employed or in an approved training program
. independently live in the city of Richfield
. not receiving any other housina assistance
. annual income must fall at or below income guideline
. rental payments must be current with landlord
. families must be willing to work with a social service agency to set up a goal setting plan and work towards
goals established
Income Guidelines: This program focuses on working households between 30% and 50% of
median income, an under served population. All households at incomes less than 50% of median
ar eligible.
Income Limits Effective 03/08/06
50% of median family income
Persons
2
3
4
5
6
7
8
Income
$31 ,400
$35,350
$39,250
$42,400
$45,550
$45,650
$51,800
Housing payment is the lesser of:
. Payment standard (or gross rent) less 30% of the family's income (following Section 8 guidelines), or
. Flat payment - safety net medium level of subsidy (job loss, job change, medical leave, etc.)
3' Year Flat Payment
Bedroom Size
One
Two
Three
Four
$425.00
$475.00
$600.00
$700.00
$375.00
$425.00
$550.00
$650.00
$325.00
$375.00
$500.00
$600.00
Social Service Component
A qualified social worker or agency provider (Storefront) will:
. Assess the families needs
. Complete goal setting with the family
. Refer family to local resources
. Conduct case management if necessary, and;
. Maintain regular contact with the family and schools to determine progress on goals
Interested families should call Richfield HRA at 612-861-9770 and ask about the Kids @ Home
Program.
Referral to the Kids @ Home Program are not accepted during the month of June, July and
August.
AGENDA ITEM # 4
REpORT # 11
....
STAFF REpORT
RICHFIELD
I
I
I
I
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 20, 2006
REpORT PREPARED By:
VANESSA HAIGHT, CD ASSISTANT
COORDINATOR
NAME, TITLE
REpORT PRESENTER:
BRUCEPALMBORG,COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Public hearing regarding the sale of 6329 14th Avenue to Greater Metropolitan Housing
Corporation for single familv home development.
I. RECOMMENDED ACTION:
By Motion: Conduct and close the public hearing and by motion:
Adopt the attached resolution authorizing the sale of 6329 14th
Avenue to Greater Metropolitan Housing Corporation for single family
home development.
I II. BACKGROUND I
The Housing and Redevelopment Authority (HRA) purchased the substandard
property at 6329 14th Avenue for single family redevelopment. It is proposed that
the HRA sell the property to Greater Metropolitan Housing Corporation (GMHC) to
build a new single family home under the New Home Program. Established in
1978, the New Home Program allows the HRA to purchase substandard property,
demolish the existing home and sell the property to a nonprofit developer with plans
to build a new construction affordable home. 43 new homes have been constructed
under this program.
032006 6329 14th
The development agreement between the HRA and GMHC is similar to those used
for past single family home developments. The following items are those which
differ from a typical HRA development agreement:
. The 1,600 sq. ft. three bedroom, two bathroom home will have a property value
upon completion of approximately $250,000. A copy of the proposed Contract
for Development is attached.
. The sale price of the property from the HRA to GMHC is $1. The development
agreement will be recorded against the property, which would be released by a
Certificate of Completion upon construction completion.
. GMHC will require their end buyer to execute a $50,500 second mortgage to the
Housing and Rede~elopment Authority.
The completed home will be sold to a family earning 80% of area median income.
Upon resale the home will be priced at $199,500 with a second mortgage payable
to the HRA of $50,500. The home will be marketed to a family of four to six earning
between $59,600 and $66,500 per year. The estimated monthly payment (PITI) will
be $1,600.
The property is located within the 65 DNL contour and is affected by airport noise.
The home is being upgraded in the type of windows, doors, siding and the type and
amount of insulation similar to Metropolitan Airports Commission (MAC's) Part 150
Program. The $21,950 cost of these improvements would be funded by the HRA
Development Account.
A neighborhood meeting was held on October 18, 2005. Staff planned to present a
construction schedule, details on the sale of the home, and conceptual building
plans. The meeting had no attendance. Staff prepared a mailing to all those invited
to the neighborhood meeting. The mailing included a construction schedule, details
on the sale of the property, and conceptual building plans. No comments were
received.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. GMHC has evidenced experience, capability and financial security.
. The HRA acquired the property with both federal CDBG funds and
other HRA funds to initiate an affordable housing opportunity.
. The terms of the Development Agreement have been finalized and are
in conformance with program guidelines.
I B. CRITICAL ISSUES I
. Demolition of existing home will occur in April.
. The existing two-car garage will remain but will be restored to match
the new home.
. GMHC would begin construction in early May and sell the home to a
buyer in October of 2006.
GMHC has built a number of similar homes in other communities.
This will be the first GMHC home in Richfield.
I C. FINANCIAL I
. $90,000 in CDBG funds were used by the HRA to acquire the property
as part of the New Home Program.
. $50,000 was contributed by the HRA to acquire the property with
repayment to be secured at the time of sale of the completed home.
. The cost to construct the home and not to exceed sale of price is
$199,500.
. The appraised value is estimated to be $250,000.
. The new home would not be affordable if HRA did not contribute
separate funds for noise attenuation.
I D. LEGAL I
. Notice of public hearing on the sale of the property was published
March 2,2006 in the Sun-Current.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Do not proceed with the Development Agreement with GMHC and direct staff
to find another buyer.
I V. ATTACHMENTS
. Resolution.
. Photo of 6329 14th Avenue.
. Contract for Development.
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I
. Bill Buelow, Director of Construction, GMHC
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
632914TH AVENUE TO GREATER METROPOLITAN HOUSING CORPORATION IN
ACCORDANCE WITH A DEVELOPMENT AGREEMENT
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in
furtherance of the New Home Program adopted by the HRA, said real property being
described as follows:
Address
6329 14th Avenue
Legal
Lot 17, Block 2, Nokomis Gardens Rearrangement of Blocks 1,
2, 3, 4 and 5 Girard Parkview
WHEREAS, the HRA is authorized to sell real property within its area of operation
after public hearing; and
WHEREAS, a developer, Greater Metropolitan Housing Corporation (GMHC), has
been identified as the purchaser of the described property and in accordance with a
Development Agreement; and
WHEREAS, a public hearing has been held after property public notice.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. A public hearing has been held and 6329 14th Avenue is authorized to be sold for
$1.00 to Greater Metropolitan Housing Corporation in accordance with a
Development Agreement with the HRA.
2. That the HRA accept a $50,500 second mortgage lien executed by GMHC, and
upon sale to an end buyer, the HRA release the lien with GMHC and accept a
second mortgage lien executed by the end buyer.
3. The Chairperson and Executive Director are authorized to execute a Contract for
Private Development and other agreements as required to effectuate the sale to
Greater Metropolitan Housing Corporation.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of March, 2006.
Suzanne Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
0320066329 14th
CONTRACT FOR DEVELOPMENT
Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
and
GREATER METROPOLITAN HOUSING CORPORATION
at
6329 14TH AVENUE SOUTH, RICHFIELD
This Instrument Drafted by:
The Housing and Redevelopment Authority
in and for the City of Richfield
6700 Portland Avenue South
Richfield, Minnesota 55423
Telephone: (612) 861-9760
CONTRACT FOR DEVELOPMENT
THIS AGREEMENT, made and entered into as of this 20th of March, 2006, by and
between the Housing and Redevelopment Authority in and for the City of Richfield, a body
corporate and politic under the laws of the State of Minnesota, having its principal office at 6700
Portland Avenue, Richfield, Minnesota (HRA), and Greater Metropolitan Housing Corporation
(GMHC), a non-profit corporation under the laws of Minnesota, having its principal office at 15
South Fifth Street, Suite 710, Minneapolis, MN 55402 (Developer).
WITNESSETH: WHEREAS, the HRA has purchased the property at 6329 14th Avenue
South, Richfield, legally described as Lot 17, Block 2, Nokomis Gardens Rearrangement of Blocks
1, 2, 3, 4 and 5 Girard Parkview (the Property), for the purpose of providing an affordable home
buying opportunity for a qualified first-time buyer; and
WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the
Property which the HRA has determined will promote and carry out the objectives for which the
Property was purchased; will assist in carrying out the objectives of the New Home Program; and
will be in the vital best interests of the City, and the health, safety and welfare of its residents and in
accord with the public purposes and provisions of the applicable state and local laws and
requirements.
NOW, THEREFORE, in consideration of the mutual covenants and obligations of the
HRA and the Developer, each party does hereby represent, covenant and agree with the other as
follows:
ARTICLE I.
DEFINITIONS. EXHIBITS. RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, the following terms have the meaning given
below unless the context clearly requires otherwise:
(a) City. The City of Richfield, Minnesota.
(b) Construction Plans. Collectively, the plans, drawings and related documents
related to the Improvements, which are listed on Exhibit A.
(c) Developer. Greater Metropolitan Housing Corporation (GMHC).
(d) Development. The Property and the Improvements to be constructed thereon
according to the Construction Plans approved by the HRA.
(e) HRA. The Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota.
1
(1) Homeowner. A purchasing family whose income does not exceed 80% of the Twin
Cities area median income, is a first time buyer, and is qualified to buy the Property for owner
occupancy.
(g) Housin2 and Redevelopment Authorities Act (HRA Act). Minnesota Statutes
Sections 469.001 through 469.047.
(h) Improvements. Each and all of the structures and site improvements constructed or
renovated on the Property by the Developer, as specified in the Construction Plans approved by the
HRA.
(i) Mort2a2e and Holder. The term "mortgage" shall include the mortgages referenced
in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance
or lien upon the Property of any part thereof, as security for a loan. The term "holder" in reference
to a mortgage includes any insurer or guarantor (other than the Developer) of any obligation or
condition secured by such mortgage or deed of trust.
(j) New Home Pro2ram. HRA program to encourage development of new housing
opportunities for low to moderate income buyers.
(k) Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles,
fire or other casualty to the Improvements, litigation commenced by third parties which results in
delays or acts of any federal, state or local government, except those contemplated by this
Agreement, which are beyond the control ofthe Developer.
Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part
of this Agreement:
A. List of Construction Plan Documents
B. Form of Quit Claim Deed
C. Form of Certificate of Completion
D. Sale Requirements
E. Summary of Responsibilities ofHRA and Developer
Section 1.3 Rules of Interpretation.
(a) This Agreement shall be interpreted in accordance with and governed by the laws of
the State of Minnesota.
(b) The words "herein" and "hereof' and words of similar import, without reference to
any particular section or subdivision refer to this Agreement as a whole rather than any particular
section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section or
subdivision of this Agreement as originally executed.
2
(d) Any titles of the several parts, articles and sections of this Agreement are inserted for
convenience and reference only and shall be disregarded in construing or interpreting any of its
provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1 Bv the DeveloDer. The Developer makes the following representations and
warranties as the basis for undertakings on its part herein contained:
(a) The Developer has the legal authority and power to enter into this Agreement, and
has duly authorized the execution, delivery and performance of this Agreement; and the
individual( s) who execute this Agreement on behalf of the Developer have the power and authority
to bind the Developer;
(b) The Developer has the necessary equity capital or will obtain commitments for
financing necessary for construction of the Improvements;
(c) The Developer will construct the Improvements in accordance with the terms of this
Agreement, the Construction Plans, and all local, state and federal laws and regulations;
(d) The Developer will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws
and regulations which must be obtained or met before the Improvements may be constructed; and
(e)
architect.
The plans for the Improvements have been prepared by a qualified draftsperson or
Section 2.2 Bv the HRA. The HRA makes the following representations as the basis for
the undertaking on its part herein contained:
(a) The HRA is authorized by law to enter into this Agreement, to carry out its
obligations hereunder, and the individuals who execute this Agreement on behalf of the HRA have
the power and authority to bind the HRA; and
(b) The HRA will, in a timely manner, subject to all notification requirements, review
and act upon all submittals and applications of the Developer and will cooperate with the efforts of
Developer to secure the granting of any permit, license, or other approval required to allow the
construction of the Improvements; provided, however, that nothing contained in this subparagraph
2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA's
discretion considering any submittal or application.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER
3
Section 3.1 Sale of Property to Developer. The HRA is the fee owner of the Property.
The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the
Property from the HRA in "as-is" condition. The HRA agrees to convey the Property to the
Developer by Quit Claim Deed in the general form of Exhibit B. The purchase price for the Property
will be $1.00.
Section 3.2 Title and Examination. The HRA will provide the Developer with an abstract
of title or registered property abstract regarding the Property within 20 days of the date of execution
of this Agreement. In the absence of an abstract of title or registered property abstract, the HRA
will provide a title commitment and title insurance. The Developer shall have 10 days from the date
of receipt of the abstract, registered property abstract or commitment for title insurance to make
written objection to the condition of title. If the Developer fails to make timely objections in
writing, all objections to title shall be deemed to be waived. The HRA shall have 30 days after
receipt of Developer's written objections to clear title to the Property but the HRA shall have no
obligation to clear title. If the HRA does not or cannot clear title to the Developer's satisfaction, the
Developer may terminate this Agreement or proceed to closing. If the Developer proceeds to
closing, all title objections will be deemed to be waived. The HRA shall pay at closing all costs
incurred by the HRA in extending the abstract of title or registered property abstract and correcting
defects related thereto. At closing the HRA shall also pay the amount of the transfer tax (state deed
tax and conservation fee) payable on the deed conveying the Property to the Developer and the
amount of any transfer tax or recording fees for documents necessary to vest title in the HRA.
Section 3.3 Closin2. Closing on the Property will take place on or before the 30th of April,
2006, or such other date as may be agreed to by the parties in writing. At closing, the Developer
will provide the HRA with payment for the Property. If closing has not occurred by the 30th of
April, 2006, either party may terminate this Agreement.
Section 3.4. Taxes and Special Assessment. Real estate taxes will be prorated between the
HRA and the Developer as of the date of closing. Levied and pending special assessments, if any,
will be satisfied at the time of closing and the Property will be transferred to the Developer free and
clear thereof.
Section 3.5 Soil Conditions and Hazardous Wastes. The Developer acknowledges that
the HRA makes no representations or warranties as to the conditions of the soils on the Property, its
fitness for construction of the Improvements or any other purpose for which the Developer may
make use of the Property, or regarding the presence of hazardous wastes, pollution or contamination
on the Property. The HRA will allow reasonable access to the Property for the Developer to
conduct such tests regarding soil conditions and hazardous wastes as the Developer may desire.
Permission to enter the Property to conduct such tests must be given in writing under the terms and
conditions established by the HRA.
Section 3.6. Trees. All healthy trees will be saved and protected by the Developer during
construction, to the extent possible, except those that specifically interfere with the construction of
the Improvements. Trees requested to be removed must be identified by type on the site plan
provided by the Developer.
4
Section 3.7. Sale to Homeowner: Covenant on Use. The Developer agrees to convey the
Property and Improvements to an identified Homeowner within 120 days of completion or after that
time as agreed upon by the parties. This Agreement constitutes a covenant on the part of the
Developer, its successors and assigns, to use the Property and Improvements for owner-occupied,
single-family residential purposes as permitted by the City.
Section 3.8. Second Mort~!a2e of Behalf of the HRA. At closing and sale to the
homeowner, the developer shall be paid from proceeds of sale for all project costs. There will be a
value in excess of the costs that must be secured to the HRA as a second mortgage. Adding project
costs and value in excess of costs equals the valu eof the home as determine by apprasial.
ARTICLE IV.
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Improvements. The Developer shall construct the
Improvements on the Property in accordance with the Construction Plans, for $199,500, and shall
maintain, preserve and keep the Improvements in good repair and condition until sale of the
Property to a Homeowner.
Section 4.2. Buildin2 Plans. No building permit will be issued by the City unless the
Construction Plans are in conformity with this Agreement, and all local, state and federal
regulations. The HRA shall, within 25 days of receipt of Construction Plans submitted in
application for a building permit, review such Construction Plans to determine whether the
foregoing requirements have been met. If the HRA determines such Construction Plans to be
deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for
correction. Issuance of the building permit by the City with the approval of the HRA shall be a
conclusive determination that the Construction Plans have been approved and shall satisfy the
provisions of this Section 4.2.
Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the
Improvements shall be completed prior to the October 31, 2006. All construction shall be in
conformity with the approved Construction Plans. Periodically during construction the Developer
shall make reports in such detail as may reasonably be requested by the HRA concerning the actual
progress of construction. If at any time prior to completion of construction the HRA has cause to
believe that the Developer will be unable to complete construction of the Improvements in the time
permitted by this Section 4.3, it may notify the Developer and demand assurances from the
Developer regarding the Developer's construction schedule. If such assurances are not forthcoming
or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of
Default and may avail itself of any of the remedies specific in Section 8.2 of this Agreement.
Section 4.4 Certificate of Completion. Promptly after notification by the Developer of
completion of construction of the Improvements, the HRA shall inspect the construction to
determine whether the Improvements have been completed in accordance with the Construction
Plans and the terms of this Agreement, including the date of the completion thereof. In the event
5
that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a
Certificate of Completion in the form attached hereto as Exhibit C. Such certification by the HRA
shall be a conclusive determination of satisfaction and termination of the agreements and covenants
in this Agreement with respect to the obligation of the Developer to construct the Improvements.
The certification provided for in this Section 4.4 shall be in recordable form. If the HRA
shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the
HRA shall within 15 days of such notification provide the Developer with a written statement,
indicating in adequate detail in what respects the Developer has failed to complete the
Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the
HRA, for the Developer to take or perform in order to obtain such certification.
Section 4.5 Failure to Construct. In the event that construction of the Improvements is not
completed as provided in Section 4.3 of this Agreement, the Developer shall be liable to the HRA
for the amount of the HRA's expenses as liquidated damages. As security for the obligations
created in this Section 4.5 and in Section 3.2, this Agreement shall be recorded and survive closing.
The security shall be retained by the HRA until the closing on the sale of the Property from the
Developer to the Homeowner. The provisions of this Section 4.5 shall not be construed to prejudice
or limit any additional rights of the HRA under Article VIII of this Agreement.
ARTICLE V.
INSURANCE
Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided
and maintained at all times during the process of constructing the Improvements and, from time to
time at the request of the HRA, furnish the HRA with proof of payment of premiums on:
(a) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value
Basis," in an amount equal to 100% of the insurable value of the Improvements at the date of
completion, and with coverage available in non-reporting form on the so-called "all risk" form of
policy;
(b) Comprehensive general liability insurance (including operations, contingent liability,
operations of subcontractors, completed operations and contractual liability insurance) together with
an Owner's Contractor's Policy with limits against bodily injury and property damage of not less
than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess
liability policy may be used); and
(c) Workers' compensation insurance, with statutory coverage.
The policies of insurance required pursuant to clauses (a) and (b) above shall be in form and
content satisfactory to the HRA and shall be placed with financially sound and reputable insurers
licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a)
above shall contain an agreement of the insurer to give not less than thirty (30) days advance notice
to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder.
6
ARTICLE VI.
FINANCING
Section 6.1 Financine:. Within 15 days of the date of execution of this Agreement, the
Developer shall submit to the HRA evidence of financing for the Improvements in compliance with
the provisions of Section 2.1 (b) of this Agreement. If the HRA finds that the financing is adequate
in amount to provide for the construction of the Improvements, the HRA shall notify the Developer
of its approval.
If the HRA rejects the evidence of financing as inadequate, the Developer shall have 30 days
or such additional period of time as the Developer may reasonably require from the date of such
notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to
submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate
this Agreement and both parties shall be released from any further obligation or liability hereunder,
except for the HRA's remedies pursuant to Section 4.5 of this Agreement.
Section 6.2 Limitation Upon Encumbrance of Property. Prior to the issuance of the
Certificate of Completion, neither the Developer nor any successor in interest to the Property or any
part thereof shall engage in any financing or any other transaction creating any Mortgage or other
encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer
any encumbrance of lien to be made on or attached to the Property other than the liens or
encumbrances attached for the purposes of obtaining funds to the extent necessary for making the
Improvements without the prior written approval of the HRA. The HRA shall not approve any
Mortgage which does not contain terms which conform to the terms of this Article VI and Section
8.2 of this Agreement.
Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of
the Improvements by the Developer, the HRA shall agree to modify this Agreement in the manner
and to the extent it deems reasonable, upon request by the financial institution and the Developer.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1 Representation as to Redevelopment. The Developer represents and agrees
that its undertakings pursuant to the Agreement, are for the purpose of development of the Property
and not for speculation in land holding. The Developer further recognizes that, in view of the
importance of the Development to the general welfare of Richfield and the substantial financing and
other public aids that have been made available by the HRA for the purpose of making the
Development possible, the qualification and identity of the Developer are of particular concern to
the HRA. The Developer further recognizes that it is because of such qualifications and identity that
the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the
representations and undertakings of the Developer for the faithful performance of all undertakings
and covenants agreed by the Developer to be performed.
7
Section 7.2 Prohibition Ae:ainst Transfer of Property and Assie:nment of Ae:reement.
F or the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that,
except for associating with other individuals or entities, prior to the issuance of the Certificate of
Completion by the HRA:
(a) Except only by way of security for, and only for the purpose, of obtaining financing
necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to
perform its obligations with respect to the Development under this Agreement, and any other
purpose authorized by this Agreement, the Developer, except as so authorized, has not made or
created, and that it will not make or create, or suffer to be made or created, any total or partial sale,
assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof
or any interest therein, or any contract or agreement to do any of the same, without the prior written
approval of the HRA; and
(b) The HRA shall be entitled to require, except as otherwise provided in this
Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed
transferee shall have the qualifications and financial responsibility, as determined by the HRA,
necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer or,
in the event the transfer is of or relates to part of the Property, such obligations to the extent that
they relate to such part. (ii) Any proposed transferee, by instrument in writing satisfactory to the
HRA and in form recordable among the land records, shall for itself and its successor and assigns,
and specifically for the benefit of the BRA, have expressly assumed all of the obligations of the
Developer under this Agreement and agreed to be subject to such obligations, restrictions and
conditions or, in the event the transfer is of, or relates to part of the Property, such obligations,
conditions, and restrictions to the extent that they relate to such part; provided, that the effect that
any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof,
shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and
only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the
HRA, relieve or except such transferee or successor from such obligations, conditions, or
restrictions, or deprive or limit the HRA of or with respect to any rights or remedies or controls with
respect to the Property of the construction of the Improvements; it being the intent of this Section
7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and
equity and excepting only in the manner and to the extent specifically provided otherwise in the
Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof,
or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall
operate, legally or practically, to deprive or limit the HRA, or any rights or remedies or controls
provided in or resulting from this Agreement with respect to the Property and the construction of the
Improvements that the HRA would have had, had there been no such transfer or change. (iii) There
shall be submitted to the HRA for review all instruments and other legal documents involved in
effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to
the Developer in writing.
In the absence of specific written agreement by the HRA to the contrary, no such transfer or
approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations
with respect thereto. The sale of the Development to the Homeowner shall not be deemed to be a
transfer within the meaning of this Section 7.2.
8
Section 7.3 Avvrovals. Any approval required to be given by the HRA under this Article
VII may be denied only in the event that the HRA reasonably determines that the ability of the
Developer to perform its obligations under this Agreement will be materially impaired by the action
for which approval is sought.
ARTICLE VIII.
EVENTS OF DEFAULT
Section 8.1 Events of Default Defined. The following shall be deemed Events of Default
under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the
context otherwise provides, anyone or more of the following events:
(a) Failure by the Developer to pay when due the payments required to be paid or secured
under any provision of this Agreement;
(b) Failure by the Developer to complete the Improvements by the 31 st of October, 2006,
absent any Unavoidable Delay;
(c) Failure by the Developer to observe and substantially perform any covenant, condition,
obligation or agreement on its part to be observed or performed hereunder, including the time for
such performance;
(d) Failure by the Developer to close with a Homeowner within 120 days of completion or
after that time as agreed upon by the parties.
(e) If the Developer shall admit in writing its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its
creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial
part of the Property;
(f) If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt,
or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of
the Developer, a receiver of the Developer or of the whole or substantially all of its property, or
approve a petition filed against the Developer seeking reorganization or arrangement of the
Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entry thereof; or
(g) If the Development is in default under any Mortgage and has not entered into a work-out
agreement with the Mortgagee.
Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may,
in addition to any other remedies or rights given the HRA under this Agreement, take anyone or
more of the following actions following written notice by the HRA to the Developer as provided in
Section 9.4 of this Agreement:
9
(a) suspend its performance under this Agreement until it receives assurances from the
Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and
continue its performance under this Agreement;
(b) cancel or rescind this Agreement;
(c) withhold the Certificate of Completion; or
(d) take whatever action at law or in equity may appear necessary or desirable to the HRA to
collect any payments due under this Agreement, or to enforce performance and observance of any
obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that
any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited
by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized
by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the
Holders of a Mortgage; and provided further that should any Mortgagee succeed by foreclosure of
the Mortgage or deed in lieu thereof to the Developer's interest in the Property, it shall,
notwithstanding the foregoing, be obligated to perform the following obligations of the Developer
only to the extent that the same have not therefore been performed by the Developer: Sections 3.3
through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Mortgagee, upon foreclosure or taking of a
deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth
in the foregoing sentence.
Section 8.3 No Remedv Exclusive. No remedy herein conferred upon or reserved to the
HRA is intended to be exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient. In order to entitle the HRA or the Developer to
exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as
may be required in this Article VIII.
Section 8.4 No Additional Waiver Imulied bv One Waiver. In the event of the
occurrence of any Event of Default by either party, which Event of Default is thereafter waived by
the other party, such waiver shall be limited to the particular Event of Default so waived and shall
not be deemed to waive any other concurrent, previous or subsequent Event of Default.
10
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1 Conflict of Interests: Representatives Not Individuallv Liable. No HRA
officer who is authorized to take part in any manner in making this Agreement in his or her official
capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially
there from. No member, official, or employee of the HRA shall be personally liable to the
Developer, or any successor in interest, for any Event of Default by the HRA or for any amount
which may become due to the Developer or successor or on any obligations under the terms of this
Agreement.
Section 9.2 Non-Discrimination. The provisions of Minnesota Statutes Section 181.59,
which relate to civil rights and non-discrimination, and any affirmative action program of the City
shall be considered a part of this Agreement and binding on the Developer as though fully set forth
herein.
Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of
this Agreement have been fully performed by the Developer, the HRA, upon not less than ten days
prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to
the Developer or to any person designated by the Developer, a statement in writing in recordable
form certifying the extent to which this Agreement has been performed and the obligations
hereunder satisfied.
Section 9.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
(a) As to the HRA:
Richfield HRA
Executive Director
6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Developer:
Greater Metropolitan Housing Corporation
Attn: Carolyn E. Olson, President
15 South Fifth Street, Suite 710
Minneapolis, MN 55402
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.4.
11
Section 9.5 Provisions Not Mer2ed With Deed. None of the provisions of this Agreement
is intended to or shall be merged by reason of any deed transferring any interest in the Property and
any such deed shall not be deemed to affect or impair the provisions and covenants of this
Agreement.
Section 9.6. Counterparts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its
name and behalf and its seal to be hereunto duly affixed and the Developer has caused this
Agreement to be duly executed as of the day and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By
Its Chairperson
By
Its Executive Director
COUNTY OF
)
) SS
)
STATE OF MINNESOTA
The foregoing instrument was acknowledged before me this day of
, 20 , by Suzanne Sandahl, the Chairperson of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public
body corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
COUNTY OF
)
) SS
)
STATE OF MINNESOTA
The foregoing instrument was acknowledged before me this day of
, 20_, by Steve Devich,_the Executive Director of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public body
corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
12
GREATER METROPOLITAN HOUSING CORPORATION
By:
Its:
COUNTY OF
)
) SS
)
STATE OF MINNESOTA
The foregoing instrument was acknowledged before me this day of
, 20_, by , the
of Greater Metropolitan Housing Corporation, a corporation under the
laws of Minnesota, on behalf of the corporation.
Notary Public
13
EXHIBIT A
LIST OF CONSTRUCTION PLAN DOCUMENTS
. Contract for Development, fully executed
. Concept Plans
. Site Plan
14
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12
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Basement Floor Plan
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Greater Metropolitan Housing Corporation
Two Story Base Floor Plans
Area Tabulation
FIRST flOOR PLAN
SECOND flOOR PLAN
TOTAL
BASEMENT flOOR PLAN
PORCH
GARAGE
833 SQ, FT.
818 SQ, FT.
1,651 SQ.. FT.
818 SQ. FT.
183 SQ.FT.
484 SQ. FT.
cermak.
Rhoades
Architects
...._. _ ._._._._._,~._...._...,_._' ___._.._.._._._........ '___.. .. ..........,__._h..~..._'._..__ ....~.._ ,_.._ ". '.,... _",-,__,__~,___,,____'_' _~__.
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W~';:BRQWN LANl) StJRVEYING,'tNC.
8030 Cedar Avenu South Suite 228 WOODROW A. BROWN. R.LS.
Bloomington. MN 55425 Survey For: President
Phon (952) 854-4055 NORTH
Fax (952) 854-4268 Richfield BRA
with
Proposed House
Denotes Iron
Monument Found
Denotes Iron
Monument Set
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. PROPERTY DESCRIPTION
NOTE: No Seorch Was
Made For Any
Easements.
Lot 17, Block 2, GIRARD PARKVIEW, Hennepin County, Minnesota.
I hereby certify that this survey, plan or report was prepared by me or under
my direct supervision and that I am a duly Registered Land Surveyor under the
laws of the State of Minnesota.
W. BROWN LAND SURVEYING, INC.
256-05
88/62
-~~)
Woodrow A. Brown, R.L.S NO. 15230
Dated:
December 23, 2005
1 of 2
/
EXHIBIT B
FORM OF QUIT CLAIM DEED
15
EXHIBIT C
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that , has fully and
completely complied with its obligations under Article IV of that document entitled "Contract for
Private Development", between the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota and dated ,
filed as Document No. with respect to
the construction of the approved construction plans at , legally
described as and is released and forever discharged from its
obligations to construct under such above-referenced Article.
DATED:
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY RICHFIELD
By
Its Chairperson
By
Its Executive Director
STATE OF MINNESOTA )
)SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _ day of
200___, by and
the Chairperson and Executive Director of 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 on
behalf of the public body corporate and politic.
Notary Public
This instrument was drafted by:
Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
16
EXHIBIT D
SALE REQUIREMENTS
. Home must be sold to first-time buyer
. Buyer must consist of a family (3 or more members)
. Household family income must not exceed 80% of Area Median Income (2006)
17
EXHIBIT E
SUMMARY OF RESPONSIBILITIES OF HRA AND DEVELOPER
HRA Responsibilities:
. Sell to GMHC the property at 6329 14th Ave S., for the total cost of$1.00.
. Assist GMHC as may be required to obtain any permits.
. Reimburse GMHC upon closing of home to end buyer, for all hard and soft costs incurred;
$199,500.
GMHC (Developer) Responsibilities:
. Purchase from the HRA the property at 6329 14th Ave S., for the total cost of $1.00.
Provide the building site plan, construction drawings, landscape plans approved by city staff,
specifications, and construction management required to construct a new 2-story single-family
home.
. Pay all hard and soft construction costs.
. Provide all required marketing to sell the new home to a first time homebuying family who does
not exceed 80% of the median income level.
. Convey the Property and Improvements to an identified Homeowner within 120 days of
completion of after that time as agreed upon by the parties.
. Facilitate the second mortgage, which recaptures the difference between the appraised value and
the net sales prices.
18
AGENDA ITEM # 'i
REpORT # 1 '}
~
STAFF REpORT
RICHFIELD
I
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 20, 2006
REpORT PREPARED By:
PATRICK SMITH, COMMUNITY
DEVELOPMENT MANAGER
NAME, TITLE
REpORT PRESENTER:
PATRICK SMITH, COMMUNITY
DEVELOPMENT~NAGER
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR BRA CONSIDERATION:
Consideration of resolution approving the Concept Plans for Cedar Point.
1. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution approving the Concept
Plans for Cedar Point.
I II. BACKGROUND I
In July 2005 the Richfield Housing and Redevelopment Authority (HRA) approved a
Contract for Private Redevelopment (Contract) with Ryan Companies US, Inc.
(Ryan) for the redevelopment of the Cedar Point area. A stipulation of the Contract
is that Concept Plans for the development be approved by the HRA and the City
Council. Concept Plans include building elevations, public improvement plans, and
landscaping plans.
Building Elevations
· The project architects used the adjacent airport for inspiration in designing the
commercial buildings. The buildings have been designed with elements which
mimic the airport: modern styling, a strong horizontal emphasis with a select
few vertical elements representing control towers, for example, and with
creative use of metal and glass building materials.
032006 Cedar Point Concept Plans
.
The SuperTarget has two main entrances. One for the general merchandise
and one for the grocery section of the stores. Both entrances are designed
with two stories of glass, which effectively highlights the entrances of the large
building. The SuperTarget store is 570 feet in length.
The front faQade of the SuperTarget has extensive building articulation, both
vertically and horizontally. Much of the building steps back, reducing the
massing along the sidewalk. The building steps back and forth along the front
faQade to a depth of 25 feet.
The primary building material on the front and south elevations is "quick-brick"
material; a concrete block that is four inches high and looks like brick. The
primary materials on the north and east elevation are rock faced block with
brick pilasters.
Trellises not only provide interest for pedestrians but also break up the blank
walls in the front faQade.
Because of the high visibility of the rear of SuperTarget to TH 77, the rear of
the building includes elements from the front faQade. The southeast corner of
the building has a strong element with the same metal paneling, same
horizontal canopy, and same red bulls eye as the main entrance. In addition,
the rear facade has a playful element with the "bouncing" half bulls eye
running along the faQade.
The outlot buildings will consist of seven general retail buildings, one full
service restaurant, and one bank. The outlot buildings will resemble but not
be identical to the SuperTarget building. The bank and restaurant will deviate
the most from the SuperTarget architecture.
The Concept Plan submittal includes elevations of two of the nine outlot
buildings. (As part of the formal City zoning review process to be initiated in
several weeks, elevations of all the outlot buildings will need to be submitted
for review.)
The building materials will be the same as the SuperTarget: "quick brick," rock
faced block, metal panels and glass. All of the architecture for the outlot
buildings will be four-sided architecture.
The Home Depot elevations continue the use of brick and metal paneling as
the primary materials.
The Home Depot is proposing a new prototype in which the sidewalks in front
of the stores are wider, more defined and allows for landscaping, but the
vestibules of the two entrances are pulled back, which creates a flatter front
faQade than previously built Home Depot stores.
Like SuperTarget, Home Depot is proposing trellises to provide interest for
pedestrians and break up the blank walls in the front faQade.
The Nursery on the north side of the building has an open roof, fencing with
brick columns on the west and north elevations, and a solid wall facing the
airport (east). The new Home Depot prototype has a green house in the
nursery.
The rear of the Home Depot will be tip-up concrete panels that will have a rock
faced block texture to mimic the SuperTarget rear faQade. In addition, Home
Depot also has the metal panel columns and vertical fins along the rear faQade
to bring some of the front faQade elements to the rear of the building.
Building materials will be on display at the HRA meeting.
.
.
.
.
.
.
.
.
.
.
.
.
.
Public Improvement Plans
. The City plans to construct a roundabout at the 17th Avenue and 66th Street
intersection.
. Extensive median and boulevard plantings on 66th Street will create the grand
boulevard entry from TH 77 through to the roundabout.
. Plantings in 66th Street median will use Lannon stone, day lilies, perennials
and other plant varieties to repeat the plant palette along 66th Street east of
TH 77. (Ryan will be providing substantial funding to landscape the
roundabout and median.)
. Median plantings on 17th Avenue will unify the retail on both sides of 17th
Avenue between 65th and 66th Streets.
. Ryan will be constructing a regional pond in the MnDOT right-of-way that will
accommodate the 30-acre site runoff as well as the runoff from the existing
adjoining residential area west of 17th Avenue.
. The stormwater design takes advantage of the soil conditions that will allow
infiltration of stormwater. The majority of the storm sewer will be perforated
pipe to allow water to be dispersed throughout the site as the water flows to
the pond.
Site and Landscaping Plans
. To create gathering nodes and promote interaction between pedestrians and
shops, Ryan is proposing providing sidewalks 20-feet wide throughout the
development, overhead trellises, over-story trees, outdoor eating areas, and
zero lot line architecture.
. Ryan and Target have created a tree-lined streetscape with planting islands
and trees in front of SuperTarget. Locating streetlights and trees close to the
"street" { separating pedestrians from vehicular traffic, making the walking
experience more enjoyable.
. Striving to achieve the Cedar Avenue Corridor Redevelopment Concept
Master Plan's goal of creating an urban experience, Ryan is proposing
smaller, individual buildings close to the street rather than a long strip center
with parking next to the street. In addition, the number of uses with drive-up
windows is limited; the one use proposed with a drive-up window locates the
drive-up internally within the retail center.
. Ryan is working with Mount Cavalry Church to replace the 11 parking stalls,
which will be lost to the bus turn out, which is part of the expansion of 66th
Street.
. The Site Plan incorporates a screen wall (ranging from 5'-10' in height and
approximately 800' in length) at the property line with TH 77 designed to
match the buildings so there will be no "backside" to the development. All of
the architecture will be a four-sided view.
. Complementary planting along TH 77 right-of-way with a variety of trees and
shrubs will blend with the screen wall and architectural facades.
. Respecting the urban grid, Ryan is providing a direct sidewalk connection
along 17th Avenue to Taft Park and sidewalks through the parking lot
connecting the retail/service with housing and transportation.
. The east side of 17th Avenue has a 27-foot wide berm and will be planted with
multiple layers of over-story trees and hedges to separate the parking from the
street and minimize the intrusion of headlights into the neighborhood.
. A heavily landscaped edge adjacent to Taft Park will provide for year-round
screening.
. Over-story canopy and/or ornamental trees at all retail shops within the
sidewalk area will provide shade and create a quality urban space between
shops and the parking fields.
. Irrigation will be extensively used to maintain the landscaping.
. Existing trees will be saved whenever possible. A tree survey will help identify
those possibilities. The greatest opportunity for saving existing trees will be
adjacent to 17th Avenue and along the edge of Taft Park.
Ryan will construct and own the nine outlot buildings. The SuperTarget Store and
land will be own by Target. The Home Depot store will be owned by Home Depot,
and they will lease the land from Ryan. All stores are anticipated to be open the fall
of 2007.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The City has identified a low frequency noise impacted area in the
northeast corner of Richfield where the negative impacts of low
frequency noise will exceed the tolerances of exiting housing.
. In 2004, the Comprehensive Plan designation for this area was
amended to "Regional Retail/Office" to reflect the recommendations
contained in the Cedar Corridor Redevelopment Concept Master Plan.
. In July 2005, the HRA approved a contact for private development
with Ryan Companies to build a SuperTarget and Home Depot store
at this location.
. The Community Services Commission has reviewed and approved the
proposed connection and access to Taft Park's south parking lot.
lB. CRITICAL ISSUES I
. Staff is concerned with the amount of rock faced block used on the
outlot buildings. Because of their visibility and pedestrian scale of the
outlot buildings, staff is recommending that rock face block only be
used as a secondary material.
. A concern was raised at the Concurrent Worksession that the outlot
buildings may look identical with each other. It is the intention of Ryan
that these buildings resemble, but not copy, each other. The
elevations of all of the outlot buildings will be reviewed by the Planning
Commission and City Council when Ryan applies for a rezoning to a
Planned Unit Development (PUD).
. The details of the activity in front of Home Depot have yet to be
worked out. Staff hopes that the "streetscape" that has been created
in front of SuperT arget will be extended past the front of the Home
Depot store.
. Staff is recommending that the color of Home Depot's metal paneling
to be the same as SuperTarget to unify the development and make
the Home Depot store unique to Richfield. Home Depot prefers the
metal paneling be colored the Home Depot vanilla.
. Staff is suggesting more building articulation of the front fa(fade of the
Home Depot store and more depth to the main entrance so it does not
look like a false parapet.
. Signage on the building elevations is shown as an example for the
Concept Plans. Actually signage plans will be reviewed by the
Planning Commission and City Council as part of the formal review
process.
. Buildings and their interior spaces will be mitigated from low frequency
noise through quality design and construction of the buildings.
I C. FINANCIAL I
. Ryan is in the midst of costing out construction of the project. All
parties are concerned about maintaining the integrity of the concepts
as it relates to materials.
I D. LEGAL I
. Legal counsel prepared the attached resolution.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Approve the Concept Plans with conditions.
. Deny the Concept Plans with a finding that the development would have a
negative impact on adjacent properties or the City as a whole.
I V. ATTACHMENTS
. Resolution
. Site and Landscaping Plan
. SuperTarget Perspective
. SuperTarget Elevations
. Home Depot Perspective
. Home Depot Elevations
. Outlot buildings Perspective
. ,Outlot Buildings Elevations
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I
. Gerald Klitz, Director of Retail Architecture, Ryan
. Paul Rode, Target Architect
. Richard Koppy, Director of Engineering, Ryan
. John Dietrich, Principal Landscape Architect, RLK
HRA RESOLUTION NO.
RESOLUTION APPROVING CONCEPT PLANS
CEDAR POINT REDEVELOPMENT PROJECT
WHEREAS, on or about July 27, 2005, the Housing and Redevelopment
Authority in and for the City of Richfield (the "Authority") and Ryan Companies
US, Inc. ("Ryan") entered into a Contract for Private Development (the
"Contract") calling for the redevelopment of certain tracts of land all as fully
described in the Contract; and
WHEREAS, one of the preconditions to the Authority's obligations to
transfer parcels of land to Ryan was the approval, by the Authority of a Concept
Plan as that term was defined in the Contract, and subject to the process
provided for therein for approval; and
WHEREAS, Ryan has worked closely with HRA and City staff in the
development of a Concept Plan for the Cedar Point Area; and
WHEREAS, a draft of the Concept Plan was reviewed at a concurrent
meeting of the Richfield City Council, the Authority and the Richfield Planning
Commission on February 27, 2006; and
WHEREAS, following the concurrent meeting the Concept Plan was
further refined, and has now been presented to the Authority along with a report
of staff and a recommendation that the Concept Plan be approved; and
WHEREAS, the Authority has now reviewed the proposed Concept Plan,
a copy of which is on file in the office of the Community Development
Department of the City of Richfield, the report and recommendation of staff, and
is fully informed as to such matters.
NOW THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The Concept Plan meets the requirements of the Contract, and is
therefore approved.
2. The Executive Director is directed to forward the approved Concept
Plan to the Richfield City Council for its consideration.
Adopted by the Housing and Redevelopment Authority in and for the City
of Richfield, Minnesota this 20th day of March, 2006.
Suzanne M. Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
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