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111725 HRA Agenda Packet (2)Richfield Housing and Redevelopment Authority Agenda November 17, 2025 -- 7:00 PM Richfield Municipal Center Council Chambers 6700 Portland Avenue South 1.Call to Order 2.Roll Call 3.Open Forum a.Participants can share their comments in person, by voicemail, or email, and may also request to participate virtually. For more information on submitting comments, refer to the Housing and Redevelopment Authority Agenda and Minutes page on the City's Website. 4.Approval of the Agenda 5.Approval of Minutes a.Approval of the minutes of the Regular Housing and Redevelopment Authority meeting of September 15, 2025. 6.Presentations a.TIF Status Presentation 7.Consent Calendar Consent Calendar contains several separate items, which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action on these items is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. a.Consideration of a resolution authorizing an amendment to the Developer Agreement with West Hennepin Affordable Housing Land Trust. 8.Consideration of Items, if Any Removed From Consent Calendar 9.Public Hearings 10.Resolutions a.Consider an Amendment to the 2022 Spending Plan for unobligated tax increment. b.Consideration of a resolution authorizing the decertification of Tax Increment Financing District No. 2020-2 c.Consider a resolution authorizing decertification of the Urban Village Tax Incremement Financing District. d.Consider a resolution authorizing decertification of the Interchange West / Lyndale Gateway Tax Increment Financing District. 11.Other Business 12.Executive Director’s Report 13.HRA Discussion Items 14.Approval of Claims 15.Adjournment Auxiliary aids for individuals with accessibility needs are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. Includes Materials - Materials relating to these agenda items can be found in the HRA agenda packet located by the entrance. The complete HRA agenda packet is available electronically on the City of Richfield’s website. Page 1 of 60 HRA Meeting Minutes September 15, 2025 1 of 4 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting September 15, 2025 Chair Vrieze Daniels called the meeting to order at 7:00 PM in the Council Chambers. 2. ROLL CALL HRA Present: Erin Vrieze Daniels, Chair; Gordon Hanson; Sean Hayford Oleary; Mary Supple; John Young. Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant Community Development Director; and Michelle Friedrich, City Clerk. 3. OPEN FORUM Chair Vrieze Daniels gave instructions on how to participate in the open forum. No residents participated. 4. APPROVAL OF THE MINUTES MOTION: made by Hanson, seconded by Young to approve the minutes of the Housing and Redevelopment Authority regular meeting Minutes of August 18, 2025, as presented. Motion carried: 5-0 5. APPROVAL OF THE AGENDA MOTION: made by Hayford Oleary, seconded by Supple to approve the agenda as presented. Motion carried: 5-0 1. CALL TO ORDER Page 2 of 60 HRA Meeting Minutes September 15, 2025 2 of 4 6. PRESENTATION No items were presented. 7. CONSENT CALENDAR Executive Director Poehlman presented the consent calendar items. a. Consideration of a Loan Agreement and related documents with Penn Station Apartments, LLLP for a Tax Base Revitalization Account Grant. b. Consideration of an Estoppel Certificate and an Assignment and Assumption Agreement of the Contract for Private Development for the Riley-Richlyn development. MOTION: made by Supple, seconded by Young, to approve the consent calendar as presented. Motion carried: 5-0 8. CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR None. 9. PUBLIC HEARINGS None. 10. RESOLUTION(S) a. Accepting A Bring It Home Minnesota Funding Award Assistant Community Development Director Urban presented the resolution for the Bring It Home Minnesota funding award. An overview of the program’s funding was provided, including key parameters and procedural details. The HRA Commission and staff engaged in discussion on several related topics, including housing voucher allocations, census data, the two-year application timeline, the work-from-home program, and Section 8 housing. Assistant Community Development Director Urban also reviewed the waiting list process and addressed anticipated challenges related to future funding and start-up costs. The Commission expressed appreciation to staff for their efforts on the project. MOTION: made by Hayford Oleary, seconded by Young, to adopt the Resolution accepting the Bring it Home Minnesota Funding Award. RESOLUTION NO. 1516 RESOLUTION ACCEPTING THE BRING IT HOME MINNESOTA FUNDING AWARD Page 3 of 60 HRA Meeting Minutes September 15, 2025 3 of 4 Motion carries: 5-0 11. OTHER BUSINESS No items were discussed. 12. EXECUTIVE DIRECTOR REPORT Executive Director Poehlman reported that Hemple has closed on three projects, with permit applications submitted for exterior building work. Explained estimated improvement costs are approximately $7.2 million, to be completed as tenants vacate the properties. Executive Director Poehlman also noted a $22,000 Met Council grant, which will be used to develop a new housing program in conjunction with LAHA funds starting in October. 13. HRA DISCUSSION ITEMS No items were discussed. 14. APPROVAL OF CLAIMS MOTION: made by Young, seconded by Hanson, to approve claims: U.S. BANK 09/15/2025 HRA Checks #37282-37293 $64,777.49 Section 8 Checks #137063-137149 $230,632.14 TOTAL $295,409.63 Motion carried: 5-0 15. ADJOURNMENT This meeting was adjourned by unanimous consent at 7:14 p.m. Date Approved: November 17, 2025 Erin Vrieze Daniels HRA Chair Page 4 of 60 HRA Meeting Minutes September 15, 2025 4 of 4 Michelle Friedrich Melissa Poehlman City Clerk Executive Director Page 5 of 60 Richfield Housing and Redevelopment Authority 2025 Tax Increment Financing Update November 17, 2025 Page 6 of 60 2 •What is TIF? •TIF Management Plan completed 2023 ✓Assess opportunities and challenges ✓Compliance requirements ✓Details by District for City and HRA staff •Review 2025 updates Overview Page 7 of 60 3 What is Tax Increment Financing (TIF)? The ability to capture and use most of the increase in local property tax revenues from new development within a defined geographic area for a defined period of time without approval of the other taxing jurisdictions. Minnesota Statutes 469.174-469.1794 Page 8 of 60 4 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Before Development After Development After - School (TIF) After - County (TIF) After - City (TIF) School County City TIF What is TIF? (Residential Example) •Market Value •Property Taxes •Tax Capacity (Frozen Tax Rate) Page 9 of 60 5 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 After - School (TIF) After - County (TIF) After - City (TIF) School County City TIF TIF: 10-Year Residential Example Page 10 of 60 6 Create or retain jobs Redevelop blighted areas Remediate polluted sites Construct affordable housing Increase or diversify tax base How can TIF be used? Page 11 of 60 7 •Districts are on track ✓No compliance issues •Pooling opportunities available ✓10% to Housing Trust Fund ✓Temporary Spending Authority ✓Regular 25% pooling Findings Page 12 of 60 8 Summary of TIF Districts District City Bella Lyndale Gateway West (Kensington Park) Cedar Avenue (Rya) 2010-1 Woodlake Housing Lyndale Gardens 2014-1 RM Senior Living Richfield (Havenwood) 2017-1 Chamberlain 2018-1 Cedar Pointe Townhomes - RF 64 2020-3 Lynk65 (Lynvue) 2020-1 Henley II (Riley) TIF Authority Richfield HRA Richfield HRA Richfield HRA Richfield HRA Richfield HRA Richfield HRA Richfield HRA Richfield HRA Richfield HRA Richfield HRA Project Area / Development District Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area District Type Redevelopment Redevelopment Redevelopment Housing Redevelopment Redevelopment Housing Housing Redevelopment Housing Approved 6/11/2002 12/10/2002 9/26/2006 9/13/2011 8/9/2011 3/18/2014 11/28/2017 8/21/2018 11/24/2020 9/22/2020 Legal Max Term 12/31/2030 12/31/2029 12/31/2043 12/31/2039 12/31/2039 12/31/2043 12/31/2045 12/31/2047 12/31/2048 12/31/2047 Anticipated Term 12/31/2030 12/31/2029 12/31/2043 12/31/2039 12/31/2037 12/31/2043 12/31/2045 12/31/2047 12/31/2042 12/31/2047 First Increment 2005 2004 2008 2014 2014 2018 2020 2022 2023 2022 Anticipated Last Increment December 2030 December 2029 December 2043 December 2039 December 2039 December 2043 December 2045 December 2046 December 2042 December 2047 Current Obligations City Bella PAYGO Note IFL(ILN TIF District & HRA General Acct), 2012B G.O. TIF Ref Bds IFL to General Fund; CPII Dev. PAYGO Note PAYGO Notes A & B, IFLs to HRA General Fund PAYGO Master Developer Note & Secondary Note B IFL to Non Tax Increment Account & Mesaba Capital Dev LLC PAYGO IFL to Non Tax Increment Account & Chamberlain Apartments LLS PAYGO PAYGO Note to Cedar Point Investments, LLC & IFL to Non Tax Increment Account IFL to General Fund PAYGO Note to Richfield Property Holdings, LLC & IFL to General Fund Page 13 of 60 9 Summary of TIF Districts Decertifying District Lyndale Gateway / Interchange West Urban Village 2020-2 Emi (101 66th St E) TIF Authority Richfield HRA Richfield HRA Richfield HRA Project Area / Development District Richfield Redevelopment Project Area Richfield Redevelopment Project Area Richfield Redevelopment Project Area District Type Redevelopment Redevelopment Redevelopment Approved 6/14/1999 11/23/1998 1/26/2021 Legal Max Term 12/31/2025 12/31/2025 12/31/2048 Anticipated Term 12/31/2025 12/31/2025 12/31/2038 First Increment 2000 2000 2023 Anticipated Last Increment December 2025 December 2025 December 2038 Current Obligations Best Buy PAYGO & Richfield Sr Housing(TCCH) PAYGO PAYGO Notes A & B IFL to General Fund Page 14 of 60 10 Impact of Decertified TIF Districts City of Richfield Projected Additional Tax Levy Dollars As A Result of DECERTIFED TIF Districts TIF District Decertifies 2026 2027 2028 2029 2030 2031 2032 2033 2034 Lyndale Gateway / Interchange West 12/31/2025 1,118,279 (2) Urban Village 12/31/2025 816,666 City Bella 12/31/2030 664,385 Lyndale Gateway West (Kensington Park)12/31/2029 314,795 Total Annual Captured Net Tax Capacity Returned to Tax Rolls 1,934,945 - - - 314,795 664,385 - - - City Tax Rate for Taxes Payable in 2025 (1)56.048% Estimated Additional Annual Tax Levy Available (1)1,084,498$ -$ -$ -$ 176,436$ 372,375$ -$ -$ -$ (1) - Assumptions: - Calculates additional dollars the City could levy and still maintain the same tax rate as Pay 2025. - Assumes no change in existing tax base from prior year - Assumes no change in the Fiscal Disparities Distribution Dollars from Proposed Pay 2025 (2) - Notes: - The value for this District reflects the final value per Hennepin County for Pay 2025 Projected Page 15 of 60 11 Outstanding Obligations Highlights •2012B Bond paid 2/2025 •PAYGO Notes ✓Risk is on the developer •Interfund Loans ✓Covers early Admin ✓Pay for project costs ✓Risk is on City/HRA Lyndale Gateway / Interchange West Richfield Sr. Housing PAYGO Note Best Buy PAYGO Note Urban Village Note B PAYGO Note City Bella City Bella PAYGO Note Lyndale Gateway West (Kensington Park)Interfund Loan - From ILN Interfund Loan - From HRA General Fund Interfund Loan - From HRA Development Fund Cedar Avenue (Rya)CPII Development PAYGO Note Rya PAYGO Note 2010-1 Woodlake Housing PAYGO Note A Lyndale Gardens Master PAYGO Note Secondary PAYGO Note (Henley) 2014-1 RM Senior Living Richfield (Havenwood)RM Senior Housing PAYGO Note 2017-1 Chamberlain Chamberlain Apartments PAYGO Note 2018-1 Cedar Pointe Townhomes - RF 64 Cedar Point PAYGO Note Interfund Loan - From HRA Development Fund 2020-2 Emi (101 66th St E)Interfund Loan - From HRA General Fund 2020-3 Lynk65 (Lynvue)Note A PAYGO Note 2020-1 Henley II (Riley)Richfield Property Holdings, LLC PAYGO Note 1295 1286 1281 / 1282 3,833,518 6,153,162 1296 1280 TIF No.District Name Obligation Outstanding 1,978,465 3,836,362 57,850,839 13,803,987 1,100,000 533,913 85,613 1289 567,519 1290 10,622,304 1285 1287,1288 1294 17,606 1293 706,760 1,291,908 589,469 573,111 2,520,830 1291 2,375,256 1292 7,142,377 Page 16 of 60 12 •Interchange West / Lyndale Gateway decertifies and will be on tax roll for 2026 •Richfield Senior Housing ✓Estimated 532,663 in additional tax capacity •Best Buy ✓Market value for 2025 is $69 million ✓Estimated MV for 2026 is $62,456,000 ➢Estimated 939,266 in additional tax capacity Interchange West / Lyndale Gateway Page 17 of 60 13 •Urban Village decertifies and will be on tax roll for 2026. ✓Estimated MV for 2026 is $73.6 million ✓Estimated 1,012,829 in additional tax capacity Urban Village Page 18 of 60 14 •Unobligated TIF may be used to redevelop sites or build affordable housing not located in a TIF District •3 Districts identified ✓Lyndale Gateway / Interchange West ✓Urban Village ✓City Bella •3 Pooling Options ✓Special Legislation for 10% pooling to Housing Trust Fund ✓Temporary Legislation for Spending Plans ✓25% Regular Pooling Pooling Opportunities Page 19 of 60 15 •2021 Special Legislation ✓Designate an additional 10% for affordable housing ✓Transfer this additional 10% out of TIF funds to Housing Trust Fund ➢$750,000 transferred in 2022, $350k spent to date ➢Funds available now, can be transferred anytime through December 31, 2026 Special Legislation: 10% to Housing Trust Fund Year Lyndale Gateway / Interchange West District Urban Village TIF District City Bella TIF District TOTAL 2022 250,000$ 250,000$ 250,000$ 750,000$ 2023 - - - - 2024 - (80,000) - (80,000) 2025 (270,000) - - (270,000) TOTAL (20,000)$ 170,000$ 250,000$ 400,000$ Page 20 of 60 16 •TIF Authorities can use unobligated tax increment to help stimulate private development ✓Spending Plan adopted December 13, 2022 ➢Funds transferred to a new fund, $1.3M spent to date ✓Funds must be spent by December 31, 2026, if Spending Plan is amended; otherwise spent by 2025 ➢Council will consider Amendment to allow extension to 2026 at November 25 meeting ➢Unspent increment transferred back to TIF Fund(s) Temporary Spending Authority: Ends 12/2026 Year Lyndale Gateway / Interchange West District Urban Village TIF District City Bella TIF District TOTAL 2022 3,145,000$ 760,000$ 465,000$ 4,370,000$ 2023 - - - - 2024 - - - - 2025 (1,300,000) - - (1,300,000) TOTAL 1,845,000$ 760,000$ 465,000$ 3,070,000$ Page 21 of 60 17 •Public Redevelopment Costs ✓Spent within Richfield Redevelopment Project Area (City limits) ✓Includes up to 10% for Administrative costs ✓Must meet criteria for “TIF eligible” of Pooled District ✓Other redevelopment districts can also participate 25% Regular Pooling Year Lyndale Gateway / Interchange West District Urban Village TIF District City Bella TIF District TOTAL 2025 3,871,991 745,235 180,000 4,797,226 2026 - - 180,000 180,000 2027 - - 180,000 180,000 2028 - - 180,000 180,000 2029 - - 180,000 180,000 2030 - - 660,525 660,525 TOTAL 3,871,991$ 745,235$ 1,560,525$ 6,177,751$ Page 22 of 60 18 Housing Districts and Affordable Housing •Affordable Criteria ✓20% of units at 50% or less of median income ✓40% of units at 60% or less of median income ✓Rental projects remain affordable for life of TIF districts ✓Owner-occupied affordable for initial sale •No limit - Considered “In-District” •2 Districts with future potential ✓2010-1 Woodlake Housing: $3.3M by 2039 ➢$175,000/year until PAYGO Note paid in 2035; $260,000/year until decertification ✓2017-1 The Chamberlain: $8.9M by 2045 ➢$0/year until PAYGO Note is paid in 2036; $825,000/year until decertification Page 23 of 60 19 •Districts must have an obligation Compliance: 5-Year Rule TIF District Five-Year Rule Deadline 2020-2: Emi (101 – 66th Street E.)March 2026 2020-3: Lynk 65 (Lynvue)March 2026 Page 24 of 60 20 •Redevelopment TIF certified March 16, 2021 ✓Five-year Rule: March 16, 2026 •Terminated Agreement with Developer for non-performance •Recommendation: Decertify TIF District 2020-2: Emi Page 25 of 60 21 •Statute allows for up to 10% of revenues or expenses for administrative costs ✓Depends on when district was established ✓Includes staff time, legal expenses, financial advisory expenses, publication and reporting expenses ➢Staff time must be documented ✓10% limit must be met when district decertifies ➢Not an annual calculation ➢Cannot take 10% “off the top” Administrative Expenses Page 26 of 60 22 •Two districts will decertify December 2025 ✓Interchange West / Lyndale Gateway ✓Urban Village •All districts on track and in compliance ✓Decertify TIF 2020-2: Emi ✓Amend Spending Plan to extend term to 2026 •Looking Ahead ✓Affordable housing opportunities available now and in the future ➢Pooling and In-District opportunities Findings & Recommendations Page 27 of 60 23 AQ & Page 28 of 60 Housing and Redevelopment Authority Meeting 11/17/2025 Agenda Section: Consent Calendar Agenda Item: 7.a. Report Prepared By: Celeste McDermott, Housing Specialist Department Director: Melissa Poehlman, Community Development Director Item for Consideration: Consideration of a resolution authorizing an amendment to the Developer Agreement with West Hennepin Affordable Housing Land Trust. EXECUTIVE SUMMARY In January 2025, the Housing and Redevelopment Authority (HRA) entered into a Developer Agreement (Agreement) with the West Hennepin Affordable Housing Land Trust (WHAHLT) to acquire and remodel up to three Richfield homes through the New Home Program (Program). Once remodeled, the homes would be placed into the land trust's affordable housing program and sold to income-qualified households earning 80% or less than the Area Median Income ($104,200 for a household of 4 people). The HRA pledged $80,000 in funding towards the acquisition and rehabilitation of each home, for a total maximum assistance of $240,000. Since executing the Agreement, WHAHLT has identified funding sources and opportunities to purchase and rehabilitate additional homes in Richfield in 2025. To leverage these additional funds effectively, WHAHLT is requesting flexibility in both the number of homes acquired and the amount of HRA assistance allocated per property. The total HRA contribution will remain capped at $240,000 and only the per-property funding amounts would be adjusted to align with individual property needs. Funding for this work is budgeted to come from the Affordable Housing Trust Fund (AHTF). So far in 2025, WHAHLT has completed three projects and requested $170,000 in reimbursement. They have requested to use the remaining $70,000 on a fourth property. RECOMMENDED ACTION By motion: Adopt a resolution approving a First Amendment to the Developer Agreement with West Hennepin Affordable Housing Land Trust. HISTORICAL CONTEXT • In January 2025, the HRA entered into an Agreement with WHAHLT to contribute $240,000 in AHTF Funds for the rehabilitation of up to three homes in Richfield under the land trust program. • Since 2002, WHAHLT has successfully purchased, rehabilitated and sold 13 homes and constructed 3 new homes in Richfield. • Funding for the work of the Program has varied by year, with most recent Page 29 of 60 projects funded with local Community Development Block Grant funds and the AHTF, as well as pooled Tax Increment Financing. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS • The Program furthers equity goals by providing a path to affordable homeownership for low-income households. • The Program supports the 2023-2027 Strategic Plan outcome of maintaining Richfield as an affordable place to live. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) • The objectives of the Program are to: o Eliminate the blighting influence of substandard housing, thus improving residential neighborhoods; o Maintain and improve the existing housing stock while preserving housing affordability; o Develop quality housing with long-term affordability, to the greatest extent possible; and o Coordinate with developers to provide affordable housing for families. • Purchasing and rehabilitating homes to provide affordable housing carries out the policies of the City’s Comprehensive Plan by: o Supporting the rehabilitation and upgrading of the existing housing stock; o Promoting the development, management and maintenance of affordable housing in the City through assistance programs, alternative funding sources; and o Creating partnerships with those whose mission is to promote low to moderate-income housing. CRITICAL TIMING ISSUES WHAHLT has identified additional properties in Richfield that they would like to develop under the Program. The First Amendment must be approved before they can include these properties in the Program and request reimbursement. FINANCIAL IMPACT • The 2025 budget includes $240,000 in AHTF for acquisition and rehabilitation through the Program for WHAHLT to purchase and rehab up to three homes ($80,000 per property). • In 2025 WHAHLT has managed to purchase and rehab three homes with less than $80,000 per property, allowing enough remaining to purchase a fourth property. • The total funding available to WHAHLT will remain at $240,000. Page 30 of 60 LEGAL CONSIDERATIONS The Agreement was prepared by HRA legal counsel. ALTERNATIVE RECOMMENDATION(S) Do not approve a resolution authorizing execution of the First Amendment to the Developer Agreement with the West Hennepin Affordable Housing Land Trust, dba Homes Within Reach. ATTACHMENTS 1. 111725 WHAHLT_HRA_Resolution 2. 111725 First_Amendment_to_2025_WHAHLT_Developer_Agreement 3. WHAHLT_Developer_Agreement_2025 Page 31 of 60 HRA RESOLUTION NO. _____ RESOLUTION APPROVING FIRST AMENDMENT TO DEVELOPER AGREEMENT WITH WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST DBA HOMES WITHIN REACH WHEREAS, in January 2025, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the “Authority”) entered into a Developer Agreement with West Hennepin Affordable Housing Land Trust dba Homes Within Reach, a Minnesota nonprofit corporation (“WHAHLT”) and provide it with Community Development Block grant funding (“CDBG funds”) and/or Affordable Housing Trust Fund ("AHTF funds") to purchase, rehabilitate, and resell up to three properties to households earning at or below 80% of the area median income; and WHEREAS, the Authority would like to amend the Developer Agreement to allow WHAHLT to utilize the available $240,000 in CDBG Funds and/or AHTF Funds toward the acquisition and rehabilitation of more than three properties, with flexibility in the amount of funding applied to each property, provided that the total reimbursement does not exceed $240,000; and WHEREAS, there has been presented before the Board of Commissioners of the Authority a First Amendment to Developer Agreement (the “First Amendment”) to be executed by the Authority and WHAHLT, which sets forth the terms of the use of the CDBG funds and/or AHTF funds to be provided to WHAHLT; and NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1.The First Amendment is hereby in all respects authorized, approved, and confirmed, and the Chair and the Executive Director are hereby authorized and directed to execute the First Amendment for and on behalf of the Authority in substantially the form now on file with the Executive Director but with such modifications as shall be deemed necessary, desirable, or appropriate, the execution thereof to constitute conclusive evidence of their approval of any and all modifications therein. 2.The Chair and the Executive Director are hereby authorized to execute and deliver any and all documents deemed necessary to carry out the intentions of this resolution and the First Amendment. 3.This resolution shall be in full force and effect as of the date hereof. Page 32 of 60 2 Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17th day of November, 2025. Erin Vrieze Daniels, Chair ATTEST: Sean Hayford Oleary, Secretary Page 33 of 60 1 FIRST AMENDMENT TO DEVELOPER AGREEMENT (West Hennepin Affordable Housing Land Trust dba Homes Within Reach) THIS FIRST AMENDMENT TO DEVELOPER AGREEMENT (the “First Amendment”), made and entered into as of this 17 of November, 2025, by and between the Housing and Redevelopment Authority in and for the City of Richfield (“Authority” or “HRA”), 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 the West Hennepin Affordable Housing Land Trust dba Homes Within Reach, a nonprofit corporation under the laws of Minnesota, having its principal office at 5100 Thimsen Ave, Suite 120, Minnetonka, MN 55345. (“Developer” or “WHAHLT”). This First Amendment amends the Developer Agreement, dated January 20th, 2025 (the “Developer Agreement”), between the HRA and the Developer. RECITALS A.The HRA and the Developer entered into the Developer Agreement to provide WHAHLT with $240,000 in Community Development Block Grant funds (“CDBG Funds”) or Affordable Housing Trust Fund funds (“AHTF Funds”) for the purposes of acquiring and rehabilitating homes in the City of Richfield (the “City”) to be resold to people earning at or below 80% of the area median income. B.The Developer Agreement directed WHAHLT to purchase, rehabilitate, and resell up to three properties eligible to be purchased, and rehabilitated with the CDBG Funds or AHTF Funds (the “Eligible Properties”) and resold. C.The maximum amount of reimbursement available under the Developer Agreement was $80,000 per Eligible Property up to a total of $240,000. D.At this time, the HRA would like to amend the Developer Agreement to allow the Developer to utilize the available $240,000 in CDBG Funds or AHTF Funds toward the acquisition and rehabilitation of more than three properties, with flexibility in the amount of funding applied to each property, provided that the total reimbursement does not exceed $240,000. Funds will be paid to WHAHLT upon sale of each Eligible Property and submittal of all required documentation to the HRA. AMENDMENTS Section 1.1. Agreement. The term “Agreement” shall mean the Developer Agreement, as amended by this First Amendment. Section 1.2. Additional Eligible Properties. The HRA and WHAHLT agree that the Developer may acquire, rehabilitate, and resell more than three Eligible Properties utilizing the Page 34 of 60 2 CDBG Funds or AHTF Funds provided under the Agreement, subject to all other applicable terms and conditions of the Agreement. Section 1.3. Flexibility in Funding Allocation. The HRA and WHAHLT further agree that the limitation of $80,000 per Eligible Property established in the Agreement is hereby removed. WHAHLT may determine the amount of funding to be applied to each Eligible Property based on need, provided that the total reimbursement under the Agreement shall not exceed $240,000. MISCELLANEOUS Section 2.1. Definitions. Any capitalized terms used herein but not otherwise defined shall have the meanings assigned to such terms in the Original Agreement. Any references to the “Agreement” or “this Agreement” in the Original Agreement shall refer to the Original Agreement, as amended and supplemented by this First Amendment. Section 2.2. Effective Date. The amendments and supplements made to the Original Agreement, as amended and supplemented by this First Amendment shall be effective as of November 17, 2025. Section 2.3. Confirmation of Agreement. Except as specifically amended by this First Amendment, the Developer Agreement is hereby ratified and confirmed and remains in full force and effect. (The remainder of this page is intentionally left blank.) Page 35 of 60 A-1 IN WITNESS WHEREOF, the Authority has caused this First Amendment to Developer Agreement to be duly executed in its name and behalf and WHAHLT has caused this Agreement to be duly executed in its name and behalf as of the date first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By ________________________________ Its Chairperson By ________________________________ Its Executive Director WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST By ________________________________ Its Executive Director RC125-1(JAE) 697972v.1 Page 36 of 60 1 DEVELOPER AGREEMENT (West Hennepin Affordable Housing Land Trust dba Homes Within Reach) THIS DEVELOPER AGREEMENT (the “Agreement”), made and entered into as of this 20th of January, 2025 (“Effective Date”), by and between the Housing and Redevelopment Authority in and for the City of Richfield (“Authority” or “HRA”), 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 the West Hennepin Affordable Housing Land Trust (dba Homes Within Reach), a nonprofit corporation under the laws of Minnesota, having its principal office at 5100 Thimsen Ave, Suite 120, Minnetonka, MN 55345. (“Developer” or “WHAHLT”). RECITALS A. The HRA intends to provide WHAHLT with up to $240,000 in Community Development Block Grant funds (“CDBG Funds”) or Affordable Housing Trust Fund funds (“AHTF Funds”) for the purposes of acquiring and rehabilitating up to three homes in the City of Richfield (the “City”) to be resold to people earning at or below 80% of the area median income. B. The HRA desires WHAHLT to purchase, rehabilitate, and resell up to three properties eligible to be purchased, rehabilitated and resold with CDBG Funds or AHTF Funds (the “Eligible Properties”) and WHAHLT has agreed to do so pursuant to the terms and conditions of this Agreement. C. The City and the HRA have previously established a New Home Program pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047. D. WHAHLT will utilize the Community Land Trust model to purchase, rehabilitate, and resell the property(ies) to an income-qualified buyer(s), and will retain ownership of the land to ensure long-term affordability. E. The grant of the CDBG Funds or AHTF Funds to WHAHLT is for the purpose of providing affordable housing within the City and to assist in carrying out the objectives of the New Home Program, which are in the 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. F. In performing its obligations under this Agreement, WHAHLT must adhere to the restrictions for the use of CDBG Funds or AHTF Funds set forth in this Agreement. AGREEMENT 1. Scope of Work. A. Developer. The HRA hereby designates WHAHLT as a Developer to purchase, rehabilitate, and resell Eligible Properties in accordance with the terms and conditions of this Agreement. Page 37 of 60 2 B. Memorandum of Understanding. WHAHLT shall purchase, rehabilitate and resell Eligible Properties based on the Memorandum of Understanding of the parties set forth in EXHIBIT A. C. Criteria. WHAHLT will identify Eligible Properties that WHAHLT would like to acquire under this Agreement. Prior to the acquisition of an Eligible Property, WHAHLT shall provide the HRA with a Developer Pro Forma in the form set forth in EXHIBIT B. D. Compliance with Required Programs. To the extent required by federal, state, and local law and regulation, WHAHLT agrees to comply with the program requirements of: (i) Equal opportunity and discrimination provisions of all applicable State and Federal laws, rules, and regulations; (ii) Section 504 of the Rehabilitation Act of 1973, as amended; (iii) Fair housing requirements of section 104(b) and section 109 of Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, and other applicable fair housing laws; (iv) All Lead Laws and Rules, including Minn. Stat. Sections 144.9501 through 144.9512, Minnesota Rules 4761.2000 through 4761.2700, and Federal Regulations including Residential Lead-Based Paint Disclosure Program (Section 1018 of Title X) and the Renovation, Repair, and Painting Rule (TSCA 406(B)). (v) The Hennepin County Affirmative Action Policy. WHAHLT further agrees to provide HRA with a timely certification that the requirements listed in this Section have been met. E. Resale of Property. After WHAHLT completes the rehabilitation of an Eligible Property, WHAHLT will market said Eligible Property and execute a purchase agreement with an end buyer earning at or below 80% of the area median income. F. Reports. WHAHLT shall provide HRA with a report of its activities on an as- needed basis, including but not limited to reports related to the income of the end buyer of each Eligible Property. 2. Term. This Agreement is effective as of the Effective Date and until December 31, 2024. 3. Acquisition, Relocation and Displacement. WHAHLT shall be responsible for carrying out all acquisitions of real property necessary for implementation of this Agreement. WHAHLT shall conduct all such acquisitions in its name and shall hold title to all real property purchased and shall be responsible for preparation of all notices, appraisals, and documentation required in conducting acquisition under the regulations of the Uniform Relocation Assistance and Real Page 38 of 60 3 Property Acquisition Act of 1970, as required under 49 CFR Part 24. WHAHLT shall also be responsible for providing all relocation notices, counseling, and services required by said regulations. In addition, WHAHLT shall comply with the acquisition and relocation requirements of the Minn. Stat. Sections 117.50 through 117.56 (the “Minnesota Relocation Act”). 4. Labor Standards, Employment and Contracting. WHAHLT shall notify the HRA prior to initiating any rehabilitation activities, including advertising for contractual services, which will include costs likely to be subject to the provisions of Federal Labor Standards and Equal Employment Opportunity and related implementing regulations. 5. Documentation. WHAHLT must maintain the following records and reports relating to Eligible Properties acquired pursuant to this Agreement: income documentation for buyer of property financed with CDBG Funds or AHTF Funds, appraisals, environmental reports, purchase agreements, settlement statements, and deed document number/filing information per property. WHAHLT shall submit copies of the foregoing documentation to HRA with respect to any Eligible Property acquired pursuant to this Agreement prior to closing with the buyer. The HRA will issue a clear to close once documentation has been submitted. 6. Suspension and Termination. If WHAHLT materially fails to comply with any term of this Agreement after written notice and an opportunity to cure, this Agreement may be terminated. The time period for said opportunity to cure will be dependent upon the relevant time period requirements of the applicable law, regulation, program, or otherwise. 7. Notice. All communications, notices, and demands of any kind which either party may be required or may desire to give to or serve upon the other shall be made in writing, and such notice shall be deemed sufficiently given if and when it is addressed to then other party as provided below and either (a) delivered personally, (b) deposited in the United States mail, registered or certified, with postage prepaid, (c) deposited with an overnight delivery service for next day delivery, or (d) telecopied: To HRA: Richfield Housing and Redevelopment Authority Attention: Melissa Poehlman, Executive Director 6700 Portland Avenue Richfield, Minnesota 55423-2599 Fax: (612) 861-8974 To WHAHLT: West Hennepin Affordable Housing Land Trust Attention: Brenda Lano, Executive Director 5100 Thimsen Avenue Suite 120 Minnetonka, MN 55345-4117 8. Data Practices. WHAHLT agrees to abide by the provisions of the Minnesota Government Data Practices Act and all other applicable State and Federal laws, rules, and regulations relating to data privacy and confidentiality, and as any of the same may be amended. Page 39 of 60 4 9. Access to Records. HRA shall have the authority to review any and all procedures and all materials, notices, and documents prepared by WHAHLT in implementation of this Agreement. 10. Indemnification. WHAHLT agrees to hold harmless, indemnify and defend HRA, its elected officials, officers, agents, and employees against any and all claims, losses, or damages, including attorneys’ fees, arising from, allegedly arising from, or related to, the provision of services under this Agreement by WHAHLT, its employees, agents, officers, or volunteer workers. 11. Independent Contractor. Nothing in this Agreement is intended, nor may be construed, to create the relationship of partners or employer/employee between the parties. WHAHLT, its officers, agents, employees, and volunteers are, and will remain for all purposes and services under this Agreement, independent contractors. 12. Entire Agreement. The entire agreement of the parties is contained in this document. This Agreement supersedes all previous written and oral agreements and negotiations between the parties relating to the subject matter of this Agreement except as provided in paragraph 17 of this Agreement. 13. Severability. The invalidity, illegality or enforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, all of which shall remain in full force and effect. 14. Assignment of Agreement. The parties shall not assign this Agreement without the express written consent of the other party. 15. Modification. No provision, term or clause of this Agreement shall be revised, modified, amended or waived except by an instrument in writing signed by both parties. 16. Counterparts. This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed to be an original, all of which, when taken together, shall constitute one agreement. 17. Headings. The titles to the sections and headings of various paragraphs of this Agreement are placed for convenience of reference only and in case of conflict, the text of this Agreement, rather than such titles or headings shall control. 18. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of each of the parties hereto. 19. Invalidity. If for any reason any portion or paragraph of this Agreement shall be declared void and unenforceable by any court of law or equity, it shall only affect such particular portion or paragraph of this Agreement, and the balance of this Agreement shall remain in full force and effect and shall be binding upon the parties hereto. 20. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Minnesota. Page 40 of 60 5 21. Electronic Signatures. This Agreement may be executed with electronic signatures. (Signature page follows) Page 41 of 60 S-1 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and WHAHLT has caused this Agreement to be duly executed in its name and behalf as of the date first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By ________________________________ Its Chairperson By ________________________________ Its Executive Director WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST By ________________________________ Its Executive Director Page 42 of 60 A-1 EXHIBIT A PROCEDURES Memorandum of Understanding Properties, In General: WHAHLT will identify, purchase, and rehabilitate up to three Eligible Properties for subsequent resale to households earning at or below 80% of the Area Median Income. The HRA agrees to cover $80,000 of the Development Gap for Eligible Properties. Development Gap means the estimated total development costs less the sales price of the improved property up to a maximum gap amount as shown on “Exhibit B” or other developer pro forma approved by the HRA. Identification of Eligible Property: WHAHLT will identify Eligible Properties. WHAHLT will provide the HRA with the identity of the Eligible Property so that the HRA may decide whether the HRA will use CDBG or AHTF funds to acquire said Eligible Property. Purchase of Eligible Property: WHAHLT will identify one or more Eligible Properties and only purchase an Eligible Property after receipt of the HRA’s express written consent. HRA may express its written consent via email to WHAHLT at blano@homeswithinreach.org. WHAHLT shall be responsible for the timely completion of all CDBG or AHTF required documentation. Rehabilitation of Eligible Property: After WHAHLT has purchased an Eligible Property, WHAHLT will submit a rehabilitation plan to the HRA and the HRA will agree in writing to the plan, prior to WHAHLT beginning its rehabilitation efforts at that Eligible Property. Subsequent Resale of Certain Eligible Property to End Buyer: After WHAHLT completes the rehabilitation of an Eligible Property, WHAHLT will market said Eligible Property and execute a purchase agreement with an end buyer whose household income is at or below 80% of Area Median Income. WHAHLT will maintain long-term affordability by retaining ownership of the land through its land trust. Reimbursement of Acquisition/Rehabilitation Costs (or Payment of the Development Gap): •WHAHLT will use its own funds to purchase an eligible property. •Following the acquisition of the property, WHAHLT may request that the HRA provide payment up to $65,000 of the estimated Development Gap. •The remaining $15,000 will be paid upon sale of the Eligible Property and submittal of all required documentation to the HRA. •The maximum amount of reimbursement available under this Agreement is $80,000 per Eligible Property up to a total of $240,000. Page 43 of 60 B-1 EXHIBIT B DEVELOPER PRO FORMA Sources & Uses - Preliminary Name of Property: Date: Sources: Comments Homebuyer Mortgage $ 20__ AHIF $ Project Costs 20__ Richfield Tax Increment $ Land & Project Costs 20__ HOME $ Land 20__ MH Impact $ Project Costs 20__ Bond Proceeds $ Land 20__ Met Council $ Rehab Total $ Uses: Acquisition Costs $ Closing Costs $ Inspection/other $ Acquisition costs $ Adm Fee $ Project Fee & HOME Fee Holding/Closing Costs/ LC/ Taxes $ Special Assessments of $_______ Rehab Costs $ Total $ Page 44 of 60 Page 45 of 60 Housing and Redevelopment Authority Meeting 11/17/2025 Agenda Section: Resolutions Agenda Item: 10.a. Report Prepared By: Melissa Poehlman, Community Development Director Department Director: Melissa Poehlman, Community Development Director Item for Consideration: Consider an Amendment to the 2022 Spending Plan for unobligated tax increment. EXECUTIVE SUMMARY In 2021, the State Legislature provided temporary authority to use unobligated tax increment from existing tax increment districts to help stimulate private development that would not otherwise occur. The legislation allowed greater flexibility in the use of these tax increment funds in order to create or retain jobs. On November 21, 2022, the Housing and Redevelopment Authority (HRA) adopted a tax increment Spending Plan for up to $6,345,000 in unobligated tax increment from the Lyndale Gateway/Interchange West, Urban Village, and City Bella Tax Increment Financing (TIF) Districts. The 2021 temporary authority required projects to be under construction by December 31, 2025. In 2025, the Legislature amended the temporary legislation to allow authorities to amend their spending plans to allow funds to be spent through December 31, 2026. The City supported and advocated for this amendment. The amended Spending Plan (attached) extends this deadline for using funds; no other changes are proposed. The strategy to retain unobligated tax increment in the most-flexible fund for the maximum amount of time continues. RECOMMENDED ACTION By Motion: Approve a resolution amending the tax increment Spending Plan. HISTORICAL CONTEXT As part of the 2022 Tax Increment Management Review and Analysis Report, three separate statutory authorities under which pooled increment could be spent were discussed with the HRA and City Council. These include regular pooling, special legislation to allow the City/HRA to transfer 10% of increment pooled for housing to the Affordable Housing Trust Fund, and the temporary legislation allowing greater flexibility to stimulate development in the wake of the Covid-19 pandemic. The three options include different timelines and authorized uses, and a plan to maximize the effectiveness of this money was agreed upon. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The adopted Spending Plan stipulates that preference for assistance shall be based on goals identified by the Comprehensive Plan and the following priorities identified by the City's Strategic Plan: Page 46 of 60 •A vibrant downtown that includes both new housing and business; •Increased tax base through redevelopment that advances the Comprehensive Plan; •Maintaining Richfield as an affordable place to live; and •Climate resilience through the support of projects that advance the Climate Action Plan and sustainability goals. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) •In 2021, the State Legislature provided temporary authority to use unobligated TIF from existing TIF Districts to help stimulate private development that would not otherwise occur without assistance prior to December 31, 2025. The 2025 Legislature extended this deadline to December 31, 2026. •A public hearing before the City Council is also required. This hearing is scheduled for November 25, 2025. CRITICAL TIMING ISSUES •To take advantage of the extended deadline, an Amended Spending Plan must be adopted prior to December 31, 2025. •Money not spent prior to the deadline, can be transferred to the Affordable Housing Trust Fund (transfer deadline December 31, 2026) or spent under regular pooling rules. FINANCIAL IMPACT None at this time. The proposed amendment changes only the deadline by which funds can be spent. LEGAL CONSIDERATIONS •The proposed action has been reviewed by the HRA Attorney. •Failure to adopt a revised Spending Plan by the end of the year would mean that the HRA could no longer take advantage of this additional flexibility. ALTERNATIVE RECOMMENDATION(S) Do not approve an amendment to the Spending Plan and direct staff to bring forward alternative options for these funds. ATTACHMENTS 1.Resolution Page 47 of 60 HRA RESOLUTION NO. ______ A RESOLUTION APPROVING AN AMENDED TAX INCREMENT SPENDING PLAN WHEREAS, on November 21, 2022, the Housing and Redevelopment Authority in and for the City of Richfield (the “HRA”) adopted a tax increment spending plan (the “Spending Plan”) pursuant to Minnesota Statutes, section 469.176, subd 4n which required that all funds be spent by December 31, 2025; and WHEREAS, the Minnesota Legislature 2025, 1st Special Session amended Minnesota Statutes, section 469.176, subd. 4n to allow tax increment authorities to amend their spending plans to allow funds to be spent through December 31, 2026; and WHEREAS, the HRA has determined to modify the Spending Plan to avail itself of the 2025 statutory changes. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the HRA as follows: 1.The amended Spending Plan attached hereto as Exhibit A is hereby adopted. 2.HRA staff and consultants are authorized and directed to take any and all actions necessary or convenient to carry out the intent of this resolution, including filing an executed copy of the amended Spending Plan with the Office of the State Auditor. Dated: November 17, 2025 Erin Vrieze Daniels, Chair ATTEST: Sean Hayford Oleary, Secretary Page 48 of 60 HRA Consideration: November 21, 2022 City Approval: December 13, 2022 HRA Review of Amendment: November 17, 2025 City Council Public Hearing: November 25, 2025 Richfield Housing and Redevelopment Authority City of Richfield, Hennepin County, Minnesota Spending Plan Lyndale Gateway / Interchange West TIF District Urban Village TIF District City Bella TIF District BUILDING COMMUNITIES. IT’S WHAT WE DO. Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, Minnesota 55113 Exhibit A Page 49 of 60 Spending Plan for Lyndale Gateway / Interchange West, Urban Village and City Bella Tax Increment Financing Districts PURPOSE The Richfield Housing and Redevelopment Authority (the “Authority”) administers the Tax Increment Financing Districts listed above (the “TIF Districts”) in the City of Richfield, Minnesota (the “City”), and proposes to adopt a Spending Plan for the TIF Districts in accordance with Minnesota Statutes, Section 469.176 Subd. 4n (the “Act”). The purpose of the Spending Plan is to develop or redevelop sites, lands or areas within the City in conformity with the City’s Comprehensive Plan or other City plans or objectives by using available tax increments from the TIF Districts to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities, which will create or retain jobs in this state, including construction jobs. UNOBLIGATED TIF FUNDS The HRA has identified a total of $6,346,000 in unobligated funds on hand within the TIF Districts (“Unobligated Tax Increments”): $771,000 of unobligated funds of the Urban Village Tax Increment Financing District; $5,121,000 of unobligated funds of the Lyndale Gateway / Interchange West Tax Increment Financing District; and $454,000 of unobligated funds of the City Bella Tax Increment Financing District. PLAN Amended November 25, 2025 to read as follows: The Authority is authorized as follows: (a) To use Unobligated Tax Increments from the TIF Districts and any interest earned on the tax increment to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities (the "Projects") in financing assistance to further the goals in the City’s Comprehensive Plan or other City plans or objectives, if doing so will create or retain jobs in the state, including construction jobs. Preference for financing assistance shall be based on the City of Richfield Strategic Plan FY 2023-2026, adopted in July 2022. These priorities include: (1) a vibrant downtown that includes both new housing and business; (2) increased tax Page 50 of 60 base through redevelopment that advances the Comprehensive Plan; (3) maintaining Richfield as an affordable place to live; (4) climate resilience through the support of projects that advance the Climate Action Plan and sustainability goals; and (5) additional goals as identified by the Comprehensive Plan or other City plans or objectives. The Projects shall commence before December 31, 2026 (unless a later commencement date is authorized by law) and shall constitute Projects that would not commence by such date without the assistance provided pursuant to this Spending Plan. (b) To amend the budget set forth in the Tax Increment Financing Plans for the TIF Districts as necessary to provide for the assistance authorized by this Spending Plan. (c) To take any other action necessary and authorized under the Act in connection with the construction or substantial rehabilitation of facilities of the type described in clause (a) above. The assistance provided pursuant to this Plan shall be subject to Minnesota Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidy Law”), if applicable, and shall be subject to the City’s Business Subsidy Policy. ADOPTED AS AMENDED: November 25, 2025 ATTEST: Mayor City Clerk Page 51 of 60 Housing and Redevelopment Authority Meeting 11/17/2025 Agenda Section: Resolutions Agenda Item: 10.b. Report Prepared By: Melissa Poehlman, Community Development Director Department Director: Melissa Poehlman, Community Development Director Item for Consideration: Consideration of a resolution authorizing the decertification of Tax Increment Financing District No. 2020-2 EXECUTIVE SUMMARY On January 26, 2021, the City of Richfield created Tax Increment Financing (TIF) District No. 2020-2: Emi. The redevelopment TIF District was intended to provide assistance necessary to construct a mixed-use project on property located at 101 - 66th Street East. Several obstacles, including increased construction and material costs, have forced the developer to abandon the project. As of the end of the year, there will be no outstanding obligations related to the TIF District and no project could take place prior to statutory deadlines. Staff and the Housing and Redevelopment Authority's (HRA) financial consultant recommend that the TIF District be decertified. RECOMMENDED ACTION By Motion: Approve a resolution authorizing the decertification of Tax Increment Financing District No. 2020-2: Emi. HISTORICAL CONTEXT Multiple developers have attempted to construct a project on this site since it initially sold in 2016. Despite an agreement for financial assistance in the form of tax increment, a project has not moved forward. The property remains privately owned and is currently for sale. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Decertification is required due to inactivity. Any new development proposal will be evaluated for equitable and strategic considerations or impacts. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) MN Stat. 469.1763, Subd. 3 requires that development activity within a TIF District be finished within five years of initial certification. CRITICAL TIMING ISSUES • The deadline for activity to be finished in the 2020-2: Emi District is March 16, 2026. It is not feasible to meet this deadline. Page 52 of 60 •Decertficiation in 2025 will minimize additional reporting requirements and costs for the HRA. FINANCIAL IMPACT An interfund loan from the HRA General Fund was authorized to pay for upfront staff costs prior to the District beginning to generate funds. This loan will be repaid to the General Fund using other available TIF Admin funds. LEGAL CONSIDERATIONS See Policies section. ALTERNATIVE RECOMMENDATION(S) None. ATTACHMENTS 1.111725 - Resolution HRA Emi (2020-2) decertification Page 53 of 60 HRA RESOLUTION NO. _____ RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 2020-2: EMI WHEREAS, on January 26, 2021, the City of Richfield (the "City") created its Tax Increment Financing District No. 2020-2: Emi ("District No. 2020-2") within its Richfield Redevelopment Project Area (the "Project"); and WHEREAS, as of December 31, 2025, all bonds and obligations to which tax increment from District No. 2020-2 have been pledged have been paid in full or defeased and all other costs of the Project have been paid; and WHEREAS, the Richfield Housing and Redevelopment Authority (the “HRA”) desires by this resolution to cause the decertification of District No. 2020-2 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 Board of Commissioners of the HRA that the Community Development Director shall take such action as is necessary to cause the County Auditor of Hennepin County to decertify District No. 2020-2 as a tax increment district and to no longer remit tax increment from the District No. 2020-2 to the City. DATED: November 17, 2025 __________________________________ Erin Vrieze Daniels, Chair ATTEST: ________________________________ Sean Hayford Oleary, Secretary Page 54 of 60 Housing and Redevelopment Authority Meeting 11/17/2025 Agenda Section: Resolutions Agenda Item: 10.c. Report Prepared By: Melissa Poehlman, Community Development Director Department Director: Melissa Poehlman, Community Development Director Item for Consideration: Consider a resolution authorizing decertification of the Urban Village Tax Incremement Financing District. EXECUTIVE SUMMARY The Urban Village Tax Increment Financing (TIF) District is a Redevelopment District that was created to facilitate the mixed-use development located on the southeast corner of Lyndale Avenue and 66th Street. The development includes Woodlake Center, the Oaks on Pleasant apartments, and BMO Bank. The TIF District was certified on July 15, 1999, and is required to decertify by December 31, 2025. The tax increment revenue, in the form of two Pay-As-You-Go Notes (Notes), was paid to the developer to assist with property acquisition and excess site development expenses. While there remains a significant outstanding balance on the second Note, neither the City nor the Housing and Redevelopment Authority (HRA) are obligated to pay this amount, and all obligations are considered to be met. The 2026 estimated market value of the properties within the District is $73.6 million. This equates to an estimated $1,012,829 in additional tax capacity in 2026. RECOMMENDED ACTION By Motion: Approve a resolution authorizing decertification of the Urban Village Tax Increment Financing District. HISTORICAL CONTEXT See Executive Summary. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The Urban Village redevelopment project has contributed to the goal of a vibrant downtown and an increased tax base. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) MN Statute 469.176 prescribes the maximum term of a redevelopment TIF Distritct as 25 years after the receipt of the first increment. CRITICAL TIMING ISSUES None. Page 55 of 60 FINANCIAL IMPACT The decertfication of the Urban Village TIF District will result in an estimated $1,012,829 in additional tax capacity in 2026. LEGAL CONSIDERATIONS All obligations have been met and the TIF District must be decertified. ALTERNATIVE RECOMMENDATION(S) None. ATTACHMENTS 1.111725 - Resolution HRA decertification of Urban Village Page 56 of 60 HRA RESOLUTION NO. _____ RESOLUTION APPROVING THE DECERTIFICATION OF THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT WHEREAS, on February 17, 1999, the City of Richfield (the "City") created its Urban Village Tax Increment Financing District ("Urban Village TIF District") within its Richfield Redevelopment Project Area (the "Project"); and WHEREAS, as of December 31, 2025, all bonds and obligations to which tax increment from the Urban Village TIF District have been pledged have been paid in full or defeased and all other costs of the Project have been paid; and WHEREAS, the Richfield Housing and Redevelopment Authority (the “HRA”) desires by this resolution to cause the decertification of the Urban Village TIF District 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 Board of Commissioners of the HRA that the Community Development Director shall take such action as is necessary to cause the County Auditor of Hennepin County to decertify the Urban Village TIF District as a tax increment district and to no longer remit tax increment from the Urban Village TIF District to the City. DATED: November 17, 2025 _______________________________ Erin Vrieze Danials, Chair ATTEST: ________________________________ Sean Hayford Oleary, Secretary Page 57 of 60 Housing and Redevelopment Authority Meeting 11/17/2025 Agenda Section: Resolutions Agenda Item: 10.d. Report Prepared By: Melissa Poehlman, Community Development Director Department Director: Melissa Poehlman, Community Development Director Item for Consideration: Consider a resolution authorizing decertification of the Interchange West / Lyndale Gateway Tax Increment Financing District. EXECUTIVE SUMMARY The Interchange West / Lyndale Gateway Tax Increment Financing (TIF) District is a Redevelopment District that was created to facilitate the site assembly for the Best Buy Headquarters and facilitate redevelopment along Lyndale Avenue that created the Main Street Village senior housing projects and Casteel Place Townhouses. The TIF District was certified on June 14, 1999, and is required to decertify by December 31, 2025. The Housing and Redevelopment Authority (HRA) pledged increment to repay General Obligation Bonds (Bonds) related to the Penn Avenue bridge over Interstate 494, as well as payments on Pay-As-You-Go Notes (Notes) to the housing projects and Best Buy. Final payment on the Bonds was made in February; this obligation has been fully satisfied. There remain significant outstanding balances on the Notes due largely to compounding interest. The City/HRA is not obligated to pay this amount and all obligations are considered to be met. There is estimated to be $1,471,929 in additional tax capacity in 2026 due to the decertification of this TIF District. RECOMMENDED ACTION By Motion: Approve a resolution authorizing decertification of the Interchange West / Lyndale Gateway Tax Increment Financing District. HISTORICAL CONTEXT See Executive Summary. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS These redevelopment projects will contribute significantly to Richfield's tax base. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) MN Statute 469.176 prescribes the maximum term of a redevelopment TIF District as 25 years after the receipt of the first increment. CRITICAL TIMING ISSUES None. Page 58 of 60 FINANCIAL IMPACT The decertfication of the Interchange West / Lyndale Gateway TIF District will result in an estimated $1,471,929 in additional tax capacity in 2026. LEGAL CONSIDERATIONS All obligations have been met and the TIF District must be decertified. ALTERNATIVE RECOMMENDATION(S) None. ATTACHMENTS 1. 111725 - Resolution HRA decertification of IW-Lyn Gateway Page 59 of 60 HRA RESOLUTION NO. _____ RESOLUTION APPROVING THE DECERTIFICATION OF THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT WHEREAS, on June 29, 1999, the City of Richfield (the "City") created its Interchange West and Lyndale Gateway Tax Increment Financing District (the "TIF District") within its Richfield Redevelopment Project Area (the "Project"); and WHEREAS, as of December 31, 2025, all bonds and obligations to which tax increment from the TIF District have been pledged have been paid in full or defeased and all other costs of the Project have been paid; and WHEREAS, the Richfield Housing and Redevelopment Authority (the “HRA”) desires by this resolution to cause the decertification of the TIF District 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 Board of Commissioners of the HRA that the Community Development Director shall take such action as is necessary to cause the County Auditor of Hennepin County to decertify the TIF District as a tax increment district and to no longer remit tax increment from the TIF District to the City. DATED: November 17, 2025 ______________________________ Erin Vrieze Daniels, Chair ATTEST: ________________________________ Sean Hayford Oleary, Secretary Page 60 of 60