011811completeagendaCITY OF RICHFIELD, MINNESOTA
TUESDAY; JANUARY 1$, 2011
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY~HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
Roll call
Consideration of election of HRA officers for 2011
Staff Report No. 1
Notes:
2. Approval of minutes of Regular HRA Meeting of December 20, 2010
3. HRA approval of agenda
4. Presentation regarding Housing Improvement Areas
5. HRA Programs 2010 Year in Review
6. Consent Calendar contains several separate items which are acted upon by the HRA in
one motion. Once the Consent Calendar has been approved, the individual items and
recommended actions have also been approved. No further HRA action is necessary.
However, any HRA Commissioner may request that an item be removed from the
Consent Calendar and placed on the regular agenda for HRA discussion and action. All
items listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of designating Community Development Director as
Acting Executive Director of HRA in event Executive Director is absent from City for
2011 S.R. No. 2
B. Consideration of approval of resolutions designating official depositories for HRA,
including collateral, for 2011 S.R. No. 3
C. Consideration of approval of resolution designating Richfield Sun-Current as official
newspaper for 2011 S.R. No. 4 ..
D. Consideration of approval of 2011 consultanfi services agreement with Greater
Metropolitan Housing Corporation S.R. No. 5
Notes:
7. Consideration of resolution authorizing fees for appeals of Housing and Redevelopment
Authority loan subordination requests
Staff Report No. 6
Notes:
8. Consideration of contract with Arteka Companies, LLC for streetscape improvements.
at 6401 and 6444 Penn Avenue
Staff Report No. 7
Notes:
9. Consideration of a resolution authorizing the Executive Director and Housing and
Redevelopment Authority Chair to execute instruments to purchase vacant and
foreclosed properties using up to $450,000 from the Housing and Redevelopment
Fund through December 31, 2011
Staff Report No. 8
Notes:
10. HRA Discussion Items
11. Executive Director report
12. Claims and payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
richfield: January 2011
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AGENDA ITEM#:
REPORT #:
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 18, 2011
REPORT PREPARED BY:
CHERYL KRUMHOLZ, EXEC. COOR.
NAME, TITLE
REPORT PRESENTER:
REVIEWED BY EXECUTIVE DIRECTOR
ITEM FOR HRA CONSIDERATION:
Consideration of the election of officers for the Housing and Redevelopment Authority (HRA)
for 2011.
I. RECOMMENDED ACTION:
By Motion: Elect officers for the Richfield Housing and
Redevelopment Authority for 2011.
II. BACKGROUND
The bylaws of the Richfield Housing and .Redevelopment provide that the HRA hold
an annual meeting in January. The bylaws further provide that the Chair, Vice Chair
and Secretary of the HRA be elected at this meeting.
Officers for 2010 were:
Sue Sandahl, Chair .
David Gepner, Vice Chair
Joan Helmberger, Secretary
0118officers
STEVEN L. DEVICH, EXECUTIVE DIRECTOR.
III. BASIS OF RECOMMENDATION
A. POLICY
• The bylaws of the Richfield HRA provide that the HRA hold an annual
meeting in January.
• The bylaws further provide that the Chair, Vice Chair and- Secretary of
the HRA be elected at this meeting.
B. CRITICAL ISSUES
• The bylaws of the Richfield HRA require that an election of officers for
the HRA be held at the annual meeting in January.
IV. ALTERNATIVE RECOMMENDATION~S~
• Do not hold the election. However, this would be in contradiction of the HRA
bylaws.
V. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
J
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 20, 2010
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:00 p.m.
ROLL CALL .
HRA Members Sue Sandahl, Chair; Joan Helmberger, Debbie Goettel, Doris Rubenstein
Present: and Steven Quam.
Staff Present: John Stark, Acting Executive Director; Karen Barton, Community
Development Manager and Cheryl Krumholz, Recording Secretary.
Item #1 APPROVAL OF MINUTES OF REGULAR HRA MEETING OF NOVEMBER 15,
2010
M/Quam, S/Goettel to approve the minutes of the November 15, 2010 Regular HRA
Meetin '
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
Chair Sandahl amended the agenda as follows:
• Item #6 moved to Item #2A
• Added Item #2B -Recognition of Best Buy
• Moved Consent Calendar Items #4A, #4B and #4D to the regular agenda for
separate consideration.
• Tabled Item #4C to a future HRA meeting due to programming changes needing
further review of their impacts.
M/Helmberger, S/Goettel to approve the agenda as amended.
Motion carried 5-0.
HRA Meeting -2- December 20, 2010
Item #2A CONSIDERATION OF RESOLUTION ADOPTING 4T" AMENDMENT TO
CONTRACT FOR PRIVATE REDEVELOPMENT WITH BEST BUY CO., INC.
(STAFF REPORT N0.47)
This item was moved from Item #6.
Acting Executive Director Stark presented Staff Report No. 47.
M/Rubenstein, S/Helmberger that the following resolution be adopted and that it be
made part of these minutes:
HRA RESOLUTION NO. 1084
RESOLUTION APPROVING FOURTH AMENDMENT
CONTRACT FOR PRIVATE REDEVELOPMENT
Motion carried 5-0. This resolution appears as HRA Resolution No. 1084.
Item #2B RECOGNITION OF BEST BUY FOR THEIR OUTSTANDING CORPORATE
CITIZENSHIP
Chair Sandahl and Commission Member Goettel presented a plaque to Jason Wood,
Best Buy representative:
Item #3 .PRESENTATION OF CERTIFICATE OF APPRECIATION TO FORMER HRA
COMMISSIONER DAVID GEPNER
Chair Sandahl presented the certificate to Mr. Gepner.
Item #4 CONSENT CALENDAR
A. Moved to regular agenda for separate consideration
B. Moved to regular agenda for separate consideration
C. Tabled to a future HRA meeting due to programming changes needing further
review of their impacts.
D. Moved to regular agenda for separate consideration
Item #4A CONSIDERATION OF APPROVAL OF TRANSFORMATION HOME LOAN
PROGRAM MODIFICATION TO PROVIDE GRANT FUNDS TO LOAN
RECIPIENTS IN RECOGNITION OF 20TH ANNUAL RICHFIELD
REMODELING FAIR S.R. N0.42
Community Development Manager Barton presented Staff Report No. 42.
HRA Meeting -3- December 20, 2010
M/Rubenstein, S/Quam to approve a transformation Home Loan Program modification to
Motion carried 5-0.
Item #4B CONSIDERATION OF APPROVAL OF FUNDING FOR ARCHITECTURAL
HOME CONSULTATION PROGRAM AVAILABLE TO RICHFIELD
HOMEOWNERS S.R. N0.43
Community Development Manager Barton presented Staff Report No. 43.
Commission Member Quam asked about the process for making the architectural list.
Community Development Manager Barton explained the list would be developed through
the AIA residential committee, allowing flexibility in design.
M/Sandahl, S/Helmberger to approve funding for architectural home consultation program
available to Richfield homeowners.
Motion carried 5-0.
.Item #4D CONSIDERATION OF APPROVAL OF RESOLUTION DECERTIFYING
RICHFIELD REDISCOVERED TAX INCREMENT FINANCING DISTRICTS
S.R. N0.45
Acting Executive Director Stark presented Staff Report No. 45.
M/Helmberger, S/Rubenstein that the following resolution be adopted and that it be made
part of these minutes:
HRA RESOLUTION NO. 1085
RESOLUTION APPROVING THE DECERTIFICATION OF THE RICHFIELD
REDISCOVERED A-1, B-1, A-2, B-2, A-3, B-3, A-4, B-4, A-5, B-5 AND
RICHFIELD REDISCOVERED II TAX INCREMENT DISTRICTS OF THE
RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY
Motion carried 5-0.
Item #5 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA
APARTMENT REMODELING PROGRAM LOAN AT 6401 PLEASANT
AVENUE (STAFF REPORT N0.46)
Community Development Manager Barton presented Staff Report No. 46.
Chair Sandahl asked about the fee related to subordination requests.
HRA Meeting -4- December 2Q 2010
Community Development Manager Barton explained the average cost including attorney
and staff time and additional administrative charges is $300-$500.
Acting Executive Director stated currently there is one fee in place.
Jim Youngblood, owner, stated the request is for refinancing to take advantage of lower
rates.
M/Sandahl, S/Goettel to approve the request for subordination of HRA apartment
remodelingprogram loan to encumber both 6401 and 6421 Pleasant Avenue and recover costs
administratively not to exceed $500.
Motion carried 5-0.
The HRA requested staff amend the fees related to subordination requests.
Item #6 CONSIDERATION OF RESOLUTION ADOPTING 4T" AMENDMENT TO
CONTRACT FOR PRIVATE REDEVELOPMENT WITH BEST BUY CO., INC.
(STAFF REPORT N0.47)
This item was moved to Item #2A.
Item #7 HRA DISCUSSION ITEMS
Commission Member Quam requested the Richfield Rediscovered Lot Sale marketing plan
have a shortened timeline.
Commission Member Goettel provided an update on the recent open house to review draft
plans for future revitalization of the 66`h Corridor between Cedar and Portland Avenue.
i
Item #8 EXECUTIVE DIRECTOR REPORT
Acting Executive Director Stark stated the January and February HRA meeting dates will
change due to the third Mondays being holidays.
Item #9 CLAIMS AND PAYROLL
M/Quam, S/Hemberger that the following claims and payrolls be approved:
U.S. Bank 12/20/2010
Section 8 Checks: 119826-119948 $ 156,413.00
HRA Checks: 31063-31095 $ 56,558.88
TOTAL
$ 212,971.88
Motion carried 5-0.
HRA Meeting -5-
ADJOURNMENT
December 20, 2010
The meeting was adjourned by unanimous consent at 7:51 p.m.
Date Approved
Suzanne M. Sandahl
Chair
Cheryl Krumholz
Recording Secretary
John Stark
Acting-Executive Director
AGENDA ITEM#: 6A
REPORT #: 2
~- STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 1 S, 2011
REPORT PREPARED BY:
CHERYL KRUMHOLZ, EXEC. COOR.
NAME, TITLE
REPORT PRESENTER:
REVIEWED BY EXECUTIVE DIRECTOR:
L. DEVICH, EXECUTIVE DIRECTOR
ITEM FOR HRA CONSIDERATION:
Consideration of designating the Community Development Director as the Acting Executive
Director of the Housing and Redevelopment Authority (HRA) for 2011 in the event the
Executive Director is absent from the City.
I. RECOMMENDED ACTION:
By Motion: Designate the Community Development Director as
Acting Executive Director of the HRA in-the event the Executive
Director is absent from the Citv.
II. BACKGROUND
Since the City Manager also serves as the HRA Executive Director, it is
recommended that the Community Development Director be designated by the
HRA as the Acting Executive Director to serve in that capacity during the absence
of the Executive Director.
The Community Development Director was designated Acting Executive Director for
2010.
III. BASIS OF RECOMMENDATION
A. POLICY
0118acting
• Designation of an Acting Executive Director is a normal business
action of the HRA similar to the designation of depositories and the
official. newspaper.
• The Community Development Director has been designated as the
Acting Executive Director in the past.
B. CRITICAL ISSUES
• It is necessary to designate a person to serve as the Acting Executive
Director to ensure continuation of HRA operations during an absence
of the Executive Director.
IV. ALTERNATIVE RECOMMENDATION~S~
• Defer this designation to another HRA meeting.
V. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
AGENDA ITEM#: 6B
REPORT #: 3
J STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 18, 2011
REPORT PREPARED BY:
REVIEWED BY EXECUTIVE
DIRECTOR
NAME,
ITEM FOR HRA CONSIDERATION:
Consideration of resolutions designating official depositories for the Housing and
Redevelopment Authorit for 2011, includin the approval of collateral.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolutions designating official
depositories, with the understanding that the HRA could not invest in
any of the depositories beyond the level of insurance coverage of the
pledged collateral.
II. BACKGROUND
N/A
III. BASIS OF RECOMMENDATION
N/A
A. POLICY
• In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the
HRA of Richfield must designate financial institutions annually. The
institutions must pledge the collateral over and above the amount of
federal insurance, as public depositories.
• U.S. Bank acts as the banking institution in the HRA's banking
arrangement with the 4M Fund. Monies received and checks written by
the HRA flow through U.S. Bank, however, at the end of each business
day, any proceeds remaining in HRA U.S. Bank accounts are swept to
the 4M Fund to be invested. Therefore, at the end of the business day the
HRA accounts are zero, which means the collateral requirements of
Minnesota Statutes Section 118A.03 are not required. Accordingly, U.S.
CHRIS REGIS, FINANCE MANAGER
0118HRADepositories
Bank has met all other statutory requirements and should be considered
as a depository for the HRA's vendor accounts and all savings deposits.
The HRA must also designate annually, certain savings and loan
associations, banks, and credit unions as official depositories for deposit
and investment of certain HRA funds. With approval of these official
depositories, the HRA will be able to invest funds in these institutions, not
exceeding the federal insurance of $250,000.
Finally, a designation must be made for certain financial institutions as
depositories for the investment of HRA funds for 2011. These institutions,
such as investment brokerage firms, offer government securities in the
manner required by law. These financial institutions include U.S. Bank,
RBC Dain Rauscher, Wells Fargo Institutional Brokerage & Sales,
Morgan Keegan, Northland Securities and the 4M Fund.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• N/A
D. LEGAL
• The HRA is required by Minnesota Statute 118A.01 - 118A.06, to
designate as a depository of funds, insured banks or thrift institutions.
Any collateral so deposited is accompanied by an assignment pledged
to the HRA in the amount specified in the attached resolutions.
IV. ALTERNATIVE RECOMMENDATION~S~
• The HRA could solicit other financial institutions for official depositories, but
past relationships with the depositories recommended have proven
satisfactory for the City.
V. ATTACHMENTS
• Resolution designating US Bank a depository of funds of the HRA of Richfield
for the year 2011.
• Resolution designating certain savings and loan associations, banks, and
credit unions as depositories for the investment of HRA funds in 2011.
• Resolution designating certain financial institutions as depositories for the
investment of HRA of Richfield funds in 2011.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
~~-~
HRA RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD
FOR THE YEAR 2011
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
follows:
That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank
be, and hereby is designated a depository of the funds of the Housing and Redevelopment
Authority of Richfield, subject to modification and revocation at any time by said Housing
and Redevelopment Authority, and subject to the following terms and conditions:
The said depository shall not be required to give bonds or other securities for such
deposits provided that the total sum thereof shall not at any time exceed in any depository
the sums for which its deposits are insured under the Acts of Congress of the United
States relating to insurance of bank deposits; but that in case such deposits in any such
depository shall at any time exceed such insured sum, said depository shall immediately
furnish bonds or other security for such excess according to law, approved by the Housing
and Redevelopment Authority of Richfield.
That said depository shall pay on demand all deposits therein; and shall pay all time
deposits, at or after the end of the period for which the same shall be deposited, on
demand.
BE IT FURTHER RESOLVED, that there shall be maintained a general account in
which shall be deposited all monies. The following officers or their facsimile signatures
shall sign checks on this account;
SUZANNE M. SANDAHL, CHAIR
STEVEN L. DEVICH, EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of
each business day will be transferred from U.S. Bank to the 4M Fund where funds
deposited are invested and insured.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this
18th day of January, 2011.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
~~-a
HRA RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS
AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING
AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2011
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield,
Minnesota:
WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 - 118A.06,
municipal funds may be deposited in any Savings and Loan Association, Bank or Credit
Union which has its deposits insured by the Federal Deposit Insurance Corporation
(FDIC), or National Credit Union Administration (NCUA); and
WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA
insurance covering such deposits which insurance amount is presently $250,000; and
WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings
and Loan Associations and Banks would provide greater flexibility in the Housing and
Redevelopment Authority's investment program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
Savings and Loan Association and Banks be designated as additional
depositories for Housing and Redevelopment Authority funds for 2011.
2. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investments of Housing
and Redevelopment Authority funds and that such designation is not exclusive
nor does it preclude the deposit of any Housing and Redevelopment Authority
funds in other officially designated depositories of the Housing and
Redevelopment Authority.
3. The Treasurer and Finance Manager are hereby authorized to deposit Housing
and Redevelopment Authority funds in various depositories up to the amount of
$250,000, or such other amount as may be subsequently permitted by law, such
deposits to be in the form of demand accounts, payable to the Housing and
Redevelopment Authority of Richfield on the signatures of the Housing and
Redevelopment Authority Treasurer or Finance Manager. Such deposits may
be made and withdrawn from time to time by the Treasurer or Finance Manager
as his best judgment and the interests of the Housing and Redevelopment
Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies of the Housing and
Redevelopment Authority regarding the investment of Housing and
Redevelopment Authority funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18t" day
of January, 2011.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
(O 1J ~ ,~
HRA RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2011
WHEREAS, the Housing and Redevelopment Authority of Richfield has money which
is available for investment; and
WHEREAS, different financial institutions offer different rates of return on investments;
and
WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase
U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the
manner required by law from the institution offering the highest rate to the Housing and
Redevelopment Authority of Richfield providing greater flexibility in the investment program
and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections
118A.01 - 118A.06, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority of Richfield funds that
certain financial institutions be designated as additional depositories for Housing
and Redevelopment Authority of Richfield funds for 2011.
2. The following financial institutions designated as depositories for the Housing and
Redevelopment Authority of Richfield funds:
RBC Dain Rauscher, Inc. Morgan Keegan & Company.
Wells Fargo Institutional Brokerage & Sales
4M Fund
Northland Securities, Inc.
3. The Treasurer and Finance Manager are hereby authorized to deposit the
Housing and Redevelopment Authority of Richfield funds in any or all of the
depositories herein designated. Such deposits may be made and withdrawn
from time to time by the Treasurer or Finance Manager's judgment and as the
interest of the Housing and Redevelopment Authority of Richfield dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies regarding the
investment of these funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18th
day of January, 2011.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
AGENDA ITEM#: 6C
REPORT #: 4
~~ STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 18, 2011
REPORT PREPARED BY:
REVIEWED BY EXECUTIVE
DIRECTOR
ITEM FOR HRA CONSIDERATION:
Consideration of resolution designating an official newspaper for 2011.
I. RECOMMENDED ACTION:
By Motion: Approve the resolution designating the Richfield Sun-
Current as the official newspaper for the City of Richfield for 2011.
II. BACKGROUND
The Richfield Sun-Current, published by Minnesota Sun Publications, has been the
City's official newspaper for many years.
Attached is a copy of a letter from Minnesota Sun Publications requesting that they
be designated as the official newspaper for the City of Richfield for 2011. The 2011
advertising rate structure for legal notices is as follows:
Sun Current
1 Golumn width (1.6 inches wide)
$11.44 per inch for first insertion
$ 5.72 per column inch for subsequent insertions
There are 11 lines per inch. The 2011 rate has decreased from the 2010 rate of
$14.30 per inch for first insertion and $7.15 per column inch for subsequent
insertions.
For 2011, the Minneapolis Star Tribune Newspaper could be considered as the
official newspaper. Attached is a letter regarding the 2011 advertising rate structure
for legal notices in the Sunday and weekday, metro and statewide issues. The rate
is $5.40 per line with 11 lines per inch. Their 2011 rate has increased from the 2010
0118newspaper
KATIE PORATH, DEPUTY CITY CLERK
rate of $3.40 per line; however, they have switched from a 10 column format to a
wider 6 column format.
Star Tribune
1 Column width (1.77 inches wide)
$ 5.40 per line
Based on the 2011 rates for 11 lines per inch, the total would be approximately
$59.40 per inch in the Star Tribune compared to $11.44 for the first inch ($5.72 per
subsequent inch) in the Sun-Current.
III. BASIS OF RECOMMENDATION
A. POLICY
• The Charter of the City of Richfield requires in Section 13.01 thereof
that the City Council annually designate an official newspaper for the
City.
• The Sun-Current has expressed an interest in continuing to serve as
the official newspaper of the City.
• The Sun-Current has served well as the official paper for many years.
• The Sun-Current is delivered to nearly all residences in the City.
B. CRITICAL ISSUES
• The designation must be made at the first meeting of the new year.
C. FINANCIAL
• The cost of the official publication is reasonable.
D. LEGAL
• A newspaper must be designated each year by the City for publication
of all official and legal City business.
IV. ALTERNATNE RECOMMENDATION(S~
• Not make a designation and request the City Clerk's office to check into
using another publication.
V. ATTACHMENTS
• Resolution
• Letter from Minnesota Sun Publications
• Letter from Star Tribune
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
~c-I
HRA RESOLUTION NO.
RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2011
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
follows:
WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof
that the City Council annually designate an official newspaper for the City.
NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is
designated the official legal newspaper for the City of Richfield for 2011 for all publications
required to be published therein.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this
18th day of January, 2011.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
__ ~ C -~
~~
December 2010 11e~S1)al~ers
City of Richfield
City Council
E~700 Portlancl .Avenue
Richfield, MN 55423-2599
®ear City Counci! Members::
The Riolifiel~l Sun-Current would like. to be. considered #or designation au the legal newspaper for thta
City of Richfield for the upcoming -year.
All published legal notices are posted on our website (www.minnlocal.com) at°no additional charge.
This is an enhancement to the loca9 news coverage already available on the,lnternet and will
broaden the readership of your legal notices.
One of the main benefits of publishing your {egaf notices with the Sun••Current is our home defivery.•
Sun Newspapers has become the primary source of community news in the suburbs. Your notices in
our paper have the best chance of being seen and read.
~Ne would like #ci contini.~e working ~ivith you, therefore, we will not.be making a rate change for-the
coming year.
The rate structure for legals effective tl'ie first of the year will be:
1 column width: $11.44 per inch for first insertion
$5.72 per column inch for subsequent insertions
There are 11 fines per inch
Twa notarizQd affidavits on each of your publicat±iorts wlll l?e ~provlded with. no additional charge.
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AGENDA ITEM#: 6D
REPORT #: 5
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 18, 2011
REPORT PREPARED BY:
MICHELLE LEWIS/JULIE URBAN, HOUSING
SPECIALISTS
NAME, TITLE
REPORT PRESENTER:
KAREN BARYON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
nlnnec- Trri r.
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTO]
ITEM FOR HRA CONSIDERATION:
Consideration of annual Consultant Services Agreement with the Greater Metropolitan
Housing Corporation for 2011.
I. RECOMMENDED ACTION:
By Motion: Authorize the attached Consultant Services Agreement
with the Greater Metropolitan Housing Corporation for 2011.
II. BACKGROUND
The Greater Metropolitan Housing Corporation (GMHC) specializes in a variety of
housing programs, services and financing options for homeowners. The
partnership with the Richfield Housing and Redevelopment Authority (HRA) began
in 2004 and provides GMHC's services to residents at no cost.
Through November 2010, GMHC provided 121 services to 97 Richfield residents
through its Southside HousingResource Center (HRC) (see attachment). In
addition, three Minnesota Housing Finance Agency loans were closed at the HRC.
Services offered include, but are not limited to:
• Home buyer information, loan services (including Minnesota Housing
Finance Agency loans), construction consultations, energy assistance,
011811 2011 GMHC Services Contract.doc
mortgage foreclosure prevention, home improvement information, and
assistance with rental and emergency housing issues.
The HRA has successfully partnered with GMHC for the construction of affordable
houses built under the New Home Program as well as the purchase and
rehabilitation of properties through the Neighborhood Stabilization Program.
On December 22, 2010 HRA staff were informed that GMHC is consolidating the
three HRC offices in Minneapolis into one office due to budgetary constraints.
Additionally, the St. Paul HRC will be consolidated with the North Metro HRC to
form the North and East HRC. GMHC is confident that the office consolidation will
not adversely affect their services or loan originations to Richfield residents.
The highest volume of HRC services to Richfield residents are Home Improvement
Information (63 in 2010) and Construction Consultations (44 in 2010), which most
often occur at the homeowner's residence or by telephone. HRC staff will continue
to meet residents where the residents are most comfortable. GMHC began
advertising the consolidation at the beginning of 2011.
III. BASIS OF RECOMMENDATION
A. POLICY
A partnership between the HRA and GMHC ensures the availability of
comprehensive rehabilitation resources and financing resources to Richfield
residents. It also serves to accomplish the two housing goals and several housing
policies identified in the 2008 Comprehensive Plan.
Goal: Maintain and enhance Richfield's image as a community with strong,
desirable and livable neighborhoods.
• Support the rehabilitation and upgrading of the existing housing stock.
• Encourage the creation of "move-up" housing through new construction
and home remodeling.
• Support ongoing maintenance and upkeep of residential properties.
Goal: Ensure sufficient diversity in the housing stock to provide for a range of
household sizes, income levels and needs.
• Encourage improvements to the housing stock to better serve families
with children and seniors.
• Promote the development, management, and maintenance of affordable
housing in the City through assistance programs; alternative funding
sources; and the creation of partnerships whose mission is to promote
low to moderate income housing.
B. CRITICAL ISSUES
• GMHC offers Richfield homeowners comprehensive home improvement
support and a variety of programs in acost-effective manner.
• GMHC offers their packages of programs and services in 16 metro area
communities. By partnering with GMHC for these services, Richfield will
remain competitive in the metro area.
C. FINANCIAL
• The cost of services for 2010 is $7,000; unchanged since 2009.
• Funds are allocated for these services in the 2011 HRA budget.
D. LEGAL
The Agreement has been reviewed by legal counsel.
IV. ALTERNATIVE RECOMMENDATION(S~
• The HRA can choose to direct staff to modify the scope of services or modify the
amount with GMHC.
• The HRA can choose to not approve the Agreement.
V. ATTACHMENTS
Southside HousingResource Center Status Report (2010)
Copy of the Consultant Services Agreement
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
N/A
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CONSULTANT SERVICES AGREEMENT
THIS IS AN AGREEMENT entered into the day of , 20_, by and
between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD, a Minnesota public body corporate and politic ("HRA"), and
GREATER METROPOLITAN HOUSING CORPORATION, a Minnesota non-profit
corporation ("Consultant").
RF.fTTAT.C
A. The Consultant has a division called The Housing Resource Center ("HRC").
GMHC has agreed to provide certain Services through HRC (as defined below) in connection
with the HRA's housing program.
B. The HRA desires to hire the Consultant to render this technical, professional, and
marketing assistance in connection with housing programs in the HRA for the term as set forth in
this Agreement.
C. The Consultant is willing to provide such services on the terms and conditions set
forth herein.
In consideration of the foregoing recitals and following terms, conditions and mutual
promises contained herein, the parties agree as follows:
1. Scope of Services. The Consultant shall provide services as follows (the
"Services"):
a. Administer the following home improvement programs for residents and property
owners in the City of Richfield ("City"): Minnesota Housing Finance Agency's
Fix Up Fund, Community Fix Up Fund and Minnesota Housing Finance
Agency's Rental Rehab Program (collectively "MHFA programs") by:
1. Providing information about the MHFA programs, upon request;
2. Assisting the HRA in marketing the MHFA programs;
3. Receiving applications for the MHFA programs;
4. Processing applications for the MHFA programs;
5. Closing loans to qualified applicants in accordance with the applicable
requirements of the MHFA programs;
6. Overseeing the draw process for the funds for the MHFA programs,
including, as necessary, reviewing draws, reviewing the progress of the
work and collecting lien waivers and certificates of occupancy. The
Consultant may, for this purpose, rely on third-party representations and
certifications.
7. Providing monthly reports about the number of loans closed and the
balance in each of the MHFA programs.
fb.us.3166730.04 1
379104v2 RC125-1
Coo-3
b. Assist City residents and property owners considering rehabilitation, including
property visits, meet with homeowners and potential contractors, suggest
alternatives for rehabilitation to homeowners, educate homeowners on the
construction bid process, and assist homeowners to evaluate bids and work
completed and construction progress.
c. Provide HRC housing information to City residents and property owners,
including information on emergency assistance, housing rehabilitation, first time
homebuyers and limited rental information;
d. Assist the HRA in developing programs to purchase and rehabilitate homes;
e. Coordinate these services out of the Consultant's Minneapolis office; and
f. Have the Consultant's staff visit residences as determined necessary by the
Consultant and when requested by the HRA.
2. Term. This Agreement shall be in full force and effect from January 1, 2011 and
shall continue through December 31, 2011, unless otherwise terminated as set forth below.
3. Compensation. For the services described in paragraphs lb through if of this
Agreement, the HRA shall pay to the Consultant Seven Thousand Dollars ($7,000.00) within
thirty (30) days after execution of this Agreement. For the services described in paragraph la of
this Agreement, the Consultant shall receive compensation for administering the MHFA
programs directly from the Minnesota Housing Finance Agency and not from the HRA.
4. Termination. Notwithstanding any other provision hereof to the contrary, this
Agreement may be terminated as follows:
a. The parties, by mutual written agreement, may terminate this Agreement at any
time in which case the parties shall agree to (as applicable) the amount of
compensation payable to the Consultant or the amount of compensation to be
returned to-the HRA.
b. The HRA may terminate this Agreement upon the breach by the Consultant of
any of its material covenants contained herein, where such breach shall have
continued for a period of thirty (30) days following the receipt by the Consultant
of a written notice from the HRA, specifying the alleged breach; provided,
however, if the nature of anon-monetary breach is such that the Consultant
cannot reasonably cure same in the thirty (30) day period, the Consultant shall not
be deemed to be in breach if it commences to cure within the thirty (30) day
period, and diligently pursues same to completion within ninety (90) days
following receipt by the Consultant of such written notice. In the event of
termination by the HRA hereunder, the Consultant shall return a prorated portion
of its compensation to the HRA.
fb.us.3166730.04 2
379104v2 RC125-1
~o-y
c. The Consultant may terminate this Agreement upon the breach by the HRA of
any of its material covenants contained herein, where such breach shall have
continued for a period of thirty (30) days following the receipt by the HRA of a
written notice from the Consultant, specifying the alleged breach; provided,
however, if the nature of anon-monetary breach is such that the HRA cannot
reasonably cure same in the thirty (30) day period, the HRA shall not be deemed
to be in breach if it commences to cure within the thirty (30) day period, and
diligently pursues same to completion within ninety (90) days following receipt
by the HRA of such written notice. In the event of termination by the Consultant
hereunder, the Consultant shall be entitled to retain the entire compensation fee
under this Agreement.
d. If the Consultant or the HRA (as applicable) (i) files a voluntary petition in
bankruptcy (ii) files a voluntary petition for reorganization under any bankruptcy
law, statute or regulation or other similar statute or regulation, (iii) is adjudicated
a bankrupt, (iv) makes an assignment for the benefit of creditors or applies for or
consents to the appointment of a receiver or trustee as part of or in conjunction
with a "creditor plan" with respect to any substantial part of its assets, or (v) a
receiver or trustee is appointed, or an attachment or execution levied with respect
to any substantial part of its assets, and said appointment is not vacated, or the
attachment or execution not released, within sixty (60) days, then this Agreement
shall, effective as of such date, without notice or further action by either party,
immediately terminate.
5. Insurance.
a. During the term of this Agreement, the Consultant shall obtain and maintain
workers compensation, comprehensive general liability, and automobile liability
insurance. Comprehensive general liability insurance shall have an aggregate
limit of Two Million Dollars ($2,000,000.00) naming the HRA as an additional
insured.
b. Upon request by the HRA, the Consultant shall provide a certificate or certificates
of insurance relating to the insurance required. Such insurance secured by the
Consultant shall be issued by insurance companies licensed in Minnesota. The
insurance specified may be in a policy or policies of insurance, primary or excess.
c. Such insurance shall be in force on the date of execution of this Agreement and
shall remain continuously in force for the duration of this Agreement.
6. Indemnification.
a. Notwithstanding anything to the contrary in this Agreement, the HRA, its officers,
agents, and employees shall not be liable or responsible in any manner to the
Consultant, the Consultant's successors or assigns, the Consultant's subcontractors,
1b.us.3166730.04 3
379104v2 RC 125-1
~0-5
or to any other person or persons for any third party claim, demand, damage, or
cause of action of any kind, nature, or character, including intentional acts, arising
out of or by reason of the performance of this Agreement by the Consultant. The
Consultant, and the Consultant's successors or assigns, agree to protect, defend and
save the HRA, and its officers, agents, and employees, harmless from all third party
claims, demands, damages, and causes of action, to the extent caused by the
negligence or wrongful acts of the Consultant, and the costs, disbursements, and
expenses of defending the same, including but not limited to, attorneys fees,
consulting services, and other technical, administrative or professional assistance.
b. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or
limitation of any immunity or limitation on liability to which the HRA is entitled
under Minnesota Statutes, Chapter 466, or otherwise.
7. Assignment. This Agreement shall -not be assigned, sublet, or transferred, in
whole or in part without the prior written approval of the HRA.
8. Conflict of Interest. The Consultant shall use best efforts to meet all
professional obligations to avoid conflicts of interest and appearances of impropriety in its work
for the HRA pursuant to this Agreement. In the event of a conflict, the Consultant, with the prior
written consent of the HRA, shall arrange for suitable alternative services.
9. Compliance with Laws. The Consultant shall comply with all applicable
Federal, State, and local laws, rules, ordinances, and regulations at all times and in the
performance of the services pursuant to this Agreement.
10. Notices. Any notices permitted or required by this Agreement shall be deemed
given when personally delivered or upon deposit in the United States mail, postage fully prepaid,
certified, return receipt requested, addressed to:
Consultant: Greater Metropolitan Housing Corporation
15 South 5th Street, Suite 710
Minneapolis, MN 55402
ATTN: Suzanne Snyder
HRA: Richfield Housing and Redevelopment Authority
6700 Portland Avenue
Richfield, MN 55423
ATTN: Michelle Lewis/Julie Urban
Or such other address as either party may provide to the other by notice given in accordance with
this provision.
11. Entire Agreement. This Agreement, any attached exhibits and any addenda or
amendments signed by the parties shall constitute the entire agreement between the HRA and the
Consultant, and supersedes any other written or oral agreements between the HRA and the
1b.us.3166730.04 4
379104v2 RC125-1
~~~t0
Consultant. This Agreement can only be modified in writing signed by the HRA and the
Consultant.
12. Third Party Rights. The parties to this Agreement do not intend to confer on
any third party any rights under this Agreement.
13. Counterparts. This Agreement may be signed in one or more counterparts but
all of which taken together shall constitute one instrument.
14. Choice of Law and Venue. This Agreement shall be governed by and construed
in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims
arising out of this Agreement shall be heard in the .state or federal courts of Minnesota, and all
parties to this Agreement waive any objection to the jurisdiction of these courts, whether based
on convenience or otherwise.
15. Agreement Not Exclusive. The HRA retains the right to hire other housing
program consultants, in the HRA's sole discretion.
16. Data Practices Act Compliance. Data provided to the Consultant or created by
the Consultant under this Agreement shall be administered in accordance with the Minnesota
Government Data Practices Act, Minnesota Statutes, Chapter 13, as amended.
[Signatu>^e Page Follows)
tb.us.3166730.04 5
3791042 RC125-1
~~-~
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by
their duly authorized officials, this Agreement on the respective dates indicated below.
HRA:
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By:
Its: Chairperson
Date: , 20
By:
Its: Executive Director
Date: , 20
CONSULTANT:
GREATER METROPOLITAN HOUSING CORPORATION
By:
Its: President
Date: , 20
1b.us.3166730.04 6
379104v2 RC125-1
AGENDA ITEM#: 7
REPORT #: 6
~~ STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 18, 2011
REPORT PREPARED BY:
KAREN BARYON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME, T/TLE
REPORT PRESENTER:
DEPARTMENT DIRECTOR R
REVIEWED BY EXECUTIVE
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing fees for appeals of Housing and Redevelopment
Authority loan subordination requests.
L RECOMMENDED ACTION:
By Motion: Approval of the attached resolution establishing a fee for
appeals of Richfield Housing and Redevelopment Authority loan
subordination requests.
II. BACKGROUND
The Richfield Housing and Redevelopment Authority (HRA) operates a number of
deferred-.loan programs designed to encourage and promote home ownership,
home improvements, affordable and move-up housing, and neighborhood stability.
When a resident applies for and receives a loan through the HRA, a mortgage is
placed against the title of the property. This mortgage is typically in second
position, behind the primary mortgage for the property.
Periodically, homeowners may seek to refinance their primary mortgage and in so
doing, will request the HRA to subordinate its mortgage to the refinanced primary
mortgage. The HRA has a Subordination Policy (Policy) that specifies under which
conditions it will subordinate its mortgage.
01182011 Subordination Appeal Fee
KAREN BARYON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
If the subordination request meets the guidelines of the HRA's Subordination Policy,
the subordination is approved on an administrative/staff level. Staff may also
administratively approve certain subordination requests that fall outside of the
Policy, on a limited basis.
In cases where the subordination request does not meet the Policy guidelines and
the request is denied administratively, the homeowner may appeal the denial to the
HRA.
The HRA currently charges an administrative fee of $125 to process subordination
requests. This fee typically covers the costs associated with processing
subordination requests at a staff level. However, when requests are appealed, the
HRA incurs additional costs that are above and beyond the $125 fee currently
charged. In an effort to recoup the added expenses associated with subordination
request appeals, staff is recommending the HRA establish a fee structure, in
addition to the current $125 application fee, as follows:
• $125 processing fee, plus attorney's fees and actual filing fees, as
applicable.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is fiscally responsible to recover administrative costs as appropriate.
B. CRITICAL TIMING ISSUES
• N/A
C. FINANCIAL
• The HRA is currently absorbing the costs associated with appeals of
HRA loan program subordination requests.
D. LEGAL
• A Resolution is required to establish fees.
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not approve Resolution.
• Approve Resolution with changes.
V. ATTACHMENTS
• Resolution
Subordination Policy
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
7-1
HRA RESOLUTION NO.
RESOLUTION ESTABLISHING PROCESSING FEES FOR APPEALS OF THE
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY LOAN PROGRAM
SUBORDINATION REQUESTS
WHEREAS, the- City of Richfield Housing and Redevelopment Authority ("HRA"),
Richfield, Minnesota, administers various grant and loan programs designed to improve
the City's housing stock and provide a range of housing opportunities; and
WHEREAS, the HRA incurs costs directly related to the administration of these
programs; and
WHEREAS, in an effort to ensure continued operation of these programs, the HRA
desires to recoup a portion of the administrative costs;
NOW, THEREFORE BE IT RESOLVED that the HRA shall establish a fee for
appeals of loan program subordination requests as follows:
• $125 processing fee, plus attorney fees and actual filing fees, as applicable.
Adopted by the Richfield Housing and Redevelopment Authority of the City of
Richfield, Minnesota this 18th day of January, 2011.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
~ - a.
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
SUBORDINATION 8~ SATISFACTION POLICY
EFFECTIVE OCTOBER 2008
Subordinations
Richfield Housing and Redevelopment Authority (HRA) loan recipients requesting subordination
of the interest of the HRA in real property must submit a Subordination Request Form, the
required supporting documentation, and a processing fee. Forms are available on the City of
Richfield website (http://www.ci.richfield.mn.usn or by calling the Community Development
Department at 612-861-9760. Requests will not be considered until all documents and the
processing fee have been received.
Required Documents
The following information must be submitted with the Subordination Request Form:
1. A typed letter dated and signed by the mortgagor, stating the reason for
the requested subordination and the use of any equity being removed as
part of the loan transaction.
2. A copy of the current appraisal (dated within six months of application) or
other evidence of market value of the property that is acceptable to the
HRA.
3. A copy of current title work (must indicate all debt against the property).
4. Explanation of remaining debts or liens with supporting documentation
(i.e. most recent mortgage bill).
5. Estimated closing costs/settlement statement, where applicable.
6. Additional documentation may be required.
Evaluation Criteria
The Richfield HRA will subordinate its mortgage interest if all of the following conditions are met,
to the extent that they are applicable:
1. Closing costs are reasonable. Generally this shall mean that the sum of
all discount points, origination fees, and lender ancillary fees generally
shall not exceed 3% of the new first mortgage amount.
2. If the HRA believes that the payment terms of the refinance are within
the financial means of the borrower.
3. The total debt secured by the property, including the HRA lien and all
superior mortgages, does not exceed 80% of the documented market
value of the property.
4. Any equity being removed beyond the cost of the loan transaction will be
used to improve the property. A typed letter, dated and signed by the
applicant, must be submitted stating the use of any equity being
removed.
7 -3
5. The overall value of superior debt must not be increased by more than
50%. Exceptions may be granted by the HRA in cases where superior
debts are found to be unusually low with sufficient equity protection.
6. If no more than one subordination request has been approved by the
HRA in the past five years.
7. Property taxes, if not escrowed by the superior mortgage holder, must be
current.
The HRA will not subordinate to reverse mortgages. In most cases, interest-only loans or loans
with interest-only options, revolving lines of credits or debt consolidation will not be allowed
unless the HRA determines that an acceptable reason warrants this type of loan.
The HRA may approve other subordination requests not meeting the conditions above on a case-
by-case basis that are clearly in the best interests of the .HRA, where the security of the HRA loan
remains acceptable, and denial of the request will cause or contribute to a documented hardship
on the part of the borrower.
As a condition of approval, the HRA may require the Borrower to receive financial counseling.
While many courses are available at no charge, the Borrower is responsible for any costs
associated with the counseling. The course must be approved by the HRA.
Fees
The non-refundable fee for a subordination request is established by the HRA. If the
subordination request is denied, the fee will be returned with the letter explaining the reason(s) for
denial. If an appeal is subsequently requested, the fee be retained and is non-refundable.
Processing
Subordination requests will be processed by HRA staff, who will submit the request with a
recommendation for action, to the Housing & Redevelopment Manager. The Manager may
request review and final decision by the HRA. Requests for subordination should be submitted
30 days prior to the date the agreement to subordinate is needed. Exceptions may be made on a
case-by-case basis.
Appeal Process
In cases where a subordination request does not meet the Policy, staff may grant an
administrative appeal under the following circumstances:
• Loan-to-value (LTV) ratio is greater than 80%, but no greater than 85%, and all other
HRA policies are met;
• Equity being removed for anything other than property improvements does not exceed
$5000;
• The amount of financing ahead of the HRA lien does not increase; or
• Only one subordination agreement has been granted within the past five years.
If an application is denied, the applicant may request an appeal in writing. Appeals will be
submitted by staff to the HRA at the next regularly scheduled meeting, provided the request is
made at least 10 days prior to that meeting. The HRA meets on the third Monday of each month.
I " `-1
If the HRA grants an appeal outside the policy guidelines, the homeowners will be required to
attend a financial counseling course. The course must be approved by the HRA and any costs
associated with the counseling are the responsibility of the homeowners. The homeowners must
provide proof of enrollment in an approved course or counseling before a Subordination
Agreement is executed.
Satisfactions
When a loan made by the HRA is paid in full, a document satisfying the lien will be prepared by
the HRA and delivered to the borrower for recording. The borrower is responsible for the cost of
recording the satisfaction.
AGENDA ITEM#: 8
REPORT #: 7
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 18, 2011
REPORT PREPARED BY:
KAREN BARYON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME, TITLE
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTC
ITEM FOR HRA CONSIDERATION:
Consideration of a contract with Arteka Companies, LLC for streetscape improvements at
6401 and 6444 Penn Avenue.
I. RECOMMENDED ACTION:
By Motion: Approval of contract with Arteka Companies, LLC for
streetscape improvements at 6401 and 6444 Penn Avenue.
II. BACKGROUND
In 2009 the Penn Avenue Revitalization Plan and Design Guidelines were
completed for the Penn Avenue Corridor (Corridor) between Highway 62 and 68th
Street. The purpose of the plan and guidelines is to guide the revitalization and
redevelopment of the Corridor over time. An important component of the plan is to
create a more inviting and pedestrian-friendly streetscape along the Corridor.
In an effort to facilitate streetscape improvements and spur economic vitality along
the Corridor, the Richfield Housing and Redevelopment Authority (HRA) budgeted
funds for fiscal year 2010 for streetscape improvements at 6401 and 6444 Penn
Avenue.
Staff contracted with Hoisington Koegler Group, Inc. (HKGi), the firm that created
the Revitalization Plan and Guidelines for the Corridor, to design the streetscape
01182011 Penn Ave streetscape Improvements Contract
KAREN BARYON, COMMUNITY
improvements for the two properties. The streetscape improvements consist of new
sidewalks, low-maintenance .plants, and bollards to provide a visual separation
between the sidewalk and Penn Avenue. The streetscape plans were reviewed and
approved by both the Fire Chief and the Liquor Store Director.
A Request For Proposals (RFP) was distributed to landscape firms in the metro
area. Staff received three complete proposals from Arteka, Kerker, and Edelweiss
Design. Arteka was low-bid at $45,939.94. Edelweiss was $64,865.56, and Kerker
was $84,947.00. Additionally, the City has had success working with Arteka on
previous projects.
Staff is recommending the HRA approve the contract with Arteka for streetscape
improvements at 6401 and 6444 Penn Avenue. Work would begin on the project in
the spring, with completion this summer 2011.
III. BASIS OF RECOMMENDATION
A. POLICY
From the 2008 Richfield Comprehensive Plan:
o Establish a land use pattern and supporting
infrastructure that creates a "walkable" environment.
o Encourage the development of viable and responsive
neighborhood commercial services.
o Create commercial districts that sustain specific types of
development and stabilize the economic base.
B. CRITICAL TIMING ISSUES
• Project will begin in the spring of 2011 as weather permits.
C. FINANCIAL
• Funding for the program has been budgeted for fiscal year 2010.
• Up to $50,000 of the budgeted funding would be utilized for this
program.
D. LEGAL
The HRA attorney has reviewed the contract
IV. ALTERNATIVE RECOMMENDATION(S~
Do not approve the contract with Arteka
V. ATTACHMENTS ~
Draft contract
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
N/A
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FORM OF AGREEMENT
BETWEEN OWNER AND CONTRACTOR
THIS AGREEMENT made and entered into as of the 27t" day of December, 2010 by and
between the Housing and Redevelopment Authority in and for the City of Richfield (HRA),
6700 Portland Ave., Richfield, MN 55423, hereinafter called the "OWNER," and Arteka
Companies, L.L.C., 8810 13th Ave., Shakopee, MN 55379, hereinafter called the
"CONTRACTOR."
WITNESSETH, that the OWNER and the CONTRACTOR for the mutual covenants stated
hereinafter, agree as follows:
ARTICLE I -WORK
The Contractor shall perform the work as described and shown in the Contract Documents for
the completion of the project generally described as follows: Penn Avenue Streetscape
Improvements.
ARTICLE II -COMMENCEMENT AND COMPLETION OF WORK
The Contractor shall commence work as spring weather conditions allow and shall fully
complete all work hereunder as stated in the Information for Bidders.
ARTICLE III -THE CONTRACT SUM
The Owner will pay the C u ntractor for the performance of the work and completion of the
project subject to additions and deductions as provided herein, in current funds. The Contract
sum=is reflective of the Base Bid as identified in the Bid Proposal.
The Contract sum is $45,939.94 payable upon completion and acceptance of the project by the
Owner.
ARTICLE IV -CONTRACT DOCUMENTS
The Contract Documents consist of the following component parts:
1. This Agreement
2. The Accepted Bid Proposal
3. Information for Bidders
4. Plans and Specifications dated December 10, 2010
and are fully a part of the Contract Documents as if hereto attached or herein repeated. In the
event that any provision in any of the component parts of the Agreement conflicts with any
page 1 of 3
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provision or any other component part, the provision in the component part first enumerated
herein shall govern, except as otherwise specifically stated.
ARTICLE V -INSURANCE
The Contractor shall provide insurance coverage as follows:
- Comprehensive Public Liability - $1,000,000 combined-single limit;
- Comprehensive Bodily injury - $1,000,000 combined-single limit;
- Property Damage - $1,000,000 combined-single limit;
- Automobile Insurance- - $1,000,000 minimum coverage` for Property Liability
and Property Damage for commercial operators; and
- Workers Compensation Insurance - as required by State of-Minnesota statutes.
The insurance company or companies providing such coverage must be licensed to conduct
business in the State of Minnesota.
ARTICLE VI -PERMITS AND APFROYALS
The Contractor shall obtain all necessary permits and approvals from all governing jurisdictions
as required, prior to commencement of work.
ARTICLE VII -SUBCONTRACTORS
The Contractor agrees to bind every subcontractor by the terms, conditions, and provisions set forth
in the Contract that are applicable to the subcontr~.ctor s work, unless otherwise specifically agreed
otherwise in writing by the HRA. "1~e Contractor agrees to pay every subcontractor within 10 days
of receipt of payment from the HRA pw-suant to Minn. Stat. ~ 471.425.
ARTICLE VIII - PAYMENTAND PERFORMANCE BOND
No payment or performance bonds for the Work shall be required pursuant to Minn. Stat. ~ 574.26.
ARTICLE IX -HOLD HARMLESS
The Buyer shall be responsible to the Authority for the acts and omissions of Buyer, the Buyer's
building mover and any other person or organization performing any of the work under a contract
with or at the direction of the Buyer. The Buyer agrees to indemnify and hold harmless the
Authority, its officers and- employees and the City of Richfield, its officers and employees from all
suits, actions, and claims of any character brought because of injuries received or damages
sustained by any person, persons, or property arising out of the removal of the Garage or the
performance or non-performance of Buyers obligations under this Contract; or in consequence of
any neglect in safeguarding the Garage or Site; or because of any other act or omission, neglect, or
misconduct of the Buyer, or by any person or organization employed directly or indirectly by the
Buyer. In addition, Buyer shall indemnify and defend the Authority and the City from and
page 2 of 3
$-3
against any mechanics' liens or other claims asserted by any party who claims to have performed
work or provided materials in connection with the removal of the Garage or restoration of the Site.
ARTICLE X -MISCELLANEOUS
Neither the Owner nor the Contractor shall, without the prior written consent of the other, assign
or sublet in whole or in part his interest under any of the Contract Documents and, specifically,
the Contractor shall not assign any moneys due or to become due without prior written consent
of the Owner. The Owner and the Contractor each binds himself, his partners, successors,
assigns and legal representatives to the other party hereto in respect of all covenants, agreements
and obligations contained in the Contract Documents. The Contract Documents constitute the
entire Agreement between the Owner and the Contractor and may only be altered, amended or
repealed by aduly-executed written instrument.
ARTICLE XI -OTHER PROVISIONS
IN WITNESS WHEREOF, they have hereunto set their hands and seals the day and year first
above written:
CONTRACTING COMPANY: Arteka Companies L L C.
BY:
TITLE:
WITNESSED:
OWNER: Cit of Richfield
BY:
TITLE:
WITNESSED:
page 3 of 3
AGENDA ITEM#:
REPORT #:
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 1S, 2011
REPORT PREPARED BY:
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
JULIE URBAN, HOUSING SPECIALIST
NAME, TITLE
JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the Executive Director and Housing and
Redevelopment Authority Chair to execute instruments to purchase vacant and foreclosed
nronerties using the Housing and Redevelopment Fund.
RECOMMENDED ACTION:
By Motion: Approve a resolution authorizing the Executive Director
and Housing and Redevelopment Authority Chair to execute
instruments necessary to purchase three to four vacant and
foreclosed houses using up to $450,000 from the Housing and
Redevelopment Fund through December 31, 2011.
II. BACKGROUND ~
Annually, the Housing and Redevelopment Authority (HRA) budgets funds to
purchase properties to further the Richfield Rediscovered and New Home Programs
by removing small, substandard, obsolete, or dilapidated homes and then replacing
them with new homes. The current housing market offers opportunities for the HRA
to further these programs, to help stabilize neighborhoods, and to purchase
substandard, vacant and foreclosed properties at reasonable prices.
011811 Foreclosure Purchase Authority Hsg Trust
In 2010 the HRA authorized the Executive Director and HRA Chair to execute
instruments necessary to purchase up to nine vacant and foreclosed houses using
up to $1,060,000 from the Housing and Redevelopment Fund. Under that
authorization, the HRA purchased seven foreclosed and vacant properties using
$762,350.
Staff is proposing to extend the authorization to allow the Executive Director and
HRA Chair the authority to acquire foreclosed properties meeting the following
parameters, without obtaining HRA approval for each property:
• The property is foreclosed;
• The property is vacant;
• The property is blighted (as defined and required by the regulations
governing the Housing and Redevelopment Fund);
• Prior to acquisition, staff establish an appropriate sale price based on recent
sales activity and/or assessed value and housing condition; and
• Expenditures for all properties do not exceed a total of $450,000.
Staff will continue to report back to the HRA each month with a status report of
acquisition activity.
III. BASIS OF RECOMMENDATION
A. POLICY
It is in the best interest of the City to ensure neighborhood stability and
reduce blight.
Through the City's Richfield Rediscovered program, the HRA
purchases and removes substandard and functionally obsolete
housing and replaces it with newer, higher valued homes.
Through the City's New Home program, the HRA purchases and
removes substandard and functionally obsolete housing and replaces
it with new, affordable homes.
The 2008-2018 Richfield Comprehensive Plan states as policy:
o Encourage the creation of "move-up" housing through
new construction and home remodeling.
o Promote the development of a balanced housing stock
that is available to a range of income levels.
B. CRITICAL ISSUES
Richfield has suffered a high number of foreclosures since 2008 and is
expected to have more over the next several years.
Neighborhoods in which there are one or more foreclosed and vacant
homes have detrimental impacts on the surrounding property values.
The market of vacant and foreclosed properties is expanding and
flexibility to respond quickly to opportunities to purchase vacant and
foreclosed properties is important.
Staff uses two "first look" programs that offer cities and non-profits the
chance to purchase properties before they are available on the open
market; however, they both require a response to purchase within
days.
In addition to being in poor condition, some foreclosed properties have
function, layout, size and other issues that make them candidates for
the Richfield Rediscovered and New Home programs.
The Richfield Rediscovered and New Home program funds can be
used to purchase vacant and foreclosed properties to accomplish
HRA goals throughout the City of Richfield.
Authorization to utilize these two HRA programs would be limited to
purchasing vacant and foreclosed properties only. If other purchasing
opportunities arise, staff would seek an approved Purchase
Agreement by the HRA before moving forward with purchasing
activities.
C. FINANCIAL
• The 2011 budget designates $300,000 for the Richfield Rediscovered
program and $166,000 for the New Home program for a total of
$450,000 for property acquisition.
• Funding for these programs is allocated through the HRA Housing and
Redevelopment Fund.
• Total acquisition expenditures will not exceed the budgeted amount of
$450, 000.
D. LEGAL
• Legal counsel reviewed the resolution.
IV. ALTERNATIVE RECOMMENDATION(S~
Do not extend the authorization for the Executive Director and HRA Chair to
execute agreements to purchase foreclosed homes.
V. ATTACHMENTS
Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
N/A
q-i
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY
STAFF TO ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO
EXECUTE ALL INSTRUMENTS AND CONTRACTS RELATED THERETO
WHEREAS, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the
"HRA Act") the City Council of the City of Richfield, Minnesota (the "City") has created the
City of Richfield Housing and Redevelopment Authority (the "HRA") and provided it with
the powers and duties of the HRA Act; and
WHEREAS, the HRA Act authorizes the HRA to acquire, improve, own, hold, sell,
lease, exchange, transfer, assign, pledge or dispose of any real or personal property; and
WHEREAS, the HRA has undertaken amulti-faceted response to the impact of the
foreclosure crisis on the community involving the use of the Housing and Redevelopment
Fund to acquire and demolish substandard, vacant, foreclosed single family homes; and
WHEREAS, in order to expand the effectiveness of the Program the HRA wishes
to directly purchase certain foreclosed properties to demolish and hold the lots for future
development; and.
WHEREAS, it is the desire of the HRA Board of Commissioners to establish
certain parameters for such acquisitions and to authorize its Executive Director and HRA
Chair to proceed therewith without specific Board approval of each transaction.
NOW, THEREFORE, BE IT RESOLVED by the City of Richfield Housing and
Redevelopment Authority:
1. That the Executive Director and HRA Chair, with the assistance of HRA legal
counsel, is hereby authorized to enter into purchase agreements and acquire in the
name of the Authority up to four (4) single family, vacant, foreclosed homes (the
"Properties") on the conditions that:
(a) The Properties are each acquired with the Housing and Redevelopment
Fund;
(c) Each Property is a foreclosed property acquired from a lender or a lender's
designee;
(d) The Properties have been vacant for at least 90 days prior to entering into a
Purchase Agreement;
(e) The Property is determined to be blighted as required by Housing and
Redevelopment Fund regulations;
(f) Prior to each acquisition staff establish an appropriate sale price based on
reasonable conditions;
(g) The total expenditures on all properties does not exceed $450,000; and
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(h) Prior to the acquisition of each property staff conducts appropriate due
diligence to protect the HRA's interest.
2. That the Executive Director and HRA Chair are authorized to execute such
documents as shall be required in order to carry out the delegation provided in
paragraph 1 hereof.
3. That the Executive Director shall report the acquisition of any Property pursuant to
this Resolution at the next regular HRA meeting.
4. That disposition of acquired Properties shall be only by action of this Board.
5. That the authority granted hereby shall expire on December 31, 2011.
Adopted by the Richfield Housing and Redevelopment Authority of the City of
Richfield, Minnesota this 18th day of January, 2011.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary