021825 EDA AgendaECONOMIC DEVELOPMENT AUTHORITY MEETING
RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
FEBRUARY 18, 2025
7:15 PM (IMMEDIATELY FOLLOWING THE HRA MEETING)
Call to Order
Open Forum
Please refer to the EDA agenda and minutes web page for additional ways to submit comments.
Appr oval of t he M inut es
Approval of the minutes of the Regular Economic Development Authority meeting of December 16, 2024.
AGENDA APPROVAL
1. Approval of the Agenda
RESOLUTIONS
2.Consideration of a request for Apartment Remodeling Loans for rehabilitation work at three affordable____rental communities being preserved and rehabilitated by Hempel Real Estate, dba Hempel Holdings,
LLC.Staff Report No. 1
EDA DISCUSSION ITEMS
3. EDA Discussion Items
EXECUTIVE DIRECTOR REPORT
4. Executive Director's Report
CLAIMS
5. Claims
6. 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 612-861-9739.
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 16, 2024
CALL TO ORDER
President Vrieze Daniels called the meeting to order at 7:15 p.m. in the Council Chambers.
EDA Members Erin Vrieze Daniels, President; Mary B. Supple; Sean Hayford Oleary;
Present: and Gordon Hanson.
EDA Members Absent: John Young
Staff Present: Melissa Poehlman, Executive Director; Jan Youngquist, Economic
Development Manager; and Michelle Friedrich, City Clerk.
OPEN FORUM
President Vrieze Daniels noted the process of remote Open Forum participation. Executive Director
Poehlman explained remote participation can be requested ahead of time by contacting an
Economic Development Authority (EDA) staff person via phone or email. No residents participated
in the Open Forum public comment opportunity.
APPROVAL OF THE MINUTES
MOTION: made by Hanson, seconded by Hayford Oleary to approve the minutes of the regular
Economic and Development Authority Minutes from September 16, 2024.
Motion carried: 4-0
ITEM #1 APPROVAL OF THE AGENDA
MOTION: made by Supple, seconded by Hanson to approve the agenda.
Motion carried: 4-0
ITEM #2 APPROVAL OF THE CONSENT CALENDAR
EDA Meeting Minutes -2-December 16, 2024
Executive Director Poehlman presented the consent calendar.
A.Consideration of an Amendment to the Agreement with the Center for
Energy and Environment to authorize 2025 spending for the Apartment
Remodeling Program. (Staff Report No. 11)
B.Consideration of an Economic Development Authority Loan Forgiveness Policy.
(Staff Report No. 12)
MOTION: made by Hayford Oleary, seconded by Supple, to approve Consent Calendar items
2.A and 2.B.
Motion carried 4-0
ITEM #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR
None.
ITEM #4 EDA DISCUSSION ITEMS
Commissioner Hanson referenced a December 3 article in the Star Tribune about the "Grow
Downtown" initiative in St. Paul, which offered a six-month free lease for downtown spaces to
support small, home-based businesses. He noted that 14 out of the 18 participating businesses
remain operational in the same locations, expressing that he found the program to be an interesting
approach.
ITEM #5 EXECUTIVE DIRECTOR’S REPORT
Executive Director Poehlman reported that the EDA is entering into another contract with Hennepin
County for Elevate Hennepin, and a $45,000 BDI grant was received for downtown branding.
ITEM #6 CLAIMS
MOTION: made by Supple, seconded by Hanson to approve the following claims:
U.S. BANK 10/21/2024
EDA Checks: #23569-23586 $117,512.90
TOTAL $117,512.90
U.S. BANK 11/18/2024
EDA Checks: #23587-23615 $36,830.50
TOTAL $36,830.50
EDA Meeting Minutes -3-December 16, 2024
U.S. BANK 12/16/2024
EDA Checks: #23616-23632 $38,769.12
TOTAL $38,769.12
Motion carried: 4-0
ITEM #7 ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:19 p.m.
Date Approved: February 18, 2025
Erin Vrieze Daniels
President
Michelle Friedrich Melissa Poehlman
City Clerk Executive Director
AGENDA SECTION: RESOLUTIONS
AGENDA ITEM # 2.
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
2/18/2025
REPORT PREPARED BY: Julie Urban, Asst. Community Development Director
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a request for Apartment Remodeling Loans for rehabilitation work at three affordable
rental communities being preserved and rehabilitated by Hempel Real Estate, dba Hempel Holdings,
LLC.
EXECUTIVE SUM MARY:
Hempel Real Estate, dba Hempel Holdings, LLC (Developer) is acquiring the Richfield apartment
communities of New Orleans Court, Richland Court, and Winton House (Properties) and is planning to
preserve the affordability and to undertake moderate rehabilitation. The Developer requested $1.77 million
in financial assistance from the Housing and Redevelopment Authority (HRA) to assist in the purchase and
preservation. The HRA approved a Contract for Private Redevelopment with the Redeveloper authorizing
$1.57 million from the City's Affordable Housing Trust Fund and $200,000 in Apartment Remodeling Loans
(contingent upon this action by the Economic Development Authority (EDA).
The guidelines for the EDA Apartment Remodeling Program (Program) typically limit the number of loans
to one per property. All three of the Properties being acquired by the Developer have received
rehabilitation loans in the past, so the EDA is being asked to authorize additional loans, one per
property. The loans will be funded primarily through repayments of the past loans by the current
owner upon the sale of the Properties.
An exception to the Program guidelines is warranted in this case because of the benefit to the
residents and the community with the preservation and rehabilitation of the affordable rental housing
units and because funds are able to be recycled upon the sale of the Properties. The proposed
improvements will need to meet all remaining Program guidelines.
RECO MMENDED AC TION:
By Motion: Adopt a resolution authorizing Hempel Holdings, LLC to apply for one additional
Apartment Remodeling Loan per property for New Orleans Court, Richfield Court, and Winton House
up to a total amount of $200,000.
BASIS OF RECO MMEND ATION:
A.HISTORICAL CONTEXT
On February 18, 2025, the HRA approved a Contract for Private Redevelopment with the Developer
that provides $1.57 million in a 15-year, forgivable loan from the City's Affordable Housing Trust Fund
and up to $200,000 in Apartment Remodeling Loans in exchange for maintaining the affordability of the
Melissa Poehlman, Executive Director
2/12/2025
STAFF REPORT NO. 1
Properties and undertaking moderate rehabilitation activities.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Preserving the City's Naturally Occurring Affordable Housing, or NOAH apartment communities furthers
the Strategic Plan goal to maintain Richfield as an affordable place to live. The City's rental housing is
also occupied by a significant number of Black, Indigenous, and People of Color (BIPOC) residents
and residents with lower incomes. Investing in housing stability is an investment in the health and vitality
of these communities.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The Apartment Remodeling Loan Program guidelines limit the number of loans to one per property, so
the EDA is being asked to authorize an exception. The improvements proposed for the loans will need
to meet the remainder of the guidelines.
D.CRITICAL TIMING ISSUES:
The Developer is in the due diligence period and anticipates closing on the Properties by the end
March.
The Developer may apply for the loans at any time following closing on the acquisition of the
Properties.
E.FINANCIAL IMPACT:
The EDA and HRA anticipate repayments of $191,021 from the current owner for past
Apartment Remodeling Loans that have not reached their full maturity. Additional funds
are available through the Apartment Remodeling Loan Program in order to reach a total of
$200,000.
F.LEGAL CONSIDERATION:
The EDA establishes and adopts guidelines for the Apartment Remodeling Loan Program and has the
authority to grant exceptions.
ALTERNATIVE RECOMMENDATION(S):
Decide not to grant an exception.
PRINCIPAL PARTIES EXPECTED AT MEETING:
Josh Krsnak, Hemple Holdings, LLC
ATTACHMENTS:
Description Type
Resolution Resolution Letter
RC125-402-1008022.v1
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 55
RESOLUTION APPROVING THE USE OF THE APARTMENT REMODELING LOAN
PROGRAM FOR THE REHABILITATION OF NOAH PROPERTIES BY HEMPEL
HOLDINGS, LLC, OR A SUBSIDIARY THEREOF
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) approved a Contract for Private Redevelopment with Hempel
Holdings, LLC, a Minnesota or a subsidiary thereof (collectively, the “Redeveloper”) on February
18, 2025, for the preservation and rehabilitation of three naturally occurring affordable housing
(“NOAH”) properties up for sale in the City of Richfield (the “City”); and
WHEREAS, the NOAH properties consist of the New Orleans Court Apartments and
Townhomes (located at 50 West 78th St), the Richland Court Apartments (located at 1300-1324
East 78th St), and the Winton House Apartments (located at 7500/7544 Cedar Ave); and
WHEREAS, under the terms of the Contract, the Authority has agreed to provide a loan
in an amount up to $1.57 million toward the acquisition and rehabilitation of the NOAH properties
by the Redeveloper and to provide $200,000 in additional assistance through rehabilitation
loans; and
WHEREAS, in 2010 and 2018, the Authority and the Richfield Economic Development
Authority (the “EDA”) provided rehabilitation loans to the NOAH properties and repayment of
those loans will be required upon the sale of the NOAH properties; and
WHEREAS, the EDA administers an Apartment Remodeling Loan Program, and the
guidelines limit the issuance of loans to one per property, in this instance the EDA agrees that
because of the significant benefits the preservation and rehabilitation of the NOAH properties
provide to the residents and the community and given the availability of repayment funds, one
additional loan per property should be made to the NOAH properties; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the
Richfield Economic Development Authority as follows:
1.The Redeveloper is eligible to apply for one Apartment Remodeling Loan per
NOAH property in a total amount of $200,000.
2.The President and the Executive Director are hereby authorized to execute any
additional documents or certificates determined to be necessary by staff and counsel to the EDA
in order to carry out the intention of this resolution.
3.This resolution shall be in full force and effect upon its adoption.
2
RC125-402-1008022.v1
Adopted by the Richfield Economic Development Authority this 18th day of February, 2025.
Erin Vrieze Daniels, President
Melissa Poehlman, Executive Director