051925 Resolution 60 Apt Remodeling Loan HempleRICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 60
RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF APARTMENT
REMODELING LOAN DOCUMENTS AND SUBORDINATION OF APARTMENT
REMODELING LOAN FOR THREE AFFORDABLE HOUSING APARTMENT PROPERTIES
WHEREAS, the Richfield Economic Development Authority (the "Authority") learned that
there are three naturally occurring affordable housing ("NOAH") properties up for sale in the City
of Richfield (the "City") and a preservation buyer is interested in purchasing the properties; 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, the Authority proposes to work with Hempel Holdings, LLC, a Minnesota
limited liability company, or a subsidiary thereof (collectively, the "Redeveloper"), to preserve
and maintain the affordability of the three existing NOAH properties and undertake modest
rehabilitation of the properties, and to that end the Board of Commissioners of the Authority (the
"Board") authorized the Redeveloper to apply for three Apartment Remodeling Loans up to
$200,000 at its meeting on February 18, 2025; and
WHEREAS, the Board has been presented with loan documents between the Authority
and the Redeveloper, consisting of a Loan Agreement, Promissory Note, and Mortgage (the
"Loan Documents") which provides for loans to be given and mortgages to be filed against each
property; and
WHEREAS, the Redeveloper's lender and equity investor have requested administrative
changes to the Agreements; and
WHEREAS, the Redeveloper's lender and equity investor have requested that the EDA
Subordinate its mortgages to the primary financing; and
WHEREAS, the Board has reviewed the Loan Documents and the Subordination
Agreement and finds that the execution thereof by the Authority and performance of the Authority's
obligations thereunder are in the best interest of the City and its residents; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the
Richfield Economic Development Authority as follows:
1. The Loan Documents and Subordination Agreement presented to the Board and
on file with the staff of the Authority are hereby in all respects approved, subject to modifications
that do not alter the substance of the transaction and that are approved by the President and
Executive Director; provided that execution of such documents by such officials shall be conclusive
evidence of approval.
2. The President and Executive Director are hereby authorized to execute the Loan
Documents and the Subordination Agreement on behalf of the Authority and to carry out the
Authority's obligations thereunder.
3. The President and the Executive Director are hereby also authorized to execute
any additional documents or certificates determined to be necessary by staff and counsel to the
Authority in order to carry out the intention of this resolution and previous Authority approvals.
4. This resolution shall be in full force and effect upon its adoption.
Adopted by the Richfield Economic Development Authority this 191h day of May, 2025.
Erin Vrieze baniels, Pre tt
Melissa Poehlman, Executive Director
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