091911completeagenda CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING
MONDAY, SEPTEMBER 19, 2011
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
Roll call
1. Approval of minutes of Regular HRA Meeting of August 15, 2011
2. HRA approval of agenda
3. Consideration of resolution authorizing conveyance of 515 64th Street West to
Woodlake Apartments, LLC
Staff Report No. 44
Notes:
4. HRA discussion items
Notes:
5. Executive Director report
Notes:
6. Claims and payroll
Adjournment
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=IAA!! HOUSING AND REDEVELOPMENT
RICHFIELD AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 15, 2011
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:00 p.m.
ROLL CALL
HRA Members Sue Sandahl, Chair; Doris Rubenstein, Debbie Goettel and Steven Quam
Present:
HRA Members Joan Helmberger
Absent:
Staff Present: John Stark, Acting Executive Director; Karen Barton, Community
Development Manager; Myrt Link, Community Development Accountant;
Chris Regis, Finance Manager; Julie Eddington, Attorney and Cheryl
Krumholz, Recording Secretary.
Item #1 APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF JULY 18, 2011
AND (2) SPECIAL HRA MEETING OF JULY 25, 2011
M/Goettel, S/Rubenstein to approve the minutes of the Regular HRA Meeting of July 18,
2011 and Special HRA Meeting of July 25, 2011.
Motion carried 4-0.
Item #2 HRA APPROVAL OF AGENDA
M/Sandahl, S/Quam to approve the agenda.
Motion carried 4-0.
HRA Meeting -2- August 15,2011
Item #3 PRESENTATION AND CONSIDERATION OF ACCEPTING RICHFIELD HRA
ANNUAL TAX INCREMENT DISTRICT STATUS UPDATE (STAFF REPORT NO.
38)
Rebecca Kurtz, Ehlers and Associates, presented the update. She said the HRA is able to
meet all of its TIF District obligations. The cash balances have some significant use restrictions so
she recommended being conservative in making changes.
M/Sandahl, S/Rubenstein to accept the Richfield HRA annual tax increment district status
update.
Motion carried 4-0.
Item #4 CONSIDERATION OF RESOLUTION ACCEPTING MONETARY CONTRIBUTIONS
FOR COMMUNITY DEVELOPMENT EVENTS AND PROGRAMS (STAFF REPORT
NO. 39)
Acting Executive Director Stark presented Staff Report No. 39.
M/Rubenstein, S/Goettel that the following resolution be adopted and that it be made part of
these minutes
HRA RESOLUTION NO. 1099
RESOLUTION AUTHORIZING RICHFIELD COMMUNITY DEVELOPMENT
DEPARTMENT TO ACCEPT DONATIONS FROM THE LISTED BUSINESSES FOR
DESIGNATED USES
Motion carried 4-0. This resolution appears as HRA Resolution No. 1099.
Item #5 PUBLIC HEARING REGARDING BUSINESS SUBSIDY NOT TO EXCEED $650,000
AND CONSIDERATION OF RESOLUTION APPROVING BUSINESS SUBSIDY
AGREEMENT WITH LYNDALE GARDENS, LLC AND FUNDING AGREEMENT
WITH LYNDALE GARDENS, LLC (STAFF REPORT NO. 40)
Community Development Manager Barton presented Staff Report No. 40.
M/Goettel, S/Sandahl to close the public hearing.
Motion carried 4-0.
Julie Eddington, Kennedy and Graven, explained the business subsidy agreement and
funding agreement, including the job and wage goals. She added that the HRA would enter a
contract with the developer and this would establish a partnership to provide tools to move the
project forward with a common focus.
M/Goettel, S/Rubenstein that the following resolution be adopted and that it be made part of
these minutes
HRA Meeting -3- August 15,2011
HRA RESOLUTION NO. 1100
RESOLUTION APPROVING A FUNDING AGREEMENT AND A
BUSINESS SUBSIDY AGREEMENT
Motion carried 4-0. This resolution appears as HRA Resolution No. 1100.
Item #6 CONSIDERATION OF RESOLUTION ADOPTING MODIFICATION TO
REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA
AND ADOPTING AMENDED AND RESTATED TAX INCREMNT FINANCING PLAN
FOR 2010-1 HOUSING TAX INCREMENT FINANCING DISTRICT; WOODLAKE
HOUSING (STAFF REPORT NO. 41)
Community Development Director Stark presented Staff Report No. 41.
Community Development Director Stark distributed a revised plan which included minor
changes.
Terry McNellis, developer, discussed the status of their HUD financing request application
and the projects financing and demolition timelines.
M/Quam, S/Rubenstein that the following resolution be adopted and that it be made part of
these minutes
HRA RESOLUTION NO. 1101
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING AN
AMENDED AND RESTATED TAX INCREMENT FINANCING PLAN FOR THE
2010-1 HOUSING TAX INCREMENT FINANCING DISTRICT (WOODLAKE
HOUSING)
Motion carried 4-0. This resolution appears as HRA Resolution No. 1101.
Item #7 CONSIDERATION OF:
A. RESOLUTION APPROVING CONTRACT FOR PRIVATE DEVELOPMENT
WITH WOODLAKE RICHFIELD APARTMENTS, LLC;
B. RESOLUTION APPROVING ISSUANCE OF TAX INCREMENT LIMITED
REVENUE NOTE, SERIES 2011A AND 2011B; AND
C. RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH AMENDED AND RESTATED
HOUSING TAX INCREMENT FINANCING DISTRICT 2010-1 (STAFF
REPORT NO. 42)
Community Development Director Stark presented Staff Report No. 42.
Julie Eddington, Kennedy and Graven, explained the conduit revenue bonds.
M/Sandahl, S/Rubenstein that the following resolutions be adopted and that it be made part
of these minutes
HRA Meeting -4- August 15,2011
HRA RESOLUTION NO. 1102
RESOLUTION APPROVING A CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD AND WOODLAKE RICHFIELD APARTMENTS, LLC
This resolution appears as HRA Resolution No. 1102.
HRA RESOLUTION NO. 1103
RESOLUTION APPROVING THE ISSUANCE OF, AND PROVIDING THE FORM,
TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAX
INCREMENT LIMITED REVENUE NOTE, SERIES 2011A IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $822,000 AND ITS TAX INCREMENT LIMITED
REVENUE NOTE, SERIES 2011B IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO
EXCEED $500,000
This resolution appears as HRA Resolution 1103.
HRA RESOLUTION NO. 1104
RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE
OF CERTAIN COSTS IN CONNECTION WITH AMENDED AND RESTATED HOUSING
TAX INCREMENT FINANCING DISTRICT 2010-1 (WOODLAKE HOUSING)
This resolution appears as HRA Resolution 1104.
Motion carried 4-0.
Item #8 CONSIDERATION OF RESOLUTIONS APPROVING 2012 PROPOSED HRA
BUDGET AND TAX LEVY AND 2011 REVISED HRA BUDGET (STAFF REPORT
NO. 43)
Community Development Director Stark presented a PowerPoint presentation of the 2011
revised and 2012 proposed HRA budget.
Finance Manager Regis explained the reserve balances and the levy as it pertains to the
General Fund.
M/Goettel, S/Quam that the following resolution be adopted and that it be made part of
these minutes
HRA RESOLUTION NO. 1105
RESOLUTION APPROVING PROPOSED 2012 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2012 TAX LEVY
This resolution appears as HRA Resolution No. 1105.
HRA RESOLUTION NO. 1106
RESOLUTION AUTHORIZING REVISION OF THE 2011 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
HRA Meeting -5- August 15,2011
This resolution appears as HRA Resolution No. 1106.
Motion carried 4-0.
Item #9 HRA DISCUSSION ITEMS
None.
Item #10 EXECUTIVE DIRECTOR REPORT
None.
Item #11 CLAIMS AND PAYROLL
M/Goettel, S/Quam that the following claims and payrolls be approved:
U.S BANK 08/15/2011
Section 8 Checks: 120849-120958 $ 138,813.53
HRA Checks: 31262-31280 $ 456,896.73
TOTAL $ 595,710.26
Motion carried 4-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:05 p.m.
Date Approved: September 19, 2011
Suzanne M. Sandahl
Chair
Cheryl Krumholz John Stark
Recording Secretary Acting Executive Director
,II
AGENDA ITEM#: 3
REPORT#: 44
=AM STAFF REPORT
RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
SEPTEMBER 19, 2011
-
REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
NAME,TITLE
REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW:
A.
f SIGNATUR,I
reri
i
REVIEWED BY EXECUTIVE DIRECTOR: A t,
ITEM FOR HRA CONSIDERATION:
Consideration of a Resolution authorizing the conveyance of 515 64th Street West to
Woodlake Apartments, LLC.
I. RECOMMENDED ACTION:
By Motion: Approval of a Resolution authorizing the conveyance of
515 64th Street West to Woodlake Apartments, LLC.
II. BACKGROUND
A Contract for Private Development (Contract) with Woodlake Apartments, LLC.
(Developer) was approved by the Richfield Housing and Redevelopment Authority
(HRA) at its August 15, 2011 meeting. This Contract relates to the development of
a 94-unit apartment building at Lyndale Avenue and 64th Street West. In addition to
the property already owned by the Developer, the development also contains a
property currently owned by the HRA at 515 64th Street West.
The approved Contract contemplates that the HRA "will be conveying the HRA
property to the Developer for a cash payment of$1.00 and with the understanding
that the Tax Increment generated... will be used to reimburse the HRA for the
actual value... which is $85,000 plus [4%] interest."
09192011 Woodlake Property Conveyance
While the Contract obligates the HRA to sell the property to the Developer, a formal
Resolution authorizing the sale of the property is legally required.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA has approved a Contract obligating to sell the property at
515 64th Street West to Woodlake Apartments, LLC.
• A Resolution authorizing the conveyance of the property is legally
required.
B. CRITICAL TIMING ISSUES
• The Developer hopes to close on their financing during the week of
September 26, 2011. Proof of ownership of this property is a
prerequisite of that closing.
C. FINANCIAL
• The HRA will be reimbursed for the actual value ($85,000) plus 4%
interest for this property via the Tax Increment generated by the 94-
unit apartment development.
D. LEGAL
• Legal Counsel drafted the attached Resolution.
IV. ALTERNATIVE RECOMMENDATION(S)
• Defer consideration of this item to a later HRA meeting in order to address
any outstanding concerns; this would require either the scheduling of a
special HRA meeting prior to September 26, 2011 or would delay the
Developer's closing on real estate financing.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
RESOLUTION NO.
RESOLUTION AUTHORIZING THE CONVEYANCE OF
INTEREST IN CERTAIN LAND
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "HRA"), and Woodlake Richfield Apartments, LLC (the"Developer") has approved
the execution of a Contract for Private Redevelopment to be dated on or after September 1, 2011
(the "Contract"); and
WHEREAS, pursuant to the terms of the Contract, the HRA is required to convey to the
Developer all of the HRA's right, title and interest in a parcel of land that constitutes the "HRA
Property" as that term is defined in the Contract, located at 515 64th Street West in Richfield,
Minnesota and legally described as:
Lot 10, Block 6, "Lyndale Oaks," according to the recorded plat thereof, Hennepin
County, Minnesota, including % of adjacent vacated alley; and
WHEREAS, the Contract requires that the HRA to convey the HRA property to the
Developer for$1.00 and the HRA will be reimbursed for the fair market value of the HRA property
with tax increment revenues generated by the Tax Increment Financing District No.2010-1
(Woodlake Housing) (the "TIF District"); and
WHEREAS, pursuant to the Contract, the Developer is required to construct a 94-unit
multifamily housing project on several parcels of property, including the HRA property; and
WHEREAS, on the date hereof, the HRA held a duly noticed public hearing regarding the
conveyance of the HRA property pursuant to Minnesota Statutes, Section 469.029, subd. 2; and
WHEREAS, the proposed conveyance of the HRA property is in accordance with the
Redevelopment Plan for the Richfield Redevelopment Project Area and the Amended and
Restated Tax Increment Financing Plan for the TIF District; and
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota as follows:
1. The conveyance of the HRA's right, title and interest in the HRA Property described
herein is hereby approved.
2. The Chairperson and the Executive Director are hereby authorized to execute and
deliver to the Developer, such quit claim deed and certificates as are required to carry out this
Resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 19th day of September, 2011.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary