2025-09-02 - AGE - HRA Regular Meeting September 2, 2025 — 6:30 PM
Golden Valley City Hall
Council Chambers
1.Call to Order
2.Approval of Agenda
3.Consent Agenda
Approval of Consent Agenda - All items listed under this heading are considered to be routine
and will be enacted by one motion. There will be no discussion of these items unless a
Commission Member so requests in which event the item will be removed from the general
order of business and considered in its normal sequence on the agenda.
3.A.Approval of HRA Meeting Minutes
3.B.Approve Sub-Recipient Grant Agreements with GMHC Holding LLC for Home Ownership
Program for Equity (HOPE) Property at 208 Meander Road
3.C.Approve Contract for Development for 1131 Lilac Drive North with Magnolia Homes, LLC
4.Public Hearing - None.
5.Old Business - None.
6.New Business
6.A.Public Input and Approval of HRA Resolution No. 25-02 Adopting a Proposed Budget and
Establishing the Proposed Tax Levy Payable in 2026
7.Adjournment
HRA REGULAR MEETING AGENDA
Members of the public may attend this meeting in-person, by watching on cable channel 16, or by
streaming on CCXmedia.org. The public can make in-person statements during public comment
sections.
Individuals may provide public hearing testimony remotely by emailing a request to the City Clerk's
office at cityclerk@goldenvalleymn.gov by 3 p.m. on the day of the meeting.
City of Golden Valley HRA Regular Meeting September 2, 2025 — 6:30 PM
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EXECUTIVE SUMMARY
Legal
763-512-2345 / 763-512-2344 (fax)
Golden Valley Housing and Redevelopment Authority Meeting
September 2, 2025
Agenda Item
3.A. Approval of HRA Meeting Minutes
Prepared By
Theresa Schyma, City Clerk
Summary
The following minutes are available to view on the City's public Laserfiche site :
August 6, 2025 Regular HRA Meeting
A direct link to the folder with the documents referenced above is:
https://weblink.ci.golden-valley.mn.us/WebLink/Browse.aspx?
id=1057510&dbid=0&repo=GoldenValley
Legal Considerations
This item did not require legal review.
Equity Considerations
This item did not require equity review.
Recommended Action
Motion to approve HRA meeting minutes as submitted.
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EXECUTIVE SUMMARY
Community Development
763-512-2345 / 763-512-2344 (fax)
Golden Valley Housing and Redevelopment Authority Meeting
September 2, 2025
Agenda Item
3.B. Approve Sub-Recipient Grant Agreements with GMHC Holding LLC for Home Ownership Program
for Equity (HOPE) Property at 208 Meander Road
Prepared By
Christine Costello, Housing & Economic Development Manager
Summary
In 2023 the City Council approved an application and received funding from the Metropolitan Council
for Local Housing Incentives Account Affordable Homeownership Pilot Funds in the amount of
$224,000 for the construction of single-family homes at 4707 Circle Down and 208 Meander Road by
Greater Metropolitan Housing Corporation (GMHC) under the Home Ownership Program for Equity
(HOPE).
Additionally, in 2023, the Housing and Redevelopment Authority (HRA) applied for and received
funding from Minnesota Housing for Impact Funds to build owner-occupied affordable housing.
Funding from Minnesota Housing was received for three areas of housing development which includes
single-family homes, duplexes, and rowhomes. The total funding awarded to the HRA is $3.5 million
for the three distinct areas of housing development. The Minnesota Housing Impact Funds are for
value gap subsidy (the difference between the total development cost of a project and the fair market
sales price of the property). For the site at 208 Meander the funding from Minnesota Housing Impact
Funds is for the construction of a single-family home with a value gap subsidy of $135,000.
The subrecipient grant agreements with GMHC Holding LLC ensures that they follow all the grant
requirements of the Metropolitan Council and Minnesota Housing related to the funding that GMHC
will receive for the development of a single-family owner-occupied affordable home.
Financial or Budget Considerations
The City and HRA have accepted the grant agreements with Metropolitan Council for Local Housing
Incentives Account Affordable Homeownership Pilot Funds and the Minnesota Housing Impact Funds.
Legal Considerations
The sub-recipient grant agreements were prepared and reviewed by the City Attorney.
Equity Considerations
The Home Ownership Program for Equity meets the City’s goals to preserve and promote economically
diverse housing options in our community by creating high quality housing in Golden Valley for
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households with a variety of income levels, ages, and sizes. Dedicated publicly owned land for more
affordable housing for homeownership is a valuable resource to meet our affordable housing goals.
HOPE recognizes that systemic racism in housing occurs today — Black, Indigenous, and other
communities of color continue to face discrimination and lack of access to affordable housing and
home ownership. Given existing racial disparities in housing, providing both affordable rental and
homeownership opportunity is not only vital to providing all individuals and families with housing
choice, but also with access to stable housing that impacts their health, education, employment, and
ability to build wealth.
Recommended Action
Motion to Approve Sub-Recipient Grant Agreements with GMHC Holding LLC for Home Ownership
Program for Equity (HOPE) Property at 208 Meander Road.
Supporting Documents
LHIA Sub Grant Agreement with GMHC Holding LLC
MHFA Sub Grant Agreement with GMHC Holding LLC
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SUB-GRANT AGREEMENT
(Metropolitan Council Livable Communities Act Grant – Local Housing Incentives Account – Affordable
Homeownership Grant Program)
THIS SUB-GRANT AGREEMENT (the “Agreement”) is made as of this 2nd day of September, 2025
(the “Effective Date”), between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF GOLDEN VALLEY, MINNESOTA, a public body corporate and politic of the State of
Minnesota (the “Grantee”), and GMHC HOLDING LLC, a Minnesota nonprofit cooperative (the “Sub-
Grantee”).
WHEREAS, the Grantee and Metropolitan Council entered into the Metropolitan Livable Communities
Act Grant Agreement, effective as of February 9, 2024, as amended by that certain First Amendment of
Metropolitan Local Housing Incentives Account Affordable Homeownership Grant Agreement, effective as
of June 4, 2025 (collectively, the Grant Agreement), a copy of which is attached hereto as EXHIBIT A and
is incorporated herein and made part of this Agreement; and
WHEREAS, the Grant Agreement provides that Metropolitan Council is to grant to the Grantee a sum not
to exceed $112,000, which shall be used to reimburse the Sub-Grantee for the development of a new
homeownership housing unit to be sold to households with incomes of no more than eighty percent (80%)
of the area median income (the “Project”) on the property legally described in EXHIBIT B attached hereto
(the “Property”); and
WHEREAS, the Grantee and the Sub-Grantee have agreed for the Sub-Grantee to assume certain duties
and responsibilities of the Grantee under the Grant Agreement in consideration of receiving funds provided
for in the Grant Agreement and subject to the terms, conditions, and limitations set forth therein.
NOW, THEREFORE, in consideration of the premises and the mutual promises set forth herein, the parties
hereto covenant and agree as follows:
1. Grant Funds. The Grantee will distribute funds received under the Grant Agreement upon
the continuing compliance by the Sub-Grantee with its obligations hereunder. The Sub-Grantee shall use
the grant proceeds which are being provided by the Grantee under this Agreement solely for the Project, as
further specified within the Livable Communities Project Summary (attached to the Grant Agreement). The
grant proceeds shall not be used for any ineligible uses as described in the Grant Agreement. The Sub-
Grantee understands and agrees that any reduction or termination of Local Housing Incentives Account
funds made available to Metropolitan Council from the Local Housing Incentives Account of the
Metropolitan Livable Communities Fund may result in a like reduction in the amount of the grant proceeds
that will be made available to the Sub-Grantee pursuant to this Agreement. Pursuant to Section 2.08 of the
Grant Agreement, the parties agree that none of the grant funds may be made available to any subgrantee
or subrecipient without the prior written consent of Metropolitan Council.
2. Grantee’s Obligations. The Grantee will be responsible for reimbursing the Sub-Grantee
for the costs of tree removal and demolition (the “Activities”) up to a total amount of $112,000, which will
be funded from the grant proceeds received from Metropolitan Council. The Grantee will disburse funds
to the Sub-Grantee pursuant to this Agreement and the Grant Agreement, based upon reimbursement
requests submitted by the Sub-Grantee and reviewed and approved by the Grantee and Metropolitan
Council. Reimbursement requests must be accompanied by all information and documentation needed by
the Grantee pursuant to Section 2.12 of the Grant Agreement to submit a payment request form to
Metropolitan Council. In order to ensure that all funds are drawn prior to the expiration of the grant, all
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payment requests must be received by the Grantee at least 60 days prior to the grant-term expiration date of
December 31, 2027 unless extended by the Grantee in writing, otherwise any unrequested funds will be
lost. The Grantee shall have no obligation to disburse any of these funds if, at the time of disbursement, the
Sub-Grantee is in default under any of the terms of this Agreement.
3. Sub-Grantee’s Obligations. The Sub-Grantee shall perform and satisfy certain obligations
of the Grantee under the Grant Agreement. Specifically, but without limiting the foregoing, the Sub-Grantee
must perform all the following with respect to the Activities and in satisfaction of the Grant Agreement
obligations:
a. The Sub-Grantee will be responsible for performing all of the activities on the Property set
forth in the Livable Communities Project Summary that is attached to the Grant Agreement
(the “Activities”). All Activities provided by the Sub-Grantee under this Agreement must
be performed to the reasonable satisfaction of the Grantee and Metropolitan Council and in
accordance with all applicable federal, state, and local laws, ordinances, rules, and
regulations. The Sub-Grantee will not receive payment for Activities found by the Grantee
or Metropolitan Council to be reasonably unsatisfactory or performed in violation of
federal, state, or local law.
b. The Sub-Grantee will comply with all requirements and conditions of the Grant Agreement
applicable to the Activities that, by their nature, must be performed by Sub-Grantee rather
than Grantee and that are conditions of award of funds under the Grant Agreement.
c. The Sub-Grantee must take all other actions as are needed to ensure compliance with the
Grant Agreement and provide such information and assistance to the Grantee as may
reasonably be needed to ensure the Grantee can comply with the requirements of the Grant
Agreement that, by their nature, must be performed by the Grantee rather than the Sub-
Grantee.
d. In order to permit the Grantee and Metropolitan Council to monitor compliance with this
Agreement, the Sub-Grantee shall permit any person that the Grantee or Metropolitan
Council designates, at the expense of the Grantee or Metropolitan Council, to visit and
inspect the Property, corporate books and financial records and documents of the Sub-
Grantee as relevant to receipt and expenditure of the grant funds or this Agreement and to
discuss its affairs, finances, and accounts (as they relate to receipt and expenditure of the
grant funds or this Agreement) with the principal officers of Sub-Grantee, all at such
reasonable times and as often as the Grantee or Metropolitan Council may reasonably
request during the term of this Agreement and for a period of six (6) years after the
termination of this Agreement.
e. The Sub-Grantee will not discriminate against any employee or applicant for employment
because of race, color, creed, religion, national origin, sex, marital status, status with regard
to public assistance, membership or activity in a local civil rights commission, disability,
sexual orientation or age and will take affirmative action to insure applicants and employees
are treated equally with respect to all aspects of employment, rates of pay and other forms
of compensation, and selection for training.
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f. If the Sub-Grantee earns any interest or other income from the grant funds received from
the Grantee under this Agreement, the Sub-Grantee must use the interest earnings or income
only for the purposes of implementing the Activities.
g. Pursuant to Section 3.01 of the Grant Agreement, because the Project includes affordable
housing units, the Grantee is required to ensure that said housing units will remain
“affordable,” as that term is defined in the Grant Agreement, for a minimum period of
fifteen (15) years. Said obligation may be satisfied if other Project funding sources require
an affordability term of at least fifteen (15) years. If at any point it is determined that the
Sub-Grantee is not participating in said program or in another state or federal program that
will ensure such affordability for the period required via formal instrument, or if there is
any other reason to believe that there are no instruments in place to ensure the same, as
required in the Grant Agreement, the Sub-Grantee agrees that it will execute any
instruments to ensure such affordability, in a form that meets the Grantee’s satisfaction. A
failure to adhere to this subsection may result , at Grantee’s request, in the Sub-Grantee
being required to pay back grant funds received pursuant to this Agreement.
h. Pursuant to Section 3.02 of the Grant Agreement, the Sub-Grantee agrees and
acknowledges that it, as the Project owner, must adopt and implement an affirmative fair
housing marketing plan for all housing units within the Project. To that end, the Sub-
Grantee agrees that before it will be eligible for any grant funds under the terms of this
Agreement, it shall adopt and implement such a plan, which shall substantially conform to
affirmative fair housing marketing plans published by the U.S. Department of Housing and
Urban Development (“HUD”) or sample affirmative fair housing marketing plans
published by the Minnesota Housing Finance Agency. Such plan shall be made available
to Grantee upon its request. A failure to adhere to this subsection may result, at the
Grantee’s request, in the Sub-Grantee being required to pay back grant funds received
pursuant to this Agreement.
4. Ownership and Condition of the Property. The Sub-Grantee makes the following
representations:
a. It is the owner of the Property in fee simple.
b. To the best of the Sub-Grantee’s knowledge, the Property does not violate any applicable
federal, state, or local law, ordinance, or regulation.
c. There are no actions, suits, or proceedings pending, at law or in equity, or to the knowledge
of the Sub-Grantee threatened, against or affecting it or the Property, and the Sub-Grantee
is not in default with respect to any order, writ, injunction, decree, or demand of any court
or any governmental authority.
d. The consummation of this transaction and performance of the Sub-Grantee’s obligations
under this Agreement will not result in any breach of, or constitute a default under any
mortgage, deed of trust, lease, bank loan, or credit agreement, partnership agreement, or
other instrument which affects the Sub-Grantee, or to which the Sub-Grantee is a party.
e. It has not used the Property in connection with the generation, disposal, storage, treatment,
or transportation of hazardous substances and that the Property will not be so used during
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the term of this Agreement by the Sub-Grantee, its agents, tenants, or assigns, except in
compliance with a Minnesota Pollution Control Agency (“MPCA”) approved Development
Response Action Plan.
f. It has obtained or caused its contractors and/or affiliates to obtain, all the insurance
described in Section 5 hereof and such policies of insurance are in full force and effect as
of the date of this Agreement.
g. The individual(s) signing this Agreement on behalf of the Sub-Grantee are duly authorized
to execute this Agreement on the Sub-Grantee’s behalf.
5. Affirmative Covenants. The Sub-Grantee hereby covenants and agrees that it shall:
a. Insurance.
i. Purchase and maintain such insurance, or cause its contractors and/or affiliates to
purchase and maintain such insurance, as will protect it from claims which may
arise out of, or result from, the Activities completed under this Agreement,
whether such operations be by the Sub-Grantee or by any subcontractor, or by
anyone directly employed by them, or by anyone for whose acts any one of them
may be liable.
ii. For the term of this Agreement and in connection with the Activities completed
pursuant to this Agreement, secure the following coverages and comply with all
provisions noted, or cause its contractors and/or affiliates to secure, the following
coverages and comply with all provisions noted. Upon written request by Grantee,
during the term of this Agreement, the Sub-Grantee will provide certificates of
insurance evidencing current coverages.
Commercial General Liability Insurance:
$1,500,000 per occurrence
$2,000,000 general aggregate
$2,000,000 products/completed operations total limit
$1,000,000 personal injury and advertising injury
This policy shall be written on an occurrence basis using ISO form CG 00
01 or its equivalent. The Sub-Grantee represents that there is no per claim
limit under the Sub-Grantee’s occurrence-based policy. Coverage shall
include contractual liability and XCU. Notwithstanding the foregoing, the
Sub-Grantee will obtain, or cause its contractor and/or affiliates to obtain
completed operations coverage for three (3) years after substantial
completion of the Activities. Upon written request by the Grantee, the
Sub-Grantee is required to add, or to cause its contractors and/or affiliates
to add, the Grantee and any specified officials, employees, volunteers, and
agents as Additional Insureds to the Commercial General Liability and
Umbrella policies fulfilling the requirements of this Agreement with
respect to liabilities caused in whole or in part by the Sub-Grantee’s acts
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or omissions, or the acts or omissions of those acting on the Sub-Grantee’s
behalf in the performance of the ongoing operations, services, and
completed operations of the Sub-Grantee under this Agreement. The
coverage provides shall be primary and non-contributory.
Automobile Insurance:
Coverage shall be provided for hired, non-owned, and owned automobiles.
Minimum limits of $1,000,000 combined single limit.
Workers’ Compensation and Employers’ Liability:
Workers’ Compensation as required by Minnesota statutes.
Employers’ Liability Limits: $500,000/$500,000/$500,000
Professional Liability/Errors and Omissions Coverage (if applicable):
Per Claim Limit: $500,000
Per Occurrence Limit: $1,500,000
Aggregate Limit: $2,000,000
This policy is to be written as acceptable to the Grantee. Certificates of
Insurance must indicate if the policy is issued on a claims-made or
occurrence basis. If coverage is carried on a claims-made basis, then (1)
the retroactive date shall be noted on the certificate and shall be prior to or
the day of the inception of this Agreement; and (2) evidence of coverage
shall be provided for three (3) years beyond expiration of this Agreement.
iii. The Sub-Grantee shall provide the Grantee with prior notice of any lapse in the
insurance required under this Agreement including cancellation, and/or non-
renewal or material change in coverage.
iv. The above sub-paragraphs establish minimum insurance requirements, and it is the
sole responsibility of the Sub-Grantee to purchase and maintain, or cause its
contractors and/or affiliates to purchase and maintain, additional coverages as the
Sub-Grantee may deem necessary in connection with this Agreement.
v. The Certificate of Insurance must demonstrate that the policy is issued pursuant to
these requirements. Copies of insurance policies shall be submitted to the Grantee
upon written request.
vi. Certificates shall specifically indicate if the policy is written with an admitted or
non-admitted carrier. Best’s Rating for the insurer shall be noted on the certificate
and shall not be less than an A-.
b. To the fullest extent permitted by law, the Sub-Grantee shall defend, indemnify, and hold
harmless the Grantee and Metropolitan Council and their officials, employees, and agents
from and against all claims, damages, losses and expenses, including but not limited to
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attorneys’ fees, arising out of or resulting from the conduct or implementation of the
Activities funded by this Agreement, except to the extent the claims, damages, losses, and
expenses arise from the own negligence of the Grantee or Metropolitan Council. Claims
included in this indemnification include without limitation any claims asserted pursuant to
the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes,
Chapter 115B (CERCLA), as amended, United States Code Title 42, Section 9601 et seq.,
and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended,
United States Code Title 42, Sections 6901 et seq. This obligation shall not be construed
to negate, abridge, or otherwise reduce any other right or obligation of indemnity which
otherwise would survive the expiration or termination of this Agreement. This
indemnification shall not be construed as a waiver on the part of either the Grantee or
Metropolitan Council of any immunities or limits on liability provided by Minnesota
Statutes Chapter 466 or other applicable state or federal law.
c. Promptly pay and discharge all taxes, assessments, and other governmental charges
imposed upon it or upon its income and profits or upon the Property, and any and all claims
for labor, material or supplies or rental charges or charges of any other kind which, if
unpaid, might by law become a lien or charge upon the Property, provided, however, that
the Sub-Grantee shall not be required to pay any such tax, assessment, charge or claim, if
the Sub-Grantee is contesting the validity of such matters, in good faith, through
appropriate proceedings, and the Sub-Grantee sets aside on its books adequate reserves for
the payment of such claims.
d. Maintain the Property in good repair, working order, and condition and from time to time,
make or cause to be made all necessary renewals, replacements, and repairs so that at all
times the Sub-Grantee’s business can be conducted efficiently.
e. Establish and maintain accurate and complete accounts and records relating to the receipt
and expenditure of all grant funds received from the Grantee. Notwithstanding the
expiration and termination provisions of this Agreement, such accounts and records shall
be kept and maintained by the Sub-Grantee for a period of six (6) years following the
completion of the Activities for six (6) years following the expenditure of the grant funds,
whichever occurs earlier. Accounting methods shall be in accordance with generally
accepted accounting principles.
f. The accounts and records of the Sub-Grantee shall be audited in the same manner as all
other accounts and records of the Sub-Grantee are audited and may be audited or inspected
on the Sub-Grantee’s premises or otherwise by individuals or organizations designated and
authorized by the Grantee or Metropolitan Council at any time, following reasonable
notification to the Sub-Grantee, for a period of six (6) years following the completion of
the Activities or six (6) years following the expenditure of the grant funds, whichever occurs
earlier. Pursuant to Minnesota Statutes, Section 16C.05, subdivision 5, the books, records,
documents, and accounting procedures and practices of the Sub-Grantee that are relevant
to this Agreement are subject to examination by the Grantee and Metropolitan Council and
either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6)
years.
g. The Sub-Grantee shall include in any contract or subcontract for the Activities appropriate
provisions to ensure contractor or subcontractor compliance with all applicable state and
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federal laws and this Agreement, including, but not limited to, federal and state laws relating
to stormwater discharges (i.e., Code of Federal Regulations, Title 40, parts 122 and 123 and
Metropolitan Council’s 2040 Water Resources Policy Plan and the local water management
plan). Along with such provisions, the Sub-Grantee shall require that contractors and
subcontractors performing activities covered by this grant obtain all required permits,
licenses, and certifications, and comply with all applicable state and federal Occupational
Safety and Health Act regulations.
h. Construct the Project to meet all applicable local codes, rehabilitation standards,
ordinances, and zoning regulations. The Grantee and Metropolitan Council assume no
responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds,
authorizations, or approvals necessary to perform or complete the Activities. The Sub-
Grantee and its contractors, if any, must comply with all applicable licensing, permitting,
bonding, authorization, and approval requirements of federal, state, and local governmental
and regulatory agencies, including conservation districts.
i. Acknowledge the financial assistance provided by Metropolitan Council in promotional
materials, press releases, reports and publications relating to the Activities which are funded
in whole or in part with the grant funds. The acknowledgment must contain the following
or comparable language:
“Financing for this project was provided by the Metropolitan Council Metropolitan
Livable Communities Fund.”
Until the Activities are completed, the Sub-Grantee must ensure the above
acknowledgment language, or alternative language approved by the authorized agent of
Metropolitan Council, is included on all signs (if any) located on the Property or
construction sites. The acknowledgments and signage should refer to “Metropolitan
Council” (not “Met Council” or “Metro Council”).
j. Provide the Grantee with all information that is needed by the Grantee to submit the
required written progress reports and annual written reports required by Section 4.03 of the
Grant Agreement.
6. Negative Covenants. The Sub-Grantee covenants and agrees that for the term of this
Agreement, it will not:
a. Merge or consolidate with or into any other entity.
b. Default upon any contract or fail to pay any contract or fail to pay any of its debts or
obligations as the same mature, subject to the applicable cure periods set forth in such a
contract.
c. Generate, dispose of, use, store, treat, or transport hazardous waste substances on, in, over
or across the Property or allow the Sub-Grantee’s tenants to do so; provided, however, that
Sub-Grantee may treat or remediate hazardous substances pursuant to an MPCA-approved
Development Response Action Plan and the Sub-Grantee and its tenants may use, store,
and transport hazardous substances on, over or across the Property as is reasonably
necessary to the use of the Property as residential, commercial, or office property provided
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such use, storage, and transportation complies at all times with all applicable federal, state,
and local statutes, codes, regulations, and ordinances.
7. Miscellaneous.
a. All representations and warranties contained herein or made in writing by or on behalf of
the Sub-Grantee in connection with the transactions contemplated hereby shall be made as
of the Effective Date but survive the execution and delivery of this Agreement and the
advances hereunder. All statements contained in any certificate or other instrument
delivered by or on behalf of the Sub-Grantee pursuant thereto or in connection with the
transactions contemplated hereby shall constitute representations and warranties by the
Sub-Grantee.
b. This Agreement shall be binding upon and inure to the benefit of the successors and assigns
of the parties.
c. No amendment, change, waiver, or modification of this Agreement shall be valid unless it
is in a written document which Sub-Grantee, and the Grantee sign, and the Grantee’s waiver
of any breach or default of any of the Sub-Grantee’s obligations, agreements, or covenants
under this Agreement shall not be deemed to be a waiver of any subsequent breach of this
Agreement, or any other obligation, agreement, or covenant. The Grantee’s forbearance in
pursuing or enforcing a remedy for the Sub-Grantee’s breach of any of the obligations set
forth in this Agreement shall not be deemed a waiver of the Grantee’s rights and remedies
with respect to such breach.
d. This Agreement may be executed simultaneously in two (2) or more counterparts, each of
which shall be an original, but all of which shall constitute one (1) agreement.
e. This Agreement supersedes and has merged into all prior oral agreements between the
Grantee and the Sub-Grantee regarding the Activities.
f. Any notices required or contemplated hereunder shall be effective upon the placing thereof
in the United States Mail, certified mail, return receipt requested, postage prepaid, and
addressed as follows:
To the Grantee: Housing and Redevelopment Authority
in and for the City of Golden Valley, Minnesota
7800 Golden Valley Road
Golden Valley, MN 55427
Attn: Director
To the Sub-Grantee: Greater Metropolitan Housing Corporation
970 Raymond Avenue, #201
Saint Paul, MN 55114
Attn: President
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g. This Agreement shall be interpreted and construed according to the laws of the State of
Minnesota. All litigation regarding this Agreement shall be venued in the appropriate state
or federal district court in Hennepin County, Minnesota.
h. Neither party may assign or transfer its rights and obligations under this Agreement without
the prior consent of the other party, provided that such party’s assignee or transferee
assumes all obligations under this Agreement and the other party consents to the assignment
in writing. Said agreement to assignment shall not unreasonably be withheld by the
consenting party.
8. Relationship. It is agreed that nothing contained in this Agreement is intended or should
be construed as creating the relationship of agents, partners, joint venturers, or associates between the parties
hereto or as constituting the Sub-Grantee as the employee of the Grantee for any purpose or in any manner
whatsoever. The Sub-Grantee is an independent contractor and neither it, nor its employees, agents, or
representatives are employees of the Grantee.
9. MGDPA. All data collected, created, received, maintained or disseminated for any purpose
in the course of the Sub-Grantee’s performance of this Agreement is governed by the Minnesota
Government Data Practices Act, Minnesota Statutes Chapter 13, and any other applicable state statutes, any
state rules adopted to implement the Act and statutes, as well as federal statutes and regulations on data
privacy.
10. Copyrights. The Sub-Grantee certifies that it (a) is the owner of any renderings, images,
perspectives, sections, diagrams, photographs or other copyrightable materials (collectively “copyrightable
materials”) that are in the grant application or submitted to the Grantee as part of the grant application
process or that the Sub-Grantee is fully authorized to grant permissions regarding the copyrightable
materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Sub-
Grantee agrees that the Grantee and Metropolitan Council have a non-exclusive royalty-free license and all
necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes,
including but not limited to press releases, presentations, reports and on the Internet. The Sub-Grantee also
agrees that it will not hold the Grantee or Metropolitan Council responsible for the unauthorized use of the
copyrightable materials by third parties.
11. Restrictions on Loans or Grants by Sub-Grantee. The Sub-Grantee shall not use the grant
proceeds for loans or grants to any subrecipient at any tier unless the Sub-Grantee obtains the prior written
consent of Metropolitan Council.
12. Business Subsidy Law. The Sub-Grantee must comply, if appropriate and applicable, with
any “business subsidy” requirements of Minnesota Statutes, Sections 116J.993 to 116J.995, that apply to
the Sub-Grantee’s expenditures or uses of the grant funds. The grant will be used for the creation of
affordable housing and subsidies for affordable housing are exempt from the Business Subsidy Law.
13. Expiration and Termination. This Agreement shall automatically expire upon the
expiration or termination of the Grant Agreement, or upon the satisfactory completion of all obligations
hereunder, whichever occurs first (the “Expiration Date”), except that the obligations contained in Section
3(g) and (h) hereof shall survive any such expiration. This Agreement may be terminated by the Grantee
for cause at any time upon fourteen (14) calendar days’ written notice to the Sub-Grantee. “For cause” shall
mean a material breach of this Agreement and any amendments to this Agreement. If this Agreement is
terminated prior to the Expiration Date, the Sub-Grantee shall receive payment on a pro rata basis for
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eligible Activities that have been completed prior to the termination. Termination of this Agreement does
not alter the authority of the Grantee or Metropolitan Council to recover grant funds on the basis of a later
audit or other review, and does not alter the Sub-Grantee’s obligation to return any grant funds due to the
Grantee or Metropolitan Council as a result of later audits or corrections. If the Grantee or Metropolitan
Council determines that the Sub-Grantee has failed to comply with the terms and conditions of this
Agreement, the Grant Agreement, or the applicable provisions of Metropolitan Livable Communities Act,
the Grantee may take any action to protect the interests of the Grantee or Metropolitan Council and may
refuse to disburse additional grant funds and may require the Sub-Grantee to return all or part of the grant
funds already disbursed.
14. Effect of Grant. Issuance of this grant neither implies any Grantee or Metropolitan Council
responsibility for the condition of the Property nor imposes any obligation on the Grantee or Metropolitan
Council to participate in any activities on the Property. By awarding grant funds to the Sub-Grantee for the
Activities and executing this Agreement, the Grantee and Metropolitan Council assume no responsibility
for (a) any damage to persons, property, or the environment caused by implementation of the Activities; or
(b) determining whether intended uses of the Property identified in the grant application or potential future
uses of the Property, including any residential uses, are suitable for the Property.
14
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands to this Sub-Grant
Agreement as of the date and year first written above.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF GOLDEN VALLEY,
MINNESOTA
By
Maurice Harris, Chair
By
Noah Schuchman, Director
15
Execution page of the Sub-Grantee to the Sub-Grant Agreement, dated the date and year first written above.
GMHC HOLDING LLC
By
Its Vice President
By
Its Assistant Secretary
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EXHIBIT A
FIRST AMENDMENT
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18
19
20
21
22
23
24
25
26
27
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29
30
31
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EXHIBIT B
LEGAL DESCRIPTION OF THE PROPERTY
The North 158.8 feet of Lot 4, Block 3, “Tralee”, according to the recorded plat thereof,
Hennepin County, Minnesota.
Being Registered land as evidenced by Certificate of Title No. 1582934.
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SUB-GRANT AGREEMENT
(Community Homeownership Impact Fund—Single Family)
Impact Fund Award ID: 12-2023-31
THIS SUB-GRANT AGREEMENT (the “Agreement”) is made as of this 2nd day of
September, 2025 (the “Effective Date”), between the HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, MINNESOTA, a public body corporate
and politic of the State of Minnesota (the “Grantee”), and GMHC Holding LLC, a Minnesota nonprofit
cooperative (the “Sub-Grantee”).
WHEREAS, the Grantee and the Minnesota Housing Finance Agency (“MHFA”) entered into the
Community Homeownership Impact Fund Grant Contract Agreement, effective as of May 1, 2024, expiring
April 30, 2027, the “Grant Agreement”), a copy of which is attached hereto as EXHIBIT A and is
incorporated herein and made part of this Agreement; and
WHEREAS, the Grant Agreement provides that MHFA is to grant to the Grantee a sum not to exceed
$405,000, to assist in the acquisition, construction, and/or rehabilitation of owner-occupied single family
residential properties through Grantee’s Home Ownership Program for Equity (the “Program”); and
WHEREAS, Grantee has agreed to grant Sub-Grantee a sum not to exceed $135,000, which shall be used
to reimburse the Sub-Grantee for the development of a new homeownership housing unit to be sold to
households with incomes of no more than sixty to eighty percent (60% - 80%) of the area median income
(the “Project”) on the property legally described in EXHIBIT B attached hereto (the “Property”); and
WHEREAS, the Grantee and the Sub-Grantee have agreed for the Sub-Grantee to assume certain duties
and responsibilities of the Grantee under the Grant Agreement in consideration of receiving funds provided
for in the Grant Agreement and subject to the terms, conditions, and limitations set forth therein.
NOW, THEREFORE, in consideration of the premises and the mutual promises set forth herein, the
parties hereto covenant and agree as follows:
1. Grant Funds. The Grantee will distribute funds received under the Grant Agreement upon
the continuing compliance by the Sub-Grantee with its obligations hereunder. The Sub-Grantee shall use
the grant proceeds which are being provided by the Grantee under this Agreement solely for the Project, as
further specified within Section 2 of the Agreement (Project Summary). The grant proceeds shall not be
used for any ineligible uses as described in the Grant Agreement. The Sub-Grantee understands and
agrees that any reduction or termination of Community Homeownership Impact Fund Program funds made
available to MHFA from the Minnesota Legislature may result in a like reduction in the amount of the grant
proceeds that will be made available to the Sub-Grantee pursuant to this Agreement. Pursuant to
paragraph 8 of the Grant Agreement, the parties agree that none of the grant funds may be
made available to any subgrantee or subrecipient without the prior written consent of MHFA.
2. Grantee’s Obligations. The Grantee will be responsible for reimbursing the Sub-Grantee
for the costs of the Project (the “Activities”) up to a total amount of $135,000, which will be funded from
the grant proceeds received from MHFA. The Grantee will disburse funds to the Sub-Grantee pursuant to
this Agreement and the Grant Agreement, based upon reimbursement requests submitted by the Sub-
Grantee and reviewed and approved by the Grantee and MHFA. Reimbursement requests must be
accompanied by all information and documentation needed by the Grantee pursuant to paragraph 4.2 of the
Grant Agreement to submit a payment request form to MHFA. In order to ensure that all funds are drawn
prior to the expiration of the grant, all payment requests must be received by the Grantee at least 60 days
prior to the grant-term expiration date of April 30, 2027 unless extended by the Grantee in writing, otherwise
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any unrequested funds will be lost. The Grantee shall have no obligation to disburse any of these funds if,
at the time of disbursement, the Sub-Grantee is in default under any of the terms of this Agreement.
3. Sub-Grantee’s Obligations. The Sub-Grantee shall perform and satisfy certain obligations
of the Grantee under the Grant Agreement. Specifically, but without limiting the foregoing, the Sub-Grantee
must perform all the following with respect to the Activities and in satisfaction of the Grant Agreement
obligations:
a. The Sub-Grantee will be responsible for performing all of the activities on the Property set
forth in the Project Summary described in Section 2 of the Agreement (the “Activities”). All
Activities provided by the Sub-Grantee under this Agreement must be performed to the
reasonable satisfaction of the Grantee and MHFA and in accordance with all applicable
federal, state, and local laws, ordinances, rules, and regulations. The Sub-Grantee will not
receive payment for Activities found by the Grantee or MHFA to be reasonably
unsatisfactory or performed in violation of federal, state, or local law.
b. The Sub-Grantee will comply with all requirements and conditions of the Grant Agreement
applicable to the Activities that, by their nature, must be performed by Sub-Grantee rather
than Grantee and that are conditions of award of funds under the Grant Agreement.
c. The Sub-Grantee must take all other actions as are needed to ensure compliance with the
Grant Agreement and provide such information and assistance to the Grantee as may
reasonably be needed to ensure the Grantee can comply with the requirements of the Grant
Agreement that, by their nature, must be performed by the Grantee rather than the
Sub-Grantee.
d. In order to permit the Grantee and MHFA to monitor compliance with this Agreement, the
Sub-Grantee shall permit any person that the Grantee or MHFA designates, at the expense
of the Grantee or MHFA, to visit and inspect the Property, corporate books and financial
records and documents of the Sub-Grantee as relevant to receipt and expenditure of the
grant funds or this Agreement and to discuss its affairs, finances, and accounts (as they
relate to receipt and expenditure of the grant funds or this Agreement) with the principal
officers of Sub-Grantee, all at such reasonable times and as often as the Grantee or MHFA
may reasonably request during the term of this Agreement and for a period of six (6) years
after the termination of this Agreement.
e. The Sub-Grantee will not discriminate against any employee or applicant for employment
because of race, color, creed, religion, national origin, sex, marital status, status with regard
to public assistance, membership or activity in a local civil rights commission, disability,
sexual orientation or age and will take affirmative action to insure applicants and
employees are treated equally with respect to all aspects of employment, rates of pay and
other forms of compensation, and selection for training.
f. If the Sub-Grantee earns any interest or other income from the grant funds received from
the Grantee under this Agreement, the Sub-Grantee must use the interest earnings or
income only for the purposes of implementing the Activities.
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4. Ownership and Condition of the Property. The Sub-Grantee makes the following
representations:
a. It is the owner of the Property in fee simple.
b. To the best of the Sub-Grantee’s knowledge, the Property does not violate any applicable
federal, state, or local law, ordinance, or regulation.
c. There are no actions, suits, or proceedings pending, at law or in equity, or to the knowledge
of the Sub-Grantee threatened, against or affecting it or the Property, and the Sub-Grantee
is not in default with respect to any order, writ, injunction, decree, or demand of any court
or any governmental authority.
d. The consummation of this transaction and performance of the Sub-Grantee’s obligations
under this Agreement will not result in any breach of, or constitute a default under any
mortgage, deed of trust, lease, bank loan, or credit agreement, partnership agreement, or
other instrument which affects the Sub-Grantee, or to which the Sub-Grantee is a party.
e. It has not used the Property in connection with the generation, disposal, storage, treatment,
or transportation of hazardous substances and that the Property will not be so used during
the term of this Agreement by the Sub-Grantee, its agents, tenants, or assigns, except in
compliance with a Minnesota Pollution Control Agency (“MPCA”) approved
Development Response Action Plan.
f. It has obtained or caused its contractors and/or affiliates to obtain, all the insurance
described in Section 5 hereof and such policies of insurance are in full force and effect as
of the date of this Agreement.
g. The individual(s) signing this Agreement on behalf of the Sub-Grantee are duly authorized
to execute this Agreement on the Sub-Grantee’s behalf.
5. Affirmative Covenants. The Sub-Grantee hereby covenants and agrees that it shall:
a. Insurance.
i. Purchase and maintain such insurance, or cause its contractors and/or affiliates to
purchase and maintain such insurance, as will protect it from claims which may
arise out of, or result from, the Activities completed under this Agreement, whether
such operations be by the Sub-Grantee or by any subcontractor, or by anyone
directly employed by them, or by anyone for whose acts any one of them may be
liable.
ii. For the term of this Agreement and in connection with the Activities completed
pursuant to this Agreement, secure the following coverages and comply with all
provisions noted, or cause its contractors and/or affiliates to secure, the following
coverages and comply with all provisions noted. Upon written request by Grantee,
during the term of this Agreement, the Sub-Grantee will provide certificates of
insurance evidencing current coverages.
Commercial General Liability Insurance:
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$1,500,000 per occurrence
$2,000,000 general aggregate
$2,000,000 products/completed operations total limit
$1,000,000 personal injury and advertising injury
This policy shall be written on an occurrence basis using ISO form CG 00
01 or its equivalent. The Sub-Grantee represents that there is no per claim
limit under the Sub-Grantee’s occurrence-based policy. Coverage shall
include contractual liability and XCU. Notwithstanding the foregoing, the
Sub-Grantee will obtain, or cause its contractor and/or affiliates to obtain
completed operations coverage for three (3) years after substantial
completion of the Activities. Upon written request by the Grantee, the
Sub-Grantee is required to add, or to cause its contractors and/or affiliates
to add, the Grantee and any specified officials, employees, volunteers, and
agents as Additional Insureds to the Commercial General Liability and
Umbrella policies fulfilling the requirements of this Agreement with
respect to liabilities caused in whole or in part by the Sub-Grantee’s acts
or omissions, or the acts or omissions of those acting on the Sub-Grantee’s
behalf in the performance of the ongoing operations, services, and
completed operations of the Sub-Grantee under this Agreement. The
coverage provides shall be primary and non-contributory.
Automobile Insurance:
Coverage shall be provided for hired, non-owned, and owned automobiles.
Minimum limits of $1,000,000 combined single limit.
Workers’ Compensation and Employers’ Liability:
Workers’ Compensation as required by Minnesota statutes.
Employers’ Liability Limits: $500,000/$500,000/$500,000
Professional Liability/Errors and Omissions Coverage (if applicable):
Per Claim Limit: $500,000
Per Occurrence Limit: $1,500,000
Aggregate Limit: $2,000,000
This policy is to be written as acceptable to the Grantee. Certificates of
Insurance must indicate if the policy is issued on a claims-made or
occurrence basis. If coverage is carried on a claims-made basis, then (1)
the retroactive date shall be noted on the certificate and shall be prior to or
the day of the inception of this Agreement; and (2) evidence of coverage
shall be provided for three (3) years beyond expiration of this Agreement.
iii. The Sub-Grantee shall provide the Grantee with prior notice of any lapse in the
insurance required under this Agreement including cancellation, and/or non-
renewal or material change in coverage.
iv. The above sub-paragraphs establish minimum insurance requirements, and it is the
sole responsibility of the Sub-Grantee to purchase and maintain, or cause its
contractors and/or affiliates to purchase and maintain, additional coverages as the
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Sub-Grantee may deem necessary in connection with this Agreement.
v. The Certificate of Insurance must demonstrate that the policy is issued pursuant to
these requirements. Copies of insurance policies shall be submitted to the Grantee
upon written request.
vi. Certificates shall specifically indicate if the policy is written with an admitted or
non-admitted carrier. Best’s Rating for the insurer shall be noted on the certificate
and shall not be less than an A-.
b. To the fullest extent permitted by law, the Sub-Grantee shall defend, indemnify, and hold
harmless the Grantee and MHFA and their officials, employees, and agents from and
against all claims, damages, losses and expenses, including but not limited to attorneys’
fees, arising out of or resulting from the conduct or implementation of the Activities funded
by this Agreement, except to the extent the claims, damages, losses, and expenses arise
from the own negligence of the Grantee or MHFA. Claims included in this indemnification
include without limitation any claims asserted pursuant to the Minnesota Environmental
Response and Liability Act (MERLA), Minnesota Statutes, Chapter 115B (CERCLA), as
amended, United States Code Title 42, Section 9601 et seq., and the federal Resource
Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code Title
42, Sections 6901 et seq. This obligation shall not be construed to negate, abridge, or
otherwise reduce any other right or obligation of indemnity which otherwise would survive
the expiration or termination of this Agreement. This indemnification shall not be
construed as a waiver on the part of either the Grantee or MHFA of any immunities or
limits on liability provided by Minnesota Statutes Chapter 466 or other applicable state or
federal law.
c. Promptly pay and discharge all taxes, assessments, and other governmental charges
imposed upon it or upon its income and profits or upon the Property, and any and all claims
for labor, material or supplies or rental charges or charges of any other kind which, if
unpaid, might by law become a lien or charge upon the Property, provided, however, that
the Sub-Grantee shall not be required to pay any such tax, assessment, charge or claim, if
the Sub-Grantee is contesting the validity of such matters, in good faith, through
appropriate proceedings, and the Sub-Grantee sets aside on its books adequate reserves for
the payment of such claims.
d. Maintain the Property in good repair, working order, and condition and from time to time,
make or cause to be made all necessary renewals, replacements, and repairs so that at all
times the Sub-Grantee’s business can be conducted efficiently.
e. Establish and maintain accurate and complete accounts and records relating to the receipt
and expenditure of all grant funds received from the Grantee. Notwithstanding the
expiration and termination provisions of this Agreement, such accounts and records shall
be kept and maintained by the Sub-Grantee for a period of six (6) years following the
completion of the Activities for six (6) years following the expenditure of the grant funds,
whichever occurs earlier. Accounting methods shall be in accordance with generally
accepted accounting principles.
f. The accounts and records of the Sub-Grantee shall be audited in the same manner as all
other accounts and records of the Sub-Grantee are audited and may be audited or inspected
on the Sub-Grantee’s premises or otherwise by individuals or organizations designated and
authorized by the Grantee or MHFA at any time, following reasonable notification to the
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Sub-Grantee, for a period of six (6) years following the completion of the Activities or six
(6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant
to Minnesota Statutes, Section 16C.05, subdivision 5, the books, records, documents, and
accounting procedures and practices of the Sub-Grantee that are relevant to this Agreement
are subject to examination by the Grantee and MHFA and either the Legislative Auditor or
the State Auditor, as appropriate, for a minimum of six (6) years.
g. The Sub-Grantee shall include in any contract or subcontract for the Activities appropriate
provisions to ensure contractor or subcontractor compliance with all applicable state and
federal laws and this Agreement, including, but not limited to, federal and state laws
relating to stormwater discharges (i.e., Code of Federal Regulations, Title 40, parts 122 and
123 and Metropolitan Council’s 2040 Water Resources Policy Plan and the local water
management plan). Along with such provisions, the Sub-Grantee shall require that
contractors and subcontractors performing activities covered by this grant obtain all
required permits, licenses, and certifications, and comply with all applicable state and
federal Occupational Safety and Health Act regulations.
h. Construct the Project to meet all applicable local codes, rehabilitation standards,
ordinances, and zoning regulations. The Grantee and MHFA assume no responsibility for
obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or
approvals necessary to perform or complete the Activities. The Sub-Grantee and its
contractors, if any, must comply with all applicable licensing, permitting, bonding,
authorization, and approval requirements of federal, state, and local governmental and
regulatory agencies, including conservation districts.
i. Acknowledge the financial assistance provided by MHFA in promotional materials, press
releases, reports and all other publications identified in paragraph 13 of the Grant
Agreement relating to the Activities which are funded in whole or in part with the grant
funds. The acknowledgment must identify MHFA as the sponsoring agency and must not
be released without prior written approval from MHFA’s Authorized Representative.
j. Provide the Grantee with all information that is needed by the Grantee to submit the
required written progress reports and annual written reports required by the Grant
Agreement.
6. Negative Covenants. The Sub-Grantee covenants and agrees that for the term of this
Agreement, it will not:
a. Merge or consolidate with or into any other entity.
b. Default upon any contract or fail to pay any contract or fail to pay any of its debts or
obligations as the same mature, subject to the applicable cure periods set forth in such a
contract.
c. Generate, dispose of, use, store, treat, or transport hazardous waste substances on, in, over
or across the Property or allow the Sub-Grantee’s tenants to do so; provided, however, that
Sub-Grantee may treat or remediate hazardous substances pursuant to an MPCA-approved
Development Response Action Plan and the Sub-Grantee and its tenants may use, store,
and transport hazardous substances on, over or across the Property as is reasonably
necessary to the use of the Property as residential, commercial, or office property provided
such use, storage, and transportation complies at all times with all applicable federal, state,
and local statutes, codes, regulations, and ordinances.
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7. Miscellaneous.
a. All representations and warranties contained herein or made in writing by or on behalf of
the Sub-Grantee in connection with the transactions contemplated hereby shall be made as
of the Effective Date but survive the execution and delivery of this Agreement and the
advances hereunder. All statements contained in any certificate or other instrument
delivered by or on behalf of the Sub-Grantee pursuant thereto or in connection with the
transactions contemplated hereby shall constitute representations and warranties by the
Sub-Grantee.
b. This Agreement shall be binding upon and inure to the benefit of the successors and assigns
of the parties.
c. No amendment, change, waiver, or modification of this Agreement shall be valid unless it
is in a written document which Sub-Grantee, and the Grantee sign, and the Grantee’s
waiver of any breach or default of any of the Sub-Grantee’s obligations, agreements, or
covenants under this Agreement shall not be deemed to be a waiver of any subsequent
breach of this Agreement, or any other obligation, agreement, or covenant. The Grantee’s
forbearance in pursuing or enforcing a remedy for the Sub-Grantee’s breach of any of the
obligations set forth in this Agreement shall not be deemed a waiver of the Grantee’s rights
and remedies with respect to such breach.
d. This Agreement may be executed simultaneously in two (2) or more counterparts, each of
which shall be an original, but all of which shall constitute one (1) agreement.
e. This Agreement supersedes and has merged into all prior oral agreements between the
Grantee and the Sub-Grantee regarding the Activities.
f. Any notices required or contemplated hereunder shall be effective upon the placing thereof
in the United States Mail, certified mail, return receipt requested, postage prepaid, and
addressed as follows:
To the Grantee: Housing and Redevelopment Authority
in and for the City of Golden Valley, Minnesota
7800 Golden Valley Road
Golden Valley, MN 55427
Attn: Director
To the Sub-Grantee: Greater Metropolitan Housing Corporation
970 Raymond Avenue, #201
Saint Paul, MN 55114
Attn: President
g. This Agreement shall be interpreted and construed according to the laws of the State of
Minnesota. All litigation regarding this Agreement shall be venued in the appropriate state
or federal district court in Hennepin County, Minnesota.
h. Neither party may assign or transfer its rights and obligations under this Agreement without
the prior consent of the other party, provided that such party’s assignee or transferee
assumes all obligations under this Agreement and the other party consents to the
assignment in writing. Said agreement to assignment shall not unreasonably be withheld
by the consenting party.
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8. Relationship. It is agreed that nothing contained in this Agreement is intended or should
be construed as creating the relationship of agents, partners, joint venturers, or associates between the
parties hereto or as constituting the Sub-Grantee as the employee of the Grantee for any purpose or in any
manner whatsoever. The Sub-Grantee is an independent contractor and neither it, nor its employees, agents,
or representatives are employees of the Grantee.
9. MGDPA. All data collected, created, received, maintained or disseminated for any purpose
in the course of the Sub-Grantee’s performance of this Agreement is governed by the Minnesota
Government Data Practices Act, Minnesota Statutes Chapter 13, and any other applicable state statutes, any
state rules adopted to implement the Act and statutes, as well as federal statutes and regulations on data
privacy.
10. Copyrights. The Sub-Grantee certifies that it (a) is the owner of any renderings, images,
perspectives, sections, diagrams, photographs or other copyrightable materials (collectively “copyrightable
materials”) that are in the grant application or submitted to the Grantee as part of the grant application
process or that the Sub-Grantee is fully authorized to grant permissions regarding the copyrightable
materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The
Sub-Grantee agrees that the Grantee and MHFA have a non-exclusive royalty-free license and all necessary
permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including
but not limited to press releases, presentations, reports and on the Internet. The Sub-Grantee also
agrees that it will not hold the Grantee or MHFA responsible for the unauthorized use of the copyrightable
materials by third parties.
11. Restrictions on Loans or Grants by Sub-Grantee. The Sub-Grantee shall not use the grant
proceeds for loans or grants to any subrecipient at any tier unless the Sub-Grantee obtains the prior written
consent of MHFA.
12. Business Subsidy Law. The Sub-Grantee must comply, if appropriate and applicable, with
any “business subsidy” requirements of Minnesota Statutes, Sections 116J.993 to 116J.995, that apply to
the Sub-Grantee’s expenditures or uses of the grant funds. The grant will be used for the creation of
affordable housing and subsidies for affordable housing are exempt from the Business Subsidy Law.
13. Expiration and Termination. This Agreement shall automatically expire upon the
expiration or termination of the Grant Agreement, or upon the satisfactory completion of all obligations
hereunder, whichever occurs first (the “Expiration Date”). This Agreement may be terminated by the
Grantee for cause at any time upon thirty (30) calendar days’ written notice to the Sub-Grantee. “For cause”
shall mean a material breach of this Agreement and any amendments to this Agreement. If this Agreement
is terminated prior to the Expiration Date, the Sub-Grantee shall receive payment on a pro rata basis for
eligible Activities that have been completed prior to the termination. Termination of this Agreement does
not alter the authority of the Grantee or MHFA to recover grant funds on the basis of a later audit or other
review, and does not alter the Sub-Grantee’s obligation to return any grant funds due to the Grantee or
MHFA as a result of later audits or corrections. If the Grantee or MHFA determines that the Sub-Grantee
has failed to comply with the terms and conditions of this Agreement, the Grant Agreement, or the applicable
provisions of the Community Homeownership Impact Fund Program, the Grantee may take any action to
protect the interests of the Grantee or MHFA and may refuse to disburse additional grant funds and may
require the Sub-Grantee to return all or part of the grant funds already disbursed.
14. Effect of Grant. Issuance of this grant neither implies any Grantee or MHFA responsibility for
the condition of the Property nor imposes any obligation on the Grantee or MHFA to participate in any
activities on the Property. By awarding grant funds to the Sub-Grantee for the Activities and executing this
Agreement, the Grantee and MHFA assume no responsibility for (a) any damage to persons, property, or
the environment caused by implementation of the Activities; or
(b) determining whether intended uses of the Property identified in the grant application or potential future
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uses of the Property, including any residential uses, are suitable for the Property.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands to this Sub-Grant
Agreement as of the date and year first written above.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF GOLDEN VALLEY,
MINNESOTA
By
Its Chair
By
Its Director
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Execution page of the Sub-Grantee to the Sub-Grant Agreement, dated the date and year first written above.
GMHC Holding LLC
By
Its Vice President
By
Its Assistant Secretary
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A-1
EXHIBIT A
GRANT AGREEMENT
45
46
47
48
49
50
51
52
53
54
55
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EXHIBIT B
LEGAL DESCRIPTION OF THE PROPERTY
The North 158.8 feet of Lot 4, Block 3, Tralee, according to the recorded plat thereof, Hennepin
County, Minnesota.
Being Registered land as is evidenced by Certificate of Title No. 1582934.
B-1
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EXECUTIVE SUMMARY
Community Development
763-512-2345 / 763-512-2344 (fax)
Golden Valley Housing and Redevelopment Authority Meeting
September 2, 2025
Agenda Item
3.C. Approve Contract for Development for 1131 Lilac Drive North with Magnolia Homes, LLC
Prepared By
Christine Costello, Housing & Economic Development Manager
Summary
In December 2021, City Council approved the Public Land Disposition Ordinance, that provides the City
Council the ability to identify and catalog real property owned by the City and the Housing and
Redevelopment Authority (HRA) that is no longer required for its original purpose and may be suitable
for the development of affordable housing. Per the Public Land Disposition Ordinance, affordable
housing needs and opportunities shall be considered before surplusing public lands for other purposes
that are non-essential to local government operation.
To date there are a number of actions that have taken place that have brought the Home Ownership
Program for Equity (HOPE) to fruition. Those events include:
March 2022 - HRA received and filed with the City a list of real property that is no longer
required for their original purpose and suitable for the development of affordable housing.
May 2022 - An information and engagement meeting with potential developers and other
stakeholders was held.
June 2022 - HRA approved HOPE Guidelines and Request for Qualifications (RFQ) was
advertised.
January 2023 - HOPE 2023-2024 RFQ was released and information session held for interested
developers.
February 2023 - Qualifications due from interested developers and the HRA approved the
qualified developers, which includes Twin Cities Habitat for Humanities, Greater Metropolitan
Housing Corporation (GMHC), and Magnolia Homes, LLC.
April - July 2025 -Planning staff completed land use due diligence and entitlements on all
HOPE sites, so that development could move forward.
Magnolia Homes, LLC (Magnolia Homes) was chosen as one of the qualified developers to build a
twinhome at 1131 Lilac Drive North. Magnolia Homes is a real estate development company focused
on providing attainable missing middle housing solutions. Magnolia Homes was established in 2017
and has developed an average of four units per year. Magnolia Homes homebuyers are 100%
Black/African American. The owner, J. Alex Frank serves as the managing director for Magnolia Homes
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and Magnolia Residential 3Properties, LLC, a real estate holding company operating in multiple states.
Mr. Frank has been a real estate investor for over 25 years. Mr. Frank is also a former Minnesota
Urban Land Institute (ULI) Real Estate Diversity Initiative (REDI) Program co-chairman – a program
focused on increasing the number of women and minority real estate developers in the Twin Cities. He
is a former board member for Greater Metropolitan Housing Corporation (GMHC).
Financial or Budget Considerations
The approvals of the qualified developers in February 2023 were made contingent on the access to
additional funds for development. Magnolia Homes will receive from Minnesota Housing Impact Fund,
a value gap subsidy of $49,000 per unit, for up to $98,000 total, since two owner-occupied units will
be constructed. For the Met Council's Local Housing Incentives Account Affordable Homeownership
Pilot Funds, Magnolia Homes will receive $316,000 in grant funds. All grant funds are contingent on
the developers meeting the requirements of the funding source.
Legal Considerations
The contract for development has been prepared and reviewed by the City Attorney.
Equity Considerations
The Home Ownership Program for Equity meets the City’s goals to preserve and promote economically
diverse housing options in our community by creating high quality housing in Golden Valley for
households with a variety of income levels, ages, and sizes. Dedicated publicly owned land for more
affordable housing for homeownership is a valuable resource to meet our affordable housing goals.
HOPE recognizes that systemic racism in housing occurs today — Black, Indigenous, and other
communities of color continue to face discrimination and lack of access to affordable housing and
home ownership. Given existing racial disparities in housing, providing both affordable rental and
homeownership opportunity is not only vital to providing all individuals and families with housing
choice, but also with access to stable housing that impacts their health, education, employment, and
ability to build wealth.
Recommended Action
Motion to approve the Contract for Development for 1131 Lilac Drive North with Magnolia Homes,
LLC.
Supporting Documents
Contract for Development for 11312 Lilac with Magnolia Homes
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CONTRACT FOR DEVELOPMENT
Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF GOLDEN VALLEY
and
MAGNOLIA HOMES, LLC
at
1131 LILAC DRIVE, GOLDEN VALLEY, MN
This Instrument Drafted by:
The Housing and Redevelopment Authority
in and for City of Golden Valley
7800 Golden Valley Road
Golden Valley, Minnesota 55427
Telephone: (763) 593-3968
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CONTRACT FOR DEVELOPMENT
THIS CONTRACT FOR DEVELOPMENT (this “Agreement”) is made and entered into
as of this 2nd day of September, 2025, by and between the Housing and Redevelopment Authority in
and for the City of Golden Valley, a body corporate and politic under the laws of the State of
Minnesota, having its principal office at: 7800 Golden Valley Road, Golden Valley, Minnesota 55427
(the “HRA”), and Magnolia Homes, LLC, a limited liability company under the laws of Minnesota,
having its principal office at 8868 Flesher Circle, Eden Prairie, Minnesota 55347 (the “Developer”).
WITNESSETH:
WHEREAS, the HRA has acquired the property located at 1131 Lilac Drive North, Golden
Valley, legally described on the attached Exhibit A (the “Property”) from the City of Golden Valley
(the “City”).
WHEREAS, the City of Golden Valley (the “City”) and the HRA have previously created
and established the Home Ownership Program for Equity (the “HOPE Program”) pursuant to the
authority granted in Minnesota Statutes Sections 469.001 through 469.047; and
WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the
Property which the HRA has determined will promote and carry out the objectives for which the
Property was purchased; will assist in carrying out the objectives of the HOPE Program; and will be
in the vital best interests of the City, and the health, safety and welfare of its residents and in accord
with the public purposes and provisions of the applicable state and local laws and requirements.
NOW, THEREFORE, in consideration of the mutual covenants and obligations of the HRA
and the Developer, each party does hereby represent, covenant, and agree with the other as follows:
ARTICLE I.
DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, the following terms have the meaning given
below unless the context clearly requires otherwise:
(a) City. The City of Golden Valley, Minnesota.
(b) Construction Plans. Collectively, the plans, drawings and related documents related
to the Improvements, which are listed on Exhibit B.
(c) Developer. Magnolia Homes, LLC.
(d) Development. The Property and the Improvements to be constructed thereon
according to the Construction Plans approved by the HRA.
(e) Event of Default. Event of Default has the meaning given such term in Section 8.1.
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(f) Holder. The term “holder” in reference to a Mortgage includes a lender, any insurer
or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or
deed of trust.
(g) HOPE Program. The Home Ownership Program for Equity which makes public land
available for the development of owner-occupied homes for affordable (60-80% Area Median
Income) and equitable homeownership opportunity in the City.
(h) Housing and Redevelopment Authorities Act (HRA Act). Minnesota Statutes
Sections 469.001 through 469.047.
(i) HRA. The Housing and Redevelopment Authority in and for the City of Golden
Valley, Minnesota.
(j) Improvements. Each and all of the structures and site improvements constructed or
renovated on the Property by the Developer, as specified in the Construction Plans approved by the
HRA.
(k) Mortgage. The term “mortgage” shall include the mortgages referenced in Article VI
of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the
Property of any part thereof, as security for a loan.
(l) Property. The real property legally described on the attached Exhibit A, having a
street address of 1131 Lilac Drive, Golden Valley.
(m) Qualified Buyer. A purchaser whose income does not exceed 60-80 percent of the
Area Median Income as defined by Minnesota Housing Finance Agency’s Community
Homeownership Impact Fund income limits for the 11 county Twin Cities Metro Area.
(n) Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire
or other casualty to the Improvements, natural disasters, litigation commenced by third parties which
results in delays or acts of any federal, state, or local government, except those contemplated by this
Agreement, which are beyond the control of the Developer.
Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of
this Agreement:
A. Legal Description of the Property
B. List of Construction Plan Documents
C. Form of Quit Claim Deed
D. Form of Certificate of Completion
Section 1.3 Rules of Interpretation.
(a) This Agreement shall be interpreted in accordance with and governed by the laws of
the State of Minnesota.
(b) The words “herein” and “hereof” and words of similar import, without reference to
any particular section or subdivision refer to this Agreement as a whole rather than any particular
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section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section or
subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted for
convenience and reference only and shall be disregarded in construing or interpreting any of its
provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1 By the Developer. The Developer makes the following representations and
warranties as the basis for undertakings on its part herein contained:
(a) The Developer has the legal authority and power to enter into this Agreement, and has
duly authorized the execution, delivery, and performance of this Agreement; and the individual(s)
who execute this Agreement on behalf of the Developer have the power and authority to bind the
Developer;
(b) The Developer has the necessary equity capital or will obtain commitments for
financing necessary for construction of the Improvements;
(c) The Developer will construct the Improvements in accordance with the terms of this
Agreement, the Construction Plans, and all local, state, and federal laws and regulations;
(d) The Developer will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state, and federal laws and
regulations which must be obtained or met before the Improvements may be constructed; and
(e) The plans for the Improvements have been or will be prepared by a qualified
draftsperson or architect.
Section 2.2 By the HRA. The HRA makes the following representations as the basis for the
undertaking on its part herein contained:
(a) The HRA is authorized by law to enter into this Agreement, to carry out its obligations
hereunder, and the individuals who execute this Agreement on behalf of the HRA have the power and
authority to bind the HRA; and
(b) The HRA will, in a timely manner, subject to all notification requirements, review and
act upon all submittals and applications of the Developer and will cooperate with the efforts of
Developer to secure the granting of any permit, license, or other approval required to allow the
construction of the Improvements; provided, however, that nothing contained in this subparagraph
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2.2 (b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA’s
discretion considering any submittal or application.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER
Section 3.1 Sale of Property to Developer. The HRA is the fee owner of the Property. The
HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property
from the HRA in an “as is” condition. The HRA agrees to convey the Property to the Developer by
Quit Claim Deed in the general form of Exhibit C. The purchase price for the Property will be $1.00.
Section 3.2 Title and Examination. As soon as reasonably possible after execution of this
Agreement by both parties,
(a) The HRA shall surrender copies of the certificate(s) of title and any owner’s title
insurance policy for the Property, if in HRA’s possession or control, to Developer or to Developer’s
designated title service provider; and
(b) The Developer shall obtain the title evidence determined necessary or desirable by
Developer or Developer’s lender, including but not limited to title searches, title examinations, a title
insurance commitment or an attorney’s title opinion, at Developer’s selection and cost, and provide a
copy to the HRA.
The Developer shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived. The
HRA shall have 90 days from the date of such objection to affect a cure; provided, however, that the
HRA shall have no obligation to cure any objections and may inform the Developer of such. The
Developer may then elect to close notwithstanding the uncured objections or declare this Agreement
null and void, and the parties will thereby be released from any further obligation hereunder.
Section 3.3 Well Disclosure. The HRA does not know of any wells on the Property.
Section 3.4 Closing. Closing on the Property will take place on or before November 17,
2025, or such other date as may be agreed to by the parties in writing. At closing, the Developer will
provide the HRA with the purchase price of the Property. If closing has not occurred by November
17, 2025, either party may terminate this Agreement.
Section 3.5. Closing Costs. The Developer will pay: (a) the closing fees charged by its title
insurance company or other closing agent, if any, utilized to close the transaction for Developer;
and (b) the recording fees to record this Agreement and the deed transferring title to the Developer.
The HRA will pay any transfer taxes, and any fees and charges related to the filing of any instrument
required to make title marketable. Each party shall pay its own attorney fees.
Section 3.6. Sewer and Water. The HRA warrants that City water is available at the lot line.
City sewer service is available but the pipe and service stub will need to be replaced or rehabilitated.
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Section 3.7. ISTS Disclosure and Removal. The HRA is not aware of any individual sewage
treatment system on the Property. The Developer is responsible for all costs of removing any
individual sewage treatment system that may be discovered on the Property.
Section 3.8. Taxes and Special Assessments. Real estate taxes and installments of special
assessments will be prorated between the HRA and the Developer as of the date of closing.
Section 3.9 Soil Conditions and Hazardous Wastes. The HRA conducted a Phase I environmental
assessment of the Property. The HRA will provide the Developer with a copy of the Phase I
environmental assessment no later than 10 business days after execution of this Agreement by both
parties. The Developer acknowledges that the HRA makes no representations or warranties as to the
conditions of the soils on the Property, its fitness for construction of the Improvements or any other
purpose for which the Developer may make use of the Property, or regarding the presence of
hazardous wastes, pollution, or contamination on the Property. The HRA will allow reasonable access
to the Property for the Developer to conduct such inspections and tests regarding soil conditions and
hazardous wastes as the Developer may desire. Said inspections and tests shall be performed at the
Developer’s expense. The Developer shall provide the HRA with copies of any reports received.
Permission to enter the Property to conduct such inspections and tests must be given in writing under
the terms and conditions established by the HRA.
Section 3.10 Survey. The HRA will allow reasonable access to the Property for the
Developer to conduct a survey, if desired by the Developer. Said survey shall be performed at the
Developer’s expense. The Developer shall provide the HRA with a copy of any survey performed.
Permission to enter the Property to conduct the survey must be given in writing under the terms and
conditions established by the HRA.
Section 3.11 Lease to Qualified Buyer; Sale to Community Land Trust; Covenant on
Use. The Developer agrees to lease the Improvements via a ground lease to a Qualified Buyer within
180 days of issuance of a Certificate of Occupancy or after that time as agreed upon by the parties.
The Developer agrees to convey the Property to a community land trust that secures the long-term
affordability of the Property for 99 years. Prior to agreeing to a ground lease of the Improvements
to a Qualified Buyer or conveyance of the Property to a community land trust, the Developer shall
provide the HRA with sufficient evidence that the potential lessee is a Qualified Buyer and the
community land trust is a land trust that secures the long-term affordability of the Property for 99
years. In addition, the Developer must obtain the HRA’s prior approval of the terms and conditions
of its purchase agreement with the community land trust, and the purchase agreement terms and
conditions must be consistent with this Agreement. This Agreement constitutes a covenant on the
part of the Developer, its successors and assigns, to develop the Property and Improvements for
affordable owner-occupied, multi-family (twin home) residential purposes as permitted by the HRA.
ARTICLE IV.
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Improvements. The Developer shall construct the
Improvements on the Property at the Developer’s cost in accordance with the Construction Plans, and
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shall maintain, preserve, and keep the Improvements in good repair and condition until sale of the
Property to a community land trust.
Section 4.2. Building Plans. The Developer agrees that the City of Golden Valley Building
Official may withhold issuance of a building permit for the Improvements unless the Construction
Plans are in conformity with this Agreement, and all local, state, and federal regulations. The HRA
staff shall, within 25 days of receipt of Construction Plans and an application for a building permit,
review such Construction Plans to determine whether the foregoing requirements have been met. If
the HRA staff determines such Construction Plans to be deficient, it shall notify the Developer in
writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit
by the City with the approval of the HRA staff shall be a conclusive determination that the
Construction Plans have been approved and shall satisfy the provisions of this Section 4.2.
Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the
Improvements shall begin within 14 days of Closing. Construction of the foundation of the
Improvements shall be completed within 12 months of the date of commencement of construction.
All of the Improvements shall be completed within 18 months of the date of commencement of
construction. All construction shall be in conformity with the approved Construction Plans.
Periodically during construction, the Developer shall make reports in such detail as may reasonably
be requested by the HRA concerning the actual progress of construction. If at any time prior to
completion of construction the HRA has cause to believe that the Developer will be unable to
complete construction of the Improvements in the time permitted by this Section 4.3, it may notify
the Developer and demand assurances from the Developer regarding the Developer’s construction
schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to
be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies
specified in Section 8.2 of this Agreement.
Section 4.4 Certificate of Completion. After notification by the Developer of completion
of construction of the Improvements, the HRA shall inspect the construction to determine whether
the Improvements have been completed in accordance with the Construction Plans and the terms of
this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied
with the construction and all other HRA requirements have been met, the HRA shall furnish the
Developer with a Certificate of Completion in the form attached hereto as Exhibit D. Such certification
by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and
covenants in this Agreement with respect to the obligation of the Developer to construct the
Improvements.
The certification provided for in this Section 4.4 shall be in recordable form. If the HRA shall
refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA
shall within 15 days of such notification provide the Developer with a written statement, indicating
in adequate detail in what respects the Developer has failed to complete the Improvements in
accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the
Developer to take or perform in order to obtain such certification.
Section 4.5 Failure to Construct. In the event that construction of the Improvements is not
completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have
occurred and the HRA may proceed with its remedies under Section 8.2.
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ARTICLE V.
INSURANCE
Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided and
maintained at all times during the process of constructing the Improvements and, from time to time
at the request of the HRA, furnish the HRA with proof of payment of premiums on:
(a) Builder’s risk insurance, written on the so-called “Builder’s Risk -- Completed Value
Basis,” in an amount equal to 100% of the insurable value of the Improvements at the date of
completion, and with coverage available in non-reporting form on the so-called “all risk” form of
policy;
(b) Comprehensive general liability insurance (including operations, contingent liability,
operations of subcontractors, completed operations and contractual liability insurance) together with
an Owner’s Contractor’s Policy with limits against bodily injury and property damage of not less than
$1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability
policy may be used); and
(c) Worker’s Compensation Insurance as required by Minnesota Statutes, section 176.181.
The policies of insurance required pursuant to subparagraphs (a) and (b) above shall be in
form and content satisfactory to the HRA and shall be placed with financially sound and reputable
insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to
clause (a) above shall contain an agreement of the insurer to give not less than 30 days’ advance notice
to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder.
ARTICLE VI.
FINANCING
Section 6.1 Financing. Within 20 days of the date of execution of this Agreement, the
Developer shall submit to the HRA evidence of financing for the Improvements in compliance with
the provisions of Section 2.1 (b) of this Agreement. If the HRA staff finds that the financing is
adequate in amount to provide for the construction of the Improvements, the HRA staff shall notify
the Developer of its approval.
If the HRA staff rejects the evidence of financing as inadequate, the Developer shall have 30
days or such additional period of time as the Developer may reasonably require from the date of such
notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to submit
such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this
Agreement and both parties shall be released from any further obligation or liability hereunder, except
for the HRA’s remedies pursuant to Sections 8.2 and 9.8 of this Agreement.
In the event Developer is receiving grant funding or subsidy for the Improvements from the
City, the HRA, or any other source, Developer shall enter into any necessary agreement(s), in a form
approved by the HRA, prior to or at Closing. Developer’s failure to execute any such agreement(s)
shall constitute a material breach of this Agreement.
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Closing shall not take place until the Developer has provided the HRA with acceptable
evidence of financing for construction of the Improvements and entered into any additional
agreements required by the City or HRA related to any grant or subsidy funds.
Section 6.2 Limitation Upon Encumbrance of Property. Prior to the issuance of the
Certificate of Completion, neither the Developer nor any successor in interest to the Property or any
part thereof shall engage in any financing or any other transaction creating any Mortgage or other
encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer
any encumbrance of lien to be made on or attached to the Property other than the liens or
encumbrances attached for the purposes of obtaining funds to the extent necessary for making the
Improvements without the prior written approval of the HRA. The HRA shall not approve any
Mortgage which does not contain terms which conform to the terms of this Article VI and Section 8.2
of this Agreement.
Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of
the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to
modify this Agreement in the manner and to the extent it deems reasonable, upon request by the
financial institution and the Developer.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1 Representation as to Development. The Developer represents and agrees that
its undertakings pursuant to the Agreement, are for the purpose of development of the Property and
not for speculation in land holding. The Developer further recognizes that, in view of the importance
of the Development to the general welfare of the City and the substantial financing and other public
aids that have been made available by the HRA for the purpose of making the development of the
Property possible, the qualification and identity of the Developer are of particular concern to the
HRA. The Developer further recognizes that it is because of such qualifications and identity that the
HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations
and undertakings of the Developer for the faithful performance of all undertakings and covenants
agreed by the Developer to be performed.
Section 7.2 Prohibition Against Transfer of Property and Assignment of Agreement. For
the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that prior to
the issuance of the Certificate of Completion by the HRA:
(a) Except only by way of security for, and only for the purpose of obtaining financing
necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to
perform its obligations with respect to the Development under this Agreement, and any other purpose
authorized by this Agreement, the Developer, except as so authorized, has not made or created, and
that it will not make or create, or suffer to be made or created, any total or partial sale, assignment,
conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest
therein, or any contract or agreement to do any of the same, without the prior written approval of the
HRA; and
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(b) The HRA shall be entitled to require, except as otherwise provided in this Agreement,
as conditions to any such approval under this Section 7.2 that:
(i) Any proposed transferee shall have the qualifications and financial responsibility, as
determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this
Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such
obligations to the extent that they relate to such part,
(ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form
recordable among the land records, shall for itself and its successor and assigns, and
specifically for the benefit of the HRA, have expressly assumed all of the obligations of the
Developer under this Agreement and agreed to be subject to such obligations, restrictions and
conditions or, in the event the transfer is of, or relates to part of the Property, such obligations,
conditions, and restrictions to the extent that they relate to such part; provided, that the effect
that any transferee of, or any other successor in interest whatsoever to, the Property or any
part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so,
shall not, unless and only to the extent otherwise specifically provided in the Agreement or
agreed to in writing by the HRA, relieve or except such transferee or successor from such
obligations, conditions, or restrictions, or deprive or limit the HRA of or with respect to any
rights or remedies or controls with respect to the Property of the construction of the
Improvements; it being the intent of this Section 7.2, together with other provisions of this
Agreement, that to the fullest extent permitted by law and equity and excepting only in the
manner and to the extent specifically provided otherwise in the Agreement no transfer of, or
change with respect to, ownership in the Property or any part thereof, or any interest therein,
however consummated or occurring, whether voluntary or involuntary, shall operate, legally
or practically, to deprive or limit the HRA, or any rights or remedies or controls provided in
or resulting from this Agreement with respect to the Property and the construction of the
Improvements that the HRA would have had, had there been no such transfer or change; and
(iii) There shall be submitted to the HRA for review all instruments and other legal documents
involved in effecting transfers described herein, and if approved by the HRA, its approval
shall be indicated to the Developer in writing.
In the absence of specific written agreement by the HRA to the contrary, no such transfer or
approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations
with respect thereto. The lease of the Improvements to a Qualified Buyer or the sale of the Property
to a community land trust shall not be deemed to be a transfer within the meaning of this Section 7.2.
Section 7.3 Approvals. Any approval required to be given by the HRA under this Article
VIII may be denied only in the event that the HRA reasonably determines that the ability of the
Developer to perform its obligations under this Agreement will be materially impaired by the action
for which approval is sought.
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ARTICLE VIII.
EVENTS OF DEFAULT
Section 8.1 Events of Default Defined. The following shall be deemed Events of Default
under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the
context otherwise provides, any one or more of the following events:
(a) Failure by the Developer to pay when due the payments required to be paid or secured
under any provision of this Agreement;
(b) Subject to Section 9.7, failure by the Developer to complete the Improvements within 365
days of the date of commencement of construction, absent any Unavoidable Delay;
(c) Failure by the Developer to observe and substantially perform any covenant, condition,
obligation, or agreement on its part to be observed or performed hereunder, including the time for
such performance;
(d) Failure by the Developer to close with respect to the lease of the Improvements with a
Qualified Buyer and the sale of the Property to a community land trust within 180 days of completion
or after that time as agreed upon by the parties.
(e) If the Developer shall admit in writing its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its
creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial
part of the Property;
(f) If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt,
or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of
the Developer, a receiver of the Developer or of the whole or substantially all of its property, or
approve a petition filed against the Developer seeking reorganization or arrangement of the Developer
under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set
aside or stayed within 60 days from the date of entry thereof; or
(g) If the Development is in default under any Mortgage and has not entered into a work-out
agreement with the Holder of the Mortgage.
Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may,
in addition to any other remedies or rights given the HRA under this Agreement, take any one or more
of the following actions following written notice by the HRA to the Developer as provided in 9.4 of
this Agreement:
(a) suspend its performance under this Agreement until it receives assurances from the
Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and
continue its performance under this Agreement;
(b) cancel or rescind this Agreement;
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(c) withhold the Certificate of Completion; and
(d) take whatever action at law or in equity may appear necessary or desirable to the HRA to
collect any payments due under this Agreement, or to enforce performance and observance of any
obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that
any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited
by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by
this Agreement and (b) any rights or interest provided in this Agreement for the protection of the
Holders of a Mortgage; and provided further that should any Holder succeed by foreclosure of the
Mortgage or deed in lieu thereof to the Developer’s interest in the Property, it shall, notwithstanding
the foregoing, be obligated to perform the following obligations of the Developer only to the extent
that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7; Sections
4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosure or taking of a deed in lieu, shall have no
obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence.
Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the
HRA is intended to be exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement
or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any
right or power accruing upon any default shall impair any such right or power or shall be construed
to be a waiver thereof, but any such right and power may be exercised from time to time and as often
as may be deemed expedient. In order to entitle the HRA or the Developer to exercise any remedy
reserved to it, it shall not be necessary to give notice, other than such notice as may be required in
this Article VIII.
Section 8.4 No Additional Waiver Implied by One Waiver. In the event of the occurrence
of any Event of Default by either party, which Event of Default is thereafter waived by the other
party, such waiver shall be limited to the particular Event of Default so waived and shall not be
deemed to waive any other concurrent, previous or subsequent Event of Default.
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1 Conflict of Interests; Representatives Not Individually Liable. No HRA
official or employee who is authorized to take part in any manner in making this Agreement in their
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially there from. No member, official, or employee of the HRA shall be personally liable to the
Developer, or any successor in interest, for any Event of Default by the HRA or for any amount which
may become due to the Developer or successor or on any obligations under the terms of this
Agreement.
Section 9.2 Non-Discrimination. The provisions of Minnesota Statutes Section 181.59,
which relate to civil rights and non-discrimination, and any affirmative action program of the City
shall be considered a part of this Agreement and binding on the Developer as though fully set forth
herein.
Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of this
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Agreement have been fully performed by the Developer, the HRA, upon not less than 10 days’ prior
written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to the
Developer or to any person designated by the Developer, a statement in writing in recordable form
certifying the extent to which this Agreement has been performed and the obligations hereunder
satisfied.
Section 9.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
(a) As to the HRA:
Golden Valley HRA Executive Director
7800 Golden Valley Road
Golden Valley, MN 55427
(b) As to the Developer:
Magnolia Homes, LLC
Attn: J. Alex Frank
8868 Flesher Circle
Eden Prairie, MN 55347
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.4.
Section 9.5 Provisions Not Merged With Deed. None of the provisions of this Agreement
is intended to or shall be merged by reason of any deed transferring any interest in the Property and
any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement.
Section 9.6. Counterparts. This Agreement may be simultaneously executed in any number
of counterparts, all of which shall constitute one and the same instrument.
Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the completion
date of the Improvements set forth in Section 4.3 that exceeds six months from the date agreed to in
Sections 3.4 and 4.3, respectively, must be approved by the HRA Board. HRA staff is authorized to
extend the Closing Date to a date less than six months from the Closing Date agreed to in Section 3.4 and
extend the completion date of the Improvements to a date less than six months from the completion date
set forth in Section 4.3.
Section 9.8. Revesting Title in the HRA Upon Happening of Event Subsequent to
Conveyance by the Developer. In the event that subsequent to conveyance of the Property to the
Developer and prior to receipt by the Developer of the Certificate of Completion, the Developer, subject
to Unavoidable Delays, fails to carry out its obligations with respect to the construction of the
Improvements (including the nature and the date for completion thereof), or abandons or substantially
suspends corrective work, and any such failure, abandonment, or suspension is not cured, ended, or
remedied within 60 days after written demand from the HRA to the Developer to do so, then the HRA
shall have the right to re-enter and take possession of the Property and to terminate (and revest in the
HRA) the estate conveyed by deed to the Developer, it being the intent of this provision, together with
other provisions of this Agreement, that the conveyance of the Property to the Developer shall be made
73
Page 14 of 24
upon, and that the deed shall contain a condition subsequent to the effect that in the event of any default
on the part of the Developer and failure of the Developer to remedy, end, or abrogate such default within
the period and in the manner stated in such subdivision, the HRA at its option, may declare a termination
in favor of the HRA of the title, and of all the rights and interests in and to the Property conveyed to the
Developer, and that such title and all rights and interests of the Developer and any assigns or successors
in interest to and in the Property, shall revert to the HRA, but only if the events stated in this Section have
not been cured within the time periods provided above.
Notwithstanding anything to the contrary contained in this Section, the HRA shall have no right
to reenter or retake title to or possession of the Property in the event that a Certificate of Completion has
been issued.
Section 9.9. Resale of Reaquired Property; Disposition of Proceeds. Upon the revesting in
the HRA of title to or possession of the Property as provided in Section 9.8 of this Agreement, the HRA
shall apply the purchase price received by the HRA for the sale of the Property as follows:
(a) First, to reimburse the HRA for all costs and expenses incurred by the HRA, including but
not limited to, proportionate salaries of personnel, in connection with the recapture,
management, and resale of the Property (but less any income derived by the HRA from
the Property in connection with such management); all taxes, assessments, and water and
sewer charges with respect to the Property (or, in the event that the Property is exempt
from taxation or assessment, an amount, if paid, equal to such taxes, assessments, or
charges (as determined by the City’s assessing official) as would have been payable if the
Property were not exempt); any payments made or necessary to be made to discharge any
encumbrances or liens existing on the Property at the time of revesting of title thereto to
the HRA or to discharge or prevent from attaching or being made any subsequent
encumbrances or liens due to obligations, defaults, or acts of the Developer, its successors
or transferees; any expenditures made or obligations incurred with respect to the making
or completion of the Improvements on the Property; and any amounts otherwise owing
the HRA by the Developer and its successors or transferee; and
(b) Second, to reimburse the Developer for the balance of the purchase price received by
the HRA for the sale of the Property remaining after the reimbursements specified in
paragraph (a) above. Such reimbursement shall be paid to the Developer by the HRA
upon delivery of an executed, recordable warranty deed to the Property by the
Developer to the HRA.
74
IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its
name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement
to be duly executed as of the day and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
GOLDEN VALLEY
By:
Maurice Harris, Chairperson
By:
Noah Schuchman, Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this __ day of ________, 2025, by
Maurice Harris, the Chairperson of the Housing and Redevelopment Authority in and for the City of
Golden Valley (“HRA”), a public body corporate and politic under the laws of Minnesota, on behalf
of the HRA.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this __ day of _______, 2025, by
Noah Schuchman, the Executive Director of the Housing and Redevelopment Authority in and for
the City of Golden Valley (“HRA”), a public body corporate and politic under the laws of Minnesota,
on behalf of the HRA.
Notary Public
75
MAGNOLIA HOMES, LLC
By:
J. Alex Frank, Managing Member
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
2025, by J. Alex Frank, the Managing Member of Magnolia Homes, a limited liability corporation
under the laws of Minnesota, on behalf of the corporation.
Notary Public
76
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
That part of Tract A described below:
Tract A. Lot 2, Block 2, Hipp's Addition, according to the plat thereof on file and of record in the
office of the County Recorder in and for Hennepin County, Minnesota; the title thereto being
registered;
which lies westerly of Line 1 described below:
Line 1. Commencing at the northwest corner of Section 19, Township 29 North, Range 24 West, as
shown on Minnesota Department of Transportation Right of Way Plat No. 27-104 as the same is on file
and of record in the office of the County Recorder in and for Hennepin County, Minnesota; thence
westerly on an azimuth of 269 degrees 45 minutes 11 seconds along the boundary of said plat for 79.92
feet to the point of beginning of Line 1 to be described; thence on an azimuth of 180 degrees 16 minutes
03 seconds for 588.69 feet and there terminating.
Being Registered land as is evidenced by Certificate of Title No. 1440922.
77
EXHIBIT B
LIST OF CONSTRUCTION PLAN DOCUMENTS
Contract for Development
Concept Plans
Site Plan
78
EXHIBIT C
FORM OF QUIT CLAIM DEED
Quit Claim Deed
DEED TAX DUE: $
ECRV:
Date:
FOR VALUABLE CONSIDERATION, the Housing and Redevelopment Authority in and for the
City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota,
Grantor, hereby conveys and quit claims to __________________, a _________________ under the
laws of the State of Minnesota, Grantee, real property in Hennepin County, Minnesota, legally
described as follows:
Together with all hereditaments and appurtenances, and subject to easements of record.
Check here if part or all of the land is Registered (Torrens)
This deed is subject to the terms and provisions of that certain Contract for Development between
Grantor and Grantee (the “Contract”), dated , 20 , recorded ,
20 , in the office of the Hennepin County Registrar of Titles as Document No. ,
including, without limitation, the Grantor’s right of reverter in the event of certain defaults by Grantee
under the Contract as more fully described in Section 9.8 thereof. Additionally, pursuant to Section
3.11 of the Contract, the Grantee agrees to lease the Improvements to a Qualified Buyer (as that term
is defined in the Contract) and convey the Property to a community land trust. The Grantee must
obtain the Grantor’s prior approval of the terms and conditions of the lease with the Qualified Buyer
for the Improvements and the sale of the Property to the community land trust, and the agreement
terms and conditions must be consistent with the terms of the Contract.
79
The Seller certifies that the Seller
does not know of any wells on the
described real property.
A well disclosure certificate
accompanies this document or has
been electronically filed. (If
electronically filed, insert WDC
number: ).
I am familiar with the property
described in this instrument and I
certify that the status and number of
wells on the described real property
have not changed since the last
previously filed well disclosure
certificate.
80
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
GOLDEN VALLEY
By:
Its: Maurice Harris, Chairperson
By:
Its: Noah Schuchman, Executive Director
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of , 2025, by
Maurice Harris, the Chairperson of the Housing and Redevelopment Authority in and for the City of
Golden Valley, a public body corporate and politic under the laws of Minnesota, on behalf of the
Authority, Grantor.
SIGNATURE OF PERSON TAKING
ACKNOWLEDGMENT
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of , 202___,
by Noah Schuchman, the Executive Director, of the Housing and Redevelopment Authority in and
for the City of Golden Valley, a public body corporate and politic under the laws of the State
of Minnesota, on behalf of the Authority, Grantor.
SIGNATURE OF PERSON TAKING
ACKNOWLEDGMENT
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK)
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK)
81
Tax Statements should be sent to:
Magnolia Homes, LLC
8868 Flesher Circle
Eden Prairie, MN 55347
This instrument was drafted by:
City of Golden Valley
7800 Golden Valley Road
Golden Valley, MN 55427
(763) 593-8000
82
EXHIBIT D
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that , has fully and
completely complied with its obligations under Article V of that document entitled “Contract for
Development”, between the Housing and Redevelopment Authority in and for the City of Golden
Valley and Greater Metropolitan Housing Corporation dated , filed
as Document No. with respect to the
construction of the approved construction plans and is released and forever discharged from its
obligations to construct under such above-referenced Article.
DATED:
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF GOLDEN VALLEY
By: Maurice Harris, Chairperson
By: Noah Schuchman, Executive Director
83
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of ,
2025, by Maurice Harris the Chairperson of the Housing and Redevelopment Authority in and for the
City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota
on behalf of the Authority.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
, 2025, by Noah Schuchman, the Director of the Housing and
Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic
under the laws of Minnesota, on behalf of the Authority.
Notary Public
This instrument was drafted by:
Housing and Redevelopment Authority in
and for the City of Golden Valley
7800 Golden Valley Road
Golden Valley, MN 55427
84
EXECUTIVE SUMMARY
Finance
763-512-2345 / 763-512-2344 (fax)
Golden Valley Housing and Redevelopment Authority Meeting
September 2, 2025
Agenda Item
6.A. Public Input and Approval of HRA Resolution No. 25-02 Adopting a Proposed Budget and
Establishing the Proposed Tax Levy Payable in 2026
Prepared By
Lyle Hodges, Finance Director
Summary
The following resolution will allow the Housing and Redevelopment Authority (HRA) to collect tax
dollars through a levy to finance the 2026 HRA Budget. The resolution of consent will need to be
approved by the City Council at a future meeting.
Financial or Budget Considerations
The HRA 2025 Proposed Budget is $805,407. The HRA is proposing a levy of $461,652 with the
remainder of funding expected to come through the Local Affordable Housing Act (LAHA)
appropriation from the state of Minnesota in the amount of $343,755.
Legal Considerations
Minnesota Statutes Sections 469.001 to 469.047 grants the HRA the power to levy and collect taxes
subject to a resolution of consent from the Golden Valley City Council.
Equity Considerations
The proposed budget strives to advance the equity goals of the City and HRA by funding housing
programs and services that provide opportunities and resources for all. The process for adoption
includes the ability for any member of the public to provide feedback.
Recommended Action
Motion to approve HRA Resolution No. 25-02 adopting the Housing and Redevelopment Authority
Budget and Establishing the Proposed Tax Levy Payable in 2025.
Supporting Documents
HRA Resolution No. 25-02 - Adopting a Proposed Budget and Establishing the Proposed Tax Levy
Payable in 2026
ClearGov - HRA Budget
85
HRA RESOLUTION NO. 25-02
A RESOLUTION ADOPTING THE HOUSING AND REDEVELOPMENT AUTHORITY
BUDGET AND ESTABLISHING THE PROPOSED TAX LEVY PAYABLE IN 2026
WHEREAS, the Housing and Redevelopment Authority in and for the City of Golden
Valley (the “HRA”) has authorities and powers according to MN Statutes, Sections 469.001
to 469.047. MS Statutes, Section 469.033, subd. 6 grants the HRA the power to levy and
collect taxes subject to a resolution of consent from the Golden Valley City Council f or a set
period and,
WHEREAS, the HRA is requesting to adopt the proposed 2026 HRA Budget and
Levy payable in 2026 and requests the City of Golden Valley approves intent for the HRA
Budget and Levy.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
Section I. That there is proposed to be levied on all taxable real and personal
property in the City of Golden Valley, a tax rate sufficient to produce the amount as
follows:
HRA GENERAL FUND LEVY: $ 461,652
Section 2. That the proposed budget is as follows:
HRA HOUSING FUND: $ 805,407
Adopted by the Housing and Redevelopment Authority of the City of Golden Valley,
Minnesota this 2nd day of September 2022.
Maurice Harris, HRA Chair
ATTEST:
Noah Schuchman, Executive Director
86
Housing and Redevelopment Authority
The Housing and Redevelopment Authority (HRA) is a legally separate organization created in accordance with Minnesota
Statutes section 469. Its purpose is to clear and redevelop blighted areas within the City and to provide adequate housing
for low and moderate-income residents. The HRA is scally dependent on the City. Its governing board consists of the
City's Mayor and Councilmembers, and the City's management has operational responsibility for the HRA.
In 2024, the HRA began receiving Local Affordable Housing Aid (LAHA), as part of new legislation passed by the State of
Minnesota. The amount of this aid is determined annually and received in two payments, one in July and one in
December. This aid enhances the HRA's efforts to accomplish its stated goals and is programmed into the 2026 budget.
Revenue Summary
The graph below shows the changes to HRA funding over the past four years. In 2023, the HRA received a transfer from the
City's General Fund in the amount of $315,000 to fund the purchase of properties for the HOPE program. The transfer was
not originally budgeted, causing actual revenue to be signi cantly more than budgeted. Beginning in 2024, the HRA
received LAHA which amounted to $137,095 in revenue that was not originally budgeted. For 2026, the HRA is proposing
property tax revenue of $461,652 along with LAHA revenue estimated at $343,755.
Historical Revenues HRA
Revenue Actual Revenue Surplus Revenue Budgeted
FY2023 FY2024 FY2025 FY2026
0
$200K
$400K
$600K
$800K
$1,000K
2026 Council Proposed Budget | Golden Valley
HRA
87
Revenues by Revenue Source
The graph below shows revenue by source for 2023 and 2024 actual as well as 2025 and 2026 budgets.
Property Taxes Grants & Aid Transfers
Interest Earnings
2026 Revenues by Revenue Source
Property Taxes $461,652 57.32%
Grants & Aid $343,755 42.68%
Category FY 2025 Budget FY 2026 Budgeted FY 2025 Budget vs. FY 2026
Budgeted (% Change)
Property Taxes $319,181 $461,652 44.64%
Grants & Aid $137,095 $343,755 150.74%
Total Revenues $456,276 $805,407 76.52%
As noted above, the HRA began receiving LAHA in 2024. The rst year allocation was $137,095. For 2025, the amount
increased to $343,755 which is also the amount budgeted for 2026. The State informs recipients in July of each year of the
amount of LAHA they will receive for that year. Lacking further information, we're projecting the same amount of LAHA for
2026 as we will receive in 2025.
$561K$561K $561K
$434K$434K $434K $456K$456K $456K
$805K$805K $805K
FY2023 FY2024 FY2025 FY2026
0
$250K
$500K
$750K
$1,000K
805K
Revenues by Revenue Source
2026 Council Proposed Budget | Golden Valley
HRA
88
Expenditure Summary
The graph below shows the budgeted expenses for 2023 through 2026 as well as actual spending in 2023 and 2024.
Historical Expenditures HRA
Overall spending in 2026 is proposed to increase to $805,407, representing a 78.47% rise compared to the 2025 budgeted
expenses of $451,276. Details of the spending changes from 2025 to 2026 are explained below.
Expenditures by Expense Type
Historical Expenditures by Expense Type
Contractual Services Salaries Capital Outlay
Fringes Training & Memberships Dues & Subscriptions
Materials & Supplies
Expenses Actual Expenses Budgeted
FY2023 FY2024 FY2025 FY2026
0
$200K
$400K
$600K
$800K
$1,000K
$208K$208K $208K
$498K$498K $498K $451K$451K $451K
$805K$805K $805K
FY2023 FY2024 FY2025 FY2026
0
$250K
$500K
$750K
$1,000K
2026 Council Proposed Budget | Golden Valley
HRA
89
For 2026, the total expenditures for the HRA increased by 78.47% to $805,407 compared to the 2025 budgeted amount of
$451,276. Contractual Services remained the largest expense category, accounting for 46.4% of the total at $373,720, which
is a 50.33% increase of $125,125 from the prior year. The increase is related to additional investments in programming
supported by additional LAHA funding. In 2026, the HRA is proposing to invest $91,925 in affordable housing, spend
$82,400 on real estate support activities, and support an additional $137,095 in LAHA eligible programming. Salaries saw a
large increase related to two newly proposed positions to work on programming and help administer the department's
operations.
Training & Memberships grew by 64.58% to $9,710, though it remained a smaller portion of the budget at 1.21%. Materials &
Supplies stayed constant at $300, representing 0.04% of the total. Dues & Subscriptions experienced a notable decrease of
63.49%, dropping to $1,935 and comprising only 0.24% of the budget. Capital Outlay remained at zero, consistent with the
previous year. Capital outlay in 2024 represents purchases of HOPE properties funded by a transfer from the City's General
Fund.
FY26 Expenditures by Expense Type
Contractual Services $373,720 46.40%
Salaries $293,443 36.43%
Fringes $126,299 15.68%
Training & Memberships $9,710 1.21%
Dues & Subscriptions $1,935 0.24%
Materials & Supplies $300 0.04%
For the scal year expenditures by expense type in the HRA, Contractual Services account for $373,720, representing 46.4%
of the total. Salaries follow with $293,443, making up 36.43%. Fringes are $126,299, which is 15.68% of the expenditures.
Training & Memberships total $9,710, or 1.21%. Dues & Subscriptions amount to $1,935, comprising 0.24%, and Materials &
Supplies are $300, representing 0.04% of the expenses.
Category FY 2025 Budget FY 2026 Budgeted FY 2025 Budget vs. FY 2026
Budgeted (% Change)
Salaries $132,204 $293,443 121.96%
Fringes $58,977 $126,299 114.15%
Materials & Supplies $300 $300 0.00%
Contractual Services $248,595 $373,720 50.33%
Training & Memberships $5,900 $9,710 64.58%
Dues & Subscriptions $5,300 $1,935 -63.49%
Total Expenditures $451,276 $805,407 78.47%
805K
Expenditures by Expense Type
2026 Council Proposed Budget | Golden Valley
HRA
90
Expenditures by Expense Account
FY26 Expenditures by Expense Account
PROFESSIONAL SERVICES $373,420 46.36%
SALARIES-REGULAR EMPLOYEES $293,443 36.43%
EMPLOYEE INSURANCE $77,734 9.65%
RETIREMENT $48,565 6.03%
CONFERENCE & SCHOOLS $9,710 1.21%
DUES & SUBSCRIPTIONS $1,935 0.24%
USE OF PERSONAL AUTO $300 0.04%
OPERATING SUPPLIES $300 0.04%
For 2026 expenditures by expense account in the HRA, Professional Services account for $373,420, representing 46.36% of
the total. Salaries-Regular Employees follow with $293,443, or 36.43%. Employee Insurance expenses amount to $77,734,
which is 9.65%. Retirement costs are $48,565, making up 6.03%. Conference & Schools expenses total $9,710, or 1.21%. Dues
& Subscriptions are $1,935, representing 0.24%. Operating Supplies and Use of Personal Auto each account for $300, both
at 0.04% of the expenditures.
Category FY 2025 Budget FY 2026 Budgeted FY 2025 Budget vs. FY 2026
Budgeted (% Change)
SALARIES-REGULAR
EMPLOYEES $132,204 $293,443 121.96%
EMPLOYEE INSURANCE $36,299 $77,734 114.15%
RETIREMENT $22,678 $48,565 114.15%
OPERATING SUPPLIES $300 $300 0.00%
PROFESSIONAL SERVICES $248,295 $373,420 50.39%
USE OF PERSONAL AUTO $300 $300 0.00%
CONFERENCE & SCHOOLS $5,900 $9,710 64.58%
DUES & SUBSCRIPTIONS $5,300 $1,935 -63.49%
Total Expenditures $451,276 $805,407 78.47%
805K
Expenditures by Expense Account
2026 Council Proposed Budget | Golden Valley
HRA
91
Personnel Summary
Position Title 2025 Count 2026 Count
Housing and Economic
Development Manager 1 1
HRA Coordinator -1
HRA Assistant -1
Total FTE 1 3
2026 Council Proposed Budget | Golden Valley
HRA
92