010713Special-completeagenda CITY OF RICHFIELD, MINNESOTA
MONDAY, JANUARY 7, 2013
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
Roll call
1. Consideration of 17th Avenue special assessment bond process
Staff Report No. 1
Notes:
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
AGENDA ITEM#e I
REPORT#: 1
•NrAll STAFF REPORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 7, 2013
REPORT PREPARED BY: JEFF PEARSON, TRANSPORTATION
ENGINEER
NAME,TITLE
REPORT PRESENTER: KAREN BARTON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: F
r' /40( SI :TURE�
REVIEWED BY EXECUTIVE DIRECTOR: Er, '
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ITEM FOR HRA CONSIDERATION:
Consideration of approval for 17th Avenue Special Assessment Bond process.
I. RECOMMENDED ACTION:
By Motion: Approve the process to obtain twelve properties on 17th
Avenue between 65th Street and 63rd Street including the costs of the
property assessments for pending.
II. BACKGROUND
City staff is currently acquiring purchase agreements and a signed petition from
residents on 17th Avenue. It would ask the City Council to consider ordering the
construction of Richfield Parkway (along the current alignment of 17th Avenue)
including the purchase of the remaining twelve residential properties on 17th
Avenue from 65th Street to 63rd Street. Guidance for this process was given to
staff members at the May 8, 2012 work session with formal direction given at the
May 22, 2012 City Council Meeting. Initial meetings with the property owners
began shortly thereafter.
HRA_01072013 Asse ssmentBond
Cedar Corridor Redevelopment Area
The purchase of these properties and construction of the Parkway is consistent
with plans for the Cedar Corridor Redevelopment Area (see attachment). The
Cedar Corridor Redevelopment Area was established in response to the
Minnesota State Legislature's 1996 decision to expand the Minneapolis-St. Paul
International Airport (MSP) at its present site rather than build a new airport.
More specifically the area addressed noise concerns stemming from the
construction of the new MSP runway 17-35 along the Cedar Avenue corridor.
Properties east of 17th Avenue were purchased with the first phase of roadwork
and commercial development known as Richfield Parkway and Cedar Point
Commons. Phase II of the road construction and redevelopment, which includes
the two blocks of 17th Avenue, was delayed due to declining market conditions
and financing difficulties.
Taft-Legion Stormwater Improvements
On October 9, 2012 the City Council approved a cooperative agreement with the
Minnehaha Creek Watershed Management District to complete improvements to
the stormwater treatment at Taft and Legion Lakes in Richfield. One of the items
within that project is the construction of the Richfield Parkway North Connection.
This road will connect Bloomington Avenue to Richfield Parkway (17th Ave) with
construction programmed for 2013. Upon learning of this project, there was
considerable resistance from residents on 17th Avenue concerning the impacts of
increased traffic (expected to more than double) and construction. Many of the
residents complained that they were expecting their properties to be purchased
years ago as part of the redevelopment.
A Possible Solution
In response to neighborhood frustration and concerns, the possibility of
completing the Richfield Parkway Phase II project emerged (and purchasing the
properties along 17th Avenue) through the use of a Special Assessment Bond.
This process would have several attractive results. It would:
• Allow for the completion of the full Richfield Parkway cross section
from 66th Street to Bloomington Avenue (much as it was envisioned in
the Cedar Corridor Redevelopment Area Plans).
• Complete the purchase of the remaining residential properties on 17th
Avenue eliminating a significant hurdle to future redevelopment.
• Provide relief to residents on 17th Avenue who are frustrated with
unknown future traffic and redevelopment issues.
Once purchased by the City, the properties would be conveyed to the HRA for a
nominal amount. The HRA would be responsible for the annual assessment until
a developer purchases the parcels.
Project and Assessment Costs
The total bonded project cost would be approximately $3,000,000 of which 25%
would be assessed to the properties on the west side of 17th Avenue. The
resulting annual assessment to the HRA would be approximately $50,000 to
$70,000 depending on interest rates and bond structure. Additionally, taxes for
the first year would not be included in the bond and would amount to
approximately $25,000. Demolition costs will be included in the bond total.
Costs for mowing of the parcels would be covered by Public Works.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is expected that the HRA, the City and the future developer will
negotiate the eventual cost participation for the bond payments
(HRA and City portions) when the redevelopment takes place.
• Minnesota Statutes Chapter 429 gives cities authority to levy
special assessments.
• Special assessments have three distinct requirements:
o The City uses the levy to finance, or partially finance,
a particular public improvement program.
o The City levies the charge only against those
particular parcels of property that receive some
special benefit from the program.
o The amount of the charge bears a direct relationship
to the value of the benefits the property receives.
B. CRITICAL TIMING ISSUES
• Under current purchase agreements, the City Council must decide
by March 26, 2013 whether to order the project and assessment.
C. FINANCIAL
• The property taxes for the first year amount to approximately
$25,000.
• Total annual assessment cost to the HRA amounts to
approximately $50,000 to $70,000.
D. LEGAL
• The HRA attorney has reviewed the Special Assessment Bond
process.
IV. ALTERNATIVE RECOMMENDATIONS)
• Do not approve the Special Assessment Bond process which would halt
the purchase of the 17th Avenue properties and prevent construction of
that section of Richfield Parkway.
V. ATTACHMENTS
• Cedar Corridor Redevelopment Area Map
• Required Parcels Map
• Richfield Parkway Presentation Slides
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• 17th Avenue Residents
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Cedar Avenue Corridor Redevelopment Area
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Public Meeting
M a y 24 2012
1 . Taft — Legion Project
2 . Richfield Parkway North Connection
3 . Richfield Parkway Phase II (63rd to 65th)
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• April 26t" - Minnehaha Creek Watershed
District (MCWD) Completed Plan
Amendment Process
• Summer 2012
• Approval of Cooperative Agreement
• Order Final Design of Project
• Purchase 3 homes at 63rd/Bloomington
• Winter 2012 — Advertise Project
• Spring 2013 — Construction Begins
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PUBLIC WORKS
Richfield Parkway — Phase
North Connection
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• 2010 Technical Advisory Committee
• City — Public Works, Community Development, Recreation
• Hennepin County
• Metro Transit
• Three Rivers Park District
• WSB & Associates
• Open Houses — 11 /17/10 & 1 /19/11
• March 2 , 2011 Transportation Commission Final
Recommendation
• March 10 , 2011 Open House
• March 22 , 2011 CouncilApproval
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Richfield Parkway Connection North
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• Residents petition
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PUBLIC WORKS
2012 Project Timeline ( REVISED
May — Sept. Resolution — Feasibility Study
Open House
Obtain Appraisals
Oct. - Dec. Obtain Petitions / Order Project
Execute Purchase Agreements
Resolution — Public Hearing
Jan. — March ` 13 Hold Public Hearing
Begin Purchasing Homes
Fall 2013 - Advertise for Bids
Spring 2014 Award Construction Contract / Begin Work
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