031714CompleteAgenda-without WS attachment
CITY OF RICHFIELD, MINNESOTA
MONDAY, MARCH 17, 2014
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
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SPECIAL CONCURRENT HOUSING AND REDEVELOPMENT AUTHORITY/
CITY COUNCIL/PLANNING COMMISSION WORKSESSION
BARTHOLOMEW ROOM
6:00 P.M.
AGENDA
Call to order
(Worksession discussion times are approximate)
6:00 - 6:55 p.m.
1. Presentation and discussion of the Senior Housing Demand Assessment
(HRA Memo No. 14/Council Memo No. 31)
Notes: _________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Adjournment
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REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
1. Approval of the minutes of the (1) Regular HRA Meeting of January 22, 2014 and (2)
Regular HRA Meeting of February 18, 2014
2. HRA approval of the agenda
3. Public hearing regarding a resolution authorizing the sale of 7312 and 7316 Clinton
Avenue to the Greater Metropolitan Housing Corporation for the construction of two
single-family homes through the New Home Program
Staff Report No. 14
Notes: ___________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
4. HRA discussion items
Notes: ___________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
5. Executive Director Report
Notes: ___________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
6. Claims and Payroll
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.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 22, 2014
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:00 p.m.
ROLL CALL
HRA Members Sue Sandahl, HRA Chair; Doris Rubenstein; David Gepner; Mary
Present: Supple and Debbie Goettel.
Staff Present: Steven L. Devich, Executive Director; John Stark, Community Development
Director; Karen Barton, Assistant Community Development Director; Chris
Regis, Finance Manager; Julie Eddington, HRA Attorney; and Nancy Gibbs,
City Clerk.
Item #1 CONSIDERATION OF THE ELECTION OF OFFICERS FOR THE RICHFIELD HRA
FOR 2014 S.R. NO. 1
M/Goettel, S/Rubenstein to approve Sue Sandahl as Chair of the HRA for 2014.
Motion carried 5-0.
M/Goettel, S/Rubenstein to approve Mary Supple as Vice Chair of the HRA for 2014.
Motion carried 5-0.
M/Goettel, S/Sandahl to approve Doris Rubenstein as Secretary of the HRA for 2014.
Motion carried 5-0.
Chair Sandahl asked that the HRA by-laws be amended to note that in the absence of the
HRA Chair and Vice Chair the Secretary would act as Chair.
The HRA consensus was to amend the by-laws.
HRA Attorney Eddington stated she would work on amending the by-laws and bring them to
the HRA for approval at a future meeting.
HRA Meeting -2- January 22, 2014
Item #2 APPROVAL OF MINUTES OF THE REGULAR HRA MEETING OF DECEMBER 16,
2013.
M/Rubenstein, S/Gepner to approve the minutes.
Motion carried 5-0.
Item #3 HRA APPROVAL OF AGENDA
M/Rubenstein, S/Supple to approve the agenda.
Motion carried 5-0.
Item #4 CONSENT CALENDAR
A. Consideration of the approval of the resolutions designating the official depositories for
the HRA for 2014, including the approval of collateral S.R. No. 2
HRA RESOLUTION NO. 1170
RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE HRA OF
RICHFIELD
FOR THE YEAR 2014
HRA RESOLUTION NO. 1171
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS
AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND
REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2014
HRA RESOLUTION NO. 1172
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2014
These resolutions appear as HRA Resolution Nos. 1170 through 1172.
B. Consideration of the approval of designating the Community Development Director as
the Acting Executive Director of the HRA for 2014 in the event the Executive Director is
absent from the City S.R. No. 3
C. Consideration of the approval of a resolution accepting a 2014 Metro Clean Energy
Resource Teams Seed Grant from the Great Plains Institute for Sustainable
Development, Inc. to develop a Latino Outreach plan for the Home Energy Squad
Enhanced Program S.R. No. 4
HRA RESOLUTION NO. 1173
HRA Meeting -3- January 22, 2014
RESOLUTION ACCEPTING A 2014 METRO CERT SEED GRANT FROM THE GREAT PLAINS
INSTITUTE FOR SUSTAINABLE DEVELOPMENT, INC
This resolution appears as HRA Resolution No. 1173.
D. Consideration of the approval of a Professional Services Agreement with the
Neighborhood Development Alliance to develop a Latino Outreach Plan for the Home
Energy Squad Enhanced Program S.R. No. 5
M/Sandahl, S/Goettel to approve the Consent Calendar.
Motion carried 5-0.
Item #5 PUBLIC HEARING REGARDING THE RESOLUTIONS AUTHORIZING THE SALE
OF FOUR LOTS (6220-15TH AVENUE; 6336-15TH AVENUE; AND 6416 AND
6420-16TH AVENUE) TO TWIN CITIES HABITAT FOR HUMANITY, INC. FOR THE
DEVELOPMENT OF FOUR SINGLE-FAMILY HOMES THROUGH THE NEW
HOME PROGRAM S.R. NO. 6
Assistant Community Development Director Barton presented HRA Staff Report No. 6.
Chad Dipman, Project Assistant Supervisor for Habitat for Humanity, explained the timeline
of the property purchase.
th
Buster Smith, 6231 – 15 Avenue, stated he opposed the properties being sold to Habitat
for Humanity.
Commissioner Gepner asked Mr. Dipman if Habitat for Humanity would still be interested in
purchasing less than four lots.
Mr. Dipman responded that his organization would work with whatever number is approved.
He further explained how families are educated regarding first-time home ownership.
Commissioner Gepner stated that he would like to limit the number of properties that are
sold to Habit for Humanity. He explained that he would like to see some of these available
properties go to Richfield Rediscovered since the City Council and HRA desires to add more move-
up housing in Richfield.
Commissioner Gepner asked if the HRA would consider selling less than four lots to Habitat
for Humanity.
Chair Sandahl responded that she would like to sell two lots to Habitat for Humanity and
leave two lots for Richfield Rediscovered.
Commissioner Rubenstein agreed with Chair Sandahl.
M/Goettel, S/Gepner to close public hearing.
Motion carried 5-0.
thth
M/Sandahl, S/Gepner to authorize the sale of two lots (6220 – 15 Avenue and 6336 – 15
Avenue) to Twin Cities Habitat for Humanity, Inc. for the development of two single-family story and
a half homes through the New Home Program and that the following resolutions be approved:
HRA Meeting -4- January 22, 2014
HRA RESOLUTION NO. 1176
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
6220 15TH AVENUE TO TWIN CITIES HABITAT FOR HUMANITY, INC. IN ACCORDANCE WITH
A CONTRACT FOR DEVELOPMENT
HRA RESOLUTION NO. 1177
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
6336 15TH AVENUE TO TWIN CITIES HABITAT FOR HUMANITY, INC. IN ACCORDANCE WITH
A CONTRACT FOR DEVELOPMENT
Motion carried 5-0. These resolutions appear as HRA Resolution Nos. 1176 through 1177.
Item #6 CONSIDERATION OF A PROPOSAL MADE BY THE OWNER OF 6700 ELLIOT
AVENUE FOR A SETTLEMENT OF A HRA DEFERRED LOAN S.R. NO. 7
Assistant Community Development Director Barton presented HRA Staff Report No. 7.
Marsha Lundeen, 6700 Elliot Avenue, was available for questions.
Chris Willette, Edina Realty, explained the short sale process.
M/Goettel, S/Sandahl to approve the proposal made by the owner of 6700 Elliot Avenue for
settlement of an HRA deferred loan.
Motion carried 5-0.
Item #7 CONSIDERATION OF A RESOLUTION DESIGNATING BUILDINGS
(ASSOCIATED WITH THE FORMER CITY GARAGE FACILITIES AND FORMER
GLEASON’S MORTUARY) AS STRUCTURALLY SUBSTANDARD WITHIN THE
RICHFIELD REDEVELOPMENT PROJECT AREA AND AUTHORIZING THEIR
DEMOLITION S.R. NO. 8
Community Development Director Stark presented HRA Staff Report No. 8.
M/Goettel, S/Sandahl that the following resolution be approved:
HRA RESOLUTION NO. 1174
RESOLUTION DESIGNATING BUILDINGS AS STRUCTURALLY
SUBSTANDARD WITHIN RICHFIELD REDEVELOPMENT PROJECT
Motion carried 5-0. This resolution appears as HRA Resolution No. 1174.
Item #8 CONSIDERATION OF A RESOLUTION AUTHORIZING AN INTERFUND LOAN
FOR THE ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE
PROPOSED TAX INCREMENT FINANCING DISTRICT 2014-1 S.R. NO. 9
Executive Director Devich presented HRA Staff Report No. 9.
HRA Meeting -5- January 22, 2014
M/Rubenstein, S/Gepner that the following resolution be approved:
HRA RESOLUTION NO. 1175
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN
CONNECTION WITH PROPOSED TAX INCREMENT FINANCING DISTRICT NO. 2014-1
Motion carried 5-0. This resolution appears as HRA Resolution No. 1175.
Item #9 HRA DISCUSSION ITEMS
Commissioner Goettel discussed the Fair Housing Equity Assessment Housing Study and
would like to have presentations made to the City Council and HRA.
Community Development Director Stark reported on the current status of the Housing
Visioning Task Force.
Item #10 EXECUTIVE DIRECTOR REPORT
No report.
Item #11 CLAIMS AND PAYROLL
M/Goettel, S/Supple that the following claims and payrolls be approved:
U.S. BANK 01/22/14
Section 8 Checks: 124372 - 124486 $ 170,033.29
HRA Checks: 31909 - 31930 $ 81,390.57
TOTAL $ 251,423.86
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:28 p.m.
Date Approved: March 17, 2014
Suzanne M. Sandahl
HRA Chair
Nancy Gibbs Steven L. Devich
City Clerk Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
February 18, 2014
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:00 p.m.
ROLL CALL
HRA Members Sue Sandahl, HRA Chair; Doris Rubenstein; David Gepner; Mary
Present: Supple and Debbie Goettel.
Staff Present: John Stark, Acting Executive Director/Community Development Director;
Karen Barton, Assistant Community Development Director; Julie Eddington,
HRA Attorney; and Theresa Schyma, Deputy City Clerk.
Item #1 APPROVAL OF MINUTES OF THE SPECIAL HRA WORKSESSION OF JANUARY
22, 2014.
M/Gepner, S/Supple to approve the minutes.
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Gepner, S/Supple to approve the agenda.
Motion carried 5-0.
Item #3 HRA YEAR END REVIEW 2013
Assistant Community Development Director Barton presented a brief overview of HRA
Programs/Community Development 2013 year in review.
Item #4 CONSENT CALENDAR
HRA Meeting -2- February 18, 2014
A. Consideration of the approval of a revision to the Richfield Rediscovered Lot Sale and
Credit Program Guidelines to make noise attenuation construction standards consistent
with City ordinance S.R. No. 10
B. Consideration of the approval of the revisions to the bylaws of the HRA of Richfield, MN
S.R. No. 11
C. Consideration of the approval of the consent to transfer property in the Urban Village
development and authorize the execution of an Estoppel Letter substantially in the form
attached to this report S.R. No. 12
M/Goettel, S/Rubenstein to approve the Consent Calendar.
Motion carried 5-0.
Item #5 CONSIDERATION OF A RESOLUTION ADOPTING A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT
AREA, ESTABLISHING A 2014-1 TAX INCREMENT FINANCING DISTRICT (CITY
GARAGE SITE) THEREIN AND ADOPTING A TAX INCREMENT FINANCING
PLAN THERFOR S.R. NO. 13
Acting Executive Director/Community Development Director Stark presented HRA Staff
Report No. 13.
Commissioner Goettel asked if there is contamination on the site.
Acting Executive Director/Community Development Director Stark responded that there
doesn’t appear to be contamination and that the site is secure. Until the end use of the property is
determined it is best to wait to test the soils since corrections to the site would differ based on use.
M/Goettel, S/Rubenstein that the following resolution be approved:
HRA RESOLUTION NO. 1178
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE
RICHFIELD REDEVELOPMENT PROJECT AREA, ESTABLISHING 2014-1 TAX INCREMENT
FINANCING DISTRICT (CITY GARAGE SITE) THEREIN AND ADOPTING A TAX INCREMENT
FINANCING PLAN THEREFOR
Motion carried 5-0. These resolutions appear as HRA Resolution No. 1178.
Item #6 HRA DISCUSSION ITEMS
Commissioner Gepner asked about the requirement for roll call at the HRA meetings as the
practice seems antiquated.
Acting Executive Director/Community Development Director Stark responded that he would
reexamine the HRA by-laws but believes traditional roll call can be removed from the agenda.
The HRA consensus was to remove traditional roll call from all future meetings and simply
have the attendance noted in the subsequent meeting minutes.
Chair Sandahl questioned whether Richfield has a Travel Demand Management (TDM)
ordinance like Bloomington that encourages alternative modes of transportation.
HRA Meeting -3- February 18, 2014
Acting Executive Director/Community Development Director Stark responded that he would
look into this matter and report back.
Item #7 EXECUTIVE DIRECTOR REPORT
Acting Executive Director/Community Development Director Stark noted that there would be
a Special Concurrent HRA/City Council/Planning Commission Worksession on March 17 regarding
the Senior Housing Needs Assessment.
Item #8 CLAIMS AND PAYROLL
M/Goettel, S/Gepner that the following claims and payrolls be approved:
U.S. BANK 02/18/14
Section 8 Checks: 124487 - 124602 $ 171,051.12
HRA Checks: 31931 - 31944 $ 501,799.60
TOTAL $ 672,850.72
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:57 p.m.
Date Approved: March 17, 2014
Suzanne M. Sandahl
HRA Chair
Theresa Schyma John Stark
Deputy City Clerk Acting Executive Director
AGENDA ITEM# 3
REPORT# 14
STAFF REPORT
c:c4ee' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 17, 2014
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING
SPECIALIST
NAME,TITLE
REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
Avasw r g
ITEM FOR HRA CONSIDERATION:
Public hearing to consider sale of 7312 and 7316 Clinton Avenue to the Greater Metropolitan
Housing Corporation for the construction of two single family homes through the New Home
Program.
I. RECOMMENDED ACTION:
Conduct and close the public hearing and by motion:
Approve a resolution authorizing the sale of 7312 and 7316 Clinton
Avenue to the Greater Metropolitan Housing Corporation for the
construction of two single-family homes through the New Home
Program.
II. EXECUTIVE SUMMARY
The Greater Metropolitan Housing Corporation (GMHC) is proposing to purchase
7312 and 7316 Clinton Avenue from the Housing & Redevelopment Authority (HRA)
to construct two new homes to be sold to households with incomes no greater than
80 percent of the Twin Cities Area Median Income (AMI). The home at 7312 Clinton
will be a three-bedroom, two-bath, 1,700 square foot, single-level home with an
attached two-car garage, built to be fully accessible to an occupant with physical
disabilities. The home at 7316 Clinton will be a four-bedroom, two-bath, 1,777
square foot, split-level home with a two-car detached garage and will be sold to an
03172014 7312-16 Clinton Sale to GMHC.docx
income-qualifying first-time homebuyer. GMHC has received Community
Homeownership Impact Funds from Minnesota Housing to develop the homes and
proposes to purchase the properties from the HRA for $10,000 each. Federal
Community Development Block Grant (CDBG) funds were used to purchase the
properties, which requires that they be developed as housing affordable to
households with incomes no greater than 80 percent of the AMI.
III. BR
ASIS OF ECOMMENDATION
A. B
ACKGROUND
In 2008 the HRA purchased the substandard property at 7316 Clinton
Avenue using a combination of Community Development Block Grant
(CDBG) funds and HRA funds.
In 2008 the City Council approved a subdivision waiver to divide the
100-foot wide parcel into two 50-foot wide lots.
On the 7312 Clinton Avenue lot, GMHC would construct a 1,700
square foot, single level, three-bedroom, two-bath home with an
attached two-car garage. The home would be built to be accessible to
a person who uses a wheelchair. The accessibility features include:
One-level living
o
Accessible floor plan design with wide doorways and
o
hallways
Attached garage with ramp into house
o
Roll-in shower
o
Grab bars
o
Front-load laundry
o
No-step entry
o
Low door thresholds
o
Easy grip door levers
o
On the 7316 Clinton Avenue lot, GMHC would construct a split-level
home of 1,777 square feet, four bedrooms, two baths, and a two-car
detached garage
GMHC constructed a similar home in partnership with
o
the HRA at 7205 Nicollet Avenue in 2008.
Both homes would be built to meet Minnesota Green Communities
requirements, which require the homes to be built to environmentally-
responsive building standards.
GMHC has the experience, capability, and financial security to
develop the property and has previously constructed three homes in
Richfield and rehabilitated an additional seven through the
Neighborhood Stabilization Program.
The New Home Program allows homes to be sold to households
earning up to 80 percent of AMI ($63,900 for a family of four).
In the past ten years, five new homes were constructed under the
New Home program for affordable purchase.
Under the New Home Program, the HRA has partnered with nonprofit
developers to construct 48 affordable homes since 1981.
Since 2008, the HRA has partnered with a non-profit developer to
construct just one new home. Because of the oversupply on the
market, the HRA focused on purchasing and land-banking properties
for future development of affordable housing. The oversupply has
since been absorbed and the market is able to sustain new units.
A neighborhood meeting was held on March 11, 2014.
B. P
OLICY
The New Home Program implements the goal of the Comprehensive
Plan to ensure sufficient diversity in the housing stock to provide for a
range of household sizes, income levels and needs. The Program
carries out the policies that support this goal, including:
Promote the development of a balanced housing stock
o
that is available to a range of income levels.
Promote the development, management and
o
maintenance of affordable housing in the City through
assistance programs, alternative funding sources, and
the creation of partnerships whose mission is to promote
low to moderate income housing.
C. CTI
RITICAL IMING SSUES
Construction would begin on the houses in the spring of 2014 and be
completed by late summer 2014.
GMHC was awarded funds by Minnesota Housing in 2013. The funds
must be expended by June 30, 2015.
The Land Disposition Agreement between the HRA and Hennepin
County requires the property to be developed by March 2015.
D. F
INANCIAL
GMHC is proposing to pay the HRA $10,000 for each of the two lots
($20,000 total).
GMHC was awarded $160,000 in Community Homeownership Impact
funds by Minnesota Housing to construct the homes.
The property was purchased for $150,000 using CDBG funds and
housing and redevelopment funds.
Based on appraisals of similar lots, staff estimates that the vacant lots
have an estimated appraised value of $45,000.
E. L
EGAL
Federal CDBG funds were used to purchase the properties, which
requires that they be developed as housing affordable to households
with incomes no greater than 80 percent of the AMI.
Notice of the public hearing was published in the Sun Current on
March 6, 2014.
Mailed notice was also sent as a courtesy to homeowners and
occupants within 350 feet of the property.
The HRA Attorney prepared the Contract for Private Development.
IV. AR()
LTERNATIVE ECOMMENDATIONS
Do not approve the resolution authorizing sale of the properties to GMHC.
V. A
TTACHMENTS
Resolution
Photo of the lots
Contracts for Development
Site Plans
Elevations
VI. PPEM
RINCIPAL ARTIES XPECTED AT EETING
Bill Buelow, Greater Metropolitan Housing Corporation
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
7312 AND 7316 CLINTON AVENUE TO THE GREATER METROPOLITAN HOUSING
COPRPORATION IN ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT
WHEREAS
, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in
furtherance of the New Home Program adopted by the HRA, said real property being
described as follows:
Address Legal
7312 Clinton Avenue South Lot 4, Block 4, Blair’s Wooddale Third Addition, Hennepin
County, Minnesota
7316 Clinton Avenue South Lot 5, Block 4, Blair’s Wooddale Third Addition, Hennepin
County, Minnesota
WHEREAS
, the HRA is authorized to sell real property within its area of operation
after public hearing; and
WHEREAS
, a developer, the Greater Metropolitan Housing Corporation, has been
identified as the purchaser of the described property and in accordance with a
Development Agreement; and
WHEREAS
, a public hearing has been held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED
, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. A public hearing has been held and 7312 and 7316 Clinton Avenue is authorized to
be sold for $20,000 to the Greater Metropolitan Housing Corporation in accordance
with a Development Agreement with the HRA.
2. The Chairperson and Executive Director are authorized to execute a Contract for
Private Development and other agreements as required to effectuate the sale to the
Greater Metropolitan Housing Corporation.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of March, 2014.
_____________________________
Suzanne M. Sandahl, Chair
ATTEST:
_______________________________
Doris Rubenstein, Secretary
03172014 7312-16 Clinton Sale to GMHC.docx