042015CompleteAgenda CITY OF RICHFIELD, MINNESOTA
MONDAY, APRIL 20, 2015
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
1. Approval of the minutes of the Regular HRA Meeting of March 16, 2015
2. HRA approval of the agenda
3. Consideration of a resolution authorizing the purchase of real property located at 7309
10t Avenue through the Richfield Rediscovered Program
Staff Report No. 13
4. HRA discussion items
5. Executive Director Report
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
.C�f����� Richfield, Minnesota
G �`
Regular Meeting
March 16, 2015
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:00 p.m.
ATTENDANCE
HRA Members Mary Supple, Chair; Doris Rubenstein; David Gepner and Debbie Goettel;
Present: and Pat Elliott.
Staff Present: Steven L. Devich, Executive Director; John Stark, Community Development
Director; and Karen Barton, Assistant Community Development Director.
Item #1 FEBRUARY 017,, 2015 AND (2) REGULAR HRA MEETING OF FEBRUARY 17, 2015
M/Goettel, S/Rubenstein to approve the minutes.
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Gepner, S/Elliott to approve the agenda.
Motion carried 5-0.
Item #3 PUBLIC HEARING REGARDING A RESOLUTION AUTHORIZING THE SALE OF
66375TH AVENUE TO ENDRES CUSTOM HOMES AND A CONTRACT FOR
PRIVATE DEVELOPMENT WITH ENDRES CUSTOM HOMES FOR THE
CONSTRUCTION OF A SINGLE FAMILY HOME UNDER THE RICHFIELD
REDISCOVERED PROGRAM S.R. NO. 9
Assistant Community Development Director Barton presented Staff Report No. 9.
Dustin Endres, Endres Custom Homes, was available for questions.
Commissioner Gepner questioned if there was an "end buyer" for the project.
Assistant Community Development Director Barton responded that there was not.
Commissioner Elliott asked if this was the first home to be built speculatively on the Richfield
Rediscovered Program.
HRA Meeting -2- March 16,2015
Assistant Community Development Director responded that she believed it was the first.
Mary and Janet Lennander, 6633 — 5th Avenue, stated that the removal of the driveway
raised concerns about snow storage and their ability to maneuver around the snow.
Mr. Endres spoke regarding the standard driveway widths and felt an easement is not
needed for the neighbors.
M/Gepner, S/Goettel to close the public hearing.
Motion carried 5-0.
Commissioner Rubenstein asked about the placement of the driveway of the proposed
home.
Assistant Community Development Director Barton responded and showed a drawing of the
placement of the driveway.
Commissioner Gepner asked if the driveway was conforming.
Assistant Community Development Director Barton stated that staff is proposing a three foot
easement for the driveway.
Commissioner Gepner questioned why this project is going forward without a buyer.
Assistant Community Development Director Barton stated that staff was comfortable with
the project going forward and that an end buyer would be found.
Commissioner Rubenstein stated that having a 2-story house next to the existing would
devalue it.
Commissioner Elliott stated the only way he would approve a speculatively built Richfield
Rediscovered home would be with a three foot easement.
A roll call vote was requested.
M/Elliott, S/Supple that the following resolution be approved:
HRA RESOLUTION NO. 1197
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
6637 5TH AVENUE TO ENDRES CUSTOM HOMES, INC
Motion carried 3-2. (Supple, Elliott, Gepner voted yea; Goettel, Rubenstein voted no). This
resolution appears as HRA Resolution No. 1197.
Mr. Endres asked how staff arrived at a three foot easement.
Assistant Community Development Director Barton responded that it was determined in
conjunction with the Public Works Department.
Item #4 CONSIDERATION OF A RESOLUTION AUTHORIZING THE SALE OF 2517 WEST
76TH STREET TO THE GREATER METROPOLITAN HOUSING CORPORATION
AND APPROVE A CONTRACT FOR DEVELOPMENT WITH THE GREATER
METROPOLITAN HOUSING CORPORATION FOR THE DEVELOPMENT OF FIVE
TOWNHOMES S.R. NO. 10
Assistant Community Development Director Barton presented Staff Report No. 10.
Commissioner Elliott asked if staff had done an analysis to determine if the $100,000 HRA
contribution to the project was appropriate.
HRA Meeting -3- March 16,2015
Assistant Community Development Director Barton responded that staff believed the
$100,000 was appropriate and GMHC would only be reimbursed for eligible costs they incurred up
to the $100,000.
Commissioner Goettel asked why the garage doors are still in front of the home.
Julia Spencer, representative from GHMC, stated that they are located in front of the home,
but they have different garage doors and styles of doors, and that there would be little green space
if the garages were located anywhere else.
Commissioner Gepner asked if it is still the sale of the land for$1 and the $100,000 for the
project.
Assistant Community Development Director Barton responded yes.
Community Development Director Stark also explained the reasons why the driveways could
not be located in the rear of the lots due to variances needed and the extensive loss of green
space.
M/Gepner, S/Rubenstein that the following resolution be approved:
HRA RESOLUTION NO. 1198
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
2517 WEST 76TH STREET TO THE GREATER METROPOLITAN HOUSING COPRPORATION IN
ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT
Motion carried 5-0. This resolution appears as HRA Resolution No. 1198.
Item #5 CONSIDERATION OF A RESOLUTION AUTHORIZING AN INTERFUND LOAN
FOR THE ADVANCE OF PROPERTY-ACQUISITION COSTS IN THE CEDAR
AVENUE TAX INCREMENT FINANCING DISTRICT S.R. NO. 11
Assistant Community Development Director Barton presented Staff Report No. 11.
Commissioner Gepner asked how staff came up with the loan amount.
Assistant Community Development Director Barton responded that it was based on the two
homes now available and another house if it would become available.
There was general discussion as to how the acquired properties would be maintained and
their potential impact on the remaining neighborhood.
M/Goettel, S/Rubenstein that the following resolution be approved:
HRA RESOLUTION NO. 1199
RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN
CONNECTION WITH PROPERTY LOC T DI WITH
RICT IN CEDAR AVENUE TAX INCREMENT
Motion carried 5-0. This resolution appears as HRA Resolution No. 1199.
Item #6 CONSIDERATION OF A RESOLUTION AUTHORIZING THE PURCHASE OF REAL
PROPERTY AT 6333 AND 6401 16TH AVENUE S.R. NO. 12
Assistant Community Development Director Barton presented Staff Report No. 12.
HRA Meeting -4- March 16,2015
Commissioner Gepner asked if the homes were acquired later would it cost considerably
more.
Assistant Community Development Director Barton responded yes it would.
M/Gepner, S/Elliott that the following resolution be approved:
HRA RESOLUTION NO. 1200
RESOLUTION AUTHORIZING
OF RE DIRECTOR
AT06333 AND 16THCHAIRPERSON O NEGOTIATE
AND
6401 16TH AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 1200.
Item #7 HRA DISCUSSION ITEMS
Commissioner Rubenstein reported on her attendance at the Southdale Library to hear
about places to relocate services. She stated that she has asked Hennepin County to be sure to
include Richfield in on any future development there.
Commissioner Goettel asked for a status update on the Housing Policy Task Force.
Assistant Community Development Director Barton responded that they would reconvene
now that the Market Rate Rental Property Market Analysis is complete.
Item #8 EXECUTIVE DIRECTOR REPORT
None.
Item #9 CLAIMS AND PAYROLL
M/Goettel, S/Elliott that the following claims and payrolls be approved:
U.S. BANK 03/16/15
Section 8 Checks: 126493-126584 $ 167,213.85
HRA Checks: 32204-32231 $ 20,570.15
TOTAL 187,784.00
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:58 p.m.
Date Approved: April 20, 2015
Mary B. Supple
HRA Chair
Steven L. Devich Steven L. Devich
Acting City Clerk Executive Director
AGENDA ITEM# 3
REPORT# 13
STAFF REPORT
(A,c;ee HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
APRIL 20, 2015
REPORT PREPARED BY: JULIE URBAN, HOUSING SPECIALIST
NAME,TITLE
REPORT PRESENTER: KAREN BARTON,ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: .
An'ItY
REVIEWED BY EXECUTIVE DIRECTOR: J �/`�, /
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the purchase of real property located at 7309 10th
Avenue through the Richfield Rediscovered Program.
I. RECOMMENDED ACTION:
By Motion: Approve the resolution authorizing the purchase of real
property located at 7309 10th Avenue through the Richfield
Rediscovered Program.
II. EXECUTIVE SUMMARY
The owners of 7309 10th Avenue have expressed an interest in selling the property
to the Housing and Redevelopment Authority (HRA). The 940 square-foot house
and detached one-car garage was recently appraised on behalf of the HRA at
$93,000.
The house was evaluated and determined to meet the substandard criteria. The
HRA would acquire the property for the appraised value of$93,000. Subsequently,
the house and garage will be demolished and the 75-foot wide vacant lot marketed
for sale through the Richfield Rediscovered Program.
042015 Acquisition 7309 10th.docx
The HRA also purchased the house across the street at 7308 10th Avenue in 2014
for $93,000. The lot was sold in February 2015, and a new home is currently under
construction on that lot.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• The 940 square foot one-story, slab-on-grade house was built in 1952.
It has two small bedrooms, one bathroom, and a one-car detached
garage.
• The property has been listed for sale for over a year.
• An independent evaluation was conducted and concluded that the
house is structurally and functionally substandard, containing many
code and structural deficiencies that would be difficult to correct.
B. POLICY
• The 2008-2018 Richfield Comprehensive Plan states as policy:
o Encourage the creation of "move-up" housing through new
construction and home remodeling.
o Promote the development of a balanced housing stock that is
available to a range of income levels.
• Through the City's Richfield Rediscovered Program, the HRA
purchases and removes substandard and functionally obsolete housing
and replaces it with newer, higher valued homes.
C. CRITICAL TIMING ISSUES
• A purchase agreement was submitted to the property owners
contingent upon HRA approval.
• The property owners are seeking a settlement with their mortgage
lender. The bank will need to agree to the sale before it can move
forward. It is unknown when the bank will respond to the HRA's offer.
D. FINANCIAL
• The property appraised at $93,000.
• Funding is available for this acquisition and demolition in the HRA's
2015 Budget under the Richfield Rediscovered Program.
E. LEGAL
• Legal counsel has reviewed the purchase agreement.
IV. ALTERNATIVE RECOMMENDATION(S)
• Do not authorize the purchase of the property.
V. ATTACHMENTS
• Resolution
• Photo of existing structure
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 7309 10TH AVENUE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota ("the HRA") desires to purchase certain real property pursuant to and
in furtherance of the Richfield Rediscovered Program, said property being described as:
7309 10th Avenue
Legal: Lot 15, Block 4, "Fallden's Third Addition," Hennepin County, Minnesota
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, Housing and Redevelopment Fund money is available for acquisition
purposes.
NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. The purchase price for the property is approved at $93,000, plus closing
costs, not to exceed $98,000.
2. The Chairperson and Executive Director are authorized to execute a
Purchase Agreement and to take other actions necessary to purchase
the property for the amount set forth in this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota on this 20th day of April, 2015.
Mary B. Supple, Chair
ATTEST:
Doris Rubenstein, Secretary
7309 10th Avenue South
... HO '
a v�
"';mss-4‘;'.-- � F ' z '° `- zMp{7?F� o ' e Y:.
-
•. _- .._ - ....e...___. .. r' .2-m+, fin+
I