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06-28-05 agendaCITY OF RICHFIELD TUESDAY, JUNE 28, 2005 SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL EXECUTIVE CONFERENCE ROOM 12:00 P.M. AGENDA Call to order HRA approval of agenda 2. Consideration of resolution establishing just compensation and authorizing purchase of single family detached home at 6608-17th Avenue Staff Report No. 25 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 # 2 REPORT # 7 S STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 28, 2005 REPORT PREPARED BY: KATIA MEDVETSKI, REDEVELOPMENT SPECIALIST NAME, TITLE REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE ITEM FOR HRA CONSIDERATION: Consideration of a resolution establishing just compensation and authorizing the purchase of a sin le famil detached home at 6608 17th Avenue. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution establishing just com ensation and authorizin the urchase of 6608 17th Avenue. II. BACKGROUND • A single family, detached home located at 6608 17th Avenue was listed for sale by the owner-occupant. • Staff and City Council members thought it appropriate to pursue purchase of the property at this time. • The purchase of the property makes it possible for the homeowner to proceed with their plans and minimizes the negative impacts of an uncertain future for the homeowner. • Plans for this portion of 17th Avenue will be solidified in the next two-three months. The house may be needed for the alignment of the new intersection at approximately 17th Avenue and 66th Street; it may be needed to help provide a 062805Special_6608-17thAve site for a new liquor store or it may become a site for smaller commercial redevelopment adjacent to 66th Street. • While the future of the property will be decided in the next couple of months the earliest the property would be needed would be in about one year. The Housing and Redevelopment Authority (HRA) is well suited to manage a property for the duration. • The appraisal report for the property was recently completed. The certified fair market value of the property is $219,000. • The property owners may also be eligible for relocation benefits. These benefits will be calculated. separately in accordance with the Uniform Relocation Act, as amended. • The Planning Commission will consider a finding of consistency with the Comprehensive Plan on June 27, 2005 at their regular meeting. III. BASIS OF RECOMMENDATION A. POLICY • In past situations the HRA has purchased and held property for future redevelopment needs. B. CRITICAL ISSUES • The property owners have identified a new, replacement home and time is of the essence to close on the purchase of this property. C. FINANCIAL • The HRA would recoup the funds from the City should the use of the property be public or from a developer should the use be private as part of a future redevelopment. D. LEGAL • Legal counsel has reviewed the proposal and the resolution. IV. ALTERNATIVE RECOMMENDATION(S~ • Delay acquisition of this property. • Direct staff to not proceed with purchase. V. ATTACHMENTS • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A HRA RESOLUTION NO. RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6608 17TH AVENUE WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield (the "HRA") desires to purchase certain real property, said property being described as: 6608 17th Avenue: Lot 2, Block 1, Cedar Sunrise Addition, Hennepin County, Minnesota; and WHEREAS, the HRA is authorized by Minnesota Statutes, Section 469.012 to acquire real property within its area of operation; and WHEREAS, an appraisal for the subject property has been made by a qualified, independent professional appraiser to determine fair market value of real estate in the amount of $219,000; and WHEREAS, Development Account funds are available for acquisition purposes; and WHEREAS, the Planning Commission has made a finding of consistency of said acquisition with the Comprehensive Plan pursuant to Minnesota Statutes, Section 462.356; and WHEREAS, the property owners have agreed to sell said property in the amount of said fair market value. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. That the just compensation in the amount of $219,000 is hereby approved. 2. That the HRA is authorized to acquire said .property in the amount of the just compensation. 3. That the Chairperson and Executive Director are authorized to execute a purchase agreement and to take other actions necessary to acquire the property depicted above and relocate the property owners and other qualified individuals, if any, in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 28th day of June, 2005. Thomas E. Harms, Chair ATTEST: Kristal Stokes, Secretary 062805S peci al_6608-17thAve