06-20-05 agendaCITY OF RICHFIELD, MINNESOTA
MONDAY, JUNE 20, 2005
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7 P.M.
AGENDA
Call to order
1. Approval of minutes of Regular HRA Meeting of May 16, 2005
Notes:
2. HRA approval of agenda
3. Consent Calendar contains several separate items which are acted upon by the HRA in
one motion. Once the Consent Calendar has been approved, the individual items and
recommended actions have also been approved. No further HRA action is necessary.
However, any HRA Commissioner may request that an item be removed from the
Consent Calendar and placed on the regular agenda for HRA discussion and action. All
items listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of resolution authorizing HRA not to waive monetary limits
on municipal tort liability established by Minnesota Statutes 466.04 S.R. No. 21
Notes:
4. Consideration of resolution authorizing purchase of real property at 6812 Emerson
Lane with development opportunities funds
Staff Report No. 22
Notes:
5. Consideration of resolution authorizing modification to redevelopment plan for Richfield
Redevelopment Project Area (Cedar Point Development Area)
Staff Report No. 23
Notes:
6. Consideration of resolution establishing just compensation and authorizing purchase of
6300-6320 Cedar Avenue (Cedar Point Project)
Notes:
Staff Report No. 24
7. Executive Director report
8. 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.
~i
STAFF REPORT
AGENDA ITEM #
REPORT #
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JUNE 20, 2005
24
REPORT PREPARED BY:
KATIA MEDVETSKI,
REDEVELOPMENT SPECIALIST
NAME, TITLE
REPORT PRESENTER:
BRUCE PALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution establishing just compensation and authorizing the purchase of
6300-6320 Cedar Avenue Cedar Point Pro~ect .
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution establishing just
compensation and authorizing the purchase of 6300-6320 Cedar
Avenue (Cedar Point P
II. BACKGROUND
• On January 18, 2005, the Richfield Housing and Redevelopment Authority
(HRA) approved a Cooperative Agreement (Agreement) with Hennepin County
for the Cedar Point Project.
• The Agreement provides $2.0 million of the County's Multi-Jurisdictional Project
Funds (MJP Funds) for assisting in acquisition, relocation, and other site
assembly activities in Cedar Point Development Area.
• Real estate and fixture appraisals were recently completed for the freight
handling business located at 6300-6320 Cedar Avenue; sod/landscaping
business at 6500 Cedar Avenue; and apartment building at 6528 Cedar Avenue.
• The appraised values for these properties are listed in the chart that follows.
0810046520Cedar
APPRAISED VALUES
Propert Address Real Estate Fixtures Total
6300-6320 Cedar Avenue $430,000 $12,820 $442,820
6500 Cedar Avenue $215,000 $15,855 $230,855
6528 Cedar AVenue $665,000 N/A $665,000
• Staff is recommending just compensation in the amounts listed above so that
acquisition may begin.
• Conworth, Inc. is assisting the HRA in providing acquisition, relocation and other
related services for this project.
III. BASIS OF RECOMMENDATION
A. POLICY
• The Agreement provides the HRA the authority to use MJP Funds to
purchase certain properties for the Cedar Point Project.
• A Modification to the Redevelopment Plan for the Richfield
Redevelopment Project Area, Cedar Point Development Area, (Modified
Plan) provides the HRA with the authority to undertake acquisition and
other activities listed in the Modified Plan.
B. CRITICAL ISSUES
• The Modified Plan was approved by the City Council on June 14, 2005
and, at this writing, is scheduled for consideration by the HRA on June
20, 2005 (prior to the action on this staff report item).
• The Contract for Private Development with the developer of Cedar Point,
Ryan Companies US, Inc., stipulates that the HRA undertake the
acquisition of the subject properties for project.
• Approval of just compensation and acquisition for the subject properties
will allow Conworth to present offers for property purchases to property
owners.
• Property owners and tenants may also be eligibile for relocation benefits
in accordance with the Uniform Relocation Act.
C. FINANCIAL
• MJP Funds will be used for acquisition and other qualified costs.
D. LEGAL
• Legal counsel has been working with staff and Conworth on this project
and has prepared the attached resolution.
IV. ALTERNATIVE RECOMMENDATION~S~
• Delay the approval of just compensation and acquisition of the subject properties
and direct staff on further procedure.
• Do not approve just compensation and acquisition of the subject properties and
direct staff on further procedure.
V. ATTACHMENTS
• Resolution (distributed at the HRA meeting)
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
-1 ~r~ ~
HRA RESOLUTION NO. ~on~ ~a?~
RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING
PURCHASE OF REAL PROPERTY LOCATED AT
6300-6320, 6500, AND 6528 CEDAR AVENUE
(CEDAR POINT PROJECT)
WHEREAS, on January 18, 2005, the Housing and Redevelopment Authority in and
for the City of Richfield (the "HRA") approved a Cooperative Agreement (the "Agreement")
with Hennepin County, the City of Richfield, and the Hennepin County Housing and
Redevelopment Authority, for the provision of $2.0 million of multi jurisdictional project
funds for assistance in acquisition and other activities in the Cedar Point Development
Area; and
WHEREAS, on October 18, 2004, the HRA approved a Contract for the Priva#e
Development with Ryan Companies US, Inc. for the development of the Cedar Point Area
that was subsequently revised and approved on May 16, 2005; and
WHEREAS, on June 20, 2005, the HRA approved a Modification to the
Redevelopment Plan for the Richfield Redevelopment Project Area, Cedar Point
Development Area (the "Modified Plan") that refined the Redevelopment Plan as it relates
to the Cedar Point area; and
WHEREAS, within the Cedar Point area, there is real property identified for
purchase as follows:
Property Address Legal Description
6300 Cedar Avenue Lot 5 and the North 33 feet of Lot 4 and the South 17 feet of
.Lot 6, Block 3, Iverson's 3rd Addition, Hennepin County,
Minnesota
6320 Cedar Avenue South The South 67 feet of Lot 4, Block 3, Iverson's 3rd Addition,
Hennepin County, Minnesota
6500 Cedar Avenue Lot 6 and the North 25 feet of Lot 5, Block 1, Iverson's 3rd
Addition, Hennepin County, Minnesota
6528 Cedar Avenue Lot 3 and the North 46 feet of Lot 2, Block 1, Iverson's 3rd
Addition, Hennepin County, Minnesota
WHEREAS, the HRA is authorized by Minnesota Statutes to acquire real property
within its corporate boundaries; and
WHEREAS, the HRA has caused appraisals for the subject property to be made by
qualified independent professional appraisers to determine fair market value of real estate
and fixtures as depicted in Exhibit A; and
WHEREAS, the HRA or its authorized acquisition/negotiation/relocation consultant,
Conworth, Inc., (the "Agent") is authorized to negotiate for the purchase of property and to
extend .purchase offers to property owners in the amount equal to the appraised values
depicted in Exhibit A.
0810046520Cedar
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 amounts depicted in Exhibit A are hereby approved.
2. That the HRA's Agent is authorized to present purchase offers of the approved amount
to the property owners, and to negotiate other terms and conditions of purchase subject
to approval by the HRA.
3. That the Executive Director is authorized to undertake other actions necessary to
acquire the properties depicted in Exhibit A and relocate tenants in accordance with the
Uniform Relocation Act, as applicable
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of June, 2005.
Thomas E. Harms, Chair
ATTEST:.
Kristal Stokes, Secretary
EXHIBIT A
APPRAISED VALUES
Propert Address Real Estate Fixtures Total
6300-6320 Cedar Avenue $430,000 $12,820 $442,820
6500 Cedar Avenue $215,000 $15,855 $230,855
6528 Cedar Avenue $665,000 N/A $665,000
0810046520Cedar
AGENDA ITEM # rj
REPORT # 23
STAFF REPORT
~ HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JUNE 20, 2005
REPORT PREPARED BY:
KATIA MEDVETSKI,
REDEVELOPMENT SPECIALIST
NAME, TITLE
REPORT PRESENTER:
BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of resolution approving a Modification to the Redevelopment Plan for the
Richfield Redevelo ment Pro~ect Area Cedar Point Develo ment Area .
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution approving a Modification to
the Redevelopment Plan for the Richfield Redevelopment Project
Area (Cedar Point Development Area).
II. BACKGROUND
• On May 16, 2005 the Richfield Housing and Redevelopment Authority (the
"HRA") requested the City Council take certain actions with respect to a
modification of the Redevelopment Plan for the Richfield Redevelopment Project
Area.
• On May 24, 2005 the City Council made a motion to set a public hearing date on
the proposed plan modification for June 14, 2005.
• As stated previously to the HRA, the purpose of the plan modification is to
incorporate the Cedar Point Development Area into the redevelopment plan.
JBD-263979v1
RC125-239
• The Cedar Point Development Area is located within the overall Richfield
Redevelopment Project Area (the "Project Area"). (See Map #1 -Richfield
Redevelopment Project Area Boundary and Map #2 -Richfield Redevelopment
Project Area Modification -Cedar Point Development Area.)
• The Project Area boundary is not being changed.
• The following summary highlights the Modification to the Redevelopment Plan for
the Richfield Redevelopment Project Area (Cedar Point Development Area) (the
"Modified Plan").
Section A. Foreword The main purpose of the Modified Plan is to facilitate the
implementation of land use and development changes in the Cedar Point
Development Area that is impacted by the operations at the Minneapolis-St. Paul
International Airport.
Section B. Statement of Public Purpose sets forth the determination that the
Cedar Point Development Area is considered "blighted" in accordance with
Minnesota Statutes, Section 469.002, Subd. 11 and Minnesota Statutues,
Section 469.028, Subd. 3 after review of comprehensive studies that examined
the impact of operations at the Minneapolis-St. Paul International airport over the
years on the Richfield community and the projected low frequency noise levels
resulting from the operation of the new North/South (17/35) Runway at the
airport, all documented within the "Blight Assessment Report -Richfield
Redevelopment Project Area Modification -Cedar Point Area," dated June 3,
2005 by Cornejo Consulting (the "Blight Assessment Report").
The purpose of the Blight Assessment Report is to support the Modified Plan by
analyzing the physical conditions of the Cedar Point Development Area and
public policy evidenced through a number of key studies, committee analyses,
and legislative initiatives and actions relative to airport operations and projected
low frequency noise, impacting the Cedar Point Development Area.. The Blight
Assessment Report is a comprehensive document that summarizes the findings
made by the Governor's Airport Community Stabilization Funding Task Force
Final Report -January 15, 2000, Low Frequency Noise Policy Committee Report
-August 10, 2000, and City of Richfield, including The Cedar Avenue Corridor
Redevelopment Concept Master Plan and Comprehensive Plan amendment
designating the Cedar Point Development Area "Regional Commercial/Office".
Attachment D (Detailed Analysis of Blight Conditions) of the Blight Assessment
Report provides an in-depth description for the summarized chart findings
located at Attachment C (Cedar Point Area Blight Assessment Criteria Chart).
Photos at Attachment E provide a visual aid for a review of the Cedar Point
Development Area.
Section C. Statutory Authority provides the background statutory citation for
the undertaking of the Modified Plan.
Section D. Statement of Goals and Objectives has been expanded to add two
new goals (#7 and #8) and eight new objectives (#23 through #30) to the
Modified Plan document. The new goals and objectives specifically address
JBD-263979v1
RC125-239
items not considered before by the plan, although much activity has occurred
throughout the years relating to airport noise mitigation matters and other
redevelopment subprojects within the Project Area. Some of the objectives
evolved from items specific to the Cedar Point Development Area that are
proposed to be implemented in the broader Project Area based on planning
studies undertaken to date.
Section E. Description of the Redevelopment Project Area reinforces that
the boundary of the Project Area is not being changed.
Section F. Development Activities and Agreements provides for the private
and public activities to be undertaken in the Cedar Point Development Area. The
major private activities include acquisition/relocation of 33 single family homes;
minimum improvements to include a SuperTarget and Home Depot with an
additional 61,200 square feet on in-line, freestanding retail; and partial
contribution to the construction of a new intersection at 66th Street and
approximately 17th Avenue. (See full list of private development activities on
page 7 of the Modified Plan.) The major public activities include
acquisition/relocation of five properties still in private ownership; acquisition of 62
properties, mostly vacant land, from the City; conveyance of 67 properties to the
developer (this includes a number of remnant properties from the 66th
Street/Trunk Highway 77 interchange reconstruction); and construction of public
infrastructure including transit-related amenities, new intersection at 66th Street
and 17th Avenue, greenway/parkway, enhanced streetscape.
Section G. Public Development Cost; Proceeds; Financing lists the various
sources of revenue received and used over the years for airport noise mitigation.
The primary source of financing to be received by the developer will be a tax
abatement (most recently approved by the City on May 24, 2005).
Section H. Proposed Land Use indicates the land uses by type in the Cedar
Point Development Area. The Planning Commission and City previously (in
2004) adopted resolutions to amend the Comprehensive Plan designation for the
Cedar Point Development Area to "Regional Commercial/Office" to
accommodate the proposed retail improvements.
Section I. Acquisition, Relocation, and Rehabilitation Activities provides a
comprehensive list of all the properties in the Cedar Point Development Area,
broken down by public and private acquiring parties. Note that there is no
rehabilitation program in the Cedar Point Development Area. (This title is
maintained for purposes of the plan document itself.)
Section J. Environmental Considerations is a general plan paragraph. As
implementation of the Cedar Point Development Area progresses, exact
environmental studies will be determined and carried out.
JBD-263979v1
RC 125-239
Section K. Administration of the Project Area states the HRA is the
administering agent of the overall Project Area, including the Cedar Point
Development Area.
• On June 13, 2005, the Planning Commission found the Modified Plan to be in
conformance with the Comprehensive Plan for the city.
• On June 14, 2005, the City Council held a public hearing and approved the
Modified Plan.
• Approval of the Modified Plan by the HRA will make it possible for the developer
(and HRA) to proceed with property acquisitions and other necessary project
activities.
III. BASIS OF RECOMMENDATION
A. POLICY
• Minnesota Statutes, Chapter 469, provides for the procedural
requirements for the undertaking of a modification to a redevelopment
plan, including a public hearing by the governing body.
B. CRITICAL ISSUES
• The Contract for Private Development between the HRA and Ryan
Companies US, Inc., calls for the proposed development of the Cedar
Point Area to be undertaken in accordance with a Redevelopment
Plan.
• The Modified Plan incorporates the Cedar Point Area and provides for
certain activities to occur.
• A blight assessment study was required to support the Modified Plan
by making the necessary findings for the Development Area. This
study was undertaken by Cornejo Consulting, as approved by the HRA
on May 16, 2005 through a Professional Services Agreement.
• The HRA's approval is the final approval required before implementing
the Modified Plan. This approval will make it possible for acquisition
and other site activities to proceed.
C. FINANCIAL
• The Modified Plan indicates the various funding sources for acquisition
activities. The developer will receive a tax abatement to make the
project financially feasible.
D. LEGAL
• The following key actions were taken for the Cedar Point Development
Area:
- On July 26, 2004, the Planning Commission amended the
Comprehensive Plan to change the designation of properties in the
JBD-263979v1
RC 125-239
Cedar Point Area from Single Family Residential, Single Family
Residential High Density, and Community Commercial to Regional
Commercial/Office.
- On September 16, 2004, the City Council held a public hearing and
adopted a resolution also changing the designation of properties to
Regional Commercial/Office.
- On November 1, 2004, the City received a notice from the
Metropolitan Council that administrative approval was granted to
the Comprehensive Plan amendment and that no further formal
action by the Metropolitan Council (or City Council) was needed.
- On October 18, 2004, the HRA approved a Contract for Private
Development with the developer of the Cedar Point Area. A
subsequent revised Contract was approved on May 16, 2005.
- On June 2, 2005, a legal notice of pubic hearing was published in
the Sun Current newspaper.
- On June 13, 2005, the Planning Commission found the Modified
Plan to be in conformance with the Comprehensive Plan for the
city.
- On June 14, 2005, the City Council held a public hearing and
approved the Modified Plan.
The Modified Plan and Blight Assessment Report were reviewed by
legal counsel
The HRA resolution approving the Modified Plan was prepared by legal
counsel.
IV. ALTERNATIVE RECOMMENDATION(S~
• Delay approval of the Modified Plan and direct staff on further process and
procedure. Delaying implementation of the Modified Plan will impact
acquisition activities.
• Do not approve the Modified Plan. Taking this action will delay and
preclude the project from proceeding.
V. ATTACHMENTS
• Map #1 -Richfield Redevelopment Project Area Boundary
• Map #2 -Richfield Redevelopment Project Area Modification -Cedar Point
Development Area
• Resolution and Exhibit A -Blight Assessment Report
• Modified Plan
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• .Dan Cornejo, Cornejo Consulting
JBD-263979v1
RC125-239
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MAP #2
CITY OF
RICHFIELD
RICHFIELD
REDEVELOPMENT
PROJECT AREA
MODIFICATION
Legend
Cedar Point
® Development
Area
n °b u l I ~ I I ~«
100 0 100 200 300 400 500 600 Feet N
JUNE, 2005
I/GIS/COMDEV/STAFF/BILUPROJECTS/CEDAR PT REDEV ASSESSMT. APR
2
HRA RESOLUTION NO.
RESOLUTION APPROVING MODIFICATIONS
TO THE REDEVELOPMENT PLAN FOR THE
RICHFIELD REDEVELOPMENT PROJECT AREA
(Cedar Point Development)
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield (the "Authority") did on or about June 14, 1993 originally adopt the
Redevelopment Plan for the Richfield Redevelopment Project Area, pursuant to the
provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"), and has
subsequently modified the same thereafter; and
WHEREAS, pursuant to the HRA Act the Authority proposes to modify the
Redevelopment Plan; and
WHEREAS, the Authority has caused to be prepared a Modification to the
Redevelopment Plan for the Richfield Redevelopment Project Area (Cedar Point
Development Area) (the "Modified Plan"), and has received the written opinion of the
Planning Commission of the City; and
WHEREAS, the Authority has requested that the City Council hold a public
hearing on the proposed Modified Plan; and
WHEREAS, the City Council did on June 13, 2005, based on such reference and
following notice as required by law, hold its hearing on the approval of the Modified
Plan, and has provided the Authority with its findings regarding such modifications; and
WHEREAS, the Authority has considered the Modified Plan at its regularly
scheduled meeting of June 20, 2005.
NOW THEREFORE, BE IT RESOLVED by the Authority as follows:
The Authority makes the following findings:
1. the land in the project area would not be made available for
redevelopment without the financial aid to be sought;
2. the Modified Plan will afford maximum opportunity, consistent with
the needs of the city as a whole, for the redevelopment of the areas
by private enterprise; and
3. the Modified Plan conforms to a general plan for the development
of the city as a whole; and
4. based on the information contained in Exhibit A and information
presented at the hearing and otherwise known to the Authority, the
JBD-263979v1
RC125-239
portion of the Richfield Redevelopment Project Area comprising the
proposed Cedar Point Development is blighted within the meaning
of Minnesota Statutes, Sections 469.002 and 469.028.
II. The Authority hereby approves the Modified Plan and makes all of the
findings stated therein. The approved Modified Plan is on file in the
Richfield Community Development Department, and is available for public
inspection during regular business hours.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of June, 2005.
Thomas E. Harms, Chair
ATTEST:
Kristal Stokes, Secretary
JBD-263979v1
RC125-239 4
The Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota
Modification to the Redevelopment Plan
for the
Richfield Redevelopment Project Area
(Cedar Point Development)
Dated: June 3, 2005
For Planning Commission Consideration on Jun 13, 2005
For City Council Consideration on June 14, 2005
For HRA Consideration on June 20, 2005
Prepared By:
Dan Cornejo
CORNEJO CONSULTING
1657 Saunders Avenue
Saint Paul, MN 55116
(651) 699-1927
Richfield Housing and Redevelopment Authority
6700 Portland Avenue South
Richfield, MN 55423
(612) 861-9760.
Modification to the Redevelopment Plan
for the
Richfield Redevelopment Project Area
(Cedar Point Development)
TABLE OF CONTENTS Page
A. Foreward 3
B. Statement of Public Pur ose 3
C. Statutor Authorit -Redevelo ment Plan Modification 3
D. Statement of Goals and Ob'ectives 4
E. Descri tion of Redevelo ment Pro'ect Area 6
F. Develo ment Activities and A reements 6
G. Public Redevelo ment Costs; Proceeds; Financin 8
H. Pro osed Land Use g
I. Ac uisition, Relocation, and Rehabilitation Activities 9
J. Environmental Considerations 10
K. Administration of Pro'ect Area 10
A endix A: Ma of Richfield Redevelo ment Pro'ect Area
A endix B: Ma of Cedar Point Develo ment Area
MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE
RICHFIELD REDEVELOPMENT PROJECT AREA
(CEDAR POINT DEVELOPMENT)
A. FOREWARD
The following text represents a Modification to the Redevelopment Plan for the Richfield
Redevelopment Project Area. This Modification represents a continuation of the goals and objectives
set forth in the Redevelopment Plan for the Richfield Redevelopment Project Area. It also is intended
to facilitate the implementation of land use and development changes in the Cedar Point Development
Area, as such area is depicted on the map at Appendix B, to address blighting conditions, including the
significant and unique, adverse environmental and socioeconomic conditions directly associated with
the current operation of the nearby Minneapolis-St. Paul International Airport and the anticipated
operation of the new North/South (17/35) Runway in late 2005.
For further information, a review of the Redevelopment Plan for the Richfield Redevelopment
Project Area, adopted June 14, 1993, is recommended and available in the Community Development
Department at the City of Richfield.
B. STATEMENT OF PUBLIC PURPOSE
Comprehensive environmental studies that examined the projected low frequency noise levels
associated with the operation of the new North/South (17/35) Runway at the Minneapolis-St. Paul
International Airport resulted in a mitigation plan that provides for the redevelopment of Richfield's
east side into a more compatible use.
A comprehensive review of the portion of the Richfield Redevelopment Project Area (the
"Project Area") comprising the Cedar Point Development Area concluded that such portion is blighted
within the meaning of the Minnesota Statutes, Section 469.002, Subd. 11 and Section 469.028, Subd.
3. A copy of the Blight Assessment Report -Richfield Redevelopment Project Area Modification -
Cedar Point Area, dated June 3, 2005, is on file and available in the Community Development
Department at the City of Richfield.
Therefore, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "HRA") and the City Council of the City of Richfield (the. "City") have determined
that public intervention is necessary in the Cedar Point Development Area in order to achieve set goals
and objectives for proper redevelopment of the area.
C. STATUTORY AUTHORITY - REDEVLOPMENT PLAN MODIFICATION
The HRA determines that it is necessary, desirable, and in the public interest to undertake a
Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area (the "Modified
Plan") pursuant to the provisions of Minnesota Statutes, Chapter 469.
Pursuant to Minnesota Statutes. Section 469.029, Subd. 6, a redevelopment plan may be
modified at any time provided that the HRA and City Council adopt such modifications upon the
notice and after the public hearing required for the original adoption of the redevelopment plan. If the
HRA determines the necessity of changes in an approved redevelopment plan or approved
3
modification thereof, which changes do not alter or affect the exterior boundaries, or do not
substantially alter or affect the general land uses established in such plan, then such changes shall not
constitute a modification of the Redevelopment Plan nor require approval by the governing body of
the political subdivision in which the project is located.
D. STATEMENT OF GOALS AND OBJECTIVES
The following goals were originally established in 1993. The current Modified
Redevelopment Plan adds two additional goals (shown in bold face).
To provide a revenue base to meet the needs of Richfield.
2. To develop job opportunities for area residents.
To develop strategies to encourage revitatlization.
4. To maintain a positive business environment.
5. To enrich the quality of life for residents through planning of the interrelationship of land use.
6. To recognize the needs of all segments of the populace through diversity in housing stock
which is a major determinant of the living environment.
7. To protect the community from the adverse affects of the operations of the Minneapolis-
St. Paul International Airport.
8. To protect the community from the adverse, low frequency noise impacts of the
implementation and operation of the new North/South (17/35) Runway at the
Minneapolis-St. Paul International Airport.
The following objectives were originally established in 1993. The current Modified
Redevelopment Plan adds eight (8) additional objectives to the list (shown in bold face).
To achieve a high level of design quality through use of design features such as
landscaping to enhance the physical environment.
2. To better utilize vacant or underdeveloped land.
3. To improve vehicular circulation by providing a comprehensive system which
provides good, direct access to and from the commercial areas.. To the extent
practical, eliminate commercial traffic from residential streets and minimize vehicular
circulation conflicts or congestion.
4. To achieve a balanced variety of commercial businesses and services appropriate to
the market area.
5. To provide increased employment opportunities.
6. To diversify the tax base of the community.
4
7. To eliminate or reduce the conflicts which result from imcompatible land use relationships,
especially between residential and non-residential.
8. To protect the single-family residences from the adverse effects of nearby commercial
development, roadways, and off-street parking.
9. To utilize landscaping and/or screening between all single-family residential and
commercia]/office uses. Landscaping and/or screening should also be provided along major
thoroughfares which border residential areas.
10. To eliminate unsightly and blighting elements such as exposed trash storage areas, overhead
utility lines, poorly maintained and excessively large billlboards or signs, and deteriorated
structures.
11. To provide for the elimination of blight which is evidenced by irregular sized lots, inadequate
streets, incompatible land uses, physical and functional obsolescence, and inadequate parking.
12. To encourage the sharing of parking facilities and to generally improve the parking and
circulation in the area.
13. To provide public utilities and other public facilities of sufficient quality and size to support
the future development in the area.
14. To provide for an expanded range of housing opportunities in the community, as appropriate.
15. To encourage open lines of communication between all the residents, businesses and city staff.
16. To provide maximum opportunity, consistent with the needs of the city for development by
private enterprise.
17. To coordinate elements of the City's Comprehensive Plan with these project objectives.
18. Provide jobs within close proximity of the residential population and concurrently saving
energy by reducing trip time to jobs.
19. Provide a retail service level required by the residents of the community.
20. Secure the increase of housing, commercial, and industrial property subject to taxation by the
City, Independent School District No. 280, Intermediate School District No. 287, Hennepin
County, City, and other taxing jurisdictions in order to better enable such entitites to pay for
governmental services and programs required to be provided by them.
21. Encourage local business expansion, improvements, rehabilitation, and development,
whenever possible and provide financial incentives for same.
22'. Combine the elements of other City Plans with these project objectives.
23. To facilitate the acquisition and removal of single-family residential and multi-family
residential properties located with the city's airport impact zones.
5
24. To facilitate the acquisition and removal of single-family residential, multi-family
residential, commercial and industrial properties deemed blighted due to a number of
factors including low frequency noise levels associated with the construction and
operation of the new North/South (17/35) Runway at the Minneapolis-St. Paul
International Airport.
25. To facilitate the acquisition of land or space that is vacant, unused, underused,
inappropirately used or contains incompatible land uses.
26. To facilitate the redevelopment of land for the construction of commerciaUretail
development better suited to withstanding airport noise.
27. To provide modern, transit stop plazas with features such as heated structures, lighting,
landscaping, bus pullouts.
28. To provide newer designed, high-volume street intersections able to better control traffic
and interface with pedestrian traffic.
29. To provide bikeways, paths, greenways and parkways for non-vehicular traffic.
30. To provide enhanced streetscape features such as decorative concrete, pedestrian
lighting, landspacing features.
E. DESCRIPTION OF THE REDEVELOPMENT PROJECT AREA
In order to further guide the development and redevelopment of the Project Area, the HRA has
created this Modified Plan.
The boundary for the Richfield Redevelopment Project Area is not being altered. This
Modified Plan is intended to address primarily the area known as the Cedar Point Development Area.
See Appendix A for a map of the Richfield Redevelopment Project Area. See Appendix B for a map
of the Cedar Point Development Area.
F. DEVELOPMENT ACTIVITIES AND AGREEMENTS
General
The objectives of the Modified Plan will be accomplished pursuant to the authority granted to
the HRA by Minnesota Statutes.
Redevelopment within the Project Area must be financially feasible, marketable, and
compatible with long range redevelopment plans of the City and HRA. The following development
activities are appropriate for the area in light of current redevelopment opportunities within the Cedar
Point Development Area:
(1) Property acquisition;
(2) Relocation;
(3) Site clearance; and
(4) Site improvements.
6
Any and all proposals by the developer of Cedar Point will be reviewed by the HRA to
determine conformance with the Modified Plan and applicable municipal ordinances and codes. To
facilitate this effort, the following documents may be requested for review and approval:
(1) Site Plan;
(2) Construction, mechanical, and electrical system drawings;
(3) Landscaping Plan;
(4) Grading and storm drainage plan;
(5) Signage system plan; and
(6) Any other drawings. or narrative deemed by the HRA to demonstrate the conformance
of the development with the Modified Plan.
It is the intention of the HRA that the majority of the redevelopment activities, including but
not limited to acquisition, relocation, site clearance, and improvements be directly undertaken by the
developer with assistance when and where appropriate from the HRA.
The proposal for the Cedar Point Development Area calls for acquisition, relocation,
environmental investigation, site clearance, and construction of new commerciaUretail buildings and
related parking.. Currently, the Cedar Point Development Area comprises one-hundred (100) parcels:
sixty-two (62) are vacant land, many of which have been cleared; thirty-three (33) are occupied. by
single-family houses; three (3) are occupied by residential, multi-family apartment buildings; and two
(2) are occupied by commercial buildings. The subject properties are-owned by the City of Richfield
and various private parties. The Minnesota Department of Transportation (Mn/DOT) has current
control of certain properties along the east side of Cedar Avenue and the north side of East 66th Street
for the reconstruction of the ramps at 66th'Street and Trunk Highway 77. Remnant land from this
right-of--way project will be available for redevelopment in the Cedar Point Development Area.
Description of Anticipated Private Development Activities within the Cedar Point Development
Area
^ Redevelopment of a 29 acre site.
^ Private acquisition of 33 single family homes.
^ Relocation.
^ Environmental investigation and mitigation.
^ Site clearance.
^ Minimum improvements to include a SuperTarget retail merchandise store and Home Depot
home improvement store.
^ Proposed additional improvements to include 61,200 square feet of in-line and freestanding
retail development.
^ Financial contribution to the construction of a new intersection at 66th Street and
approximately 17th Avenue.
Description of Anticipated Public Development Activities within the Cedar Point Development
Area
The proposed public development activities in the Cedar Point Development Area would be
undertaken by the HRA and City in order to support the private development activities and. facilitate
redevelopment in the area in the manner suitable to overall development plans. These activities
include direct financial assistance to the developers to facilitate site assembly.
7
It is proposed that the HRA sell to the developer certain properties ("HRA Property")
described below in Section H. Redevelopment activities would be contingent upon the mutual
agreements set forth in a Contract for Private Development.
^ Acquisition of two (2) residential, multi-family apartment buildings from private owners.
^ Acquisition of three (3) commercial properties from private owners.
^ Acquisition of 62 properties, mostly vacant land, from public owner (City of Richfield).
^ Relocation.
^ Environmental investigation and mitigation.
^ Site clearance.
^ Conveyance of 67 properties to developer.
^ Construction of two transit stop plazas with lighting, heated structures, bicycle storage, cart
corral, landscaping and bus pullouts.
^ Construction of a newly designed, high-volume intersection on 66th .Street and approximately
17th Avenue (roundabout or traditional design).
^ Roadway improvements to link the bridge at Trunk Highway 77 with the new intersection on
66th Street.
^ Highly landscaped greenway/parkway.
^ Enhanced streetscape features (decorative concrete; pedestrian lighting, landscaping features,
etc.).
G. PUBLIC DEVELOPMENT COST; PROCEEDS; FINANCING
The HRA determines that the funding of the necessary activities and improvements in the
Cedar Point Development Area shall be accomplished through the use of private funds from the
developer and public funds to the developer up to the principal amount of $2,068,700, or a lesser
amount as provided for in a Contract for Private Development.
The revenue source of the public funds will be in the form of a property tax abatement, in
accordance with Minnesota Statutes, Sections 469.1812 to 469.1815, as previously approved by the
City of Richfield on May 24, 2005. The following revenue sources have also been provided for
property acquisitions and other site assembly activities in the Cedar Point Development Area:
$2.0 million multi jurisdictional project funds (2005) from Hennepin County for acquisition of
properties and related activities by the HRA;
$7.0 million in funds from the Metropolitan Airports Commission (MAC) (2000) for property
acquired by the City along Cedar Avenue for Truck Highway 77 ramp reconstruction and bridge
widening in which the remnant land will be part of the proposed project; and
$5.0 million in funds appropriated by the 2000 Legislature to the City, and administered by
the then Department of Trade and Economic Development, for the purchase of single family homes
within the 87db noise contours of the airport impact zone.
Also, it is proposed that a special assessment bond, in accordance with Minnesota Statutes,
Chapter 429, may fund transit-related improvements in the Cedar Point Development Area.
H. PROPOSED LAND USE
The current land use in the Cedar Point Development Area is approximately one-third
residential, and two-thirds vacant, with two commercially-used properties. Current zoning is a mix of
8
R (Single Family Residential), C-2 (General Commercial), and MR-3 (Multi-Residential-High
Density). The City of Richfield Planning Commission and City Council have previously adopted
resolutions to amend the Comprehensive Plan designation for the Cedar Point Development Area,
within the Project Area to "Regional CommerciaUOffice" to accommodate a retail center.
The proposed commerciaUretail land use would be consistent with the "Regional
CommerciaUOffice" designation in the Comprehensive Plan.
ACQUISITION, RELOCATION, AND REHABILITATION ACTIVITIES
1. Ac uisition
The HRA intends to acquire the following properties for this project and convey them
to the developer in accordance with the stipulations in a Contract for Private
Development:
6301 Cedar Ave. So. 6315 18th Ave. So. 6412 Cedar Ave. So.
6311 Cedar Ave. So. 6321 18th Ave. So. 6444 Cedar Ave. So.
6315 Cedar Ave. So. 6327 18th Ave. So. 6520 Cedar Ave. So.
6325 Cedar Ave. So. 6333 18th Ave. So. 6300 Cedar Ave. So.
6333 Cedar Ave. So, 6339 18th Ave. So. 6320 Cedar Ave. So.
6341 Cedar Ave. So. 6345 18th Ave. So. 6500 Cedar Ave. So.
6345 Cedar Ave. So. 6401 18th Ave. So. 6528 Cedar Ave. So.
6405 Cedar Ave. So. 6409 18th Ave. So.
6409 Cedar Ave. So. 6415 18th Ave. So.
6417 Cedar Ave. So. 6421 18th Ave. So.
6421 Cedar Ave. So. 6427 18th Ave. So.
-6425 Cedar Ave. So. 6433 18th Ave. So.
6429 Cedar Ave. So. 6439 18th Ave. So.
6437 Cedar Ave. So, 6445 18th Ave. So.
6441 Cedar Ave. So. 6509 18th Ave. So.
6445 Cedar Ave. So. 6515 18th Ave. So.
6501 Cedar Ave. So. 6521 18th Ave. So.
6509 Cedar Ave. So. 6527 18th Ave. So.
6511 Cedar Ave. So. 6533 18th Ave. So.
6521 Cedar Ave. So. 6314 18th Ave. So.
6525 Cedar Ave. So. 6320 18th Ave. So.
6529 Cedar Ave. So. 6326 18th Ave. So.
6333 Cedar Ave. So. 6332 18th Ave. So.
6337 Cedar Ave. So. 6334 18th Ave. So.
1820 66th Street E. 6400 18th Ave. So.
1800 66th Street E. 6408 18th Ave. So.
1720 66th Street E. 6414 18th Ave. So.
1714 66th Street E. 6328 Cedar Ave. So.
1708 -66th Street E. 6344 Cedar Ave. So.
1700 66th Street E. 6400 Cedar Ave. So.
9
The developer, in accordance with the stipulations of the Contract for Private
Development, anticipates the acquisition of the following properties for this project:
6315 17th Ave. So. 6445 17th Ave. So. 6500 18th Ave. So.
6321 17th Ave. So. 6501 17th Ave. So. 6501 18th Ave. So.
6327 17th Ave. So. 6509 17th Ave. So. 6508 18th Ave. So.
6333 17th Ave. So. 6515 17th Ave. So. 6514 18th Ave. So.
6339 17th Ave. So. 6521 17th Ave. So. 6520 18th Ave. So.
6345 17th Ave. So. 6527 17th Ave. So. 6526 18th Ave. So.
6401 17th Ave. So. 6533 17th Ave. So. 6532 18th Ave. So.
6409 17th Ave. So. 6338 18th Ave. So,
6415 17th Ave. So. 6420 18th Ave. So.
6421 17th Ave. So. 6426 18th Ave. So.
6427 17th Ave. So. 6432 18th Ave. So.
6433 17th Ave. So. 6438 18th Ave. So.
6439. 17th Ave. So. 6444 18th Ave. So.
2. Relocation
The HRA is bound by the procedures set forth in the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, as amended and Minnesota
Statutes, Chapter 117.
In the event that the developer, based on information provided by the HRA,
determines that any of the properties it is obligated to acquire is occupied by tenants,
lessees, or other non-owner occupants, the developer will notify the HRA to provide
relocation assistance and benefits to such parties to the extent and at the times
required by applicable law, and the developer shall promptly reimburse the HRA for
these costs.
Rehabilitation Program
No rehabilitation program is currently intended in the Cedar Point Development Area.
J. ENVIRONMENTAL CONSIDERATIONS
All municipal actions, public improvement, and private development shall be carried out in a
manner that will enhance, rather than detract, from the natural environment. All necessary
environmental permits and clearances will be obtained by the developer.
K. ADMINISTRATION OF THE. PROJECT AREA
The administration of the Project Area will be undertaken by HRA officials.
10
APPENDIX A
MAP OF RICHFIELD REDEVELOPMENT PROJECT AREA
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MAP OF CEDAR POINT DEVELOPMENT AREA
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ii
CITY OF
RICHFIELD
RICHFIELD
REDEVELOPMENT
PROJECT AREA
MODIFICATION
Legend
Cedar Point
Development
Area
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66TH ST.
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100 0 100 200 300 400 500 600 Feet N
JUNE, 2005
I/GIS/COMDEV/STAFF/BILUPROJECTS/CEDAR PT REDEV ASSESSMT. APR
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AGENDA ITEM # [~
REPORT # 22
~~' STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JUNE 20, 2005
REPORT PREPARED BY:
REPORT PRESENTER:
MELISSA POExLMAN, COMMUNITY
DEVELOPMENT ASSISTANT COORDINATOR
NAME, TITLE
BRUCE NORDQUIST, HOUSING AND
REDEVELOPMENT MANAGER
DEPARTMENT DIRECTOR REVIEW:
r~!
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of resolution authorizing the purchase of real property located at 6812 Emerson
Lane with Develo ment O ortunities funds.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution authorizing the purchase
of real propert located at 6812 Emerson Lane.
II. BACKGROUND
In March 2005 the Housing and Redevelopment Authority (HRA) authorized staff to
evaluate development alternatives and introduce a concept to the neighborhood at
6812 Emerson Lane. Staff met with the neighborhood on April 11, 2005 and as a
follow-up to that meeting, generated aquestion/answer summary that was mailed to
the neighborhood. The summary is attached. Since the neighborhood received this
information, it has not requested any additional follow-up actions.
The lot area is approximately 1.1 acres, which does not include a narrow strip of
land ten feet wide by 657 feet long, which functioned as an access to 66th Street.
In 1999, the owner received approval for a subdivision waiver, which would allow
them to deed this narrow strip of land to the Minnesota Department of
Transportation (MnDOT). MnDOT was not interested at that time and the land
remains part of this parcel.
062005 6812 Emerson Lane
A recommended development project schedule is attached. If the HRA concurs, a
purchase of the property in July would be possible. After purchase, the HRA will
work with contractors to prepare the site for development by demolishing the current
structures and upgrading sewer and water utilities.
Once prepared for the development, the HRA will work with builder/buyer teams to
create three high-value single-family homes that will be in keeping with the
character of the existing neighborhood.
III. BASIS OF RECOMMENDATION
A. POLICY
• A stated goal of the Richfield 2020 plan is to "sustain, expand, and
continuously improve our housing assets". Evaluation indicates three
value homes can be built on the available land.
• Strategies to achieve this goal include the preservation of the singte-
family character of this neighborhood and preventing multi-unit
housing development.
• The HRA has demonstrated success through its New Home and
Richfield Rediscovered programs in removing housing in poor
condition and providing replacement housing.
• The Planning Commission will consider a finding of consistency with
the Comprehensive Plan on June 27, 2005. The HRA would not
acquire the property if this finding was not made.
B. CRITICAL ISSUES
• The owner has expressed a need to sell and requests an action by the
HRA at this time.
• The participation by the HRA accomplishes multiple purposes:
o Blighting conditions will be removed
o Higher intensity development would be controlled
o Housing design and end values of the new housing can
be reviewed.
• The future of the alleyway north of the main site still needs to be
resolved.
• Development will require Council approval to subdivide and re-plat the
property. Staff is in the process of updating the City's Subdivision
Ordinance and this should not pose a problem.
• The State Historic Preservation Office has concluded that this property
does not have historic significance.
• Proximity to Wood Lake makes this parcel a desirable location.
• Emergency access needs further study. The addition of a fire hydrant
and a turn around area are being discussed.
• The blighted condition of the buildings and the necessary upgrades to
utility services make the site very challenging for an individual buyer.
C. FINANCIAL
• The recommended purchase price based on the owner's offer and
appraisal is $275,000. The HRA's appraisal determined a sale price
of $300,000 which would be recovered by proceeds of sale of three
lots to be established.
• Development Opportunity funds will be used to pay for the installation
of sewer, water, and access and demolition/site preparation activities.
The estimated cost is for these activities is $140,000.
D. LEGAL
• The HRA's standard form purchase agreement will be used to acquire
the property.
• The sale of the property to builder/buyers and consideration of a
development agreement patterned after the one used for Richfield
Rediscovered will include a public hearing by the HRA.
• Legal Counsel will assist in the preparation of documents, the
subdivision, and platting process.
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not authorize the purchase of the property.
V. ATTACHMENTS
• Resolution
• Aerial photograph/potential lot configuration of property
• Key tasks within a time frame
• Q&A sent to neighbors with updated information
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• The Emerson Lane neighborhood has been notified of the pending HRA
consideration.
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6812 EMERSON LANE
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 New Home Program, said property being described as:
6812 Emerson Lane:
As described in Attachment A; and
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, a purchase price has been negotiated based on independent appraisal;
and
WHEREAS, Development Opportunities funds are available for acquisition
purposes.
NOW THEREFORE, BE IT RESOLVED, by the City of Richfield Housing and
Redevelopment Authority:
The purchase price for the property identified is approved at $275,000.
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 June, 2005.
Thomas E. Harms, Chair
ATTEST:
Kristal Stokes, Secretary
032105_6812Emerson Lane_eval
Attachment A
6812 Emerson Lane is described as follows:
That part of Government Lot 6, Section 28, Township 28, North Range 24, West of
the 4th Principle Meridian, described as follows: Commencing at the Northeast
corner of the West 20 acres of said Government Lot 6; thence East along Fort
Snelling and Minnetonka Road 160 feet; thence South to the shore of Wood Lake;
thence along the said Shore to the East line of said 20 acres; thence North to place
of beginning, EXCEPT the North 783 feet thereof; AND EXCEPT that part of
Government Lot 6, Section 28, Township 28, Range 24, Hennepin County,
Minnesota, described as follows, to-wit: Beginning at a point on the West line of Lot
6, "Vehe Addition", 16 feet North of the Southwest corner thereof; thence West on a
line parallel with the Northerly line of said Government Lot 6 a distance of 148.0
feet; thence South on a line parallel with the East line of the West 20 acres of said
Government Lot 6 to its place of intersection with the Northerly line of West 68tH
Street; thence Northeasterly along the Northerly line of said West 68th Street to the
Southwesterly corner of Lot 7, "Vehe Addition"; thence North along the West line of
said Lots 6 and 7, "Vehe Addition", to the point of beginning; AND EXCEPT That
part of Government Lot 6, Section 28, Township 28, Range 24, lying South of the
following described boundary line, to-wit: Commencing at the Southeast corner of
Lot 7, "Vehe Addition"; thence Southwesterly a distance of 135.35 feet to the
Southwest corner of said Lot 7, "Vehe Addition", to the actual point of beginning;
thence continuing Southwesterly on an extension of the South line of said Lot 7,
"Vehe Addition" to the East line of the West 20 acres of Government Lot 6, Section
28, Township 28, Range 24, ALSO; The East 10 feet of the North 783 feet of that
part of Government Lot 6, lying West of the West line of Payton Manor and the
same extended, Section 28, Township 28, Range 24, Hennepin County,
Minnesota, according to the United States Government Survey thereof and situate
in Hennepin County, Minnesota.
ALSO; That part of the south 10 acres of the west 20 acres of Government Lot 6 of
Section 28, Township 28 North, Range 24 West, together with that part of dried up
lake bed of Wood Lake appurtenant thereto, lying easterly of Trunk Highway No. 65
as located and established on March 23, 1956; which lies between two lines run
parallel with and distant 1 foot and 21 feet westerly of the east tine of the above
described tract, northerly of a line run parallel with and distant 1 foot north of the
south line of said tract, and southerly of the following described line: Beginning at a
point on a line run parallel with and distant 783 feet south of the east and west
quarter line of said Section 28, distant 55 feel westerly of its intersection with a line
run parallel with and distant 10 feet west of the west line of Payton Manor extended
southerly; thence run southwesterly to a point on the east line of the above
described tract distant 345 feet north of the southeast corner thereof; thence
continue southwesterly on the last described course for 60 feet and there
terminating:
Except that part of Government Lot 6, Section 28, Township 28, Range 24, shown
as parcel 65A on Minnesota Department of Transportation right of way plat
numbered 27-111 as the same is on file and of record in the office of the county
recorder in and for Hennepin County, Minnesota.
Except the South 12.0 feet or the North 45.0 feet of the following described tract:
the East 10 feet for the North 783 feet of that part of government Lot 6, lying west of
the west line of Payton Manor and the same extended, Section 28, Township 28,
Range 24 Hennepin County, Minnesota, together with right of access, begin the
right of ingress and egress from that part of the above described tract not acquired
to C.S.A.H. No. 53.
6812 Emerson Lane
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Created: 1/21/05, Richfield CD (MP) Feet
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Three lots
6812 Emerson Lane
Richfield, 1~linnesoca
8 March 2005
Key Tasks Within a Time Frame
6812 Emerson Lane
Task Time frame
Acquisition July, 2005
Specification Preparation -Demolition,
Sewer, Water, Access July, 2005
Bidding August 2005
Site Preparation (Demolition, Sewer, Water) September, 2005
Subdivision/Platting
(review by Planning Commission, City
Council) September, 2005
Marketing and Sale September/October, 2005
Sale of parcels
(public hearing by HRA) October, 2005
Construction begins
• New Homes completed
• Road Access Completed November, 2005
May, 2006
June, 2006
Pro'ect Com letion June, 2006
Q&A
• Can a neighbor purchase the property?
The owner has requested that the Housing and Redevelopment Authority (HRA) look into
purchasing the property. Previous owner contact with neighbors did not result in a sale.
• What is the value of the property?
There are multiple valuations of the property including the Estimated Market Value (EMV)
produced by Hennepin County, the appraisal value, and individual opinions of what the
property might be worth. The HRA typically relies on an independent appraisal to
determine value. The Estimated Market Value for property taxes payable in 2005 is
$236,000.
• Could the property remain as is?
The property is currently in a state of deferred maintenance and disrepair.
• What is the difference between a residential zone (R) and a special residential
zone (R-1 )?
The purpose of the R-1 residential zoning district is to reserve and preserve specific
residential areas with a concentration of exceptionally large lots and unique homes. There
are four areas in the City that meet these requirements and are zoned R-1: Apple Lane,
Lynwood and Oak Grove Boulevards, and the Fairwood Park area.
• What will the dimensions of the access road be?
A road width of 20 feet with 5 foot boulevard edges. It has not been determined whether
this would be a public or a private road.
• Is there a market for high-value homes in the area?
Yes. Our experience indicates that $400,000 to $500,000 homes are possible and that
builder/homebuyer teams would be interested in this opportunity.
• What is the distance between the sound wall and the property line?
The distance from the wall to the property line varies from approximately 24 feet to 40 feet.
The distance from the sound wall to possible building locations could be an additional 45
feet due to access road right of way and building setbacks.
• Is there historical significance to the property?
The State Historic Preservation Office considered the possible historical significance and
found the buildings not to be significant.
• We would prefer the division of the property into two lots rather than three.
Division into two lots is an alternative, however this option may make redevelopment less
cost effective. The need for sewer, water, and driveway improvements would be more
cost effective with the development of three homes. The estimated cost of those
improvements is $140,000. Three lots provide lot size and home locations most similar to
the existing neighborhood.
• Are there any ordinances, subdivision restrictions or other City requirements
that would prevent development?
No. The site will be subdivided and platted to delineate individual lots and an access agreement
between parties will be negotiated for the common access road. The builder/homebuyer team will
need to meet all setback and building requirements when designing the homes.
• How will this potential development fit in with the current primarily owner-
occupied housing stock?
Housing at this site would be in keeping with the current size and appearance of homes in
the neighborhood. Three and four bedroom homes with double garages would be likely;
marketed for ownership. Two potential approaches would be 1) to assist current Richfield
home owners being displaced by the expansion of the Crosstown Highway, or 2) to hold a
lottery of qualified builder/homebuyer teams if the interest is high.
• How is the HRA funded?
The HRA receives funds from a variety of sources: federal, state, region, and county. Tax
increment is a local resource often used for redevelopment. Redevelopment activities
throughout the City generate funds that can then be used as seed money for additional
redevelopment projects. No City general fund tax dollars would fund this HRA activity.
• What type of screening will there be between the potential development and
current lots?
A landscape architect can look at the existing vegetation and new ways to maintain privacy
of both current and future homeowners.
• What should be done about the old alley leading north toward 66th Street?
It has not been decided what should be done with the former access alley. Options
include maintaining the alley as a maintenance access-way for the noise wall, creating a
rear access route to current properties via the 6812 Emerson Lane property, adding the
excess property to each of the adjoining owners' property, or there may be additional
options to consider. Neighbors have expressed concern over turning the alley into a bike
path. The alley will NOT become a through street with an outlet onto 66th Street.
• Do neighbors' concerns make a difference?
Neighborhood feedback helps to guide development and to resolve issues and concerns.
Feedback is used to help determine a course of action.
• Would the HRA bring the property infrastructure up to standard and then sell to a
neighbor?
The HRA would seek to develop three single-family homes. A neighbor is one of multiple
potential buyers. Individual lot sales or a combination lot sale could all be considered.
However, if the HRA were involved and contributing to the project, it would do so with
additional redevelopment requirements. These requirements may include setting a
minimum value and design requirements for the constructed homes, establishing
association agreement requirements for the shared areas (access drive), as well as
obtaining the maximum value of the lots in order to recoup project costs.
AGENDA ITEM # 3~
REPORT # 21
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JUNE 20, 2005
REPORT PREPARED BY:
REPORT PRESENTER:
REVIEWED BY HRA
EXECUTIVE DIRECTOR:
STEVEN L. DEVICH, EXECUTIVE
DIRECTOR
NaNrE Ti7zE
STEVEN L. DEVICH, EXECUTIVE
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the HRA not to waive the monetary limits on statutory
munici alit tort liabilit
I. RECOMMENDED ACTION:
By Motion: Adopt a resolution authorizing the HRA not to waive the
monetary limits on municipal tort liability established by Minnesota
Statutes 466.04.
II. BACKGROUND
1 he HRA purchases its insurance from the League of Minnesota Cities Insurance
Trust (LMCIT). A requirement of that insurance coverage is that each participating
municipality must annually either affirm or waive its statutory limits of liability. This
action must be taken on or before July 1 of each year.
The current statutory limits of liability for Minnesota cities are $300,000 for an
individual claimant and $1,000,000 per occurrence. Cities can waive those limits by
allowing an individual claimant to recover more than $300,000, up to the $1,000,000
occurrence limit or more if limits are waived and excess liability insurance is
purchased. They may also waive the per occurrence limit and purchase excess
liability insurance.
Historically, the Richfield HRA has not waived its limits of liability. This is true of the
City of Richfield also. The majority of cities in Minnesota have not waived their
limits in the past.
0620 Tort Liability HRA
III. BASIS OF RECOMMENDATION
A. POLICY
• The State Statute establishing liability limits for cities at the current
$1,000,000 level was established fairly recently and appears to be a
reasonable limit.
• Historically, just over one-half of the municipalities in Minnesota have not
waived the monetary limits on municipality tort liability as was established
by statutes 466.04.
• The HRA could-waive its statuary limits in future years if the
Commissioners should decide to do so.
• The City of Richfield has historically not waived its limits of liability.
• I ne Fiw4's insurance policy with the League of Minnesota Cities
Insurance Trust renews on July 1, 2005. This action must be completed
before that time.
• The HRA does not have to make a decision on purchasing excess liability
coverage at this time. Coverage such as excess liability may be added at
any time.
C. FINANCIAL
• There is a slight premium savings for political entities that affirm the
statutory monetary limits. For the Richfield HRA the savings would be
less than $1,000- for the coverage year.
• The HRA has historically not purchased excess liability coverage because
of the relatively high cost of such coverage. The cost for $1,000,000 of
excess coverage would be between $5,300 and $6,500 per year.
D. LEGAL
• The tort liability limits established by Minnesota statutes have protected
cities historically and no Minnesota court has ever established a monetary
award in excess of the statutory limits against a municipality.
• Each municipal entity must annually decide whether the City would
voluntarily waive the statute for both the single claims each occurrence
limits.
TERNATIVE
If the HRA feels that any single claimant should receive more than the
$300,000 limit, the HRA could elect to waive the statutory monetary limits.
If the HRA feels that the $1,000,000 per occurrence limit is not adequate, the
HRA could purchase excess liability coverage and subsequently waive the
limits of liability up to the amount of excess coverage purchased by the HRA.
~ V. ATTACHMENTS
n
V 1. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
HRA RESOLUTION NO.
RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY
MINNESOTA STATUTES 466.04
WHEREAS, Minnesota Statute 466.04 provides for Municipal tort liability limits for
Minnesota cities; and
WHEREAS, the League of Minnesota Cities Insurance Trust has asked that each
city review the tort liability limits and determine if the respective city would choose to waive
it's limits; and
WHEREAS, such decision to affirm or waive the tort liability limits must be filed with
the League of Minnesota Cities Insurance Trust at the insurance renewal date.
NOW, THEREFORE, BE IT RESOLVED that the Executive Director is directed to
report to the League of Minnesota Cities Insurance Trust that the Richfield HRA does not
waive the monetary limits on the municipal tort liability established by Minnesota statutes
466.04.
Approved by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of June 2005.
Thomas E. Harms, Chair
ATTEST:
Kristal Stokes, Secretary