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03-21-05 agendaCITY OF RICHFIELD, MINNESOTA MONDAY, MARCH 21, 2005 **ic~*****ic***************it~~kYt~YYr*X~Ye***************~ic**********~k*****~ie~r~e~nk*Ye****Yr**Yr*Y~r***Ye~k~*~e SPECIAL CONCURRENT CITY COUNCIL/ HOUSING AND REDEVELOPMENT AUTHORITY/ PLANNING COMMISSION WORKSESSION RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 5:30 P.M. Call to order Roll call 1. Discussion of land use visioning for 66th Street and Portland Avenue Area Notes: REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 7 P.M. AGENDA Call to order 1. Consideration of appointment of HRA officers for 2005 (deferred from January 18, 2005) Staff Report No. 9 Notes: 2. Approval of minutes of (1) Regular HRA Meeting of January 18, 2005; (2) Special Concurrent HRA/City Council/Planning Commission Worksession of February 22, 2005 and (3) Special HRA/City Council/Planning Commission Worksession of March 8, 2005 Notes: 3. HRA approval of agenda 4. 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 fora royal. A. Consideration of approval of resolution modifying Transformation Homes Loan Program guidelines S.R. No. 10 B. Consideration of approval of resolution authorizing purchase of real property located at 6758 Portland Avenue S.R. No. 11 Notes: 5. Consideration of modifications to Richfield Rediscovered :Program Notes: Staff Report No. 12 6. Consideration of authorization to evaluate development alternatives and contact neighborhood adjacent to 6812 Emerson Lane Notes: 7. Executive Director report 8. Claims and payroll Adjournment Staff Report No. 13 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 # REPORT # j3 ~- STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING MARCH 21, 2005 REPORT PREPARED BY: REPORT PRESENTER: MELISSA POEHLMAN, COMMUNITY DEVELOPMENT ASSISTANT COORDINATOR NAME. TITLE BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Authorize staff to evaluate development alternatives and contact the neighborhood adjacent to 6812 Emerson Lane RECOMMENDED ACTION: By Motion: Authorize staff to evaluate development alternatives and introduce concepts to the neighborhood adjacent to 6812 Emerson Lane. II. BACKGROUND The property, 6812 Emerson Lane, is located along the east side of I-35W, just south of 66th Street. Prior to the reconstruction of the I-35W 66th Street ramps, the property was accessible via 66th Street. Current access is via Emerson Avenue, to Emerson Lane and an access alley along the western property boundary. In early 2005, the owner's representative approached the Richfield Housing and Redevelopment Authority (HRA) regarding the possible sale of their property to the HRA. The site includes asingle-family home built in 1900, as well as a secondary building out of which antiques were sold in the past. 032105_6812 E m e rso n La n e_eva I Staff has been working with landscape architect, Michael Schroeder to determine the feasibility of single family development at this location. Some concept sketches are included with the staff report. 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. III. BASIS OF RECOMMENDATION A. POLICY • A stated goal of the Richfield 2020 plan is to "sustain, expand, and continuously improve our housing assets." A preliminary evaluation indicates three to four higher value homes might be built on the available land. Strategies to achieve this goal include the preservation of the single- family character of this neighborhood and preventing multi-unit housing development. B. CRITICAL ISSUES • Development may require changes to the zoning ordinance and Comprehensive Plan. • Emergency access needs to be studied. • Ownership and maintenance of site access must be determined. • Historical significance must be determined. • Street and utility requirements would need to be evaluated. • Proximity to Wood Lake makes this parcel a desirable location. • Development of the property would allow for additional higher value single-family homes. • The deeding of the narrow strip of land to adjacent property owners will be explored. • Close proximity to the noise wall makes this site relatively quiet. • Input from adjacent neighbors is necessary. If the HRA supports the concept staff would meet them to identify topics of interest and concern prior to proceeding. C. FINANCIAL • Project costs and funding sources need to be evaluated. D. LEGAL • An agreement to purchase the property would be prepared for HRA consideration pending neighborhood feedback and further evaluation. The plan would be to return to the HRA in April to report progress. IV. ALTERNATIVE RECOMMENDATION(S~ • Do not authorize further study of the property. • Consider development of three or four houses. V. ATTACHMENTS • Aerial photograph of property • Design possibilities, sketches A-D VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A 6812 Emerson Lane ~~ -~~ wa u bk ~"~i k`x., ~}~,. ~ ~ i. . ~ ~ ~'.. ~ ~ k .. ~n t 1Y:, y nr~t' 4 yeP _~ .k ~'~ ~ ~ ~~~ ~'~ , _ ~ y ~., ~.~ ~ ~^ . ~~ ~!_ ~ . `~ c Area of detail ~, ~r ° ~, 4 1. ~ r ;~' ~~~, Q ~~ ~ 5i ,M,. ~~4` ti •:~+ -~ r ~~ x i ,„~~ - ~ i.~ ~... ~ .. w s:-.. 1~ ~ N~ ~d ~ a ~, s. .~ ~ •~` may'. ~. .$.-:~ ~ xy_ •' '$~ R .. ~ ~ A ~.. ~ ~ ~ .2.50 375 500 Feet 1 n ~\ { i cul-c'le-sac i ~.r -. - 5 ft. side setback ~ ~ G V ~ ~ ~~ }} ~ ~~ 5~~_%~~' ff '~'~ Lol 1 ~ ,~ ~, t !`', ~~~ 9, 450 sq. fz. ~ ' ,r~ ~~' / ,' ~O N 1 r /~ ~ Lot 2 ~ 9, 4so sq. fc. ~ Lot 3 ~ ~ 9, 600 sq. ft. ~ Three lots 6812 Emerson Lane !~~ Richfield, M111IleSOta 1 inch equals 50 fcc[ 8 :March 2005 2 RIChflelC~~ IVI1ririeSOi3 I inch equals 50 fcce 8 March 2005 R1C~1fle1C~, M1ririeSOT3 1 inch equals 50 feet 8 March 2005 R1C~1f1eIC~, Minnesota 1 inch equals 50 feet S March ?005 AGENDA ITEM # 5 REPORT # LZ ~~' STAFF REPORT HOUS<ING AND REDEVELOPMENT AUTHORITY MEETING MARCH 21, 2005 REPORT PREPARED BY: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER NAME, T/TLE REPORT PRESENTER: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ©~ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of modifications to the Richfield Rediscovered Program. I. RECOMMENDED ACTION: B Motion: A rove chan es to the Richfield Rediscovered Pro ram. IL BACKGROUND Richfield Rediscovered beginning in 1990, has been a pioneering redevelopment program that replaces scattered site substandard homes with desirable higher value homes. With more than 100 new homes completed, the program has been very successful and has leveraged remodeling/transformation efforts as well. It has also received national awards. A March 12, 2005 article in the Star Tribune, "Tear downs Sprout in Unexpected Places" suggests these efforts have become more common place in the metropolitan area. But, the costs to redevelop are increasing and the program needs to be adjusted. The cost evolution includes: • Substandard homes previously valued at $50,000 to $60,000 now command $130,000 to $140,000; still well below the community average, (which exceeds $210,000). Paying fair value has always been a foundation of the program. 032105 RR Program $250,000 new homes are now considered closer to average and a new home would more likely have a price point of $350,000 to $400,000. The value of the single-family lot has appreciated. Originally $25,000 to $30,000 land values are now closer to the $70,000 to $80,000 range and often exceed the value of the existing structure. But the substandard structure still will have a $60,000 to $70,000 value. The formula that made Richfield Rediscovered successful doesn't work as well any longer: • 50 to 55 percent of project costs may not be recovered by land proceeds from builder/buyer teams. • 45 to 50 percent of project costs can not be recovered on a pay as you go basis with 25 years of tax increment. Project costs typically include the cost of acquisition and demolition of structures. A new model has been devised that, like transformation incentive loan funding provides a financial incentive that encourages the development of new homes with builder/buyer teams. In the process, the builder/buyer team assumes greater responsibility for the acquisition, demolition and development costs. The potential builder/buyer project costs may increase or may not be fully recovered. For the HRA, project costs would be fixed at $50,000 per redevelopment project. The program is summarized as an attachment. III. BASIS OF RECOMMENDATION A. POLICY • The Richfield Rediscovered program has. been a successful program for replacing smaller, substandard housing with larger higher valued homes. • A revised program changes the formula for cost sharing, shifting more responsibility for costs to builder/buyer teams and testing in the market place the desirable value of being located in Richfield. • The HRA is responsible for the administration and budgeting of Richfield Rediscovered. B. CRITICAL ISSUES • Funds need to be managed in a new way to continue to offer a successful program. • The last time lots were available for sale under the program was in 2000. A bond sale made those purchases possible. Ever-changing tax increment financing (TIF) rules and cash flow issues make a future bond sale less feasible and costs continue to increase. The HRA would not acquire or sell property, and would not establish -tax increment projects. A program qualifying inspection of the property is required. • The HRA is providing an incentive grant to be earned by project performance. The grant matches identified project costs and is not recovered by the HRA. Tax increment is not captured by the HRA. The financial benefit of a new higher value home directly benefits and increases tax revenues to the taxing jurisdictions upon project completion. C. FINANCIAL • The HRA has budgeted $200,000 from the Housing Fund in 2005 for Richfield Rediscovered. • The $200,000 would yield four new homes. Without program adjustments, only one home could be provided. D. LEGAL • Legal counsel will revise Participation and Contract for Private Redevelopment agreements and prepare a Lender Escrow Agreement. The HRA will see these agreements as each project is brought to the HRA for review and approval. IV. ALTERNATIVE RECOMMENDATION~S~ • Do not approve the suggested program modifications • Modify the program further or end the program. V. ATTACHMENTS • Program summary. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A RICHFIELD REDISCOVERED Richfield Rediscovered means higher valued new home construction on scattered sites throughout the community. Since the program began in 1990, the purpose and the results have been to replace small, substandard, functionally obsolete housing with new higher valued homes that have square footage and design features relevant for families today. DEFINITIONS Seller. Owner of property identified as eligible by the HRA based on condition, size, and marketability. Builder/Buyer Team. A buying household which wants to build, own and occupy a new single family home in Richfield, and their identified licensed builder. Redevelopment Credit. To offset costs of acquisition and demolition, a credit of $50,000 is available from the- Richfield HRA for Builder/Buyer Teams who acquire property directly from the Seller for redevelopment. BASIC ELEMENTS • Properties available for redevelopment must be inspected by the HRA to determine eligibility. If the HRA is partnering in a project, these properties are available for sale in as-is condition by the owner. • When the HRA has property information, it will provide the address of the property(s), lot dimensions, and contact information. Interested parties may contact the owners directly. All purchase negotiations and timing issues must be resolved between the parties. • Properties identified by Builder/Buyer Teams may also qualify. The HRA will review each one on a case by case basis. • It is essential, to participate in the Richfield Rediscovered program and receive a Redevelopment Credit, that the property will be evaluated on a first come-first served basis and including that funds are confirmed to be available. • The Builder/Buyer Team purchases the property, demolishes the existing improvements, and constructs a new single-family home (no duplexes). • A redevelopment credit in the amount of $50,000 is available per completed property. REQUIREMENTS FOR RECEIVING A "REDEVELOPMENT CREDIT" FROM THE HRA • The new home must be owner-occupied upon completion. • Participants must be Builder/Buyer Teams, i.e. to participate in Richfield Rediscovered, builders may not independently build homes on spec, and prospective owners of new homes may not independently purchase sites prior to securing a builder. Under the Richfield Rediscovered program, no builder, builder subcontractor, nor builder realty agent may occupy or be the end buyer of the property. • Existing buildings must be demolished. On occasion, an existing garage may be in good condition, and therefore may be retained. Those exceptions will be evaluated on a case by case basis as part of a plan review. • It is essential to participate in the Richfield Rediscovered program and receive a Redevelopment Credit, that the property be evaluated on a first come-first served basis and that funds are confirmed to be available. 032105 RR Program • The Builder/Buyer Team will be required to follow general design and development criteria established by the HRA for the new house and garage plan. • Finished properties must meet or exceed a minimum value specified for each site. • End buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the foundation, wall or roof framing, shingling, electrical/ plumbing/HVAC systems. • The Development Credit is provided in one disbursement upon completion of the project, including landscaping. A lender may require that the $50,000 be held as an escrow as part of the interim financing of a project; but only to be released upon completion. Pro'ect Re uirements ^ Application form with $500 fee to reserve funds. ^ Copy of Purchase Agreement between Seller & Buyer ^ Copy of closing statement and deed ^ Conceptual plans for new home and construction schedule ^ Property evaluation report by HRA ^ Contract for Private Redevelo ment with HRA ^ Demolition of all structures on site ^ Final buildin lans ^ Certificate of Occupancy by Inspections Division ^ Installation of Landsca in PROCEDURES FOR SECURING A SITE 1. Participants receive information by U.S. mail or on the Richfield web site, or identify a property on their own. NOTE: If the Builder/Buyer Team has a site in mind that is not identified by the HRA, please call prior to making any purchase commitments to ensure that the identified property can be qualified for substandardness and/or market obsolescence. 2. Interested participants form aBuilder/Buyer Team. 3. Builder/Buyer Team contacts the Seller to negotiate a purchase. 4. Builder/Buyer Team submits an application form and a copy of an executed purchase agreement between the Seller and the Builder or Buyer to obtain a reservation of funds. 5. Funds will be reserved upon favorable evaluation report. 6. NOTE: The project must be completed within one year of the purchase of property. HOUSING DESIGN AND SITE DEVELOPMENT CRITERIA All house plans will be reviewed by the HRA. 1. Each home shall be an owner-occupied single-family dwelling. 2. Each home must have a minimum of three bedrooms, two bathrooms, and atwo-car garage. 3. Exterior materials should be durable. Masonite, for example, is not acceptable. 4. All building plans must be prepared in consultation with an architect or a qualified draftsperson. 5. House building lines, roof lines, door and window placement, and house orientation to street will be reviewed for complement to the block and an aesthetically pleasing street presence. Minimized garage door presence and street-facing front doors are required. The HRA will not finalize commitment of funds if design issues have not been resolved to the satisfaction of the HRA. 6. Existing trees must be protected during construction. After construction, the site must be fully landscaped, including plantings around the foundation and complete sod installation. New trees to replace any trees removed are required (not necessarily the same kind), and should be labeled on the required landscape plan. 7. Adjoining properties must not be disturbed by the construction process. 8. The finished buildin sand site radin must im rove or not have a detrimental im act on storm water drainaae patterns in the neighborhood. Gutters will be required on all roof edges, which are pitched toward neighboring homes. TIPS TO SELECTING A QUALIFIED BUILDER Potential Builders should: 1. Demonstrate financial capability. For example, Buyers may ask for a statement from a financial institution of sufficient construction c_ apital, and a summary of the financial conditions of the company. 2. Meet or exceed State requirements for insurance including Builder's Risk, Comprehensive General Liability and Worker's Compensation Coverage. 3. Share a written warranty policy with the Buyer to perform warranted repairs required by Minnesota State Statute. 4. Provide references from: at least five satisfied customers, major suppliers including one construction lumber supplier, and names of building inspectors from cities in which the builder has constructed new housing within the past three years. AGENDA ITEM # [F$ REPORT # 11 ~' STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING MARCH 21, 2005 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: KATIA MEDVETSKI, REDEVELOPMENT SPECIALIST NAME, TITLE BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 6758 Portland Avenue from the Cit of Richfield. I. RECOMMENDED ACTION: By Motion: Adopt a resolution authorizing the purchase of real ro ert located at 6758 Portland Avenue. II. BACKGROUND In 1996, the City of Richfield (City) purchased real property (single family home) at 6758 Portland Avenue South from the estate of the deceased owner. At that time, there was a possibility to use the site for the potential, future expansion of the city hall parking lot. The property has since been held by the City and rented out for $1,100 per month. The HRA historically has managed commercial and residential property for the long term it would be prudent to transfer ownership of the property to the Richfield Housing and Redevelopment Authority (HRA) as it is more suited to handle the ownership and maintenance of the property. Proceeds of sale to the City might then be utilized to help defray the cost of updating the land-use controls of the City such as the Comprehensive Plan and Zoning Ordinance. 032105 6758Portland / NAME, TITLE On March 8, 2005, the City Council held the first reading of a transitory ordinance authorizing the sale of the property to the HRA. The consideration for the sale of the property is $200,000, which is the fair market value of the property established by a recent appraisal report. The City Council at first reading indicated that they are supportive of the transaction but want the transaction to reflect that the City may at some point in the future require the property for upgrade/expansion of City Hall or Heredia Park. They wish to be provided the opportunity to repurchase for $200,000. III. BASIS OF RECOMMENDATION A. POLICY • The HRA is better equipped to handle long-term operation and maintenance issues related to the property. • If the City does not need the property in the future it could be utilized in the New Home Program. B. CRITICAL ISSUES • The sale of the property to the HRA is contingent upon a potential resale back to the City at the current purchase price of $200,00 should the property be needed for future expansion of city hall or other use. C. FINANCIAL • The HRA would utilize Development Opportunity funds to purchase this property from the City. The revised 2005 HRA budget would reflect this transaction. D. LEGAL • The City Council will be undertaking a public hearing and second reading of the transitory ordinance at their meeting of April 13, 2005. • The transfer of the property from the City to the HRA would be undertaken after the transitory ordinance becomes effective. • Legal counsel prepared the resolution. IV. ALTERNATNE RECOMMENDATION(S~ • Do not authorize purchase of the property from the City. • Delay purchases of the property from the City and direct staff how to proceed. V. ATTACHMENTS • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6758 PORTLAND AVENUE WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota ("the HRA") desires to purchase certain real property (the "Property") from the City of Richfield described as: 6758 Portland Avenue: The South 50 feet of that part of the Southeast'/4 of the Northeast'/4 of the Southeast'/ of Section 27, Township 28, North, Range 24 West of the Fourth Principal Meridan, described as follows: Beginning at a point 30 feet North of the Southeast corner of the Northeast'/4 of the Southeast Quarter of said section; thence North long the East line of said section a distance of 100 feet; thence West parallel with the South line of said Northeast'/ of the Southeast'/ of said Section 27 a distance of 168 feet; thence South parallel with the East line of said Section 27 a distance of 100 feet; thence East parallel with the South line of said Northeast'/4 of Southeast % of said Section 27 a distance of 168 feet to the point of beginning, 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, the purchase price is based on an independent appraisal; and WHEREAS, funds will be made available from Development Opportunities; and WHEREAS, the HRA recognizes there may be a need for the City to repurchase the property in the future. NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1) The purchase price of the Property is hereby authorized and approved subject to the terms of this resolution 2) The purchase price for the Property is approved at $200,000. 3) The purchase is contingent on the following: (a.) satisfactory evidence that the City can convey the Property; (b.) agreement on the terms and conditions of a declaration of covenants to be recorded along with the deed granting the City the right to repurchase the Property for $200,000. 032105_6758Portland 1 4) The Vice Chairperson and Executive Director are authorized to take actions necessary to carry out the provisions of this resolution and 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 21st day of March, 2005. Joan Helmberger, Vice Chair ATTEST: Kristal Stokes, Secretary 2 KICHFIFLI~ STAFF REPORT AGENDA ITEM # REPORT # HOUSING AND REDEVELOPMENT AUTHORITY MEETING MARCH 21, 2005 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: LZ REVIEWED BY EXECUTIVE DIRECTOR: 4A 10 KELLY BERG, HOUSING COORDINATOR Consideration to modify the TransforOmation Homes ~oDn pATION: rogram guidelines. I• RECOMMENDED ACTION: By Motion: Approve the attached modifications to the Transformation Homes Loan Pro ram uidelines. II. BACKGROUND Richfield's Transformation Loan Program provides a zero interest deferred incentive loan to homeowners making value added improvements to their home, thereby playing an important role in achieving the following objectives: • Increasing the function and livability of small or outdated Richfield homes. • Increasing the range of housing options available to individuals and families who want to live or remain in Richfield. The Transformation Home Loan Program is administered by the Housing and Redevelopment Authority (HRA) staff in accordance with the Transformation Home Loan Program Guidelines. Changes are occurring in the remodeling industry. A recent trend is "do-it-yourself' projects reflected in the popular home 032105 Transformation Loan Program NAME, TITLE BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER ~IAAAC T.m..- makeover shows on television like "Design on a Dime," "Designed to Sell," "Divine Design," and "Design Remix." (See attachment.) Currently, "sweat equity" projects are not eligible within the program guidelines. It is recommended that "sweat equity" be allowed in the program. • A "sweat equity" project will likely have two components; a contractor component and a "sweat equity" component. • The estimated loan amount would be the addition of contractor labor and contractor material cost, plus homeowner material costs. • The $50,000 in project cost would continue to be the eligibility threshold for a loan. • Projects must be completed within one year, enforced by building inspection and the permitting process. • Funds will be disbursed in two increments-one when project is half- completed and one when project is finished III. BASIS OF RECOMMENDATION A. POLICY • The Transformation Home Loan has been useful and successful, serving- over 100 clients to date. • Program changes are required periodically in order to respond to trends in the remodeling industry and market needs. B. CRITICAL ISSUES • There has been an increase of homeowners doing "sweat equity" projects who want to participate in the program. • Crediting homeowners-for remodeling costs, but not their labor helps keep value added remodeling as cost effective as possible. • Timely remodeling is addressed by coordinating with building inspections and using the proposed disbursement schedule. C. FINANCIAL • The program is fully funded by the HRA through the Housing Fund and this program change will increase the number of interested .homeowners. • For 2005 there is $100,000 available to fund approximately 12 loans. D. LEGAL • The modifications to the guidelines do not modify any of the required. loan documents. IV. ALTERNATIVE RECOMMENDATION(S) • Do not modify program guidelines. V. .ATTACHMENTS • .Trends in "do-it-yourself' projects. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A 032105 Transformation Program These. Old Houses: A TAI genre Is Built 13y ANITA GATES N .Discovery Channel's "Dude Room," the guest house at Emilio Estevez's Malibu home is turned into an aboveground wine cellar, complete with antique barrels, crown molding from a church in India and a mural-size, 300-bottle wine rack. On Lifetime's "Merge," the lush-lipped former soap star ~~~~ AnA~c~®vE¢t sH®w , Top, a ranch-style duplex being built for a homeless family in an episode of "Extreme Makeover." Above, Amy Wynn pastor, a carpenter, at work on "Trading Spaces:' Left, Doug Wilson, the host of "Moving Up." Lisa Rinna cuts a painting in two to make ar- moire doors, working with the designer who calls himself Bobby Trendy. On HGTV's "Gen- eration Renovation," a Colorado couple ex- plain how they turned a 1970's split-level into an 11,000-square-foot log cabin with heated stone floors and aman-made waterfall out back. These examples barely begin to convey the variety of home makeover shows now spreading rampantly on American television, most of it on cable. Since "Trading Spaces" had its premiere on TLC in September 2000, copycats and variations on the idea have been multiplying like wire hangers in a walk-in closet. ABC's "Extreme Makeover: Home Edition," which went on the air in December 2003, is a bona fide network hit. The 10-year- old HGTV channel has at least 20 series that fit the definition, among them "Design on a Dime," "Designed to Sell," "Divine Design," "Design Remix," "Date With Design" and the latest, "reDesign," which begins in March. And that doesn't include the landscaping shows. It's not hard to understand the genre's popularity. Combine the traditional impor- tance ofhome with a hunger for security in the post-Sept. 11 era and a growing middle-class sense of entitlement, and you get a huge poten- tial audience eager for home betterment. 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