03-18-02 agendaCITY OF RICHFIELD
MONDAY, MARCH 18, 2002
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
Approval of minutes of Regular HRA Meeting of February 19, 2002
1. Opportunity for citizens to address the HRA on items not on the agenda
Notes:
2. HRA approval of agenda
3. Public hearing and consideration of resolution authorizing sale of 7039 Fifth Avenue
to Twin Cities Habitat for Humanity for single family home development
Staff Report No. 13
Notes:
4. Executive Director report
5. 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 Administrative
Services Director at 612-861-9702.
AGENDA ITEM # 3
REPORT # 13
J
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 18, 2002
REPORT PREPARED BY: PAM BOOKHOUT, REHABILITATION
SPECIALIST
NAME, TITLE
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
BRUCE PALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
SIGNATURE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Public hearing regarding the attached resolution authorizing the sale of 7039 Fifth Avenue to
Twin Cities Habitat for Humanity for single family home development.
I. RECOMMENDED ACTION:
Conduct and close the public hearing and by motion: Adopt the
attached resolution authorizing the sale of 7039 Fifth Avenue to Twin
Cities Habitat for Humanity for single family home development and
the execution of appropriate documents by the Housing and
Redevelopment Authority's Chair and Executive Director.
II. BACKGROUND
In January of this year, the Housing and Redevelopment Authority (HRA) purchased
the substandard property at 7039 Fifth Avenue. It is proposed that the HRA sell the
property to Twin Cities Habitat for Humanity (Habitat) for new single family home
construction. The development agreement is similar to those used for the past six
Habitat developments. The following items are those which differ from a typical
HRA development agreement but are typical for Habitat projects:
031802-7039Fifth
• It is anticipated that the 1,496 sq. ft. three bedroom home will have a property
value upon completion of approximately $175,000. A copy of the proposed plan
is attached.
• The sale price of the property from the HRA to Habitat is $1. The development
agreement will be recorded and requires Habitat to pay $40,000 for the site if
they fail to perform. A Certificate of Completion would release this lien.
• Habitat will require their end buyer to execute a $40,000 second mortgage to the
HRA to secure the land value.
• Habitat will be provided approximately eight months to complete the project
rather than the four months builders typically receive.
III. BASIS OF RECOMMENDATION
A. POLICY
• Habitat has evidenced experience, capability and financial security.
• -The HRA acquired the property under the New Home Program for an
affordable housing initiative.
• The terms of-the development agreement have been negotiated and
are in conformance with program guidelines as noted.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• N/A
D. LEGAL
• Notice of public hearing on sale of the property was published March 6
in the Sun-Current.
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not proceed with the development agreement with Habitat and direct staff
to find another buyer.
V. ATTACHMENTS
• Resolution
• Proposed plans
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• A Habitat representative is anticipated to be at the March HRA meeting to
answer any questions the HRA may have.
HRA RESOLUTION NO. .
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 7039 FIFTH
AVENUE SOUTH TO TWIN CITIES HABITAT FOR HUMANITY IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in
furtherance of the Richfield Rediscovered Program adopted. by-the HRA, said real property
being described as follows:
Address
7039 Fifth Avenue South
Legal
Lots 30 and 31, Block 1, Savage's First Addition
WHEREAS, the HRA is authorized to sell real property within its area of operation
after public hearing; and
WHEREAS, a developer, Twin Cities Habitat for Humanity, has been identified as
the purchaser of the described property and in accordance with a development agreement;
and
WHEREAS, a public hearing has been held after property public notice.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. A public hearing has been held and 7039 Fifth Avenue is authorized to be sold for
$1.00 to Twin Cities Habitat for Humanity in accordance with a development
agreement with the HRA.
2. That the HRA accept a $40,000 second mortgage lien executed Habitat, and upon
sale to an end buyer, the HRA release the lien with Habitat and accept a second
mortgage lien executed by the end buyer.
3. The Chairperson and Executive Director are authorized to execute a Contract for
Private Development and other agreements as required to effectuate the sale to
Twin Cities Habitat for Humanity.
Adopted by the Housing and Redevelopment Authority in and for- the City of
Richfield, Minnesota this 18th day of March, 2002.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
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