11-19-01 agendaCITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, NOVEMBER 19, 2001
RICHFIELD CITY HALL
6700 PORTLAND AVENUE
COUNCIL CHAMBERS
7 .P.M.
AGENDA
Call to order
Approval of minutes of (1) Regular HRA Meeting of October 15, 2001 and (2) Special HRA
Meeting of October 30, 2001
1. Opportunity for citizens to address the HRA on items not on the agenda
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 modifications to Richfield Home
Rehabilitation Deferred Loan Program S.R. No. 62
B. Consideration of approval of amended resolution authorizing purchase of 6819 Oliver
Avenue for single family redevelopment S.R. No. 63
C. Consideration of approval of resolution authorizing submittal of application to Tax
Base. Revitalization Account S.R. No. 64
D. Consideration of approval of contract with Short Elliot Hendrickson, Inc. for building
evaluation services to qualify selected areas identified for redevelopment for tax
increment financing S.R. No. 65
E. Consideration of approval of leasing portion of Gleason Mortuary property at 7601
Pleasant Avenue S.R. No. 66
Notes:
4. Public hearing and consideration of-resolution authorizing-sale--of-property at 6529
Emerson Avenue to Real Property Investment for- new construction of single family -
home
Staff Report No. 67
Notes:
5. Public hearing and consideration of resolution adopting 2002 HRA budget and property
tax levy and resolution adopting revision of 2001 HRA budget
Staff Report No. 68
Notes:
6. Claims and payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests
must be made at least 96 hours in advance to the Administrative Services Director
at 612-861-9702.
•
AGENDA ITEM # 3A
REPORT # E) 2
•
J
STAFF REPORT
.]
•
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2001
PAM BOOKHOUT,
REPORT PREPARED BY: REHABILITATION SPECIALIST
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
SIGNATURE
REVIEWED BY EXECUTIVE DIRECTOR: ~ , l,~ ~, n
ITEM FOR HRA CONSIDERATION:
Authorization of modifications to the Richfield Rehabilitation Deferred Loan Program
guidelines; consider new requirements and procedures under federal Lead-Safe Housing
Regulations.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution authorizing
modifications to the Richfield Home Rehabilitation Deferred Loan
Program.
III. BACKGROUND I
Richfield's Home Rehabilitation Deferred Loan Program (Deferred Loan Program).
provides rehabilitation assistance to low income Richfield homeowners. Each year
the Housing and Redevelopment Authority (HRA) utilizes a portion of the
Community Development Block Grant (CDBG) funds allocated to the City from
Hennepin County for rehabilitation loans. By assisting approximately 12-18 low
income homeowners each year with approximately $175,000, the Deferred Loan
Program plays an important role in achieving an HRA goal to preserve and maintain
the City's housing stock. Repairs usually include electrical and plumbing updating,
furnace replacement, weatherization, roofing, window and door replacement. Since
its beginning in 1978, the program has served over 400 homeowners.
111901 DeferredLoan
The Deferred Loan Program is administered by HRA staff in accordance with the
program's procedural guidelines, which are based on program criteria established
• by Hennepin County and the HRA. Two changes to the guidelines are requested at
this time.
The first change increases the program's loan amount. Per program guidelines,
the deferred loan maximum for the last seven years has been $15,000 per
household. Given higher costs for home repairs and improvements, as well as
increased property values, which can support a greater real estate title lien, the
new loan limit is recommended to be $25,000. Four other cities in Hennepin
County still administer their own program .(Minnetonka, Eden Prairie, Edina, and
Hopkins), and their loan limits are currently $20,000. Hennepin County directly
administers the loan in several other communities in the suburban area, and
their limit has been $20,000 since the lead regulations went into effect. However,
it is appropriate at this time to increase Richfield's limit to $25,000 because for
the homeowners who need it, the money will be available, and in addition, more
stringent lead regulations apply over that amount. Of the last 20 loans
approved, 16 (80 percent) were $14,000 to $15,000. All loan participants had to
drop some work items to stay within the loan limit.
2. Lead-based paint requirements. On September 15, 1999, the U.S. Department
of Housing and Urban Development (HUD) introduced new regulations to deal
with lead-based paint hazards found in rental and owner-occupied homes that
receive federal money. In Richfield, these regulations apply to homes receiving
Rehabilitation Deferred Loans since these .loans are made possible by federal
CDBG funds. The new regulations called Lead-Safe Housing Regulations,
require assessment and/or testing for the presence of lead, and replacement,
repair or rehabilitation of affected areas in a lead-safe manner. Properties built .
before 1978 are generally presumed as being at risk for the presence of lead.
The regulations were to go into effect one year after their introduction. However,
HUD realized that there were not enough certified personnel and trained contractors
for recipients of federal funds to comply. HUD authorized asix-month transition;
until March 15, 2001. Since Hennepin County is the actual entitlement recipient of
HUD's funds, Richfield and other sub-recipients are relying on Hennepin County to
determine how to implement the regulations properly. Procedures are being
interpreted as loans are processed. However, for the Rehabilitation Deferred Loan
Program, the following list describes how the regulations are being implemented to
date.
• All loans initiated after March 15, 2001 need to be assessed for the presence of
lead. (Exception includes only those properties whose improvements are less
than $5,000 or whose improvements more than likely do not affect areas that
could have lead, e.g. replacing a driveway.)
• Currently, Hennepin County staff are willing to conduct lead risk assessments,
which consist of surface "wipes" in representative areas. of the house. The wipe
samples are sent to the City of Minneapolis for lab testing. The Richfield HRA is
charged the lab fee; CDBG funds will cover the cost of the testing.
• If the lab results show high levels of lead, a full lead testing may be required. If
small children are in the home, or if many typically lead-affected areas will be
disturbed, the assessmerit by the County may be by-passed in order to do a
lead test right away. A full lead test is conducted by a licensed consulting firm.
• The HRA arranges for the test; CDBG funds will cover the cost of the testing.
• All lead-affected areas on the property must be treated, mitigated or abated. If
the lead-affected areas were not part of the homeowner's scope of home
improvements, the work will be covered by CDBG. funds in the form of a grant.
A form acknowledging the receipt of grant funds would. be attached to the
Deferred Loan Repayment Agreement. (Because it is not known how much
could be spent just on lead mitigation, it is not yet known if using CDBG funds in
the form of a grant will be a long term source of funds. The lab fees and
consulting fees noted above would also be covered by CDBG funds at this time.)
• Upon completion of the lead mitigation work, a clearance test is required. The
clearance test ensures that all lead mitigation was completed and that no lead-
based paint hazards remain. At this time, Hennepin County will conduct those
clearance tests. If due to volume they are unable to perform such tests in the
future, a consulting firm will need to be hired for that work.
This detail is for the information of the HRA. No action is required since meeting the
regulations is mandatory for use of the federal funds. At this time it appears that the
CDBG funds allocated to Richfield are sufficient to meet these additional costs.
The second change to the Rehabilitation Deferred Loan guidelines, however,
relates to language addressing the presence of lead-based paint in a property
receiving loan funds. As the regulations are implemented, more questions surface
and are addressed. The current language still applies, but stops short of the full
requirements. The suggested language is attached, and may be modified as
Hennepin County continues to interpret the regulations.
III. ~ BASIS OF RECOMMENDATION
A. POLICY
• The HRA's Rehabilitation Deferred Loan Program is administrated in
accordance with Procedural Guidelines. Although the guidelines are
primarily dictated by HUD and Hennepin County, local discretion is
allowed in some areas, including in the maximum loan amount.
• The increased maximum loan amount will allow most homeowners to
get all the necessary property repairs completed, rather than having to
defer some improvements until later.
• The additional language on lead-based paint procedures will
acknowledge the new required regulations.
B. CRITICAL ISSUES
• The maximum loan amount is insufficient to cover required work
approximately 80 percent of the time. Any new loans. initiated after
approval of the resolution would be able to utilize the new loan limit.
All other terms would remain the same: zero percent interest, with no
monthly payments for 30 years, full amount due upon sale.
• Lead based paint can be hazardous if not managed properly.
Incorporating the regulations into the Procedural Guidelines is the next
responsive step.
C. FINANCIAL
• The Deferred Loan Program remains the only reliable, affordable
financing option for fixed income seniors and low-income individuals
and families.
• Conceivably, if each homeowner applying for a Deferred Loan used
the new loan maximum, approximately five less loans would be made
available per year.
• Current levels of CDBG funds appear sufficient for the increased cost
of the lead-safe regulations.
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not authorize modifications to the guidelines.
V. ATTACHMENTS
• Resolution
• Language from Deferred Loan Program Guidelines
• Lead-Based Paint Mitigation Grant Agreement
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING APPROVAL OF MODIFICATIONS TO THE RICHFIELD
HOME REHABILITATION DEFERRED LOAN PROGRAM
WHEREAS, the Richfield Housing and Redevelopment Authority (the "HRA")
provides a Rehabilitation Deferred Loan Program which utilizes Community Development
Block Grant (CDBG) funds to assist lower income homeowners with rehabilitating their
homes; and
WHEREAS, the program's Procedural Guidelines were approved by the HRA in
1999 and are modified periodically as program requirements and needs dictate; and
WHEREAS, Richfield staff has identified modifications to update the program's
Procedural Guidelines; and
WHEREAS, the HRA has reviewed the modifications.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota that the Richfield Rehabilitation
Deferred Loan Program Procedural Guidelines will be modified to allow for a loan limit. of
$25,000 and to include the addition of language that acknowledges the new federal Lead-
Safe Housing Regulations.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of November, 2001:
Thomas E. Harms, Chair
ATTEST:
Secretary
111901 DeferredLoan
SECTION IV "IMPROVEMENT STANDARDS"
I. Lead-Based Paint
1. Performance Requirement. The dwelling unit shall be in compliance
with HUD Lead-Based Paint regulations 24 CFR, Part 570, issued
pursuant to the Lead-Based Paint Poisoning Prevention Act, 42
U.S.C. 4801. This is also the basis for the Acceptability Requirement.
2. If the property was constructed prior to 1978, the Borrower shall be
furnished with the notice required by HUD Lead-Based Paint
regulations and procedures regarding the hazards of lead-based paint
poisoning, the symptoms and treatment of lead poisoning and the
precautions to be taken against lead poisoning. Documentation of the
Borrower's receipt of the notice must be included in the file.
3 The dwelling unit must comply with Lead-Safe Housing Regulations.
This may include a risk assessment and/or a full lead test of the
property and lead-based paint treatment mitigation or abatement, as
determined ~ HUD regulation 24 CFR part 35 et. al.
(additional language)
•
C~
RICHFIELD DEFERRED LOAN PROGRAM
LEAD-BASED PAINT MITIGATION GRANT
ACKNOWLEDGEMENT
Federal Lead-Safe .Housing Regulations address the hazards of lead-based paint
("LBP") found in properties receiving federal money. The Regulations require LBP risk
assessment and/or inspections and LBP mitigation in homes where more than $5,000.00
are spent improving or rehabilitating the property. The Richfield Housing and
Redevelopment Authority (HRA) is a subrecipient of the Urban Hennepin County
Community Development Block Grant Program (CDBG), providing federal funds for the
Richfield Deferred Loan Program.
Having been approved for a Richfield Deferred Loan for rehabilitation of my/our
home located at Richfield. Minnesota 55423, I/we
understand that a LBP risk assessment and/or inspection. revealed a lead presence which
required mitigation under the Regulations. I/We acknowledge that the HRA has paid
$ in CDBG funds for the purpose of mitigating the lead presence on the Property,
and that this grant does not have a minimum term, monthly payments, nor an interest rate,
and does not need to be repaid. The Grant will not be a lien on the Property.
OWNER(S)
•
•
AGENDA ITEM # 3 B
REPORT # 63
STAFF REPORT
~ HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2001
REPORT PREPARED BY:
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
PAM BOOKHOUT,
REHABILITATION SPECIALIST
NAME, TITLE
BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
ITEM FOR HRA CONSIDERATION:
Consideration of an amended resolution authorizing the purchase of 6819 Oliver Avenue for
single family redevelopment.
I. RECOMMENDED ACTION:
By Motion: Approve the attached amended resolution authorizing
purchase of 6819 Oliver Avenue South for single family
redevelopment.
•
III. BACKGROUND
The Housing and Redevelopment Authority (HRA) authorized the purchase of 6819
Oliver Avenue at the October 15, 2001 meeting. The property had gone into
foreclosure and was purchased at the Hennepin County Sheriffs sale on October
25,2001. The resolution had authorized a purchase price of $83,927.67. Due to
county fees, closing fees, lender costs and attorney fees that were built into the final
bid price, the purchase price was $89,210.00. These fees were not available until
the day before the sale. Funds to purchase the property came from the
Development Opportunities Fund; and sufficient funds are available to cover the
additional costs. Attached is a resolution approving the purchase for the amended
purchase figure.
1119oliverlogan
NAME; TITLE
III. BASIS OF RECOMMENDATION
• A. POLICY
• The property was previously approved for purchase on October 15,
2001.
• The property is vacant and meets program requirements for
acquisition.
• The amended purchase price of 6819 Oliver Avenue is $89,210.00.
B. CRITICAL ISSUES
• The HRA's bid for this property at the foreclosure sale was successful.
• The property has been vacant for 11 months and has been a source
of concern to the neighborhood.
C. FINANCIAL
• Funds are available from the bonds of 1996. The resolution
authorizes the transfer of those funds into the Development
Opportunities fund.
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not approve. amended resolution.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE PURCHASE OF PROPERTY LOCATED
AT 6819 OLIVER AVENUE SOUTH FOR SINGLE FAMILY REDEVELOPMENT
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the "HRA") desires to purchase. certain real property for single family
redevelopment, said real property being described as:
6819 Oliver Avenue South Lot 10, Block 8, Tingdale Bros. Lincoln Hills
Second Addition
WHEREAS, the HRA is authorized by Minnesota Statues Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, the property meets. all program requirements for acquisition; and
WHEREAS, the purchase price of $89,210.00 for 6819 Oliver Avenue South is the
correct purchase price, based on lender's costs and related .foreclosure fees; and
WHEREAS, funds from the bonds of 1996 will be transferred to the Development
Opportunities fund to provide for the purchase of the property; and
WHEREAS, 1996 bond funds are available for this purpose.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota.
1. The purchase price of 6819 Oliver Avenue is approved at $89,210.00.
2. The Chairperson and Executive Director are authorized to execute necessary
documents to allow purchase of the property in the amount set forth in this
resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of November, 2001.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
~~ STAFF REPORT
3C
64
AGENDA ITEM #
REPORT #
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2001
•
JOHN STARK,
REPORT PREPARED BY: COMMUNITY DEVELOPMENT MANAGER
NAME, TITLE
BRUCE PALMBORG,
REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW: ~i~ ~l _
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing submittal of an application to the Tax Base
Revitalization Account.
I. RECOMMENDED ACTION:
By Motion: Approval of the attached resolution authorizing submittal
of an application to the Tax Base Revitalization Account.
III. BACKGROUND ~
The Metropolitan Livable Communities Act created the Tax Base Revitalization
Account to provide funds to clean up contaminated land in areas-that have lost
commercial/industrial activity in order to make it available for redevelopment.
Between $5 million and $7 million is provided annually in this account, with
applications due to the Metropolitan Council twice a year.
•
Housing and Redevelopment Authority (HRA) staff, in cooperation with Best Buy,
Opus and their environmental consulting firm, Landmark Environmental, have
drafted an application for this grant. The application identifies approximately $1.4
million in eligible environmental cleanup costs. These costs would serve as the
basis for the award. Among the environmental cleanup costs were asbestos
abatement; removal of underground storage tanks and removal of contaminated
soils. If awarded, the grant funds must be used to pay for, or reimburse, the eligible
1119grant
environmental cleanup costs. All of these costs were, or will be, incurred by Best
Buy. Therefore, if awarded, the HRA would essentially provide these funds directly
• to Best Buy.
In order to meet the grant deadline, the application was submitted by HRA staff on
October 26, 2001 pending approval of the attached resolution. A copy of the grant
application is available for review in the Community Development Department.
Copies are not being provided at this time because the application is bulky, has
oversized maps and would be cumbersome to photocopy.
III. BASIS OF RECOMMENDATION
A. POLICY
• Environmental costs were incurred in the redevelopment of the
Interchange West Area.
• Funds are available for the expenditure of funds for environmental
cleanup through the Tax Base Revitalization Account.
• The funds, if received, .would be provided to Best Buy for
reimbursement of their environmental cleanup costs.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• If the grant were awarded, then the HRA would enter into an
agreement or an amendment to.the development contract with Best
Buy, under which the HRA would reimburse Best Buy for up to the
amount of the grant award for environmental cleanup costs that were
incurred.
• If Best Buy's reimbursement of environmental costs were to result in
their site costs falling below $49,709,798 (as specified in Section 3.2
of the Contract for Private Development), then the amount of tax
increment financing available to Best Buy would be reevaluated.
D. LEGAL
• Legal counsel has reviewed the attached resolution.
IV. ALTERNATIVE RECOMMENDATION~S~
• N/A
V. ATTACHMENTS
• Resolution authorizing submittal of an application to the Tax Base
Revitalization Account.
• VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING APPLICATION FOR THE TAX BASE REVITALIZATION
ACCOUNT
WHEREAS, the City of Richfield, Minnesota (the "City") is a participant in the
Livable Communities Act's Housing Incentives Program for 1996 as determined by the
Metropolitan Council, and is therefore eligible to make application for funds under the Tax
Base Revitalization Account; and
WHEREAS, the City has identified aclean-up project within the City that meets the
Tax Base Revitalization account's purpose/s and criteria; and
WHEREAS, the City has the institutional, managerial and financial capability to
ensure adequate project administration; and
WHEREAS, the City certifies that it will comply with all applicable laws and
regulations as stated in the contract agreements; and.
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota agrees to act as legal sponsor for the project contained in the Tax
Base Revitalization grant application submitted on October 26, 2001.
NOW, THEREFORE, BE IT RESOLVED that Community Development Manager
John .Stark is hereby authorized to apply to the Metropolitan Council for this funding on
behalf of the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota and to execute such agreements as are necessary to implement the project on
behalf of the applicant.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of November, 2001.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•
•
AGENDA ITEM # 3D
REPORT # 65
STAFF REPORT
~ HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2001
REPORT PREPARED BY: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW.: ~i~i~' 1 _ .„
REVIEWED BY EXECUTIVE. DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of entering into a contract with Short Elliot Hendrickson. Inc. for building
evaluation services.
I. RECOMMENDED ACTION:
By Motion: Approve retaining the services of Short Elliot
Hendrickson, Inc. to conduct building evaluations to qualify selected
areas identified for redevelopment for tax increment financing.
III. BACKGROUND
Minnesota State statutes require that structures in an area identified for
redevelopment meet condition standards before tax increment financing (TIF) can
be utilized. The company which provided that assistance to the Housing and
Redevelopment Authority (HRA) in the~past no longer does so. Staff interviewed
three companies and has determined that the company of Short Elliot Hendrickson,
Inc. (SEH) is qualified to undertake this activity.
•
1119Hendrickson
III. BASIS OF RECOMMENDATION
A. POLICY
• State law requires that all structures within a redevelopment area to
be redeveloped and financed with TIF meet standards as stated in the
statutes. Each structure must be evaluated to determine its
compliance with the standards.
B. CRITICAL ISSUES
• It is necessary to retain the services of a contractor to permit the
redevelopment process to continue. The first project in which SEH
would be utilized is the site proposed for City Bella.
C. FINANCIAL
• SEH bills at $60 per hour. A single family home would likely cost
approximately $200. A commercial building would cost approximately
$300. There are many variables which could cause the cost to move
down or up. The two basic elemen#s of the work include evaluating
the structure and preparing a .report, which would meet the
requirements of the statute. The redeveloper would pay for the cost of
the evaluations.
D. LEGAL
• Staff as well as representatives from Kennedy & Graven, and Ehlers &
Associates, Inc. have reviewed the information presented by SEH and
are satisfied with their ability to perform.
IV. ALTERNATIVE RECOMMENDATION(S~
• Reject SEH and direct staff to identify another contractor.
V. ATTACFIlVIENTS
• N/A
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• N/A
•
C
STAFF REPORT
AGENDA ITEM # 3E
REPORT # 6 6
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2001
•
•
REPORT PREPARED BY: BRUCE PALMEORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
I,~.~1
SIGNATURE
REVIEWED BY EXECUTIVE DIRECTOR: ~ /" \ _ _ ~ _ ~~ ~ _ ^
ITEM FOR HRA CONSIDERATION:
I. RECOMMENDED ACTION:
By Motion: Authorize the City to lease a portion of the Gleason
Mortua ro ert at 7601 Pleasant Avenue.
II. BACKGROUND
The Housing and Redevelopment Authority (HRA)-purchased the mortuary property.
when the business ceased operation. The building and site are vacant.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA purchased the property at an opportune time and is holding
it for development. However, development will not be pursued until
the future of the adjacent City garage is determined.
• The HRA has leased land on a temporary basis to the City in the-past.
1119GIeason
B. CRITICAL ISSUES
• It would be safer for City equipment to enter and exit the City garage
via 76th Street. Also the City could use additional outside storage.
The mortuary site would provide both the safer access and additional
storage space.
C. FINANCIAL
• Rental income would be $300 per month.
D. LEGAL
• The lease would be similar to those previously used with the city with
a 60-day cancellation provision by either party.
IV. ALTERNATNE RECOMMENDATION(S~
• Reject the leasing concept.
V. ATTACHMENTS
• N/A
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• N/A
AGENDA ITEM #
REPORT #
•
J STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2001
•
REPORT PREPARED BY: PAM BOOKHOUT,
REHABILITATION SPECIALIST
NAME, TITLE
BRUCE PALMBORG,
REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
SIGNATURE
REVIEWED BY EXECUTIVE DIRECTOR: ~ ~i~ ~ ~~/~ / , n
ITEM FOR HRA CONSIDERATION:
Public hearing and approval of the attached resolution authorization the sale of 6529 Emerson
Avenue South to Real Property Investment for new construction of a single family home.
I. RECOMMENDED ACTION:
Conduct and close a public hearing and by motion: Approve the
attached resolution authorizing the sale of property located. at 6529
Emerson Avenue to Real Property Investment.
II. BACKGROUND
The Housing and Redevelopment Authority (HRA) purchased the property at 6529
Emerson Avenue South for redevelopment under the Richfield Rediscovered
Program. The HRA authorized sale to a builder in August 2001. The builder's
financing fell through, therefore the relationship of the builder and the buyer fell
through. The buyer has selected a new builder who has more experience and
financial capability.
• Demolition of the existing house and garage has already occurred. The new two-
story home will be approximately 2,230 finished square feet. Its end value is
anticipated to be approximately $220,000 and construction is anticipated to start in
1119-6529 Emerson
November, depending on the weather. The Contract for Private Development is
similar in form and content to past contracts.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA acquired the site for development under the Richfield
Rediscovered program.
• The builder has shown an acceptable level of experience and
qualification.
• The terms of the Contract for Private Development have been
negotiated. and are in conformance with program guidelines.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• According to the program guidelines, the builder must provide a Letter
of Credit or other acceptable security upon closing to cover the
purchase price of the land, $44,000, and performance security in the
same amount.
D. LEGAL
• Notice of public hearing on sale of the property was published on
November 7, 2001 in the Sun-Current.
IV. ALTERNATIVE RECOMMENDATION~S~
• Do not proceed with the Contract for Private Development with the
recommended builder and direct staff to find another buyer.
V. ATTACHMENTS
• Resolution
House plans/elevations
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
•
HRA RESOLUTION NO.
• RESOLUTION AUTHORIZING THE SALE OF PROPERTY LOCATED AT
6529 EMERSON AVENUE TO REAL PROPERTY INVESTMENT
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 6529 Emerson Avenue South, and whose legal description is The north
60 feet of Lot B, Silverwood Second Addition to Richfield, Hennepin County, Minnesota;
and
WHEREAS, the HRA is authorized to sell real property within its area of operation
after a public hearing; and
WHEREAS, the purchaser of the described property has been identified as Real
Property Investment; and
WHEREAS, a Contract for Private Development has been prepared, and the sale
price of the land is $44,000 with performance security in the same amount; and
WHEREAS,. a public hearing has been .held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
• Authority in and for the City of Richfield, Minnesota:
1. A public hearing has been held and 6529 Emerson Avenue is authorized to be
sold for $44,000 to Real Property Investment; and
2. The Chairperson and Executive Director are authorized to execute a Contract for
Private Development and other agreements as required to effectuate the sale to
Real Property Investment.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of November, 2001.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•
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AGENDA ITEM #
REPORT #
STAFF REPORT
r HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2001
5
6.8
REPORT PREPARED BY:
CHRIS REGIS, FINANCE MANAGER
NAME, TITLE
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Public hearing and adoption of the 2002 HRA proposed tax levy and budget and consideration
of resolution authorizing revision of the 2001 budget of the HRA.
I. RECOMMENDED ACTION:
By Motion: Adopt the resolution adopting a 2002 HRA budget and
property tax levy for 2002 and a resolution adopting revision of the
2001. budget of the HRA.
II. BACKGROUND
At the August 20, 2001 meeting, the HRA adopted a preliminary levy. That levy was
then forwarded to the City Council and adopted with the City's preliminary levy.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA approved the Proposed 2002 Budget and Proposed 2002
• HRA General Fund tax levy at its August 20, 2001 meeting.
• A public hearing on the proposed HRA 2001 budget and tax levy has
been scheduled for November 19, 2001 to provide for public input.
11.19budget
CHRIS REGIS, FINANCE MANAGER
• The HRA levy will be included as part of the City's final levy
documents which will be considered at the City's public hearing on
. December 10, 2001.
B. CRITICAL ISSUES
• The HRA should now take official action to finalize the HRA budget
and tax levy.
• Notice of the public hearing was published in the November 7, 2001
Richfield Sun Current.
C. FINANCIAL
• The Proposed 2002 HRA levy represents a 26.9% increase from the
previous year's levy. The increase is the result of the passage of the
Omnibus Tax Bill, which eliminates Homestead and Agricultural Credit
Aid (RAGA).
• The proposed levy represents a decrease of $16,761 from the
preliminary levy submitted on August 20, 2001. The decrease is due
to adjusted base value figures provided by Hennepin County.
• The amount of HACA lost by the passage of the tax bill is
approximately $48,500, which represents 23.3% of the previous year's
levy.
• The Omnibus Tax Bill allows-the taxing authorities to levy for the lost
HACA aid. Accordingly the HRA has levied for the lost HACA aid.
•
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION~S~
• The HRA could adopt a preliminary levy less than the one proposed herein.
However, that would not provide for programs that are recommended in the
2001 Revised/2002 Proposed budget.
V. ATTACHMENTS
• Resolution Approving Proposed 2002 Housing and Redevelopment Authority
Budget and Certifying the 2002 Tax Levy
• Resolution Authorizing Revision of the 2001 Budget of the Housing and
Redevelopment Authority of Richfield
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
n
U
HRA RESOLUTION NO.
•
•
RESOLUTION APPROVING PROPOSED 2002 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2002 TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of
Richfield, Minnesota as follows:
Section 1. The budget for the Housing and Redevelopment Authority
General Fund of Richfield for the year 2002 in the amount of
$734,990 is hereby ratified.
Section 2. The estimated gross revenue of the Housing and Redevelopment
Authority General Fund of Richfield from all sources, including
general ad valorem tax levies as hereinafter set forth for the year
2002, and. as the same are more fully detailed in the Executive
Director's official copy of the budget for the year 2002, in the
amount of $599,020 is hereby approved.
Section 3. There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2001, payable in 2.002 for-the
following purposes:
Housing and Redevelopment Authority $263,954
Section 4. A certified copy of this resolution shall be transmitted to the County
Auditor.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of November, 2001:
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
C
HRA RESOLUTION NO.
• RESOLUTION AUTHORIZING REVISION OF THE 2001 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No. 790 appropriated funds for personal services and other
expenses and capital outlay for the Housing and Redevelopment Authority for the year
2001; and
WHEREAS, The Executive Director has requested a revision of the 2001 budget as
detailed in the 2002 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
Section 1. That the 2001 appropriation for the Housing and Redevelopment
Authority General Fund be revised as follows:
$72,820 Increase
Section 2. Estimated 2001 gross revenue of the Housing and Redevelopment
.Authority General Fund from- all sources, as the same are more fully
detailed in the Executive Director's official copy of the 2002 budget
document, are hereby revised as follows:
•
$239,030 Increase
Section 3. That the Executive Director bring into effect the provisions of this
resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of November, 2001.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•