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08-20-01 agendaCITY OF RICHFIELD MONDAY, AUGUST 20, 2001 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 7 P.M. AGENDA Call to order Approval of minutes of (1) Special HRA Closed Executive Session of July 16,.2001; (2) Regular HRA Meeting of July 16, 2001; (3) Special Concurrent HRA and City Council Meeting of July 25, 2001; and (4) Special Concurrent HRA and City Council Meeting of August 1, 2001 1. Opportunity for citizens to address the HRA on items not on the agenda Notes: • 2. HRA approval of agenda 3. Introduction of City Bella revised concept plan Staff Report No. 52 Notes: 4. Public hearing and consideration of resolution authorizing sale of 7241 Second Avenue and 6929 Queen Avenue to KEY-LAND HOMES; 6529 Emerson Avenue to Professional Builders Corporation; and 6856 Park Avenue to Spencer Dahl Construction and Rachelle A. Reynolds; all for single family home new construction Staff Report No. 53 Notes: 5. Public hearing and consideration of resolution authorizing sale of 6444 Clinton Avenue to Affordable Suburban Housing, Inc. for rehabilitation and sale to first-time buyer Staff Report No. 54 • Notes: 6. Consideration of resolutions approving 2002 Proposed HRA budget and tax levy and 2001 HRA budget Staff Report No. 55 Notes: 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 Administrative Services Director at 612-861-9702. • C7 • J STAFF REPORT AGENDA ITEM # REPORT # HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2001 6 55 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, TITLE • REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolutions approving proposed property tax levy for payable 2002 for certification to Hennepin County I. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions approving the 2002 Proposed Housing and Redevelopment Authority Budget and Tax Levy and 2001 Revised Housing and Redevelopment Authority Budget. II. BACKGROUND N/A III. BASIS OF RECOMMENDATION A. POLICY • Minnesota Statutes require adoption of a preliminary levy from each taxing authority. • The budget and accompanying proposed levy for 2002 are ready for consideration. 0821 budget STEVEN L. DEVICH, ADMINISTRATIVE • Even though a pubic hearing for the HRA tax levy is not required by State Statute, this does not preclude the HRA from opening this item up for public discussion if the HRA desires to do so. B. CRITICAL ISSUES • As required by State Statutes, each taxing authority must certify its proposed tax levy for the payable year 2002 to the County Auditor on or before September 15, 2001. C. FINANCIAL • The Proposed 2002 HRA levy represents a 35% increase from the previous year's levy. The increase is result of the passage of the Omnibus Tax Bill, which eliminates Homestead and Agricultural Credit Aid (HACA). • The amount of HACA lost by the passage of the tax bill is approximately $48,500. • 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 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 $751,420 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 $615,450 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 2002 for the following purposes: Housing and Redevelopmenf Authority $280,715 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 20th day of August, 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • 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 20th day of August, 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary AGENDA ITEM # ~ REPORT # 5 4 • STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2001 • • PAM BOOKHOUT, REPORT PREPARED BY: REHABILITATION SPECIALIST NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: f~~(.~1 SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Public hearing and authorization to sell 6444 Clinton Avenue South to Affordable Suburban Housin Inc. for rehabilitation and sale to a first-time bu er. I. RECOMMENDED ACTION: By Motion: Conduct and close a public hearing and by motion: Adopt the resolution authorizing the sale of 6444 Clinton Avenue South to Affordable Suburban Housing Inc. for rehabilitation and sale to a first- time bu er. II. BACKGROUND In February, the HRA authorized purchase of the property at 6444 Clinton Avenue South for rehabilitation and subsequent sale to a qualified first time buyer. Affordable Suburban Housing Inc. (ASH) has been working with an eligible buyer with physical disabilities to determine necessary improvements. Improvements to the property will include: • Constructing a 10-foot addition to the rear of the property to accommodate a larger kitchen. • Remodeling the kitchen for accessibility, including providing a wheel chair radius, accessible countertops, etc.; 0820-6444 Clinton • Remodeling the bathroom and main bedroom to allow proper door widths and turning radii; • Creating a main level laundry area; • Replacing the roof and installing siding to match existing; and • Sealing the well and completing any other code compliance items noted in the City's Point of Sale inspection prior to sale. The identified homebuyer is pre-qualified fora $100,000 mortgage. The HRA would provide a second mortgage to make up the difference in value. The property was initially purchased for $126,000. Since improvements are accessibility related, it is not yet known what a mortgage lender's appraised value will be. -However, the HRA's second mortgage will be deferred for 30 years at zero percent interest, as is standard under the New Home Program. The developer, ASH, would receive the $100,000 first mortgage proceeds upon sale to the buyer. The developer proceeds would be used as follows: Remodel (developer's portion of rehab expense) $73,250 Miscellaneous costs (to include developer fee, contingency, maintenance, landscaping, taxes) $10,000 Purchase price (payable to HRA) 16 750 Total $100,000 Therefore the sale price of the property to ASH would be $16,750. Sale to ASH would occur by early September, and remodeling would be complete by December. i III. EASIS OF RECOMMENDATION A. POLICY • The HRA acquired the site for an affordable housing opportunity under the New Home Program. • Affordable Suburban Housing Inc. is anon-profit housing developer who has done previous developments in Richfield. • A Contract for Development has been prepared to govern the sale to ASH, the rehabilitation and the subsequent sale to a first-time buyer. B. CRITICAL ISSUES • N/A C. FINANCIAL • The property was purchased with federal Community Development Block Grant funds. • ASH must provide a letter of credit for performance security. D. LEGAL • Notice of public hearing on the sale of the property was published on August 8, 2001 in the Sun-Current. IV. ALTERNATIVE RECOMMENDATION~S~ • Do not proceed with the contract for Development with Affordable Suburban Housing Inc. and direct staff to find another buyer. V. ATTACHMENTS • Resolution • Financial detail VI. PRINCII'AL PARTIES EXPECTED AT MEETING • N/A • • HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6444 CLINTON AVENUE SOUTH TO AFFORDABLE SUBURBAN HOUSING INC. 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 New Home Program adopted by the HRA, said real property being described as Lot 6, Block 2, Ralph Milner's Second Addition; 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 Affordable Suburban Housing Inc., and a Contract for Development has been negotiated for a sale price of $16,750 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 6444 Clinton Avenue South is authorized to be sold for $16,750 to Affordable Suburban Housing Inc.; 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 the developer. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of August 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • 6444 Clinton Avenue South Purchase/Rehab/Sale ACQU/S/T/ON BY C/TY/HRA Sources Uses CDBG reimbursement $114,750 Purchase from seller $126,000 Proceeds from sale to develo er $11,250 Total $126,000 Total $16,750 Total $16,750 ASH Sources ASH Uses SALE TO DEVELOPER HRA Sources HRA Uses • Sale HRA to ASH $16,750 Ori final Purchase $11,250 Return to New Home bud et $5,500 Proceeds from sale to bu er $100,000 Remodel contract (developer rehab ex ense $73,250 Miscellaneous costs $10,000 (to include developer fee, contingency, maintenance, landsca in ,taxes Purchase rice $16,750 Total $100,000 Sn~ ~ rr_a¢ REHAB F/NANC/NG Total ~~16,UUu i ota~ ~~ uu,uuu Uses CDBG $5,250 Remodel costs $78,500 HRA rehab ex ense Proceeds from sale to $73,250 buyer (developer rehab ex ense Total $It3,5UU • SALE TO END BUYER i oral ~its,avu Sources Uses First mort a e b Bu er $100,000 Sale ASH to Bu er $130,000 Second mort a e b HRA $30,000 Total $130,000* Total $130,000 *This figure is an estimate. If en d value of home increases based on lender appraisal after rehabilitation, the lien amount would be increased to match the amount over $100,000. The end buyer qualifies fora $100,000 first mortgage. C] AGENDA ITEM # 4 REPORT # 53 STAFF RETORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2001 REPORT PREPARED BY: NAME, TITLE • REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: PAM BooxxouT, REHABILITATION SPECIALIST BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR ITEM FOR HRA CONSIDERATION: Public hearing and authorization to sell 7241 Second Avenue South and 6929 Queen Avenue South to KEY-LAND HOMES, 6529 Emerson Avenue South to Professional Builders Corporation, and 6856 Park Avenue South to Spencer Dahl Construction and Rachelle A. Revnolds for new construction of single family homes. I. RECOMMENDED ACTION: By Motion: Conduct and close a public hearing and by motion: Adopt the resolution authorizing the sale of 7241 Second Avenue South and 6929 Queen Avenue South to KEY-LAND HOMES, 6529 Emerson LJ Avenue South to Professional Avenue South to Spencer Dahl Revnolds, all for single family Builders Corporation, .and 6856 Park Construction and Rachelle A. home new construction. II. BACKGROUND The HRA purchased all of the identified properties for redevelopment under the Richfield Rediscovered Program. (6856 Park Avenue was subdivided, and the north lot at 6852 Park Avenue is under construction for the Parade of Homes Fall Showcase.) Each site will have a new home built on it, as follows: 0820Richfield Rediscovered ~ NAME, TITLE • 7241 Second 6929 Queen 6529 Emerson 6856 Park House t e Two sto Two sto Two sto Two sto Finished 2,016 2,016 2,230 2,442 square foots e Bedrooms/ 4/2%2 4/2%2 4/3 3/2'/2 Baths Required end Minimum Minimum Minimum Minimum value $235,000 $240,000 $195,000 $260,000 Garage Detached Detached Attached double Three car garage; access garage; access car garage garage, 69`h from alle from alle Street access All sites are cleared. Closing of land sales to builders and construction starts are all expected by September. KEY-LAND HOMES and Spencer Dahl have both built under the program previously. The Contract for Private Development for the property at 6856 Park Avenue identifies both the builder, Spencer Dahl, and the end buyer as "Developer" due to requirements of the construction financing. Professional Builders Corporation is new in Richfield. They have proved to have the experience and financial capacity to build under the Richfield Rediscovered Program. • III. BASIS OF RECOMMENDATION A. POLICY • The HRA acquired all sites for development under the Richfield Rediscovered program. Two of the three builders have built under the program previously. Professional Builders Corporation is licensed and has provided appropriate supplier and customer references. The terms of the Contracts for Private Development have been negotiated and are in conformance with program guidelines. B. CRITICAL ISSUES N/A C. FINANCIAL Each builder must provide a Letter of Credit upon closing to cover the required performance security, and a separate Letter of Credit or cash to cover the purchase price of the land. D. LEGAL • . Notice of public hearing on sale of the properties was published on August 8, 2001 in the Sun-Current. IV. ALTERNATIVE RECOMMENDATION~S~ • Do not proceed with the Contracts for Private Development with the recommended builders and direct staff to find other buyers. V. ATTACHMENTS • Resolution House plans/elevations VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • C7 HRA RESOLUTION NO. • RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7241 SECOND AVENUE SOUTH AND 6929 QUEEN AVENUE SOUTH TO KEY-LAND HOMES, 6529 EMERSON AVENUE SOUTH TO PROFESSIONAL BUILDERS CORPORATION, AND 6856 PARK AVENUE SOUTH TO SPENCER DAHL CONSTRUCTION AND RACHELLE A. REYNOLDS 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 7241 Second Avenue South 6929 Queen Avenue South 6529 Emerson Avenue South 6856 Park Avenue South Legal Description Lot 14, Block 6, Wooddale Second Addition Lot 17, Block 16, Tingdale Bros. Lincoln Hills Third Addition The north 60 feet of Lot B, Silver Wood Second Addition to Richfield The south 55 feet of Lot 4, Block 3, Portland Avenue Acres Addition and . WHEREAS, the HRA is authorized to sell real property within its area of operation after a public hearing; and WHEREAS, the purchasers and purchase prices of the described properties have been identified as follows: Builder Address Purchase price KEY-LAND HOMES 7241 Second Avenue $47,000 KEY-LAND HOMES 6929 Queen Avenue $53,000 Professional Builders Corp 6529 Emerson Avenue $44,000 Spencer Dahl Construction 6856 Park Avenue $50,000 and Rachelle A. Reynolds and performance security in the same amount as the purchase price has been required for each property; 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 7241 Second Avenue South and 6929 • Queen Avenue South are authorized to be sold for $47,000 and $53,000 respectively to KEY-LAND HOMES; 6529 Emerson Avenue South is authorized to be sold for $44,000 to Professional Builders Corporation; and 6856 Park Avenue South is authorized to be sold for $50,000 to Spencer Dahl Construction and Rachelle A. Reynolds; and • 2. The Chairperson and Executive Director are authorized to execute Contracts for Private Development and other agreements as required to effectuate the sale to the builders. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of August 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • 6856 PARK AVE S ,,,~.~v 11~ ~v ~ I ~,s N~ . ~'~i_ ~~~ '' [7 • ~ i - 11. ' ~ i S~CC)ND LEVEL ~~~ ;, ~ f ~,~~,~ : ~ w,, d^v ~ ~ I~ i 4 ~ :~ I ~ ~, ;,~ t„~~~~~ I~ y. ~ i ~ ~ ~ ~ W i1 U~~ ~ _ _ o `•. 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SFavGt.PS s . i ~ vwri SIDING ct.0 CCl~T6~5 i I ~ ~, REAR ELEVATION SCALE ~ I /8' - I ' - O' 724 y SECOND AVE S 6929 QUEEN AVE S ~imilar plan for both sites.} RIGI-IT ELEVATION SCALE I /8• i • -C' iz b+ 00 vrvr~ SIDING cND coar>azs ao LEFT ELEVATION SCALE I /8' - I ' - O• QU.IWVM 0PD F4~C ,2' I. x-v lir u+cao-~.w wa. R ~~ ~ ~ P FAMILY ~6-s , u- CAIFEf P i 2'-I I' - - i ~, x-x.Ix•, wo ~ ~ a+a,T 0 0 DINETTE ° ~ ~ ~ - ~' - ~ ° KITCHEN ~- .,- w. ~t VNTL - P VIAL F1Ai'O O FaN ~ L - ~. 9' SNKX L FOQ C?BIPET DETAlS Si-z 0.0.1. LGYOUT. JOB SL.P TO POST ON 517E 4T ze 4 I /T d I /Y ~" AbYP1C STG~c . ~ ~. ~ 5, _2-xal0 WC _~ - - °t MAtN LEVEL x-z.lo wa. o. ar v w ~ i~ B TN b 'O /1 \ LIVING ~ I~~/) { i - i -3 a ~ C~ii 2a6'. `a ~ a 9+. C P N °~ FC VM Q Q ~~ DINING o ~ -~i_j LL F r P `a P • SECOND LEVEL, • 5 ~- i ~ o W ~ ~~ ®O ~I ® 3T'Y~n ,r aT ~OA ~~ R+ E ((~~ I ~ ~I Sl. E c70D_ i poi I x~~ ~ 'SR ~ - ~~ ~g I L_- i I ~ IW / vl ~ ,N ~ ~I JI~ •6 ~I 9d. E GCO I U1 i 1 , n ~P I ~ ~ 9a. C OOD I I ~ ~,il 9.OZ` ~ N I I ti ~~i EA~~~'1 ,I ~(} ~ aMr vnNn I CWNE?', SiJITE ~ai°°O°1 EE^RCOM ~ 1 a ~ ~ ~ ~T I ~. „~ W ~~ i r-~ ,o d. i ,, r AGENDA ITEM # REPORT # STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY 1VlEETING AUGUST 20, 2001 3 52 REPORT PREPARED BY: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER ]NAME, TITLE REPORT PRESENTER: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: .ITEM FOR HRA CONSIDERATION: Introduction of the City Bella revised concept plan. I. RECOMMENDED ACTION: By Motion: Receive the report from the developer. No action is re uested. II. BACKGROUND City Bella was approved by the Housing and Redevelopment Authority (HRA) and City Council in December 2000. Multiple events occurring during the spring of 2001 have resulted in sufficient changes to warrant repeating the review and approval process: • SufFcient rental housing mortgage financing from the Federal Housing Administration (FHA) could not be secured for the project as designed. • Property tax compression by the State Legislature reduced by approximately half the availability of tax increment to reimburse the developer on pay as you go basis for costs of acquisition and redevelopment. • Without FHA lower rate financing, alternative resources for affordability and retailing have to be sought. 0820CityBella • The size of buildings and their location along Lyndale Avenue and 66th Street has changed. The Villa on Lake Shore Drive has not changed. Gramercy Corporation began apre-marketing of the City Bella/Gramercy Club concept in June. The plans received by staff in July down sizes the number of units and retailing space in the development and up sizes, significantly, the amount of surface parking. Attachment A provides a detailed comparison of the approved 2000 and proposed 2001 project. The proposal includes a 125-unit, 18-story non-age restricted for sale cooperative building at the intersection of Lyndale Avenue and 66th Street; 30,000 sq. ft. of commercial and restaurant space on Lyndale Avenue, a 34-unit, three story senior cooperative building on Lake Shore Drive just west of the new Gramercy Cooperative building; and a public plaza at the center of the development. The plaza connects all the adjacent uses in a coordinated way. Gramercy has also accomplished the following: • Negotiated the terms and made financial commitments to the owner of Lyndale Hardware. • Secured preliminary commitments on 20 of the 125 units in the Tower. (A 60 to 70 percent - 70 to 80 unit commitment is sought prior to construction.) • Construction is anticipated, pending approvals and commitment, for spring 2002. The following is the proposed City/HRA review schedule as of August 20, 2001: • August 20 -HRA is introduced to the revised concept. City Council is invited to attend. HRA meeting - No action being taken • August 21 -Planning Commission is introduced to the revised concept. Planning Commission Study Session - No action being taken. • September 25 -Planning Commission is requested to act on the proposal as a Planned Unit Development (PUD) and authorize the Final Development Plan (FDP) and any Conditional Use Permits (CUP). • October 15 -HRA is requested to act on the proposal - a revised Contract for Private Development and to evaluate a request for Tax Increment Financing (TIF) assistance. November -City Council will be requested to review and act on the finding of the Planning Commission; date to be determined pending progress in the review. III. BASIS OF RECOMMENDATION A. POLICY • The HRA's and developers actions are guided by a Contract for • Private Redevelopment. • In 1999, the "Lakes at Lyndale" master plan was completed. Lyndale Hardware and adjacent property are a key area of the plan. The plan forecasts that between 1999 and 2002, a project would be considered. B. CRITICAL ISSUES • Sufficient surface parking; the plan responds positively to this concern and is being further reviewed by staff. • Sufficient retailing; the amount and placement of the retailing is being reviewed by staff. • Providing affordability; the Gramercy Club Tower provides top housing values in an area of more affordable existing housing (Lake Shore Drive Condominium -178 units and Woodlake Point Condominium - 157 units) much like Richfield Rediscovered provides new higher value homes in existing neighborhoods. Staff is working with the developer on a financial contribution to support a specific affordability initiative. • Too great an emphasis on senior housing? Approximately 20 percent of the units (at The Villa) are dedicated to seniors. Gramercy Club is targeted to empty nestor households. • The overall design and building placement; is being reviewed by staff. The new plan offers less dense uses and environmental impact. C. FINANCIAL • The initial tax increment projections suggest that property tax compression, even with increased overall project value, will result in a lower tax increment than the previous development concept. • Establishment of a new tax increment district will be required. D. LEGAL . • Deadlines for property acquisition and financial commitments have passed based on the Contract. However, the Contract also states that: "If the Redeveloper is making substantial progress with respect to the redevelopment project, and is unable to meet one or more of the reference deadlines, the HRA and the Redeveloper shall negotiate in good faith for a reasonable period to extend the time". • Action on the Contract by the HRA is scheduled for October 15. • In good faith, the developer paid Lyndale Hardware anon-refundable $175,000 toward the acquisition of the property on July 31, 2001. • The developer is actively pre-marketing the revised concept and working with the lender to maximize the loan to value for the project. ~ IV. ALTERNATIVE RECOMMENDATION(S) ~ is being requ ATTACPIMENTS • Approved 2000, Proposed 2001 Comparison (Attachment A) • City Bella revised Concept Plan set, 18 pages (Attachment B) VI. PRINCIPAL PARTIES EXPECTED AT MEETING MiKe (:onlan, vramercy corporation City Council Members invited to attend the concept presentation. • ATTACHMENT A ~p~ a N f _ .i C rJ t ~~.. ~ ~~ o ~': ~ ' ~,~` ~,` '' ' 3 `~~ '~, o rv • ~ O U r, U . ~ c~ c~ c a> mr;. ~'i m ~ - . ~;,:;~~ c y o N ~ h i~~k ~ iii?i N N ~ , ,~, U1 (A tll U) , ? i Q +~° C) ~ ;"~~i O O O N~ ,,' O ~ t i~ ~~ O TO O O C C C C O~ N iDO t~!~'C~~„'b '.aaa 5 Q- U ~O ~' ~''t~~0 O. 00 7 0 0 0 ~~ ~' ` O N N~ 1 N N N N t i{ ~~ i' ~ C~ ~ ~'~ iG O O Gp N O M ~ O ~ Cl O ' O NI N N tNl ~ V ' r- ~ ~ ~ O N M ~~ .~ EA Et? fA ~ r Z Q.,h. C7 'ti ~ ;M M ~ i ~" fir' ~' ~~f ,. r ~{E N ~'tF~' , i, N ~i {.ate N N _ ?, N c ,... 'C Q tr; Q ' t0 ~ a Q I' N N ~ N N L. ~ ~ y?': 4. F- J 9 , , ~, H J ~ ~' ,:'~ ,~~s h,~` p 0 O 5 ~~r 'r,. a ~ ~'. ~ O ,,. ~ O N a T, ' ~ p ~ ' ~ , ';' t~`0 ~ U ~ N ,, ~ ` C p Ci O O ', i ' C C +-~ ~• E 'O !d V ~ '~ ~ .N in .' . O t' O ~~ , ~~ ~ N ~~J N v1 N ~ O ~ O O! O ,iiOit~'O •hN ~ c cam' _ rn~ `~ ~ N N ca m ca' ~~; ~y.;'Z,Es sr ;g „~~°n, .O ~ O 7 ~ ~", rt3+ ~ ~ O 'C ~ ~ N N (~~, ~x ,, ~ ;.~ ~ ~ p ~ p~t~O Etiri~,~~'~ mN ~~~M ', N O ~ ~j ~ Nr0.+ (00t~N''u¢eOc, ~ O C fAt~ dlF'~,iiO ~iG:~'r'~'~~ ~,, N c+~ ; ~ Z Q v ~ ~ NI o ~ cfl ~ ti a ~, ti ~ ~- ~, : ~ 3 ti o ch ',~,~~ v~ ~~ ? `~ N~'ii?, ~ ~~ ~Ir ~ r ~ ~1,. ~ ~t ~ I ~ y; ~: ~ ~ . ~z~ a ~, ~t ~~ r~. V ~ F , i 6. 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