10-18-99 agendaCITY OF RICHFIELD
MONDAY, OCTOBER 18, 1999
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
7 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR. HRA MEETING OF SEPTEMBER 20, 1999
OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2~ CONSIDERATION OF CONTRACT FOR PRIVATE REDEVELOPMENT WITH
TWIN CITY CHRISTIAN HOMES FOR EAST SIDE OF LYNDALE AVENUE AND
WEST SIDE. OF GARFIELD AVENUE WITHIN LYNDALE GATEWAY
REDEVELOPMENT AREA
HRA LETTER NO. 63
/3. CONSIDERATION OF RESOLUTION AUTHORIZING EMINENT DOMAIN
PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTY IN TWIN CITY
CHRISTIAN HOMES ELEMENT OF LYNDALE GATEWAY REDEVELOPMENT
AREA
HRA LETTER NO. 64
,/4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF 7025 NICOLLET AND 7133 LYNDALE AVENUES TO GEROLD BROS.
CONSTRUCTION, INC. FOR RESIDENTIAL DEVELOPMENT
HRA LETTER NO. 65
,/5. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION REGARDING
SALE OF 6241-14TH AVENUE
HRA LETTER NO. 66
~/~6. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 6812
QUEEN AVENUE WITH COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FOR NEW HOME PROGRAM
HRA LETTER NO. 67
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~1. CONSIDERATION OF RESOLUTIONS ESTABLISHING PUBLIC HEARING ON
GENERAL CRITERIA FOR BUSINESS SUBSIDIES AND BUSINESS SUBSIDY
AGREEMENT TO FUND STORM SEWER IMPROVEMENTS AT WOODLAKE
CENTRE, LAKES AT LYNDALE
HRA LETTER NO. 68
,/8. CONSIDERATION OF PROPOSED APPROVAL OF OCCUPANY AGREEMENT
FOR USE OF 6639 LAKE SHORE DRIVE BY GRAMERCY PARK
COOPERATIVE AT LAKE SHORE DRIVE
HRA LETTER NO 69
v9. CONSIDERATION OF APPROVAL OF TRANSFER OF TAX INCREMENT
PROCEEDS TO PAY 1999 LYNDALE/HUB/NICOLLET DEBT SERVICE
REQUIREMENTS
HRA LETTER NO. 70
10. EXECUTIVE DIRECTOR REPORT
11. 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.
•
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 71
Agenda October 18, 1999
Issue Statement:
Consideration of resolution appointing the Executive Director for the Housing and
Redevelopment Authority.
Background:
Samantha Orduno assumed the position of City Manager on October 12, 1999. The
City Manager also serves as Executive Director of the Housing and Redevelopment
Authority (HRA).
The HRA by-laws provide that the Executive Director shall be appointed by the HRA.
Therefore, the HRA is being asked to officially appoint City Manager Samantha Orduno
as Executive Director'of the HRA and ratify all activities as Executive Director to date.
Recommended Motion:
Approve the attached resolution officially appointing City Manager Samantha Orduno as
Executive Director of the HRA and ratifying all activities as Executive Director to date.
Basis of Recommendation:
The HRA by-laws provide that the Executive Director shall be appointed by the HRA.
Alternative Recommendation:
None.
Discussion/Decision Mode:
This item is presented for HRA approval on October 18, 1999.
Respectfully submitted,
_ `' ~~~r.~---_
Samant a ` r-duno
Execu ' e Director
SO:cak
•
HRA RESOLUTION NO.
RESOLUTION APPOINTING CITY .MANAGER SAMANTHA ORDUNO
AS EXECUTIVE DIRECTOR OF THE HOUSING
AND REDEVELOPMENT AUTHORITY
WHEREAS, the HRA by-laws provide that the Executive Director shall be
appointed by the HRA.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. City Manager Samantha Orduno is appointed Executive Director of the Housing and
Redevelopment in and for the City of Richfield, Minnesota, and
2. All Executive Director activities to date are ratified.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of October ,1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. ~o
Agenda October 18, 1999
Issue Statement:
Approval of transfer of tax increment proceeds to pay for 1999 Lyndale/Hub/Nicollet
(LHN) debt service requirements.
Background:
Annually, tax increment proceeds are transferred to the City's LHN debt service funds to
cover annual debt service requirements. The use of tax increment proceeds is a
requirement of the respective LHN debt issues. Debt service is paid twice a year on
February 1 and August 1.
It has been recommended by the City's auditors, HLB Tautges Redpath, Ltd., that HRA
approval be obtained and documented for all transfers.
The amount of LHN tax increment needed to cover LHN debt service requirements is
$2,250,262.95.
Recommended Motion:-
It is recommended the HRA approve the transfer of LHN tax increment proceeds to fund
LHN debt service requirements.
Basis of Recommendation:
1. The transfer of LHN tax increment is required to fund LHN debt service
requirements.
Alternative Recommendation:
1. The HRA could defer this item to another HRA meeting for consideration.
Discussion/Decision Mode:
It is a covenant of LHN debt offerings that LHN tax increment proceeds be used to fund
debt service .requirements of LHN debt.
Respec ?ully submitted,
ntha rduno
Executive Director
SO:cak
HOUSING AND REDEVELOPMENT AUTHORITY ~ Q
HRA Letter No. 69 U
Agenda October 18, 1999
Issue Statement•
Proposed approval of an Occupancy Agreement for use of 6639 Lake Shore Drive by
Gramercy Park Cooperative at Lake Shore Drive.
Background:
On June 21, 1999, the Housing and Redevelopment Authority (HRA) approved
acquisition of a single family residential property at 6639 Lake Shore Drive for future
redevelopment within the Gramercy Tax Increment Financing District. At that time, the
HRA also approved the re-sale of the house back to the owner/seller so that the house
could be moved off the property at a cost savings to the HRA for site clearance.
Currently, the owner/seller is under agreement with the HRA to remove the house from
the property by October 15, 1999. When the house is removed, the HRA will have full
possession of the properly.
Adjacent to 6639 Lake Shore Drive, the construction of the seniors' cooperatives at
Lake Shore Drive by Gramercy Park Cooperative (Developer) is well underway. At this
time, the Developer is seeking HRA permission to use the subject properly. Their
construction trailer needs to be relocated because of construction site constraints.
Since there is no immediate use for the property, staff is proposing to allow the
Developer to use the site.
The attached Occupancy Agreement is provided for your review. This agreement:
• Allows the Developer to use the south 100 feet of the property only-for the
requested purpose until such time an occupancy permit is issued by the City's
Inspection Department for the senior cooperative housing- project;
• Does not allow parking on Lake Shore Drive;
• Does not allow-tree removal;
• Allows the HRA to retain its right to enter the property and undertake additional
site clearance activities;
• Requires the removal of the construction trailer within ten days of the issuance of
an occupancy permit for the senior cooperative housing project by the City's
Inspection Department;
• Provides for the termination of the agreement by the HRA should a re-use of the
property be identified and approved; and
• Provides protection for the HRA with regard to hold harmless, liens, and
encumbrances.
The Developer has indicated that the trailer use will not be heavy as it will serve as an
office for construction engineers intermittently throughout the day.
Recommended Motion:
Approve an Occupancy Agreement for use of 6639 Lake Shore Drive for construction
trailer parking by Gramercy Park Cooperative at Lake Shore Drive.
Basis of Recommendation:
1. The HRA purchased 6639 Lake Shore Drive for future redevelopment of the
• Gramercy Tax Increment Financing District.
2. On or about October 15, 1999, the HRA will have full possession of the subject
property after house moving activities have concluded.
3. The developers of Gramercy Park Cooperative at Lake Shore Drive have requested
use of the subject property due to construction staging constraints within their site
area.
4. There is no competing use for the property at the present time.
5. The HRA's legal counsel prepared the agreement based on the Developer's
request and staff discussions.
6. The Executive Director is authorized to sign the Occupancy Agreement upon the
approval by the HRA.
Alternative Recommendation:
1. Modify the proposed agreement.
2. Deny the request.
• Discussion/Decision Mode:
Approval of the proposed agreement will allow Gramercy Park Cooperative to utilize a
portion of 6639 Lake Shore Drive for construction trailer parking without disrupting the
additional site clearance activities which are yet to be undertaken by the HRA.
submitted,
Samantha ' rduno
Executive irector
SO:cak
Attachment
•
occuPAlvcY aG>~>~rrr
• THIS AGREEMENT entered into this day of October, 1999 by and between THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR. THE CITY OF RICHFIELD
("HRA") and GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE, a cooperative
corporation under the laws of the State of Minnesota ("GRAMERCY").
RECITALS
1.01 HRA is the owner in fee simple of the real estate located at 6639 Lake Shore Drive,
Richfield, MN and which is legally described on Exhibit A attached hereto and incorporated herein
("Vacant Lot").
1.02 Gramercy is currently constructing a cooperative apartment building ("Gramercy
Building") on the real estate which is adjacent to the Vacant Lot and which is legally described on
Exhibit B attached hereto and incorporated herein ("Gramercy Site").
1.03 Gramercy and HRA are parties to a certain Contract for Private Redevelopment
under which Gramercy has agreed to construct the Gramercy Building on the Gramercy Site.
1.04 Gramercy has found that its construction site for the Gramercy Building is unduly
congested so that Gramercy has requested that HRA permit Gramercy to locate Gramercy's
construction trailer on the Vacant Lot.
1.05 HRA needs to remove the building foundation and perform other grading activities
on the remainder of the lot lying north of the Vacant Lot so that Gramercy has agreed to confine its
activities to the Vacant Lot.
AGREEMENT
NOW THEREFORE, in consideration of the premises and their mutual promises and other
good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:
2.U1 HRA agrees that Gramercy may use the Vacant Lot for parking a trailer for use as a
temporary construction office during construction of the Gramercy Building subject to and in
accordance with the provisions of this Agreement. Gramercy acknowledges that this grant of
occupancy constitutes the sole and exclusive right of Gramercy to occupy the Vacant Lot from and
after the date of this Agreement, and further acknowledges that absent further written agreement of
the parties, Gramercy shall have no right to further occupy the Vacant Lot upon and after the
termination of this Agreement.
2.02 Gramercy's rights pursuant to this Agreement shall terminate upon the first to occur
of the following:
• a. Thirty days following the date of a written notice by HRA to Gramercy or by
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Gramercy to HRA as provided in this Agreement; or
• b. Ten days following issuance by the City of Richfield of a certificate of occupancy
for the Gramercy Building.
2.03 Neither Gramercy nor any of its employees, agents or invitees shall be permitted to
park on the Vacant Lot or on Lake Shore Drive.
2.04 Gramercy shall not remove any trees from the Vacant Lot without the written
authority of HRA's executive director.
2.05 HRA reserves the right to enter the Vacant Lot during the term of this Agreement as
needed to undertake site clearance activities considered necessary by HRA in its absolute
discretion, provided that HRA shall not thereby interfere with Gramercy's use of its construction
trailer so long as this Agreement remains in effect.
2.06 Gramercy understands and agrees that it is solely responsible. for its personal
property located on the Vacant Lot pursuant to this Agreement and for the actions of Gramercy, its
employees, agents and invitees on or around the Vacant Lot pursuant to this Agreement. Gramercy
shall provide HRA with a certificate of insurance confirming that Gramercy (and. HRA as an
additional insured) has in force a policy of insurance covering the property of Gramercy located on
the Vacant Lot and the actions of Gramercy, its employees, agents and invitees during their use of
the Vacant Lot pursuant to this Agreement with coverage in amounts approved in writing by the
HRA's executive director.
2.07 Gramercy agrees. that it shall:
a. Not undertake any construction on the Vacant Lot which is not approved in
writing by the HRA's executive director;
b. Not cause, suffer or permit any liens or encumbrances to be placed against
the Vacant Lot or engage in any activity which may result in the imposition
of such a lien or encumbrance;
c. Defend, indemnify and hold harmless the HRA, its employees, agents,
officers and directors from all liens, claims, damages, obligations, liability
and judgments whatsoever which may arise as a consequence of Gramercy's
use of the Vacant Lot pursuant to this Agreement or the Gramercy Site;
d. .Maintain the Vacant Lot in a neat and orderly manner and repair and
maintain Gramercy's trailer on the Vacant Lot in a neat and reasonable
manner;
e. .Remove the trailer and all personal property of Gramercy and restore the
Vacant Lot to its previous condition prior to the expiration of its rights of
occupancy as described in § 2.02 above; and
f. Not use the Vacant Lot for storage of materials or equipment unless
authorized in writing by the HRA's executive director.
• 2.08 All correspondence to or notices to be given to.either parry under this Agreement
shall be given by First Class, U.S. mail (certified, return receipt requested), or personal delivery
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2
evidenced by an affidavit of service which correspondence or notice shall be postage prepaid and
properly addressed as follows:
ff to HRA, to: Mr. Bruce Palmborg
Director of Community Development
Richfield HRA
City Hall
6700 Portland Avenue South
Richfield, MN 55423
With copy to: Mr. Robert J. Lindall
Attorney at Law
Kennedy & Graven, Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis, MN 55402
If to Gramercy, to: Mr. Lou Stocco
Gramercy Park Cooperative at Lake Shore Drive
c/o Gramercy Corporation
7900 International Drive, Suite 210
Bloomington, MN 55425
With copy to: Mr. Rolfe Worden
Attorney at Law
Hinshaw & Culbertson
222 South Ninth Street, Suite 3200
Minneapolis, MN 55402
Or to such other persons or addresses as either party may designate in writing from time to time and
forward to the other persons entitled to receive notice as provided in this section.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date written
above.
GRAMERCY PARK COOPERATIVE AT
LAKE SHORE DRIVE
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By:
Its: President
RJL-169883
RC125-183
By:
Its: Executive Director
3
Legal Description of the Vacant Lot:
EXHIBIT A
The South 100 feet of Lot 18, Block 3, Fairwood Shores, according to the plat thereof on file in
the Office of the Registrar of Titles, Hennepin County, MN.
(Registered Land).
•
•
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RC125-183
•
•
EXHIBIT B
RJL-169883
RC125-183
Parcel A (Certificate of Title No. 455493):
Lot 19, Block 3, Fairwood Shores.
Parcel B (Certificate of Title No. 329867):
Lot 20, Block 3, "Fairwood Shores".
Parcel C (Certificate of Title No. 311941):
All of Lots 21 and 22; and Lot 23 except that part thereof described as
follows:
Commencing at a point on the Southerly line of Lot 23, Block 3, Fairwood
Shores, at a point 75 feet West, measured along .the South line of said Lot 23
from the southeast corner thereof; thence East along the South line of said Lot
23 a distance of 75 feet to the Southeast corner thereof; thence Northeasterly
along the East .line of said Lot 23 a distance of 44 feet; thence Northwesterly
a distance of 64.4 feet to a point distant 78.4 feet Northeasterly from the
point of beginning, thence Southwesterly a, distance of 78.4 feet to the point
of beginning, Block 3 Fairwood Shores.
Parcel D (Certificate of Title No. 627086):
Commencing at a point on the Southerly line of Lot 23, Block 3, "Fairwood
Shores", at a point 75 feet West, measured along the South line of said Lot 23
from the southeast corner. thereof; thence East along the South line of .said
Lot 23 a distance of 75 feet to the Southeast corner thereof; thence
Northeasterly along the East line of said Lot 23 a distance of 44 feet; thence
Northwesterly a distance of 64.4 feet to a point distant 78.4 feet
Northeasterly from the point of beginning, thence Southwesterly a distance of
78.4 feet to the point of beginning.
Parcel E (Torrens):
That part of vacated Lake Shore Drive adjoining and lying .southerly of Lots
19, 20, 21 and 22, Block 3, Fairwood Shores, according to the recorded plat
thereof on file in the office of the Registrar of Titles, Hennepin County,
Minnesota, described as follows:
Beginning at the most westerly corner of said Lot 19; thence southwesterly,
along the extension of the northwesterly line of said Lot 19, a distance of
24.42 feet;. thence southeasterly to the most southerly corner of said Lot 22;
thence northwesterly, along the southwesterly lines of said Lots 22, 21, 20
and 19, to the aforedescribed point of beginning, and there terminating.
I~ • •
i
Parcel F (TOrrens):
That part of vacated Lake Shore Drive adjoining and lying southerly of Lot 23,
Block 3, Fairwood Shores, according to the recorded plat thereof on file in the
office of the Registrar of Titles, Hennepin County, Minnesota, described as
follows:
Commencing at the most westerly corner of Lot 19, said Block 3; thence
southwesterly along the extension of the northwesterly line of said. Lot 19, a
distance of 24.42 feet; thence southeasterly to the most southerly corner of
Lot 22, said Block 3, said point being the point of beginning of the parcel to
be described; thence easterly along a tangential curve, concave to the north,
radius 210.00 feet, central angle 32 degrees 51 minutes 09 seconds a distance
of 120.41 feet to the intersection with the southwesterly production of the
easterly line of said Lot 23; thence northeasterly 32.63 feet to the southeast
corner of said Lot 23; thence westerly. along the south line of said Lot 23, to
the point of beginning and there terminating.
,,
•
~~
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 6s
Agenda October 18,1999
Issue Statement:
Consideration of the establishment of a public hearing on general criteria for business.
subsidies and a business subsidy agreement to fund storm sewer improvements at
Woodlake Centre, Lakes at Lyndale.
Background:
In September the Housing and Redevelopment Authority (HRA) received a request from
Richfield State Agency (RSA), the developer of Woodlake Centre, to cooperatively
explore ways to finance unanticipated but needed storm sewer improvements.. (The
HRA may only consider this request within the context of a new State law which
became effective Augusf 1, 1999 and- is discussed later in this letter.)
Storm sewer capacity is sufficient for the development at 66th Street and Lyndale
Avenue in the present McDonald's parking lot. However, it was recently discovered that
there is insufficient capacity within existing Grand Avenue storm sewers to deliver the
run off to 66th Street and. Lyndale. With the parking ramp already in place, a direct line
between the future central plaza area and the present McDonald's storm sewer is not
available. The developer's engineering firm, BRW, and the City's consultant WSB have
devised an alternative: increase the Grand Avenue sewer capacity and add a line
running .east to west along 66th Street that connects to the present McDonalds storm
sewer which drains into Richfield Lake. The proposed sewer would provide sufficient
capacity for aten-year storm and will be studied. in the field during installation to
improve overflow alternatives that minimize the chance of flooding.
The estimated total project cost for the additional storm sewer improvements is
$142,900. The City has- calculated its prorated cost share of $35,000 based on the City
Engineer's determination of the City's responsibility within the proposed storm sewer
.system. The City would use the storm sewer utility account to fund its share. It is
proposed that $97,900 come from the HRA's bonds of 1988. The remaining $10,000
would be funded by the developer.
A summary of TIF financial assistance provided to the project by the HRA follows:
Eligible Project Cost Amount Contributed by HRA Actual Developer Cost
Ramp $6,100,000 $7,966,000
Acquisition/Relocation $1,800,000 $2,392,561
Site Improvements $1,000,000 $1,666,241
(plaza, sidewalks and
greenway)
Affordability of housing $ 600,000 In-kind contribution
(12 of the rental "flats" at
70% of median income)
$9,500,000 $12,024,802
All of the projected TIF has been provided to the developer by the HRA. However, as
noted above, eligible project costs by the developer exceed TIF funds available. Thus,
additional resources within the project are not available to cover unanticipated costs
such as the necessary storm sewer improvements. A portion of the bonds of 1988
could be made available for this item. (The 1999-00 budget proposes to expend those
funds to establish a streetscape for Lyndale Gateway. However, the $97,900 could be
diverted to this project and still provide adequate funds for the streetscape.) The funds
would be paid back over time with any excess increment generated by Woodlake
Centre. (Favorable market conditions could result in a greater increment than
projected.) Ehlers, the HRA financial consultant, is evaluating the potential repayment
and will be able to comment on this matter at the HRA meeting on October 18. The
development agreement with RSA and the Urban Village tax increment plan would be
modified, if necessary, to fund the improvements and secure the return available.
The assistance being proposed is now regulated by a new State law, and is defined as
a business subsidy. The HRA and City Council are required to determine that the
proposed assistance meets a public purpose, that criteria have been established for
providing business subsidies, and that there is an agreement for achieving the goals for
the subsidy with every project, in this instance, Richfield State Agency and Woodlake
Centre.
Recommended Motion:
Adopt a resolution, which calls for an HRA public hearing on November 15, 1999 on
business subsidy criteria and a business subsidy agreement for funding storm sewer
improvements at Woodlake Centre.
Basis of Recommendation:
1. Developer construction costs have exceeded estimates and there are insufficient
resources from within the project for unanticipated costs of this scale.
2. The proposed storm sewer improvement is needed and would have been an eligible
expense if TIF resources were available.
3. Revenue from the bonds of 1988 could be used for this project.
4. Potential excess TIF is being evaluated after developer obligations, trust fund, and
administrative costs of the HRA are paid. A representative from Ehlers, the HRA's
financial consultant, will be available to discuss this matter at the HRA meeting.
5. The developer has indicated a willingness to pay for up to a third of the
improvement, $47,600. However, with an alternative funding source available to the
HRA, a developer contribution of $10,000 leaves development funds available for
cost overruns on the storm sewer or to cover part of the general construction costs
and quality of finish that continue to exceed original estimates.
6. Anew business subsidy law now regulates the procedures for approving the type of
assistance that the HRA is considering for Woodlake Centre. The City Council will
also have to consider this matter.
Alternative Recommendation:
1. Seek additional resources from the City or developer. However, resources are
limited.
2. Make no contribution from the HRA. However, the storm sewer improvements are
required to prevent flooding.
3. Defer discussion of business subsidies to a future time and continue to evaluate
• funding options.
Discussion/Decision Mode:
The improvements can be implemented once the funding source and supporting
agreements are finalized and all statutory requirements have been met.
Res tfully submitted,
~-~-..
antha Orduno
Executive Director
SO:cak
Attachment
•
•
HRA RESOLUTION NO.
• RESOLUTION AUTHORIZING THE ADOPTION OF CRITERIA FOR PROVIDING
BUSINESS SUBSIDIES
WHEREAS, the Housing and Redevelopment Authority (HRA) in and for the City
of Richfield, Minnesota, as part of its operations, provides economic assistance to
individuals who are engaged in the development and redevelopment of land within the
HRA's area of operation; and
WHEREAS, pursuant to legislation enacted this year by the State of Minnesota,
("Business Subsidy Act"), the HRA is required to adopt criteria for awarding business
subsidies prior to granting such assistance; and
WHEREAS, the Business Subsidy Act further provides that the adoption of
criteria must be preceded by a public hearing on the matter.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. A public hearing on the adoption of business subsidy criteria will be held
before the HRA on November 15, 1999 at 7:OOp.m. in the City Council Chambers at the
Richfield City Hall located at 6700 Portland Ave South, Richfield, Minnesota.
2. Copies of the proposed business subsidy criteria will be available for public
inspection on and after November 1, 1999 at the Richfield City Hall during normal
business hours.. [Copies will also be posted on the Richfield Web page
www.ci.richfield.mn.us on and after that date.]
3. The City Clerk is directed to publish notice of the hearing once in the official
newspaper of the City not more than 30 days and not less that ten days prior to the
hearing date.-
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of October, 1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE ADOPTION OF BUSINESS SUBSIDY
AGREEMENT WITH RICHFIELD STATE AGENCY, INC.
WHEREAS, the Housing and Redevelopment Authority (HRA) in and for the City
of Richfield, Minnesota, as part of its operations, provides economic assistance to
individuals who are engaged in the development and redevelopment of land within the
HRA's area of operation; and
WHEREAS, pursuant to legislation enacted this year by the State of Minnesota,
("Business Subsidy Act"), the HRA is required to enter into an agreement with any
recipient of a business subsidy conforming to the requirements of the Business Subsidy
Act prior to granting such assistance; and
WHEREAS, the Business Subsidy Act further provides that the approval of such
an agreement must be preceded by a public hearing on the matter in situations where
the subsidy exceeds $100,000; and
WHEREAS, Richfield State Agency, Inc. ("RSA") has requested that the HRA
provide it with a business subsidy of approximately $107,900, to be .used in connection
with certain utility work required in connection with RSA's Urban Village development.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. A public hearing on the approval of a business subsidy agreement with RSA
will be held before the HRA on November 15, 1999 at 7:00 p.m. m the City Council
Chambers at the Richfield City Hall located at 6700 Portland Ave South, Richfield,
Minnesota.-
2. Copies of the proposed business subsidy agreement will be available for
public inspection on and after November 1, 1999 at the Richfield City Hall during normal
business hours.. [Copies will also be posted on the Richfield Web page
www.ci.richfield.mn.us on and after that date.]
3. The City Clerk is directed to publish notice of the hearing once in the official
newspaper of the City not more than 30 days and not less that ten days prior to the
hearing date.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of October, 1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
/~~~IiAC.t,~/ ~ ~1~1•Ci.
INSURANCE SERVICES
6625 LYNDALE AVENUE SOUTH • RICHFIELD BANK BUILDING • RICHFIELD, NCIINNEbOTA,~5542139 9 9
cto er ,
Mr. Bruce Nordquist
City of Richfield
6700 Portland Avenue
Richfield MN 55423-2599
Dear Bruce:
Telephone
(s~~~
RE: Storm Sewer
As you are aware, we have been dealing with the issue of the storm
sewer which must be .installed on vacated Grand Avenue and along 66th
~t3_cet. The presexlt proposal from the City is that. $35,000 of the
approximately $140,000 cost will be paid by the City. We have requested
through the HRA and the City that this matter be reviewed as to the cost-
sharng. Mr. Atkinson and the other Ci y officials have cooperated with
us in attempting to solve the problem but we do believe that there should
be additional City participation.
- According to BRW, the contribution of water to the storm sewer on
Grand is approximately one-third the new development and two-thirds off
site. On 66th Street, the contribution from off-site-may 'even be
greater. We would ask that you consider a minimum cost-sharing on the
same basis of two-thirds by the City and one-third by the .development.
The necessity of the replacement of the storm sewer came as somewhat
of a surprise to everyone involved with the development. It was not
planned for when the original plans for the development of the site were
formed. There obviously was no budget made for these items and it
further exacerbates a difficult budget situation at the site. As the
developer, RSA is attempting to make the entire site a special place.
Each extra such as this causes cuts in other items.
We have also noted that the City has been much more involved with
the 76th and Lyndale site as to street improvements. The paper reported
that approximately $623,000 was made available to the development for
that site. To our knowledge, there have been no amounts made available
t`l Ci i.l.i pll.C iVl ?4Y'1SGi 1. Gitl:lt.tiita ~~\.? w:t t':al iGtr iv.+Li:7 'it vv Laid c8~-.~:.e. vgl v.~..~
that some of those monies would be made available, particularly since a
lot of the funds have been generated from the Lyndale HUB .tax increment......
district.
While we recognize the necessity of the work, we would ask that the
City participate at a greater level. We would be available to meet with
you or any. of the City officials at your convenience. We will await your
further response.
Yours very truly,
RICHFI D STAT$ AGF3NCY, INC.
BY t ~
ven Lt Kir~ chner,
SK\LTR\ RICH2 - - PreSldellt
~~o
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 6~
Agenda October 18, 1999
Issue Statement:
Adoption of a resolution authorizing purchase of 6812 Queen Avenue with Community
Development Block Grant funds for the New Home program.
Background:
The existing property is a small one and one-half story house with several. safety and
maintenance problems. The lot measures 50 x 127 ft. The owner has moved out and
the property is now vacant. The property's .1999 tax value was $89,000. However, due
to needed structural repairs, several code compliance issues and updating, the owner is
ready to sell for $70,000.
In order to utilize Community Development Block Grant funds (CDBG) fully, the U.S.
Department of Housing and Urban Development (HUD) requires thatthe City purchase
the property and subsequently transfer it to the HRA for development. It is anticipated
that the. City could. acquire the property by early November. Purchase by the HRA could
occur by December 17, 1,999 if the transitory ordinance is approved at the November:8
City Council meeting. The HRA would be responsible for any holding or maintenance
costs incurred at the properly after acquisition by the City. Construction would. begin
this spring after the property is transferred to the HRA.
Recommended Motion:
Adopt the resolution authorizing the purchase of 6812 Queen Avenue with Community
Development Block Grant funds.
Basis of Recommendation:
1. Funds have been budgeted for acquisition and demolition with federal CDBG funds.
2. The property is substandard and qualifies for acquisition. The property owner is
interested in selling the property through the voluntary acquisition program.
3. The owner is ready to sell the property for $70,000, substantially below the
estimated market value of $89,000. The HRA has identified this property for the
New Home Program.
4. The City held the first reading of the transitory ordinance on October 11, 1999.
Alternative Recommendation:
Do not authorize acquisition.
Discussion/Decision Mode:
The sale from. the City to the HRA is contingent on a public hearing and second reading
of a transitory ordinance scheduled for November 8, 1999. The purchase agreement is
ready to be prepared in final form.
Re Ily submitted,
manta r no
Exe ve Director
SO:cak
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT
6812 QUEEN AVENUE FOR THE NEW HOME PROGRAM
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to purchase certain real property pursuant to and in
furtherance of the New Home Program, said property being described as:
Lot 4, Block 2, Tingdale Bros'. Lincoln Hills Third Addition; and
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, the properly meets all program requirements for acquisition; and
WHEREAS, the HRA has negotiated a purchase price relative to the estimated
market value of 6812 Queen Avenue; and
WHEREAS, funds are available for acquisition.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. The purchase price for 6812 Queen Avenue is approved at $70,000.
. 2. The. Chairperson and Executive Director are authorized to execute a Purchase
Agreement and other documents to allow purchase for the amount set-forth in
this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 1.8th day of October, 1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 66
Agenda October 18,1999
Issue Statement:
Public hearing and consideration of a resolution regarding the sale of 6241 -14th
Avenue.
Background:
The new home development at 6241 -14th Avenue was authorized by the HRA as a
cooperative project with Hennepin Technical College (HTC). The project is completed,
and a sale are anticipated by the end of October.
The selected purchaser is a five member, income qualified family seeking to live in
Richfield that meets the requirements stated in Attachment A. Presently, the family is
renting a house in south Minneapolis. A public hearing and HRA authorization for the
sale of the property is required prior to closing.
The purchaser has applied for a first mortgage. The difference between the estimated
market value of $155,000 and the initial purchase price of $114,000.($41,000) is
provided by the HRA as a second mortgage. Project costs are covered by the buyer's
down payment and first mortgage (the HRA's "second" is non-interest bearing and due
upon subsequent sale by the buyer).
The second. mort a e accom lishes the following:..
9 9 p
1. Makes the initial purchase price affordable.
2. Prevents a speculative purchase in which the buyer might benefit from selling
the home quickly.
The HRA will pay one and one-half points for mortgage discounting, approximately
$2,300. The HRA will also pay the cost of title insurance at closing of approximately
$200. The monthly mortgage PI payment will approximate $800 at eight percent
interest over 30 years. After closing, the HTC contract of $93,664 will be paid. These
costs have been anticipated in the budget and will be paid from the proceeds of the
sale.
If during final qualifying the family is found ineligible by the lender, the purchase
agreement is void and earnest money will be released. At this time however, the lender
has qualified the purchaser through preliminary processing.
Recommended Motion:
It is recommended that following a public hearing, the HRA adopt the attached
resolution which authorizes the sale of the HRA owned property at 6241 -14th Avenue.
•
Basis of Recommendation:
1. A family has been identified as a purchaser and meets program requirements.
2. A purchase agreement cannot be processed further by the lender without HRA
authorization of sale.
3. The Planning Commission has determined that the development and sale for
residential purposes is consistent with the Comprehensive Plan,
4. A public hearing notice has been published in the Sun-Current which allows. the
HRA to consider the sale at the October meeting.
5. The house has been completed.
Alternative Recommendation:
Do not adopt the resolution. However,: this would cause a delay in the sale of the
property, and .would increase HRA holding costs.
Discussion/Decision Mode:
Authorization of the sale is required at the October 18, 1999 meeting so that the buyer
can finalize. mortgage financing for a prompt closing.
Res.~i~y submitted,
Samant~ Orduno
'E~cecuti Director
SO:cak
Attachment
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 6241 14TH AVENUE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) owns certain real property located at 6241 -14th Avenue,
legally described as follows:
Lot 17, Block 1, Nokomis Gardens Rearrangement of Blocks 1, 2, 3, 4, and 5
Girard Parkview, Hennepin County;
and
WHEREAS, the HRA acquired the property so that Hennepin Technical College
(HTC) could construct a new single family home at 6241 -14th Avenue,. to be sold by
the HRA to a moderate income family; and
WHEREAS, the Williams-Sims family. has been identified as eligible purchasers
for 6241 -14th Avenue; and
WHEREAS, the conditions of the sale include a total sale price of $155,000; a
lien of $41,000 payable to the HRA; $2,000 earnest money; and the balance from down
payment and a first mortgage payable to the lender; and
WHEREAS, the sale of 6241 - 14th Avenue may be authorized by the HRA
following a public hearing which considers the disposition of the property; and
WHEREAS, that hearing has been held following proper publication of notice.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota that the HRA Chairperson and
Executive Director are authorized to execute the purchase agreement and other
required documents so that the disposition of HRA owned property of 6241 -14th
Avenue may occur as presented herein.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of October, 1999.
Thomas E. Harms, Chair
ATTEST:
C7
Michael Sandahl, Secretary
ATTACHMENT A
New Home Program Eligibility Requirements
For
Buyers of 6241 -14th Avenue
• Be a first-time buyer (or not having owned in three years).
• Have a three to six member family (a family is defined as persons related by blood,
marriage or operation of law).
• Have the following maximum annual income depending upon family size:
Family Size Maximum Income
3 $43,000
4 $47,800
5 $51,600
6 $55,450
These income limits are 80% of the metropolitan area median income, an accepted
CDBG program income'level.
• Have the ability to make monthly payments on a mortgage, down payment and pay
closing costs required of the lender.
• Agree to be subject to a lien by the HRA for the difference between the initial sales
price and the actual value.
•
~~
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 65
Agenda October 18, 1999
Issue Statement:
Public hearing and authorization to sell 7025 Nicollet and 7133 Lyndale Avenues to
Gerold Bros. Construction, Inc. for residential development..
Background:
The Housing and Redevelopment Authority (HRA) acquired the properties at 7025
Nicollet and 7133 Lyndale Avenues under the Richfield Rediscovered Program. It is
proposed that the HRA sell both properties to Gerold Bros. Construction, Inc. for the
development of a new single family home on each site. The new home on Nicollet
Avenue will have three finished bedrooms, two baths and will have an end value of
approximately $130,000. (The lot is 58 feet wide.) Both homes will have :detached
garages oriented towards the alley.
The lot at 7133 Lyndale Avenue is 100 feet wide. Staff has explored different
approaches. to develop this site. One approach would be to build a two or three unit
townhome. Two potential developers reviewed this approach and chose not to pursue
it, believing they could not make a sufficient return on investment. Another approach
would be to build one or two single family homes. A builder/buyer team has proposed
to build a singlefamily home on the site to be part of the Parade of Homes Spring
• Preview in 2000. To build a home with an end value of $220,000 to $240,000 on a
heavy traffic corridor demonstrates high market confidence, particularly in the south
Lyndale area. The proposed home will-have three finished bedrooms and two and one-
half baths. Additionally, it will have several special features such as a fireplace,
stone/stucco exterior and hardwood floors in the foyer and kitchen. The Parade of
Homes Spring Preview will run from February 26 through March 19, 2000.
Recommended Motion:
Following a public hearing, adopt the resolution authorizing the sale of 7025 Nicollet and
7133 Lyndale Avenues to Gerold Bros. Construction, Inc.
Basis of Recommendation:
1. Gerold Bros. Construction, Inc. is building under the program for the first time. They
have. provided evidence of experience, capability and financial security. They have
also previously participated in the Parade of Homes.
2. The HRA acquired both sites for the Richfield Rediscovered Program.
3. The terms of the development agreements have been negotiated and are in
conformance with program guidelines.
4. Notice of public hearing on sale of the properties was published on October 6, 1999
• in the Sun-Current.
Alternative Recommendation:
Do not proceed with the development agreement with the recommended builder and
direct staff to find other buyers.
Discussion/Decision Mode:
Closing would occur by the first week of October with construction starting soon
afterwards. The clearance work is completed on both sites.
Resp~lly submitted,.
rauno
rector
SO:cak
Attachments
[]
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 7025 NICOLLET AND 7133 LYNDALE AVENUES
TO GEROLD BROS. CONSTRUCTION, 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 Richfield Rediscovered Program adopted by the HRA, said real
property being described as follows:
Address Legal Description
7025 Nicollet Avenue N 58 ft. of S 268 ft. of E 148.8 ft. of W
181.8 ft.ofNW%ofNW%ofNE'/4
except alley
7133 Lyndale Avenue Lots 15 and 16, Block 8, Augsburg Park
Addition
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 and
development agreements negotiated as follows:
Address Sale Price
7025 Nicollet Avenue $30,000
Performance
Securi Builder
$30,000 Gerold Bros. Construction
7133 Lyndale Avenue $55,000
$55,000 Gerold Bros. Construction
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:
A public hearing has been held and 7025 Nicollet and 7133 Lyndale
Avenues are sold for $30,000 and $55,000 respectively to Gerold Bros.
2. The Chairperson and Executive Director are authorized to execute a
Contract for Private Development and other agreements as required to
effectuate the sales to Gerold Bros. Construction, Inc.
• ATTEST:
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of October, 1999.
Thomas E. Harms, Chair
Michael Sandahl, Secretary
•
•
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REAR ELEVATION
LEFT ELEVATION
•
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•
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RIGHT ELEVATION
LEFT ELEVATION
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•
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FIRST FLOOR ~ ~ ~ i
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SECOND FLOOR
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 64
Agenda October 18, 1999
Issue Statement:
Consideration of a resolution authorizing eminent domain proceedings to acquire certain
real property in the Twin City Christian Homes element of the Lyndale Gateway
redevelopment area.
Background:
As part of their redevelopment efforts in the Lyndale Gateway area, Twin City Christian
Homes (TCCH) extended purchase offers to 11 property owners in July 1999. These
properties are located on the east side of Lyndale Avenue and the west side of Garfield
Avenue between 76th and 77th Streets. Seven of the property owners have accepted
purchase agreements.
TCCH President, Kristi Olson, has submitted a letter (Exhibit B) requesting that the
remaining properties be acquired through eminent domain proceedings initiated by the
Richfield Housing and Redevelopment Authority (HRA). The properties for which
condemnation is being requested are as follows:
Properly Address
7626 Garfield Avenue S.
7601 Lyndale Avenue S.
7609-13 Lyndale Avenue S.
7615-27 Lyndale Avenue S.
7629-33 Lyndale Avenue S.
Parcel Identification Number
34-028-24-33-0069
34-028-24-33-0078
34-028-24-33-0077
34-028-24-33-0084
34-028-24-33-0074
The property located at 7626 Garfield Avenue is an owner occupied house. The
homeowners have been offered mediation services. The other properties included in
TCCH's request for condemnation are commercial properties with business tenants who
will receive relocation benefits. In her letter, Ms. Olson states that TCCH will continue
to negotiate with the owners of these properties in an effort to reach purchase
agreements through direct negotiations.
Legal staff has begun the preliminary work needed in order to file for condemnation in
the event that it is authorized. Legal staff estimates that condemnation will be formally
filed during the week of November 8. The condemnation process should take
approximately 90 days after filing.
Recommended Motion:
Adopt the attached resolution authorizing eminent domain proceedings to acquire real
property in the Twin City Christian Homes element of the Lyndale Gateway
redevelopment area.
~~
• Basis of Recommendation:
1. The HRA has approved a Contract for Private Redevelopment (Contract) with Twin
City Christian Homes for the redevelopment of a portion of the Lyndale Gateway
area.
2. The Contract provides for a request for condemnation by the developer(s) in order
to acquire properties for which private negotiations have been unsuccessful.
3. The HRA has the ability to acquire title to and possession of the property through
eminent domain in accordance with Minnesota Statutes, Section 117.042.
4. All costs of the condemnation will be paid by Twin City Christian Homes under the
terms of the Contract.
5. All costs of the condemnation will be paid by the developer under terms of the
Contract.
Alternative Recommendation:
1. Do not adopt the resolution authorizing eminent domain.
2. Defer action until the November 15 HRA meeting.
Discussion/Decision Mode:
Kristi Olson of Twin City Christian Homes wilt be present to answer any questions.
Res tfully submitted,
Sa ntha Orduno
Executive Director
SO:cak
Attachments
•
• HRA RESOLUTION NO.
RESOLUTION AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE
CERTAIN REAL PROPERTY IN THE
LYNDALE GATEWAY REDEVELOPMENT AREA
WHEREAS, the Housing and RedevelopmentAuthority in and for the City of
Richfield, Minnesota (the "HRA") is a housing and redevelopment authority duly
constituted and organized under law, with all of the powers enumerated in Minnesota
Statutes, Sections 469.001 to 469.047 (the "Act"); and
WHEREAS, the HRA is authorized to develop and carry out redevelopment plans
and redevelopment projects, as those terms are respectively defined in Minnesota
Statutes, Section 469.002, subdivisions 16 and 14; and
WHEREAS, the HRA on June 14, 1999 modified a redevelopment plan (the
"Redevelopment Plan") for the Richfield Redevelopment Project Area (the "Project Area")
and adopted a Modification to the Redevelopment Plan and adopted a tax increment
financing plan (the "TIF Plan") for a portion of the Project Area known as Interchange West
and Lyndale Gateway tax Increment Financing District; and
WHEREAS, the Plans, as modified, contemplate the acquisition of certain real
property (the "Property")which is located in the Project Area and which is more particularly
w described below in this resolution; and
WHEREAS, the HRA has entered into a contractfor private redevelopment (the
"Contract") of land lying within the Lyndale Gateway portion of the Project Area (including,
but not limited to the Property); and
WHEREAS, the Developer under the Contract is not in default of any of its
obligations thereunder, and has offered mediation to the owners of the Property who have
requested it; and
WHEREAS, in order to meet anticipated construction deadlines for the
redevelopment project contemplated by the Contract, it is necessary for the HRA to
acquire title to and possession of the Property by the earliest date permitted in accordance
with Minnesota Statutes, 117.042.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. It is necessary to acquire the Property as described below in this resolution
in order for the HRA to carry out the purposes of the Plans, as modified, and the Act, to
deal with property which is structurally substandard and to eliminate and prevent the
development or spread of conditions of blight found to exist by the City and the HRA.
2. Acquisition of the Property by eminent domain, in the manner provided by
Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public purpose and
is hereby authorized.
3. The HRA deems it necessary for the reasons set forth in the Plans, as
modified, and in orderto meet anticipated construction schedules, to proceed without
delay under Minnesota Statutes, Section 117.042, to acquire title to and possession of the
Property prior to the filing of a final report of commissioners.
4. The HRA's attorney and staff are authorized and directed to commence
eminent domain proceedings to acquire fee simple absolute title to the Property, pursuant
to Minnesota Statutes, Section 117.042 and to pay to the owner(s) or into court, a sum of
money to secure compensation to the owners of the Property, which amount shall be
equal to petitioner's approved appraisal of value for each of the respective portions of the
Property, as determined by staff.
5. The Property to be acquired is described on the attached Exhibit A.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of October ,1999.
w
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
U
Exhibit A
Lyndale Gateway Redevelopment Area
Properties for Which Condemnation Action is Requested
Property 1
Property Address:
Parcel Identification #:
Legal Description:
Property 2
Property Address:
Parcel Identification #
Legal Description:
Property 3
Property Address:
Parcel Identification #:
Legal Description:
Property 4
Property Address:
Parcel Identification #:
Legal Description:
Property 5
Property Address:
Parcel Identification #:
Legal Description:
7626 Garfield Avenue S.
34-028-24-33-0069
Block 7, Lot 5, Sunset Terrace Subdivision
7601 Lyndale Avenue S.
34-028-24-33-0078
Block 7, Lot 16, Sunset Terrace Subdivision
7609-13 Lyndale Avenue S.
34-028-24-33-0077
Block 7, Lots 14 & 15, Sunset Terrace Subdivision
7615-27 Lyndale Avenue S.
34-028-24-33-0084
Block 7, Lots 12 & 13, Sunset Terrace Subdivision
7629-33 Lyndale Avenue S.
34-028-24-33-0074
Block 7, Lot 11, Sunset Terrace Subdivision
•
Exhibit B
- - - ~~--
TWtN t:l'1"Y
CHRiSTtAN
. HC)MFS.
IWlN CITY Ca-1k1ST1AN HOMfS SEKVIt:CS t:C)MPANY, 1NC
1901 West ( climty Road L--2
Si. Paul, MN 55'112-2t3~)fi
(GS 1) fi3:~-93.36 FAX: (fi i l) 633-4317
Tom Harms
Chairman of the Housing Redevelopment Authority
City of Richfield
6704 Portland Ave.
Kichfield, MN 55423
~I'o: Tom Harms, Chairman of the Housing Redevelopment Authority,
Twin City Christian Homes has contracted with The C. Chase Companies, a Real Cstate Brokerage Firm, to
make offers to all of the properties on the attached list.
We have had seven o[ the property owners accept our offers as of October R, 1999. While The. C. Chase
Contpany, orl our behalf, has spent considerable time negotiating with the other property .owners, they have
been unable to come to any lgreement at this time. The properties which we have not been able to come to
agreement. on are: -7626 Garfield, 7601 Lyndale, 7609-7613 Lyndale, 761$-7627 Lyndale, 7629-7631. Lyndale.
Enclosed are the higltlighted documents prepared by the C. Chase Companies which delineate the properties
for possible condemnation. As you know, it is our desire to enter into private purchase agreements with each
property owner. Therefore, we will continue to negotiate with property owner, and will notify Richl'icld City
staff of any changes to thr. above list in the event we are successful.
In accordance with the contract for private redevelopment we are hereby requesting that the HRA proceed
with acquiring the. propertiesa through eminent domain.
Upon approval for the request for condemnation we at Twitt City C..hristian Homes are authorizing Lhe city Of
Richfield staff to begin the relocation process for displaced households and businesses.
We went to thank you for the opportunity to become a part of Richfield. We feel so privileged to offe,• our
senior housing services at this location. The residents of Richfield are responding very positively, and daily,
we receive many calls and inquiries about our upcoming development.
Thank yon ngaiu. We will continue to commw,icate abwrt any additiatal progress we are able to make with
the property owners.
Sincerely J~
-_
.>
I~risti Olso»
C£.O, Presitlcnt
Twin City Christian Homes
cr i.egrl (`ewcil. fCCH
John Stern t_l"ry or Ri~h!'icld
l;rry I'uwl~{e, Tushie Montgomery
.Iry Wetx. Wtb Buildcr7c, trlc.
~i.r,i tlurfrYwiile. !)or,shrrty Seemmtt Cocrtritics
Mike Md'onnetl. i„\wOp
•
Affiliated with the M~rnies~td Iiaptict C:c~n-ew-t•nt:E'
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 63
Agenda October 18, 1999
Issue Statement:
Consideration of a Contract for Private Redevelopment with Twin City Christian Homes
for the east side of Lyndale Avenue and west side of Garfield Avenue within the Lyndale
Gateway Redevelopment Area.
Background:
On January 19, 1999 the Richfield Housing and Redevelopment Authority (HRA)
accepted the terms and provisions of a Contract for Private Redevelopment (Contract)
with CSM Properties, Inc.. (CSM) for the redevelopment of the Lyndale Gateway area.
Twin City Christian Homes (TCCH) was identified in that contract as the developer of
one of the elements of the redevelopment. Since that time, however; there have been
several changes to the structure of the redevelopment process. The. developers and
staff have concluded that these changes are significant enough to warrant the drafting
of new contracts in order to more accurately define the redevelopment process to occur
in this project.
The most significant change is that two separate contracts are now being proposed.
One contract would be with TCCH, while the other contract would be with CSM and Ron
Clark Construction. The primary reason for two separate contracts is because the CSM
and Ron Clark Construction developments have common funding sources, while TCCH
can develop its senior apartment and office development with separate funding sources.
While all three elements use the tax increment to be generated by the development,
CSM and Ron Clark Construction will also be using Candlewood bond proceeds and
development account funds for the completion of their projects. The type and amount of
public funding were approved by the HRA on September 13, 1999, and remains
unchanged.
Another major difference in the contracts being proposed and the one which had been
approved by the HRA in January include the elimination of many of the "preconditions"
for redevelopment which have since been completed. Among the completed
preconditions are: the concept plan; interior circulation plans; the form and adoption of
the tax increment financing plan, and; the means for addressing the east side of
Garfield Avenue.
Many aspects of the contracts being proposed, however, do not differ from the terms of
the contract which had been approved. The process for site assembly is virtually
unchanged, as is the commitment of the developers to reimburse most costs associated
with the development.
The proposed contract with Twin City Christian Homes will be distributed at the HRA
meeting and will be presented by legal counsel. The proposed contract with CSM and
Ron Clark Construction will be considered at the November 15 HRA meeting.
Recommended Motion:
Adopt a motion to approve the Contract for Private Redevelopment with Twin City
Christian Homes for the redevelopment of the east side of Lyndale Avenue within the
Lyndale Gateway Redevelopment Area.
Basis of Recommendation:
1. The HRA accepted the terms contained in a Contract for Private Redevelopment
with CSM Properties, Inc. for the Lyndale Gateway Area on January 19, 1999.
2. The approved contract referenced Twin City Christian Homes as the developer of
one element of the redevelopment.
3. The HRA has since approved a Concept Plan for the development which included a
development element by Twin City Christian Homes.
4. In addition to approval of the Concept Plan, the HRA has approved many aspects of
the ;development including the amount and type of public financing.
5. Staff and the developers have concluded that new contracts may be necessary in
order to more accurately define the redevelopment process to occur in this project.
Alternative Recommendation:
1. Approve the contract with added stipulations or modifications.
2. Do not approve the proposed contract.
3. Delay action until the November HRA meeting.
Discussion/Decision Mode:
Legal staff and each of the potential developers will be present at the meeting to review
the documents and answer any questions.
Ily submitted,
(Q.uL,~.,~.9--
Orduno
Director
SO:cak
•