03-15-99 agendaCITY OF RICHFIELD
• MONDAY, MARCH 15, 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 REGULAR HRA
MEETING OF FEBRUARY 16, 1999
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF 7432 ALDRICH AVENUE TO STEVEN MARLIN GRANT HOMES, INC.
AND. CANCEL PUBLIC HEARING TO SELL 7520 COLFAX AVENUE AND 7315
THOMAS AVENUE
HRA LETTER NO. 15
3. UPDATE ON STATUS OF CSM'S NEGOTIATIONS WITH PROPERTY OWNERS
IN INTERCHANGE WEST AREA
HRA LETTER NO. 16
4. CONSIDERATION OF FACILITATING COMMUNICATION AND
UNDERSTANDING OF REDEVELOPMENT PROCESS: USE OF OMBUDS
HRA LETTER NO. 17
5. CONSIDERATION OF RESOLUTION APPROVING MODIFICATIONS TO
RICHFIELD HOME REHABILITATION DEFERRED LOAN PROGRAM
GUIDELINES
HRA LETTER NO. 18
6. EXECUTIVE DIRECTOR REPORT
7. 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.
5
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. is
Agenda. March 15,1999
Issue Statement:
Adoption of a resolution approving modifications to the Richfield Home Rehabilitation
Deferred Loan Program Guidelines.
Background:
Richfield's Home Rehabilitation Deferred Loan Program (Deferred Loan Program)
provides rehabilitation assistance to low income Richfield homeowners. Each year the
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 15-20 households each year, 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.
The Deferred Loan Program is administered by HRA staff in accordance with the
Richfield Home Rehabilitation Program Procedural Guidelines. The guide is based on
program criteria established by Hennepin County and the HRA.
Per program guidelines, the deferred loan maximum is $15,000. For accessibility
improvements for disabled persons, an additional $5,000 is available. If a deferred loan
is made for both accessibility improvements and for other eligible improvements
pursuant to the procedural guides, the non-accessibility improvements must not exceed
• $15,000.
However, accessibility improvements are not necessarily value-added improvements.
It is proposed that the accessibility portion of the loan function as a grant. In similar
fashion to the flood grant component of the Deferred Loan Program, the grant portion
would be forgiven in seven years at a rate of 20 percent per year after the third year.
Loans for non-accessibility improvements would continue to be forgiven after 30 years.
Recommended Motion:
Adopt the resolution authorizing the identified modification to the Richfield Housing
Rehabilitation Program Procedural Guide.
Basis of Recommendation:
The modification will allow for necessary improvements to homes without causing
undue hardship for those improvements that may be both expensive and not value-
added.
Alternative Recommendation:
Do not authorize modification to the Home Rehabilitation Deferred Loan Program
Discussion/Decision Mode:
This matter will be presented at the March 15, 1999 HRA meeting.
Respectf submitted,
•
Jams .Prosser
Exec a Director
JDP:cak
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING APPROVAL OF MODIFICATIONS TO THE HOME
REHABILITATION DEFERRED LOAN PROGRAM
WHEREAS, the Richfield Housing and Redevelopment Authority provides a
Rehabilitation Deferred Loan Program which utilizes Hennepin County provided CDBG
funds to assist lower income homeowners with rehabilitating their homes; and
WHEREAS, the program's Procedural Guide was approved by the HRA in 1998
and is modified periodically as program requirements and needs dictate; and
WHEREAS, Richfield staff has identified modifications to update the program's
Procedural Guide; and
WHEREAS, the HRA has reviewed the modification.
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 Guide will be modified to allow for-the forgiveness..
of that portion of the Deferred Loan that provides for accessibility improvements.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 15th day of March, 1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. i~
Agenda March 15, 1999
Issue Statement:
Facilitating communication and understanding of the redevelopment process: use of an
ombuds.
Background:
There are many stakeholders in the redevelopment process. Two of the principle
stakeholders are the community-at-large and the residents and business people who
occupy. areas to be redeveloped. The HRA and City Council have encouraged staff to
develop a broad array of communication tools to tell the story of the importance of
redevelopment to the community and to provide persons who will be directly impacted
with complete and accurate information about the redevelopment process.
Several tools to inform residents and business people have evolved. They include
feature articles in Your City, videos, project specific newsletters, mailings to site
occupants and open house events. Recently, a homeownerresiding in a
redevelopment site expressed dissatisfaction and frustration due to the fact that they
had just became aware of the project for which their property was being purchased.-
.. They also understood. very little. about the process. When staff met with the homeowner....
to explore their frustration, almost every letter that had been sent_to the site occupants...
was in their notebooks; the first letters dated from Spring 1998.
The question pursued by staff was: How could this situation be avoided in he future? It
seemed clear that additional printed material was not the answer.. Also, it is important to
realize that each individual has a preferred way of gathering information. For some, it's
by reading; for others, hearing. From this context, the idea of an ombuds arose (the
more traditional name is ombudsperson).
The ombuds would be a neutral third party who would respond to telephone, mail and
in-person contacts from residential and business community members. The ombuds
would be skilled in communications and conflict resolution. The ombuds would
collaborate with mediators, facilitators, redevelopment experts and appropriate City staff
to ensure that all accepted requests for assistance are handled appropriately and
promptly. The ombuds would converse over the telephone or meet directly with the
person requesting assistance. Meetings would take place at a location convenient to
the person. The ombuds would report directly to the Executive Director/City Manager.
Aimee Gourlay is being recommended as the ombuds. Aimee's credentials include:
1. Graduate of University of Minnesota law school cum laude;
2. Qualified "neutral" for Minnesota Supreme Court panel of mediators; and
3. She is the CEO of the Mediation Center.
In addition, Aimee has already been working in the community. She helped facilitate
the redevelopment process on two sites`in the Richfield Lake Area (REAP) area, the
Emerson Avenue site and the Urban Village site. She is also functioning as the meeting
facilitator in the Penn Avenue and Sixty-Sixth Street (PASSS) area in working with the
Planning Commission Community Advisory Team. In these roles, she is a third party
facilitator and has gained knowledge of the community and the redevelopment process.
Aimee Gourlay will be present at the HRA meeting to discuss this concept further and
respond to questions.
The fee for Aimee's activities wilt be paid by a developer in the same way that a
developer pays for the services of the HRA's financial consultant, Sid Inman. However,
it is proposed that the HRA fund the design, which is estimated not to exceed $1,500.
Recommended Motion:
Adopt a motion identifying Aimee Gourlay as the HRA redevelopment ombuds and
authorize the expenditure, which is not to exceed $1,500.
Basis of Recommendation:
1. It is critical that people who occupy potential redevelopment sites receive
information in an understandable form.
2. For some people, the opportunity to converse with a neutral third party would
enhance their understanding of the process.
3. Aimee Gourlay is trained to function as a "neutral" and is familiar with Richfield:
4. Funds are available to-set up the process.
Alternative Recommendation:
1. Delay consideration of the proposal.
2. Reject the proposal.
3. Direct staff to explore other options to increase the understanding of the
redevelopment process.
Discussion/Decision Mode:
With redevelopment projects now underway or being considered, the ombuds could be
effective almost immediately.
Respectfully submitted,
Jame D. Prosser
Executive Director
JDP:cak
3
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. i6
Agenda March 15, 1999
Issue Statement:
Update on the status of CSM's negotiations with property owners in the Interchange
West area.
Background:
At the February 16, 1999 meeting, the HRA granted CSM Properties, Inc. a 90-day
extension for the Site Assembly activities as outlined. in the Contract for Private
Development for the Interchange West area. This extension was granted with several
stipulations, including the following:
• Representatives of CSM must have "face to face" negotiations with all homeowners
within 30 days.
• CSM must extend purchase offers to all commercial property owners within two
weeks.
• CSM must determine a procedure for identifying and assisting "hardship" cases.
• At the point when negotiations with property owners have reached an impasse, or
after the 30-day negotiation period, CSM must offer mediation services at no cost to
the property owner.
• CSM must provide a weekly status report on theirprogress in negotiations.
Murray Kornberg will give a report on CSM's adherence to these stipulations and will
provide an update of the status of their negotiations for the purchase of property.
Recommended Motion:
Listen to the report from Mr. Kornberg and take appropriate action.
Basis of Recommendation:
A report from Mr. Kornberg is appropriate.
Alternative Recommendation:
Indicate that no report is desired.
Discussion/Decision Mode:
It would be appropriate for the HRA to request a status report at the April HRA meeting.
Respectf Ily submitted,
Ja a .Prosser
Exe tive Director
JDP:cak
l.~`~
HOUSING AND REDEVELOPMENT AUTHORITY.
HRA Letter No. T5
Agenda March 15,1999
Issue Statement:
Public hearing and authorization to sell 7432 Aldrich Avenue to Steven Marlin Grant
Homes, Inc. Cancellation of the public hearing to sell 7520 Colfax Avenue and 7315
Thomas Avenue.
Background:
The HRA acquired these properties under the Richfield Rediscovered Program. It is
proposed that the HRA sell 7432 Aldrich Avenue to Steven Marlin Grant Homes, Inc. for
the development of new single family homes. The home at 7432 Aldrich Avenue will
have three bedrooms, an attached double garage and an end value of approximately
$169,000. The project would be conducted in accordance with a development
agreement. [A builder/buyer team had been identified for the lots at 7520 Colfax and
7315 Thomas Avenues. Due to personal circumstances, the buyers needed to
withdraw at this time.]
Recommended Motion:
Following a public hearing approve a motion which adopts. the resolution authorizing the
sale of 7432 Aldrich Avenue to Steven Marlin Grant Homes, Inc. Cancel the hearing to
sell 7520 Colfax Avenue and 7315 Thomas Avenue.
Basis of Recommendation:
1. Steven Marlin Grant Homes, Inc. has built several homes under the Richfield
Rediscovered Program.. The company has evidenced experience, capability and
financial security.
2. The HRA acquired 7432 Aldrich Avenue for the Richfield Rediscovered Program.
3. The terms of the .development agreements have been negotiated and are in
conformance with program. guidelines.
4. Notiee of public hearing on sale of the properties was published on March 3, 1999 in
the Sun-Current.
Alternative Recommendation:
Do not proceed with the development agreement with the recommended builder and
direct staff to find another buyer.
Discussion/Decision Mode:
Closing would occur in March or early April with construction starting soon afterwards.
Respectfu submitted,
James .Prosser
Execute Director
JDP:cak
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 7432 ALDRICH AVENUE
TO STEVEN MARLIN GRANT HOMES
WHEREAS, the Richfield 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
7432 Aldrich Avenue Lot 9, Block 11, Irwin Shores.
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 a
development agreement negotiated as follows:
Performance
Address Sale Price Securi Builder
7432 Aldrich Avenue $35,000 $35,000 Steven Marlin Grant
Homes, Inc.
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:
1. A public hearing has been held and 7432 Aldrich Avenue Thomas Avenue
is authorized to be sold for $35,000 to Steven Marlin Grant Homes, Inc.
2. The Chairperson and Executive Director are authorized to execute a
Contract for Private Development and other agreements necessary to
complete the transaction.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 15th day of March, 1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
J
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Front Elevation
Rear Elevation
7432 Aldrich Avenue
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