08-19-96 agendaCITY OF RICHFIELD, MINNESOTA
MONDAY, AUGUST 19, 1996
• REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF JULY 15, 1996
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. CONSIDERATION OF DRAFT SENIOR HOUSING MARKET ANALYSIS AND
DEMAND ESTIMATES FOR RICHFIELD, AUGUST 1996, PREPARED BY
MAXFIELD RESEARCH GROUP
HRA LETTER NO. 45
• 3. CONSIDERATION OF PROPOSAL TO CONTINUE COMMUNITY APARTMENT
PROGRAM FOR FOURTH YEAR
HRA LETTER NO. 46
4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE FOR RICHFIELD REDISCOVERED SINGLE FAMILY DEVELOPMENT:
• 6837 LOGAN AVENUE TO DAVID A. WILLIAMS CONSTRUCTION
• 2916 WEST 71-1/2 STREET TO TSC CONSTRUCTION
• 6621 GIRARD AVENUE TO STEVEN MARLIN GRANT HOMES, INC.
• 7344 BRYANT AVENUE TO SUSSEL CORPORATION
HRA LETTER NO. 47
5. CONSIDERATION OF REQUEST TO EXECUTE SUBORDINATION, NON-
DISTURBANCEAND ATTORNMENTAGREEMENT FOR CSM, SHOPS AT
LYNDALE; PHASE 11;1NVOLVING BOSTON MARKET
HRA LETTER NO. 48
6. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
• PURCHASE OF 7001 SHERIDAN AVENUE FOR RICHFIELD REDISCOVERED
PROGRAM
HRA LETTER NO. 49
L~~~.-
7. CONSIDERATION OF RESOLUTION ESTABLISHING JUST COMPENSATION
AND AUTHORIZING PURCHASE OF 817 EAST 66TH STREET; AKA
• FINASERVE GAS STATION
HRA LETTER NO. 50
8. CONSIDERATION OF RESOLUTION APPROVING MODIFICATION NO. 3 TO
CEDAR AVENUE BUSINESS AREA REDEVELOPMENT PLAN AND TAX
INCREMENT PLAN
HRA LETTER NO. 51
9. DISCUSSION OF RICHFIELD LAKE AREA REDEVELOPMENT AND IDENTIFY
COORDINATED PLANNING AND DEVELOPMENT STRATEGY IN
PARTNERSHIP WITH CONSULTANTS
HRA LETTER NO. 52
10. DISCUSSION OF DESIGN CONCEPT FOR RETAIL USES ON WEST SIDE OF
76TH TO 77TH STREET ON LYNDALE AVENUE
HRA LETTER NO. 53
• 11. CONSIDERATION OF REQUEST FOR CRESTWOOD APARTMENTS, INC.,
HAMPTON PLACE APARTMENTS, INC., AND HERITAGE SQUARE
APARTMENTS, INC. TO AMEND ARTICLES OF INCORPORATION TO
FACILITATE NAME CHANGE AND AUTHORIZE OFFICER OF EACH
CORPORATION TO EXECUTE AND FILE APPROPRIATE DOCUMENTS WITH
SECRETARY OF STATE
HRA LETTER NO. 54
12. CONSIDERATION OF APPROVAL OF PROPOSED HRA PROPERTY TAX
LEVY FOR PAYABLE YEAR 1997 FOR CERTIFICATION TO HENNEPIN
COUNTY AND SET OPTIONAL DATE FOR PUBLIC BUDGET HEARING FOR
1996 REVISED/1997 PROPOSED HRA BUDGET AND TAX LEVY
HRA LETTER NO. 55
13. EXECUTIVE DIRECTOR REPORT
14. 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 861-9702.
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 55
Agenda August 19,.1996
Issue Statement:
Approval of .proposed HRA property tax levy for payable year 1997 for certification to
Hennepin County and set optional date for public budget hearing for the 1996
Revised/1997 Proposed HRA budget and tax levy.
Background:
As required by the Truth in Taxation legislation, each taxing authority must certify its
proposed tax levy for the payable year 1997 to the County Auditor on or before
September 15, 1996. Taxing authority for the .purpose of this requirement includes all
counties, school districts, cities, towns and special taxing districts such as an HRA. No
local unit of government is exempt from this requirement.
In addition, certain taxing authorities must certify to the County Auditor the dates that
have been selected for Truth in Taxation hearings and for the continuation of this
hearing (if necessary) by September 15, 1996. In those instances, the dates must not
conflict with hearing dates of the county or the school district in which that taxing
authority is located. Such hearings must be scheduled between November 29 and
• December 20, 1996.
However, the Truth in Taxation law does not require the HRA to hold a Truth in
Taxation hearing prior to adoption of a final levy. Instead, the final levy is adopted as
part of the City's final certification process.
The HRA could, however, decide to hold a public hearing on the HRA budget and levy
at some point in the future prior to the City's adoption of a final levy. It is currently
anticipated that the City will hold a Truth in Taxation hearing on December 4 with a
continuation date of December 11. The HRA could hold a public hearing at its regular
November meeting.
The proposed 1997 HRA and relocation levy represents a 2.7% increase from the
previous year's levy. The maximum HRA levy is established by law and represents a
set portion of the City's total market value.
Recommended Motion:
1. Adopt the attached resolution approving the proposed 1997 Housing and
Redevelopment Authority general fund and relocation information fund tax levies.
2. Set a public budget hearing for 7 p.m. on November 18, 1996.
•
. Basis of Recommendation:
1. The Minnesota Truth in Taxation law requires adoption of a preliminary levy from
each taxing authority.
2. The recommended levy is allowed under Minnesota levy limits which are still in
effect for housing redevelopment authorities.
3. The budget and accompanying proposed levy for 1997 are ready for consideration.
4. There is adequate time to meet the deadline for submission to Hennepin County.
5. Even though a Truth in Taxation hearing is not required by the State Statute, it
would still be appropriate for the HRA to hold a public hearing on the budget and
adopt a final levy sometime in November prior to the City's consideration of a final
levy if the HRA desired to do so.
Alternative Recommendation:
1. The HRA could adopt a preliminary levy less than the one proposed herein.
However, that would not provide for programs which are recommended in the 1996
Revised/1997 Proposed budget.
• 2. The HRA could select a different date other than November 18 (regular November
HRA meeting) to conduct a public hearing and adopt a final levy.
3. The HRA could simply proceed at a future date to adopt the budget and levy without
holding any public budget meeting.
Discussion/Decision Mode:
Action by the HRA on August 19 is necessary to certify preliminary levy to the County
within the Truth in"Taxation statute time frame.
Respectfully submitted,
en L. Devi
Acting Executive Director
SLD:cak
•
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 54
Agenda August, 19, 1996
Issue Statement:
Consideration of request for Crestwood Apartments, Inc., Hampton Place Apartments,
Inc., and Heritage Square East Apartments, Inc. to amend their Articles of Incorporation
to facilitate a name change and authorize the officer of each corporation to execute and
file the appropriate documents with the Secretary of State.
Background:
On July 10, 1995, the HRA approved the Articles of Incorporation and Bylaws for the
three corporations stated. By this action, Sage Corporation legally authorized the HRA
to use the three names of the apartments. The three corporations named are as
follows: Crestwood Apartments, Inc.; Hampton Place Apartments, Inc.; and Heritage
Square East Apartments, Inc. Since the activities related to the project of acquiring
these properties has ceased, Sage Corporation has requested that the HRA relinquish
the names back to them. The action under consideration addresses Sage
Corporation's request while maintaining the three corporations for potential future uses.
Recommended Motion:
Request that the- three corporations amend their respective articles of incorporation and
change their names as follows:
• from Crestwood Apartments, Inc. to C Corporation;
• from Hampton Place Apartments, Inc. to F Corporation; and
• from Heritage Square East Apartments, Inc. to H Corporation.
Basis of Recommendation:
1. The activity related to the project of acquiring. the three apartment complexes,
which caused the naming of three corporations, has ceased.
2. Sage Corporation has requested the HRA to change the name of the three
corporations.
3. The HRA desires to keep the three corporations for potential future use.
Alternative Recommendation:
1. The HRA may continue this item to a later date.
2. The HRA can dissolve the corporations.
Discussion/Decision Mode:
The sole member (HRA) and Board of Directors of, Crestwood Apartments, Inc.,
Hampton Place Apartments, Inc., and Heritage Square East Apartments, Inc. will meet
on Monday, August 19, 1996 to consider this action.
Respectfully submitted,
Steven L: Devich
Acting Executive Director
SLD:cak
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 53
Agenda August 19,1996
Issue Statement:
Discussion of a design concept for the retail uses on the west side of 76th to 77th
Street on Lyndale Avenue.
Background:
Business owners, with architectural assistance, have developed a street facade and off-
street parking concept at the referenced location. Recently, they met with
Commissioner Russ Susag and Community Development Director Bruce Palmborg to
discuss the concept. Council Member Susag shared the concept with the City Council
as a discussion item on August 12, 1996. Commissioner Susag suggested discussion
of the concept with the HRA at the August 19, 1996 meeting.
Recommended Motion:
Accept the report and direct staff to evaluate the strengths and weaknesses of the
proposal and report the results to the HRA.
Basis of Recommendation:
• 1. One approach to redevelopment in this corridor is to improve the facade of
existing buildings and modify off-street parking within the Lyndale Avenue right-of-
way.
2. A concept has been developed for discussion purposes.
Alternative Recommendation:
1. Modify the concept.
2. Reject the concept.
Discussion/Decision Mode:
A set of plans will be available at the HRA meeting. Commissioner Susag has
expressed an interest in presenting the proposal.
Res f Ily submitted,
t
even L. Devich
Acting Executive Director
SLD:cak
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 52-:
Agenda August 19, 1996
Issue Statement:
Discussion of Richfield Lake area redevelopment and identify a coordinated planning
and development strategy in partnership with consultants.
Background:
The Minnesota Department of Transportation (MnDOT) must improved-35W and
Crosstown Highway 62. In conjunction with these improvements, significant work would
be performed in the I-35W/Crosstown Commons area. The highway modifications
would result in an increase in stormwater runoff and the need for additional stormwater
holding capacity. A number of options are available to accommodate the need for
additional stormwater holding.
One option suggested by MnDOT would be the removal of a number of apartment
buildings in the immediate area north and west of Richfield Lake. However, in order to
address the stormwater retention need and minimize any loss of apartments in the
area, it has been concluded that a stormwater retention plan can be devised for
Richfield Lake.
• With the potential for changes to Richfield Lake, attention is also being given to
development opportunities in that area. To address this issue, Tom Martinson, a land
use planner, was contacted by staff to evaluate growth opportunities adjacent to
Richfield Lake. The HRA, City Council and Planning Commission have been briefed on
the Martinson concepts. These concepts have become the basis for evaluating a
development strategy.
An effective approach when taking on a complex project of this scope is to -rely on
specialized development and planning services provided by consultants. CSM, the ILN
retail site assembler and developer, has approached staff and expressed an interest in
partnering with the HRA as a development consultant. The potential partnership of
CSM and the HRA would provide a solid base for generating development concepts for
the area.
It is also useful to utilize a consultant to provide the type of planning services for the
area which the City received from the Hoisington Koegler group for 76th Street and
Lyndale Avenue.
Recommended Motion:
Authorize staff to develop a scope of service and supporting agreements with CSM as a
development consultant and Hoisington Koegler Group, Inc. as a planning consultant to
consider redevelopment strategies at Richfield Lake.
• Basis of Recommendation:
1. A partnership at the beginning of this complex project offers a comprehensive
team approach to evaluating a redevelopment strategy at Richfield Lake.
2. MnDOT has expressed a need to implement a road improvement strategy in three
years for I-35W and Crosstown Highway 62.
3. Tom Martinson's land use concepts have identified growth opportunities for the
City at Richfield Lake.
4. MnDOT's need and the preliminary land use concepts developed by Martinson
provide the basis for assembling a team capable of starting the process which
identifies issues and opportunities for presentation to the public for discussion
purposes.
5. CSM is a financially capable and experienced developer, knowledgeable about
the Richfield market.
6. The Hoisington Koegler Group proved to be a valuable land use planning
resource for 76th Street. The same type of consulting service is needed here.
Alternative Recommendation:
1. Direct staff to initiate an RFP process to identify developer and planning
consulting services.
2. Defer acting on a Richfield Lake redevelopment planning strategy.
Discussion/Decision Mode:
Staff will return to the HRA in October 1996 to consider a scope of service agreements.
R pe ully su ed,
.~
ven L. e
Acting Executive Director
SLD:cak
•
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No.`:51
Agenda August 19, 1996
Issue Statement:
Consideration of a resolution approving Modification Number 3 to the Cedar Avenue
Business Area (CABA) Redevelopment Plan and Tax Increment Plan (Plan).
Background:
Early in 1988, the CABA Plans were approved by the HRA and City Council. The Plans
provided assistance to Copy Duplicating Products, Inc. (CDP) to redevelop the old
Cedar Avenue liquor store site. Tax increment assistance was provided on a "pay as
you go" basis.
In 1990, Modification Number 1 to the CABA Plans was approved by the HRA and City
Council to authorize the disbursement of increment to the school district for its bond
referendum and share excess increment with the county, city, and school district.
In 1993, the HRA and City Council approved a subsequent modification to the CABA
Plans by establishing the Richfield Redevelopment Project Area and creating the
Redevelopment Plan in order to expand the use of tax increments from all tax
increment districts through the development account.
Currently, Modification Number 3 to the CABA Plans proposes to provide for the
acquisition of additional property along the Cedar Avenue corridor. Specifically, the
additional acquisitions include:
Property Address PID Number Property Status
7200 Cedar Avenue 35-028-24-14-0075 Vacant commercial land;
zoned C-2 general
commercial
7214 Cedar Avenue 35-028-24-14-0076 Commercial land with a
storage building; zoned C-2
general commercial
7226 Cedar Avenue 35-028-24-14-0077 Plumbing company;
zoned C-2 general
commercial
7244 Cedar Avenue 35-028-24-14-0074 Multi-family apartment
building, 17 units;
zoned C-2 general
commercial
The purpose of the acquisitions is to provide for redevelopment of a combined site.
Very preliminary discussions have suggested an office type use is feasible. Staff has
been in contact with two of the property owners to indicate interest in acquiring the
property and negotiations are underway. It is proposed that these acquisitions be
partially paid for with the remaining net tax increment generated from the CDP office
project, estimated to be $300,000 at the end of 1996. All previously approved.
disbursements of tax increment, including payments to the developer of the CDP
project, will continue to be made. The last tax increment payment to the CABA
economic development tax increment district is 1996.
The estimated expenditure budget for CABA Modification Number 3 activities such as
acquisition, architecture, engineering, relocation, and administrative costs is $1,644,548
at maximum. A gap of approximately $1.3 million exists after the CABA revenue is
applied toward project expenditures. Potential revenue sources available to the HRA to
close project expenditure gaps include developer resources, development account
funds, new tax increment, and relocation levy funds. The use of any or a combination of
these options may be considered by the HRA in conjunction with development
opportunity.
Attached for review and consideration is the amended CABA Plan which identifies
property for acquisition and modifies the budget to allow for the additional related
expenditures.
Recommended Motion:
Adopt the resolution which 1) approves Modification. Number 3 to the CABA Plan
subject to a finding by the Planning Commission as to its conformance with the
Comprehensive Plan; and 2) requests the City Council to hold a public hearing and
approve the modification.
Basis of Recommendation:
1. The modification would permit additional property acquisitions which have. been
identified as high priority 1996 development opportunities.
2. Modifying CABA will reduce the net amount of~resources that are needed for the
Re c ully subm~ ed,
r~
v~
Acting Executive Director
SLD:cak
high priority development opportunities.
3. Excess increment would continue to be distributed to the taxing jurisdictions,
including the Richfield School District.
4. The amount of assistance paid to CDP Inc. is not being altered.
Alternative Recommendation:
1. Do not approve the modification.
2. Delay approval of the modification.
Discussion/Decision Mode:
Approval on August 19, 1996 would permit Planning Commission review on August 27,
1996, City Council consideration on September 23, 1996 and implementation shortly
thereafter.
•
HRA RESOLUTION NO.
RESOLUTION APPROVING
MODIFICATION N0.3 TO THE TAX INCREMENT
FINANCING PLAN FOR THE CEDAR AVENUE BUSINESS AREA
TAX INCREMENT FINANCING DISTRICT;
REQUESTING THE RICHFIELD CITY COUNCIL TO
CONDUCT A PUBLIC HEARING THEREON:
RECOMMENDING APPROVAL OF THE PLANS
BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (HRA) adopted a redevelopment plan (Redevelopment Plan) and a tax increment
financing plan (TIF Plan) for the area of the City generally known as the Cedar Avenue
Business Area (CABA Project Area) on January 19, 1988 and modified the Plans on
October 15, 1990.
1.02. The city council of the City of Richfield (City) held a public hearing on the CABA
TIF Plan and approved the Plan on February 22, 1988.
1.03. Changes in the distribution of tax increment revenues generated by and property to be
acquired in the Richfield Redevelopment Project Area and the CABA Project Area have
necessitated modification of the Plans.
1.04. Except for the modification stated herein, the HRA reaffirms its findings and
conclusions as approved in the original Plan dated January 19, 1988.
1.05. The HRA has caused to be prepared a modified TIF Plan for the CABA Tax
Increment Financing District which is contained in a document entitled "Modification No. 3
to the Tax Increment Financing Plan for the CABA Tax Increment Financing", dated
August 19, 1996, and on file with the HRA.
Section 2. HRA Approval.
2.01. The HRA finds that the objectives of the HRA in encouraging development and
redevelopment within the Richfield Project Area will be advanced by adoption of the
modified CABA TIF Plan.
• 2.02. The modified CABA TIF Plan is hereby approved and adopted by the HRA, subject
to review by the Richfield planning commission.
Section 3. Further Proceeding.
• 3.01. The executive director of the HRA is hereby authorized and directed to transmit
copies of the CABA TIF Plan modification to the school board of Independent School
District No. 280, Intermediate School District No. 287, and the board of commissioners
Hennepin County for review and comment and to notify said public bodies of the public
hearing to be held on the Plans by the City.
3.02. The HRA requests that the Richfield planning commission review the CABA TIF
Plan modification and comment regarding the consistency of the Plans with the City's
comprehensive plan.
of
3.03. The HRA requests the City to hold the public hearing on the modified CABA TIF
Plan required by Minn. Stat. Section 469.028 and Minn. Stat. Section 469.175, Subd. 3, as
soon hereafter as is practicable and recommends that the modified Plan be approved by the
City.
3.04. The HRA also intends to request that the City from time to time consider various
other actions necessary to the implementation of the Plan and pledges its cooperation with
the City in achieving the objectives of the Plan.
Passed by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of August, 1996.
•
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
•
Introduction
The following text represents a modification to the Tax Increment Financing Plan for the CABA Tax
Increment District. The modified Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the original Redevelopment Plan and Tax Increment Financing Plan. Generally, the
substantive changes include the authority to spend tax increments generated from the CABA Tax Increment
Financing District for land acquisition in the Richfield Redevelopment Project Area. For further information,
a review of the Redevelopment Plan for Richfield Redevelopment Project Area dated June 14, 1993 and the
Redevelopment Plan for the CABA Redevelopment Project Area and Tax Increment Financing Plan for the
CABA Tax Increment Financing District dated January 19, 1988 and modified on October 15, 1990 is
recommended.
Modification No. 3 to the
Tax Increment Financing Plan for the CABA Tax Increment Financing District
August 19, 1996
A. Statutory Authority
See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment
Project Area, dated June 14, 1993.
B. Statement of Objectives
See also the Statement of Goals and Objectives found in Section D of the Redevelopment Plan for Richfield
Redevelopment Project Area, dated June 14, 1993.
F. Parcels in Acquisition
Properties identified for acquisition by the HRA are modified to include the following parcels:
(7200 Cedar Ave. S.)
(7214 Cedar Ave. S.)
(7226 Cedar Ave. S.)
(7244 Cedar Ave. S.)
G. Estimate of Costs
Housing and Redevelopment Authority of the
City of Richfield, Minnesota
#35-028-24-14-0075
#35-028-24-14-0076
#35-028-24-14-0077
#35-028-24-14-0074
The estimate of public costs associated with the tax increment district are amended to include the following
costs:
Acquisition $1,245,870
Architecture, Engineering
and Relocation 249,174
Administrative 149,504
TOTAL $1,644,548
The HRA may incur obligations such as revenue notes, purchase agreements, or inter-fund loans.
However, G.O. Bonds are not expected to be issued. Any interest on such obligations are hereby added to
the above listed estimate of costs.
H. Estimated Amount of Obligated Funds
An estimate of the amount of the obligated funds based on the proposed development is $1,500,000 plus
any interest costs.
M. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes construction would have occurred without the
creation of a Tax Increment Financing District. If the construction is a result of tax increment financing,
the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing
jurisdictions is $0 due to the fact that the construction would not have occurred without the assistance of
the HRA and City, the following estimated impact of the Tax Increment Financing District would be as
follows if the "but for" test was not met:
1995/96 Estimated Captured Percent of CTC
Tax Capacity Tax Capacity (CTC) to Entity Total
Hennepin County 1,006,485,910 21,976 0.002%
I.S.D. No. 280 22,075,804 21,976 0.100%
Interm.S.D. No. 287 672,580,484 21,976 0.003%
City of Richfield 21,056,158 21,976 0.104%
Obligations currently exist for the CABA Project. Therefore, a portion of the captured tax capacity for the
tax increment district and projects is being utilized for existing obligations. The captured tax capacity
listed in the above and following fiscal implications is the annual average remainder of the captured tax
capacity currently being devoted to existing obligations subtracted from total captured tax capacity.
1995/96 Tax Percentage
Extension Rates of Total CTC Taxes
Hennepin County 37.270 26.31% 21,976 8,190
I.S.D. No. 280 69.076 48.77% 21,976 15,180
Interm.S.D. No. 287 0.000 0.00% 21,976 0
City of Richfield 26.336 18.59% 21,976 5,788
Metro. Spec. Districts 5.063 3.57% 21,976 1,113
Other Taxing Districts 3.901 2.75% 21,976 857
141.646 100.00% 21,976 31,128
In addition, the impacts on School Districts Nos. 280 and 287 do not include the effect of state aids for
education upon school district funding.
•
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• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. so
Agenda August 19, 1996
Issue. Statement:
Consideration of a resolution establishing just compensation and authorizing the
purchase of 817 East 66th Street; aka Finaserve Gas Station.
Background:
The Finaserve Gas Station, 817 East 66th Street, has been for sale and vacant for
approximately the past three years. In 1990, the property owner's estate sold the
station to Kunz Oil (Finaserve, Inc.). The station closed a few years later. Prior to the
1990 sale, the station had an unprecedented history of being a high volume. pumping
station under single proprietorship.
The vacant gas station continues to remain a .strongly visible, blighted condition to the
viable businesses next door, adjacent residential neighborhood, and East 66th Street
corridor in general. Recently, at the urging of the HRA, staff contacted the property
owner's broker to initiate discussions of potential .acquisition in order to rid the area of
blight and make available for re-use approximately 16,277 square feet of land, zoned
C-2, general commercial. An appraisal was prepared by a qualified, independent
appraiser. The appraised market value indicated $117,600. In 1990, the sale price
was $250,000. The initial asking price for approximately the last three years has been
$200,000. Prior to June, 1996,. the asking price was lowered to $125,000 by the current
real estate broker.
• The attached resolution sets just compensation for the property at $117,600. This
figure reflects the value of the real estate, building and canopy. There are no gasoline
pumps on the premises. A Phase I Environmental Assessment will be obtained to
ascertain any potential petroleum releases that may warrant further analysis and any
potential remediation. Acquisition of the property would be subject only to conveyance
of clear title to the property.
The property will be purchased with development account funds. The Redevelopment
Plan for the Richfield Redevelopment Project Area, dated June 17, 1993, provides the
statutory authority to acquire the subject property without any formal modifications to
the Redevelopment Plan.
Recommended Motion:
Adopt the resolution which authorizes purchase of the property at 817 East 66th Street
under the Richfield Redevelopment Project Plan; sets just compensation at $117,600;
and authorizes the Executive Director and Chairperson to execute a purchase
agreement at this value and other documents necessary for purchase.
Basis of Recommendation:
1. The HRA approved the-Richfield Redevelopment Project Plan on May 17, 1993.
2. The Planning Commission approved the Richfield Redevelopment Project Plan on
May 25, 1993.
3. The City Council approved the approved the Richfield Redevelopment Project
• Plan on June 14, 1993.
4. An appraisal of the property was completed and is consistent with the just
compensation proposed.
5. Funds from the development account are available and proposed to be used to
undertake the purchase of the property and site clearance.
6. Upon acquisition and site clearance, proposals for potential redevelopment of the
property will be sought.
Alternative Recommendation:
1. Delay action.
Discussion/Decision Mode:
Adoption of the resolution is crucial to obtaining site control for removal of the blighted
gas station and the potential redevelopment of this property along the East 66th Street
corridor.
Resg~ctf~lly submitted,
"`~
Stev evic
Acting Executive Directo
SLD:cak
•
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING ACQUISITION OF REAL PROPERTY
LOCATED AT 817 EAST 66TH STREET
WHEREAS, the Housing and Redevelopment Authority in and for the City of -
Richfield, Minnesota (the "HRA") is authorized by Minnesota Statutes, Sections 469.001
through 469.047 (the "HRA Act") to establish projects for the purpose of identifying
blighted properties and removing them before blight is allowed to spread within the
community; and
WHEREAS, pursuant to said authority, the HRA has established the City
Richfield Redevelopment Project Area by a Redevelopment plan dated June 14, 1993;
and
WHEREAS, pursuant to said project and the HRA Act, the HRA is authorized to
acquire properties which are blighted and which meet the guidelines established for the
project; and
WHEREAS, the HRA has identified the property located at 817 East 66th Street
(the "Property") as a property which qualifies for acquisition pursuant to the project and
the purchase of which would advance the goals and objectives of said project; and.
WHEREAS, due to the location of the Property within the project area and the
acquisition thereof with funds from the. HRA's development account and not with tax
increment, no formal modifications of the program plan is necessary; and
WHEREAS, the HRA has caused the Property to be appraised by a qualified
independent real estate appraiser; and
WHEREAS, the HRA and the owner of the Property have negotiated the terms
and conditions of the sale and have agreed upon a purchase price of $117,600; and
WHEREAS, the HRA has determined that it has available to it in its development
account sufficient funds to purchase the Property.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The HRA agrees to purchase the Property for $117,600.
2. The Chairperson and Executive Director are hereby authorized to execute a
purchase agreement and such other documents as may be necessary to
effectuate a purchase of the Property.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of August, 1996.
Thomas E. Harms, Chair
ATTEST:
Vern Luettinger, Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 49
Agenda August 19 1996
Issue Statement:
Public hearing and consideration of resolution authorizing the purchase of 7001
Sheridan Avenue for Richfield Rediscovered.
Background:
The property at 7001 Sheridan Avenue is for sale. The house has several housing
code violations, is vacant, and suffers from deferred maintenance.
The purchase price of $90,000 for the 132 ft. x 135 ft. property is based on an appraisal
by BCL. The double lot would allow for two new single family homes on two lots, each
66 ft. wide.
Recommended Motion:
Adopt the resolution which authorizes:
1. The purchase of 7001 Sheridan Avenue for $90,000.
2. The Executive Director and HRA Chairperson to execute a purchase agreement and
other documents to effectuate the purchase.
Basis of Recommendation:
1. The property is substandard and obsolete and meets program requirements for
acquisition.
2. Funding for acquisition is available.
3. The owner has voluntarily indicated an interest in selling the property to the HRA.
4. The purchase price is based on an appraised market value of $90,000. If treated
as the purchase of two lots, each valued at $45,000, the amount of subsidy per lot
is below average for the Richfield Rediscovered Program. A net subsidy of
$18,000 per lot after demolition and proceeds of sale of $30,000 for each lot is
anticipated.
5. The purchase is contingent on City approval of a subdivision waiver that ensures
two lots can be developed. No variances are required and the divided lots will
meet all City requirements.
Alternative Recommendation:
Do not authorize acquisition.
Discussion/Decision Mode:
A purchase agreement has been prepared. The subdivision waiver process with the
City has been started.
Resp fully submitte
r~
n L. evich
Acting Executive Director
SLD:cak
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE
OF REAL PROPERTY LOCATED AT:
7001 SHE~tIDAN AVENUE
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 Richfield Rediscovered Program Redevelopment Project (Project)
heretofore adopted by the City of Richfield (City) and the HRA, said real property being
described as follows:
Lot 7, Sabin Lake Harriet Garden Lots,
That part lying North of South 130 feet and including that portion of adjacent
streets and alleys that have been or are planned to be vacated, Hennepin
County
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operations; and
WHEREAS, the property meets all program requirements for acquisition; and
WHEREAS, the HRA has caused an appraisal of the subject property to be
made by a qualified independent professional real estate appraiser and has negotiated
a purchase price with the owner of $90,000 based on the appraised value; and
WHEREAS, funds have been provided by the HRA. and are available for
acquisition; and
WHEREAS, the purchase is contingent on City approval of a subdivision waiver
which provides two buildable lots.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. That the approved purchase price is $90,000, contingent on City approval of a
subdivision waiver to divide the referenced lot into two parcels.
2. The Chairperson and Executive Director are authorized to execute a purchase
agreement and other documents to effectuate 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 19th day of August, 1996.
Thomas E. Harms, Chair
ATTEST:
•
Vern Luettinger, Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 4s'_ ;
Agenda August 19, 1996
Issue .Statement:
Request to execute Subordination, Non-Disturbance and Attornment Agreement for
CSM, Shops at Lyndale, Phase II involving Boston Market.
Background:
Boston Market is requesting the execution of a Subordination, Non-Disturbance and
Attornment Agreement (Agreement) which is attached. The Agreement would permit
Boston Market to continue operation in their respective site in the event that CSM
defaults under its mortgages with the HRA and the HRA takes the property back.
The Agreement is similar to those previously approved by the HRA for Einstein Bros
Bagels and Baby Super Store.
Recommended Motion:
Approve and execute the Subordination, Non-Disturbance and Attornment Agreement
for Boston Market relating to Shops at Lyndale, Phase II.
Basis of Recommendation:
1. The Agreement would assure a tenancy for Boston Market if the HRA took over
the property due to a mortgage default by CSM.
2. The Agreement is similar to those previously approved by the HRA for Einstein
Bros. Bagels and Baby Super Store.
Alternative Recommendation:
1. Do not approve nor execute the Subordination, Non-Disturbance and Attornment
Agreement for Boston Market.
2. Delay approvals.
Discussion/Decision Mode:
Approval and execution of the proposed Agreement for Boston Market will further
secure its lease with CSM.
Respectfully submitted,
`~
. Devich
Acting Executive Director
SLD:cak
• RECORDING REQUESTED BY, AND
WHEN RECORDID RETURN TO:
Thomas P. McAlister', Esq.
McGlinchey Stafford Lang
643 Magazine Street
New Orleans, LA 70130
NON-DISTURBANCE AND ATTORNII~NT AGREEMENT
THIS NON DISTURBANCE AND ATTOPNMENr AG ~ ~ (the "Agreement")
is made and entered into this the day of 1996, by and between
FINEST FOODSERVICE, L.L.C., a Delaware limited liability company ("Tenant"),
successor-in-interest to Northstar Restaurants, Inc., THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,
MINNESOTA, ("Lender") and CSM INVESTORS, INC., a Minnesota
corporation ("Landlord").
RE~ITAL~:
WHEREAS, Landlord and Tenant executed a Lease dated as of December 14, 1995, (the
• "Lease"), a memorandum of which may be recorded simultaneously herewith, covering a certain
premises therein described (the "Demised Premises") located on a parcel of real estate commonly
known as the "Shops at Lyndale -Phase II; a legal description of which is attached hereto and
incorporated herein by this reference as Exhibit "A" (said parcel of real estate and the Demised
Premises being sometimes collectively referred to herein as the "Shopping Center"); and
V'VHEREAS, Landlord has executed a mortgage or mortgages (collectively, the
"Mortgages") identified on Exhibit "B", attached hereto, in favor of Lender and payable upon
the terms and conditions described therein; and
WHEREAS, it is a condition to the Mortgages that the Mortgages shall unconditionally
be and remain at all times a lien or charge upon the Demised Premises, prior and superior to
the Lease and to the leasehold estate created thereby; and
WHO, the parties hereto desire to assure Tenant's possession and control of the
Demised Premises under the Lease upon the terms and conditions therein contained;
NOW, 'i'RFRFFORE, for and in consideration of the mutual covenants and premises
herein and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed by the parties hereto, the parties hereto do hereby agree as
follows:
NON DISTURBANCE AND ATTORNMENT AGREEMENT
Lyndale & 494, Richfield, MN 1
• AGREEMENT:
1. The Lease is and shall be subject and subordinate to the Mortgages, and to all
renewals, modifications, consolidations, replacements and extensions thereof, and to all future
advances made thereunder.
2. Should Lender become the owner of the Demised Premises, or should the
Demised Premises be sold by reason of foreclosure, or other proceedings brought to enforce the
Mortgages which encumber the Demised Premises, or should the Demised Premises be
transferred by deed in lieu of foreclosure, or should any portion of the Demised Premises be
sold under a trustee's sale, the Lease shall continue in full force and effect as a direct lease
between the then owner of the Demised Premises resulting from the enforcement of the
Mortgages and Tenant, upon, and subject to, all of the terms, covenants and conditions of the
Lease for the balance of the term thereof remaining, including any extensions therein provided.
Tenant does hereby agree to attorn to Lender or to any such owner as its landlord, and Lender
hereby accepts such attornment.
3. Notwithstanding any other provision of this Agreement, Lender shall not be
(a) liable for any default of any landlord under the Lease (including Landlord), provided that
Lender may, but shall not be obligated to cure any non-monetary default of Landlord that is
continuing as of the date Lender forecloses the Demised Premises within thirty (30) days from
the date Tenant delivers written notice to Lender of such continuing default, unless such default
i is of such a nature to reasonably require more than thirty (30) days to cure and then Lender shall
be permitted such additional time as is reasonably necessary to effect such cure, provided Lender
diligently and continuously proceeds to cure such default; (b) subject to any offsets or defenses
which have accrued prior to the date of foreclosure; (c) bound by any rent that Tenant may have
paid under the Lease more than one (1) month in advance; (d) bound by any amendment or
modification of the Lease hereafter made without Lender's prior written consent; and
(e) responsible for the return of any security deposit delivered to Landlord under the Lease and
not subsequently received by Lender.
4. If Lender sends written notice to Tenant to direct its rent payments under the
Lease to Lender instead of Landlord, then Tenant agrees to follow the instructions set forth in
such written instructions and deliver rent payments to Lender; however, Landlord and Lender.
agree that Tenant shall be credited under the Lease for any rent payments sent to Lender
pursuant to such written notice.
5. All notices which may or are required to be sent under this Agreement shall be
in writing and shall be sent by certified or registered U.S. mail, postage prepaid, return receipt
requested, and sent to the party at the address appearing below or such other address ~ as any
party shall hereafter inform the other parry by written notice given as set .forth above:
~~~.
NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Lyadale & 494, Richfield, MN 2
• Tenant: Finest Foodservice, L.L.C.
8717 West 110th Street, Suite 600
Overland Park, KS 66210
with a copy to: Thomas P. McAlister, Esq.
McGlinchey Stafford Lang
643 Magazine Street
New Orleans, LA 70130
bender: Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota
c/o John Dean
. Kennedy & Groven
200 S. Sixth Street
Minneapolis, MN 55402
All notices delivered as set forth above shall be deemed effective three (3) days from. the date
deposited in the U.S. mail. Tenant shall provide Lender with thirty (30) days notice and
opportunity to cure any Landlord default prior to exercising any right to terminate under the
Lease.
6. Said Mortgages shall not cover or encumber and. shall not be construed as
subjecting in any manner to the lien thereof any of Tenant's improvements or trade fixtures,.
furniture, equipment or other personal property at any time placed or installed in the Demised
Premises. In the event the Demised Premises or any part thereof shall be taken for public
purposes by condemnation or transfer in lieu thereof or the same are damaged or destroyed, the
rights of the parties to any condemnation award or insurance proceeds shall be determined and
controlled by the applicable provisions of this Lease, but proceeds shall be applied per mortgage.
7. This Agreement shall inure to the benefit of and be binding upon the parties
hereto, their successors in interest, heirs and assigns and any subsequent owner of the Demised
Premises secured by the Mortgages.
8. Should any action or proceeding be commenced to enforce any of the provisions
of this Agreement or in connection with its meaning, the prevailing party in such action shall
be awarded, in addition to any other relief it may obtain, its reasonable costs and expenses, not
limited to taxable costs, and reasonable attorney's fees.
9. Tenant shall not be joined as a party/defendant in any action or proceeding which
may be instituted or taken by reason or under any default by Landlord in the performance of the
terms, covenants, conditions and agreements set forth in the Mortgages unless required by law.
NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Lyndale & 494, Richfield, MN 3
IN WIITIESS WHEREOF, the parties hereto have caused this Non-Disturbance and
Attornment Agreement to be executed as of the day and year first above written.
wrrNESSES:
LENDER:
THE HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF RICHFIELD,
1~DNNFSOTA,
sy:
Name•
Title:
WITNESSES:
wrrNESSES:
TENANT:
FINEST FOODSERVICE, L.L.C.,
a Delaware limited liability company
By: FINEST, INC. , a Delaware corporation
By:
Name: Robert L. Sirlcis
Title: President
LANDLORD:
CSM INVESTORS, INC., a Minnesota corporation
By:
Name•
Title:
NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Lyndale & 494, Richfield, MN 4
STATE OF
COUNTY OF
Personally appeared before me, a Notary Public in and for the above County and State,
known personally by me and acknowledged by me to be on the date of
execution, the of THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF RICHFIELD, bsINNFSOTA, and he/she executed the foregoing for and on behalf of said
corporation by authority of its by-laws or a resultion of its boazd of directors.said corporation's Boazd
of Directors.
Witnessed by hand and this notarial seal, this day of , 1996.
Notary Public
My Commission Expires:
•
STATE OF 112ir1NESOTA )
COUNTY OF )
Personally appeazed before me, a Notary Public in and for the above County and State,
known personally by me and acknowledged by me to be on the date of
execution, the of CSM IlWESTORS, INC., a Minnesota corporation, and he/she
executed the foregoing for and on behalf of said corporation by authority of said corporation's Board
of Directors.
Witnessed by hand and this notarial seal, this day of , 1996.
Notary Public
My Commission Expires:
NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Lyndale & 494, Richfield, MN 5
STATE OF KANSAS )
COUNTY OF JOHNSON )
Personally appeared before me, a Notary Public in and for the above County and State, ROBERT
SIRKIS, known personally by me and acknowledged by me to be on the daze of execution, the President
of Finest, Inc., a Delaware corporation, serving as the managing member of Finest Foodservice,
L.L.C., a Delaware limited liability company, and he executed the foregoing for and on behalf of said
corporation as managing member of said limited liability company by authority of said corporation's
Board of Directors, and said limited liability company's members.
Witnessed by hand and this notarial seal, this day of , 1996.
U
My Commission Expires:
Notary Public
~~ NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Lyndale & 494, Richfield, MN 6
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. _4~
Agenda August 19, 1996
Issue Statement:
Public hearing and consideration of resolution authorizing sale of 6837 Logan Avenue
to David A. Williams Construction; 2916 West 71-1/2 Street to TSC Construction; 6621
Girard Avenue to Steven Marlin Grant Homes, lnc. (SMGH); and 7344 Bryant Avenue
to Sussel Corporation for Richfield Rediscovered single family home development.
Background:
The HRA has acquired 6837 Logan Avenue, 2916 West 71-1/2 Street, 6621 Girard and
7344 Bryant Avenues for Richfield Rediscovered Program new home development. It
is proposed that the HRA sell the identified properties to David A. Williams
Construction, TSC Construction, SMGH, and Sussel Corporation in accordance with
development agreements. The development agreements are similar in form and
content to those used previously.
The new home at 6837 Logan Avenue will be a three bedroom, two bath home. The
garage will have a three car capacity, but one stall is hidden from the street view. This
home won the design competition required for this special lot and has an estimated
• value in excess of $200,000.
The home at 2916 West 71-1/2 Street is asplit-level, four bedroom home valued at
$145,000. The buyers are residents of Rich Acres.
The home at 6621 Girard Avenue is a two-story home with three finished bedrooms and
2-1/2 baths. The end value is estimated at $129,235.
The home at 7344 Bryant Avenue has 1-1/2 stories, with two bedrooms and a bath
finished on the upper level. The end value is estimated at $120,000.
Recommended Motion:
Following a public hearing, adopt the resolution authorizing the HRA Chair and
Executive Director to sell:
• 6837 Logan Avenue to David A. Williams Construction, Inc.
• 2916 West 71-1//2 Street to TSC Construction
• 6621. Girard Avenue to Steven Marlin Grant Homes, Inc.
• 7344 Bryant Avenue to Sussel Corporation.
Basis of Recommendation:
1. All builders have demonstrated their experience, capability, and financial security.
David Williams Construction and TSC Construction are building under the
program for the first time.
2. The HRA acquired 6837 Logan Avenue, 2916 West 71-1/2 Street, 6621 Girard
and 7344 Bryant Avenues 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 for all properties was published in the Sun Current on
August 7, 1996 for August 19, 1996 consideration.
Alternative Recommendation:
Do not proceed with development agreements with David A. Williams Construction,
TSC Construction, SMGH and Sussel and direct staff to find other buyers.
Discussion/Decision Mode:
Closings would occur in late August with construction starting soon afterwards. The site
clearance work at 2916 West 71-1/2 Street and 6621 Girard Avenue should be
completed shortly. The other sites have been cleared.
Rep tfully submi d,
~r.~t.
• L. D vic
Acting Executive Director
SLD:cak
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT 6827 LOGAN AVENUE, 2916 WEST 71-1/2 STREET,
6621 GIRARD AND 7344 BRYANT AVENUES TO
DAVID A. WILLIAMS CONSTRUCTION, TSC HOMES, STEVEN MARLIN GRANT
HOMES AND SUSSEL CORPORATION, RESPECTIVELY, IN ACCORDANCE WITH
DEVELOPMENT AGREEMENTS
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
6837 Logan Avenue
2916 West 71-1 /2 Street
6621 Girard Avenue
7344 Bryant Avenue
Legal Description
Lot 11, Block 5, Wood Lake
Highlands Addn
The East 66 feet of the South
135 feet of Lot 57, Sabin Lake
Harriet Garden Lots
Lot 19, Block 1, Blossom Park
Addn
Lot 12, Block 4, Irvin Shores No.
2, Richfield
WHEREAS, the HRA is authorized to sell real property within its area of
operation after public hearing; and
WHEREAS, purchasers of the described property have been identified and
development agreements negotiated as follows:
Performance
•
Address Sale Price Security
6837 Logan Avenue $45,000 $45,000
Builder
David A. Williams
Construction
2916 West 71-1/2 Street $32,000 $32,000 TSC Homes
6621 Girard Avenue $26,000 $26,000 SMGH
7344 Bryant Avenue $30,000 $30,000 Sussel Corporation
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 6837 Logan Avenue is authorized to be sold for
$45,000 to David A. Williams Construction, Inc. in accordance with a development
agreement with the HRA.
2. A public hearing has been held and 2916 West 71-1/2 Street is authorized to be
sold for $32,000 to TSC Homes in accordance with a development agreement with
the HRA.
3. A public hearing has been held and 6621 Girard Avenue is authorized to be sold for
$26,000 to Steven Marlin Grant Homes, Inc. in accordance with a development
agreement with the HRA.
4. A public hearing has been held and 7344 Bryant Avenue is authorized to be sold for
$30,000 to Sussel Corporation in accordance with a development agreement with
the HRA.
5. The Chairperson and Executive Director are authorized to execute a Contract for
Private Development and other agreements as required to effectuate the sales to
• David A. Williams Construction, TSC Homes, Steven Marlin Grant Homes, Inc. and
Sussel Corporation.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of August 1996.
Thomas E. Harms, Chair
ATTEST:
Vern Luettinger, Secretary
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.~
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 46
Agenda August 19, 1996
Issue Statement:
Consideration of a proposal to continue the Community Apartment Program (CAP) for a
fourth year.
Background:
Laura Klein and Stephanie Hawkinson (Project for Pride in Living, Inc.) and Bill
Schatzlein (Affordable Suburban Housing) will present a year end report and also
address proposals for the upcoming year four.
The third year outcomes to be reported on include the following five items (see
Attachment #1):
1. Expand collaborative efforts between agencies organizations and RAMA.
2. Continue to provide support to RAMA.
3. Organize apartment owners/managers focus groups by geographic area.
4. Market apartment finance information program.
5. Aggressively promote apartment resident selection guide booklet.
i The fourth year proposed outcomes are listed below (see Attachment #2):
1. Target problem buildings.
2. Continued collaboration and RAMA support.
3. Outreach to small apartment building owners.
4. CAP promotion plan.
The proposed budget for year four is $50,000 (note Exhibit A to the attached proposed
agreement, Attachment #2). This is an increase of 7% or $3,360 from the third year.
The increase is generally due to the increase in RAMA activity. The proposed HRA
budgets for revised 1996 and 1997 include this amount. Other elements of the contract
are the same as last year.
Recommended Motion:
Approve the execution of the contract with Project for Pride in Living, Inc. and
Affordable Suburban Housing for continuation of a fourth year of the Community
Apartment Program.
Basis of Recommendation:
1. CAP is successful based on a review of outcomes.
2. There is a need to continue the program as evidenced by the proposed outcomes
for the fourth year.
3. Project-for Pride in Living, Inc. and Affordable Suburban Housing have performed
well.
4. The Development Fund has monies to continue support of this program.
Alternative Recommendation:
1. Delay approval.
2. Modify proposed outcomes.
3. Direct staff to identify other contractors.
Discussion/Decision Mode:
The third year program period ends August 31, 1996.
Respe~tful~y submitted,
.~
given L. Devic~i
Acting Executive Director
SLD:cak
r1
:J
HRA August 19, 1996
Attachment
•
~J
July 29, 1996
Bruce Palmborg, Richfield HRA Coordinator
6700 Portland
Richfield, MN 55423
Dear Mr. Palmborg:
Re: 1996-97 Community Apartment Program Proposal
Project for Pride in Living (PPL), in partnership with Affordable Suburban Housing (ASH), is
pleased to report that during the third year we were able to accomplish several important goals.
The Richfield Apartment Owners/Managers Association continued to grow with regular,
educational, bi-monthly General Membership Meetings. We followed these meetings with
newsletters which were deemed informative and helpful. To our knowledge, the RAMA meetings
are still the iighest attendance of the metro area owners and managers associations. Apartment
owners and manager also benefitted from receiving the Richfield Community Apartment Program
Resident Selection handbook, which was completed and distributed this year.
Collaboration of apartment owners and managers continued this year with the addition of geographical
area meetings. Through this arose a joint purchasing pilot project among a small group of neighboring
apartments. If this successfully trim costs on garbage pick-up, snow removal, lawn care and the like,
we will assist in setting up collaborations with other apartment clusters.
The fourth year proposal contains four important outcomes. These outcomes are a continuation of
the successful accomplishments made in the past years:
1. To target problem buildings
2. To continue collaboration efforts and RAMA support
3. To continue outreach to Small Owners
4. To implement a CAP Promotion Plan
Enclosed is the proposed outcomes for the Richfield Community Apartment Program 1996-1997
year.
Yours truly,
Stephanie Hawkinson
Project Coordinator
Project for Pride in Living
874-3315
Bill Schatzlein
Executive Director
Affordable Suburban Housing Inc.
835-5498
HRA August 19, 1996
CAP Attachment #1
•
CAP Update for Contract Year 1995/96
1995/96 Contract Goals
I. Expand collaborative efforts between agencies, organizations and RAMA
1. Promoted and assisted Crime-Free Housing through RAMA announcements, newsletters,
phone calling, etc.
2. Established a Richfield renter resident mailing list for city and/or community use.
3. Expanded YouthNet contacts with apartment owners and managers, through lunches,
flyering, etc.
II. Continue to provide staff consulting services to RAMA
1. Assisted RAMA in organizing seven general membership educational meetings.
2. Created and disbursed all RAMA newsletters and announcements.
3. Direct calling survey to all non-attending members.
4. Direct calling to all members for interest survey.
5. Represented CAP and RAMA at Diversity Activities and Remodeling Fair.
III. Organize Richfield Owners/Managers Support Groups by Geographic Area
1. Identified six geographical areas; north and south sections of each City ward.
2. Developed mailing list for each geographical area.
• 3. Directly mailed invitations to each area meeting and made weekly phone calls inviting
owners/managers in each ward.
4. Coordinated and hosted six area focus groups of Richfield apartment owners/managers.
5. Made available apartment finance information, Resident Selection Booklet & RAMA
Information.
6. Eleven (11) people attended the meetings with concerns about consistency in inspections,
market rates and formulated ideas about the further development of joint purchasing.
IV. Market Apartment Finance Information
1. Direct mailing to apartment owners/managers announcing availability of
finance/rehabilitation information.
2. Approximately 12 owners requested information and are currently reviewing
rehabilitation financing options.
3. Provided brochures at RAMA meetings, geographical area meetings, diversity activities,
and Remodeling Fair.
V. Promote the Resident Selection Guide Book
1. Completed Resident Selection Guide book including area screening agencies, screening
tips for do-it-yourselfers, and current landlord/tenant laws and resources.
2. Distributed Resident Selection Guide Books to all Richfield owners and managers.
•
HRA August 19, 1996
CAP Attachment #2
•
J
•
CAP Fourth Year Outcomes 1996/97
Proposed
I. Target Program Buildings
To work with owners of `problem properties"
to clean-up their buildings in terms of
appearance and in the strictness of
screening applicants. This is a comprehensive
approach using the collaborative efforts of
various city department staff and other
necessary resources.
1. Identify problem buildings as determined
by health and building inspectors, police,
and/or neighboring apartment owners and managers.
2. Identify strategy for each building, by
talking with City departments staff.
a. property assessment
b. review screen practices
3. Regular scheduled meetings with owners
and managers.
4. "Case Manage" -Police, Inspection, Health
and Consultants.
II. Continued Collaboration and RAMA Support
To maintain RAMA, which includes continuing the
educational and networking meetings. Other
outside collaborations. will be persuaded as
appropriate.
1. Continue assisting RAMA with their bi-monthly
meetings.
a. Crime Free Multi-Housing
b. Richfield Apartment Finance Program
2. Continue creating and distributing RAMA
bi-monthly newsletters and meeting notices.
3. Assist RAMA-in developing a public service
project, such as a food and/or clothing
drive.
4. If feasible, create and distribute an ongoing
"Newcomer Package" for apartment resident
newcomers.
Time Schedule
Aug/September
September
Ongoing
Ongoing
Ongoing
r:
HRA August 19, 1996
CAP Attachment #2
Page 2
5. Advise YouthNet on linkage strategies with
apartments thereby assisting them in
expanding their programs to more apartment
youth.
6. Work with the Human Rights Commission to
ensure that collaborative efforts are persued.
•
III. Outreach to Small Owners Ongoing
To maintain outreach with small owners and managers
including helping them to network amongst themselves.
Other outside collaborations will be persuade as is appropriate.
1. Hold geographical area meetings as
needed/requested.
2. Work with the owners .and managers of small
apartments on joint purchasing, beginning
with one geographical group as a pilot
project.
3. Seminar for non-corporate owners and managers
to teach screening methods.
IV. CAP Promotion Plan Year Long
To create a positive community-oriented
image of both CAP and its participants,
with .the intention of neutralizing the
perceived difference between single family
residents and multi family residents.
1. Designed to introduce apartment residents
owners and managers as neighbors.
2. Strategy: (See Attachment #3).
HRA August 19, 1996
EXHIBIT A to Agreement
PROJECT FOR PRIDE IN LIVING, INC.
AFFORDABLE SUBURBAN HOUSING
PROPOSAL TO
THE RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
BUDGET
September 1996 -August 1997
Revenue
City of Richfield HRA $50,000
Expenses
Program Coordinator I
• Salary/Benefits/Taxes/Workers Comp $20,000
Program Coordinator II
Salary/B~nefits/Taxes/Workers Comp $20,000
Other Staff $ 3,800
Supplies/Office Support/Postage $ 2,000
Administration $ 4,200
TOTAL EXPENSES $50,000
[H:CdAdmin: PPL:CAPCont]
HRA August 19, 1996
Attachment
Outline for Promotion Program
Community Apartment Program
CAP
AUDIENCE All of Richfield community; single-family residents, multi-family residents,
business operators, apartment owners and managers, other community
organizations.
OBJECTIVE To help neutralize the perceived difference between single family residents and
multi-family residents by further integrating CAP into the Richfield
community by being present at more community functions and presenting,
where possible, a positive community-oriented image of the program and its
participants.
EXPECTATIONS Taking a proactive stance, it will introduce people whom few have met: the
community oriented apartment resident, owner, or manager, i.e., the person
who doesn't fit the stereotype. by showing the community they have a
positive resource in these individuals and improved feeling of neighborliness
in the "Urban Hometown" would be created.
• TONE Friendly and proactive. No mention will be made of "two" (or more)
communities existing in Richfield. Any mention of a gap, i.e., terms like
"bridging" or "breaking barriers", emphasizes a negative condition. The
language and action of this effort will relay on the strength of subtlety.
STRATEGY - Develop a slogan that describe CAP's work
- Host an informal informational luncheon, or after work gathering, for,
community leaders.
- Create display boards that feature slogan and the photograph and description
residents, owners, or managers who are active in the community.
- Create pamphlets to be disbursed alongside display boards.
- Secure articles in publications (Sun-Current, Your City) covering the
campaign kick-off and follow up on with human interest stories and
coverage of CAP programs; 1tAMA, YouthNet, Residential Selections
Book, Richfield Apartment Finance Program and Geographical Area
Meetings.
•
HRA August 19, 1996
Attachment
• PROFESSIONAL SERVICE AGREEMENT
COMMUNITY APARTMENT PROGRAM
THIS AGREEMENT made and entered into by and between the Housing and
Redevelopment Authority in and for the City of Richfield, STATE OF MINNESOTA,
hereinafter referred to as the HRA, and Project for Pride in Living, Inc., Minneapolis, and
Affordable Suburban Housing, Minneapolis, hereinafter referred to as PPL/ASH.
W[TNESSETH:
WHEREAS, the HRA wishes to purchase the services of PPL/ASH; and
WHEREAS, there are funds available for the purchase of these services.
NOW, THEREFORE, in consideration of the mutual undertakings and agreements
hereinafter set forth, the HRA and PPL/ASH agree as follows:
PPL/ASH agrees to furnish services to the HRA to pursue those outcomes
(objectives) within the identified time period as indicated on the attached "Exhibit
• A" dated August 19, 1996. The total cost of this Agreement shall not exceed
$50,000 during the fourth year. All reports, memos, and other data produced by
PPL/ASH become the property of the HRA.
2. PAYMENT FOR SERVICES
Invoices for services performed shall be combined by PPL/ASH into one
statement. Invoices may be submitted monthly.. Payment for services shall be made
directly to PPL by check. Invoices shall be of sufficient detail for the HRA to
determine the activity and personnel for which payment is being made. Payment
shall be made within 30 days of receipt of an invoice by the HRA.
3. INDEPENDENT CONTRACTOR
PPL/ASH shall select the means, method, and manner of performing the
services herein in consultation with the HRA. Nothing is intended or should be
construed in any manner-as creating or-establishing the relationship of copartners
between PPL/ASH and the HRA or as constituting PPL/ASH as the agent,
representative, or employee of the HRA for any purpose or in any manner
whosoever. PPL/ASH is to be and shall remain an independent contractor with
respect to all services performed under this Agreement. PPL/ASH represents that it
has or will secure as its own expense all personnel required in performing services
under this Agreement. Any and all personnel of PPL/ASH or other persons while
engaged in the performance of any work or services required by this Agreement
1
shall have no contractual relationship with the HRA, and shall not be considered
employees of the HRA. Any and all claims that may or might arise under the
Unemployment Compensation Act or the Worker's Compensation Act of the State
• of Minnesota on behalf of said personnel, arising out of employment or alleged
employment, including, without limitation, claims of discrimination against
PPL/ASH, its officers, agents, contractors, or employees shall in no way be the
responsibility of the HRA. PPL/ASH shall defend, indemnify, and-hold the HRA,
its officers, agents, and employees harmless from any and all such claims irrespective
of any determination of any pertinent tribunal, agency, board, commission, or
court. Such personnel or other persons -shall neither require nor be entitled to any
compensation, rights, or benefits of any kind whatsoever from the HRA, including,
without limitation, tenure rights, medical and hospital care, sick and vacation leave,
Worker's Compensation, Unemployment Insurance, disability, severance pay, and
PERA.
4. NONDISCRIMINATION
The HRA operates in accordance with the. City of Richfield's policies against
discrimination. No person shall be excluded from or denied the benefits of any
service performed or contemplated under the terms of this Agreement on the
grounds of race, color, creed, religion, age, sex, disability, marital status, public
assistance status, ex-offender status, or national origin; and no person who is
protected by applicable Federal or State laws against discrimination shall be
otherwise subjected to discrimination. PPL shall (1) furnish all information and
• reports which may be required by the City's Affirmative Action Policy, and (2) it
shall comply with the City's Equal Employment Opportunity/Affirmative Action
Policies with regard to employment and contracting.
5. INDEMNITY AND INSURANCE
PPL/ASH agrees to defend, indemnify, and hold the HRA, its officers, and
employees harmless from any liability claims, damages, costs, judgments, or
expenses, including reasonable attorney fees, resulting directly or indirectly from an
act or omission (including without limitation professional errors or omissions) of
PPL/ASH, its agents, employees, or assignees in performance of the services
provided. by this contract, and against all loss by reason of the failure of PPL/ASH to
fully perform in any respect, all obligations under this contract.
6. DATA PRIVACY
PPL/ASH agrees to abide by all applicable State-and Federal laws and regulations
concerning the handling and disclosure of private and confidential information
concerning individuals and/or data including but not limited to information made
non-public by such laws or regulations.
•
2
7. RECORDS -AVAILABILITY
PPL/ASH agrees that the HRA, the State Auditor, or any of their duly
• authorized representatives at any time during normal business hours and as often as
they may reasonably deem necessary, shall have access to and the right to examine,
audit, excerpt, and transcribe any books, documents, papers, records, etc., which
are pertinent to the accounting practices and procedures of PPL/ASH and involve
transactions relating to this Agreement. Records shall be retained for three years
from date of final payment with respect to the project.
8. NON-ASSIGNMENT
PPL/ASH shall not assign, subcontract, transfer, or pledge this contract and/or the
services to be performed hereunder, whether in whole or in part, without the prior
written consent of the HRA.
9. MERGER AND MODIFICATION
a) If PPL/ASH fails to perform any of the provisions of this Agreement or so fails
to administer the work as to endanger the performance of the Agreement, this
shall constitute a default. Unless the default is excused, the HRA, may upon
written notice, immediately cancel the Agreement in its entirety.
b) Any material alterations, variations, modifications, or waivers of provisions of
• this Agreement shall only be valid when they have been reduced to writing as an
amendment to this Agreement signed by the parties hereto.
10. DEFAULT AND CANCELLATION
a) If PPL/ASH fails to perform any of the provisions of this Agreement or so fails
to administer the work as to endanger the performance of the Agreement, this
shall constitute a default. Unless the default is excused, the HRA, may upon
written notice, immediately cancel the Agreement in its entirety.
b) The .City's failure to insist upon strict performance of any provision or to
exercise any rights under this Agreement shall not be deemed a relinquishment.
or waiver of the same, unless consented to in writing. Such consent shall not
constitute a general waiver or relinquishment throughout the entire term of the
Agreement.
c) This Agreement maybe canceled-without-cause by either party upon twenty
(20) days written notice.
In order to coordinate the services of PPL/ASH with the activities of the HRA so as
to accomplish the purpose of this contract, Bruce Palmborg shall manage this
contract on behalf of the HRA and serve as liaison between the HRA and
PPL/ASH.
3
•
In addition, from time to time, meetings shall be held between PPL/ASH and the
Community Apartment Program Team. PPL/ASH may also report directly to the
HRA Board of Commissioners.
12. NOTICES
Any notice or demand which must be given or made by a party hereto under the
terms of this Agreement shall be in writing.
Notices shall be sent as follows:
•
To the H RA;
Bruce Palmborg
Community. Development Director
City Hall
6700 Portland Avenue South
Richfield, MN 55423
To PPL/ASH;
Steve Cramer
Executive Director
Project for Pride In Living
1925 Chicago Avenue South
Minneapolis, MN 55404
PPL/ASH having signed this contract, and the HRA having duly approved this
contract on August 19, l 996, and pursuant to such approval and the proper HRA
officials having signed this contract, the parties hereto agree to be bound by the provisions
herein set forth beginning September 1, 1996 for a period of twelve months or until
terminated as provided above.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
STATE OF MINNESOTA
By:
Executive Director
By:
Chairperson
Project for Pride In Living, Inc.
By:
lts
Affordable Suburban Housing, Inc.
Its
Attest
Attest
Attest
Attest
[H:Cdadmin:PPL:Proserag]
4
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 45
Agenda August 19, 1996
Issue Statement:
Review and accept the draft Senior Housing. Market Analysis and Demand Estimates
for Richfield, Minnesota, August 1996 prepared by Maxfield Research Group.
Background:
In May 1996, the HRA requested the Maxfield Group to:
evaluate Richfield senior housing options in an environment of limited resources:
townhomes, existing apartment conversion, new construction, and assisted living;
provide a focus group approach to securing housing option feedback from seniors
and senior representatives; and
provide a survey of Woodlake Point, Lakeshore Drive, and Village Shores to better
understand those senior populations;
The draft report coritains the following sections:
Contents Starting Paae
• Summary of Findings 1
• Purpose and Scope 6
• Metropolitan Setting 7
• Site Criteria 15
• Demographic Analysis 18
• Senior Housing Market Review 40
• Long Term Care Review 75
• Conclusions and Recommendations 80
• Suggested Housing Development Plan 94
Recommended Motion:
Receive the report and direct staff to use the Senior Housing Market Analysis and
Demand Estimates for Richfield, Minnesota, August 1996 and study as a resource
when considering.development opportunities that present themselves.
Basis of Recommendation:
1. Gathering accurate information regarding senior housing options helps the City
attract appropriately sized and designed senior housing.
2. The HRA and City Council are presenting prioritizing development opportunities
3. The report responds to an HRA request for information regarding this topic.
Alternative. Recommendation:
1. Modify the scope of the study, undertaking additional analysis.
Discussion/Decision Mode:
Tom Melchoir, Maxfield Research Group's Executive Director, will be at the HRA
meeting to present the study and respond to any questions.
Re a tfully submitted,
~~~cV~ r c~,.
S eni L, Devich
Acting Executive Director
SLD:cak
•
•