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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. 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MMW WZ W Q ``X r iii Q Q OC U Q T T N Q W Q 0 • 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 • i • °' !, , ~, ~ ~ ~~ i ~, a ~ O '~j a ~,:__- ~: ~ ~ , -,~ ' ~ ' I.~ ~ J' ~• ~ =~~ ~ ;i , t o ~ ~ 6 O iI d } J ~~ ~ ' ' ~' o ~ i - ~, ~~. ~~: ~ ~~ ICI I~~ 0 ~~ 0 6 _N w t C O ll Yl 0 ~, J s to V 1:~ • • 0 v L _~ C U N 0 ~n L 0 _~ N L • W W ~F- , V/ N r ~I ~"'~ W co r N ~~ _ -==; - _ -- -- x-- ;, ..'i_ -; =- - ~i=- = ~. ; ~,, - _- _ , _ - ~ __ - -- O - ~ _- -- • c~ ~\ ~ ~ ,,,,,~, ; W .~,- j; - C ~_ _ -- p '~CC~^~: ti j ~ 1 G ~~. L ~ ~ ~ . , ; , ;~~ ~, ,, _ _ _- ~ ~ ~ 0 .D 0 ~ .~.----.:.:_.:. _.__..._ ~. :~ r ~~ ~ ~~ ! ~~ o ~-4-t ~ > i\ ~ ? W i \ ~~ •+ i ~ ; N ~j ~'~ i ~~ .,, ~~; ' ,~ j ~--_'~ f.! KRa~'J '--~ r ca '--; w ~; i ~ ~ ~ s.. ~; ; ~ sj j oC i ~< I ., ,I C ~' Q • r ~1 ~.d w,~ .~ _W W ~j ~ '~ J [] • ~ L~ro rD11J Ia4 F / i LIJIt74 `LS~M T.. 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" ~., ^ /h 1~~j. y~ 3~ NGPS ; _ - f J _..:: I i f 6w L• t.rr ~ ~ n5°l. ~' 1uSV ~ b xEr C ~F ra+~vw FIRST FLOOR 0 N SECOND FLOOR W Z W Q H Z a z~ 0 a W J W W J_ _ ~ w -- W M _ ti ;;------- - IF _~ _ r- - - - - _ SLS, o, >; n~J_-c/,b ~j~ ~~-~.Z, 9~>i-^ s.-!_.,r ~; Ey. 2Z: ~ _ I j u.-! p ~: ~~ .. u I(.i~ ' ! d i~~ Cif yi. c_ C` ` a :r i Q4n c.Z~ „ 'I"- Ism _;~44 r• t~ ~ 1c ~' , 7 nrU 2.~ LLrN~i.,l_~1+ L U I\ ~ ' .. ` -~ -- ~ t~~ =,-_ -ice ~~~ ~ Ji. ,. I I ~^ /. ~ ~ I u .\•s ~, J J . a~ ~ - II ~ ~, ~'t~ y N bi1~N`, -s~, ~,~b~ do al \ ~l ~ ~,Z ~ ~, ~ ~ P J r o, G~',i , p '~q ILL Sj4a. ~i :.ay _ 4 L,i ~ , W J W itE (~; i a~ ~~ Ll r I`vC _ _ ~I i 21' ~ J Y~~ fp d I r!> Itr T~4'IJ~~ Jiu II1'~a I ~I ~P ~ ~I~ Ji~ 0~ o ~II~- , -~- I- -- ~ I ~, g S, ~, w a I e, ~. ~ ; I r,~/, j~ L 4~ t '~ -I I_ dN N I ~ i V I ~ti LL: rs .' ~~ `' - Jr \ Ij ~-o..iZ_sslctn~l. j' Qp ! ~1!' ~ ~! n: 0 :. T _ I I ~, 22 / ~ ,~o.m a~e..o ~3Tr'zrd d ~ I V ~~ ~~ ~ i~ ' ~: f ~ ~ a I _ I : _ ~ 00 ~- ~' „UU .. i>z - ~,1 ~~ i~ D a 1 2 I - j='='=r ~~ 2 J iI ~ ~ ..~ J it N - -------~~ II Nr y4 !!~ ~ I ~y II etl 3~ IIN ~rl I ~ ! i I ~ --~ - -- - -.; Q,. z~>iia/s,Javin i i .~ ~ ~ j I I o'. c~ I >' i I .,',I mil ,~ .0-11 -c-oi _ K,~ x ~-IZ • W W J Z a .~ 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 • •