09-18-95 agendaCITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, SEPTEMBER 18, 1995
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF AUGUST 21, 1995
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. CONSIDERATION OF RIGHT OF ENTRY AGREEMENT AND MAJOR POINTS
OF DEVELOPMENT AGREEMENT; TOLD DEVELOPMENT COMPANY
HRA LETTER NO. 53
3. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF
PROPERTIES FOR RICHFIELD REDISCOVERED:
• 6601 LOGAN AVENUE
• 506 EAST 67TH STREET
• 76TH AND EMERSON, LOT 1, BLOCK 2
• .76TH AND EMERSON, LOT 1, BLOCK 1
HRA LETTER NO. 54
4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF 7112 FIRST AVENUE
HRA LETTER NO. 55
5. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF RICHFIELD REDISCOVERED PROPERTY AT 6845 NEWTON
AVENUE TO LOYAL THOMPSON AND 6812-13TH AVENUE TO ROCK PORT
HOMES
HRA LETTER NO. 56
6. EXECUTIVE DIRECTOR REPORT
7. CLAIMS AND PAYROLL
ADJOURNMENT
Auxiliary aids for individuals with disabilities are available upon request.
Requests must be made at least 96 hours in advance to the Administrative
Services Director at 861-9702.
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 56
Agenda September 18, 1995
Issue Statement:
Public hearing and consideration of a resolution authorizing the sale of Richfield
Rediscovered property at 6845 Newton Avenue to Loyal Thompson and 6812-13th
Avenue to Rock Port Homes.
Background:
The HRA authorized the acquisition of 6845 Newton Avenue under the Richfield
Rediscovered Program. Loyal Thompson, a Richfield resident who has. built numerous
homes in Richfield in the past, is proposing to build a new home. The sale price of the
-lot is $26,000. Acquisition of 6812-13th Avenue was authorized in June 1995. Rock
Port Homes, Inc. will build a new home for a New Ford Town couple. The lot is valued
at $30,000. The new homes will be valued at $125,000 and $130,000 respectively.
The development agreement remains essentially unchanged from those previously
used for Richfield Rediscovered:
The agreements require the builders to:
• Pay for the site at the stated lot value minus the demolition credit, if any,
upon. completion of the home.
• Provide financial security during the construction period with a letter of credit,
or similar security, that has a value of $26,000 and $30,000 respectively.
(The security amount is the difference between the lot price and the total
HRA investment in the property or the lot price, whichever is greater.)
• Complete the homes and pay for the lots by June 1996.
Both builders are financially sound, and have completed quality homes in the
community in the past.
Recommended Motion:
Following the public hearing, adopt the attached resolution which authorizes the Chair
and Executive Director to execute agreements which sell 6845 Newton Avenue to Loyal
Thompson, and 6812-13th Avenue to Rock Port Homes for the development of new
single family homes.
Basis of Recommendation:
1. A check of references indicates the builders are experienced, capable, financially
secure builders.
2. The HRA has acquired the lot at 6812-13th Avenue for the Richfield Rediscovered
program. The lot at 6845 Newton Avenue will be purchased by early October.
3. Development agreements have been negotiated and are in conformance with
program guidelines.
4. Notice of public hearing was published in the Sun-Current on September 6, 1995.
5. Previously, the Planning Commission found the sale of the lots for development of
new single family homes to be in conformance with the City's Comprehensive
Plan.
Alternative Recommendation:
Do not proceed with development agreements with the specified builders and direct
staff to find other buyers.
Discussion/Decision Mode:
Closings are anticipated to occur in late September or early October with site clearance
and construction starting shortly thereafter.
Respec u ly submitted,
a i
James~~ Prosser
Executive Director
JDP:ds
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6845
NEWTON AVENUE TO LOYAL THOMPSON AND 6812-13TH AVENUE TO ROCK
PORT HOMES, INC. 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 Redevelopment Project (Project)
heretofore adopted by the City of Richfield (City) and the HRA, said real property being
described as follows:
6845 Newton Avenue: Lot 5, Block 7, Tingdale Bros. Lincoln Hills Addn
6812-13th Avenue: The South 72 ft of the North 288 ft of Block 5, except
the West 100 ft thereof, Rich Fields Addition, Hennepin County; and
WHEREAS, the HRA is authorized to sell real property within its area of
operation after public hearing; and
WHEREAS, two developers, Loyal Thompson and Rock Port Homes, Inc. have
been identified as the purchasers of the described properties in accordance with
development agreements; and
WHEREAS, the public hearing has been held after proper public notice; and
WHEREAS, the Planning Commission has made a finding that the disposition of
the property for residential purposes is consistent with the Comprehensive Plan.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. A public hearing has been held and 6845 Newton Avenue and 6812-13th Avenue
are authorized to be sold to Loyal Thompson and Rock Port Homes, Inc.,
respectively in accordance with development agreements with the HRA.
2. The purchase price for 6845 Newton Avenue is $26,000.
3. The purchase price for 6812-13th Avenue is $30,000.
4. The Chairperson and Executive Director are authorized to execute the Development
Agreements and other agreements as required to effectuate the sale to Loyal
Thompson and Rock Port Homes, Inc.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of September, 1995.
Thomas E. Harms, Chair
ATTEST:
Vern Luettinger, Secretary
W
Z
W
Q
Z
_W
Z
t!1
CO
t0
,~
~~
'IiI
i~ ~;~ ~!
~; ~; ,
i i !i ~ I
~ ~
~~~~
~; ~„i,
~'
ii ~~~
~~~~~
~~
a ~~
-- ~ ;
''
.~ ~i~ ~~
~~
~~
Z
o_
H
W
W
1-
Z
O
~~
O~
Z
O
a
w
J
W
w
GC
z
O
Q
W
J
W
D
~ ~ =W
i
~~
N ~~~ ~ ~
m ~ a _2 I
~n
W N~
=~ U ~
9
~`
m~
~~
N
1 MII
~yF
V' ~
2
~ ~ J
9 ~
n ~
~ Fy
N 1'
Z
~N ~ M
m
dN QI
r
S wl
ry
O '~ ^ ~I
,~
o u ~ -~ -------- - .---
K ' Q
Z ~~ `~
Q ~ N
~ O~ ry D ,D
~ Cl
~ ~` _
u '~
o ~
.n d' C'~
"-• N ._.. .. __. _
1
I'
f~l
i~
L' ~ jn N
w ~:
~ ~^ _
1
,~
~I ~ ~ j'
O
Z
V
N
i ~ ~ r ~
'jm
to ~l~
__ ~ /
~ i
` O
Q ~ ~
0~3
!~ o i
w
~
` ~~
~~
_ 'r _.
~
~ ~ _ ~
~
- ~
- -- ---
M
~\ 1
~
~ N'1 ~
~
cp o
M ' `~
~ c
--
-- `- a Q'
~ ?19IO M
~ n„ bz
5355n8171~1V I
~
S
~
I
l ~o
r
J
a
o
~
~ --
r
rn
in - - Z
_ ___ a
~
~ .Y'
'9:` 1
• 1I!
O
~
s ~,
~
I _ ' 1
..
°~ - W
J
W
.. ,~. F
- x:- C'f
.~~
.. ~ Z
C
~
J
-a
~,1
N
a
~~ ~`
A~~~~
5
.i
> o
~~
~"
~ ~
O
_
_ a
~~
r
~ W
~
W
-~ -
- ~ ~
a
`~~
5 ~ Iii
.. •~
O
a
W
J
W
H
W
J
~r .
i z
r
iy ~j
~s'~?' .
_ ~ r~
~ r
y
~:: =~ ~=.
~~ ;
~"` ?,~ ;
'S •^
Ito.` +
' ~ \ ; ni,
~., .
:.s ti
• ~V1~!. .
o~~
~ Z
a W
Q
W
W ~
Z ~
O r
~ --- -- __
~~ 13cnorsts ~
` I ZOXH C.OJL.G{L,
J~h c.~u~...FLO6t~ tr'I• j.
lti-o e'_o•• a-n -
f
~ ~ ~...OX ~OY1.2. FT'L '
'~ Y V Fb S7S
U / / ;' /'
~ '
~j ~ ;ri '
i ~ i i ~- j
y~ -
I _;
~~ i
~~
IIi
L
~---d _=
--
r
uac a ~„t uY imrt .
~~
y
Z-~ Y'Gut6
It.xA.or._
i
raze
L Sn oac j i
~~
_'
~~ , I
~ Q
~ ~ _
p 111 I'
, ~IJ n{ F wl BFI ~'I
: c.(~
V I.
f ~
L Scrl~ ~ y Q - ( 1
~"".-~I ~ - z.j
-
~ ;
u~~ExcavorF n
~~~~` UPPER ELEVATION
I~
i `
N.
~,~I- 1 SEA D-ncrl~ _ e~c
a.~ll I I`r '` I~uCrTE
e...,.. L
Q`F` Yeu~r lI3'Er
A ~ I I z~ ~ ~I
_ j . °e :~
~i;%*cc '~ Uu ~ r_ss ~I Z
7
BF.a 4co n
i 7 ~ 3"
\ ~ _~ ~ ~~
24
t U~ 9
I ` sic n Z~ 'tr~sste aP.a,' c
V ~ I Z~ - ~~ C24'OL. ~~
//~~jj]]Q VIN( ~(-5 ' ''yy
FN VAU L~ ~ u O ly'ty
6 PT. S u~ccrt
_~ i ~ Bcr~i 2v_ ~ HnsrE2_ B_ p Qpsn
p ~ Fn~~R O S`r~b
~I _~ I
3?
'~ ~o_iLaGE i 4"ceo~ Kant 'iePc
n~, t.coa
j hC~ TPpStGS
L3. 2y"O~ -+
Q'e
I''~ 10~-Le
I lu°X'1° OI! CAOR I.
LOWER ELEVATION i ~
nl~ ur.mr~
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 55
Agenda September 18, 1995
Issue Statement:
Public hearing and sale of 7112 First Avenue.
Background:
The construction project at 7112 First Avenue was authorized by the HRA as a
cooperative project with Hennepin Technical College (HTC). The project is completed
and a sale is anticipated by October 1995.
The selected purchaser is a three member, income qualified family seeking to continue
living in Richfield. Presently, the family is renting an apartment on 78th Street. They
meet the requirements stated in Attachment A. HRA authorization and a public hearing
authorizing the sale of the property are required prior to closing.
The purchasers are making a down payment of $13,000. They have applied for a
conventional mortgage in the amount of $77,000. The difference between the
estimated market value of $115,000 and the initial purchase price of $90,000 ($25,000)
is provided by the HRA as a second mortgage. Project costs are covered by the
buyer's down payment and first mortgage.
The second mortgage accomplishes the following:
1. Makes the initial purchase price affordable.
2. Prevents a speculative purchase in which the buyer might benefit from selling
the home quickly.
The HRA may pay up to 2-1/2 points for mortgage discounting (approximately $2,138)
and the cost of title insurance (approximately $200) at closing. After closing, the HTC
contract of $73.,377 will be paid. These costs have been anticipated in the budget and
will be paid from the proceeds of sale.
If during final qualifying the family is found ineligible by the lender, the purchase
agreement is void and earnest money will be released. At .this time however, the lender
has qualified the purchaser through the preliminary processing.,
Recommended Motion:
It is recommended that following the public hearing, the HRA adopt the attached
resolution which authorizes the disposition of the HRA owned property at 7112 First
Avenue.
Basis of Recommendation:
1. A qualified family has been identified as a purchaser and meets program
requirements.
2. A purchase agreement cannot be processed further by the lender without HRA
authorization of sale.
3. A public hearing notice has been published in the Sun-Current which allows the
HRA to consider the sale at the September meeting.
4. The Planning Commission has determined that the sale for residential purposes is
consistent with the Comprehensive Plan.
5. The house is completely finished. The HRA had an opportunity to inspect the
completed work during an open house that was held August 21, 1995.
Alternative Recommendation:
Do not adopt the resolution. However, this would cause a delay in the sale of the
property, be confusing to the buyer, and would increase HRA holding costs.
Discussion/Decision Mode:
Authorization of the sale is required at the September 18, 1995 meeting so that the
buyers can finalize mortgage financing for a prompt closing.
Respectfully submitted,
r
James. .Prosser
Executive Director
JDP:cak
HRA RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
7112 FIRST AVENUE
WHEREAS, the Housing and Redevelopment Authority (HRA), owns certain real
property located at 7112 First Avenue, legally described as Lot 4, Block 2, Sheldon
Blair's Woodale Fourth Addition; and
WHEREAS, the HRA acquired the property so that South Hennepin Technical
College (HTC) could construct a new single family home at 7112 First Avenue, to be
sold by the HRA to a moderate income family; and
WHEREAS, the Tran family has been identified as qualified purchasers for 7112
First Avenue; and
WHEREAS the conditions of sale include a total sales price of $115,000; a first
mortgage of $77,000 payable to the lender; a lien of $25,000 payable to the HRA and
$13,500 downpayment; and
WHEREAS, the sale of 7112 First Avenue may be authorized by the HRA
following a public hearing which considers the disposition of the property; and
WHEREAS, that hearing has been held following proper publication of notice.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota that the HRA Chairperson and
Executive Director are authorized to execute the purchase agreement and other
required documents so that the disposition of HRA owned property at 7112 First
Avenue occurs as presented herein.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of September, 1995.
Thomas E. Harms, Chair
ATTEST:
Vern Luettinger, Secretary
ATTACHMENT A
7112 First Avenue
New Home Program Eligibility Requirements
for
Home Buyers
• Have athree-six member family (a family is defined as persons related by blood,
marriage or operation of law).
• Be a first time home buyer (or have not having owned in three years).
• Have the following maximum annual income depending upon family size:
Family Size Maximum Income
3 $36,200
4 $40,200
5 $43,400
6 $46,650
This income is 80% of the metropolitan area median income - an accepted
CDBG program income level.
• Have the ability to make monthly payments on an $85,500 mortgage, pay $4,500
down, and pay closing costs required of the buyer.
• Agree to be subject to a lien by the HRA for the difference between the initial sales
price and the actual value.
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 54
Agenda September 18, 1995
Issue Statement:
Adoption of a resolution authorizing the purchase of properties for Richfield
Rediscovered.
Background:
Staff has negotiated the purchase of the following additional sites for Richfield
Rediscovered. BCL perFormed the requested appraisals. The negotiated purchase
price and appraised value are the same, except for the Logan property.
Address
6601 Logan Avenue
506 East 67th Street.
76th and Emerson, Lot 1, Block 2
76th and Emerson, Lot 1, Block 1
Purchased Price and Appraised Value
$69,446 (See .note re: valuation)
$55,000 (See attached map)
.$50,000 (See attached map)
$25,600 (See attached map)
A description of existing .conditions the proposed development concept and source of
funding at each property are attached in a summary form.
Recommended Motion:
Adopt the attached resolution which authorizes:
1. The purchase of the properties at the values indicated with the funds identified in the
attached property summary and .resolution.
2. The Executive Director and HRA Chairperson to execute purchase agreements and
other documents to effectuate the purchase.
Basis of Recommendation:
1. The properties meet program requirements for acquisition and are identified in the
plans previously approved by the HRA.
2. Funding for acquisition is available
3. The owners have voluntarily indicated an interest in selling their property to the HRA.
4. Purchase has been negotiated at the stated values.
Alternative Recommendation:
1. Do not authorize acquisition of 506 East 67th Street. This property is not large
enough to redevelop a new house. Its acquisition is being considered because
neighboring houses encouraged the HRA to consider it as a "blight" removal.
Discussion/Decision Mode:
The Logan property would be purchased October 18 and demolished by November 22,
1995. A closing date for the East 67th property has not been determined yet. The City
Council can consider the sale of the Emerson properties as part of the final platting
process related to the 77th Street project.
Respectfully submitted,
Jam D. Prosser
Executive Director
JDP:cak
RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT:
6601 LOGAN AVENUE
507 EAST 67TH STREET
76TH STREET AND EMERSON 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 Redevelopment Project (Project) heretofore
adopted by the City of Richfield (City) and the HRA, said real properties being
described as follows:
• 6601 Logan Avenue: Lot 10, Block 2, Fairwood Park
• 507 East 67th Street: That part of Lots 13 and 14 lying East of the West 83
feet thereof, Block 1, McCutchan's Portland Avenue Park Addition
• 76th Street and Emerson Avenue: lot 1, Block 1; lot 1, Block 2, Cloverleaf
Addition according to the preliminary plat thereof.
WHEREAS, the HRA is authorized by Minnesota Statues Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, the properties meet all program requirements for acquisition; and
WHEREAS, the HRA has caused appraisals of the subject properties to be
made by a qualified independent professional real estate appraiser and has negotiated
purchase prices with the owners based on stated values; and
WHEREAS, funds have been provided by the HRA and are available for
acquisition.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. That purchase prices are approved as follows:
Address Purchase Price
6601 Logan Avenue $69,446
507 East 67th Street $55,000 (CDBG)
76th and Emerson, Lot 1, Block 2 $50,000
76th and Emerson, Lot 1, Block 1 $25,000
2. That the Chairperson and Executive Director are authorized to execute a Purchase
Agreement and other documents to effectuate purchase for the amounts set forth in
this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of September 1995.
Thomas E. Harms, Chairperson
ATTEST:
Vern Luettinger, Secretary
6601 Logan Avenue
Background
The property was posted as uninhabitable in August 1995. Staff inspected the dwelling
and found pets and personal property in disarray throughout the house. Further, at
least two dogs and 15 to 20 cats have lived intermixed with personal belongings and
have been unsupervised. Pet urine has penetrated the floors and walls making
renovation impractical. The conditions are very similar to those observed when the
HRA purchased 6636 Sheridan Avenue. The 1995 value for tax purposes is $87,000.
Appraised as a standard habitable dwelling the value was placed at $81,000. The
negotiated price is $69,446. Incremental adjustments downward will reduce the price
further if the yard is not cleared up shortly and if personal property is not removed by
the October 18 date of closing:
Development Proposal:
Even though located on 66th Street, the site is part of a very desirable Richfield
neighborhood. Rock Port Homes has indicated that a new home similar to their
"Parade" entry might be possible. While development options are being explored
further, staff is arranging for the house and garage to be demolished before the end of
November.
Funding Source:
This is an added acquisition for the HRA and was not included in the budget. It is
recommended that proceeds of sale from Richfield Rediscovered properties be shifted
from the 1995 Transformation Home Program to this expenditure. There will still be
funds available for transformation loans.
506 East 67th Street
Background:
The owners have voluntarily offered to sell their property to the HRA. An inspection
notes the foundation and floor structure is not secure, electrical wiring needs significant
updating, windows and doors are deteriorated, the garage has reached the end of its
useful life and the house generally has an inefficient floor plan that makes cost effective
remodeling ineffective. The appraised value and negotiated purchase price is $55,000.
The size of the lot, 4,200 square feet, makes it too small to redevelop with a new home.
Development Proposal:
The substandard structure should be cleared from the site and the remaining land
should be sold as a "splinter parcel" to the adjoining property owner at 500 East 67th
Street. The value as a "splinter parcel" is determined by BCL Appraisals, at $2,100.
Basis of Proposal:
• The house is voluntarily available, is one of the properties on the HRA's list of
substandard homes, and qualified for acquisition..
• Renovation is impractical
• Removal of the home and sale as a splinter parcel will enhance the neighborhood
and improve the land value of the home at 500 East 67th Street. The property value
at 500 East 67th Street for tax purposes is presently: Structure: $90,000, plus land
$24,000; total $114,000.,
• Combining these two parcels would match the corner property dimensions for a
home that already exists on Portland Avenue and 67th Street.
Funding Source:
Community Development Block Grant (CDBG) funds have a specific purpose such as
the removal of substandard housing. HUD has authorized the HRA to use CDBG funds
in this way with HRA concurrence.
76th Street and Emerson Avenue
Background:
The City is finalizing the replatting of the area affected by the 77th Street project. Two
residual residential parcels are buildable and the City has an interest in the HRA
developing those parcels with new housing. The larger parcel (Lot 1, Block 2) has
approximately 19,600 sq. ft. and was appraised by BCL at $50,000. The smaller parcel
(Lot 1, Block 1) has approximately 8,900 sq. ft. and was appraised by BCL at $25,600.
At a minimum, three homes (two on the larger parcel, one on the smaller parcel) are
possible. Staff is also exploring whether the larger parcel offers the opportunity for a
creative empty nester attached single family homes development. Perhaps three units
might be possible patterned after a concept presently being considered by the City at
609 West 74th Street.
The 609 West 74th Street concept proposed by Choice Wood Co. of Minneapolis is to
develop five townhome units for "empty nesters". The design features include master
bedrooms on the main floor, private gardens, and attached garages. The townhome
would be arranged around a protected central court in a cluster formation. The
proposal is schedule to go before the Hearing Examiner in September for setback and
lot coverage variances. An existing single family home would be removed.
Basis of Reauest:
• Residual parcels are available for development.
• If the HRA concurs, the City Council will be requested to sell the land to the HRA at
the stated values
• The HRA should be able to recover most of its investment as land proceeds.
Funding Source:
Richfield Rediscovered program funds are already committed. It is proposed that
additional funds be taken from the development account in 1995; to be returned to the
development account in 1996 when resale and development occurs. There are
sufficient development account monies available.
The City purchased this property for the 77th Street project using MSA funds. MSA
funds may only be used for road related purposes. MSA rules require that land
proceeds reflect the "highest and best use". Thus the 77th Street project cannot
discount the sale price.
~ ~. ~ ~ 6D ~ I ~ 33
. I „~ I Kr
~ !'~+ ~ "~ ~ Sd
~ 66TH STREET_ ~ _ ' ''
- r- - ~ I n
. _. ; 6p 33 33 1 -
~JD
c/')
(43)
1° °9
(4~) t
;C. 9'
(41) r.
' ' 9. 3.
~ (~' -
' :'9. 91
:c
(39 )
~~. 8:
f
.~
°
f
---w'- - .'.a ~i
f
v
(34lJ
y
(37)
~-_
r
,~
(36)
f
'9 °5
.A _5
(35) ~
iB '7
i r
Cn
w
Q
r--
i~
~~
lI~
O ~
Z
~ ` `~
I
O~
U.
~1
I 33
o C34)
~' bo t
STREET
67TH
500 E:
_506 E, I
--~
--
---- - - _
~ _
67~H ST. 67TH ST. J•~
S•
~ ; ~ - ~-
~_ r
(90) ~ _ _ _
~'
-
i 35 4' ' (j y
~ .~
~ ~
w
X3`.57 ~ --___
Q
'' 3
192J -
0 ~'° ~:
°''
.
X35.6
~ Z
'Q
J _ So
~
_ ~ I (I.
{ 93) ~ N c2) ° i
~
5
a ~'
(23)
t9. es
(2d) ,1
:9 9T
3
(25)
' Id. 9 ~
(26) ~
i:d. 9~
(27) ~
>s. e:
5
(28)
>y, o ;
(29) f
„a -~
7 d
(130)
-- •18.'9 ___-
V
~ (131)
`'
~;9.'S _
~~
(' I) ~
~28.'S
(32)
!.~3.'TS
'1
r (33)
IT .41
24'
1 i'1~_
I
2J
i
(12)
i rn.~
y 22
~x~. r
21
(21)
127.3
( o)
1l7,
19
(19)
r.
(18)
127
17
(17)
27.
t6
(16)
127
1S
(t s
Q _ 14~
A 1 7
(13)
,~ 13
r 1
CITY OF RICNFiElO
t .41
.
`
a 1
1 ~.4
(6) ~
r
1 7. j$
1~ --
--
-
~
V 3
1
4
2 .9S
I
d
(?)
~
12~.1a
(8)
F 27.
(9) '~'
v3
1~ 8 ~
1
- t 7,1$ -
~ ~10)
~
-- 9
----------
----
---
/ ~
I
v _
IC
iii S
It
PQC?a
~T~' ,~ i
(lZ) t
!t ~ '~
17
- Y\ ,
N89°55`12"E
~'' 7. 4 0
= SLOT 1 \~
- ~~NO°06'23"W
4.02
EAST LINE Sw~~4 ==__SE'~4 ----~
- . --t-
- =__ ~
........~. .,..,, r .. .......... .... _-
..........
.... r. _,_ _ ................ ........... .,..........,,,......... -_ ........_...........,..,........,, ,.....,,....,.......... .
.. .,, .... , , . ~ ..N 6' 23
~_...... OI~~LOT E - 75. oo - o
,- , r -,_ =_- w i T4 44.74
6 6 s-_ ;- ~n .- ~
_ o == v ~.n
Fj, -_ ~ M ~~ Q'
~ 9t e- ° ~
i ~
r
,., ~ ,~E~_ ~ o SO°
-- N 0° 06 23 ,,,,.,
~.,~ --133.84 -Z >~ r _ z,'%'x16.1
-1- ~ ~ :::.:•<::;.:.;:::•:::•:,{•°•:::> ~:: gyp. ~ ' cv
~ ,ti
- N 0° 07 35 E 345.59 - ~' ~' \
~ ~ t~ 9 ~
... .... .
~ ''~ ~~ s C' ' ~
' rn O "~
> 1 7.510 ~ O _-_-'-
EMERSON AVE . S0. ~ \, " -~\ .............. ~o,,~~~~, ~,~~.., ...... ~ . 9 9,,. '
~, - - - - ~ D ,~ ~ c, %= - C
9
•7i:.
i:~. __
I
D
5 -
4 -
:..:.,:.
i
.9
t
D
~ ~
5
~i
's
t
t
~ , P
I
o• G
O
t
7
iJ o .
O•
lr 1
o ~..~~,.~.~,,,: ,~. ••.~ ~ A, p ~~, ~ 3 0 FOOT SLOP E
~+ ,9 ~ S3 ~~ / ~ CNT PER
.o s ,~ ~
o -
DO
~ ~ C.
N .
J+ o s ~ y / 0 607259:
~ r
9a ~ ~. ~ pN / ~ ~
L: ~C'~ Qp ~~S / gyp. ~,~ , /V~ ~,5, i
. 6 F, ~ ~ to w
O ,~ Pv p i
1 p v v ~~~, ~ i ~ ~ ~ ~ ~ N2 ~ °
9 ~ 0 .,
1 ..... ~ ..............................................,.Y...,~~.~ \
...... O
~ .................................. ..... .~..~,.?..,..,............F
9 \.~ ........................ ~ ~ ...,.. ,,,,.,. ,,....
43 ~ ~ ~ / ~
t~
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 53
Agenda September 18, 1995
Issue Statement:
Approval of a right of entry agreement and major points of a development agreement;
TOLD Development Co.
Background:
On May 15 the HRA, City Council and Planning Commission met to hear Ralph
Robinson, President of TOLD Development Co., present a concept for developing
Meridian Center on the Cloverleaf site. Meridian Center would consist of. a seven story
first phase office building and an 11 story second phase office building with related
parking. Staff was authorized to negotiate a development agreement for subsequent
presentation to the HRA.
Attached to this letter is a memorandum prepared by John .Dean of Kennedy & Graven.
The memorandum contains the major points which would be contained in an
agreement. Mr. Dean will review and discuss the memorandum at the September 18,
1995 HRA meeting.
Also attached is a right of entry agreement. The right of entry if approved, would
authorize TOLD and its representatives to enter onto the property to undertake
environmental evaluations.
Recommended Motion:
1. Discuss and approve the major points which would form the basis of a contract
between the HRA and TOLD Development Co. '
2. Approve the right of entry agreement.
Basis of Recommendation:
1. The HRA authorized staff to negotiate an agreement with TOLD.
2. The proposed major points are consistent with previous development contracts.
3. The HRA, City Council and Planning Commission responded favorably to the
concept presentation in May.
4. A neighborhood information meeting sponsored by TOLD brought a generally
favorable response.
5. The proposed office development is generally consistent with the vision
formulated by the HRA for this site.
6. The right of entry is necessary for TOLD to perform its "due diligence".
7. The right of entry adequately protects the HRA while providing TOLD with the site
access it requires.
Alternative Recommendation:
1. Reject the two proposals
2. Modify either/both proposals.
Discussion/Decision Mode:
Mr. Robinson is eager to proceed with the project. These two actions are necessary for
the project to proceed. With the requested approval of the primary points of an
agreement it may be possible to return to the HRA in October with the completed
document. If the agreement is completed by early October, Mr. Robinson has
requested that the HRA consider a special meeting early in the month.
Respectfully submitted,
Ja .Prosser
Exe ive Director
JDP:cak
RIGHT OF ENTRY AGREEMENT
FOR ENVIRONMENTAL INVESTIGATION
THIS AGREEMENT, made on this day of 1995 by and
between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY
I. R E C I T A L S
1.01. HRA is the fee simple owner of the real estate,
which is described on Exhibit A attached hereto and incorporated
herein ("Property").
1.02. HRA is desirous of selling all or part of the
Property for redevelopment; and TOLD is interested in acquiring all
or portions of the Property.
1.03. HRA has previously obtained a Phase I Environmental
Assessment Report covering most of the Property. TOLD now wishes
HRA will not be granting (a) any permanent interest in the Property
to TOLD, or (b) exclusive use or possession of the Property to
TOLD.
II. AGREEMENT
NOW, THEREFORE, in consideration of the premises and their
mutual promises, the parties hereto hereby agree as follows:
JBD93801 1
RC125-66
2.01. Right of Entry. Effective upon the date hereof, HRA
hereby grants to TOLD, its agents, employees, contractors and.
invitees the right to enter upon the Property, for the purpose of
making surveys, inspections, appraisals, investigations, and
testing relative to the environmental condition of the Property.
2.02. Consideration. In consideration for such right of
entry, TOLD agrees to:
(a) Notify HRA of the date and time when work by TOLD on
the Property will commence under this Agreement at least five
(5) business days prior to doing any work on the Property in
order to permit HRA employees or consultants retained by HRA
to be present during the time any work is being done by TOLD
or its consultants;
(b) Provide a copy of all test results and reports
prepared by its employees or consultants evaluating the
conditions present on the Property to HRA, within five (5)
days, or as soon thereafter as reasonably possible, following
completion thereof.
(c) Dispose of all solid waste generated during the
course of TOLD's sampling activities aril otl~r work on the
Property in accordance with applicable federal, state and
local laws, rules and regulations.
(d) Assume responsibility for performing such a remedial
program in response to any release /~ of pollutants,
contaminants or hazardous substances present on the Property
if such conditions have resulted sol.ely,','from a release b€
,d~~,~< ~t~~~~~; on the Property caused by TOLD 4~` >its
JHD93801
RC125-66 2
agents carrying out activities under this Agreement and if and
activities permitted under this Agreement, by days from
the date of this Agreement unless such period is extended in
writing by HRA;
(f) Use the Property only for the purposes described
herein and not park or store any equipment on the Property,
except during the limited periods of time when work on the
Property which is contemplated by this Agreement is actually
in progress;
(g) Do no unnecessary damage to the Property and restore
the Property to substantially the same condition as the
condition in which it was found by TOLD at the time of TOLD's
entry upon the Property pursuant to this Agreement;
(h) Hold HRA harmless from and indemnify it for any and
all claims, damages, judgments or obligations, including the
cost of defense of suit, arising out of damage to property or
arising out of injury to anyone incurred or alleged to have
been incurred in connection with or as a result of any work
done pursuant to this Right of Entry Agreement;
(i) TOLD or its contractors or invitees which enter the
JBD93801
RC125-66 3
Property pursuant to this Agreement shall carry insurance
during the time any work is done on the Property in accordance
with the following minimum requirements, showing HRA as Owner:
1. Workers' Compensation Insurance with limits as
provided by statute, with all necessary statutory
elections to provide coverage for and/or claims made by
any person doing work on the Property pursuant to this
Right of Er_try;
2. Employer's Liability Insurance (often included
as Coverage "b" in the Workers' Compensation policy) with
limits of $100,000.
3. Comprehensive Auto (and Truck) Liability
Insurance with minimum combined single limits of
$1,000,000 per occurrence.
4. Comprehensive General Liability Insurance
(including coverage for contractual liability, products,
and completed operations liability, liabilities arising
out of explosion, collapse or underground related
incidents) with minimum combined single limits of
$1,000,000 per occurrence. In addition, the
Comprehensive General Liability policy shall, !!!'~1`f~'?
':';'~!xinclude Owner and Tenant as additional
insureds with respect to work done on the Property/ .
(j) If TOLD removes a sample or portion of the Property
for investigation, monitoring, or testing, or obtains any data
or issues any report, it shall give HRA an equal amount of the
sample or portion and a copy of any data or report, and must
JBD93801 4
RC125-66
permit the HRA to perform independent investigation,
monitoring, or testing of the sample or portion:; ~o 'C~~ e~~
(1) Neither TOLD, nor its employees, contractors nor
invitees shall cause, suffer or permit their activities on the
Property to interfere with the current use of the Property and
the activities of other parties who are currently on the
Property with the permission of the HRA. The HRA represents
that the only two other parties who are engaged in activities
on the Property with the HRA's consent are Shafer Contracting
Company, Inc., and Naegele Outdoor Advertising Company, Inc.
2.03. Governing Law. This Agreement shall be interpreted
in accordance with and governed by the laws of the State of
Minnesota.
2.04. Notices and Demands. All notices, demands or other
communications under this Agreement shall be effective only if made
in writing and shall be sufficiently given and deemed given when
delivered personally or mailed by certified mail, return receipt
requested, postage prepaid, properly addressed as follows:
(1) If to HRA: Richrield i~RA
6700 Portland Avenue South
Richfield, MN 55423-2599
Attn: Bruce Palmborg
(2) If to TOLD: TOLD Development
/~ 6 9 0 0 T~e~l~wo+c'~t
Suite 100
Maple Grove, MN
Attention: "~homa
__ _.
or to such other persons as the parties may
Company
<'Road
55369
from time to time
designate in writing and forward to the other persons entitled to
receive notice as provided in this section.
JBD93801
RC125-66 5
2.05. Amendment. This Agreement may be amended by the
parties hereto only by written instrument executed with the same
procedures and formality as were followed in the execution of this
Agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to
be duly executed in their names and on their behalves on or as of
the above date.
HOUSING AND REDE~~ELOPMENT
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD
By
Its
By
Its
~:5~1~l~'E :;I3E'V~~C~~1~E~' 1, . L . ~:.<
By
Its
JBD93801
RC125-66 6
EXHIBIT A
LEGAL DESCRIPTION FOR RIGHT OF ENTRY AGREEMENT
[To be supplied before execution]
JBD93801
RC125-66 A- ~-
I~ENNEAY ~ GRAVEN
CHARTER$b
,,,~,„~y, et ta«+~ a70 ~~ilxhnrg f.'.nnt.~r, 11dlnneapDliA. Minnc~ta 55442
{6i2j 337.9300
R, ~. A1.80t'
TQhW H. $A3?Y Facfiimite {5~2) 337.9310
~t~rnx J. BvatrL
tIP1$~ DbA?~
M1F•1„~. GAFF,xl1WR.1G
RRiNE A. HEINB
Y1D J. IiExxSDY
WRTTER'S aIliFii~T tatAl.,
ARLES G I.EFEVERE
tW M. rgFEvR~, at<.
HERT a, t,l;vnALL M E M O R A N D U M
BERT C. LoNti
'l!r'O: H1~.A Commissioners
FROM: John B . Dean
DATE: September 14, 199a
RE: Status of Ia+~velc~pment of Cloverleaf Site
JAMES M. $xROMMEx
Jaalss J. T1t1oMbOt~, dR.
LARRY M. ~'$AT1iEIDV1
BOMxiE L. Wal,xixS
JOS'X. YAxG
DAVID L. GRAVEN (XD~9.1S191)
dF COUxSSL
BRUCE M. i3A7C'cRRaOx
RUSERT C. GARLSON
ItosERTIti DhVIddON
OV$IrLINGT0IY t~. t.AW
T. JAY .'iALh1Y'~
For sorx~e time staff has been zzaeeti.ng with representatives of Tc~L~
Developnnent Company to wank aut the terms which would be incorporated into a
contract for private redevelopment covering the Cloverieaf propsrty.
'those discussions have now reached the point where we can report to you axz
a series of understandings, which, zf acceptable to the HRA, can form the basis for
the preparation of s. cintract far private redevelopment.
The ilevelvpment
Although the enact details of the .development wiIl be subject to modification
as the process continues, the development generally will caneist of two phases each
of which will caneist of an office building and a parking deck.
'The Phase I will caneist of a I40,OOQ squaz~e foot building. Six stories high
and deck and grade parking for 5 ],2 vehicles . Fhase II will consist of a 185 ? 000
square foot building eight stories high and deck and grade parking far 88$ vehicles .
Prela,Ildnary market value projections suggest a marT£et value for Phase S of
apprcxfmately $13, 000, OQQ anal $2~4, 000, 000 for Phase II .
TOLD will be present at the HRA meeting of ~eptembcr 18, to update you on
these matters .
Resxaonsibilities of the Parties
The prcyposal would have the HRA assuming a somewhat greater initial role fn
the preparation of the site than in the other ILN project. The HR.Ats responsibilities
would include the following:
1. Obtaining all permits and approvals required to fill a portion of the
wetland .
18DB4234
RC2Z$-56
S ' d N3(td2~~ '8 13NN3~1 ~~ : ~ ti % ~ ~ ~ d3S
H1~,A Commissioners
September 14, 1995.
Fage 2
~. Irxcavating un€.table soil$ axed filla:xig the portions of the wetland
suthori~ed by p~axnraats-
3, Relocating telel:-hane lines which would interfere with the planned
location of impr.+;~vsments -
4 , Removing, to tl:.e e:ttent necessary, any abandoned utility lines .
5. Providing a signalized entry to the development (if deemed approprxo.te
by the City) .
B. Subdividixz~ the property into Phase 1 and :~haso Ii Parcels.
7. Remediating an~~ cantaminatiQn found on the property prior to Closing.
8. Removing all of the construction product currently an the site,
9. Removing the outdoor advertising display.
Analysis
As with CSM, tax increment generated by tk~e development will be the ultimate
source of payment of the cast;a related to these responsibilities. Unlike CSM, the tax
incxexxlent will go to the HA..A to pay the cost of those items rather than to the
developer. Also, unlike CSIVl, the initial costs Twill need to be paid from a source
other thane tax increment. ::,xcept for the wetland. ~~~ork, .the expenses can all be
initially funded through the land sale proceeds received from TaLp at Glosxxzg.
With respect to the we tlfinds work, tb,e contract will provide fQr termination
if the HRA is unable to ebtai~a a permit to fill an acceptable area; or if the cost of fill
renders the project economi•:a1ly ixtfeasibie or creates an unacceptable unsecured
risk far the HRA .
Reimbursement of all ~:~f these casts would receive preferential treatment in
terms of the tax increxxzent .
Timing
'~k'ie agreement would require that a host of preliminary issues be resolved
very sawn, they would inelu~.ie:
x . Wetlands issues
2. TraffxG axed sig~~alization
3. Environmental review and follow-up responsibility
4. Design and layout
5 . Outlots .
Jsasaaaa
~cias-a6
~ 30tfd 0LE6GEEZL9°QI id3l1tt2i0 '8 1Sa3NfI3}1'W02i3 8S°.EL 56-fiL-d3S
kIRA Commissioners
S+aptember 34, 199a
Page 3
Failure to resolve thes$ mattex$ would be the basis far termination of the
agreement .
Upon satisfaction of these issues, the parties would proceed to resolve the
remaining pxe~ciasing issues . Those. would include
1. Title
2. Wetland permits
3. Zoxa3ng
4 , Flating
5 . Reciprocal parkl,ng agreements
8. Financing
7. Design
Qnce these items were satisfied, closing en bath parcels would occur. We
anticipate that the closing could be next spriz~g. At Closing; the developer would pay
the i~P.A $l. ,100, 000 for the land .
The closing is to occur within Z8 months after the date of the Agreement. If
the closing is delayed due tv inability of the HRA to pex£orm, the closing .can be
extended at TOLDrs option long enough to allow the IiRA to perform, but not longer
than an additional six months . After that six month period, either party may
terminate .
Tt7LU will s.lso have certain per~clasing obligations. They will include {with
respect to Phase I) obtai.~,ng construction financing (with ail contingencies to
funding removed), anti having construction contracts xr~ piece. If those
contingencies have not been satisfied within the 18 month period; the HR.,A {assuming
it is not delinquent) may either extend or terminate. Construction of the Phase I
iVtinimum Irrspravements is to begin within one month after closing. We will need to
defS.ne what constitutes the commencement of construction.
Construction of the Phase II Minimum Improvements must commence by these
years fracn the date of the Agreement or one yeax after completion o£ the Phase I
Minimum Improvements whiehevax is later. That deadline may be extended upon 90
day written applica#aon by TOLD. Each extension will be good far a period of one
year. Two separate basis axe available far extensions:
A. Setwaan the date of the Agreement and the date of the extension
x+equest a material adverse change has occurred in the market which
renders construction of the Phase TI Minimum Improvements•
economically infeasible. Providing evidence supporting such a change
fs TaLD's responsibility. The conclusion whether the sv~idence
reasonably supports such a conclusion will be at the discretion of the
HR,A. E'sctox~s to be considered viii include;
i) interest t-ate for: oanstruction financing (increase or decrease vs .
phase I) ;
ssn9aaaa
RC123-66
tr ' d N3Atf~i9 '8 13NN3~1 Sg : ~ ~ S6 ~ tr T d3S
t
HRA Cou3mi~~ivx~ers
.September 14, 1J8S
Page 4
ii} vacancy rates and rents far si~xni.lar property in the same market
area ; and
iii} availability of financing and the conditions imposed an such
financing,
B , Whether or not the conditions in paragraph A exist, TOLD may also
request and obtain one year extensions by paying, at the .time of
application, a nonrefundable extension fee of $aU, QQO.
(It should also be noted that there is also a $5f1, 000 charge for each
paragraph A extension. Iiawever, that charge will be made on1Y in the
case of a reverter of the Phase II property, }
Paragraph A extez~szc~ns will be available as a matter of night {upon
proof of economic infeasibil#ty) for the first three extension years.
Thereafter, they wfil be available only at the HRA's consent.
Paragraph B extensions will be awaila.ble as a matter of right {upon
application axed payment) for the first twn extension years. Thereafter
they will be available only at the HR.A's consent . ,
Termination and BuYbaalr
At any time after the expiration of the initial period {if no extension is in
place}, ar upon. the expiration of an extension period {if no extension is in place)
either party may terminate .the Agreement as it relates to Phase Il . Upon such
termination the fallowing will occur:
a) Told quit claims Phase ii to the ~1RA.
b} The l:II~,A releases the allocated purchase pxi.ce ($660,pOQ} which has
been held in escrow by the title company . The release includes any
interest which tlxe escrow has earned . The amount released to TOLD
will be reduced by the amount of any Paragraph A extension charges .
c} The parties execute and deliver to oxze another cross easements and
related grants which deal with the interface of the two parcels,
Assignment
The Agreement will mare ft clear that TOLD can assign its interest under the
contract to a third party which is reasonably acceptable to the ~12,A. The assignee
and TOLA will be required to sign an appropriate instrument which, transfers TOLD f s
rights- and responsibilities uxzder the Agreement to the third party . The Agreement
will need to contain provisions which insulate each phase Pram a default in-the other
phase following transfer
,7Sp94234
RC125-68
S'd N3AaJ9 '8 13NN3~1 9@:titi S6~ b~ d3S
kiRA Commissioners
3ept~mber 14, 1995
Page 5
Assistance to TOLD
A~sistanoe to 'T'OLD will take two forms;
1.. Site preparatio~a as described above .
2. Pay-as-you~go economic assistance to reimburse it for the costs of
deve~.opment . Such reimbursement will be only from tax increment generated and wi11
never exceed pgyment for qualifying costs and interest. Payment will also be subject
to the senior right of the HRA to reimbu~rse~nent. There would be two notes, one for
each Phase. The actual amouza,ts of th+~ Hates is still being fvr~mulated.
We are pleased with the progress of our discussions with TQLA and believe
that the concept outlined above is workable .
Zf the HRA is in s.greement, we would recommend that the HRA give
preliminary approval to the concept _s.s outlined above and direct that a contract for
private redevelopment be prepared for consideration by the .HRA . If you have
concerns or problems with the concept as pz°esented, we wilX be happy tv continue
Qur preliminary discussions with TOLD based upon whatever guidance you suggest.
Respectfully ours,
J'o , Aean
JB s
cc: Jim Prosser
Bruce Palmborg
Ralph Robinson
~u9azaa
RC125.65
9 ~ d N3htld~ '8 13NN3~1 90 : ti Z S6 r ~ ti d3S