05-16-94 agendaCITY OF RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, MAY 16, 1994
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF (1) SPECIAL HRA MEETING HELD CONCURRENTLY
WITH CITY COUNCIL MEETING OF APRIL 11, 1994 AND (2) HRA MEETING OF
APRIL 18, 1994
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE
AGENDA
2. CONSIDERATION OF STATUS REPORT ON COMMUNITY APARTMENT PROGRAM
HRA LETTER NO. 40
3. CONSIDERATION OF RESOLUTION AUTHORIZING ISSUANCE OF COMPLETION
CERTIFICATES TO TWIN CITIES HABITAT FOR HUMANITY INC. FOR 6225
14TH AND 6310 15TH AVENUES
HRA LETTER NO. 41
4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF RICHFIELD REDISCOVERED PROPERTY AT 6926 CHICAGO AVENUE
TO QUAM, SUMNICHT AND ASSOCIATES IN ACCORDANCE WITH
DEVELOPMENT AGREEMENT (CONTINUED FROM APRIL 18, 1994)
HRA LETTER NO. 42
5. CONSIDERATION OF ALTERNATIVES FOR DEVELOPMENT OF RICHFIELD
REDISCOVERED PROPERTY AT 6625 STEVENS AVENUE
HRA LETTER NO. 43
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. 43
Agenda May 16, 1994
Issue Statement:
Consideration of alternatives for the development of the
Richfield Rediscovered property at 6625 Stevens Avenue.
Background:
The HRA authorized the purchase of 6625 Stevens Avenue on
December 20, 1993, for the Richfield Rediscovered Program. The
site was marketed in search of a builder/buyer team upon which to
sell the site after HRA acquisition. The HRA acquired the site
on February 15, 1994. At about the same time, a realtor was in
contact with staff and inquired about the availability of all
sites. The Stevens Avenue site was available. The realtor,
acting on behalf of the developer "Home Associates," submitted a
reservation March 1, 1994. The site was reserved with a $500 fee
and by providing an executed "Participation Agreement." When
staff receives a reservation, a period of time follows for
approximately 60 days while the developer prepares plans and
finalizes a sale to an end buyer. Then negotiations for a
development agreement with the HRA can begin. During this time
period, staff must also work with the developer to determine
their experience and financial capability.
• Staff met with Home Associates for the first time on April 28,
1994. At that meeting the developer indicated the intended use
to be for an unlicensed adult care facility for four adults. It
was pointed out that the described use might require a
conditional use permit in a residential area. It was also noted
that this wasn't a typical type of Richfield Rediscovered
project.
At a follow-up meeting with the developer on May 3, 1994, the
developer clarified the proposed use to be for licensed adult
foster care. If so, a conditional use permit is not required to
house up to six adults. According to state statute, a city may
not impose restrictions on this use. However, staff objected to
further considering the sale to Home Associates because the
guidelines for the HRH's Richfield Rediscovered program require
owner occupied housing.
The respective positions of the parties are provided in more
detail in the attachments. Letters between the parties are dated
May 3 (Nordquist to Home Associates), May 6 (HRA Counsel, Ron
Batty to Attorney General), May 10 (from Attorney General's
office) and May 12 (Batty to Attorney General). Home Associates
is represented by the Minnesota Department of Human Services
(DHS) and the Attorney General's office. Ron Batty will attend
the HRA meeting to explain the positions further. The developer
has been invited to attend the HRA meeting and present
information about the project.
Staff continues to work with the developer through the Attorney
General's office. As this letter was prepared, staff provided a
list of privately held vacant lots and substandard home
opportunities. The developer is evaluating their options.
The HRA has three options to consider:
1. Authorize a sale to Home Associates for the $45,000 fair
market value of the present improved property; removing the
site from the Richfield Rediscovered Program and recovering
all acquisition expenditures except administrative costs.
2. Do not negotiate a development agreement to sell on the
.basis that the intended use of the property will not provide
owner occupied housing in accordance with the HRA's
Richfield Rediscovered Program Guidelines.
3. Authorize a sale to Home Associates for the $27,500 vacant
lot price; waiving the owner occupancy requirement of the
Richfield Rediscovered Guidelines. Taking the cost of
demolition into account, the HRA will be providing a $22,500
subsidy for the development of this facility.
Recommended Motion:
Option one; sell to Home Associates for $45,000 and remove 6625
Stevens from the Richfield Rediscovered program.
Basis of Recommendation:
1. The proposed use of the property is not consistent with the
HRA's Richfield Rediscovered Program Guidelines.
2. Legal Counsel has reviewed the matter and is confidant that
the proposed HRA recommendation is a reasonable position
given state statute and HRA program objectives. Staff
actions have also been reasonable and no basis can be found
for the willful discrimination that the Assistant Attorney
General has charged.
3. The HRA has emphasized the importance of providing higher
value owner occupied housing opportunities as a way of
maintaining and improving the City.
4. No agreements have been negotiated or entered into which
define the conditions of the sale of the property to the
developer. No contracts presently exist.
5. This is an important policy matter for the HRA to consider.
By the time Home Associates had expressed interest in
available Richfield lots, the Stevens site was the only one
of five still available and uncommitted. Slightly different
timing could have resulted in all five Richfield Rediscovered
properties being committed to an adult foster care program
rather then the HRA's redevelopment program.
Alternative Recommendation:
Do not sell the property to Home Associates. Modify Richfield
Rediscovered Program Guidelines.
Discussion/Decision Mode:
An Assistant Attorney General has demanded the Richfield HRA take
immediate action to sell the Stevens site to the developer.
However, late on May 12 they also expressed an interest, with HRD
staff assistance, in finding alternative sites which would allow
the developer to achieve its objectives at a lessor cost than the
Stevens Avenue site. As a practical matter, the HRA does not
have sufficient time to schedule and conduct a public hearing to
sell the site to the developer prior to June 20, 1994. An
analysis of builder and financing capability and the design
review are required prior to a public hearing.
Respe u y submitted,
James D Prosser
Execu iv Director
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May 12, 1994
Us. Theresa M. Couri
Assistant Attorney General
Office of the Attorney General
Suits 200, 820 Lafayette Road
St. Paul, MN 38158
RE: Richfield Rediscovered Program
Dear Ms. Couri :
• This is in response to your letter dated May 10, 1994 regarding the captioned matter.
The letter deals extensively with your belief that it is illegal to refuse to sell the
property at 8825 Stevens Avenue to America's Rome Team, Inc. /Home Associates
(Developer). I continue to disagree with your contention that the Richfield HRA
must sell the lot to the Developer under the Richfield Rediscovered program. I was
also surprised by the fact that in 2-1 / 2 pages there was no acknowledgement that the
HRA may be willing to sell the lot to the Developer outside of the program. I stated
in both my telephone conversation with Mr. Paul Landskroener on May Sth and in my
letter of the following day that the staff was willing to recommend selling the
property to the Developer at market rate.
The HRA has been and remains prepared to sell properties under the Richfield
Rediscovered program to any buyer willing to comply with program gWdelines.
Owner occupancy has been a key requirement since the program was initiated four
years ago. The HRA has made no exceptions to that policy since that time, despite
several requests.
Although almost all the attention to date has centered on owner occupancy, the
program has a number of other requirements. For example, participants must sign
a development agreement which specifies in detail the terms of the sale, including the
price of the band. Participants must also gain approval of the architecture and
design of the proposed structure. This goes well beyond the need to comply with
building and other standard codes. The review involves interior house features,
exterior aesthetics and the structure's architecture relationship with neighboring
properties.
Since none of the above issues was reached in the brief contact between the
Developer and Mr. Nordquist of the HRA, I do not know whether there are other
=112MIla
80196-t1
Us. Theresa Couri
May 12, 1994
Page 2
program requirements which will present a problem for the Developer. If so, do you
believe the Developer must comply with theta or is there grounds for another
exemption? It is difficult to understand how the Developer can be allowed to pick
and choose among program requirements. On the other hand, exemptions would add
up very quickly to a sort of special status enjoyed by the Developer. You have cited
me to no provision in state law to support such a status, nor am I aware of any. I
believe the purpose of the statutory provisions. we have discussed is to protect
licensed residential facilities from discrimination, but not to confer upon them special
privileges not available to others.
I have a sense that the Developer believes it is experiencing what might be
characterized as typical suburban opposition to residential facilities and that
perhaps your office has drawn a similar conclusion. There is nothing about this case
or Richfield which suggests that is true. Richfield has no history of opposition or
harassment of licensed residential facilities. Staff is aware of numerous such
facilities in the city and there are probably many more which have never come to the
attention of the city. In fact, this very developer has purchased and is pursuing
the location of a similar facility at 6637 Fourth Avenue in Richfield outside of the
Richfield Rediscovered program. The Developer was referred to the owner of the
Fourth Avenue property by Mr. Nordquist.
I continue to see this matter as one in which the HRA is acting in a completely .even-
handed manner. The HRA has been and remains prepared to allow any entity who
will agree to comply with program guidelines to participate in the Richfield
Rediscovered program. All those who are not willing have been turned down.
Suggesting that the HRA must make an exception in this instance for a buyer who
refuses to be bound by program requirements is to say that this Developer enjoys
an extraordinary status which I believe has no basis in law.
Ultimately, only the commissioners of the HRA may make decisions and spear for that
entity. My opinion as legal counsel is that the HRA is not compelled to allow the
Developer to participate in the Richfield Rediscovered program. Your letter of May
10 has not changed my opinion. Mr. Nordquist has expressed staffs' policy
recommendation against making an exception for the Developer, but suggesting that
the HRA sell the property at market value. This matter will be discussed by the
HRA at its May 16, 1994 meeting. I suggest that the Developer attend that meeting
and be prepared to make a presentation to the HRA.
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Attorney
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Dear Mr. Aatgr.
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The above-:efo renced matter has been transferred to sae by Mr. Landitmer. 1
would appreciate it if you forward any communications to me from now on. Thank you IN
your letter dated May 6, 1994 which sets forth the Richfield K RA's position regarding the
sale of the property at 6625 Stevens ("Stevens property'), Richfield Upon review of your
letter, and, the relevant statutes, the Minnesota De artmaat of Human Services ("DR$)
continues to di"Sree with your position. The follow is a s=ummry of VHS' potitiom
When DRS was creating its plan to downsize lon# term we facilities and purchase
residential properties located is neighborhoods, the impetus of this plan was to
deisud tution-Mu individuals in need of special cars pad to permit them to live in the least
restrictive environment that most resembles normal family life. The process of choosing
sites for this purpose is cumbersome sine it must involve in put from medical stag sue
managers, farWly members and the residents themselves. The site must be located close
enough to services to meet the residents' special needs, yet still have the characteristics of a
norms I neighborhood Ill rigorous site evaluation process was Implemented in
choosing to purchase the Stevens property. Considerable time and energy has been
devoted to aoquiring that site.
DHS objects to the validity of the land tae restrictions Richfield has attempted to
impose In an apparent effort. to block the sate of the Stevens property to DHS. DHS
anticipate=d that such restrictions would be imposed to limit the development of
neighborhood homes for devslopmentaliy+ disabled individuals. Therefore, I3HS proposed
legi'sladon to protect such development from the exact type of opposition it is facing against
Richhold. Mitrt. Star, S 245A.11 states as follows:
Subdivision 1. Policy matmem it is the policy of the state that persons
sbiall not be excluded by municipal zo ordinances or other land use
reSulatiors from the benefits of normal nizeentiol surroundb4s.
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Ronald H. Betty
May 109 1994
• Page 2
5ubd. 2. Permitted s1We fa * resident lal use,. Residential programs with
a licensed capacity of six or fewer persons shall be considered a permitted
side-family residential use of property fox thepurposes Hof xonning and
other land use regulations. Programs otherwise allowed under this
subdivision shall not be prohibited by operation of restrictive covenants Or
regardless of when entered into, which cannot be met
because of the nature of the licensed Program, indufflus ngbt=
(emphasis added).
You indicated in your letter that because the Richfield HM is not authorized to pass
zoning ordinances or other lead use regulations, the foregoing statute does not apply to the
"owncar occupied" requirement of development. Upon reviewing the HRA statute, Minn.
Stat. S 469.001 at. seq., f agree with your analysis that HRAs are not authottsed to pass
zoning ordinances or other land use regulations. Minn. Stat. 6 469.012 sets forth the
HRA's powers and duties which do not include the power to pass zoning or other land use
regulations. In fact 1i= Stat. 1469.012 subd. 4 states that "all projects shall be subject to
the p1,11 using, zoning, sanitary, and building laws, ordinances, and regulations applicable to
the to aliry in which the project is situated. Therefore, any land use regulations that affect
the development can only be passed by the municipality in which the development is
located.
The fact remains, however, that Richfield is neq that the property be "owner
rragsu led." Such a limitation is a traditional land use to on. The "owner occupied"
Fatioa is so common and traditional, that Minn.. Stat. V245A.11 which protects the
development of six person residential programs specii'leally lists "owner occupamW as the
type of land use restriction that ca=ot be imposed to limit their development.
Your analysis that, because the ERA cannot pass land use or zoning regulations, then
245A does not apply can only lead to two possible conclusions. First, either the HM has
passed tb.- "owner occrupancy" regulation which is invalid because HRAs do not have the
power to ass such regulations; or alternatively, the restriction was imposed by the
municipalit of Richfield, in which case, Minn. Stet. 5245A.11 would invalidate the
operation of the "owner ompied" regtilation. Therefore, the regulation is either invalidly
passed, or overridden by Minn. Stat.11245A.11. In either case, it cannot operate to block
the sale and use of the Stevens property by DHS for a six person residential eility.
Finally, I draw your attention to the Fair Housing Act, Mira. Stat. 0 363.03 sabd. 2,
.' 11
and 2a. which prohibits unfair, discriminatory bousinS praeticas. Specifict vv, those
subdivisions prohibit a property owner from re to sell to any person, or M ?S to
snake reasonable accommodations in rules, policies, or practices based upon severs
protected classes including disability or familial status. Based upon DHS'dea th Richfield personnel, it has become apparent that Mchfsld is not dde and
that their actions may have discrimiuatory motives, and effect.
DHS' developer has encountered much opposition in both securing Information
about lots' and in negotiating the sale. For example, when DHS developer,
£00 900'ON N3(1U69 T SHW70H OZ:£I 176/TT/SO
Ronald H. Batty
` May 3 1994
Paul Thomppssoon called the HRA indicating that be was seeking a bome for four adults, he
recereed information that that it did not have any lots awdlable. However, when he asked
an associate to call back and she identified herself as a developer with a silt client"
*asking a new home, she was received with great enthusiasm and reeei a faxed list of
available lots that acme day.
Additionally, DHS' developer met with objection after objection regarding the
development of the home. After an initial set of objections was raised by the HRA and
resolved by DHS, the HRA would raise new o0jections regarding fact= that had been
available from the start of negotiations. This Mpg of dealing has served to delay the
development of the Site. Finally, tba attitude of tbe tEltA became even more apparent at a
meeting where Bruce Nordquist, the Housing Supervisor of the Richfield HRA told DHS'
m " The foregoing course of
developer that the 11RA lag w" to Chbld mots i?
dealing indicates to DHS that the HRA is opposing th4 sae of the Stevens
property to DHS for story reasons.
In sunny the "owner oompisd" llmitatico is clearly a land use regulation that Cannot be
applied to DHS' six person residential home. Additionally, DHS believes that there is
ample miden.ce to indicate that the Richfield HRA has 0000s4d this sale to DHS for
discrimir?atory Masons. Toorefors, DHS demands that the RieMeld HRA immediately
take action to sell the Stevens it to it for the price y agreed upon. H tbb
Richfield HRA refuses to comply wii this demand, DHS?foroed to take er
legal acdon. a M. COURT
Assistant Attorney 04316111
(612) 296.6726
cc: Mike Tessnesr, DHS
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1700 900'ON NBNl 69 B 59W1OH Te:ZT 176/TT/90
HOLMES & GRAVEN
CHARTERED
Attomys at LAW
170 Pillsbury Center. Minneapol4, Minnesota 55102
ROBERT C. LONG
OBERT A. ALSOF (612) 337-9300 LAURA K. MOLLLT
NALD H. BATTY
IWO BARBARA PO
EFHEN J. BUSUL Faaimlle (612) 337-9310 MEN
LAMES M. S TROMMEN
JOHN B. DEAN
DOBBINB
MARY
MARY G.
B
INS JAMES J. THOMSON, JR.
STEVANEE N.
GALEY LARRY M. WERTHEIM
CORRDtE A. HEINE BONNIE
L RIxs
JAMES S. HOLMES WRITER'S DMECT DIAL GARY P. WINTER
DAVID J. KENNEDY
RSON (612) 337-9262
R
L DAVID L GRAVEN (1929-1991)
-
JOHN
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COUNSEL
WELLINGTON H. LAW
H.
LA ROBERT C. CARLSON
RE
L.
CHARLES
1994
May 6
LZFE
. ROBERT L DAVIDSON
,
JR.
L
JOHN
T. JAY SALMEN
T
ROBERT I. L[NDALL
Mr. Paul Landskroener
Assistant Attorney General
Minnesota Attorney General's Office
520 Lafayette Road, Suite 200
St. Paul, MN 55155
RE: Richfield HRA Richfield Rediscovered Program
Dear Mr. Landskroener:
This letter is written to summarize the position of the Housing and Redevelopment
Authority in and for the City of Richfield (HRA) with regard to the application by
America's Home Team, Inc. /Home Associates (Developer) to purchase the property
at 6625 Stevens Avenue. The HRA staff has declined to sell the property to the
Developer because the property will not be owner occupied as required by the
conditions of the HRA's Richfield Rediscovered program. You have cited Minnesota
Statutes, 1245A.11 as requiring the HRA to sell the property to the Developer for
use by a licensed residential facility.
I do not believe that the statutory provision you have cited requires this conclusion.
The HRA's program is not a zoning or land use regulation nor is it a restrictive
covenant, which is a private land use regulation. Minnesota Statutes, 1462.357,
subd. 7 also contains a reference to zoning and other land use regulations. Land
use regulations, including zoning ordinances, are authorized by Minnesota Statutes,
1462.351 et seg. The statute specifically authorizes "municipalities" to enact zoning
and land use controls. Section 462.352, subd. 2 defines a municipality as a statutory
or home rule charter city or town. Significantly, other units of local government,
including school districts, HRAs and EDAs, are not included within the definition.
Thus, an HRA has no authority to enact a zoning ordinance or other land use
control.
The HRA operates under the authority of Minnesota Statutes, 1 469.001 through
469.047. In general, HRAs are authorized to enact programs and create projects
designed to combat the spread of blight and to provide housing opportunities.
Pursuant to that authority, the HRA created the Richfield Rediscovered program in
1990. The purpose of the program is to identify substandard single family houses
for removal and replacement by higher value housing. The program is designed to
accomplish two goals. By removing substandard or obsolete housing, the program
combats blight. By replacing that housing with larger units containing three or four
bedrooms, two baths, a two-car garage and other amenities, the HRA hopes to
• provide opportunities for "move-up" housing to the residents of Richfield.
RBB69777
RC125-11
Mr. Paul Landskroener
May 6, 1994
Page 2
As is the case in other cities with similar programs, the private housing market in
Richfield simply does not respond to such challenges. The cost of acquiring
substandard single family units, clearing the site and constructing a new dwelling
is prohibitive. Recognizing this fact, the HRA designed a program to subsidize such
redevelopment. Using only local monies, the HRA purchases a property for
something in the range of $45, 000 to $50, 000, spends an additional several thousand
to demolish the building and clear the site and sells the vacant property for $25,000
to $30, 000. A developer is required to build a replacement structure meeting certain
characteristics, including a specified minimum market value. All lots in the Richfield
Rediscovered program are in a tax increment financing district. The HRA intends
to recover its subsidy on each lot (the difference between its investment in the
property and the price at which it sells the lot) through the increased taxes paid by
the property over the next 25 years.
Since 1990, approximately 27 houses have been constructed under this program. All
have been owner occupied. I have included for your review a copy of the program
requirements entitled "Richfield Rediscovered Procedural Guidelines" This
document gives a complete description of the process of acquiring and disposing of
property as well as the criteria which must be met by program participants.
The restriction of program participants to owner-occupants is one which the HRA
feels is essential to accomplish its statutory mission. That regulation is not and
cannot be a zoning or other land use control because the HRA has no authority to
enact such provisions. The HRA, like all other property owners, is subject to the
land use regulations of the city.
More broadly, I believe the purpose of the language in both chapters 462 and 245 is
to protect licensed residential programs from discrimination in land use matters.
There is nothing in either section nor anywhere else in state law to suggest that
such programs should be exempt from other legitimate regulations.
Legal arguments aside, the HRA staff would be happy to explore the possiblity of
excluding the subject property from the Richfield Rediscovered program and selling
the lot directly to the Developer. Such a sale would, of course, have to be at fair
market value. In the case of 6625 Stevens, fair market value is in the range of
$45, 000. The Developer could then pursue whatever permits or approvals might be
necessary from the city to develop the facility just as the Developer is pursuing a
second lot in Richfield which was purchased outside of the program.
If the Developer is interested in this option, I suggest that they contact the HRA
staff immediately. The next HRA meeting is scheduled for Monday, May 16, 1994.
Staff reports are due about a week before the date of the HRA meeting. That gives
the parties a very short period of time in which to have staff formulate a
recommendation to the HRA to delete this property from the Richfield Rediscovered
program. I suggest the Developer contact Mr. Bruce Nordquist at 861-9777
immediately if they are interested in purchasing the lot outside of the program.
ince ly,
lRonald H. Batty
HRA Attorney
PM69777
RC125-41
J
t0
6700 Portland Avenue - Richfield, Minnesota 55423-2599
City Manager Mayor
James D. Prosser Martin Kirsch
May 3, 1994
Mr. Paul Thompson, Director of Development
Home Associates
4600 W. 77th Street, Suite 275
Minneapolis, MN 55435
CERTIFIED MAIL
Subject: Housing Development, 6625 Stevens Avenue
Dear Mr. Thompson:
Council
Don Priebe Michael Sandahl
Susan Rosenberg Russ Susag
• Enclosed is America's Home Team, Inc./Home Associates check 45014 for $500.00. This deposit
and the accompanying "participation agreement" form which was executed by you, was received
from your firm for the right to participate in redevelopment of the above referenced property in
accordance with the guidelines of the Richfield Housing and Redevelopment Authorities
"Richfield Rediscovered Program".
As indicated. in our meeting today, May 3, the proposed development does not meet program
guidelines. A copy of the guidelines approved in July, 1991, is enclosed. The "Housing Design
and Site Development Criteria", Section I a, page 8, states: "Each home shall be single-family,
owner occupied".
The meetings we had on April 28 and May 3, 1994 have helped to clarify the use of the site for a
developmentally disabled adult care facility. My initial contacts in February and March, 1994,
through your realtor representative, Jason Ginsbach, were not sufficiently complete. I interpreted
America's Home Team/Home Associates to be building several homes in the metropolitan area in
cooperation with the State of Minnesota. I inadvertently drew the conclusion that it was a home
ownership program in cooperation with the Minnesota Housing Finance Agency.
I apologize for any inconvenience this may have caused.
•
The Urban Hometown
Telephone (612) 861-9700
Fax 861=9749
An Equal Opportunity Employer
As indicated on May 3, 1994, I would be happy to assist in identifying alternative sites that are
not already part of the Richfield Rediscovered Program. These sites will probably have a
substandard home that requires clearance to provide a vacant lot opportunity. I would estimate
the acquisition cost to be $45,000 to $55,000. The actual cost would be determined by
negotiation between you and a willing seller. A list of potential sites is anticipated to be available
by the end of May, 1994. The actual timing of availability will probably be negotiated between
you and the seller.
If you have any questions or want to discuss development opportunities in Richfield further,
please call me at 861-9777.
Sincerely,
Bruce Nordquist, Housing Supervisor
Housing and Redevelopment
BN:smv
Enclosure
•
0
MAR- 1-94 TUE 11149 SURNET REALTY LAKES .6129204706 P'.02
R1C8tIZLD-j=j=VZR=
' PARTICIPATI= IGREFptT
TzX4 AGIZEKxNT is made and entered into this C:?/ day of
1NAMD.FOR by and between MM HOUSING AND REDEVEU FhtgNT
UTHORTY THE CITY OF uCEFzELD, a body corporate and
politio under the 14w$ Of the stata Of Kinnesota, having its
principal office at 6700 and Avenue, Richfield, Minnesota
35423 (HRA) . and . . a'
MIM"ota ?- wing its pr pal, office
dt i (Developer). .
in consideration of the mutual covenants'and obligetiona of
the XM and the Developer, the Parties do heraby Covenant and
agree as follows:
1. The Developer agrees to at 8300 to the ARA for the right
to garticignte Ift rsd41va10pment Of a Probe Vy Owned by
the RM in accordance with the guid'eliaes of the jM o s
Richfield-Rediscovered Program.
2. In raturn got $360,-the raoatpt of Whig from the cw•ioper
is hereby actmowledged by the ffi3A, the HRA grunts to the
Developer the e=lusive right to sent into a contract to
redevelop the property loeated..at L06 a2 $ ?Vev"s E.
and legally das=ibed as1ot, NO#h i
in accordance with the ERA s Ri d-R iscover W4 M ,M,nenKi6
Program. This right will sxpirs on tLi4 ZO tq 4
1993, unless, prior thereto, the Daveloper and a HR# '
have executed a Contract for Private Development with regard
• to the property. .
3, The M agrees to negati4te in good f ith with the Dervsloper
regarding redevslopment of -the property but nothing captained
in tht• Agreement shall require the RRA to enter into a
Contract for, Private Dtvaloyment it, at tha H'RAts Bole
dibcretion, it deems such not to be in its beat ii?tvrests.
4. The fee paid by the Developer to the BRA in Connection with
-This Agreement for participation in the * M l s Richfield--
acooortrar prop" or nsita ftnAa le end um-tramsfecsbto
by the NvA.
TBE NOMING VM R EnLopmrUr
At1THORZTY IN AND FOR THR
CITY • OF RICHYXILD, MMZSOTA
P.- - a-- 40?
DMEMPER
Its tine Director its
Sys
Its
THIS DOCUMENT DRAFTED BY:
W mas & Graven, Chartered ' n? band mitten memo
470 Pillsbury canter _ i
Minneapolis, Minnesota 56402 r t/
13 "
17A
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 42
Agenda May 16, 1994
Issue Statement:
Public hearing and authorization of the sale of Richfield
Rediscovered property at 6926 Chicago Avenue to Quam, Sumnicht
and Associates (continued from April 18, 1994).
Background:
A public hearing to consider the above referenced sale was
scheduled for the April 18, 1994 HRA meeting and continued to the
May 16 meeting. Some house plan and project cost concerns had to
be reworked and are now finalized according to Steve Quam.
The HRA authorized the sale of 6926 Chicago Avenue to Newman
Berger in October 1993. Shortly thereafter, Mr. Berger found
his proposed project was over budget. Staff remarketed the site.
Quam, Sumnicht, and Associates (QSA) has identified a buyer and
proposes to build a three bedroom ($128,000) home in accordance
with the attached plan. The development agreement requires:
? A cash deposit of $25,000 to the HRA as performance security.
This is an acceptable alternative to a Letter of Credit.
? Completion by October 31, 1994.
? Construction financing and insurance requirements that other
Richfield Rediscovered builders have provided.
The HRA has already demolished the home in preparation for
development.
Recommended Motion:
Following the public hearing, adopt the attached resolution which
authorizes the Chair and Executive Director to execute an
agreement to sell 6926 Chicago Avenue to Quam, Sumnicht and
Associates for the development of a new single family home.
Basis of Recommendation:
1. Experience with QSA to date indicates they are a responsible
contractor. This will be their first new construction
project in Richfield.
2. The HRA owns the site and is prepared to sell.
3. A development agreement has been negotiated and is in
conformance with program guidelines.
4. Notice of public hearing was published in the Sun-Current on
April 6, 1994. Proper procedures were followed to continue
the hearing to May 16, 1994.
5. Previously, the Planning Commission found the sale of this
lot for development of a new single family home to be in
conformance with the City's Comprehensive Plan.
•
Alternative Recommendation:
Do not proceed with the development agreement with Quam, Sumnicht
and Associate and direct staff to find another buyer.
Discussion/Decision Mode:
A closing is anticipated to occur in early June with construction
starting shortly thereafter.
Respectfu y submitted,
James f'e osser
Execu Director
•
JDP:ds
0
• HRA RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING SALE OF REAL
PROPERTY LOCATED AT
6926 CHICAGO AVENUE
TO QUAM, SUMNICHT AND ASSOCIATES IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
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:
6926 Chicago Avenue, "Chicago Avenue Acres" , the east 1/2
of Lot 1, except south 50 feet thereof, Hennepin County; and
WHEREAS, the HRA is authorized to sell real property within
its area of operation after public hearing; and
• WHEREAS, a developer Quam, Sumnicht and Associates has been
identified as the purchaser of the described property, in
accordance with a development agreement; and
WHEREAS, the development agreement between the HRA and Quam,
Sumnicht and Associates requires:
1. A certified check in the amount of $25,000 as performance
security;
2. A construction completion date of October 31, 1994; and
3. Evidence of construction financing and insurance.
WHEREAS, a public hearing has been held to authorize the
sale 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 Housing and
Redevelopment Authority:
1. A public hearing has been held and 6926 Chicago Avenue is
authorized to be sold to Quam, Sumnicht and Associates in
accordance with a development agreement with the HRA.
0 2. The purchase price for 6926 Chicago is $25,000.
0 3. The Chairperson and Executive Director are authorized to
execute the Development Agreement and other agreements as
required to effectuate the sale to Quam, Sumnicht and
Associates.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 16th day of May 1994.
Thomas E. Harms, Chair
ATTEST:
Vern Luettinger, Secretary
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. 6926
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SOUTH
. HOUSING AND REDEVELOPMENT.AUTHORITY
HRA Letter No.41
Agenda May 16, 1994
Issue Statement:
Authorization to issue completion certificates to Twin Cities
Habitat for Humanity Inc. (TCHFH) for properties at 6225-14th and
6310-15th Avenues.
Background:
The HRA authorized development of the above referenced properties
in 1993. The development agreements provide for the issuance of
a certificate of completion when construction is completed. (A
sample certificate is attached.) The homes have been completed
and occupied. Staff is anticipating the builder will request the
release of the liens plus completion certificates when the
landscaping is installed by May 31, 1994.
Recommended'Motion:
Authorize the Chair and Executive Director to execute completion
certificates in accordance with the attached resolution subject
to visual verification by staff.
Basis of Recommendation:
1. Construction has been completed and a certificate of
. occupancy issued by the Inspection Division. Landscaping
'work-will-be completed shortly subject to acceptable weather.
2. The builder has performed in accordance with construction
agreements and will seek the issuance of completion
certificates and the release of performance liens in the
following amounts:
Builder Property Address Lien Amount
TCHFH 6225-14th $20,000
6310-15th $20,000
Alternative Recommendation:
Do not issue certificates of completion at this time.
Discussion/Decision Mode:
Under terms of the development agreements, the HRA may not
unreasonably withhold the completion certificates.
Res u ly submitted,
Jame . Prosser
Exec ve Director
JDP:cak
0 HRA RESOLUTION NO.
RESOLUTION RELATING TO THE ISSUANCE
OF COMPLETION CERTIFICATES FOR
PROPERTIES AT
6225-14TH AND 6310-15TH AVENUES
WHEREAS, in 1993, the Richfield Housing and Redevelopment
Authority (HRA) entered into contracts with Twin Cities Habitat
for Humanity Inc. for the construction of single family homes;
and
WHEREAS, the new home locations are as follows
6225-14th and 6310-15th Avenues; and
WHEREAS, the construction agreements require the
construction of homes and upon completion, the issuance of a
Completion Certificate and the release of performance liens; and
WHEREAS, staff will verify by visual inspection that
construction is completed and that the performance liens security
in the amount of $20,000 for each property will be released from
Twin Cities Habitat for Humanity Inc.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
..Minnesota that:
1. Upon verification of completion by staff, completion
certificates shall be issued for 6225-14th and 6310-
15th Avenues.
2. The performance liens be released.
Passed by the Housing and Redevelopment Authority of
Richfield this 16th day of May, 1994.
Thomas E. Harms, Chair
ATTEST:
Vern Luettinger, Secretary
• EXHIBIT A
FORM OF CERTIFICATE OF COMPLETION
By
0
The undersigned hereby certifies that
has fully and completely complied with its obligations under
Article IV of those documents entitled "Contract for Private
Development", between the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota and
dated , filed
as Document No. with respect to construction of the
Improvements at , legally described as
, in accordance with the approved
construction plans and is released and forever discharged from
its obligations to construct under such above-referenced Article.
Dated:
By
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
Its Chairperson
Its Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this
day of 19 , by
and the Chairperson and Executive
Director of The Housing and Redevelopment Authority in and for
the City of Richfield, a public body corporate and politic under
the laws of the State of Minnesota on behalf of the public body
corporate and politic.
Notary Public
This instrument was drafted by:
Holmes & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
0
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 4 0
Agenda May 16, 1994
Issue Statement:
Status report on Community Apartment Program.
Background:
On August 16, 1994 the HRA selected Project For Pride In Living
(PPL) and Affordable Suburban Housing (ASH) to implement the
Community Apartment Program. Shortly after PPL/ASH initiated
their work, the HRA requested that a status report be presented
at the February meeting. The regular February meeting was not
held and because of the press of CSM matters, the status report
was not scheduled in March or presented in April. Ms. Laura
Klein and Mr. Bill Schatzlein will present the report.
The report will relate to the five program outcomes identified in
the contract:
OUTCOME ONE: A profile of the current population of apartment
residents in Richfield will be developed that will aid in
directing plans to achieve our goal (duplication of efforts will
be avoided).
OUTCOME TWO: An organization of apartment owners/managers will
be established that will support efforts to maintain decent low-
cost housing that is financially viable.
OUTCOME THREE: A model for a multi-unit dwelling resident
organization will be developed.
OUTCOME FOUR: A directory of Richfield Human Services and
Educational Opportunities will be developed that includes: a
description of services/programs offered; eligible participants;
location; hours; cost; and available transportation. To the
extent possible, existing information will be utilized.
OUTCOME FIVE: A Community Services Group will be formed to link
the City of Richfield, apartment owners/managers association,
human service organizations, educational institutions, and
resident groups in order to relate networks for community
building through communication, promote positive working
relationships, improve the delivery of services to residents, and
improve the livability of Richfield apartments. A determination
will be made about which services/programs could be brought to
housing sites or neighborhood locations.
Recommended Motion:
Accept and discuss the status report.
0
0 Basis of Recommendation:
1. The HRA initiated this program.
2. A status report was requested by the HRA.
Alternative Recommendation:
Delay presentation of report.
Discussion/Decision Mode:
The program is approximately three-quarters of the way through
its first year.
Respe f ly submitted,
James Prosser
Execu ve Director
JDP:cak
•
0