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09-19-94 agendaCITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MONDAY, SEPTEMBER 19, 1994 COUNCIL CHAMBERS 7:00 P.M. AGENDA CALL TO ORDER APPROVAL OF MINUTES OF HRA MEETING OF AUGUST 15, 1994 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATION OF REDEVELOPMENT OF CAR WASH SITE AT EAST 66TH STREET AND BLOOMINGTON AVENUE HRA LETTER N0. 64 3. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF SIX PROPERTIES FOR RICHFIELD REDISCOVERED: 6821 LOGAN, 6845 NEWTON, 6404-15TH, 6318 KNOX, 6404 HUMBOLDT, AND 2819 WEST 70~ STREET HRA LETTER NO. 65 4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF RICHFIELD REDISCOVERED PROPERTIES AT 6500-14TH,-6828 ELLIOT, 6926 CHICAGO AND 6236 PLEASANT AVENUES HRA LETTER NO. 66 5. CONSIDERATION OF RESOLUTION AUTHORIZING ISSUANCE OF COMPLETION CERTIFICATE TO JESPERSEN HOME BUILDERS FOR RICHFIELD REDISCOVERED PROPERTY AT 7245-12TH AVENUE HRA LETTER NO. 67 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. 67 September 19, 1994 Issue Statement: Authorization to issue a completion certificate to Jespersen Home Builders for the Richfield Rediscovered property at 7245-12th Avenue. Background: The HRA authorized development of the above referenced property earlier this year. .The development agreement provides for the issuance of a certificate of completion when construction is completed. (A sample certificate is attached.) The home at 7245-12th Avenue has been completed and is now occupied. Recommended Motion: Authorize the Chair and Executive Director to execute the completion certificate in accordance with the attached resolution which includes verification by staff of completion at 7245-12th Avenue. Basis of Recommendation: 1. Construction has been completed and a certificate of occupancy issued by the Inspection Division for 7245-12th Avenue. 2. The builder has performed in accordance with the construction agreement. and has requested the issuance of the completion certificate, including the release of performance security in the amount of $30,000. Alternative Recommendation: Do not issue the certificate of completion at this time. Discussion/Decision Mode: This matter will be presented at the September 19 HRA meeting. Resp ctfully sub fitted, ~~ D Acting Executive Director SLD:ds RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD RESOLUTION RELATING TO THE ISSUANCE OF A COMPLETION CERTIFICATE FOR THE RICHFIELD REDISCOVERED PROPERTY AT 7245-12TH AVENUE WHEREAS, in 1994, the Richfield Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) entered into a contract with Jespersen Home Builders for the construction of a single family home; and WHEREAS, the new home is located at 7245-12th Avenue; and WHEREAS, the construction at the site is completed; and WHEREAS, performance security in the amount of 530,000 can be released to Jespersen Home Builders. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority in and for the City of Richfield, Minnesota that: 1. The completion certificate for 7245-12th can be issued. 2. The performance security can be released for the property when the completion certificate is issued. Passed by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 19th day of September, 1994. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under Article IV of that document 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 approved construction plans and is released and forever discharged from its obligations to construct under such above- referenced Article. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chairperson By Its Executive Director STATE OF MINNESOTA )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 199 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 HOUSING AND REDEVELOPMENT. AUTHORITY HRA Letter No. 66 Agenda September 19, 1994 Issue Statement: Public hearing and authorization of the sale of Richfield Rediscovered properties at 6500-14th, 6828 Elliot, 6926 Chicago and 6236 Pleasant Avenues. Background: The HRA authorized purchase of the properties at 6500-14th, 6828 Elliot and 6236 Pleasant Avenues on August 15, 1994. Quam, $umnicht, and Associates previously .withdrew their interest in developing 6926 Chicago Avenue, which the HRA already owns. Marlin Grant Homes, Inc. of Bloomington has secured purchase agreements from buyers for the 14th, Elliot and Chicago Avenue lots. Two of the buyers are being relocated from New Ford Town. The sale price of the lots and proposed minimum home values are as follows: Property Sale Price Minimum Value 6500-14th Avenue $ 29,000 $ 116,000 6828 Elliot Avenue $ 27,500 $ 110,000 6926 Chicago Avenue $ 26,000 $ 104,000 Twin Cities Habitat for Humanity (Habitat) has expressed an interest in building a single family home at 6236 Pleasant. The HRA would sell the lot for.$1 and retain a land value second mortgage of $20,000 with the homebuyer. The project has been designed to provide room for a future garage. A storage shed will initially be provided. The home value upon completion is approximately $80,000. The development agreement form for all projects remains essentially unchanged from those used previously for Richfield Rediscovered. Recommended Motion: Following the public hearing, adopt the attached resolution which authorizes the Chair and Executive Director to execute agreements to sell 6500-14th, 6828 Elliot, and 6926 Chicago Avenues to Marlin Grant Homes, Inc. and 6236 Pleasant to Habitat for the development of new single family owner occupied homes on each site. Basis of Recommendation: 1. Program experiences indicate Marlin Grant Homes, Inc. is an experienced, capable, financially secure builder. 2. Habitat is also experienced, capable, and financially secure. The volunteer labor for this project will be provided by Centex, a nationally recognized homebuilder. 3. The HRA has authorized the purchase of 6500-14th Avenue, 6828 Elliot Avenue and 6236 Pleasant, and has acquired the lot at 6926 Chicago Avenue for redevelopment. 4. Development Agreements have been negotiated and are in conformance with program guidelines. 5. Notice of public hearing was published in the Sun-Current on September 7, 1994. Alternative Recommendation: Do not proceed with the development agreements with Marlin Grant Homes, Inc. and Habitat and direct staff to find another buyer. Discussion/Decision Mode: Closings are expected to occur in October and November with construction starting shortly thereafter. Centex Homes/Habitat has a unique goal, to complete the home at 6236 Pleasant in ten days.. Resp ct ully sub fitted, en L. evich Acting Executive Director SLD:ds RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6500-14TH, 6828 ELLIOT, AND 6926 CHICAGO, AND 6236 PLEASANT AVENUES 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, said real property being described as follows: 6500-14th Ave.: Lot 1, Block 4 " Rich Highlands Addition 6828 Elliot Ave: East 1/2 of North 1/2 of Lot 37 of Baumgartner's First Addition 6926 Chicago Ave: "Chicago Avenue Acres" Addition, Lot 1, that part of east 1/2 lying north of south 50 feet thereof 6236 Pleasant: Lot 6, Block 1, Kendale Addition WHEREAS,-the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, a developer Marlin Grant Homes, Inc. of Bloomington has been. identified as the purchaser of 6500-14th Avenue, 6828 Elliot Avenue, and 6926 Chicago, in accordance with a development agreement; and WHEREAS, Twin Cities Habitat for Humanity has been identified as the purchaser of 6236 Pleasant Avenue, in accordance with a development agreement; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority: 1. A public hearing has been held and 6500-14th, 6828 Elliot, and 6926 Chicago Avenues are authorized to be sold to Marlin Grant Homes, Inc. in accordance with a development agreement with the HRA. 2. A public hearing has been held and 6236 Pleasant Avenue is authorized to be sold to Twin Cities Habitat for Humanity in accordance with a development agreement. 2. The sale price to the builders of each is 529,000, 527,500, 526,000, and S1 respectively. 3. The Chairperson and Executive Director are authorized to execute the Development Agreement and other agreements as required to effectuate the sale to Marlin Grant Homes, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield Minnesota this 19th day of September 1994. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary W r Q Q V V t0 N O~ ~O >:- 1 Y Z O a W J W H Z O o~ 3` :y Z O a w J W H 2 ~_ Z O Q W J W F- W W J Z Q W J W Q W .~- J a oC O O J O O J O Z O U w N I( ~ul~d SNl1'6^~~l~l 13, ~.~ ,~ { I ~-~iY. T~ ll''IIYI. T'l'l'I~/:~~Z~ - PYY ¢ Y I~ I S \\ I I y ~ i ~___ •~~v ..71 _ I ~ ~ ~ ~ slf(..~I ~L I I ~ z I > Q .~ I I / ~ FF P- ~ I I Z it w~l ~ ~ •~•o n'11 ~ - 'I - n ~- ilsf M°1 I 3 .~_ ~I; ~n. ~ m /I II - - ~ ~ "III ~ •%~ n°~7E,F Jils ~ <~ I'I~ 3 y i~ - _ -.p.o~ ~ . u I - ~ , ~ ~~~ ~J ~il il; i. a _ 3 0 - _ __ I 1 S -l ,~' ~~ og ~ I I it It ~ y' `T - I I t 351/ .a ~ 77\\ ~ ~ j ~ ~--1~ \~ I~ 'J9d ~l) 'I\ I 'F1 ~ M ~ fl F I _q ii ! -l-_`l i ~- --~_~ --- - O ? ~..:-:. ~ I ~ ~ cam- X ~,.,Y'aj ~ ~_ LL v al -- ~ -- T .+ ,~ ~ 5 .- ~~~III~I O `Q ' i W i '~ 1~ ~ D_ i ' r _ O y ~ j ~ ~ LL 1 ~' I 0 I ~~ i _ 4 3v l 1 Z O Q W J W Q W O Q W J W w J Z W a 0 1--. 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T .~,._~.~ , ~ ~L_1_..... i f . ~1a`l:~l:iai.i:1.1.i:1~ .1. i , ..i 1 ~- ~ " I` i I ~~ I~I!i 1 i ~ i i l a~~l ~ ~ ~ it ~~'~~~~11~±! .ll ~~iil I~I`'+ 1~1 7 ~ ~ ~ ` { ~ } i. 4 ._ . { I i ~ f ::~..,.~ l!I~~ I, I f , '~~1.1f.liJll!.~ Z O a W J W H Z O ac Z O a W J W H c~ z 0 W J W F- W W J Z O a W J W a W l~3 _A r Z a d or 0 0 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 65 September 19, 1994 Issue Statement: Adoption of a resolution authorizing the purchase of six properties for Richfield Rediscovered. Background: In April 1994, the HRA authorized an allocation of 5700,000 from the Development Fund toward the continuation of Richfield Rediscovered. Staff has identified and concluded negotiations on the purchase of six additional properties. The HRA authorized the purchase of up to eight in August. BCL performed the requested appraisals. The purchase prices have been negotiated based on the stated values. Address Purchase Price ~8-2~~-* ~-5~-; ~~8- 6845 Newton $ 58,000 6404-15th * $ 56,000 6318 Knox S 53,000 6404 Humboldt * $ 59,000 2819 W. 70 1/2 Street $ 55,000 * Builder/buyer teams identified. All the properties have been inspected to determine that they meet program requirements for acquisition. All the properties except 2819 W. 70 1/2 Street are part of the Richfield Rediscovered Tax Increment Program as approved by the HRA in June 1994. The 2819 W. 70 1/2 Street property is vacant, foreclosed, and recently available from HUD. Legal Counsel has determined that the HRA can acquire first and bring the property into the program prior to development. Two of the properties which have buidler/buyer teams identified include buyers from New Ford Town and Rich Acres. The buyers responded to recent marketing efforts in these areas. Recommended Motion: Adopt the attached resolution which authorizes: 1. The purchase of the properties at the values indicated. 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. The property at 2819 West 70 1/2 Street can be added to the plan. 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. 5. Purchase of.6845 Newton, (lot width = 45'), 6404 15th (lot width = 48'), and 6318 Knox (lot width = 40') Avenues is contingent on .variance approval by the City Hearing Examiner from the required 50' width. Alternative Recommendation: 1. Do not authorize acquisition. Discussion/Decision Mode: Agreements to purchase would be prepared in final form and work will continue with builder/buyer teams. Those sites not yet reserved for development will continue to be marketed. The Hearing Examiner will have an opportunity to evaluate lot width variances in October. Re ec fully s mitted, ven L. Devich Acting Executive Director SLD:ds ~ ~ RESOLUTION NOe THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6845 NEWTON 6404-15TH 6318 KNOX 6404 HUMBOLDT 2819 WEST 70-1/2 STREET 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: 6845 Newton: Lot 5, Block 7 Tingdale Bros.' Lincoln Hills Addition 6404-15th: Lot 2, Block 3 Nokomis Gardens Rearrangement of Blocks 1, 2, 3, 4, 5 Girard Parkview 6318 Knox: Lot 6, Block 8 Ray's Lynnhurst Addition 6404 Humboldt: Lot 2 and East 10 feet of Lot 19 Fairwood Park First Addition 2819 W. 70 1/2 Street: Lot 26, Sabin Lake Harriet Garden Lots Addition East 70 feet of north 135 feet WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, the properties meet all program requirements for acquisition; except for the City Hearing Examiner review of a need for lot width variances at 6845 Newton, 6404 15th and 6318 Knox Avenues; 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 6845 Newton S 58,000 6404-15th $ 56,000 6318 Knox S 53,000 6404 Humboldt S 59,000 2819 W. 70 1/2 Street $ 55,000 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, contingent on City approval of lot width variances at 6845 Newton, 6404 15th, and 6318 Knox Avenues. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield Minnesota this 19th day of September 1994. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT r6~,v~.~~ ~' N 6845 NEWTON 6404-15TH 6318 KNOX 6404 HUMBOLDT 2819 WEST 70-1/2 STREET 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: 6-5-2-1--L-ogdn: Low 9-, Bl;~~l:-~ Ti..ydule a=os. ' ion 6845 Newton: Lot 5, Block 7 Tingdale Bros.' Lincoln Hills Addition 6404-15th: Lot 2, Block 3 Nokomis Gardens Rearrangement of Blocks 1, 2, 3, 4, 5 Girard Parkview 6318 Knox: Lot 6, Block 8 Ray's Lynnhurst Addition 6404 Humboldt: Lot 2 and East 10 feet of Lot 19 Fairwood Park First Addition 2819 W. 70 1/2 Street: Lot 26, Sabin Lake Harriet Garden Lots Addition East 70 feet of north 135 feet WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, the properties meet all program requirements for acquisition; except for the City Hearing Examiner review of a need for lot width variances at 6845 Newton, 6404 15th and 6318 Knox Avenues; 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 c 4~~~ari 6845 Newton 6404-15th 6318 Knox 6404 Humboldt 2819 W. 70 1/2 ,Street Purchase Price S,^5.~~90 $ 58, 00.0 S 56,000 S 53,000 S 59,000 $ 55,000 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, contingent on City approval of lot width variances at 6845 Newton, 6404 15th, and 6318 Knox Avenues. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield Minnesota this 19th day of September 1994. ATTEST: ~rnomas ~. Harms, chairperson Vern Luettinger, Secretary HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 64 September 19, 1994 Issue Statement: Redevelopment of car wash site at East 66th Street and Bloomington Avenue. Background: The site at this location is underutilized and has periodically been a problem for the neighborhood. Mr. Charles Ehlers, DDS. and Mr. James Koller, DDS. working with Mr. Jim Winkels, Director of Business Development for Belair Builders Inc. of New Brighton, would like to construct a dental office at this location. They are currently located at 56th Street and Chicago Avenue. The building would include approximately 4,000 square feet of space; 2,400 on the first floor and 1,600 of finished space on the lower level. The site would also include parking and landscaping. Currently the site has both an owner and a tenant. Mr. Winkels has held negotiations with both parties. The dentists would finance a significant portion of the project themselves but have requested tax increment assistance based - on the increment which would be generated from their development. Mr. Ehlers,.Mr. Koller and Mr. Winkels will be at the HRA meeting on September 19. Recommended Motion: Direct staff to prepare redevelopment and tax increment plans and a developers agreement for presentation to the HRA. Basis of Recommendation: 1. The property is underutilized and has been a problem to the neighborhood. 2. Redevelopment with a professional office use is consistent with existing zoning and would be compatible with the adjoining residential neighborhood to the south. 3. The commercial image of this area would be improved. 4. Tax increment could be utilized to encourage and assist this concept. Alternative Recommendation: 1. Delay action. 2. Reject the concept. Discussion~Decision Mode: The dentists prefer this site but need a response on September 19 so they know whether to pursue an alternative site. Res ctfully omitted, ~!/~P.~'C.~ ven L. Devich Acting Executive Director SLD:ds