12-21-92 agendaCITY OF RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, DECEMBER 21, 1992
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF HRA MEETING OF NOVEMBER 16, 1992 HRA
MEETING
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF RICHFIELD REDISCOVERED PROPERTY AT 7124 WASHBURN
AVENUE TO KESLER CONSTRUCTION AND DRYWALL SERVICE OF MAPLE
GROVE
HRA LETTER NO. 34
3. CONSIDERATION OF CONTINUATION OF PUBLIC HEARING ON SALE OF
PORTION OF CLOVERLEAF SITE TO THE CITY TO PROVIDE FOR
CONSTRUCTION OF'77TH STREET; RIGHT OF ENTRY
HRA LETTER NO. 35
4. EXECUTIVE DIRECTOR REPORT
5. 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-35
Agenda December 21, 1992
Issue Statement:
Continuation of
site to the City
right of entry.
•
is
hearing on the sale of a portion of the Cloverleaf
to provide for the construction of 77th Street;
Background:
The City Council authorized just compensation and the purchase of the
portion of the Cloverleaf site needed for the 77th Street Project
along with several other partial takings on December 14. However,
MnDOT/FHWA (Federal Highway Administration) approval has not yet been
provided for the partial takings. Thus, the official offer to
purchase cannot be made at this time. It was hoped the approval
would be received prior to the HRA meeting of December 21, 1992.
Because of the delay in the hearing, the City is requesting a right
of entry for contractors to enter the property for purposes of tree
removal. Tree removal would not begin until approximately early
March, after the public hearing on the sale in January. However,
there will be a document submitted in the next few days and it is
important to be able to state that the City has access to the
property.
Recommended Motion:
Adopt a motion continuing the land sale hearing to the January 19,
1993 HRA meeting and granting a right of entry to the City for
purposes of tree removal.
Basis of Recommendation:
1. The public hearing was advertised for December 21, 1992.
2. Because the MnDOT/FHWA approval has not yet been provided, an
offer from the City cannot yet be made. If an offer were made,
MnDOT/FHWA fund eligibility would be eliminated.
3. The appropriate response is to continue the hearing until the
January meeting.
4. Right of entry will permit MnDOT/FHWA processing to proceed.
Alternative Recommendation:
1. End the hearing.
2. Continue the hearing to another date.
3. Not grant the right of entry.
Discussion/Decision Mode:
Continuation will avoid the
and permit plan processing
necessity of advertising the hearing again
to continue.
RIs. ully submitted,
JProsser
Ee Director
JDP:cak
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 34
Agenda December 21, 1992
Issue Statement:
Public hearing and authorization of the sale of Richfield
Rediscovered property at 7124 Washburn Avenue to Kesler
Construction and Drywall. Service of Maple Grove.
Background:
In August 1992, the HRA authorized the acquisition of property at
7124 Washburn Avenue under the Richfield Rediscovered program. A
builder/buyer team had been identified in November. However, the
buyers changed their mind and selected a different builder late
in November. The new builder, as referenced above, has made the
required nonrefundable $500 deposit. The sale price of the lot
will be $27,500. The new home will be valued at approximately
$123,000. The home is a four level split with 1,450 square feet
finished, including two bedrooms and a third roughed in.
The developer is responsible for clearance and is given a credit
on the purchase price of the site. Staff has secured bids to use
as a guide for determining the credit. The credit for 7124
Washburn is $3,850.
The development agreement remains unchanged from those previously
• used for Richfield Rediscovered.
The agreement requires Kesler Construction to:
? pay for the site at the stated lot value minus the demolition
credit, 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 $27,500. 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 home at 7124 Washburn by June 1993.
Leroy Kesler, the owner of Kesler Construction, is building with
the Richfield Rediscovered program for the first time. He builds
approximately three to four homes a year.
The building official in Maple Grove indicates he is a good,
honest builder with whom to work. His material suppliers
indicate he is reliable.
Recommended Motion:
Following the public hearing, adopt the attached resolution which
. authorizes the Chair and Executive Director to execute agreements
which sell 7124 Washburn Avenue to Kesler Construction and
Drywall for the development of a new single family home.
0 Basis of Recommendation:
1. A check of references indicates Kesler Construction is an
experienced, capable, financially secure builder.
2. The HRA has authorized the acquisition of a lot at 7124
Washburn Avenue for the Richfield Rediscovered program.
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
December 9, 1992.
5. Previously, the Planning Commission found the sale of the lot
for development of a new home to be in conformance with the
City's comprehensive plan.
Alternative Recommendation:
Do not proceed with a development agreement with Kesler
Construction and direct staff to find other buyers.
Discussion/Decision Mode:
Closings could occur yet in December. However, title work must
be completed before the HRA can purchase the site and sell to
Kesler Construction.
Respectfully submitted,
James Prosser
Execut' a Director
JDP:cak
is
RESOLUTION NO.
• THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT 7124 WASHBURN AVENUE
TO KESLER CONSTRUCTION AND DRYWALL, 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:
7124 Washburn; North 50 feet of Lot 63. except the East 57.52
feet thereof and the North 50 feet of the East 73 feet of Lot 62,
Sabin Lake Harriet Garden Lots.
WHEREAS, the HRA is authorized to sell real property within
its area of operation after public hearing; and
WHEREAS, a developer, Kesler Construction and Drywall of
Maple Grove, has been identified as the purchaser of the
• described property, in accordance with a development agreement;
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 7124 Washburn is
authorized to be sold to Kesler Construction and Drywall in
accordance with a development agreement with the HRA.
2. The sale price for 7124 Washburn is $27,500.
3. That the Chairperson and Executive Director are authorized to
execute the Development Agreement and other agreements as
required to effectuate the sale to Kesler Construction and
Drywall.
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Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 21st day of December,
1992.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
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