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11-19-92 agendaCITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MONDAY, NOVEMBER 16, 1992 7:00 P.M. COUNCIL CHAMBERS. AGENDA CALL TO ORDER APPROVAL OF MINUTES OF HRA MEETING OF AUGUST 17, 1992 AND HRA MEETING OF OCTOBER-19, 1992 1. OATH OF OFFICE TO HRA COMMISSIONER, THOMAS HARMS 2. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 3. CONSIDERATION FOURTH AVENUE ACQUISITION A 4. CONSIDERATION FOR RICHFIELD OF RESOLUTION AUTHORIZING ACQUISITION OF 6634 AND REQUESTING CITY COUNCIL TO AUTHORIZE KD DISPOSITION OF SITE TO HRA HRA LETTER NO. 30 OF RESOLUTION AUTHORIZING PURCHASE OF PROPERTY REDISCOVERED, 7021 NICOLLET AVENUE HRA LETTER NO. 31 5. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF RICHFIELD REDISCOVERED PROPERTY AT 7124 WASHBURN AVENUE TO MERLYN OLSON HOMES HRA LETTER NO. 32 6. CONSIDERATION OF RESOLUTIONS ADOPTING 1993 PROPOSED PROPERTY TAX LEVY AND BUDGET HRA LETTER NO. 33 7. EXECUTIVE DIRECTOR REPORT 8. 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. 33 Agenda November 16, 1992 Issue Statement: Adoption of the 1993 HRA proposed property tax levy and budget. Background: At a August 24, 1992 special meeting, the HRA adopted a preliminary levy according to the Truth-in-Taxation law. That levy was then forwarded to the City Council and adopted with the City's preliminary levy. The Truth-in-Taxation law does not require any further action by the HRA, nor does it require a public hearing on the final tax levy and/or budget. The HRA levy will be included as part of the City's final levy document which will be considered at the City's Truth- in-Taxation hearing on December 9, 1992. The HRA must now adopt a final budget and tax levy to be forwarded to the City Council for final action. The HRA budget resolutions are included with the budget document and represent official action on these items by HRA. A public hearing on the budget will also be held on December 21. The hearing will be for informational purposes. It will not be is possible to change the HRA tax levy after December 9, 1992. Recommended Motion: Adopt the resolutions adopting a 1993 HRA budget and proposed property tax levy for 1993. Basis of Recommendation: 1. The HRA approved the Proposed 1993 Budget and Proposed 1993 HRA General Fund and Relocation Information Fund tax levies at its August 24 special meeting. 2. The HRA must now take official action to finalize the HRA budget and tax levy. Alternative Recommendation: 1. The HRA could select another meeting date before December 9, 1992 to consider these items. Discussion/Decision Mode: The HRA may take action on the HRA budget and property tax levy on November 16. Respect ly submitted, Ja Prosser Ex cu ive Director JDP:cak HRA RESOLUTION NO. RESOLUTION APPROVING 1993 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield as follows: Section 1. The Budget for the Housing and Redevelopment Authority General Fund of Richfield for the year 1993 in the amount of $315,000 is hereby adopted. Section 2. The estimated gross revenue of the Housing and Redevelopment Authority General Fund of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 1993, and as the same are more fully detailed in the Executive Director's official copy of the proposed Budget for the year 1993, in the amount of $311,030 are hereby approved. Section 3. In accordance with the provisions of law, there is hereby levied upon all taxable property in the City of Richfield a direct maximum amount allowable by law ad valorem tax in the 1992, payable in 1993 for the following purposes: Housing and Redevelopment Authority $150,987 Relocation Information, Services and Assistance $ 14,983 Section 4. Upon approval of the Housing and Redevelopment Authority budget and tax levy for the year 1993 by the City Council, the City Council is requested to transmit a certified copy of this resolution to the County Auditor, and to certify the tax levy contained in Section 3 above to the County Auditor. Passed by the Housing and Redevelopment Authority of the City of Richfield, Minnesota this 16th day of November, 1992. Thomas E. Harms Chairman ATTEST: Joan Helmberger Secretary HRA RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF 1992 BUDGET OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. 437 appropriated funds for personal services and other expenses and capital outlay for the Authority for the year 1992, and WHEREAS, The Executive Director has requested a revision of the-1992 budget as detailed in the proposed 1993 budget document. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota as follows: Section 1. That the 1992 appropriations for the Housing and Redevelopment General Fund be revised as follows: $19,055 Increase Section 2. Estimated 1992 gross revenue of the Housing and Redevelop- ment Authority General Fund from all sources, as the same are more fully detailed in the Executive Director's official copy of the 1993 budget document, are hereby revised as follows: 0 $64,650 Increase Section 3. That the 1992 appropriations for Relocation Information Services and Assistance be revised as follows: $ 620 Decrease Section 4. Estimated 1992 gross revenue of the Relocation Informations Services and Assistance from all sources, as the same are more fully detailed, in the Executive Director's official copy of the 1993 budget document, are hereby revised as follows: $ 990 Decrease Section 5. That the Executive"Director bring into effect the provisions of this resolution. Passed by the Housing and Redevelopment Authority of Richfield, Minnesota this 16th day of November, 1992. Thomas E. Harms Chairman ATTEST: 0 Joan Helmberger Secretary November 16, 1992 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: In accordance with the bylaws of the Richfield Housing and Redevelopment Authority (HRA), the HRA budget for January 1, 1993 to December 31, 1993 is submitted. A hearing on the proposed HRA budget was held on August 24, 1992, at 5:30 P.M. The Housing and Redevelopment Authority certified the proposed 1993 budget and the ad valorem property tax revenue levy to the Hennepin County Auditor by September 15, 1992. Any amendments to the proposed budget which would change the ad valorem tax levy require hearings between November 29 and December 20 for final certification. The resolution to certify the budget and levy has been prepared based on the proposed budget. This resolution and a resolution revising the 1992 budget are located in the last section of this budget document. The proposed 1992 budget revision and the proposed 1993 budget for the Housing and Redevelopment Authority consists of ten funds or programs. 1. HRA General Fund 2. New Home Program Fund 3. Relocation Information Program 4. Housing Rehabilitation Program 5. Section 8 Rental Assistance Program 6. Cedar Business Study 7. Capital Improvement Program 8. L/H/N Redevelopment Fund 9. I/L/N Redevelopment Fund 10. Richfield Rediscovered Program OVERVIEW 1992 AND 1993 The recommended budget for 1993 provides for total expenditures of $2,412,350 compared to the 1992 revised estimate of $3,722,565. Revenue detail, funding category summaries and all statistical summaries to support the recommended appropriations are found in the budget document. Expenditure detail for specific activities is also included. HRA GENERAL FUND The HRA General Fund Budget is financed primarily through property taxes and the homestead credit, which will generate an estimated $147,800 in 1993. The HRA General Fund supports the costs associated with the overall executive and legislative functions of the HRA, specially related to the.HRA Board of Commissions. HRA administration expenditures as requested for 1993 total $153,770. The fund also accounts for airport project expenditures which are funded by transfers from the City.General Fund. NEW HOME PROGRAM FUND The New Home Program is funded primarily from Community.Development Block Grants allocated from the City, and provides affordable housing opportunities for first time buying families, elderly, and households with special needs. In 1992 and 1993, the New Home Program will complete and sell four new construction projects, acquire one substandard house for redevelopment by Vo-Tech, during the 1992-93 school year, and identify one housing project for acquisition in 1993 and completion by Vo-Tech during the 1993-94 school year. RELOCATION INFORMATION PROGRAM FUND The HRA Relocation Fund is used to account for the financial activity related to non-financial assistance to businesses and residents relocated as a result of redevelopment activity within the City. The activity is'supported by an ad valorem levy of $14,983. In 1993 it is estimated that the HRA will receive $14,700 in revenue and have expenditures of $29,000. HOUSING REHABILITATION PROGRAM FUND The Housing Rehabilitation Program provides monies for residential rehabilitation. Deferred loans and flood grants are funded through the Community Development Block • Grant Program. The HRA anticipates receiving $158,890 in the fiscal year 1993 for this purpose. SECTION 8 RENTAL ASSISTANCE PROGRAM FUND The Section 8 Rental Assistance Fund administers the Federal Section 8 Rental Assistance Program. The program currently serves about 310 renters within Richfield. The HRA receives administrative funds from HUD for operating the Program. Rental subsidies are paid by federal funds directly to individual landlords and program participants pay approximately 30% of their income toward rent. CEDAR AVENUE BUSINESS STUDY The Cedar Avenue Business Study provides relevant information and assistance in assessing potential redevelopment projects adjacent to or in the outlying Cedar Avenue area in Richfield. The program is funded by tax increment received from the Cedar Avenue Business Area Tax Increment District. CAPITAL IMPROVEMENT PROGRAM FUND The Capital Improvement Fund receives monies from investment earnings of sale proceeds and other non-bond revenues from LHN and other tax increment redevelopment projects. By previous policy, the capital fund i.s dedicated to accomplish the following objectives: 1. The interest earnings attributed to $1,000,000 of the Capital Improve- ment Fund are used to partially finance the New Home Program, the Housing and Rehabilitation Program and ILN Administration.. The total net amount for these funds in 1993 is projected at $140,560. II 2. The balance of funds within this fund are available as seed money for new redevelopment projects. During the year 1993, $41,620 is budgeted for Penn Avenue/66th Street planning activities. A Penn Avenue/66th Street fund has been established to account for activities related to advance planning for redevelopment of this area. Continuation of planning in the ILN area is anticipated to be $58,950 in 1993. As shown, the fund balance for the year ending December 31, 1993, indicates a fund balance of approximately $1,003,120. A total of $1,000,000 must be held in reserve so that interest earnings are availabl-e for designated programs in .subsequent years . LIH/N REDEVELOPMENT FUND The LHN Redevelopment Fund reflects financial activities related to the Lyndale/Hub/Nicollet district. This district is substantially redeveloped. In 1992, construction of Rainbow Foods was completed. In 1993, the fund will continue to manage the Graham Avenue Development Site and encourage the development of a medical clinic as conditions permit. I/L/N DEVELOPMENT FUND The ILN Fund accounts for the 1988 General Obligation Redevelopment Bonds sold in anticipation of future development. While $630,000 of the Bond proceeds have been utilized to provide public improvements related to the Hampton Inn development, the balance of the $1,900,000 bond proceeds are being used to purchase properties in the portion of the district west of Lyndale for public improvements. In 1992, the Cloverleaf Site was acquired with ILN tax increment funds for approximately $1,025,000. The site consists of 13.4 acres of land with close proximity to major hotels, retail facilities, restaurants and entertainment establishments. The future development of this area represents an opportunity to diversify the City's tax base • which is now highly dependent on residential property. The HRA will seek to find a redeveloper for the areas south of 77th Street, including the Cloverleaf Site, in the near future. SUMMARY The major initiatives for the HRA during 1993 will include continued planning to permit redevelopment of the Penn Avenue/66th, ILN, and LHN areas. This planning should place the City of Richfield in a unique position to accept various types.of redevelopment as the market permits that type of redevelopment. The acquisition of all property needed in upgrading 77th Street will also be undertaken. The HRA has been able to design redevelopment plans, funding those efforts through a "revolving fund" within the Capital Improvement Fund. Future funding for these efforts is questionable. Changes in IRS regulations limiting the ability of Tax Increment Financing districts to repay "up front" project costs, combined with time required to obtain appropriate redevelopment, are the principal causes for this dilemma. Other areas of special concern during the year include development of an Economic Development Program which will provide a comprehensive approach to redevelopment within Richfield. Respectful) ub tted, is dames . Prosser Exep ive Director III HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 32 Agenda November 16, 1992 Issue Statement: Public hearing and authorization of the sale of Richfield Rediscovered property at 7124 Washburn Avenue to Merlyn Olson Homes. Background: In August 1992, the HRA authorized the acquisition of property at 7124 Washburn Avenue under the Richfield Rediscovered program. In recent weeks, a builder/buyer team has been identified and a nonrefundable $500 deposit made. As this letter was being prepared, Merlyn Olson Homes was securing a purchase agreement from a buyer for the lot at 7124 Washburn Avenue and signing a development agreement for the HRA to consider. 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 essentially unchanged from those previously used for Richfield Rediscovered. The agreement requires Merlyn Olson Homes 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 May 1993. Merlyn Olson, the owner of Merlyn Olson Homes, is building with the Richfield Rediscovered program for the first time. He builds approximately 10 to 15 homes a year. The building officials in Burnsville and Savage indicate he is a good builder with whom to work. His material suppliers indicate he is reliable. Merlyn Olson Homes was a 1992 Parade of Homes Reggie Award recipient. The Parade home was the best in its class for craftmanship, design and presentation. 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 Merlyn Olson Homes for the development of a new single family home. Basis of Recommendation: 1. A check of references indicates Merlyn Olson Homes is an experienced, capable, financially secure builder. 2. The HRA has authorized the acquisition of lots at 7124 Washburn Avenue for the Richfield Rediscovered program. 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 November 4, 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 Merlyn Olson Homes and direct staff to find other buyers. Discussion/Decision Mode: Closings may occur as early as the beginning of December 1992, with site clearance and construction starting shortly thereafter. Re t ully submitted, J e D. Prosser Exe utive Director JDP:ds J 0 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 MERLYN OLSON HOMES, 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 East 73 feet of Lot 62 and North 50 feet of North 74 48/100 feet of Lot 63, Lot 62 and 63, Sabin Lake Harriet Gardens Lots, Hennepin County. WHEREAS, the HRA is authorized to sell real property . within its area of operation after public hearing; and WHEREAS, a developer, Merlyn Olson Homes of Savage 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 Washbur is authorized to be sold to Merlyn Olson Homes 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 Agreements and other agreements as required to effectuate the sale to Merlyn Olson Homes. • Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of November, 1992. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary n U • FOR IMMEDIATE RELEASE: PHOTO CAPTION Contact: Pam Goldfarb BATC (612) 851-9242 YOU BUILD A GREAT HOUSE... -- Bloomington, MN --- Merlyn Olson of n ?.J Merlyn Olson Homes is pictured accepting the Reggie Award for his 1992 Parade Of Homes entry in Savage from Vi Traynor of the Builders Association of the Twin Cities (right). The Award Of Excellence and Reggie Awards are given annually to celebrate quality in home building within, the 1992 Parade Of Homes. The annual award is sponsored by the Builders Association of the Twin Cities. The Builders Association represents over 1,200 member firms involved in the home building industry. 0 0 _Z W a z o? m N T" I` 0 z O a W W H O Q w J W z O cc W 0 Q W J W LL J z O a W J W cr. a W cc HOUSING AND REDEVELOPMENT AUTHORITY • HRA Letter No. 31 Agenda November 16, 1992 Issue Statement: Adoption of a resolution authorizing the purchase of property for Richfield Rediscovered, 7021 Nicollet Avenue. Background: In August 1992, the HRA authorized the purchase of nine substandard properties for redevelopment through the Richfield Rediscovered Program. Development is being initiated on some sites and negotiations are being finalized on others. One site previously not available is now being offered to the HRA. The property address is 7021 Nicollet. Staff previously inspected the dwelling, finding it to be eligible for the program. This fall the house was condemned by the City housing division. The owner, the U. S. Dept. of HUD, was required to demolish the house. HUD has contacted staff to determine HRA interest in purchase. A price of $16,650 for this 59' x 133' lot has been suggested. This is a discounted price because of the sale to a public agency. The site is particularly suited to Richfield Rediscovered's "modest cost initiative" program element. Discussion is underway • between staff and potential non-profit housing developers. It is hoped a project can be brought to the HRA in early 1993. The HRA modest cost program element provides a new home valued at less than $85,000. A lower income buyer would be sought. The annual income of a buyer would likely be in the $20,000 to $30,000 range. The non-profit typically requires the land cost to be $1.00. The HRA's subsidy would approximate $16,650, which could be possibly secured by a second lien. This lot presents an opportunity to provide an affordable home to a lower income family at less than the typical cost to the HRA. The urgency at this time is HUD's intent to sell. If the HRA decides to purchase, HUD will not place the property on the market. Recommended Motion: Adopt the attached resolution which authorizes: 1. The purchase of 7021 Nicollet for $16,650. 2. The Executive Director and HRA Chairperson to execute purchase agreements and other documents as necessary to purchase the property. . Basis of Recommendation: 1. The property meets program requirements for acquisition and is identified in the program plans previously approved by the HRA. 2. Funding for acquisition is available. 3. The owners have voluntarily indicated an interest in selling the property to the HRA. 4. At least one nonprofit builder has already indicated interest in building on the site although an end buyer has not yet been identified. 5. This site presents an unusual opportunity to provide a house to a lower income family at a less than usual cost to the HRA. Alternative Recommendation: Not authorize acquisition. Discussion/Decision Mode: Staff would purchase in December 1992. When finalized, staff will return to the HRA with a development project concept in early, 1993. 0 JDP:ds Respectfull submitted, James eie osser Execu irec tor RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7021 NICOLLET AVENUE SOUTH 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: 7021 Nicollet - UnDlatted 34 028 24 Commencing 330 6/10 feet S. of N.W. corner of N.E. 1/4 TH S. 59 5/10 feet TH E. 166 38/100 feet TH N. 59 5/10 feet to a point 166 39/100 feet E. of Beginning TH W. to Beginning Except Road. 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; and • WHEREAS, funds have been provided by the City Council and HRA and are available for acquisition. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: 1. That purchase price of $16,650 is approved. 2. That the Chairperson and Executive. Director are authorized to execute a Purchase Agreement and other documents as necessary to effectuate the purchase of this property. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield Minnesota this 16th day of November, 1992. Thomas E. Harms, Chairperson ATTEST: • Joan Helmberger, Secretary HOUSING AND REDEVELOPMENT AUTHORITY • HRA Letter No. 30 Agenda November 16, 1992 Issue Statement: Authorization to acquire 6634 Fourth Avenue and request City Council to authorize acquisition and disposition of site to the HRA. Background: Since 1980, the HRA has utilized the Voluntary Acquisition Program and CDBG funds to acquire substandard or under utilized residential properties for redevelopment. The Vo-Tech and private contractors have developed these sites with new housing units for moderate income families. The structure at 6634 Fourth Avenue is substandard as to size and condition. With a standard lot size of 50' x 128' and a location in a residentially zoned neighborhood, the lot is suitable for the development of a new single family home. An independent appraiser from BCL Appraisals, Inc. valued the property at $48,000. Staff has negotiated a purchase price of $48,000 pending authorization by the HRA and City Council. The remainder of YR XVII and a portion of YR XVIII CDGB funds are available for this purchase. HUD rules require that the City purchase the property for fair • market value, $48,000. The subsequent transfer of the property to the HRA would require a $1.00 payment. The City Council could consider the purchase of the property on November 23, 1992 if requested by the HRA. The sale from the City to the HRA requires a public hearing and passage of a transitory ordinance. If authorized, acquisition by the City can occur any time after November 23, 1992. Transfer of the property to the HRA could occur in early February 1993, when the transitory ordinance becomes effective. The seller is currently on a waiting list for senior housing. Staff wishes to be flexible on the closing date, to allow the seller time to arrange a new residence. Acquisition will occur no later than April 1, 1993. The HRA would be responsible for property maintenance following acquisition and site clearance following transfer of the property from the City. The 1992 revised/1993 budget provides $4,500 to clear the site (source: CDGB XVIII), $600 for legal work to acquire (source: CDBG XVII) and $200 for property maintenance and insurance (source: proceeds of sale of 1992 Vo-Tech project). It is anticipated that Vo-Tech could build a new house on site starting in spring 1993. Staff is developing a plan, budget, and contracts for consideration by the HRA in early 1993. Recommended Motion: It is recommended that the HRA: • 1. Request the City Council on November 23, 1992 to authorize acquisition of 6634 Fourth Avenue and disposition of the property to the HRA. 2. Adopt the attached resolution which authorizes the Chairperson and Executive Director to enter into a purchase agreement with the City and take other actions necessary to acquire 6634 Fourth Avenue for $1.00. Basis of Recommendation: 1. The owner is interested in selling to the City through the Voluntary Acquisition Program. 2. The property qualifies for acquisition in accordance with the Voluntary Acquisition Program Guidelines. 3. Funds have been budgeted for acquisition, clearance, and maintenance. CDBG funds must be committed prior to December 30, 1992 or be returned to Hennepin County. 4. The subject property is available at this time and can be purchased given the limited funds. 5. The Planning Commission has determined the acquisition and disposition of this property for single family purposes would be in conformance with the Comprehensive Plan. 6. New HUD rules require a process in which the City acquires the property and transfers the property to the HRA. Alternative Recommendation: is The HRA can choose not to acquire the property. However, staff has no alternative for timely commitment of CDBG funds and the development of a future Vo-Tech project. Discussion/Decision Mode: Pending HRA and City Council authorization, the property could be acquired any time after November 23, 1992. RJtDive ully submitted, J Prosser E Director JDP:ds RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AUTHORIZING THE ACQUISITION OF 6634 FOURTH AVENUE WHEREAS, the Housing and Redevelopment Authority in and for the City'of Richfield, Minnesota (HRA) acquires property and builds and rehabilitates structures for residential purposes; and WHEREAS, the HRA desires to acquire the real property at 6634 Fourth Avenue, legally described as: Lot 9, Block 3 "McCutchan's Portland Avenue Park"; and WHEREAS, the owner of 6634 Fourth Avenue, has volunteered to sell her property for $48,000; and WHEREAS, Community Development Block Grant (CDBG) funds will finance the acquisition of this parcel; and WHEREAS, the Planning Commission has made a finding that the acquisition and disposition of this parcel for residential purposes is consistent with the Comprehensive Plan. • NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, as follows: 1) The Executive Director is authorized to request the City Council to consider the purchase of 6634 Fourth Avenue for $48,000. 2) The HRA Chairperson and Executive Director are authorized to take necessary actions to purchase the property located at 6634 Fourth Avenue for $1.00. . Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of November, 1992. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary L J