10-19-92 agendaCITY OF RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, OCTOBER 19, 1992
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF SPECIAL HRA MEETING OF AUGUST 24, 1992
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. CONSIDERATION OF RESOLUTION AUTHORIZING ISSUANCE OF
COMPLETION CERTIFICATE TO GLENN WISSER FOR RICHFIELD
REDISCOVERED PROPERTY AT 6313 MORGAN AVENUE
HRA LETTER NO. 27
• 3. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF REAL
PROPERTY FOR RICHFIELD REDISCOVERED AT 6912 OLIVER AVENUE
HRA LETTER NO. 28
4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF RICHFIELD REDISCOVERED PROPERTY AT 7500 BRYANT AVENUE
AND 6641 OLIVER AVENUE TO MARLIN GRANT HOMES, INC. IN
ACCORDANCE WITH DEVELOPMENT AGREEMENT
HRA LETTER NO. 29
5. EXECUTIVE DIRECTOR REPORT
6. 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. 29
Agenda October 19, 1992
Issue Statement:
Public hearing and authorization of the sale of Richfield
Rediscovered property at 7500 Bryant Avenue and 6641 Oliver
Avenue to Marlin Grant Homes, Inc.
Background:
In August 1992, the HRA authorized the acquisition of property at
7500 Bryant Avenue and 6641 Oliver Avenue under the Richfield
Rediscovered program. In recent weeks, a builder/buyer team has
been identified, made a nonrefundable $500 deposit and entered
into required development agreements.
Marlin Grant Homes, Inc. of Bloomington, MN, has secured purchase
agreements from buyers for the lots at 7500 Bryant and 6641
Oliver Avenue and signed a development agreement for the HRA to
consider. The sale price of the lots will be $29,500 for 7500
Bryant and $30,000 for 6641 Oliver. The new homes will be valued
at approximately $150,000 (7500 Bryant) and $160,000 (6641
Oliver).
Under the program revisions approved by the HRA, the developer is
now 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 determing the credit. The credits are $4,820 for 7500
Bryant and $4,500 for 6641 Oliver. This approach reduces staff
time in adminstering clearance activities and more efficiently
redevelops the site. The builder removes the old dwelling and
thereby, has the equipment and the excavation ready to start
construction.
In all other respects, the development agreements form remains
essentially unchanged from those previously used for Richfield
Rediscovered.
The agreements require Marlin Grant Homes, Inc. 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 $29,500 for 7500 Bryant and $30,000 for 6641 Oliver.
(The security amount is the difference between the lot price
and the total HRA investment in the property or the lot price,
which ever is greater).
? complete the home at 6641 Oliver and pay for the lot by
April 1993; and
•
i
? complete the home at 7500 Bryant and pay for the lot by
April 1993.
Marlin Grant, previously President of Marv Anderson Homes, has
already completed one Richfield Rediscovered home at 6321
Humboldt Avenue with his new construction company. The project
was promptly developed and all of the HRA's financial
requirements were met. In addition, Marlin Grant Construction
currently has projects underway and progressing on schedule at
6407 and 6415 15th Avenue.
Recommended Motion:
Following the public hearing, adopt the attached resolution which
authorizes the Chair and Executive Director to execute agreements
which sell 7500 Bryant and 6641 Oliver Avenues to Marlin Grant
Homes, Inc. for the development of new single family homes.
Basis of Recommendation:
1. A check of references indicates Marlin Grant Homes, Inc.
is an experienced, capable, financially secure builder.
2. The HRA has authorized the acquisition of lots at 7500 Bryant
and 6641 Oliver 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
October 7, 1992.
5. Previously, the Planning Commission found the sale of the
lots for development of a new home to be in conformance with
the City's comprehensive plan.
Alternative Recommendation:
Do not proceed with development agreements with Marlin Grant
Homes, Inc. and direct staff to find other buyers.
Discussion/Decision Mode:
Closings may occur as early as the end of October 1992, with
site clearance and construction starting shortly thereafter.
Respect lly submitted,
James Prosser
Executive Director
JDP:ds
is
0 RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT 7500 BRYANT AVENUE AND
6641 OLIVER AVENUE
TO MARLIN GRANT HOMES, INC., 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:
7500 Bryant Lot 1 and N 1/2 of Lot 2, Block 23, "Irwin Shores
Addn."
6641 Oliver Lot 6, Block 5 "Fairwood Park Addn."
WHEREAS, the HRA is authorized to sell real property within
is its area of operation after public hearing; and
WHEREAS, a developer, Marlin Grant Homes, Inc. of
Bloomington 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 7500 Bryant Avenue and
6641 Oliver Avenue are authorized to be sold to Marlin Grant
Homes, Inc. in accordance with a development agreement with
the HRA.
2. The purchase price for 7500 Bryant is $29,500.
3. The purchase price for 6641 Oliver is $30,000.
4. That the Chairperson and Executive Director are authorized
to execute the Development Agreements 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 October,
1992.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
C?
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 28
Agenda October 19, 1992
Issue Statement:
Adoption of a resolution authorizing the purchase of property for
Richfield Rediscovered.
Background:
In August 1992, the HRA authorized the purchase of nine
substandard properties for redevelopment through the Richfield
Rediscovered program. Negotiations are being finalized.
However, one of the nine sites, (6924 Newton) a VA foreclosure,
was sold by HUD before an offer could be finalized. Staff has
identified an alternative site for acquisition.
The house at 6912 Oliver is substandard and has a significant
list of work orders from the City Inspection Division. The
owner, with realtor assistance, attempted to sell the property
for $50,000 this summer even though the Hennepin County Assessor
has a 1992 estimated market value of $64;900 for property tax
purposes. The owner is at a decision point wherein significant
roof, stucco and electrical repairs must be initiated. The owner
has proposed that the HRA purchase the property for $45,000 as
part of the Richfield Rediscovered program. Staff experience
with 23 previous Richfield Rediscovered acquisitons suggests,
• without further appraisal expense, that this is a reasonable.
price for this home and lot.
Recommended Motion:
Adopt the attached resolution which authorizes:
1. The purchase of 6912 Oliver for $45,000.
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
their property to the HRA.
4. Two builders have already indicated interest in building on
the site, although an end buyer has not yet been identified.
Alternative Recommendation:
Not authorize acquisition.
Discussion/Decision Mode:
Staff would finalize purchase agreements and verify builder
interest during November 1992.
Respectf ly submitted,
James F-Prosser
Execut a Director
JDP:ds
F-I
L
0
RESOLUTION NO.
• THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING PURCHASE OF REAL
PROPERTY LOCATED AT 6912 OLIVER 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:
6912 Oliver - Lot 4, Block 10, Tingdale Bros Lincoln Hills
Addition
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.
0 NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. That purchase price of $45,000 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 19th day of October,
1992.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
•
11
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 27
Agenda October 19, 1992
Issue Statement:
Authorization to issue a Completion Certificate to Glenn Wisser
for the Richfield Rediscovered property at 6313 Morgan Avenue.
Background:
The HRA authorized development of the above referenced property
in March 1992. The development agreement provides for the
issuance of a Certificate of Completion when construction is
completed. Construction was completed in September 1992. The
home is occupied by Mr. Wisser as his permanent residence.
Recommended Motion:
Authorize the Chair and Executive Director to execute a
Completion Certificate in accordance with the attached
resolution.
Basis of Recommendation:
1. Construction has been completed and verified by Inspection
Division staff.
2. The builder has performed in accordance with the construction
agreement and requested the issuance of a Completion
Certificate and the release of the performance security in
the amount of $28,742.00.
Alternative Recommendation:
Do not issue the Certificate of Completion at this time.
Discussion/Decision Mode:
The HRA may not unreasonably withhold approval of this request.
Respectf ly submitted,
James Prosser
Execute Director
JDP:ds
• RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO THE ISSUANCE
OF A COMPLETION CERTIFICATE FOR RICHFIELD REDISCOVERED
PROPERTY AT
6313 MORGAN AVENUE
WHEREAS, in March 1992, the Richfield Housing and
Redevelopment Authority (HRA) entered into a contract with Glenn
Wisser for the construction of a single family home at 6313
Morgan Avenue; and,
WHEREAS, the construction agreement required the
construction of a new home and upon completion, the issuance of a
Completion Certificate and the release of performance security;
and,
WHEREAS, staff has verified by visual inspection that
construction is completed and that performance security in the
amount of $28,742.00 can be released to Glenn Wisser.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
• Redevelopment authority in and for the City of Richfield,
Minnesota that,
1. A Completion Certificate be issued for 6313 Morgan
Avenue.
2. The performance security be released.
Passed by the Housing and Redevelopment Authority of
Richfield this 19th day of October, 1992.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
n
U
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", dated between the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota with respect to construction of the Improvements 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
Its Chairperson
By
Its Executive Director
1?
18