08-17-92 agendaCITY OF RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, AUGUST 17, 1992
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF JULY 20, 1992
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. CONSIDERATION OF RESOLUTION RELATING TO ISSUANCE OF
COMPLETION CERTIFICATES FOR RICHFIELD REDISCOVERED
PROPERTIES AT 7129 FIRST, 6401 BLOOMINGTON, 6612 SECOND, AND
6321 HUMBOLDT AVENUES
HRA LETTER NO. 21
3. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF REAL PROPERTY LOCATED AT 6415 15TH AVENUE TO MARLIN
GRANT HOMES, INC. IN ACCORDANCE WITH DEVELOPMENT AGREEMENT
HRA LETTER NO. 22
4. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF
PROPERTIES FOR RICHFIELD REDISCOVERED
HRA LETTER NO. 23
5. CONSIDERATION OF RESOLUTION RELATING TO VO-TECH AGREEMENT FOR
6538 BLOOMINGTON AVENUE
HRA LETTER NO. 24
6. CONSIDERATION OF SETTING A SPECIAL HRA MEETING ON AUGUST 31,
1992 TO CONSIDER AND ADOPT PRELIMINARY TAX LEVY FOR 1993
HRA LETTER NO. 25
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. 25
.Agenda August 17, 1992
Issue Statement:
Setting of a special HRA meeting on August 31, 1992 to consider
and adopt a preliminary tax levy for 1993.
Background•
The State Truth in Taxation law established a certain process
which must be followed in the adoption of tax levies for cities,
counties, schools and special taxing authorities. As a special
taxing authority, the HRA must comply with the statutory timeline
for adopting a preliminary tax levy.
Under the State Statute, the final deadline for submitting a 1993
preliminary tax levy to the County is September 15, 1992. In
order to comply with this time frame and allow ample time for
both the HRA and City levy adoption process, it will be necessary
to call a special meeting of the HRA on August 31, 1992 to
consider the 1993 budget and preliminary levy. Budget materials
will not be available in time for the .regular August 17, 1992 HRA
meeting.
Recommended Motion:
Call a special meeting of the HRA on August 31, 1992 to consider
the 1993 proposed HRA budget and preliminary property tax levy.
Basis of Recommendation:
• 1. State Statute provides a mandatory timeline which must be-
t. Scheduling of the process will necessitate a special meeting
of the. HRA to consider the matter.
3. August 31, 1992 is the most appropriate date for the special
meeting.
Alternative Recommendation:
1. The HRA could select a different day for the special meeting.
However, it would be critical that any alternate date
selected fit into the cities' statutory schedule for the
adoption of a preliminary tax levy.
Discussion/Decision Mode:
City staff feel it is extremely important that a special meeting
be called for the recommended date to consider the budget and
preliminary levy.
Resp ct ully submitte ,
~~v,
ch
• Acting Executive Director
SLD:cak
followed for adoption of a preliminary tax levy.
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 24
Agenda August 17,.1992
Issue Statement:
Authorization to execute contract with South Hennepin Vocational
Technical College (Vo-Tech) to construct a new house at 6538
Bloomington Avenue.
Background•
Under the Richfield-Rediscovered Program, the HRA purchased the
property at 6538 Bloomington Avenue in October 1990. Demolition
of the existing structure was completed in December 1990. The
property has been marketed on a continuing basis since November
1990. No interest has been expressed by builders or buyers to
develop the site. Buyers may have perceived the 17 other-1991
Richfield-Rediscovered sites to be better choices. Those sites
have all been developed or .are in the process of being developed.
Proposed Development
Given that the site remains available for development, staff has
evaluated alternate ways to achieve the Richfield-Rediscovered
objective of providing a larger home with desirable features and
a finished land and building value in excess of $85,000.
In cooperation with Vo-Tech, a plan has been developed which
provides:
• a traditional 1-1/2 story Richfield style home;
• • 1,630 square feet of finished floor space;
• approximately 900 sq. ft. of easily finished space in
the basement;
• a formal and informal dining area;
• three large bedrooms;
• two bathrooms;
• a patio deck;
• a double garage;
• air conditioning; and
• a fireplace.
The new home would be marketed as a Richfield-Rediscovered
project. As CDBG funds will not be utilized in the project,
there will be no first-time buyer or income limit requirements.
However, the high quality of a Vo-Tech project including the
above amenities should overcome. previous market place resistance
to the site.
Vo-Tech Construction Schedule
Currently, the four Vo-Tech projects at 7528 Colfax, 6501
Bloomington, 6318 and 6803 Nicollet Avenues are progressing on
schedule.
The Vo-Tech meets its curriculum needs by providing a variety of
training opportunities. This requires having different projects
underway at different stages of construction. To fulfill their
1992 school year curriculum, Vo-Tech must initiate a stick-built
project (built on site from the ground up) in September with
completion expected in September 1993. By the end of 1992, 6501
15th Avenue will be the only project underway.
Project Cost/Market Status
Based on a review by the Hennepin County Assessor, the house
planned for the site is expected to have a value at completion of
approximately 5105,000. BCL Appraisals has evaluated the
neighborhood and is confident that houses valued between $87,000
and $105,000 are suitable. Richfield-Rediscovered experience
suggests that the market place may be willing to invest even more
in this area:
• 6401 Bloomington - $108,000
• 6407 15th - $111,000
• 6415 15th - $138,000
To better evaluate this special Vo-Tech project, Marlin Grant
Homes, Inc. was requested to estimate their cost of construction
(labor, materials and builder profit). They estimated it would
be $105,000. The Vo-Tech contract price to construct the home
would be $85,949. These costs do not include the land value or
. landscaping. It is
approximate $2,500.
marketed in a range
returned to the pro
$14,550. Cash flow
positive with these
estimated that landscaping costs would
Staff anticipates the completed house to be
-from $98,000 to $103,000. Land proceeds
ject after expenses would range from $9,550 to
for-the completed Phase I project remain
proceeds.
Market rate amenities consistent with other Richfield-
Rediscovered efforts to be provided include:
• double garage;
• formal and informal dining;
• significant square footage available for finishing to
provide a total of 2,530 sq. ft.;
• air conditioning; and
• fireplace.
Since this is not a project specifically for first-time home
buyers, the Vo-Tech contract price is higher because:
• The larger 1-1/2 story design with a full basement and garage
requires more lumber and finishing materials than split entry
and one story construction.
• The larger home increases interior and exterior painting
costs by a sub-contractor.
• Special amenities such as the garage, air conditioning and a
fire place have not been included in past Vo-Tech new
construction projects.
Recommended Motion:
Adopt the attached resolution which authorizes the execution of
the Vo-Tech contract in the amount of 585,949, for the 1992/93
new construction project at 6538 Bloomington Avenue.'
Basis of Recommendation:
1. Vo-Tech is ready to initiate its next onsite construction
project with the HRA for the 1992/1993 school year.
2. The HRA has a development site available.
3. Vo-Tech has demonstrated that they have adjusted to a
curriculum change and can stay on an appropriate schedule.
4. The contract provisions are similar to previous. contracts
with Vo-Tech, with a not to exceed construction price of
585,949. Final payments are based on actual construction
receipts. Staff believes the price to be representative for
the scope of work.
5. There has been no builder/buyer interest in the site.
6. Vo-Tech is uniquely suited to providing a desirable market
rate product at a more modest cost than other builders.
M 7. Leaving the site vacant may cause a blighting influence.
8. The Vo-Tech/HRA relationship has provided desirable housing.
9. A meeting was held August 13, 1992 to review the project with
neighbors.
Alternative Recommendation:
Do not authorize execution of the Vo-Tech contract.
Discussion/Decision:
Approval is required at the August meeting for Vo-Tech to include
the project in their 1992-93 curriculum schedule.
t$ully subt){-itted,
1.7 V G V Gi l L• LG V 1 ~.,~ 13
Acting Executive Director
SLD:cak
i
RESOLUTION NO.
• THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO VO-TECH AGREEMENT FOR
6538 BLOOMINGTON AVENUE SOUTH
WHEREAS, the Housing and Redevelopment Authority (HRA) is
the owner of the real property at 6538 Bloomington Avenue,
legally described as:
Lot 8, Block 5, Nokomis Gardens Rearrangement of Blocks
1, 2, 3, 4, and 5, Girard Parkview Addn.
WHEREAS, a project has been proposed in cooperation with
South Hennepin Vocational Technical Center (Vo-Tech); and
WHEREAS, the property at 6538 Bloomington Avenue would be
developed with new construction; and
WHEREAS, the Agreement price for the new construction
project will not exceed $85,949; and
WHEREAS, following completion of the new construction work,
the property will be sold at market rate.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota that the HRA Chairperson and Executive Director are
authorized to enter into a construction agreement for an amount
not to exceed $85,949 for the new construction project at 6538
Bloomington Avenue.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 17th day of August,
1992.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
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•
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 23
Agenda August 17, 1992
Issue Statement•
Adoption of a resolution authorizing the negotiation and purchase
of property for Richfield Rediscovered.
Background•
In July 1992, the HRA reviewed and approved Phase II of the
Richfield Rediscovered Program. Nine substandard sites have been
identified for purchase and values have been determined by BCL
Appraisal.
Address Appraised Value
7520 Bryant $37,800
7528 Bryant $45,000
7500 Bryant $58,000
6641 Oliver 542,000
6539 Oliver $40,000
6924 Newton 545,000
6926 Chicago $44,000
6608 Stevens $44,000
7124 Washburn $52,200
Staff is prepared to negotiate purchases at a price which does
• not exceed the stated values.
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.
Basis of Recommendation:
1. The properties meet program requirements for acquisition and
are identified in the 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. .Authorization to purchase is contingent on:
• A City Council public hearing on August 24, 1992 concerning
the Richfield Rediscovered redevelopment and tax increment
finance plan.
• • Seller acceptance of an HRA offer.
. • Staff identifying a builder/buyer team that will purchase
the site for redevelopment.
Alternative Recommendation:
Not authorize acquisition.
Discussion/Decision Mode:
Agreement to purchase would be negotiated after the City Council
public hearing on August 24, 1992.
R pec fully submitted,
~~
L.
Acting Executive Director
SLD:cak
u
•
•
RESOLUTION N0.
-THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING PURCHASE OF REAL
PROPERTY LOCATED AT
7520 Bryant
7528 Bryant
7500 Bryant
6641 Oliver
6539
6924 Newton
6926 Chicago
6608 Stevens
7124 Washburn
Oliver
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:
7520 Bryant
7528 Bryant
7500 Bryant
6641 Oliver
6539 Oliver
6924 Newton
6926 Chicago
6608 Stevens
7124 Washburn
Lot 6, Block
Lot 8, Block
Lot 1, and N
Addn."
Lot 6, Block
Lot 12, Blocl
Lot 4, Block
Lot 1 That
23, "Irwin Shores Addn."
23, "Irwin Shores Addn."
1/2 of Lot 2, Block 23, "Irwin Shores
5, "Fairwood Park Addn."
{ 8, "Fairwood Park First Addn."
11, "Tingdale Bros'. Lincoln Hills"
part of the E 1/2 lying N of S 50 ft.
thereof "Chicago Avenue Acres"
- Lot 8, E 1/2 "Goodspeeds' First Plat"
- N. 50 ft. of E. 73 ft. of Lot 62 and N. 50 ft. of
W. 74 48/100 ft. of Lot 63, Lots 62 and 63,
"Sadin Lake Harriet Garden Lots"
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, the HRA has caused appraisals of the subject
properties to be made by a qualified independent professional
real estate appraiser and intends to negotiate purchase prices
with the owners based on stated values; and
• WHEREAS, funds have been provided by the City Council and
HRA and are available for acquisition pending the results of an
August 24, 1992 public hearing concerning the project finance and
tax increment plan.
C~
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. That purchase prices are approved as follows:
Address
7520 Bryant
7528 Bryant
7500 Bryant
6641 Oliver
6539 Oliver
6924 Newton
6926 Chicago
6608 Stevens
7124 Washburn
Anyraised Value
$37,800
545,000
$58,000
542,000
540,000
545,000
544,000
544,000
552,200
2. That the Chairperson and Executive Director are authorized
to execute a Purchase Agreement for the amounts set forth
in this resolution.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield Minnesota this 17th day of August,
1992.
ATTEST:
Joan Helmberger, Secretary
Thomas E. Harms, Chairperson
•
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 22
Agenda August 17, 1992
Issue Statement•
Public hearing and authorization of the sale of a Richfield
Rediscovered property at 6415 15th Avenue to Marlin Grant Homes,
Inc.
Background•
Marlin Grant Homes, Inc. of Bloomington, MN has secured a
purchase agreement from a buyer for the lot at 6415 15th Avenue.
The sale price of the lot will be $22,500. The new house will be
valued at approximately $138,000. (Preliminary plan sheets are
attached).
A development agreement very similar to those used previously
requires Marlin Grant Homes, Inc. to:
• pay the stated lot value 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 $37,411. (This amount is the difference between
the lot price of $22,500 and the total HRA investment in
the property.)
• • complete the home and pay for the lot by December 31, 1992.
• meet design and insurance requirements which are specified.
In July, the HRA authorized the sale of 6407 15th Avenue to
Marlin Grant Homes, Inc. Marlin Grant has already completed one
Richfield Rediscovered home at .6321 Humboldt Avenue. The project
was promptly developed and all of the HRA's financial
requirements were met. Similar success is anticipated at 6415
15th Avenue.
Recommended Motion: `
Conduct the public hearing and subsequently adopt the attached
resolution which authorizes the Chairperson and Executive
Director to execute agreements to sell 6415 15th Avenue to Marlin
Grant Homes, Inc. for development of a new single family home.
Basis of Recommendation:
1. A check of references indicates Marlin Grant Homes, Inc.
is an experienced, capable, financially secure builder.
2. The HRA has the lot at 6415 15th Avenue available 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
August 5, 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 Marlin Grant
Homes, Inc. and direct staff to find another. buyer.
Discussion/Decision Mode:
Marlin Grant. Homes, Inc. hopes to close by the end of August,
1992 and start construction immediately thereafter.
Resp tf lly submitte ,
Steve evich
Acting Executive Director
SLD:cak
•
RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
• CITY OF RICHFIELD
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT 6415 15TH 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:
Lot 17, Block 6 "Girard Parkview", and located at
6415 15th Avenue; and
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 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 6415 15th Avenue is
authorized to be sold to Marlin Grant Homes, Inc.-for
$22,500 in accordance with a development agreement with
the HRA.
2. That 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 17th, day of August,
1992.
• ATTEST:
Thomas E. Harms, Chairperson
Joan Helmberger, Secretary
•
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. ~~
Agenda AuQUSt 17, 1992
• Issue Statement:
Authorization to issue completion certificates to builders for
Richfield. Rediscovered properties at 7129 First, 6401
Bloomington, 6612 Second and 6321 Humboldt Avenues.
Background:
The HRA authorized development of the above referenced properties
in October and November 1991. The builders are RSM Homes, Inc.
(7129 First and 6401 Bloomington.), Mark Johnson Homes, Inc. (6612
Second), and Marlin Grant Homes, Inc. (6321 Humboldt). The
development agreements provide for the issuance of a Certificate
of Completion when construction is completed. (A sample is
attached). Construction was completed in late June and July
1992. All homes have been sold and occupied.
Recommended Motion:
Authorize the Chair and Executive Director to execute completion
certificates in accordance with the attached resoiution.
Basis of Recommendation:
1. Construction has been completed and verified by Inspection
Division staff.
2. Builders have performed in accordance with construction
agreements and requested the issuance of completion
. certificates and the release of the performance security in
the following amounts:
Performance
Security
Builder Property Address Amount
RMS Homes, Inc. 7129 First Avenue $34,990
RMS Homes, Inc. 6401 Bloomington $31,610
Mark Johnson, Const.
Inc. 6612 Second Avenue $26,149
Marlin Grant Homes,
Inc. 6321 Humboldt Avenue $32,400
Alternative Recommendation:
Do not issue Certificates of Completion at this time.
Discussion/Decision Mode:
The HRA may not unreasonably withhold approval of this request.
Re fully u mitted,
~'~l
Steven L. Devic
Acting Executive Director.
i SLD:cak
RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
• IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO THE ISSUANCE
OF COMPLETION CERTIFICATES FOR RICHFIELD REDISCOVERED
PROPERTIES AT
7129 FIRST, 6401 BLOOMINGTON, 6612 SECOND,
AND 6321 HUMBOLDT AVENUE SOUTH
WHEREAS, in October and November 1991, the Richfield Housing
and Redevelopment Authority (HRA) entered into contracts with
builders for the construction of single family homes; and
WHEREAS, the builders and new home locations are as follows:
RSM Homes, Inc. - 7129 First and 6401 Bloomington Avenue; Mark
Johnson Construction, Inc. - 6612 Second Avenue; Marlin Grant
Homes, Inc. - 6321 Humboldt Avenue; and
WHEREAS, the construction agreements required the
construction of homes 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
following amounts can be released: RSM Homes, Inc. - 566,600;
. Mark Johnson Construction, Inc. - 526,149; and Marlin Grant
Homes, Inc. - 532,400.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment authority in and for the City of Richfield,
Minnesota that,
1. Completion Certificates be issued for 7129 First, 6401
Bloomington, 6612 Second, and 6321 Humboldt Avenue.
2. The performance security be released.
Passed by the Housing and Redevelopment Authority of
Richfield this 17th day of August, 1992.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
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EXHIBIT A
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Marv Anderson Homes, Inc.
has fully and completely complied with its obligations under
article IV of that document entitle "Contract for Private
Development", dated 1992, between the HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD
MINNESOTA, a 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:
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
By
Its Chairperson
By
Its Executive Director