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09-17-90 agendaHousing and Redevelopment Authority HRA Letter No. 22 Agenda September 17, 1990 Issue Statement: - Adoption of resolution authorizing the purchase of 7210 and 7145 James Avenue, 6425 and 6518 15th Avenue, 7320 5th Avenue and 6315 Dupont Avenue. Background: In July, 1990, the HRA and City Council approved the Expanded New Home Program Redevelopment and Tax Increment Financing Plans. The two basic objectives of the program are to: 1. Create a voluntary market for substandard poor quality housing; and 2. Provide sites for new homes with features attractive to families. Six qualifying properties have been voluntarily offered to the HRA for purchase in September, 1990. The six properties are listed at the beginning of this letter and in the attached resolution. Following acquisition, the properties would be cleared by the HRA in preparation for the construction of new single family homes. The six properties were appraised by Ron Lachenmayer of BCL Appraisals, Inc., a firm which has performed appraisals for the HRA in the past. Purchase prices have been negotiated with sellers, based on the appraisals. The six sellers have entered into purchase agreements at the values indicated in the resolution which total $303,850. Funding sources have been identified and approved by the HRA and City Council to pay for these acquisitions. Recommended Motion: Adopt the attached resolution which authorizes: ? 1. The purchase of the property 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. 2. Funding for acquisition is available. 3. The owners have voluntarily indicated an interest in selling their property to the HRA. • Alternative Recommendation: Not authorize acquisition. Discussion/Decision Mode: Acquisition in September 1990 would facilitate site clearance and new construction by yearend. • Respectfu y submitted, James f-?rosser Executive Director JDP:ds u 0 RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7210 James Avenue 7145 James Avenue 6425 15th Avenue 6518 15th Avenue 7320 5th Avenue 6315 Dupont Avenue t 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 Expanded New Home Program Redevelopment Project (Project) heretofore adopted by the City of Richfield (City) and the HRA, said real properties being described as follows: Tract B, RLS No. 770, Files of the Registrar of Titles Lots 8 and all of Lot 9 except the North 40 feet thereof, Block 2 of Forest Lawn Second Lot 16, Block 6 Girard Parkview Lot 5, Block 4 "Nokomis Gardens Rearrangement" of Block One (1), Two (2), Three (3), Four (4) and Five (5), Girard Parkview Lot 6, Block 2, "Blair's Woodale Third Addition" Lot 8, 9, and 10, Block 4, "Ray's Lynnhurst 2nd 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, the HRA has caused appraisals of the subject properties to be made by a qualified independent professional real estate appraiser and negotiated purchase prices with the owners; 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 prices are approved as follows: 7210 James Avenue $50,000 7145 James Avenue $53,250 6425 15th Avenue $37,500 6518 15th Avenue $44,100 7320 5th Avenue $60,000 6315 Dupont Avenue $59,000 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 September, 1990. Thomas E. Harms, Chairperson U ATTEST: Joan Helmberger, Secretary • 11 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 23 Agenda September 17, 1990 Issue Statement: Selection of Marv Anderson Homes, Inc., as the builder for the Expanded New Home Program (ENHP), and a public hearing to authorize the sale of 7210 and 7145 James Avenue, 6425 and 6518 15th Avenue, 7320 5th Avenue, and 6315 Dupont Avenue to the builder. Background: In July, 1990, the HRA and City Council approved the Expanded New Home Program. The two basic objectives of the program are to: 1. Create a voluntary market for substandard poor quality housing; and 2. Provide sites for new market priced homes with features attractive to families. Staff has identified an experienced, quality and financially capable builder. Marv Anderson Homes Inc., of Bloomington, a division of Pulte Home Corporation, has 38 years of building experience, a reputation for quality construction and service, and the ability to meet the financial requirements of the program. As this letter was being prepared, the development agreement was being negotiated with Marlin Grant, President of Marv Anderson Homes. Mr. Grant will attend the September 17 HRA meeting. The objective of the development agreement is to achieve the market rate sale of land and the construction of market rate sYngle family homes that exceed values which presently exist in fully developed neighborhoods. (The draft agreement was presented to the HRA in June, 1990 prior to the identification of the developer.) Marv Anderson and the HRA assume reasonable development risks for this creative concept. Development requirements also reflect the market rate theme and have been kept to the minimum needed to meet the HRA's objectives. The development agreement requires: a minimum market price for seven development sites with Marv Anderson paying an average of approximately $27,500 per property and a total of $192,600. (A further provision provides additional land proceeds to the HRA if homes with higher values than expected are sold to the buyers.) performance within a timeframe with approximately $18,570 set aside by Marv Anderson per property or, $130,000 total. This amount equals the HRA writedown and demolition costs. The HRA can draw on this escrow account if Anderson fails to perform. • - seven new homes with a total range of values approximating $795,500 to $888,000 replacing substandard homes valued at a total of $303,850. The development agreement has new features which vary from the June draft: - an assessment agreement is not required. This agreement appears to hinder the marketing and sale of single family homes to otherwise willing buyers. - an environmental hazard and soil assessment will be performed by the HRA to provide sufficient information to Marv Anderson that suitable building conditions do exist. - a joint marketing effort by the HRA and Marv Anderson to identify buyers. a contingency that the Pulte Homes Corporation of Bloomfield Hills, Michigan will review and approve the content of the agreement executed by Marv Anderson. This approval would be sought pending the HRA action on September 17. "If the HRA concurs with the recommendation to enter into development agreements with Marv Anderson Homes, Inc., a public hearing should be held which authorizes the sale of land to Marv Anderson at prices summarized in the attached resolution. The Planning Commission has previously made a finding that the acquisition and disposition of these properties for residential purposes is consistent with the comprehensive plan. Recommended Motion: Adopt the attached resolution which authorizes the Chairperson and Executive Director to execute agreements to sell acquired Expanded New Home Program sites for development of new single family homes to Marv Anderson Inc. Basis of Recommendation: 1. Marv Anderson Inc., is an experienced, quality oriented, capable builder. 2. The HRA,has authorized the purchase of properties for development. 0 3. A development agreement has been negotiated and executed by Marv Anderson Inc., to initiate development. 4. Builder and HRA risks have been balanced with the intent of minimizing HRA subsidy and ensuring development performance. 5. Proper notice of public hearing has been published which provides the opportunity for the HRA to consider the sale of the identified properties to Marv Anderson, Inc. 6. An analysis completed by staff with assistance from Evenson- Dodge concluded that the payback of the funds borrowed by tax increment may have improved slightly if there are no unusual problems encountered during the redevelopment process. That is, given the mix of costs and values with the property proposed for sale to Anderson, the payback could be accomplished in 22 years rather than 23 years as indicated in the July projection. Alternative Recommendation: Do not proceed with a development agreement with Marv Anderson Homes, Inc. and terminate or continue the public hearing to sell the identified properties at a later time to another builder if identified. Discussion/Decision Mode: Authorization of a builder and the sale of properties in September, 1990, would facilitate site clearance and new construction by year end. Approval of the agreement by the Pulte Corporation is expected to take approximately 10 days. Respectfully Submitted, Jam s Prosser Exec ive Director JDP:ds 0 RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7210 James Avenue 7145 James Avenue 6425 15th Avenue 6518 15th Avenue 7320 5th Avenue 6315 Dupont Avenue To Marv Anderson 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 Expanded New Home Program Redevelopment Project (Project) heretofore adopted by the City of Richfield (City) and the HRA, said real properties being described as follows: Tract B, RLS No. 770, Files of the Registrar of Titles; and, 9 Lots 8 and all of Lot 9 except the North 40 feet thereof, Block 2 of Forest Lawn Second; and, Lot 16, Block 6 Girard Parkview; and, Lot 5, Block 4 "Nokomis Gardens Rearrangement" of Block One (1), Two (2), Three (3), Four (4) and Five (5), Girard Parkview; and, Lot 6, Block 2, "Blair's Woodale Third Addition" Lot 8, 9, and 10, Block 4, "Ray's Lynnhurst 2nd Addition". WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and, WHEREAS, a developer, Marv Anderson Inc., 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 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 the following properties are sold to Marv Anderson, Inc., in accordance with•a development agreement with the HRA: 7210 James Avenue 7145 James Avenue 6425 15th Avenue 6518 15th Avenue 73205th Avenue 6315 Dupont Avenue 2. That the Chairperson and Executive Director are authorized to execute the Development Agreement with Marv Anderson, Inc., Adopted by the Housing and Redevelopment Authority in and for the City of Richfield Minnesota this 17th day of September, 1990. Thomas E. Harms, Chairperson 0 ATTEST: Joan Helmberger, Secretary 0 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 24 Agenda September 17, 1990 Issue Statement: • Award of Demolition Contract for properties acquired under the Expanded New Home Program. Background: The Richfield Expanded New Home Program was approved by the HRA on July 16, 1990. Under this program, properties containing small garage and cottage homes will be purchased by the HRA. The HRA will be responsible for demolition of the structures. The sites will be redeveloped with new single family homes by a private builder. Twenty-seven properties have been offered to the HRA for acquisition in 1990. It is likely 21 of the 27 properties could be purchased in the near future. Through a public bidding process, demolition and site clearance bids were obtained for these 21 properties. The specifications clearly state that the HRA reserves the right to withdraw a site or sites from the overall contract in the event that a purchase does not occur. The 21 properties were divided according to the likely timing of their acquisition. Thus, bids were received for three separate projects. The projects are identified•on the attached Bid Summary List. S. R. Stevens is the lowest responsible bidder for Project I (seven sites; $21,467.60) and III (four sites; $18,885.20). Ceres Contracting is the lowest responsible bidder for Project II (ten sites; $41,662). The total demolition cost for all three projects is $82,014.80. This is well within budgeted funds available. The bids were opened at the August 28, 1990 Public Bid Opening. Selected contractor will be provided five days in which to sign the demolition contract. If the contractor fails to sign the demolition contract within the required five days, the next lowest bidder will be awarded the contract. Recommendation: Adopt the attached resolution which awards demolition and site clearance contracts to S. R. Stevens for Project I in the amount of $21,467.60, and Project III in the amount of $18,855.20; and to Ceres Contracting for Project II in the amount of $41,662. Basis for Recommendation: 1. A public bidding process was used to obtain bids for the demolition and site clearance for properties acquired under the Expanded New Home Program. 2. In accordance with Minnesota Statutes Section 469.015, bids must be awarded to the lowest responsible bidder. 0 3. S. R. Stevens has provided responsible demolition services to the HRA on several occasions. 4. The HRA has not worked with Ceres Contracting before. However, they were referred to the HRA by the Minneapolis Community Development Agency, where Ceres has provided similar services satisfactorily. 5. Demolition work is anticipated to begin in late September. Alternative Recommendation: 1. Do not award demolition contracts at the September 17th meeting. 2. Reject all bids and seek additional bids. Discussion/Decision Mode: Award of the demolition contracts at the September 17th meeting will enable timely demolition and site clearance of properties purchased under the Expanded New Home Program in late September and October, 1990. Respectfully submitted, James Prosser Executa Director is JDP:ds E t • EXPANDED NEW HOME PROGRAM PUBLIC BID OPENING SUMMARY FOR DEMOLITION The following bids were received and opened at a public-bid opening on August 28, 1990 at 11:00 A.M., City Hall. In attendance were City Clerk Tom Ferber, Director Byron Wallace and staff persons Cheryl Krumholz and Diane Nordquist. Bid For Bid For Bid For Contractor Project I Project II Project III S.R. Stevens $21,467.60 No Bid $18,885.20 Ceres Contracting $23,822.00 $41,662.00 $19,404.00 Holst Excavating $37,462.00 $58,335.00 $25,750.00 Carl Bolander $42,869.00 $57,560.00 $29,126.00 Project I 1. 6501 15th Avenue 2. 7145 James Avenue 3. 7320 5th Avenue 4. 6425 15th Avenue 5. 6315 Dupont Avenue 6. 6518 15th Avenue 7. 7210 James Avenue • Pro j ect I I 1. 6415 2. 6407 3. 6332 4. 7435 5. 6538 6. 6507 7. 6612 8. 6424 9. 7129 10. 6401 Project III 15th Avenue 15th Avenue 15th Avenue Emerson Avenue Bloomington Avenue Bloomington Avenue 2rid Avenue James Avenue 1st Avenue Bloomington Avenue 1. 6813 Logan Avenue 2. 6400 15th Avenue 3. 6313 Morgan Avenue 4. 6300 Aldrich Avenue 0 RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA AWARDING CONTRACT FOR DEMOLITION AND SITE CLEARANCE OF PROPERTIES PURCHASED UNDER THE EXPANDED NEW HOME PROGRAM WHEREAS, certain properties have been identified for purchase in 1990 under the Expanded New Home Program; and WHEREAS, the demolition work for properties most likely to be acquired were divided into three separate projects; and WHEREAS, the advertisement for bids and a public bid opening were conducted in accordance with Minnesota Statute Section 469.015; and WHEREAS, S. R. Stevens was the lowest responsible bidder for project I and III, and Ceres Construction was the lowest responsible bidder for Project II; and WHEREAS, these contractors will be given five days in which to enter into a contract with the HRA for the demolition work; and WHEREAS, if the contractors do not enter into a contract with the HRA within five days, bids will be awarded to the next lowest bidders as follows: Project I Project II Project III Lowest, responsible S. R. Stevens Ceres Contr. S. R. Stevens . . bidder ($21,467.60) ($41,662.00) ($18,885.20) 2nd lowest, Ceres Contr. Carl Bolander Ceres Contr. responsible bidder ($23,822.00) ($57,560.00) ($19,404.00) 3rd lowest, Holst Excav. Holst Excav. Holst Excav. responsible bidder ($37,462.00) ($58,335.00) ($25,750.00) 4th lowest, Carl Bolander None Carl Bolander responsible bidder ($42,869.00) ($29,126.00) NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield that: 1. Contracts for demolition and site clearance of properties acquired under the Expanded New Home Program be awarded to S. R. Stevens for Projects I and III and Ceres Contracting for Project Ii. • 2. If S. R. contract contract the above Adopted for the City ATTEST: Stevens and/or Ceres Contracting fail to enter into with the HRA within the five day period, the be awarded to the next lowest bidder according to schedule. • by the Housing and Redevelopment Authority in and of Richfield, this 17th day of September, 1990.. Thomas E. Harms, Chairperson Joan Helmberger, Secretary is 0 E O cn W z rr O 01, tm IT W 04N a) OD 0 O O H M err a ? G4 Q O H H U O O Q s~ a) 5 a O r-I a) 9 a) ro a) a Lb O t~ -ri O O x E a) ? U ? C: 0 ?a U 0 ? 3 az x +-) w -ri O •• aai o m 44 U) 3 c0 44 3 E 44 cd r. = M ? 3 >Ez .ri ro +-) a) a) (a4b P 4-) r~ 4-) CO W 44 a •rq O N - a) w ul a) a ago a)=1 P0n 4-) w 4° ON a) 44 Q) 04-) 4-) 00 0) 4-) -U) 4-) G ro O N 4-) r. 0) a) ro E a) s~ Q cG0?0 O -ri p In I~ r-I a) -ir-004 0(aEco 0 cn zO3or. 44 O p w 0 •ri (1) r0 •rl 4-) r-i -rl U OU.0-ri r-I 4a O Jv 44 W -P ro O (1) -ri :$ WUO(1) r-I 4 4a . (0 +? 4-)A0? (1) p E?r0 f0-Ia ro? s aro s? 00 (a ? E a) ri) 4-) A •? (ardU? :$ a)a)p pH 0 Zro0w a 0 fa 0 a) O -r'ri pro A 4-) E 104 a (1) r0 a a) a) 4-) X: U-Z4-) -ri 4-) E U UU N f-I a) O a) U A AA ? E a) r-I S-I wmx 3 s. O p o k a) EA-+00O a a) a) a 'b O b O a) ro r. co r0 a) .ri E A N a) a) 3 O ra A -ri 3 O rq r-I O 44 (1) H co O O O O N O O O -P . N 0 N co LO N •o co r ? -i 14 CC) LO 0) a r'r 1 N r-I N 1 00. ih ih ?a N 0 0 0 N 0 0 0 E ( N o a) m t O t p .r- O cf) ?o LO k z 0o r-i N a LO d+ rn H O O O O O O O N a) to t p N ko co 00 a N N v" H a) a) a) a) a ° ° ° ° z z z z U f~ H z u •ri U x m H ? U) o (a a U) W c?S z 4-) ? iQ cC H a i z ? ? 3 ? O c G G ? W 0) -P O 0 4-) 0 co ?a ? EO a M to a vi , W U U w a) co b a) a) b O O U ro r0 a) ra r-I A R7 a) A rc$ r-I O O 3 O ra A a) A 0) +? O cd •rl A 4-) +-) a) N E ox rorn x U? ? N U ? ?a Ern x a) r-I U a) A a) w a m O A Ei HOUSING AND REDEVELOPMENT AUTHORITY .. HRA Letter No. 25 Agenda September 17, 1990 Issue Statement: Authorization to acquire 6318 Nicollet Avenue. Background: The property at 6318 Nicollet Avenue suffers from considerable deferred maintenance. Property maintenance issues have been a problem since 1984. An uncooperative response by the absentee owner to correct maintenance problems has frustrated city staff and neighboring property owners. Attached is a chronological series of events related to maintenance issues at the property. Staff has explored funding alternatives available to correct the maintenance problems. Rehabilitation by a nonprofit group, purchase mortgage program, rehabilitation grants and loans and volunteer organizations have all been considered. None of these assistance programs were applicable due to the absentee ownership status. _ Recently, two events have occurred which present the HRA with an opportunity to acquire the property: 1. The property is vacant. The tenants have moved out and no lease currently exists. 2. The owner of the property, Charles Buchanan who resides in Missouri, has indicated a preliminary interest in selling the property to the HRA. 3. Mr. Buchanan may be anxious to sell to relieve the code enforcement problems he is experiencing. 4'. The City may have an opportunity to eliminate a housing problem. Following acquisition by the HRA, several options may be available to rehabilitate or rebuild the property. (These options have not yet been fully explored). 1. Rehabilitation by a nonprofit agency 2. Vo-Tech on site rehabilitation project E 3. MHFA purchase mortgage programs (mortgage financing plus home improvement financing) 4. Urban homesteading concept; re sale at reduced cost requiring new owners to complete repairs within a given timefr9me. Before purchase could be completed, a finding by the Planning Commission that acquisition and disposition of the property is in conformance with the comprehensive plan would be needed. A request for that finding is pending at the regularly scheduled meeting of September 25, 1990. An HRA authorization to acquire would be contingent on this finding. The only funding source available for the purchase would be the revenue identified by the HRA and City Council for use in the Expanded New Home Program. Funds would be drawn from the Program. However, it would not be a site within the Expanded New Home Program. The site is outside the Program boundaries. Recommendation: ,l. Discuss the opportunity. 2. If the HRA desires to purchase the property, it should adopt the attached resolution which authorizes purchase at a price not to exceed $58,000 (approximately 9% below the Assessor's valuation of $63,000), and provides funding from the Expanded New Home Program. Basis For Recommendation: 1. The property has been a serious source of maintenance problems :for years. 2. The owner has expressed an interest in selling. 3.. Funds could be made available from the Expanded New Home Program. 4. A purchase not to exceed $58,000 is well below the Assessor's valuation. 5. The property is vacant. 6. Approval by the HRA subject to a favorable Planning Commission finding has been successfully utilized in the past. Alternative Recommendation: 1. Not authorize the purchase. 2. Modify the not to exceed cost for purchase. 3. Delay purchase until the disposition of the property can be determined more specifically. Discussion/Decision Mode: The property is currently vacant and the owner is interested in selling. A delay in acquisition may result in the property being rented or the owner becoming less interested in selling. submitted, RespeFeDoirector James sser Execu JDP:ds 1-1 0 RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA AUTHORIZING THE ACQUISITION OF 6318 NICOLLET AVENUE WHEREAS, the Housing & 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 6318 Nicollet Avenue South, legally described as Lot 4, Block 8, "Nicollet Homes Addition"; and WHEREAS, the owner of 6318 Nicollet Avenue, Charles Buchanan, has volunteered to sell his property to the HRA; and WHEREAS, the property has been evaluated to determine that a not to exceed price of $58,000 should be set for purchase; and WHEREAS, the funds for acquisition would be provided from the Expanded New Home Program; and WHEREAS; acquisition of the property is pending a September 25, 1990 Planning Commission finding that acquisition and disposition of the property 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: That the HRA Chairperson and Executive Director are authorized to'take necessary actions to purchase the property located at 6318 Nicollet Avenue for an amount not to exceed $58,000 following the required acquisition and disposition finding by the Planning Commission on September 25, 1990. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield this 17th day of September, 1990. Thomas E. Harms, Chairperson ATTEST: 0 Joan Helmberger, Secretary • CHRQN ,TCAT. 14TSTORY Qr 631R NTr-QL FT AVFNtTF RQ1j:rH • Citizen complaint of a rubbish truck parked in the driveway. Inspector was out to the property and verified complaint. Letter was left with resident addressing the truck being parked in the driveway. Inspector was out to the property and noted that the truck had been removed. Citizen complaint of a truck dumping debris (trees, roofing tin, shingles etc.) in the rear of the property. Inspector was out to the property and verified the complaint. A letter was left at this time addressing the debris and truck. Mai 7'3 1984 Inspector was out to the property and verified that the condition no longer existed. Citizen complaint of long grass and dandelions on property. Inspector verified complaint and a letter was left with the resident. May 9 1985 Inspector was out to the property and noted that the grass had been cut but the dandelions still remained. Inspector was out to the property and stated that it appeared as if they were taking measures to correct the problem. ;fvnP 1 R 1 085 Citizen complaint of weeds along the fence. E Inspector was out to the property and stated that the condition does exist. No one was home at the time of inspection. .limp 2.S 1985 'e Letter was mailed to the resident addressing the long grass on the property. Inspector was out to the property and noted that the grass had been cut and cleaned up. Citizen complaint of an auto repair business being run out of the garage and front yard. Also stated there is a jeep in the driveway blocking vision to vehicles pulling out of their driveway. 1 1 ?8fi Inspector was out to the property and noted that the condition still existed. A letter was left with the resident addressing the auto repair business and the vehicle causing a visibility problem. Anril 17 1Q86 Inspector was out to the property and noted that the condition still existed. Inspector hand delivered a Non-Compliance letter to the resident and a copy of that letter was mailed to the owner. Inspector was out to the property and noted that it appeared as if no auto repair was being done. Stated that jeep did not appear as if it were obstructing the view for vehicles pulling out of neighboring driveways. Citizen complaint of long grass and garbage on property. ?r}nhPr 1'a 1 CfBF? Inspector was out to the property and noted that the condition did exist. A letter was left with the tenant. QntnhPT- 21 1989 Inspector was out to the property and noted that the condition no longer existed. Citizen complaint of bags of garbage in the front and rear of the property. March 76 1987 Inspector was out to the property and noted that the garbage bags had been removed. Citizen complaint of long grass and dandelions on property. May 1d 1987 Inspector was out to the property and noted that the grass was being cut at the time of the inspection. Letter was left with the resident and resident was strongly advised on future maintenance. 6ntamhPT- 1 R 1 9R7 Citizen complaint of garbage and a mattress out in front of property. Inspector was out to the property and verified miscellaneous debris on property. Letter was left with the resident. sep emhPr 74 1987 Inspector was out to the property and noted that the miscellaneous debris had been removed. April 7 1QRR Citizen complaint of miscellaneous debris (bags, foam, etc.) in driveway and yard. April 9 1988 Inspector was out to the property and observed a cabinet, spring etc. in driveway. Letter was left with the resident and a copy of that letter was mailed to the owner. 0 Inspector was out to the property and noted that the plastic bags had been removed however, all other debris remained. Inspector hand delivered a Notice of Non-Compliance to resident addressing the debris on the property. April 1 Q 1 9AA Resident called to say all the debris has been removed. April 77 1 QAR Inspector was out to the property and noted that all the debris had been removed. J,,1ST 15 1988 Citizen complaint stating that the property is looking run down. ,TIOU 19 1Qf?R Inspector was out to the property and verified that there was miscellaneous debris and garbage (wooden structure, garbage bags, blocks, etc.) on property. Also stated that the front door was broken and the screen was missing. T>>1y 75 1QRR Mailed letters to owner and resident addressing the above mentioned violations. A??? pct 5 _ 1 QBF? Inspector was out to the property and noted that most of the debris still remained. Front door had not been repaired. Notice of Non-Compliance was hand delivered to resident and a copy of that letter was sent to the owner. Inspector was out to the property and noted that the house is now vacant. Said garbage and debris is piled up between the garage and the fence. Environmental Health staff hired a garbage hauler to pick up garbage and debris. 40 • The City Manager asked if an inspector would inspect the property for violations. Inspectors were out to the property and noted that the trim on the house is in need of repair and paint. Fence is in need of paint and repair, front steps are crumbling and in need of repair. E Air Gt ?4 1988 Letter was mailed to owner and resident of the property addressing the above mentioned violations. SPptPmhPr 3n 19RR Inspector was out to the property and noted that noting had been done. nrtnhPr 5 1988 Inspector hand delivered a Notice of Non-Compliance to the resident and a copy of that was sent to the owner. October 71 1988 Inspectors were out to the property and noted that the front steps had not been repaired, the trim had not been painted and the fence had not been painted or repaired. FPhrt?arv 1'? 1989 Environmental Health staff filed a formal complaint with the City Attorney against the owners of the property. Citizen complaint of long grass and dandelions on property. Mw ?5 1989 Inspector was out to the property and noted that the grass was short, however; there were dandelions on the property. A letter was left with the resident and a copy of that letter was mailed to the owner. Mau 29 1989 Inspector was out to the property and noted that the grass was cut, however; the weeds were long. Inspector hand delivered a Notice of Non-Compliance to the resident. ti Inspector was out to the property and noted that the weeds were gone. • 0 9 .7u1?V 1 4 t Complaint of long grass and weeds. Property was inspected. Grass long. Letter left with resident. Property inspected. Grass had been cut. A 11> gi- d 1989 Complaint of long grass and weeds. Ac mcd- 7 1 9 8 9 Property inspected and found not valid. SPntPmher 5 1989 Betsy observed door off hinges, mattress and other debris on property. PMtPmhPr 7 1989 Property inspected. Violations correct. A 1st letter was left with resident and copy of letter mailed to owner C&M Leasing. SPntAmhPr 12 1989 Property inspected. Debris and door gone. Complaint from tenant on property. Said shower, toilet and refrigerator do not work properly. DPC^PmhPr R 1989 Steve Sutter inspected property and found violations did exist. 1st letter mailed to owner, C&M Leasing. Violations with furnace. Fire and South Side made immediate repairs to furnace. Steve Sutter attempted to inspect house. Tenants moved out, house vacant. • Betsy spoke to Bruce Palmborg in HRA about the city's interest in purchasing the house. Bruce looked into the matter and felt it did not fit any of the city's programs. Complaint of garbage in back of house. Property inspected. Bags of garbage and debris etc. verified. House vacant. March 11 1990 Spoke to Judy Mack with Coldwell Banker. She stated they would not be removing the debris. March 14 1990 A 1st letter was posted on inside of screen. March 15 1990 Property was inspected and garbage and.debris were present at that time. gr?ri 1 '? 1 9 Expert Disposal 90 contacted to pick up garbage. Jean Sawyer verified boxes, bags, screens etc. on property. April 74, 1 990 A 1st letter was mailed to resident and to owner C&M Leasing. Property inspected and all debris present. Notice of Non-Compliance was mailed to resident and to owners C&M Leasing and Rental Resources. Property inspected. All debris had been removed. May 77 1 99() Complaint of long grass and weeds. 0 11 Letter posted on house. Ma- 1 1 990 Property inspected and long grass verified. Letter was left with tenants. MMa ?5 1990 •? Mailed copies of letter to owner C&M Leasing and to Rental Resources. May 10 _ 1 990 Jean Sawyer verified grass and dandelions still long. Due to neighbors complaining about long grass, Notice of Non-Compliance was posted on house. May '41 1 9 9 0 Property inspected. Grass had been cut. Mark from Rental Resources called and said house had been sold. Zmp 1 1 990 A CSO had verified house not being secured. jiinp ? 1990 care of securing house. New resident/owner said he would take Property inspected. House secured. Inspection requested by Jim Prosser on inside and outside of house. Inspection done by Denise and Jan. Violations in and outside noted. John Bellicka, the new tenant called. He is in the process of buying the house. He was referred to Diane Nordquist in HRA to check into a Low income housing loan. i _ June R 1990 A 1st letter was regarding violations in and outside of house was mailed to tenants. Jean Sawyer spoke to Cathy Jones in HRA. She stated after meeting with tenants she found that they are not yet owners. They are waiting for a court settlement to come up with money for a down payment on house. E inp 1 1 99( Property inspected and it was determined that nothing had been done. Separate complaint on the number of people living in house Denise verified two adults and children. All related. Spoke to Cathy Jones in HRA. She stated that she didn't know if new tenants would now qualify for loan since they are legally not owners. Spoke to Cathy Jones in HRA. She stated that she has been in touch with renters who are hoping to have the money for a down payment on house next week. Notice of Non-Compliance hand delivered to resident. 7unp 77 1Q9n CSO Harcey inspected property. Trailer had been removed from the property. Tires were not present. The front door was secured with a dead bolt but was missing the door handle. Screens were not replaced. Date of next inspection. 0 E D • HOUSING AND REDEVELOPMENT HRA Letter No. 26 Agenda September 17, AUTHORITY 1990 Issue Statement: Authorization to acquire 7528 Colfax Avenue. Background: The HRA has utilized the Voluntary Acquisition Program and CDBG funds to acquire substandard residential properties for redevelopment since 1980. The Vo-Tech has developed these sites with new housing units for moderate income families. The Colfax Avenue structure is substandard as to room arrangement and use and exhibits considerable deferred maintenance. The owner, through participation in the Voluntary Acquisition Program, has indicated an interest in selling the property to the HRA. An independent appraiser valued the property at $56,000. Staff has negotiated a purchase price of $56,000 pending authorization by the HRA. The HRA would be responsible for site clearance and property maintenance following acquisition. In addition to acquisition, the 1990 revised/1991 budget, provides $4,280 to clear the site (source: CDBG XV), $600 for legal work to acquire (source: CDBG XV) and $400 for property maintenance and insurance (source: proceeds of sale of 1990 Vo-Tech project). The property would be tax exempt until development is completed. It is anticipated that Vo-Tech will build a new house for the site starting in the Fall, 1990. Plans are being finalized now and the HRA should be able to consider a construction agreement with Vo-Tech in October. A short term, 60 day rental tenancy was established on the property by the owner after staff inspected the dwelling and initially evaluated purchase. Because of the short term occupancy, no relocation benefit eligibility will result. A finding by the Planning Commission, that acquisition and disposition of the property for single family purposes is in conformance with the comprehensive plan, will be considered at the regularly scheduled meeting of September 25, 1990. An HRA authorization to acquire is contingent on this finding. $56,000. Recommendation: It is recommended that the HRA adopt the attached resolution which authorizes the Chairperson and Executive Director to enter into a purchase agreement and take other actions necessary for the HRA to acquire the property at 7528 Colfax Avenue for Basis for Recommendation: 1. The property owner is interested in selling to the HRA 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 returned to Hennepin County if not spent prior to December 30, 1990. 4. The subject property is the only one offered at this time which can be purchased given the funds available. 5. Approval by the HRA subject to a favorable Planning commission finding has been successfully utilized in the past. Alternative Recommendation: The HRA can choose not to acquire the property. However, staff presently has no alternative for the timely expenditure of CDBG funds and the development of a future Vo-Tech project. Any alternative will not be less costly to acquire. Discussion/Decision Mode: Pending HRA authorization and the Planning Commission finding, the property could be acquired October 5, 1990. is JDP:ds 4 Respectfully submitted James D Prosser Execu ve Director 0 • • RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA AUTHORIZING THE ACQUISITION OF 7528 COLFAX AVENUE C 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 7528 Colfax Avenue, legally described as: Lot 8 and S. 3 ft. of Lot 7, Block 22, Irwin Shores; and WHEREAS, the owners of 7528 Colfax Avenue, Gary and Patricia Hughes, have volunteered to sell their property for $56,000; and WHEREAS, Community Development Block Grant (CDBG) funds will finance the acquisition of this parcel; and WHEREAS, acquisition of the property is pending a September 25, 1990 Planning Commission finding that 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: That the HRA Chairperson and Executive Director are authorized to take necessary actions to purchase the property located at 7528 Colfax Avenue for $56,000 following the required acquisition and disposition finding by the Planning Commission on September 25, 1990. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield this 17th day of September, 1990. ATTEST: Joan Helmberger, Secretary Thomas E. Harms, Chairperson • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 27 Agenda September 17, 1990 Issue Statement: i Adoption of resolution establishing just compensation and authorizing the purchase of 7620 Emerson Avenue. Background: In the fall of 1985, the Interstate Lyndale Nicollet (ILN) Redevelopment and Tax Increment Financing Plan (Plan) was approved. The purpose of the Plan was to establish a long range strategy for redevelopment of the area. The Plan, in accordance with statutory authority, authorized the HRA to undertake site assembly activities. An integral part of the Plan provided for separation of the residential and commercial uses through the upgrading of 77th Street. The. City Council has authorized the expenditure of Municipal State Aid (MSA) revenues for purchase of property west of Lyndale .Avenue. MSA funds are derived from state gasoline tax revenues. MN Department of Transportation (MNDOT) makes the funds available to cities. The funds may be used for a variety of activities related to construction of new roads and maintenance of existing roads. In this situation, the money is being used to purchase right-of-way, and pay relocation benefits. Site clearance and road construction will be dealt with later. To implement the upgrading of 77th Street, it is necessary to purchase 16 homes. To date 12 homes have been purchased. MNDOT rules prescribe the process to be followed when purchasing property. The property was appraised by Mark Hoffman of Chase- Brackett Company, a firm which has done appraisals for the HRA in the past. A certified review appraiser, Mr. Don Hennessy, reviewed the appraisal report and concurs with the analysis and the value conclusion for the property. He has recommended setting just compensation at the value indicated in the resolution, $82,000. The property is a single family rambler; wood shake exterior; about 31 years of age; unfinished basement; three bedrooms, bath, living and dining rooms and kitchen on the first floor. There are also two fireplaces. The owner would also be eligible for relocation benefits as required by state statute and MNDOT procedures. Recommended Motion: Adopt the attached resolution which sets just compensation and authorizes staff to negotiate and purchase the property at the value indicated. The Executive Director and HRA Chairperson are authorized to execute a purchase agreement in the amount of just compensation. Basis of Recommendation: 1. The property has been identified for acquisition in the approved Plan. 2. MSA funds are available for the acquisition. 3. The owner has voluntarily indicated an interest in receiving an offer to purchase. 4. Applicable MNDOT procedures are being followed. Alternative Recommendation: Not authorize negotiations and purchase. Discussion/Decision Mode: The owner would like an opportunity to move before the onset of winter. Respe ly submitted, James . Prosser Executive Director JDP:ds • 1 0 HRA RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7620 EMERSON AVENUE WHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real property pursuant to and in furtherance of the ILN Redevelopment Project (Project) heretofore adopted by the City of Richfield (City) and the HRA, said real properties being described as follows: The south 50 feet of the north 315 feet of the east 1/2 of the west 1/2 of the northeast 1/4 of the southwest 1/4 of the southeast 1/4 of Section 33, Township 28, Range 24; and WHEREAS, the HRA in and for the City of Richfield, is -authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, the Project identifies the location of this property as the site for public improvements to be constructed by the city; and WHEREAS, the HRA is acquiring these properties on behalf of the city to permit the installation of public improvements; and WHEREAS,"the HRA has caused appraisals of the subject properties to be made by a qualified independent professional real estate appraiser to determine its fair market value; and WHEREAS, a Certified Review Appraiser has reviewed the appraisal reports, and has prepared a written report setting forth his opinion as to fair market value; and WHEREAS, the funds are available from the Municipal State Aid (MSA) made available by the state to the city. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: 1. That just compensation is determined to be $82,000. 2. That the Executive Director is authorized and directed to commence negotiations for the purchase of said real property. 3. That the Chairman and Executive Director are authorized to execute a Purchase Agreement for the amount of just compensation set forth in this resolution. 4. That the Executive Director is hereby directed to notify in writing the owners of subject properties as soon as possible that the HRA intends to acquire his/her property. 5. That the conveyance of title to said real properties to the city at the appropriate time is hereby authorized. Passed by the Housing and Redevelopment Authority this 17th day of September, 1990. Thomas E. Harms, Chairman ATTEST: Joan Helmberger, Secretary • Ik 0 Housing and Redevelopment Authority HRA Letter No. 28 Agenda, September 17, 1990 Issue Statement: Authorization for payment to Lino Lakes Nursery for the ILN Streetscape. Background: On August 21, 1989, the HRA awarded the ILN Streetscape contract to Lino Lakes Nursery in the amount of $37,785. Because of tree deletions from 143 to 131 and changes in the variety of trees planted, the contract cost was decreased to $35,950. Partial payments were authorized by the HRA in February and April of this year. Contract amount (143 trees) Alternate 1 (extended warranty for two years) Total contract amount • Change order #1 (less 12 trees and variety changes) Total contract amount, revised lst partial payment 2nd partial payment Balance $35,285.00 + 2.500.00 $37,785.00 1,835.00 $35,950.00 -19,557.00 3,944.00 $12,449.00 Deduct for one tree not planted due to rubble and cables Deduct for irrigation system damaged by contractor and repaired by others and paid by HRA Retained for extended warranty Contract payment • - 178.00 283.21 2.500.00 $ 9,487.79 In addition to the contract payment, Lino Lakes replaced three trees which were-damaged by motor vehicles. The cost of removal oY the damaged trees and replacement was $1020. (Recently 4x4 posts were installed by city crews in the planters along Lyndale Avenue between 76th and 77th Streets to protect the trees from damage.) Recommendation: Authorize: 1. Contract payment to Lino Lakes in the amount of $9,487.79. 2. Payment to Lino Lakes in the amount of $1020 for tree replacements not covered by the contract. 3. Payment by staff of up to $2,500 at the end of the extended warranty period in 1991. Basis of Recommendation: 1. The contract conditions have been met by the contractor with the exceptions noted above. 2. The three trees replaced by the contractor were not covered by the contract. 3. Staff will determine the condition of the trees before making the warranty payment. Alternative Recommendation: 1. Deny payment. 2. Modify the payment. Discussion/Decision Mode: The contractor is entitled to payment based on his performance. Respe Ftf?ly submitted, 44 James Jve Prosser Execu Director JDP:ds E 0 CITY OF RICHFIELD, MINNESOTA HRA Letter No. 29 September 17, 1990 Issue Statement: • Authorization to execute Energy Program Agreements. Back round: Since 1985, Richfield has contracted with Northern States Power (NSP) and the Self Reliance Center (SRC) to provide energy conservation services. Both agreements expired June 30, 1990. Fall 1990 services are presently being planned. The purpose of the NSP agreement is to provide energy conservation programs to Richfield as required by the Minnesota Public Utilities Commission (MPUC). NSP is required to contribute financial assistance to local units of government that form Community Energy Councils (CEC's). For Richfield, the HRA is the CEC. The HRA is being requested to authorize execution of agreements to continue to provide service to residents. The agreement between NSP and the HRA provides funding for Home Energy Checkups (HEC's) and Business Energy Tuneups. The HEC service helps homeowners evaluate the energy efficiency of their home and make energy conservation decisions. By participating, homeowners are also eligible for assistance programs that the HRA and other agencies offer. NSP provides up to $95 for each HEC. However, blower door infiltration measurement and evaluation, common with HEC's for several years, can no longer be provided with the NSP funding. Blower door testing would be offered to homeowners for a $20 fee, paid by the homeowner at the time of service. The Business Energy Tuneup reimburses Richfield in the amount of $125 for any commercial audits provided during the contract period. The NSP agreement covers the period from June 30th through December 30, 1990. According to the MPUC order, the NSP reimbursement to Richfield for the HEC will be reviewed for a cost of living adjustment on December 30, 1990. If such an adjustment is made it may be necessary to present the HRA with a modified contract in December or January. The purpose of the SRC agreement is to provide for delivery of the Home Energy Checkup and Energy Tuneup service that NSP funds. SRC's certified personnel evaluate the building, heating system, insulation levels, household electrical consumption, and energy use life style of homeowners. Approximately $20 in weatherization materials are also provided to homeowners free of charge. Referrals are made, for qualified residents, to other programs and agencies to provide for installation of recommended HEC measures. The HRA agreement with SRC requires the HRA to identify and SRC to perform, approximately 45 audits a month during September, 1990 through March, 1991. During the remainder of the contract period (April through August, 1991), lesser numbers would be completed on a homeowner requested basis, consistent with a drop in demand following the end of the heating season. A total of 475 audits are anticipated during the contract. NSP hab committed sufficient revenues to fund this number. However, given that there may be adjustments to the NSP contract in December, the SRC agreement is effective only up to December 30, 1990. Potential cost adjustments in December to the NSP contract may impact the service level provided by SRC. But if NSP continues to sufficiently fund energy services at the 475 audit level of service after the potential cost adjustment, the SRC contract will be automatically extended. Recommendation: 1. Authorize the agreement with NSP for the period of September 1, 1990 through December 30, 1990. 2. Authorize the agreement with SRC for Home Energy Checkup services for the period September 1, 1990 through December 30, 1990 and with an extension to August 30, 1991, provided NSP funds are secured. Basis of Recommendation: 1. The present agreements have expired. 0 2. Authorization will provide energy program services during the upcoming heating season. 3. Legal counsel has previously reviewed the form and content of the agreements and there are no significant changes. 4. SRC is familiar with the Richfield Home Energy Checkup program, and remains the only contractor with the knowledge, ability and staff to provide the volume of Home Energy Checkup services required in a cost effective manner. Alternative Recommendation: Not approve the agreements with NSP and SRC. Discussion/Decision Mode: With authorization, services will be provided to users. Respectfully submitted, Jame Prosser Exec 1=4 Director JDP:ds RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION RELATING TO PROVIDING ENERGY AUDITING AND WEATHERIZATION SERVICES WHEREAS, the Home Energy Checkup (NEC) Program, funded by Northern States Power (NSP), is an important element of the HRA's "Bundle Up Richfield" energy conservation program activities; and, WHEREAS, the existing agreement has expired; and, WHEREAS, NSP has committed to continue to fund energy conservation services in Richfield; and, WHEREAS, the Self Reliance Center (SRC) is a qualified contractor with the knowledge and the ability to provide HEC's. NOW, THEREFORE BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield as follows: The Executive Director and Chairperson are authorized to 1) execute the agreements between the HRA and NSP to fund energy conservation services in Richfield through December 30, 1990; and 2) execute the agreement between the HRA and the Self Reliance Center, Inc. to provide Home Energy Checkup services to Richfield residents through December 30, 1990 and on to August 30, 1991 if sufficient NSP funds are secured for 1991 services. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17th day of September, 1990. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary 0 CITY OF RICHFIELD, MINNESOTA HRA Letter No. 30 Agenda September 17, 1990 Issue Statement: Authorization to execute 1990 (Year XVI) Urban Hennepin County Community Development Block Grant (CDBG) Third Party Agreements. Background: HUD policy requires specific third party agreements between subgrantees and grantees, in this instance the Richfield HRA and City of Richfield. The third party agreements between the Richfield HRA and the City are for the Deferred Rehabilitation Loan Program and Scattered Site Housing (New Home) Program. The Third Party Agreements spell out the procedures to be followed when expending the CDBG funds which formalize on paper the procedures which have been followed during the last several years by staff. The Third Party Agreements have been prepared by Hennepin County and must be executed before Hennepin County will disperse any Year XVI CDBG funds. Recommended Motion: Authorize execution of the Third Party Agreements for the Deferred Rehabilitation Loans and the New Home Program, Scattered Site Housing. Basis of Recommendation: The Year XVI CDBG Programs have been approved by the City Council. The signature authorizing execution of the Third Party Agreements would allow Hennepin County to disperse the funds upon execution by the City Council. Alternative Recommendation: Refuse to authorize the signing of the Agreements. Discussion/Decision Mode: The agreement must be acted meeting to be forwarded by for execution. upon at the September 17, 1990 September 24, 1990 to the City Council Respectf ly submitted, James D Prosser Exec? ve Director JDP:ds 0 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 31 Agenda September 17, 1990 Issue Statement: Exploration of purchase of the Cloverleaf site by the HRA. Background: The Cloverleaf site is a tract of land approximately 13 acres in size within the ILN redevelopment project. It is undeveloped. As a result of a foreclosure on the property and the failure of Midwest Federal, the Resolution Trust Corporation is seeking to dispose of it. The Trust Corporation has listed the property at $5.5 million. The price has been lowered to $4.7 million. Recently a representative of the Trust has expressed an interest in selling the property to the HRA at a price below $4.0 million. Recommendation: Adopt a motion directing staff to: 1. explore the feasibility of purchasing the property 2. report to the HRA from time to time on the status of feasibility study. Basis of Recommendation: 1. The property is a key element in the redevelopment strategy of the ILN. 2. The property is for sale and may be available to the HRA at a substantially reduced price. 3. A purchase-by the HRA at a reduced price may spur redevelopment. Alternative Recommendation: Tell the Resolution Trust Corporation the HRA is not interested in exploring the potential purchase of this property. Discussion/Decision Mode: A determination by the HRA at the September 17 meeting will make it possible to respond in a timely manner to the Trust. Respe lly submitted, Jame f. Prosser I Executive Director 0 JDP:ds