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
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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
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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
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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
•
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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
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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
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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