05-21-90 agenda
HOUSING AND REDEVELOPMENT AUTHORITY
0 MAY 21, 1990
7:00 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULARLY SCHEDULED MEETING OF APRIL 16,
1990 AND JOINT CITY COUNCIL/HRA MEETING OF MAY 2, 1990
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. CONSIDERATION OF APPROVAL OF AUTHORIZATION TO TRANSFER CDBG
YEAR XV SECTION 312 LOAN PROGRAM FUNDS TO THE REHABILITATION
DEFERRED LOAN PROGRAM
HRA LETTER NO. 11
3. CONSIDERATION OF APPROVAL OF AUTHORIZATION TO MODIFY VO-TECH
CONTRACTS FOR 7000 OAKLAND AND 7101 FIRST AVENUE SOUTH BY
EXTENDING THE PROJECT COMPLETION AND PAYMENT DATES AND
CONTRACT PRICE
HRA LETTER NO. 12
4. CONSIDERATION OF APPROVAL OF AUTHORIZATION TO EXECUTE
CONTRACT WITH SOUTH HENNEPIN VOCATIONAL TECHNICAL SCHOOL
(VO-TECH) TO INITIATE A 1990-91 NEW HOME PROJECT
HRA LETTER NO. 13
5. CONSIDERATION OF APPROVAL OF AUTHORIZATION TO SUBMIT AN
APPLICATION TO THE MINNESOTA DEPARTMENT OF PUBLIC SERVICE
(DPS) FOR A COMMUNITY ENERGY COUNCIL (CEC) FY'90 CYCLE I
GRANT
HRA LETTER NO. 14
6. EXECUTIVE DIRECTOR REPORT
7. CLAIMS AND PAYROLL
ADJOURNMENT
0
CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 16, 1990
•
MEMBERS PRESENT: Thomas Harms, Chairman; Joan Helmberger;
Ivan Ludeman; Edwina Garcia; and Vern
Luettinger.
STAFF PRESENT: James Prosser, Executive Director; Byron
Wallace, Community Development Director;
Bruce Palmborg, Housing and Redevelopment
Coordinator; Thomas Ferber, City Clerk;
and John Dean, HRA Attorney.
The meeting was called to order by Chairman Harms at 8:04
p.m.
APPROVAL OF MINUTES
M/Helmberger, S/Luettinger to approve the minutes of the
Regular HRA Meeting of March 19, 1990.
Motion carried 5-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ANY ITEM
NOT LISTED ON THE AGENDA.
No one wished to address the HRA.
Item #2 CONSIDERATION OF APPROVAL OF A SECOND PARTIAL PAYMENT
IN THE AMOUNT OF $3,944 TO LINO LAKES NURSERY FOR THE
ILN STREETSCAPE. HRA LETTER NO. 8
Community Development Director Wallace reviewed HRA Letter
No. 8 recommending that the HRA authorize a partial payment to
Lino Lakes Nursery for ILN Streetscape work.
M/Ludeman, S/Luettinger to authorize a partial payment in
the amount of $3.944 to Lino Lakes Nurserv for ILN Streetscape
work.
0 Motion carried 5-0.
HRA Minutes
Item #3 ADOPTION
AN AGREE]
SERVICES
PROGRAM.
-2- April 16, 1990
OF A RESOLUTION AUTHORIZING THE EXECUTION OF
KENT WITH BEST GROUP TO PROVIDE MARKETING
FOR THE RESIDENTIAL ENERGY CONSERVATION
KRA LETTER NO. 9
Community Development Director Wallace reviewed HRA Letter
No. 9 recommending the execution of an agreement with BEST Group
to provide marketing services for the residential energy
conservation program.
M/Luettinger, S/Ludeman that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 377
RESOLUTION RELATING TO PROVIDING
MARKETING SERVICES FOR THE ENERGY PROGRAM
Motion carried 5-0. This resolution appears as Resolution
No. 377 in HRA Resolution Book No. 3.
Item #4 STAFF DISCUSSION REGARDING RICH ACRES DEVELOPMENT.
Community Development Director Wallace reviewed the Rich
Acres redevelopment concepts prepared by Planning Consultant Tom
Martinson.
The three potential redevelopment choices reviewed were:
1) a "boutique" commercial office campus
2) a "maximum" apartment development
3) a high-amenity housing development
Discussion followed regarding the feasibility of the
development concepts.
is
HRA Minutes -3- April 16, 1990
0 Item #5 EXECUTIVE DIRECTOR REPORT
Community Development Director Wallace reviewed the status
of the following:
1) Expanded New Home Program
Response to publicity regarding expansion of this
program has been very positive.
2) RALF Program
Two properties along 77th Street are currently being
processed for Metropolitan Council RALF Funds.
3) HRA Marketing
Henning & Associates are working with staff regarding
marketing efforts.
4) PASSS
Some general discussions with interested parties has
occurred and marketing efforts continue.
Item #6 CONSIDERATION OF CONCEPTUAL APPROVAL OF A DEVELOPERS
AGREEMENT WITH THE ROBERT LARSEN PARTNERS, INC.
HRA LETTER NO. 10
HRA Attorney Dean reviewed HRA Letter No. 10 regarding the
draft Contract for Private Development with Robert Larsen
Partners, Inc. regarding ILN Redevelopment. He stated that the
significant parts of the Contract for Private Development
include provisions for the following:
* Development of the area within the ILN West of
Lyndale known as "Phase I".
* Robert Larsen Partners Inc. will construct a shopping
mall having a minimum market value of $33,500,000.
* A mechanism to finance the public improvements in
the ILN area through the use of TIF funding with a
special assessment levy in the event there is
insufficient tax increment to pay debt service.
* The acquisition of land within Phase I and Phase II
or through the use of the HRA condemnation power to
the extent that Larsen is unable to acquire all of
the land necessary for the project.
* Larsen will initially pay all of the costs relating
to the acquisition of the property (real estate costs,
fixtures, relocation, HRA costs and attorney's fees)
whether by voluntary acquisition or condemnation.
* Larsen will be paid a land write down over a base
cost through a combination of bond proceeds, pay
as you go proceeds and other funds subject to the
limitations of the contract.
* This contract supersedes the November 20, 1989
Agreement.
HRA Minutes -4- April 16, 1990
Sid Inman, Publicorp, reviewed the tax increment issues
which led staff to structure the proposed contract to include the
"pay as you go" concept.
Kelly Dorn, Robert Larsen Partners, Inc., indicated that
this concept shifted more of the risks to the developer, but that
if the project is feasible they intend to proceed. He stated
property acquisition negotiations are difficult at this stage.
He asked the City and HRA agree to the concept of eminent domain
acquisition if it becomes necessary. He indicated no purchase
agreements have been signed but that 6-8 properties are close to
an agreement.
Bob Jensen, owner of 7714-16 Colfax Avenue, stated concern
about how the developer was negotiating with property owners. He
also requested further information regarding the proposed
Developer's Agreement.
Don Maki, 7738 Colfax Avenue, stated dissatisfaction with
the developers offer for his property and the attitude of the
developer.
Tony Doherty, owner of the Doherty Furniture building,
stated his building is not for sale.
HRA Attorney Dean reviewed the proposed developers
agreement. He stated that staff is continuing to meet with
Robert Larsen Partners to finalize the draft agreement for
presentation for approval by both the HRA and City Council. He
anticipated completion within two weeks.
Chairperson Harms stated that the decision to redevelop the
area has been made. He stated that voluntary acquisition of
property by the developer was the preferred method and the use of
eminent domain condemnation would be the last option. He
encouraged the property owners to utilize the mediation service
offered by the City.
Executive Director Prosser indicated that some property
owners had expressed concerns regarding property acquisition
negotiations with the developer. Therefore, the mediation
process is being made available to provide a way to address
differences and improve communications between the parties.
Discussion followed regarding the property acquisition
negotiation process, the mediation process, and the eminent
domain condemnation process.
In response to a question from Commissioner Ludeman, HRA
Attorney Dean reviewed the land write down, financial, and
special assessment components of the draft developers agreement.
Robert Adelmann, owner of 805 W. 77 1/2 Street, stated
concern that existing property owners could not develop their
land because of the zoning.
HRA Minutes -5- April 16, 1990
Executive Director Prosser reviewed the redevelopment
concepts of the ILN.
Discussion followed regarding notice to property owners of
the joint HRA/City Council Meeting to consider the final draft of
the developers agreement. It was decided that mailed notice
would be provided and anyone who wished to review a copy of the
agreement prior to the meeting should contact City Hall.
M/Garcia, S/Harms to approve the draft concept of the
contract for Private Development with the Robert Larsen Partners
Inc. regarding the Promenade development in the ILN and to direct
the staff and attorney to proceed to finalize an agreement for
HRA and City Council approval.
Motion carried 5-0.
Item #7 CLAIMS AND PAYROLLS
M/Ludeman, S/Helmberger that the following claims and
payrolls be approved:
FIRST
Checks
Checks
Motion
ADJOURNMENT
WESTERN BANK
9254-9260; 9435-9463 $ 183,081.16
1016-1017;1038-1041;
1252-1334 Section 8 $ 97,002.00
carried 5-0.
The meeting was adjourned by unanimous consent at 10:24 p.m.
Date Approved:
Thomas P. Ferber
City Clerk
Steven J. Quam Mayor
James D. Prosser
City Manager
0
CITY OF RICHFIELD, MINNESOTA
CITY COUNCIL/HRA JOINT MEETING
MAY 2, 1990
HRA MEMBERS
PRESENT: Thomas Harms, Chairman; Joan Helmberger;
Edwina Garcia; and Vern Luettinger.
HRA MEMBERS
ABSENT: Ivan Ludeman
COUNCIL MEMBERS
PRESENT: Steven Quam, Mayor; Edwina Garcia; and
Martin Kirsch.
COUNCIL MEMBERS
ABSENT: Ivan Ludeman; and Michael Sandahl.
STAFF PRESENT: James Prosser, City Manager; Thomas Ferber,
City Clerk; Byron Wallace, Community
Development Director; Bruce Palmborg, Housing
and Redevelopment Coordinator; and John Dean,
City Attorney.
The meeting was called to order by Mayor Quam and Chairman Harms
at 7:00 p.m.
Item #1 CONSIDERATION OF A CONTRACT FOR PRIVATE DEVELOPMENT IN
THE INTERSTATE/LYNDALE/NICOLLET (ILN) REDEVELOPMENT
AREA WITH ROBERT LARSEN PARTNERS, INC. C.L. NO. 119
HRA LETTER NO. 11
City Manager/HRA Executive Director Prosser reviewed Council
Letter No. 119 and HRA Letter No. 11 regarding a proposed
contract for Private Development with the Robert Larsen Partners,
Inc. for The Promenade project to be constructed in the
Interstate-Lyndale-Nicollet (ILN) Redevelopment area.
Bill Schatzlein, Robert Larsen Partners, Inc., reviewed the
proposed Promenade project which would consist of Phase I, a
retail center of 338,900 square feet west of Lyndale Avenue, and
Phase II, office/hotel development on the Cloverleaf Site.
City/HRA Attorney Dean reviewed and summarized the proposed
Contract for Private Development.
Sid Inman, Publicorp, reviewed the tax increment issues
which resulted in the "pay as you go" limited revenue tax
increment note concept. He also reviewed the strength and
ability of the developer to do this project.
HRA Commissioner Luettinger asked about the status of the
mediation process.-
Council/HRA Joint Meeting Minutes -2- May 2, 1990
HRA Coordinator Palmborg stated that the Mediation Center of
St. Paul will be used and that the process will begin shortly
after the contract for Private Development is approved.
Don Maki, 7738 Colfax Avenue, stated dissatisfaction with
the developers offer for his property and the attitude of the
developer. He asked that more concern be shown for the property
owners.
•
Doug Allen, Pastor of Emerson Avenue Congregational Church,
7700 Emerson Avenue, stated that the developer had dealt fairly
with the church in finding a mutually acceptable solution.
Bob Jensen, owner of 7714-16 Colfax Avenue, stated concern
that negotiations move forward and timelines are met. He urged
that consideration for the needs of the long term businessmen in
the area be considered.
Robert Adelmann, owner of 805 W. 771/2 Street, stated
concern that existing property owners were not given incentives
to improve their properties. He stated that he thought the
Cloverleaf site should be developed first.
Tony Doherty, owner of 800 W. 771/2 Street, stated he does
not want to sell and doesn't think the project is feasible.
M/Garcia, S/Harms to close the HRA public hearing.
Motion carried 4-0.
M/Garcia, S/Kirsch to close the City Council public hearing.
Motion carried 3-0.
HRA Chairperson Harms stated that the proposed agreement was
in the best interests of the City. He stated that it was
necessary to first develop the area west of Lyndale Avenue to
make it feasible to develop the Cloverleaf property. He stated
that it was necessary for a reasonable price to be determined for
the purchase of properties; he urged that the developer and
property owners try to achieve this through negotiation and
mediation rather than the last resort of using the eminent domain
process.
Commissioner Garcia stated that this agreement has been
carefully evaluated and that she is satisfied that it is in the
best interest of the City.
Commissioner Luettinger stated that the agreement is
beneficial and for the overall good of the community.
0
Council/HRA Joint Meeting Minutes
-3- May 2, 1990
M/Luettinger, S/Garcia to approve the Contract for Private
Development in the Interstate/Lyndale/Nicollet(ILN) Redevelopment
Area with the Robert Larsen Partners Inc. and to authorize the
HRA Chairperson and Executive Director to execute the contract on
behalf of the Housing and Redevelopment Authority.
Motion carried 4-0.
Council Member Kirsch stated that redevelopment such as in
the L/H/N causes'some initial conflict but is for the good of the
City. He stated it has been the goal of the City to attract
major development to expand the tax base, therefore, he supports
this agreement.
Mayor Quam reviewed the dependence of the City on State Aid
and fiscal disparities. He indicated that these are not stable
sources of funding and that it is imperative to expand the tax
base to maintain the services citizens demand. He stated the
City Council, HRA, and staff understand that maintaining the time
schedule is very important to all involved. He stated support
for this agreement and the ending the uncertainity for this area.
M/Kirsch, S/Garcia to approve the contract for Private
Development in the Interstate/Lyndale/Nicollet (ILN)
Redevelopment Area with the Robert Larsen Partners, Inc. and to
authorize the Mayor and City Manager to execute the contract on
behalf of the City.
Motion carried 3-0.
ADJOURNMENT
The HRA meeting was adjourned by unanimous consent at 8:25
p.m.
Date Approved:
Thomas Harms Chairman
Thomas P. Ferber
City Clerk
James D. Prosser
Executive Director
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. it
Agenda May 21, 1990
Issue Statement:
Authorization to transfer CDBG Year XV Section 312 Loan Program
Funds to the Rehabilitation Deferred Loan Program.
Background:
The HUD Section 312 Rehabilitation Loan Program was implemented
in August, 1988, to provide rehabilitation loans of up to $33,500
for eligible, owner-occupied, single family properties. The
annual interest rate is 3%. HRD staff is responsible for
processing the application and determining the eligibility of the
house and household. The HRA has a service agreement with the
City of Saint Paul for the complicated' loan origination and
closing process. This agreement expires June 30, 1990.
Staff has found it difficult to successfully generate Section 312
Program loan activity because of restrictive program
requirements:
- A narrow household income range for eligibility, ($25,000 to
$35,000 depending on family size.)
- The low level of debt which must exist for a household to
afford an additional $50 or more monthly payment for several
years.
- A considerable amount of equity is required. (Total
encumbrances including the 312 loan amount, must not exceed 80%
of the property tax value).
- The need to have significant amounts of code related problems
which require attention, (a minimum of $6,000).
- The uncertainty of HUD funding availability for Section 312
single-family loans. Funds allocated to the program by HUD
in mid-1989 were reserved for Urban Homesteading projects only.
The amount of funds and timing of availability are anticipated
to continue to be uncertain.
A summary of program activity follows:
- From April, 1988, to June, 1989, the program was regularly
advertised in Your City/Your Schools and by direct mail.
- An estimated 160 persons responded to ads.
- All were screened by phone.
Approximately 87 applications were mailed to those
appearing eligible.
= Twenty applications were returned.
Of those.returned, 16 were determined ineligible and four
withdrew because of personal circumstances and uncertainty
of HUD funding availability.
- Staff has continued to screen persons inquiring about available
loan programs for Section 312 eligibility.
- No applications are presently being processed.
A total of $10,000 in CDBG YR XV funds was allocated to the
Section 312 Program for loan processing services in 1990. To
date, there have been no YR XV expenditures.
Based on program activity since 1988, CDBG YR XVI funds were not
sought to continue the Section 312 Loan Program in 1991. In
addition, it is unlikely that any 312 Loan activity will occur to
expand YR XV funds by December 31, 1990. YR XV funds not
expended by year-end must be forfeited to Hennepin County. An
action to shift YR XV 312 funds to an alternate use would
discontinue the 312 Program at this time, but assure the useful
expenditure of CDBG YR XV funds in Richfield before the end of
the year.
CDBG funds are provided from HUD by Hennepin County according to
a three party agreement involving the City, HRA and County. Any
changes in funding require amendments to these agreements. These
amendment are drafted by the County after the HRA and City act to
authorize changes.
Recommended Motion:
Authorize amendments to Third Party Agreement to shift CDBG YR XV
funds for Section 312 in the amount of $10,000 to the
Rehabilitation Deferred Loan Program for expenditure prior to
December 31, 1990.
Basis of Recommendation:
1. Restrictive program eligibility requirements have made it
difficult to identify qualified applicants.
2. All CDBG YR XV funds must be expended prior to December 31,
1990.
3. It is unlikely that any additional YR XV funds could be
committed to the 312 Program prior to year-end.
4. There are sufficient applicants/needs to expend the
transferred funds in the Rehab Program.
5. The transfer of funds has been discussed with and supported
IV by Hennepin County staff.
Alternative Recommendation:
Return $10,000 in CDBG funds to the County.
Discussion/Decision Mode:
The City Council is a party with the HRA and Hennepin County to
the allocation agreements and will be requested to take the same
actions as the HRA at its June meeting.
Respectfully submitted,
Jame Prosser
Exec ive Director
JDP:cak
•
0
. RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO THE TRANSFER OF
YR XV SECTION 312 FUNDS TO REHABILITATION
DEFERRED LOAN PROGRAM
WHEREAS, CDBG YR XV funds in the amount of $10,000 have been
allocated to the City of Richfield for the HRA's Section 312
Rehabilitation Loan Program; and
and
WHEREAS, the total amount of these funds remains unexpended;
WHEREAS, there are no applicants currently waiting for
assistance to expend funds by December 31, 1990; and
WHEREAS, restrictive program eligibility requirements have
made it difficult to identify qualified applicants; and
WHEREAS, there are sufficient applicants/needs to expend the
remaining funds within the Rehabilitation Deferred Loan Program.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota that the HRA Chairperson and Executive Director are
authorized to execute an amendment to the Third Party Agreement
with the City Council and Hennepin County, to transfer remaining
CDBG YR XV Section 312 (Project No. 50089) funds in the amount of
$10,000, to the Richfield HRA's Rehabilitation Deferred Loan
(Project No. 50087) Program for expenditure prior to December 31,
1990.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 21st day of May, 1990.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
0
HOUSING AND REDEVELOPMENT AUTHORITY
4D HRA Letter No. 12
Agenda May 21, 1990
Issue Statement:
Authorization to modify Vo-Tech contracts for 7000 Oakland and
7101 First Avenue South by extending the project completion and
payment dates and contract price.
Background:
The HRA authorized contracts with South Hennepin Vocational
Technical College (Vo-Tech) to initiate two projects in 1989-90.
A rehabilitation project at 7000 Oakland Avenue was authorized
November 21, 1988 and a new construction project at 7101 First
Avenue was authorized August 21, 1989.
In 1989, Vo-Tech changed its curriculum schedule. This change
required the carpentry program to be cut from 24 months to 21
months. Initially, it required that the carpentry program be
closed during the summer of 1989 in order to conform to the new
scheduling sequence. The reduced availability of the carpentry
program in 1989 has altered the construction schedule for both
projects.
Vo-Tech has submitted revised construction schedules to
facilitate timely completion of the projects. The present and
proposed completion and payment dates are identified on the
attached summary of contract modifications.
Vo-Tech is confident in their ability to meet the revised
schedule. Vo-Tech is also confident that two additional projects
can be initiated in 1990; an on-site construction project at 6321
Morgan and a new construction to be built on campus and relocated
to a Richfield site.
A contract modification to increase the contract price for 7000
Oakland is also requested. Additional expenses are as follows:
Cable Moving Charges $ 437.50
Increase in Dumpster fee $4,000.00
Total $4,437.50
Moving structures which are higher than one story often requires
utility companies to disconnect cables in the path of the move.
Utility companies charge for this service at an hourly rate. It
is extremely difficult to estimate the exact number of hours a
house move will take and the amount of time the utility companies
will be required to provide assistance throughout the move. In
moving the structure to 7000 Oakland, the cost for utility
companies to disconnect cables was $437.50 over the estimated
cost.
•
Due to the rapid increase of waste disposal fees over past
months, dumpster fees have increased considerably. The price per
dumpster has increased from $200 to $700. This increase was not
anticipated and beyond the control of Vo-Tech.
Recommended Motion:
Adopt the attached resolution authorizing:
1. A change in the completion dates for the 7000 Oakland
Avenue and 7101 First Avenue projects from April 1, 1990 to
November 1, 1990 and from October 31, 1990 to April 1, 1991,
respectively.
2. A change in the payment dates of the 7000 Oakland Avenue
and 7101 First Avenue projects from April 30, 1990 to
December 1, 1990 and from November 30, 1990 to May 1, 1991,
respectively.
3. A change in the contract price for 7000 Oakland from
$63,121.00 to $67,558.50.
Basis for Recommendation:
1. A change in the Vo-Tech curriculum schedule during 1989
altered the construction schedule for the two projects.
2. Vo-Tech has submitted revised construction schedules to
Is facilitate completion of the projects in a timely manner.
3. Vo-Tech used their best efforts to provide accurate price
estimates.
4. Price increases were beyond Vo-Tech's control.
5. The increased expenses at 7000 Oakland can be accommodated
from proceeds of sale of the completed dwelling.
6. While delays in the completion schedule are always
discouraging, the advantage of Vo-Tech association does
require flexibility in project scheduling.
7. Efforts have been made to improve the exterior appearance of
the Oakland house at the earliest date.
Alternative Recommendation:
Do not authorize contract modifications. Vo-Tech does not
have the capacity to complete the projects within the original
timeframe, has already absorbed cost overruns in the 7000
Oakland project and is unable to assume further encumbrances.
The use of a private contractor to complete the projects would
be the alternative. This would further increase total project
costs and consume considerable time to switch from Vo-Tech to
a private contractor.
Discussion/Decision Mode:
Contract changes, if acceptable to the HRA, will then be referred
to the school district for final action.
Respectfully submitted,
James . Prosser
Executive Director
•
JDP:cak
0
RESOLUTION NO.
RESOLUTION RELATING TO AMENDING VO-TECH
CONSTRUCTION AGREEMENTS
7000 OAKLAND AND 7101 FIRST AVENUES
WHEREAS, the Housing and Redevelopment Authority (HRA) in
and for the City of Richfield has entered into contracts with
South Hennepin Technical College (Vo-Tech); and
WHEREAS, a rehabilitation project and new construction
project were authorized for 7000 Oakland Avenue and 7101 First
Avenue South, respectively; and
WHEREAS, the HRA has determined that it is appropriate to
amend both agreements as they relate to the date of completion
and payment of work; and
WHEREAS, the HRA has determined that it is appropriate to
amend the contract for 7000 Oakland to increase the contract
price.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield
Minnesota as follows:
The Chairperson and Executive Director are authorized to
10 execute contract amendments which:
1. Change the completion dates for projects at 7000 Oakland and
7101 First Avenue South to November 1, 1990 and April 1,
1991, respectively.
2. Change the payment dates for projects at 7000 Oakland and
7101 First Avenue South to December 1, 1990 and May 1, 1991,
respectively.
3. Change the contract amount for 7000 Oakland Avenue South to
$67,558.50.
Passed by the Housing and Redevelopment Authority in and for
the City of Richfield, this 21st day of May, 1990.
ATTEST:
Thomas E. Harms, Chairperson
0 Joan Helmberger, Secretary
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 13
Agenda May 21, 1990
Issue Statement:
Authorization to execute contract with South Hennepin Vocational
Technical School (Vo-Tech) to initiate a 1990-91 New Home
project.
Background:
Vo-Tech has requested that the HRA participate in a new
construction project for the school year 1990-91. The two
organizations have participated together in 13 projects since
1977. The projects provide rehabilitation and new construction
training opportunities for the Vo-Tech students and affordable
housing for the HRA. This will be the first "on-site" new
construction project. In previous projects, existing structures
for remodeling or new structures built at the Vo-Tech campus were
moved onto the sites.
On September 18, 1989, the HRA authorized staff to acquire the
property at 6321 Morgan Avenue South through the Voluntary
Acquisition Program. The Richfield Planning Commission made a
finding that residential use of the property was in conformance
with the Comprehensive Plan.
Staff, in cooperation with Vo-Tech architectural drafting
faculty, has developed project plans to meet all setback
requirements, compliment the design of neighboring homes and
incorporate interior features desirable in today's market. The
new house will have approximately 1,670 square feet of finished
living area. It will feature a split level design with a living
room, dining area, kitchen, four finished bedrooms and one and
3/4 bathrooms. Space in the lower level is provided for a
laundry area and future family room. In addition, an exterior
deck adjacent to the dinning area and a parking pad with access
from the alley will be provided.
The amount of the Vo-Tech contract for this project is not to
exceed $66,307. The design and size of the Morgan Avenue project
requires more framing than past new construction projects and a
greater number of windows. These two factors account for a
slightly higher contract price than the previous project at 7101
First Avenue South ($59,000). The total project costs, however,
are consistent.
The estimated project costs and funding source follows:
Activity Funding Source
Acquisition, site: $ 32,000 CDBG
Demolition, site: $ 2,675 CDBG
Vo-Tech Contract: $ 66,307 Proceeds of Sale
Landscaping: $ 4,000 Proceeds of Sale
Legal (Sale): $ 600 Proceeds of Sale
Closing Costs: $ 2,500 Proceeds of Sale
Total Cost: $108,082
Private contractors will complete the electrical, plumbing and
heating portions of the work. This is included in the Vo-Tech
contract. Legal counsel has previously reviewed the contract
requirements. A copy of the floor plans and building elevations
also accompany this letter.
The home will be sold to a first time home buying family of three
to six members having a moderate income (as determined by Section
8 income limits) of between $32,150 and $40,150. Although the
completed value of the home has not yet been determined by
independent appraisal, staff estimates that the value should
approximate $95,000. The initial purchase price would be
approximately $75,000. The $20,000 second lien would be used to
recover any difference. Proceeds of the sale are used to pay the
Vo-Tech contract.
It is anticipated that a reduced interest rate mortgage would be
secured from the Minnesota Housing Finance Agency in the summer
of 1991, if available. FHA financing is an acceptable
alternative pending mortgage interest rates at the time.
Staff has reviewed the project with the adjoining neighbors.
Concerns were raised related to tree removal, storm water
drainage off the property and student parking during
construction. Each item was discussed at the meeting. The
neighbors were pleased with the design of the structure and
indicated support for the project.
Recommended Motion:
It is recommended that the HRA adopt the attached resolution
authorizing the execution of the Vo-Tech contract in the amount
of $66,307, for the 1990-91 new construction project at 6321
Morgan Avenue.
Basis of Recommendation:
1. The site has been cleared and is ready for development.
2. Plans have been developed to meet site requirements and
program needs of the HRA.
3. The Inspection Division has had an opportunity to review the
plans for the project.
4. Site development is consistent with the Comprehensive Plan.
5. Adjoining neighbors have had an opportunity to review the
project with staff and indicated support.
Alternative Recommendation:
Do not authorize execution of the Vo-Tech contract. This would
delay development which could prohibit Vo-Tech from including the
project in their 1990-91 curriculum schedule.
Discussion/Decision Mode:
The 6321 Morgan Avenue South project will be started in July,
1990. Contract execution would occur immediately to avoid delays
in project development.
Respectfully submitted,
James live rosser
Execu Director
JDP:cak
•
0
0 RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO VO-TECH AGREEMENT FOR
6321 MORGAN AVENUE SOUTH
WHEREAS, The Housing and Redevelopment Authority (HRA)
acquired the real property at 6321 Morgan Avenue South, legally
described as:
Lot 19, and the North 20 feet of Lot 18, Block 9
Ray's Lynnhurst Addition
WHEREAS, a project has been proposed in cooperation with
South Hennepin Vocational Technical Center (Vo-Tech); and
WHEREAS, the property at 6321 Morgan Avenue South would be
developed with new construction; and
WHEREAS, the Agreement price for the new construction
project will not exceed $66,307; and
WHEREAS, following completion of the new construction work
the property will be sold to a first time home buying, moderate
income family.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota that the HRA Chairperson and Executive Director are
authorized to enter into a construction agreement for an amount
not to exceed $66,307 for the new construction project at 6321
Morgan Avenue South.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 21st day of May, 1990.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
0
SUMMARY OF
CONTRACT REQUIREMENTS FOR VO-TECH PROJECT AT
6321 MORGAN AVENUE SOUTH
- The construction of a split-level structure at 6321 Morgan
Avenue South.
- The installation of heating, electrical and plumbing systems.
- Interior finishings; floor coverings, millwork, painting and
staining.
- Completion by July, 1991.
- Supervision of labor and insurance coverage to be the
responsibility of Vo-Tech.
- Vo-Tech is responsible for a one-year warranty for defects
caused by faulty workmanship or defective materials, a two-
year warranty on installation of plumbing, electrical, heating
and cooling systems and a ten-year warranty on structural
defects.
- A provision specifying the Vo-Tech's responsibilities
concerning timely completion of the exterior facade, and
routine site maintenance during the construction period.
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 14
Agenda May 21, 1990
Issue Statement:
Authorization to submit an application to the Minnesota
Department of Public Service (DPS) for a Community Energy Council
(CEC) FY'90 Cycle I grant.
Background:
A grant opportunity is available to the HRA from DPS. CDC grants
have been awarded to Minnesota communities since 1984. These
grants are awarded by DPS to those communities which have active
energy conservation programs and local energy councils (the HRA
is the energy council in Richfield). Revenues for the grants
have been obtained by the state from fines levied against
domestic oil companies by federal courts.
Since 1984, Richfield has been awarded four grants: $15,000,
during 1984 and 1985; $15,000 in 1987; $45,000 from February,
1988 through July, 1989; and $30,000 from April, 1990 through
April 30, 1992.
These funds have contributed to the success of the Richfield
Energy Program with such projects as:
- Additional staff support to develop and implement energy
program activities.
- Continuous Home Energy Checkup (HEC) audit promotion on a
City-wide house-by-house basis which resulted in more than
500 audits during 1988 and 400 in 1989.
- House Doctor home weatherization grants for 40 lower income
households.
- Improved electrical usage analysis for audit clients.
- Development of an educational video tape which provides home
conservation advice.
The new grant, if awarded, would provide Richfield the
opportunity to continue its current energy conservation services
and develop new programs in alignment with the recent Public
Utilities Commission (PUC) rulings. The programs and services
proposed include:
- Expanded marketing materials to increase participation in
energy conservation programs.
- Expanded education elements for residents.
0 - Additional House Doctor services.
• - Formulate a continuing support Home Energy Checkup (HEC) to
check furnaces for safety and efficiency.
- Formulate additional water conservation elements for the
Home Energy Checkup (HEC).
Recommended Motion:
Authorize staff to submit an application to the Minnesota
Department of Public Service for a Community Energy Council Grant
in an amount not to exceed $10,000.
Basis of Recommendation:
1. Existing program revenue sources allow for continuous
program service but not for future program development.
2. No additional grant offerings are anticipated in the
next 12 months.
3. The "Bundle-Up Richfield" program is well received
and in continuous demand.
Alternative Recommendation:
Do not authorize submittal of a grant application. Grant funds
would be allocated to other communities.
Discussion/Decision Mode:
Authorization would permit staff to submit the application by the
May 30 deadline.
Respectfully submitted,
James Prosser
Execu ve Director
JDP:cak
•
RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO APPROVING THE
SUBMISSION OF A GRANT APPLICATION TO THE
MINNESOTA DEPARTMENT OF PUBLIC SERVICE
WHEREAS, the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota (the "HRA") has the capability
of granting authorization for the submission of an application to
the Minnesota Department of Public Service requesting allocation
of an Community Energy Council (CDC) Grant; and
WHEREAS, the CEC Grant request is not to exceed the amount
of $10,000; and
WHEREAS, the CEC Grant would be used to fund the City of
Richfield's Energy Conservation Programs, expanding and
continuing current services.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota as follows:
- The Executive Director is authorized to apply to the
State of Minnesota Department of Public Service for a
Community Energy Council Grant; and
- The Executive Director is authorized to execute required
grant documents and implement a program as outlined at
the May 21 board meeting.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, this 21st day of May, 1990.
ATTEST:
Joan Helmberger, Secretary
Thomas E. Harms, Chairperson
•