Loading...
11-18-91 agendaHOUSING AND REDEVELOPMENT AUTHORITY NOVEMBER 18, 1991 7:00 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER APPROVAL OF MINUTES OF REGULAR HRA MEETING. OF OCTOBER 21, 1991 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6401 BLOOMINGTON, 6612 SECOND, AND 6321 HUMBOLDT AVENUES IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT HRA LETTER N0. 37 3. CONSIDERATION OF RESOLUTION AUTHORIZING ACQUISITION OF 6501 15TH AVENUE HRA LETTER N0. 38 4. CONSIDERATION OF RESOLUTION RELATING TO ISSUANCE OF .COMPLETION CERTIFICATES TO MARV ANDERSON HOMES, INC., FOR RICHFIELD REDISCOVERED PROPERTIES AT 6809 LOGAN AVENUE AND 6424 JAMES AVENUE HRA LETTER NO. 39 5. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF ANNUAL CONTRIBUTION CONTRACT TO RECEIVE SECTION 8 VOUCHER HOUSING ASSISTANCE PAYMENTS FROM DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HRA LETTER NO. 40 6. DISCUSSION REGARDING APPEARANCE OF COMMERCIAL AREA NEAR GRAHAM AND LYNDALE AVENUES WHICH INCLUDE BIG WHEEL AND TRESTMAN MUSIC PROPERTY HRA LETTER NO. 41 7. PUBLIC HEARING AND CONSIDERATION OF HOUSING AND REDEVELOPMENT AUTHORITY 1991 REVISED/1992 PROPOSED BUDGET 8. EXECUTIVE DIRECTOR REPORT 9. CLAIMS AND PAYROLL ADJOURNMENT HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 41 Agenda November 18, 1991 Issue Statement• During the October HRA meeting, there was a discussion about the appearance of the commercial area near. Graham and Lyndale Avenues (GADAL) which include the Big Wheel and Trestman Music property. Staff was requested to present alternatives to the November meeting for discussion by the HRA. Background• The four acre redevelopment area north and west of Lyndale Avenue and Lake Shore Drive has been included in a number of redevelopment proposals over the last decade. Major proposals were reviewed from Walker Management, Roger Derrick, and Stuart Corporation and minor proposals from Trestman and Shaller. All of the major proposals dealt with the issue of the prominence of this site area as an entrance to the LHN commercial area. During that same time, Lyndale Hardware, Cricket Photo and the VFW have been upgraded to different degrees. The remaining area consisting of the Big Wheel and Trestman buildings, suffer in contrast and appear somewhat dated and sign cluttered. To remedy the apparent problems of this area would require some degree of facade work, organization of signage, landscaping, parking and pavement work. The options for building upgrade, including signage, include: facade treatment with glass and new framing, stucco over the exposed concrete block, a canopy treatment across the front and landscaping. Preliminary cost estimates range from a minimum of $145,000 to $180,000 depending on the type of materials used. Graham Avenue and Circle Drive improvements: 1. $28,900; remove existing pavement, grade and re-pave. 2. $66,500; remove existing pavement, grade, re-pave, install curb and .gutter, organize and stripe street parking, install storm sewer. Paving of the three HRA lots would cost a minimum of $22,000 to $30,000. There is no existing demand for parking from the two buildings nor will the upgrade require such. However, these lots are currently used for parking by Lyndale Hardware and Market Plaza and this parking upgrade could be more easily accomplished at the same time. It should be noted that the Lake Shore Drive Homeowners group will have additional demands which will drive the cost up. The expenditure of HRA funds could not be justified based on the tax increment generated. Other options for financing available, however, include: 1. Owner financing of upgrade improvements on their private property and HRA, or City financing through CP705, to upgrade the public improvements. This is a relatively clear balance between public purpose and private gain. 2. Loan program at below market rate interest to the property owners. A development fund could be established out of LHN tax increment funds. 3. Cost share of some percentage such as 25-75 percent of project cost if justifiable on the basis of public benefit. Recommended Motion: Consider and discuss the options available. Basis for Recommendation: 1. The Trestman and Big Wheel buildings appear cluttered and dated. 2. No apparent large scale development is near in time. 3. The expenditure of substantial funds on this ,site area may deter or extend the time for redevelopment. Alternative Recommendation: None Decision Mode• None. ly submitted, James D.~ Prosser Execut a Director JDP:ds HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 40 Agenda November 18, 1991 Issue Statement: Adoption of a resolution authorizing execution of an Annual Contribution Contract (ACC) and. the preparation of .supporting documents required by federal regulation to receive Section 8 Voucher Housing Assistance payments-from the Department of Housing and Urban Development (HUD). Background On October•10, 1991, the HRA was notified by HUD that 22 of the 50 Section 8 units applied for by the HRA in July 1991 were being made available. As in 1988 and 1989, when the HRA secured 208 units toward an independent program, HUD-again requires the HRA to prepare certain contracts, reports, procedures, and financial data. A summary of the ACC requirements follows: ® HUD will provide $137,736 annually and $688,680 over a five year period for client housing payment assistance and HRA administrative fees. The average per month assistance for clients will approximate $360. The approximate administrative fee earned by the HRA per unit leased each month will be $48. ® Approximately 22 households currently on the Richfield waiting list will benefit; three - one bedroom, 13 - two bedrooms, six - three bedrooms. ® Rental assistance will be calculated based on the following rental rates (called the "pay standard" by HUD) in Richfield: $445 - one bedroom, $540 - two bedrooms, $675 - three bedrooms. ~ Two of the 22 vouchers will be reserved to assist the nonprofit Cornerstone Agency which operates in Richfield and Bloomington. They provide local families at risk of becoming homeless with the stability provided by rent assistance resources. ® The housing assistance and administrative fees which the HRA is eligible for must be spent on eligible housing activities in accordance with federal regulations. ® Program administration is the responsibility of the Executive Director. HUD requires the HRA to delegate the authority to the Executive Director to, on a continuing basis, prepare and execute contracts, documents and reports required by federal regulation to administer this ACC: - Administrative procedures; the administrative plan for working with clients and general program operations; - Equal opportunity plan; the affirmative action process for providing rental assistance and hiring personnel; - Contracts with landlords to make housing assistance payments; - Housing assistance payment checks; - Annual budget estimates; - Budget adjustments, if any; - The quarterly requisitions which advance monies from HUD for housing assistance payments and administrative fees, consistent with the budget; and - The year end reconciliation of program expenses and reimbursement for expenses. This allocation of 22 units was not anticipated for the 1992 budget but will be incorporated into revisions for the 1992 budget next summer. Recommended Motion: Authorize the Chairperson and Executive Director to execute those documents necessary to effectuate the 1991 ACC with HUD for 22 units of assistance. The assistance will be allocated in accordance with federal regulations and requirements as outlined in this HRA Letter. Basis for Recommendation: 1. HUD has offered an allocation of its budget authority for Richfield to administer 22 units of Section 8 program assistance. 2. The program will be smaller than it was at 371 units a few years ago. With the 22 units, total units administered will be 349. However, 35 of the 349 units are in-other communities. 3. The receipt of this budget authority improves the Section 8 administrative budget. 4. Present staff can capably administer the workload. The experience with the previously approved ACC's of 1988 and 1989 has resulted in this conclusion. 5. HUD requires the HRA to provide authority to the Executive Director to administer the Section 8 allocation for housing purposes in accordance with federal regulation. Alternative Recommendation: Do not accept this HUD allocation. However, Richfield would not be able to serve waiting households and would not benefit from the administrative fees received. Decision Mode• If the HRA concurs, contracts and supporting documents and reports would be completed prior to the end of 1991. The administration of this new allocation would then be able to start in January-1992. y submitted, Jame ~. Prosser Exec t've Director JDP:ds HRA RESOLUTION N0. RESOLUTION AUTHORIZING EXECUTION OF AN ANNUAL CONTRIBUTION CONTRACT (ACC) AND THE PREPARATION OF SUPPORTING DOCUMENTS REQUIRED BY FEDERAL REGULATION TO RECEIVE SECTION 8 VOUCHER HOUSING ASSISTANCE PAYMENTS FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD). WHEREAS, The HRA administers an independent Section 8 Voucher-Rent Assistance Program; and WHEREAS, On October.. 10,-1991, HUD notified the HRA that an allocation of rental assistance was being .made available to Richfield; and WHEREAS, the HUD allocation will provide $137,736 annually for five years to assist approximately 22 households according to a unit mix and pay standard as outlined in HRA Letter No. , November 18, 1991; and WHEREAS, prior to implementation of this allocation, it is necessary for the HRA and HUD to execute an ACC outlining the obligations of the parties with regard to the program; and WHEREAS, the HRA's primary obligation is that the housing assistance and administrative fees which the HRA is eligible for must be spent on eligible housing activities in accordance with federal regulations; and WHEREAS, the HRA must also submit other administrative documentation to HUD to meet HUD rental assistance program requirements; and WHEREAS, HUD requires the HRA to delegate the authority to the Executive Director to, on a continuing basis, prepare and execute contracts, documents and reports required by federal regulation to administer this ACC; and WHEREAS, two of the 22 vouchers will be reserved to assist the nonprofit Cornerstone Agency in housing local families that risk being homeless without the stability provided by rent assistance resources. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1) The Chairperson and Executive Director are authorized to execute those documents necessary to effectuate the 1991 Annual Contributions Contract with HUD for 22 units of assistance which will be allocated for eligible housing activities in accordance with federal regulations and requirements as outlined in this HRA Letter No. 2) The Executive Director is authorized to prepare and execute additional documentation required by HUD for participation in the rental assistance program and to submit such documentation to HUD. 3) The Executive Director is authorized and .directed to take. any additional actions reasonably necessary to allow the continued operation of this allocation as part of the HRA's independent rent assistance program. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, this 18th day of November, 1991. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary BN:dkh HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 39 Agenda November 18, 1991 Issue Statement• Authorization to issue Completion Certificates to Marv Anderson Homes, Inc. for Richfield Rediscovered properties at 6809 Logan Avenue and 6424 James Avenue. Background• The HRA authorized development of the above. referenced properties by Marv .Anderson Homes in October and November, 1990. The development agreement provides for the issuance of a Certificate of Completion when construction is completed.. Construction was completed in late August and September, 1991. Both homes have been sold and occupied. Recommended Motion: Authorize the Chair and Executive .Director to execute. Completion Certificates in accordance with the attached resolution. Basis of Recommendation: 1. Construction has been completed and verified by Inspection Division staff. 2. Marv Anderson Homes, Inc. has performed in accordance with construction agreements and requested the issuance of Completion Certificates and the release of the.Letter of Credit performance security in the amount of $35,084. Alternative Recommendation: Do not issue Certificates of Completion at this time. Discussion/Decision Mode: The HRA may not unreasonably withhold approval of this request. y submitted, Jame. Prosser Execu ve Director JDP:ds HRA RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION RELATING TO THE ISSUANCE OF COMPLETION CERTIFICATES FOR RICHFIELD REDISCOVERED PROPERTIES AT 6809 LOGAN AVENUE AND 6424 JAMES AVENUE WHEREAS, in October and November, 1990, the Richfield Housing and Redevelopment Authority (HRA) and Marv Anderson Homes, Inc. entered into contracts for construction for single family homes; and WHEREAS, the homes are located at 6809 Logan Avenue and 6424 James Avenue; and WHEREAS, the construction agreements required the construction of homes and upon completion, the issuance of a Completion Certificate and the release of performance security; and WHEREAS, staff has verified by visual inspection that construction is completed and that performance security in the amount of $35,084 can be released. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield that: 1. Completion Certificates be issued for 6809 Logan Avenue and 6424 James Avenue. 2. The Letter of Credit performance security be released. Passed by the Housing and Redevelopment Authority of Richfield this 18th day of November, 1991. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that Marv Anderson Homes, Inc., has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development," dated between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota with respect to construction of the improvements in accordance with the approved construction plans and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: By Its Chairperson By Its Executive Director ,~~~~ -~ ~~ .!~ ~ ~ ~-~ n ~, ~ .~ i~ ~~~~ ~~e ~~ ~~~~~ -~ .~ ~~ :~~ ,~ ~- /' ~. ~ ~G~~~ ~~~ ~~~~~ 71~-~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 38 Agenda November 18, 199 1 Issue Statement• Authorization to acquire 6501 15th Avenue. Background• The HRA has utilized the Voluntary Acquisition Program 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 15th Avenue structure is substandard as to size and room arrangement and is located at the back of the lot. 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 $50,000. Staff has negotiated a purchase price of $50,000 pending authorization by the HRA. The HRA would be responsible for site clearance and property maintenance following acquisition. The 1991 revised/1992 budget, provides $4,500 to clear the site (source: CDBG XVII), $600 for legal work to acquire (source: CDBG XVII) and $500 for property maintenance and insurance (source:- proceeds from sale of 1992 Vo-Tech project). The property would be tax exempt until development is completed. In September, the Vo-Tech began construction on campus, of a new house for a 1992-93 project. In anticipation of a joint project, staff has worked with the Vo-Tech architectural drafts person. on the design of this house. The house under construction would work nicely on the 15th Avenue site. The HRA can consider a construction agreement with Vo-Tech in December after staff meets with adjoining neighbors to discuss the design and project. The seller seeks HRA action now since replacement housing being considered cannot be finalized without the HRA intent to purchase. Recommended Motion: 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 action necessary for the HRA to acquire the property at 6501 15th Avenue for $50,000. 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 Vo~.untary Acquisition Program Guidelines. 3. Funds have been budgeted for acquisition, clearance, and maintenance from Yr. XVII CDBG. 4. Staff is finalizing the preliminary work which would commit this site to a 1992/93 Vo-Tech construction project. 5. A finding has been made by the Planning Commission that acquisition and disposition of the property for single family purposes is in conformance with the Comprehensive Plan. Alternative Recommendation: The HRA can choose not to acquire the property. However, staff presently has no alternative-for the timely commitment of CDBG funds and the development of a 1992 on campus/on site Vo-Tech project which would be completed and sold in 1993.- Delay may cause the seller to withdraw the offer and the HRA may lose a timely opportunity to acquire another garage home. Discussion/Decision Mode: HRA authorization in November will allow the closing to be scheduled with the owner. Respe y submitted, James D. Prosser Executive Director JDP:ds RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA AUTHORIZING THE ACQUISITION OF 6501 15th AVENUE 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 6501 15th Avenue, legally described as: Lot 24; Block 5, "Nokomis Gardens" Rearrangement of blocks one, two, three, four, and five Girard Parkview Hennepin County, Minnesota; and WHEREAS, the owner of 6501 15th Avenue, has volunteered to sell his property for $50,000; and WHEREAS, Community Development Block Grant (CDBG) funds will finance the acquisition of this parcel; and WHEREAS, a Planning Commission finding has been made 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 6501 15th Avenue for $50,000. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield this 18th day of November, 1991. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No . 3 '7 Agenda November 18, 1991 Issue Statement: Public hearing and authorization to sell Richfield Rediscovered properties. Background: In July 1991, the HRA authorized staff to modify the Richfield Rediscovered program to include the following: - participation by more than one builder; - HRA responsibility for marketing; and - greater house design flexibility. Since July, staff has worked with potential buyers and builders interested in developing the seven HRA owned sites. At the October HRA meeting, RSM Homes, Inc. of Prior Lake, MN., was authorized to buy the lot at 7129 First Avenue. The closing recently took place. During October, additional builder interest in purchasing property was expressed: Lot/House Price Upon Address Builder Lot Price Completion 6401 Bloomington RSM, Inc. $22,500 Prior Lake $108,488 6612 Second 6321 Humboldt Mark Johnson $26,000 Const., Inc. Bloomington Marlin Grant, $22,500 Bloomington $ 96,800 $ 90,000 (est.) Development agreements have been prepared for these builders which requires: - payment of the stated lot value upon completion of the home; - provision of financial security during the construction period with a letter of credit, or similar security; - completion of the home and payment for the lot during a 150 day construction period; and. - compliance. with design and insurance requirements. The HRA received a copy of the form of development agreement at the October HRA meeting. .The same agreement would be used with these three builders. The only variation is the sale. price, completion price, and required financial security. RSM Homes, Inc. builds about 100 homes a year, primarily in ~ Lakeville, Apple Valley, Burnsville, and Prior Lake. Their homes average 598,000 in price. Their building inspection and supplier references verify that they are a "real good builder with an above average product that always pays the bills on time". Mark Johnson Construction, Inc., builds about 18 homes each year, primarily in Eagan, Apple Valley, and Burnsville. Reference checks indicate that "Mark is a good builder that pays promptly". Mark Johnson Construction Inc. was also a 1991 Parade Of Homes °'Reggie Award" winner for value and craftsmanship with houses valued at 5209,000 to $229,000. Marlin Grant, relying on many of the same building and supplier resources he directed while President of Marv Anderson Homes, is developing a new construction company which hopes to generate five to six homes annually. Two additional lots - 6407 and 6415 15th Avenue are included in the public hearing. At the time the notice of public hearing was prepared, approximately three weeks ahead of the HRA meeting, there was builder and buyer interest for these two lots, but the negotiations have not yet been finalized. These two sites should not be considered by the HRA at this time. With HRA approval of these proposed sales, the number of unsold lots will be at three; 6407 and 6415 15th Avenue and 6538 Bloomington. Recommended Motion: Following the public hearing, adopt the attached resolution which authorizes the Chairperson-and Executive Director to execute agreements which sell 6401 Bloomington Avenue to RSM Homes, Inc., 6612 Second Avenue to Mark Johnson Construction, Inc. and 6321 Humboldt to Marlin Grant for development of new single family homes. Basis of Recommendation: 1. A check of references indicates these builders are experienced, capable, and financially secure. 2. The HRA has the lots at 6401 Bloomington, 6612 Second, and 6321 Humboldt available to sell. 3. A development agreement has been negotiated and is in conformation with program guidelines.- 4. The participation fee of $500 has been paid. 5. Notice of public hearing has been published. 6. Previously the Planning Commission found the sale of the lots for development of new homes to be in conformance with the City's comprehensive plan. Alternative Recommendation: Do not proceed with a development agreement with the identified builders. Discussion/Decision Mode: If the HRA concurs, closings are anticipated for late November or early December. Respe ully submitted, Jame Prosser Exec ive Director JDP:ds;- RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6401 BLOOMINGTON, 6612 SECOND, AND 6321 HUMBOLDT AVENUES 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 property being described as follows: 1. 6401 Bloomington Avenue Lot 23, Block 11, "Nokomis Gardens Rearrangement of Block 7-11 and 12, Girard Parkview, Hennepin County, Minnesota 2. 6612 Second Avenue 3. 6321 Humboldt Avenue The South 1/2 of the East 1/2 of Lot 5, "Goodspeed's First Plat, Hennepin County, Minnesota Lot 24, Block 4 "Rays Lynhurst", Hennepin County WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and, WHEREAS, a builder has been identified for each property, in accordance with a development agreement; and, WHEREAS, 6401 Bloomington Avenue would be purchased by RSM Homes, Inc. of Prior Lake for 522,500; and, WHEREAS, 6612 Second Avenue would be purchased by Mark Johnson Construction, Inc. of Bloomington for 526,000; and, WHEREAS, 6321 Humboldt Avenue would be purchased by Marlin Grant of Bloomington for 522,500; and, WHEREAS, the public hearing has been held after proper public notice with property at 6407 and 6415 15th Avenue not being considered by the HRA as part of this public hearing; and, WHEREAS, the Planning Commission has made a finding that the disposition of the property for residential purposes is consistent with the comprehensive plan. _ NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: 1. A public hearing has been held and 6401 Bloomington, 6612 Second, and 6321 Humboldt may be sold as specified in this resolution and in accordance with a development agreement with the HRA. 2. That the Chairperson and Executive Director are authorized to execute the Development Agreement and other agreements as required to effectuate the sales. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of November, 1991. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary