03-18-91 agenda~ HOUSING AND REDEVELOPMENT AUTHORITY
MARCH 18, 1991
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF DECEMBER 17,
1990 AND (2) REGULAR HRA MEETING OF JANUARY 22, 1991
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. CONSIDERATION OF RESOLUTION ESTABLISHING JUST COMPENSATION
AND AUTHORIZING PURCHASE OF 7645 COLFAX AVENUE
HRA LETTER N0. 7
3. EXECUTIVE DIRECTOR REPORT
4. CLAIMS. AND PAYROLL
ADJOURNMENT
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 7
Agenda March. l8, 1991
Issue Statement:
Adoption of resolution establishing just compensation and
authorizing the purchase of 7645 Colfax Avenue.
Backatround
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 within the expanded right-of-way. MSA funds are derived
from state gasoline tax revenues. The Minnesota 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, 13 homes have been purchased from
owners who have voluntarily indicated a desire to sell.
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, $84,000. The property is a single family home; wood
shake exterior; about 41 years of age; partially finished
basement; one bedroom, bath, living and dining rooms and kitchen
on the first floor. The second floor is a finished expansion
with a large bedroom. 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 Chair are also
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:
Respond to the owners interest in receiving an offer to purchase
as soon as possible. _
Resp@~t,/~ully submitted,
Ja elf Prosser
Ex cu ive Director
JDP:ds
HRA RESOLUTION N0.
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
7645 COLFAX 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:
That part of the West 480 feet of the North 1/2 of the SE 1/4 of
the SE 1/4 lying South of the North 558 feet there of and East of
the West 1/4 of the SE 1/4 of the SE 1/4 except the road.
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 $84,000.
2. That the Executive Director is authorized and directed to
commence negotiations for the purchase of said real
.property.
3. That the Chair 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 18th
day of March, 1991.
Thomas E. Harms, Chair
ATTEST:
Joan Helmberger, Secretary