05-15-89 agenda• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 16
May 15, 1989 Agenda
Issue Statement:
Authorization to proceed with ILN Streetscape Improvements.
Background:
The ILN Redevelopment and Tax Increment Financing Plan (Plan) was
approved in the fall of 1985. The Plan included streetscape
improvements and landscaping throughout the ILN, the buffering of
77th Street, and the upgrading and reinforcement of the
commercial area along Lyndale Avenue.
Last year, consistent with the Plan, the area just north of 77th
and east of Lyndale was buffered with a noise wall and
landscaping. Purchase of a number of houses along the north side
of 77th west of Lyndale is in process through the use of MSA
funds. Further, the City Council has authorized $10,000 of CDBG
funds to initiate a pilot incentive financing program for the
upgrade of building facades along Lyndale.
An overall landscaping and streetscape program should be
initiated to improve the image of the area and, more
specifically, to soften the appearance and provide an identity
for the Lyndale Avenue commercial area. Implementation of this
phase of the Plan requires some additional landscaping east of
• Lyndale along Harriet Avenue and 78th Street. West of Lyndale,
this interim phase contemplates the planting of trees in several
areas which could be relocated upon redevelopment.
The Lyndale area north of 77th is more difficult to work with
because of the lack of space in front of the buildings and the
need for parking. It is, however, important for the city to
assist in the upgrading and reinforcement of commercial areas
where redevelopment may be neither desired nor feasible.
Participation by the business owners will be required in
developing a workable plan for landscaping or other streetscape
improvements.
The planning process must be initiated this spring so that
meetings can be held with the business owners, a site specific
plan developed, bids solicited and the landscaping accomplished
this growing season. Funding for the purchase and installation
of landscaping materials is available from the ILN bonds of 1988.
It is contemplated that the plans and bid specifications would be
developed and cost estimates made for presentation to the HRA in
June.
The Plan requires work to be done by November, 1989 for all parts
of the area to remain in good standing as a tax increment
district.
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Recommended Motion:
Authorize the initiation of the ILN streetscape improvement
program by staff and BRW including the provision of $12,000 to
the current BRW contract.
Basis of Recommendation:
1. The approved Plan contemplates the installation of these
improvements.
2. The improvements would enhance the appearance of the area
and the continued viability of the ILN tax increment
district.
3. The BRW contract contemplates their assistance in
designing this portion of the streetscape plan.
4. Funds are available from the ILN budget to pay BRW.
Alternative Recommendation:
1. Not authorize the initiation of the streetscape program.
2. Initiate a portion of the streetscape program.
Discussion/Decision Mode:
Authorization at the May 15th HRA meeting should provide adequate
time to formulate a plan with the appropriate ILN interests,
solicit bids and complete the landscaping before November 1,
1989.
Respectfully submitted,
Ja D. Prosser
Executive Director
JDP:sae
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. . 1-.5
May 15, 1989
Issue Statement:
Authorization to submit an application to the Minnesota
Department of Public Service (DPS) for a Community Energy Council
(CEC)residential energy program grant.
Background:
A grant opportunity, not to exceed $45,000 is available to the
HRA from DPS. CEC 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 three grants; $15,000,
during 1984 and 1985, $15,000, in 1987, and $45,000 from
February, 1988 through July, 1989.
These latest funds have contributed a great deal 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.
- Housedoctor 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. The programs and services proposed
include:
- Expanded marketing strategies to increase participation
in energy conservation programs.
- Additional housedoctor services in conjunction with
Minnegasco.
• - Operation insulation in conjunction with Minnegasco
and the Minneapolis Energy Office.
• - Furnace tune-up.
- Formulate an expanded education element.
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 $45,000.
Basis of Recommendation:
1. Present grant funds will be expended by July 30, 1989.
2. Existing program revenue sources allow for continuous
program service but prevent future program development
and investments to serve previously unassisted
households.
3. No additional grant offerings are anticipated in the
next twelve months.
4. The "Bundle-Up Richfield" program is well received
and in continuous demand.
Alternative Recommendation:
Do not authorize submittal of a grant application. This would
• limit new program initiatives in 1989 to 1991. Grant funds would
be allocated to other communities.
Discussion/Decision Mode:
Authorization, would permit staff to submit the application by
the May 24th deadline.
Respect ly submitted,
James Prosser
Executive Director
JDP:sae
HRA 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 State of
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 (CEC) Grant.
WHEREAS, the CEC Grant request is not to exceed the amount
of $45,000.
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,
-that 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 15 board meeting.
Passed by the Housing and Redevelopment Authority of
Richfield, Minnesota this 15 day of May, 1989.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger Secretary
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HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 14
Agenda, May 15, 1989
Issue Statement:
Adoption of resolution establishing just compensation and
authorizing the purchase of 7600, 7616, 7625 and 7645 Emerson
Avenue, 7644 Dupont Avenue, 7644 Colfax Avenue and 7645 Bryant
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 initial implementation of the Plan
began in 1987 when the HRA authorized the purchase of property
east of Lyndale Avenue. These acquisitions permitted the
installation of public improvements adjacent to 77th Street.
The City Council has recently authorized the expenditure of
Municipal State Aid (MSA) revenues for purchase of additional
property west of Lyndale Avenue. MSA funds are derived from
• state gasoline tax revenues. MN Dept. 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 will
be 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 will be necessary
to purchase 16 homes (see attached map). In April a letter was
sent to the 16 homeowners. They were invited to indicate an
interest by March 30th, in voluntarily selling their home. Seven
homeowners responded favorably. The seven properties are listed
at the beginning of this letter and in the attached resolution.
MNDOT rules prescribe the process to be followed when purchasing
property. The seven properties were appraised by Mark Hoffman
and Bill Chase 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 reports and
concurs with the analysis and the value conclusion for each
property. He has recommended setting just compensation at the
values indicated in the resolution which total $527,500. (See
Attachment B for description of property). Residents in these
homes would also be eligible for relocation benefits as required
by state statute and MNDOT procedures.
is Staff is studying the future use of these homes once they are
purchased. Some owners will likely move quickly, others may wish
• to stay for a period of time. For those desirous of staying,
rent would be charged at a rate so the former owners could be
made responsible for maintenance activities. For the longer
term, staff is exploring the feasibility of utilizing the
structures at scattered sites within the City.
Recommended Motion:
Adopt the attached resolution which sets just compensation and
authorizes staff to negotiate and purchase the property at the
values indicated. The Executive Director and HRA Chairperson are
authorized to execute purchase agreements in the amount of just
compensation.
Basis of Recommendation:
1. The properties have been identified for acquisition in the
approved Plan.
2. MSA funds are available for the acquisition.
3. The owners have 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:
At least $480,000 of the MSA funds must be expended prior to
September 1, 1989 or they will be lost. By authorizing purchase
and negotiations May 15th, that goal can be met.
Respect ully submitted,
Jam s D. Prosser
Executive Director
JDP:sae
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HRA RESOLUTION NO.
RESOLUTION ESTABLISHING JUST COMPENSATION AND
AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT
7600 EMERSON AVENUE SOUTH
7616 EMERSON AVENUE SOUTH
7625 EMERSON AVENUE SOUTH
7645 EMERSON AVENUE SOUTH
7644 DUPONT AVENUE SOUTH
7644 COLFAX AVENUE SOUTH
7645 BRYANT AVENUE SOUTH
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:
N. 161-1/2 feet of E. 1/2 of W. 1/2 of NE 1/4 of SW 1/4 of SE 1/4
Except Road (7600 Emerson Ave. So.);
S. 53 feet of N. 265 feet of E. 1/2 of W. 1/2 of NE 1/4 of SW 1/4
of SE 1/4 Except Road (7616 Emerson Ave. So.);
• N. 75 feet of S. 310 feet of W. 1/2 of E. 1/2 of NE 1/4 of SW 1/4
of SE 1/4 Except Street (7625 Emerson Ave. So.);
S. 85 feet of W. 1/2 of E. 1/2 of NE 1/4 of SW 1/4 of SE 1/4
Except Street (7645 Emerson Ave. So.);
Lot 8 Northfelt Addition (7644 Dupont Ave. So.);
That part of the E. 1/2 of W. 1/2 of NW 1/4 of SE 1/4 of SE 1/4
lying S. of N. 558 feet thereof Except Roads.(7644 Colfax Ave.
So.); and
Lot 7 Elmquist's Addition (7645 Bryant Avenue);
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 these
properties 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
40 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 as follows:
7600 Emerson Avenue: $92,000
7616 Emerson Avenue: $77,000
7625 Emerson Avenue: $61,000
7645 Emerson Avenue: $35,500
7644 Dupont Avenue : $96,000
7644 Colfax Avenue : $95,000
7645 Bryant Avenue : $71,000
2. That the Executive Director is authorized and directed to
commence negotiations for the purchase of said real
properties.
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 15th
day of May, 1989.
Thomas E.'Harms, Chairman
ATTEST:
Joan Helmberger, Secretary
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ATTACHMENT B
Single family expansion dwelling; stucco exterior; about 54 years
of age; unfinished basement; first floor, contains living and
dining room, kitchen/dinette, three bedrooms and a bedroom/den
with two bathrooms; the second floor is a large bedroom.
7616 Emerson Avenue
Expansion bungalow; aluminum siding; about 48 years of age;
basement unfinished; first floor contains living room, 2
bedrooms, kitchen and bath, bath updated, kitchen expanded and
several rooms redecorated; the expansion area is finished and
used as a bedroom.
7625 Emerson Avenue
Rambler; aluminum siding; about 51 years old; basement
unfinished; first floor has a kitchen/dinette, living room, den,
bedroom and a full bath, den could be a second bedroom, living
room recently redecorated, kitchen/dinette updated 10 years ago,
bath recently remodeled.
7645 Emerson Avenue
is Single family, 1.5 story; masonite siding; 49 years old; full
basement unfinished; first floor living room, bedroom, bath and
kitchen/dinette; second floor has two bedrooms.
7644 Dupont Avenue
Rambler; brick, wood shake exterior; about 32 years old; basement
finished with family room, den, laundry, 3/4 bath, fireplace and
new furnace; 3 bedrooms on first floor, full bath,
kitchen/dinette, fireplace, rooms recently redecorated.
7644 Colfax Avenue
Expansion bungalow; aluminum siding; about 39 years old;
approximately 55% of basement finished with family room,
fireplace and 3/4 bath; first floor contains 2 bedrooms, bath,
dining room, living room and kitchen/dinette, stone fireplace in
living room; expansion area finished and used as a larger
bedroom.
7645 Bryant Avenue
Rambler; wood shake exterior; about 36 years old; basement
partially finished with family room; 4 bedrooms on first floor,
living room with dining area, kitchen and bath updated; new 2 car
garage.
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 13
Agenda May 15, 1989
Issue Statement:
Consideration of HRA Attorney appointment.
Background:
John B. Dean has left the firm of LeFevere, Lefler, Kennedy,
O'Brien and Drawz effective May 1, 1989. John, along with
Charlie LeFevere and Ron Batty, has joined the firm of Holmes and
Graven, effective May 20, 1989.
The city's agreement with LeFevere, Lefler is in essence a
package agreement. The agreement specifically states "The city
appoints the firm as City Attorney with John B. Dean as primary
legal counsel."
The city staff has interviewed both LeFevere, Lefler and the
Holmes and Graven firm. At the April 24, 1989 city council
meeting, the city council accepted the city staff recommendation
to appoint the firm of Holmes and Graven as the City Attorney,
with John B. Dean as primary legal counsel.
Recommended Motion:
Retain the firm of Holmes and Graven, with John B. Dean as
principal attorney, for the HRA.
Basis for Recommendation:
1. Staff has reviewed the qualifications of LeFevere, Lefler
and their designated attorneys and Holmes and Graven and
their designated attorneys. The review indicated that both
firms had excellent municipal background and experience.
The significant difference between the firms included the
experience of key personnel designated to provide services
to Richfield. John Dean has been the assistant to the
attorney for 16 years, and has served as city attorney
officially since August, 1988. He has been the official HRA
attorney for several years. He has provided excellent
representation for the city. The firm of Holmes and Graven
has the capability of providing good general backup support
for Mr. Dean. The addition of John Dean, Charlie LeFevere,
and Ron Batty further enhances this firm's capabilities.
2. The Lefevere Lefler firm designated David Kennedy to provide
legal services for the city. David Kennedy is a fine
municipal attorney. The recommendation to appoint John B.
Dean and Holmes and Graven is not a reflection on.Mr.
Kennedy's capabilities, but rather the previous experience
with John Dean.
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3. The fee structure for both firms is virtually identical.
Holmes and Graven has committed to maintaining the fee
structure established in the LeFevere Lefler retainer
agreement for the balance of 1989.
Discussion/Decision Mode:
This item has been placed on the May 15, 1989 HRA agenda for
consideration.
Respec ully submitted,
'-Ly
Ja s D. Prosser
Ex cutive Director
JDP:eja
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