08-21-89 agenda
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 22
August 21, 1989 Agenda
Issue Statement
Authorization to execute an agreement with the Self Reliance
Center (SRC) to initiate a Furnace Efficiency Tune-up (FET)
Program.
Background:.
Since 1985, the City has contracted with SRC to provide energy
audit and housedoctoring services. SRC has invited Richfield to
participate with them in the FET program from October 1, 1989
through September 30, 1991.
SRC will provide approximately 300 furnace cleaning and tune-up
services for Richfield homeowners with natural gas, forced air
furnaces. Eligible participants are those that have previously
received an audit, or will receive one during the period of the
agreement, and have lower efficiency furnaces which would benefit
from the service. Funds are provided as part of a demonstration
grant SRC applied for and secured from the MN Legislative
Commission on Minnesota Resources.
FET focuses on tuning up and cleaning a furnace so that it will
operate at maximum efficiency. It has proven savings up to 12%
• per year for the average homeowners annual natural gas costs.
The program was developed by Sun Power Consumer Association in
Colorado. The program, as developed, has been delivered to over
10,000 homeowners in five states since it's inception.
Each service is valued at $50.00 to $100.00. All costs,
training, scheduling, insurance and liability will be the
responsibility of SRC. SRC will pay the Richfield HRA $1,000 for
administrative and marketing efforts by energy staff. This
amount closely approximates anticipated costs.
Recommended Motion:
It is recommended that the HRA authorize an agreement which
provides Furnace Efficiency Tune-up services to Richfield
residents.
Basis for Recommendation:
1. Authorization will provide energy conservation
services not available elsewhere.
2. An agreement has been developed which defines SRC and HRA
roles and responsibilities.
3. SRC is the only contractor with the ability and authorization
to provide FET service in Minnesota.
. 4. SRC has a long time working relationship and familiarity with
the Richfield HRA's Energy Program.
??-/
Alternative Recommendation:
Do not authorize execution of the agreement with SRC. However,
this would prevent these energy services from being offered to
Richfield residents.
Discussion/Decision Mode:
Agreement will be executed upon
be offered beginning October 1,
JDP:sae
•
authorization and services will
1989.
0
HRA RESOLUTION NO.
• THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
RESOLUTION RELATING TO AN AGREEMENT FOR PROVIDING FURNACE
EFFICIENCY TUNE-UP SERVICES.
WHEREAS, the Housing and Redevloment Auithority (HRA) has
been invited to participate in the Furnace Efficiency Tune-up
(FET) program with the Self Reliance Center (SRC); and
WHEREAS, utilizing the FET will assist approximately 300
households; and
WHEREAS, SRC will pay anticipated administrative expenses
of the HRA; and
WHEREAS, the SRC is a qualified contractor which has secured
the requisite resources and authority to provide the FET; and
WHEREAS, during the period of the agreement, October, 1989
through September, 1991, participating Richfield residents will
have an opportunity to save up to 12% of their annual natural gas
heating costs; and
WHEREAS, an agreement has been prepared between SRC and the
• HRA to define the scope of service, roles, and responsibilities.
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 an agreement with Self Reliance Center
to provide 300 Furnace Efficiency Tune-up services to Richfield
households.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 21st day of August,
1989.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
X?
HOUSING AND REDEVLOPMENT AUTHORITY
• HRA Letter No. 21
August 21, 1989 Agenda
Issue Statement:
Authorization to execute contract with South Hennepin Vocational
Technical School (Vo-Tech) to initiate a 1989-90 New Home
project.
Background:
Vo-Tech has requested that the HRA participate in a new
construction project for the school year 1989-90. The two
organizations have participated together in 12 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 third new construction
project wherein a structure will be built at the Vo-Tech campus,
moved to the site, and placed on a permanent foundation.
On August 29, 1988, the HRA authorized staff to acquire the
property at 7101 First Avenue South through the Voluntary
Acquisition Program. The property is a lot of record, having a
width of approximately 48.92 ft. Presently a 50 ft. minimum
width is required for development. A lot width variance was
granted September 1, 1988, to allow new housing development on
the site.
• Staff, in cooperation with Vo-Tech architectural drafting
faculty, has developed project plans to meet all set back
requirements, compliment the design of neighboring homes and
incorporate interior features desirable in today's market.
The new house would have approximately 1350 sq. ft. of finished
living area. It will feature on the first level; a living room,
kitchen, dining area, family room, full bath and two bedrooms. On
the lower level; a third finished bedroom, a 3/4 bath, and
unfinished space. In addition, an exterior deck adjacent to the
dining area and a parking pad with access from 71st Street will
be provided.
The amount of the Vo-Tech contract for the new construction
project is not to exceed $59,101. This is slightly higher than
the previous new construction project - $56,501. The increase is
the result of general cost adjustments including the use of a
poured concrete foundation. A poured foundation provides
increased strength and reduces potential for radon infiltration.
Contract requirements are further summarized with an attachment
to this letter.
The estimated project costs and funding source follows:
Activity Funding Source
• Acquisition, site: $39,750 CDBG
Demolition, site: $ 3,000 CDBG
0?-1'/
Vo-Tech Contract: $59,101 Proceeds of Sale
• Landscaping: $ 4,000 Proceeds of Sale
Legal (Sale): $ 600 Proceeds of Sale
Closing Costs: $ 2,500 Proceeds of Sale
$108,951
Private contractors will complete the electrical, plumbing and
heating portions of the work. 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 $30,500 and $38,000. Although the
completed value of the home has not yet been determined by
independent appraisal, staff estimates that the value should
approximate $85,000. The initial purchase price would be
approximatly $68,000. The $17,000 second lien would be used to
recover any difference. Proceeds of the sale are utilized to pay
the contract.
It is anticipated that a reduced interest rate mortgage would be
secured from the Minnesota Housing Finance Agency in the summer
of 1990, if available. FHA financing is an acceptable alternative
pending mortgage interest rates at the time.
• Recommended Motion:
It is recommended that the HRA adopt the attached resolution
authorizing the execution of the Vo-Tech contract in the amount
of $59,101, for the 1989-90 new construction project at 7101
First Avenue.
Basis for 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
and a lot width variance has been granted to allow
development.
5. Adjoining neighbors have had an opportunity to review the
project with staff and indicated support.
6. This project is virtually identical to previous Vo-Tech
projects.
0
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 1989-90 curriculum schedule.
Discussion/Decision Mode:
The 7101 First Avenue project will be started on campus in
September. Contract execution would occur immediately to avoid
delays in project development.
Resp tfully submitted,
James D. Prosser
City Manager
JDP:sae
0
HRA RESOLUTION NO.
The Housing and Redevelopment Authority In And
For the City of Richfield, Minnesota
Resolution Relating to Vo-Tech Agreement for
7101 First Avenue South
WHEREAS, The Housing and Redevelopment Authority (HRA)
acquired the real property at 7101 First Avenue South, legally
described as:
Lot 24, Block 1
Sheldon Blair's Wooddale Fourth Addition; and
WHEREAS, a project has been proposed in cooperation with
South Hennepin Vocational Technical Center (Vo-Tech); and
WHEREAS, the property at 7101 First Avenue South would be
developed with new construction; and
WHEREAS, the Agreement price for the new construction
project will not exceed $59,101; 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 $59,101 for the new construction project at 7101
First Avenue South.
Adopted by the Housing and Redevelopment Authority in and of
the City of Richfield, Minnesota this 21st day of August, 1989.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
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SUMMARY
CONTRACT REQUIREMENTS FOR 1989-90 VO-TECH PROJECT
- The construction of a permanent foundation at 7101 First
Avenue.
- The construction and relocation of a one-story structure
to 7101 First Avenue from the campus.
- The installation of heating, electrical and plumbing
systems.
- Interior finishings; floor coverings, millwork, painting
and staining.
- Completion by October 31, 1990.
- 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 Vo-Tech's responsibilities for
house moving that ensures all permits have been secured,
and that all Richfield City department are notified far
enough in advance of the move to minimize disruptions to
area residents.
- A provision specifying the Vo-Tech's responsibilities
concerning timely completion of the exterior facade, and
routine site maintenance during the construction period.
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 20
August 21, 1989 Agenda
• Issue Statement:
Award of contract for streetscape improvements and appurtenant
work in the ILN Redevelopment Project.
Background:
At the May, 1989, HRA meeting, staff was authorized to proceed
with the streetscape improvements in the ILN Redevlopment area.
Accordingly, members of the ILN business community were invited
to Emerson Church on June 21 to review plans for the streetscape.
Three business people attended.
The ILN Redevelopment and Tax Increment Financing Plan (Plan)
approved in the fall of 1985 contemplated 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 would improve the
image of the area. More specifically, it would 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 if the Larsen Partners
proposal proceeds.
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. However, it is important for the city to
assist in the upgrading and reinforcement of commercial areas
where redevelopment may be neither desired nor feasible. Thus,
no trees would be installed along the west side of Lyndale Avenue
between 76th and 77th Streets.
Requests for bids were made available in July. The bids were to
be based on the plan sheets developed by BRW. A set of these
plan sheets was made available to the HRA. In addition to the
planting of trees, the bid includes maintenance for two years.
Bids were opened August 4, at 9:00 a.m. Three bids were
received. The Tabulation Sheet is attached. The numbers were
reviewed for accuracy of computations. There were no errors.
• The low bidder is Lino Lakes Nursery.
Lino Lakes Nursery was also the low bidder for the landscaping
and screenwall project east of tyndale Avenue adjacent to 77th
Street. There are two items to note on this project: 1) It was
necessary for Lino Lakes Nursery to disassemble the screenwall.
The supplier misrepresented the moisture content of the timber to
Lino Lakes by indicating it was at least as dry as the
specification. In fact, it was too wet. 2) A sub-contractor to
Lino Lakes illegally wired the irrigation system controls. They
were an electrical hazard. This situation has been remedied by
Lino Lakes.
Funds for the purchase and installation of the landscaping are
provided from the ILN Redevelopmen Bond issue of 1988.
Recommended Motion:
Award a contract to Lino Lakes Nursery, Forest Lake, Minnesota
for the installation of planter curbs, trees and related work in
the amount of $37,785 which is the Base Bid plus Alternate 1.
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 tax increment district.
3. The improvements must be installed prior to the end of 1989.
4. If redevelopment proceeds south of 77th Street, the
intention is to resite the trees as part of the new
development.
5. The bid appears to be good and is almost half of the
estimated cost.
6. Funds are available.
Alternative Recommendation:
1. Delay awarding the bid.
2. Reject all the bids.
Discussion/Decision Mode:
Planting must be initiated and completed before the end of the
growing season.
ecWulyer
Ex cutive Director
JDP:sae
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10
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 19
August 21, 1989 Agenda
Issue Statement:
Authorization for staff to negotiate a preliminary agreement with
The Robert Larsen Partners, ILN Redevelopment Project.
Background:
The Robert Larsen Partners, Mpls., desires to be selected as the
redeveloper for the portion of the ILN west of Lyndale Avenue.
The first step in this process would be to authorize staff to
negotiate an exclusive rights agreement with The Robert Larsen
Partners. The agreement would then be presented to the HRA and
City Council for approval.
DEVELOPMENT CONCEPT
Mr. Kelly Doran, a principal partner in the proposed development,
will be at the HRA meeting on August 21 to present the concept.
Basically the concept includes the following elements:
Retail Portion
1. Construction of a 338,900 square foot retail center and
related surface parking located generally between
Lyndale and Emerson Avenues.
2. The developer would purchase the needed property
• directly from the private owners. (The HRA may be
requested to pursue eminent domain proceedings on
property for which the developer is unable to negotiate
a voluntary sale).
3. The developer would provide an opportunity to existing
on site retail businesses to occupy space in the new
center.
4. Construction would begin in late 1990 when approximately
75% of the space is leased. Completion would follow in
late 1991.
5. Tax increment financing in the amount of $7,000,000 for a
land write-down is being requested for the retail
development. The developer is proposing to pay off the
bonds with the tax increment from the retail center.
Office/Hotel Portion
6. Construction of two 15 story office structures and a
250 room eight story hotel on the "Cloverleaf site".
7. The developer has an option to purchase the property
from Midwest Federal.
8. No tax increment assistance is being requested for this
• part of the development.
. 9. The developer has been unwilling to put the office/hotel
phase in a timeframe. Construction would take place
when there is a market for the space. A relatively
short time period could pass before construction is
initiated or it could take several years.
10. Public improvements as envisioned in the 1985
Redevelopment Plan would be installed. These include the
widening of 77th Street and the installation of loop
streets, a screenwall and landscaping.
11. The estimated cost to purchase the right-of-way and
construct the improvements is $5.8 million.
12. Tax increment bonds would be sold to finance these
improvements. The developer is proposing to pay off the
bonds by the increment from the retail center.
Public Response
During July, The Robert Larsen Partners sponsored several
meetings at which they presented the concept (staff did not make
any presentations during these meetings). All neighborhood
meetings were held at Emerson Avenue Congregational Church. On
July 12 and 13, a total of approximately 100 persons attended the
meetings. This was in response to a mailer prepared and
distributed by the developer to 1200 addressees within and
• adjoining the ILN.
Two follow-up meetings were held on July 26 and 27. A total of
approximately 50 people attended these meetings. Most of them
had attended one of the initial meetings.
During these meetings, Mr. Doran presented The Robert Larsen
Partners credentials and the development concept. Approximately
20 to 30 minutes were used. The balance of the meeting,
approximately one hour, was a question and answer session. Mr.
Doran was forthright in his responses. The meetings ended with
wide spread applause from the audience.
DEVELOPMENT CONCEPT EVALUATION
Prior to the public meetings, staff was evaluating the concept.
The evaluation was undertaken with the developer and consultants.
Elements studied included the developer's experience, cash flow
pro formas, trip generation and adequacy of the proposed 1985
public improvements. Background evaluations of the developer
indicate that he has a good track record. The studies concluded
that the public improvements proposed in 1985 would be adequate
for the traffic. The pro formas appeared to be "tight" but
adequate with one exception. The tax increment was not
sufficient to amortize bonds for both the land write-down and the
public improvements. The developer revised the number of square
• feet proposed for the retail center to increase the increment.
Evaluation of this revision is pending. The analysis will be
completed as a component part of any future exclusive rights
agreement.
AGREEMENT
Considerable work remains to be completed. Analysis of the
concept must continue. At the same time details must be
formulated. The developer would like to begin property purchase
option discussions and discussions with prospective retail
tenants. All of these activities will consume considerable
resources. Further, the developer needs an "official" status to
undertake "good faith" discussions.
It is important to note that an exclusive rights agreement is a
significant step but it does not represent final approval of a
developer and concept. The agreement generally indicates that
the parties will deal exclusively with each other for a period of
time to resolve outstanding feasibility issues and work towards a
developer's agreement.
A period of time will be required to negotiate the agreement.
The objective would be to present an agreement to the HRA for
action in September or October. With HRA approval, the agreement
would also be presented to the City Council for action.
Recommended Motion:
Adopt the attached resolution authorizing staff to negotiate an
exclusive rights agreement with The Robert Larsen Partners.
Basis of Recommendation:
1. A preliminary analysis indicates the concept may be
feasible and fit within the ILN frame work.
2. The developer's track record is good.
3. The community response has been favorable.
4. The developer has indicated an official standing is necessary
to justify the commitment of additional resources to
establish final feasibility.
Alternative Recommendations:
1. Decline to authorize negotiations with The Robert Larsen
Partners and direct staff to seek other developers.
2. Delay authorization of negotiations.
Discussion/Decision Mode:
Final feasibility needs to be determined as soon as possible.
s ectf s bmitted,
mac„
Jam s D. Prosser
Ex utive Director
• JDP:sae
HRA RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RELATING TO NEGOTIATION OF AGREEMENT
INTERSTATE-LYNDALE-NICOLLET PROJECT AREA
WITH THE ROBERT LARSEN PARTNERS
WHEREAS, The City of Richfield, Minnesota and the Housing
and Redevelopment Authority in and for the City of Richfield
(HRA) have established the Interstate-Lyndale-Nicollet
Redevelopment Project Area (ILN); and
WHEREAS, the HRA is seeking to redevelop the ILN; and
WHEREAS, The Robert Larsen Partners have submitted a concept
plan (Concept) for redeveloping a portion of the ILN; and
WHEREAS, the HRA desires to determine the feasibility of the
Concept.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota that:
1. The Executive Director is authorized to negotiate an
exclusive negotiation agreement.
• 2. Upon completion of negotiations, the agreement shall be
presented to the HRA for action.
Adopted by the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota this 21st day of August, 1989.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary