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11-21-88 agenda~~ HOUSING AND REDEVERLOPMENT AIITHORITY HRA Letter No. 42 November 21, 1988 Agenda Issue Statement: Cancellation of regularly scheduled December 19, 1988 HRA meeting and scheduling of a special meeting for Monday, December 5, 1988 at 7:00 p.m. Background• The prospective purchaser for the property at 6514 Irving Avenue, will soon be qualified and the 6632 Fifth Avenue purchaser may soon qualify. The sale of these properties necessitates the holding of a public hearing. To keep the process moving, this public hearing should be held on December 5, 1988. If one of the applicants does not qualify by that time, the hearing could be continued until January. It appears that other agenda items can be handled at a December 5 meeting making it unnecessary to hold a meeting on December 19. It would be necessary for three of the five Commissioners to be present on December 5 to form a quorum. Recommended Motion: Schedule a special meeting for December 5, 1988 at 7:00 p.m. and cancel the December 19, 1988 meeting. Basis for Recommendation: 1) It is necessary to hold a public hearing on the sale of 6514 Irving and 6632 5th Avenue. 2) To facilitate the sale, a notice of public hearing on December 5 will be published November 23rd. 3) Other HRA business may also be conducted at this meeting rather than December 19. Alternative Recommendation: 1) Have two HRA meetings in December, the 5th and 19th. 2) Not schedule a meeting for December 5.- (There is adequate time to publish a hearing notice and schedule a hearing for December 19). Decision Mode• A meeting and•hearing on December 5 would facilitate the sale of the Irving property in a timely manner. Respe ully submitted, Ja D. Rrosser Executive Director JDP:sae ~.- HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 41 November 21, 1988 Agenda Issue Statement: Authorization for the Executive Director to execute financial and budgeting reports and documents, initiate housing assistance pay standards and enter into a fiscal agent agreement to make housing assistance payments for the independent voucher program. Background- On October•3, 1988, the HRA and City Council authorized the following: -An independent Voucher Rent Assistance Program serving approximately 65 households. -A cooperative Metro HRA/Richfield HRA Certificate Rent Assistance program serving approximately 315 households. Since that time, the Metro HRA has authorized an agreement to provide for phasing in more Section 8 funding allocations over time.. Staff has initiated the exchange procedures that should result in Richfield leases on Deceanber 1, 1988. No further HRA action concerning the Metro HRA relationship is required. Action on the following items require Board authorization: 1) Delegation of authority to the Richfield HRA Executive Director to execute housing assistance payment contracts, checks, financial reports, and budget documents. 2) Housing assistance payments disbursed according to a particular "unit mix" and "payment standard"; and 3) An agreement to utilize Metro HRA as the fiscal agent for processing housing assistance payments based on: a) scope of services b) modified Depository Agreement, and the need to c) advance funding to Metro HRA to cover float on payments. Further information on these items is included in the attached exhibit. Recommended Motion: Adopt the attached resolution which authorizes: 1) The Executive Director to prepare, approve, sign, and submit financial and budgetary forms 2) A unit mix and payment standard policy 3) A fiscal agent agreement with Metro HRA to prepare payments for issuance and perform other financial management responsibilities on behalf of the HRA ~~~~ Basis of Recommendation: 1. HUD requires the HRA to provide authority to the Executive Director to execute administrative documents 2. HUD requires the HRA to authorize unit mix and payment standard policies 3. Staff is processing tenants now for payments to occur at the end of November and requires the administrative resources for implementation. 4. Staff presently does not have the experienced resources to initiate payments by the end of the month. 5. Metro HRA has the resources to initiate payments which provides staff more time to develop an internal financial management system. 6. The Metro HRA fee appears reasonable and the HUD allocation provides revenues to pay Metro HRA for this service and reimburse the HRA for advances. Alternative Recommendation: Do not authorize the Executive Director to proceed. However, the HUD allocation provided to Richfield would not be disbursed. The Richfield HRA could develop the internal financial management now. However, payments would likely be delayed to landlords and staff time would have to be devoted to the accounting process rather than the exchange process. If a decision on the unit mix and pay standard were deferred, benefits that tenants are eligible for would be withheld and some participating tenants might be without assistance. Decision Mode: Metro HRA is considering the fiscal relationship simultaneously so that the service could be implemented immediately. HUD will be provided with the results of the Richfield HRA actions. Respect lly submitted, Jame Prosser Executive Director JDP:sae ~~~, HRA RESOLUTION N0. RESOLUTION RELATING TO THE SECTION 8 VOUCHER PROGRAM; DELEGATION OF AUTHORITY, PAYMENT STANDARDS, FISCAL AGENT AGREEMENT WHEREAS, the HRA is initiating an independent Section 8 Voucher Rent Assistance Program; and WHEREAS, the U. S. Department of Housing and Urban Development requires the HRA to designate the person authorized to execute financial and budget related documents; and WHEREAS, the HRA must also determine a unit mix and standard policy for housing assistance payments and these have been devised for 1988 and 1989; and WHEREAS, to initiate the voucher program, the HRA requires help in issuing assistance and administrative payments and preparing financial and budget related documents; and WHEREAS, the Metropolitan Council HRA has the capability to issue payments and prepare documents as a fiscal agent on behalf of the HRA. NOW, THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, as follows: 1. The Executive Director is authorized to execute financial and budgetary reports for and on behalf of the Richfield HRA and that any report so executed is the lawful action of the HRA. 2. A unit mix and payment standard policy has been devised, as discussed in Letter No. of the HRA Board meeting of November 21, 1988. 3. The Executive Director may initiate a fiscal agent agreement with the Metropolitan Council HRA to process housing assistance and administrative payments and prepare program related documents for a period of less than one year. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, this 21st day of November, 1988. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary #~3 EXHIBIT Delegation of Authority HUD requires, by board resolution, the delegation the Executive Director to execute required program payments, financial reports and budgets. Examples -Contracts with landlords to -Housing assistance payment -Annual budget estimates -Budget adjustments, if any -The quarterly requisitions housing assistance payments consistent with the budget. -The year end reconciliation reimbursement for expenses. of authority to contracts, include: make housing assistance payments checks which advance monies from HUD for and administrative fees, of program expenses and In a monetary sense, the authority provided by the Board allows the Executive Director to expend and be .reimbursed for approximately $254,800 in housing assistance payments and $25x500 for program administration annually. More detailed budget information will be forwarded to the HRA by memorandum once HUD has completed the review of these documents. Unit Mix and Pay Standards HUD has provided 53 units (41-two bedroom and 12 three bedroom) of voucher assistance. To ensure that sufficient resources are available to match and exchange approximately 65 Metro HRA vouchers, a revised unit mix is required. A mix of 20 one bedroom, 41 two bedroom, and 4 three bedroom units provides the match and expends approximately the same amount of housing payment assistance without exceeding the HUD allocation. The voucher program uses the term "pay standard" which HUD uses as a basis for program allocations. To facilitate a voucher for voucher match during the exchange period and ensure tenants will not be impacted by a change in benefits; staff has devised a pay standard for the rest of 1988 and 1989. The standard is consistent with HUD standards. Tenant payment and HRA payments to landlords are computed using the established standard. The 1989 standard. is higher to facilitate a Metro HRA certificate for Richfield voucher match and exchange that is contemplated in 1989. This increase also would not exceed the HUD allocation. Monthly per unit Pay Standards 1988 Standard 1989 Standard 1 Bedroom $424 $445 2 Bedroom $516 $52.8 3 Bedroom $645 $660 The HRA is required to review and adopt these standards so that the Executive Director can facilitate the payment of approximately $20,500 in housing assistance each month. The first payment would occur at the end of November for Richfield ~yy leases starting December 1. Since budget and requisition information has only recently been prepared for HUD, a fund advance from the HRA is required. When HUD processing is completed the advance will be covered by a payment from HUD. Fiscal Agent Agreement Staff has evaluated the most efficient and cost effective alternatives for initiating payments in November. There are two choices: 1) internal processing, or 2) identify a fiscal agent that can provide the service., with the HRA advancing funds until HUD requisitions are processed. Staff requires additional time and resources to initiate internal processing. However, on a short term basis anticipated to be less than one year, Metro HRA has- offered to provide these services without any gap in service to tenants and landlords. Starting as of November, 1988, Metro HRA would, in cooperation with HRD staff: -prepare all budget and requisition forms -issue monthly housing assistance payments -hold and invest program funds on Richfield's behalf until disbursement. (HRA funds and HUD advances would be invested according to Metro HRA investment policies). -prepare and provide all reports required by HUD and other internal reports that assist in monitoring the program. The Richfield HRA would be required to: -provide necessary information to compute payments -pay 20 percent ($425 per month, $5,100 per year) of the available administrative fee for the fiscal agent service -sign all checks -execute budget and requisition documents and forward to HUD -deposit approximately 105, $21,525, in advance for the Metro HRA to draw payments. The HRA would be reimbursed by HUD for these payments. The agreement could be terminated by 90 day notice from either party. To initiate the fiscal agent relationship, staff would set up direct deposit accounts between HUD and Metro HRA on behalf of Richfield with the Executive Director executing required documents. Metro HRA would use the advances provided by the HRA to ensure end of month payment until requisitioned HUD funds are deposited. ~~ HOIISING AND REDEVELOPMENT AIITHORITY HRA Letter No. 40 November 21, 1988 Agenda Issue Statement: Authorization to execute agreements to initiate a 1989-90 Vo-Tech Rehabilitation Project. Background• Vo-Tech has requested that the HRA participate in a rehabilitation project for the school year 1989/90. The two organizations have participated together in 11 projects since 1977. This letter requests HRA authorization to execute: 1. A Purchase Agreement with the City to acquire a structure at 6315 Portland Avenue for remodeling. 2. A Construction Agreement with the Vo-Tech to relocate the structure to 7000 Oakland Avenue and to remodel it. The property at 7000 Oakland (also known as 619 E. 70th Street) was acquired by the HRA in October, 1987 and has been identified as a site for a rehabilitation project. Project activity would begin in Spring 1989. Action to initiate the project at this time is necessary to evidence a commitment to the City to utilize the structure at 6315 Portland Avenue. Community Development staff have negotiated the purchase of the structure from the City with Community Services staff. The settlement is consistent with informal bids received from house movers: $1,000 for the structure $1,100 for foundation removal and site clearance by a City crew $2.,100 Total CDBG revenues are available and are included in the budget. The agreement requires the relocation of the structure by May 1, 1989, subject to weather and road restrictions. Vo-Tech would provide approximately 2,000 square feet of finished living area, four bedrooms, two full bathrooms, a living room, separate dining area, a new kitchen, a full unfinished basement, exterior deck, a blacktop driveway and parking pad. The rehabilitation contract requires Vo-Tech to: -Relocate the identified structure from 6315 Portland to 7000 Oakland Avenue. -Construct a dormer addition which expands the living room area slightly and improves architectural balance of the structure ~~- ~ -Install new heating, electrical, and plumbing systems -Install new sheetrock walls and ceilings -Provide all new floor coverings, new interior trim in renovated rooms, new doors and windows, new roof covering and new siding -Complete in Spring 1990 Neighbors adjacent to 7000 Oakland have reviewed the plans with HRD staff. They prefer a vacant lot, but understand that development will proceed. The amount of the Vo-Tech contract for the new construction project is not to exceed $63,121. The estimated project costs, and funding sources follow: Activity Funding Source Acquisition, house 2,100 CDBG Acquisition, site $41,920 CDBG Demolition, site 3,320 CDBG (7000 Oakland) Vo-Tech Contract: 63,121 Proceeds of Sale Landscaping 3,000 Proceeds of Sale Curb Cuts 1,200 CDBG Legal (sale) 600 Proceeds of Sale Closing Costs 2,800 Proceeds of Sale Total Project Cost $118,061 The major elements of the contract include: -Supervision of labor and insurance coverage 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. (This warranty is required by state law). -A provision specifying Vo-Tech's responsibilities for house moving that ensures all permits have been secured, and that all Richfield City departments 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. To improve mover cooperation, a penalty fee by Vo-Tech against the mover is being discussed. In addition, Vo-Tech is selecting their contractor from a more responsible, albeit higher cost group of movers. ~~ Licensed contractors 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 accompany this letter. The home will be sold to a first time homebuying family of four to six members having a moderate income (as determined by Section 8 income limits) of between $25,000 and $36,000. Although the completed value of the home has not yet been determined by independent appraisal, staff estimates that the value should approximate $90,000. The initial purchase price would more closely approximate $70,000 and a second lien would be used to recover any difference. The proceeds of 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 late 1989, if available. .FHA financing is an acceptable alternative pending mortgage interest rates at the time. Recommended Motion: Adopt the resolution authorizing: 1. The execution of an agreement for acquisition of the structure at 6315 Portland Avenue from the City for a total cost of $2,100. 2. The execution of the Vo-Tech contract in the amount of $63,121 for the 1989-90 remodeling project at 7000 Oakland Avenue, pending City Council authorization to sell the structure. Basis of Recommendation: 1. The HRA has acquired a site at 7000 Oakland Avenue (619 E. 70th Street). 2. The HRA is in need of a structure to initiate the 1989-90 Vo-Tech remodeling project. 3. A city owned house at 6315 Portland Avenue has been identified for this purpose and must be cleared to accommodate park expansion. 4. A payment of $2,100 has been determined as appropriate compensation for the structure. 5. Plans for remodeling have been developed and reviewed by staff to meet program needs of the HRA. Alternative Recommendation: Not authorize execution of the Vo-Tech contract and purchase agreement. This would delay site development which could prohibit the Vo-Tech from including the project in their 1989-90 curriculum schedule. Also, park development activities scheduled for Spring, 1989 could be delayed. ~~ "~ ? Decision Mode: A decision is sought at the November the City Council time to consider the spring move is contemplated. JDP:sae 21, 1988 meeting to allow sale of the structure. A Respectfully submitted James Prosser City Manager ~~ ~. HRA RESOLUTION N0. RESOLUTION AUTHORIZING CONTRACT KITH VO-TECH AND AN AGREEMENT TO AC@UIRE STRUCTURE FROM CITY WHEREAS, the Housing and Redevelopment Authority (HRA) has acquired real property at 7000 Oakland Avenue South (also known as 619 E. 70th Street) legally described as: That part of the North 109.6 feet of the Northwest 1/4, of the Northwest 1/4, of the Northwest 1/4, of the Northwest 1/4, lying East of the West 180 feet thereof, Section 35, Township 28, Range 24, except the North 33 feet thereof. WHEREAS, a project has been proposed in cooperation with South Hennepin Vocational Technical Center (Vo-Tech); and NHEREAS, a structure at 6315 Portland Avenue South has been identified for relocation to 7000 Oakland Avenue South and rehabilitation to become a 4 bedroom, two bathroom home; and NHEREAS, the purchase price for the structure at 6315 Portland Avenue South is $2,100; and NHEREAS, the contract price for the rehabilitation of the project at 7000 Oakland will not exceed $63,121; and NHEREAS, following completion of the rehabilitation work the property would be sold to a first time home buying, moderate income family. NON, 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: 1. Enter into an agreement with the city to acquire the structure at 6315 Portland Avenue South for $2,100. 2. Enter into a construction contract with the Vo-Tech for an amount not to exceed $63,121 for the housing rehabilitation project to be completed at 7000 Oakland Avenue South pending City Council authorization to sell the structure. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of November, 1988. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary ~~ ^ O ,n W Z Q Q J Q O 0 0 ~` i ~. I J,. ~ ~ '~ ,~, .~~i' -~ :• •.r~.~ r ~' Vic' '`.,.r ~., p ,~'~ i -~ ~~ ~ ~~ i~' .. y. , I i~ ~~ 8~© ;~~ ~ ~~ ~, ~ 'I 1L` ~,~'. ~I;~~ .~f~ ~ ~ ~, r ; - ~, y ~~+.~.~ ?---~-ro ..; ~ ~~Q•F i ,I~;' __~_ t~~ ~~ j; r r ~: ~fl ~i 11 Q W W Z ~~ Z O Q w J W H LL J O Q W J W Q _ ~_ ® F- ~ W J ® W ~_ ~~' :. , s V N~, t i ~y ~- J ~"~ _~ ~~~ • //O~ I J' ~~ i I J~ W, »1~ ~I ^r.l'~ A, p~ °..~ ~ / { Z~I ~~ ~ ~, i ~~ ~ ~°~. HOIISING AND REDEVELOPMENT AIITHORITY HRA Letter No. 39 November 21, 1988 Agenda Issue Statement: Adoption of resolution requesting County Board conveyance of tax- forfeited land at 6941-45 Penn Avenue (70th Street and Penn Avenue Redevelopment Project). Background: On October 5, 1988, the HRA authorized the sale of tax-forfeited land located at 6941-45 Penn Avenue to Dr. Donald A. Johnson. In accordance with the Hennepin County Board Resolution relating to the sale of tax-forfeited land, the HRA is required to adopt a resolution requesting the County to sell this property to the HRA. The presentation of this resolution was awaiting the results of the environmental audit. The audit report was recently received. The soils are not contaminated and are suitable for development. This will be the final action of the HRA in the redevelopment process for the project. The terms of the sale have been previously discussed by the HRA and Dr. Johnson. Dr. ,.Johnson has agreed to the sale terms. Under separate agreement Dr. Johnson will reimburse the City for the purchase cost. These terms were negotiated by the City and Dr. Johnson. Recommended Motion: Adopt the resolution which requests the Hennepin County Board of Commissioners to sell certain tax-forfeited land to the HRA and requests the City Council to adopt a similar resolution. Basis of Recommendation: Requirement by Hennepin County Board of Commissioners, Resolution No. 82-8-612 (August 10, 1982). Alternative Recommendation: 1. Delay adoption of the resolution. 2. Refuse to adopt the resolution. Decision Mode: Approval of the resolution will conveyance of the tax-forfeited permit the timely processing of property. Respec fully submitted, Ja s D. Prosser Executive Director JDP:sae ~~~ RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION REQUESTING THE HENNEPIN COUNTY BOARD OF COMMISSIONERS TO SELL CERTAIN TAX FORFEITED LAND TO THE RICHFIELD HRA WHEREAS, any tax forfeited lands may be sold by the county board to any organized or incorporated governmental subdivision of the state for any public purpose for which such subdivision is authorized to acquire property or may be released from the trust in favor of the taxing districts upon application of any state agency for any authorized use at not less than their value as determined by the county board, pursuant to Minn. Stat. Sec. 282.01; and WHEREAS, the Hennepin County Board (County Board), by Resolution No. 82-8-612, dated August 10, 1982, (County Board Resolution), adopted a general policy to encourage the return of tax forfeited lands within the county to private ownership and the tax rolls; and WHEREAS, pursuant to the County Board Resolution, the acquisition of tax forfeited land by a governmental subdivision (except Housing and Redevelopment Authorities and other governmental subdivisions of the state expressly authorized by the law to resell, lease or transfer property) for resale shall not be approved by the Board; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (Richfield HRA) is required to apply to the governing body of the city to request County Board conveyance of tax forfeited land; and WHEREAS, the HRA is authorized to resell property pursuant to Minn. Stat. Sec. 469.001 to 469.047, inclusive, as amended; and WHEREAS, pursuant to Minn. Stat. Sec. 282.01, sud. 1, a sale, lease, transfer or other conveyance of such [tax forfeited] lands by a housing and redevelopment authority as authorized by Minn. Stat. Sec. 469.001 to 469.047, inclusive, as amended, shall not be an abandonment of such use and such lands shall not be reconveyed to the state nor shall they revert to the state; and WHEREAS, the real property located at 6941-45 Penn Avenue South (PID No. 28-028-24-33-0159), is land forfeited to the state for nonpayment of 1980 taxes on July 17, 1984, and is legally described as: Lot 13, Block 10, Tingdale Brothers Lincoln Hills Second Addition, Hennepin County, according to the recorded plat thereof; and '~~ ~_ Lot 10, Block 10, Woodlake Highlands Addition, Hennepin County, according to the recorded plat thereof. NOW, THEREFORE, BE IT RESOLVED by the Richfield HRA as follows: 1. That the County Board is requested to convey the_tax forfeited property for an amount equal to the appraised value, 3% assurance fee, State deed tax, State deed fee, and Filing Fee, pursuant to Minn. Stat. Sec. 282.01,. subd. 1 and 3. 2. That the Executive Director of the Richfield HRA is authorized and directed to request the Richfield City Council to request the County Board to convey certain tax forfeited land. 3. That the land is being acquired for the public purpose of remedying conditions of under-utilized land and physical blight which the private market has not been willing and/or able to accomplish independently. 4. The private development will be part of the Seventieth Street and Penn Avenue Redevelopment Project, adopted by the HRA on October 17, 1988 and anticipated for approval by the City Council on November 28, 1988, pursuant to Minn. Stat. Sec. 469,001 to 469.047, inclusive, as amended. The land will be sold and developed in accordance with a development contract by the HRA and a private developer. Construction of the improvements on the land are anticipated to commence and be completed during 1989. 5. That the property is currently vacant, approximates 14,952 square feet in size, and is zoned MR-2, Multiple Residence. Rezoning of the property to C-1, Neighborhood Business District, will become effective 30 days after publication of the rezoning ordinance in a newspaper of general circulation for the area. 6. That the property is anticipated to be returned to the tax rolls by no later than taxes payable 1991. 7. That the detailed description for the undertaking of the Seventieth Street and Penn Avenue Redevelopment Project is described in the respective Redevelopment Plan. ~~~ 1988. Adopted by the Richfield HRA this 14th day of November, Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary ~~ CITY OF RICHFIELD, MINNESOTA HRA Letter No. 38 Agenda, October 17, 1988 Issue Statement: Authorization to execute a Certificate of Completion fo.r the "Sheridan Court" assisted housing project. Background- An agreement, authorized by the HRA in April, 1987 provided for the development of 30 units of housing for lower income developmentally disabled adults. Fraser Independent Living Project, Inc. (Fraser) is the non-profit sponsor and project developer. In accordance with the agreement, Fraser has requested the issuance of a Certificate of Completion. Staff of appropriate departments and divisions were requested to determine if the development was completed in accordance with the agreement. The response was affirmative. Recommended Motion: Adopt the attached resolution Certificate of Completion. authorizing the issuance of a Alternative Recommendation: Do not adopt the resolution. Decision Mode- The developer-has requested the Certificate and staff has indicated the development has been completed according to the approved plans. Respectfu y submitted, James Prosser Execu lve Director JDP:sae RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY (HRA) IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION RELATING TO AUTHORIZING CERTIFICATE OF COMPLETION FOR THE ERASER ASSISTED HOUSING DEVELOPMENT WHEREAS, the HRA authorized a "Housing Project Agreement" (Agreement) with the Louise Whitbeck Fraser Independent Living Project (Fraser) on April 20, 1987; and ___ -_. tiVHEREAS, the "Sheridan Court" (Project) was initiated; and WHEREAS, the HRA provided $100,000 to perform appraisal, relocation, and acquisition activities related to the Project; and WHEREAS, the agreement required Fraser to acquire property, secure permanent financing for the Project, secure housing assistance for residents of the Project, and complete the Project in accordance with development plans; and WHEREAS, the Agreement required the HRA to monitor the progress of the Project and furnish Fraser with a Certificate of Completion upon completion of construction and issuance of a Certificate of Occupancy by the Richfield Building Official; and WHEREAS, the Certificate of Occupancy has been issued; and WHEREAS, the Agreement establishes the form for the Certificate of Completion. NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota: That the Chairman and the Executive Director are directed to execute the Certificate of Completion and deliver same to Fraser. Passed by the Housing and Redevelopment Authority of Richfield this 17th day of October, 1988. ATTEST: Thomas E. Harms, Chairperson Joan Helmberger, Secretary ~~~ CERTIFICATE OF COMPLETION The undersigned hereby certifies that L.W. Fraser Independent Living Project, Inc. has fully and completely complied with its obligation under Article IV of that document entitled "Housing Project Agreement," dated the day of 1987, between the Housing and Redevelopment Authority in and for the City of Richfield (HRA) and L.W. Fraser Independent Living Project, Inc. (Provider) with respect to construction of a 30-unit residential development for persons of low or moderate income in accordance with the approved plans and is released and forever discharged from its obligations to construct such development under the above-referenced Article. DATED: October 17, 1988 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chairperson By Executive Director STATE OF MINNESOTA COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 1988, by Thomas E. Harms and James D. Prosser, the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a municipal corporation under the laws of the state of Minnesota, on behalf of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota Notary Public ~~-- HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 37 October 17, 1988 Issue Statement: Hearing on sale of property, 70th Street and Penn Avenue Redevelopment Project. Background: During August and September, the HRA and Planning Commission have taken actions related to the redevelopment of the vacant property at 6941-45 Penn Avenue. Under state statute, it is necessary for the HRA to hold a public hearing prior to authorize the sale of property. The notice of public hearing appeared in the Sun-Current, Wednesday, October 5, 1988. The contract with Dr. Johnson stipulates that he will pay to the HRA .all costs related to the sale process. This includes the anticipated sale price of the land of $24,000 plus closing costs, and all other costs related to the sale which is estimated, in the aggregate, to not exceed $34,839. At an upcoming meeting, the HRA will be asked to adopt a resolution requesting the County to sell this property to the HRA. Recommended Motion: Hold the public hearing and adopt the resolution which authorizes the sale of 6941-45 Penn Avenue to Dr. Johnson. Basis of Recommendation: 1. The HRA approved a Contract for Private Development with Dr. Johnson in August. 2. In September the redevelopment plan was referred to the Planning Commission for their opinion. 3. The Planning Commission found the redevelopment plan to be in conformance with the city's Comprehensive Plan. Alternative Recommendation: 1. Delay adoption of the resolution. 2. Refuse to adopt the resolution. Decision Mode• Action by the•HRA will permit timely processing of this redevelopment project. Respectfully submitted, Jam D. Prosser Exe tive Director RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION RELATING. TO THE SALE OF CERTAIN LAND LOCATED WITHIN THE 70TH STREET AND PENN AVENUE REDEVELOPMENT PROJECT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) has on the day herewith adopted a redevelopment plan (Redevelopment Plan) for the 70th __ Street and Penn Avenue Redevelopment Project (Redevelopment Project); and WHEREAS, the Redevelopment Plan designates certain lands within the Redevelopment Project for acquisition and redevelopment including lands described as follows: Parcel Identification Address: .6941-45 Penn Avenue PINS # 28-028-24-33-0159 Legal Description Lot 13, Block 10, Tingdale Brothers Lincoln Hills Second Addition, Hennepin County, according to the recorded plat thereof; and Lot 10, Block 10, Woodlake Highlands Addition, Hennepin County, according to the recorded plat thereof. WHEREAS, Minn. Stat., Sec 462.356 require the Planning Commission's finding as to the conformance of the proposed sale with the Comprehensive Plan; and WHEREAS, Donald A. Johnson (Developer) and the HRA entered into a Contract for Private Development (Contract) on September 6, 1988; and WHEREAS, the Developer has offered and proposed to purchase the subject property at a cost of approximately Thirty Four Thousand Eight Hundred Thirty-Nine Dollars ($34,839) and for additional terms as contained in the Contract; and WHEREAS, pursuant to due notice thereof, a public hearing was held on the proposed sale of the subject property to the Developer on the date hereof, and all interested persons had an opportunity to be heard. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, as follows: .l. That the Finding of the Planning Commission regarding the sale of this property is acknowledged. ~,~ 2. The sale of the subject property is consistent with and necessary for the redevelopment provided for in the Redevelopment Plan. 3. The use value of the subject property within the meaning of Minn. Stat. Sec. 469.032, is not to exceed Thirty Four Thousand Eight Hundred Thirty-Nine Dollars. 4. The sale of the property is consistent with and necessary for the Developer to implement the Contract. 5. The HRA Chairman and Executive Director are authorized and directed to execute agreements to effectuate the sale to the Developer for and on behalf of the HRA, which provide for the sale of the subject property at a price not to exceed Thirty Four Thousand Eight Hundred Thirty-Nine Dollars. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17th day. of October, 1988. ATTEST: Thomas E. Harms, Chairperson Joan Helmberger, Secretary ~i HOUSING AND HRA Agenda Issue Statement• REDEVELOPMENT AUTHORITY Letter No. 36 October 17, 1988 Approval of 70th Street & Penn Avenue Redevelopment Plan. Background: The HRA authorized staff to transmit the redevelopment plan to the Planning commission at their September 27, 1988 meeting. It would now be appropriate for the HRA to approve the redevelopment plan. Following approval, the City Council would be asked to schedule a public hearing and consider approving the plan. Recommended Motion: Adopt the resolution which approves the attached redevelopment plan and requests the City Council to take appropriate steps to approve the plan. Basis of Recommendation: 1. Contract For Private Development with Doctor Johnson approved by HRA August 29, 1988. 2. Redevelopment Plan referred by HRA to the Planning Commission on September 27, 1988. 3. On September 27, 1988 the Planning Commission found the proposed redevelopment plan to be in conformance with the City's Comprehensive Plan in Resolution No. 68. Alternative Recommendation: 1. Delay adoption of the resolution. 2. Refuse to adopt the resolution. Decision Mode: Approval of the resolution will permit the timely processing of Dr. Johnson's redevelopment proposal. Respec ully submitted, Ja D. Prosser E e utive Director RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION APPROVING THE UNDERTAKING OF THE 70TH STREET AND PENN AVENUE REDEVELOPMENT PROJECT AND RESPECTIVE REDEVELOPMENT PLAN; REQUESTING THE RICHFIELD CITY COUNCIL TO CALL FOR PUBLIC HEARING THEREON; AND RECOMMENDING APPROVAL OF THE REDEVELOPMENT PLAN TO THE CITY COUNCIL ._ ___ WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) proposes to undertake the 70th Street and Penn Avenue Redevelopment Project (Redevelopment Project) to be located within the City of Richfield, Minnesota (City), pursuant to Minn. Stat., Sec. 469.001 to 469.047, inclusive, as amended; and WHEREAS, the HRA on its own Redevelopment Plan (Redevelopment Project in accordance with Minn. has prepared a the Redevelopment 469.027. WHEREAS, prior to the HRA's determination to undertake a Redevelopment Project, the HRA is required to apply to the governing body of the city in which the project is located for approval of which application shall be accompanied by a Redevelopment Plan, statement of method proposed for financing the project, and written opinion of the planning agency, pursuant to Minn. Stat., Sec. 469.028, subd. 1; and WHEREAS, the Redevelopment Plan has been referred to the Richfield Planning Commission which by action taken on September 27, 1988 has commented on the Redevelopment Plan and found it to conform to and not be in conflict with the general plan for the development of the City as a whole; and WHEREAS, the City Council of required to hold a public hearing in a newspaper of general circula least once not less than ten days the date of the hearing, pursuant subd. 1, initiative Plan) for Stat., Sec. the City of Richfield is thereon after published notice tion in the municipality at nor more than 30 days prior to to Minn. Stat., Sec. 469.028, NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the HRA as follows: 1. The HRA finds and determines that the objectives set forth in Minn. Stat., Sec. 469.001 to 469.027, inclusive as amended, and the HRA's objectives for the redevelopment of the Redevelopment Project area will be accomplished by the adoption and implementation of the Redevelopment Plan. ~/. ~. 2. The Redevelopment Plan is hereby approved and adopted. 3. The HRA requests the City Council to call for a public hearing to consider the approval of the Redevelopment Plan for the Redevelopment Project and to cause notice of said public hearing to be given as required by law. 4. The Executive Director is authorized and directed to submit a certified copy of this resolution and the Redevelopment Plan to the City Council for consideration and to inform the City Council that the HRA recommends adoption thereof. 5. The HRA pledges its cooperation to the City in carrying out the Redevelopment Plan. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield this 17th day of October, 1988. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary r v The Housing and Redevelopment Authority in and for The City of Richfield Redevelopment Plan for the 70th Street and Penn Avenue Redevelopment Project (Minnesota Statutes, Sections 469.001 to 469.047, inclusive) As Adopted by the HRA on October 17, 1988 Prepared by: The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 i T MAYOR .Steven J. Quam CITY COUNCIL Martin Kirsch Edwina Garcia Ivan Ludeman Michael Sandahl HOUSING AND REDEVELOPMENT AUTHORITY Thomas Harms, Chair Joan Helmberger Donald Hassenstab Vern Luettinger Ivan Ludeman PLANNING COMMISSION Connie Murray, Chair Nancy Edwardson Barbara Kritzman Robert Jensen Charles Kauth Russell Kennedy Leon.Lunas Robert Nelson Thomas Ohnesorge CITY MANAGER/EXECUTIVE DIRECTOR James Prosser --~ / -d TABLE OF CONTENTS Redevelopment Plan for the 70th Street and Penn Avenue Redevelopment Project PAGE A. Statement of Public Purpose.. ....................... 1 B. Statutory Authority ........... ................... 1 C. Description of Redevelopment Project Area .......... 1 D. Statement of Goals and Objectives ...... .......... 2 E. Development Activities and Agreements .............. 2 F. Proposed Land Use .................................. 4 G. Acquisition, Relocation and Rehabilitation Activities ......................................... 4 H. Environmental Considerations ....................... 4 I. Redevelopment Plan Modification ............. ..... 5 J. Administration of Redevelopment Project ............ 5 Appendix A: Budget 6 i ~~ ~ ~ Redevelopment Plan for The 70th Street and Penn Avenue Redevelopment Project A. Statement of Public Purpose It is found that the public interest requires neighborhood replanning to redevelop and remedy conditions of underutitlized land; that in order to foster and facilitate the growth of the City's commercial base, it is necessary to encourage private enterprise to engage in the redevelopment of land which is to be constructed in accordance with a comprehensive community plan. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), and the City Council of the City of Richfield., Minnesota (City), have determined that public intervention is necessary in the 70th Street and Penn Avenue Redevelopment Area for the conveyance of tax-forfeited land to remedy conditions of under-utilized land and physical-blight which the private market has not been willing and/or able to accomplish independently. B. Statutory Authority The statutory authority for the undertaking of a redevelopment project in the 70th Street and Penn Avenue Area and the redevelopment activities proposed in the redevelopment plan relating thereto is conferred upon the HRA pursuant to and in accordance with the Economic Development Act, Minn.Stat., Sec. 469.001 to 469.047, inclusive, as amended. Specifically, Minn. Stat., Sec. 469..027 establishes the requirements for redevelopment plan preparation by an HRA prior to undertaking property acquisition and redevelopment. C. Description of the Redevelopment Project Area In order to guide the development and redevelopment in the 70th Street and Penn Avenue Area, the HRA has created this redevelopment plan. Pursuant to Minn. Stat., Sec. 469.002, sub. 12, the proposed project meets the definition of a redevelopment project, .defined in Minn. Stat., Sec. 469.002, subdivision 14, and will henceforth, be referred to as the redevelopment project. The redevelopment project area boundary encompasses all that real property within an area described as follows: The parcel boundaries for Lot 13, Block 10, Tingdale Brothers Lincoln Hills Second Addition and Lot 10, Block 10, Woodlake Highlands Addition, except the coterminous boundary line which separates the two lots. -1- ~/~ D. Statement of Goals and Objectives The HRA determines that it is necessary, desirable, and the public interest to undertake a redevelopment project in City pursuant to the provisions of Minn. Stat., Chapter 469. HRA determines that the funding of the necessary activities. improvements in the redevelopment project area shall be accomplished through. the use of a private lending source by developer .and application by a governmental subdivision for conveyance of tax-forfeited lands. (Refer to Budget.) in the The and the The following goals and objectives are intended to serve as a basis for guiding the development/redevelopment of the proposed redevelopment project area: 1. To acquire land or space which is vacant, unused or underused. 2. Utilize the vacant, tax-forfeited land more intensively. 3. Facilitate the redevelopment of land for a contemporary. professional office building. 4. To achieve a high level of design and landscaping quality to enhance the physical environments. 5. To create effective transitional planning between residential and non-residential uses. 6. Eliminate an impaired condition which could detract from the health of the community. 7. To improve the property tax base of the City and other taxing jurisdictions. 8. To provide increased employment opportunities and improve the income tax base of the state. 9. To provide maximum opportunity, consistent with the needs of the city and other local jurisdictions, for development by private enterprise. E. Development Activities and Agreements .The objectives of this Redevelopment Plan will be accomplished pursuant to the authority granted to the HRA by the Economic Development Act, Minn. Stat., Sec. 469.001, et seg. Redevelopment within the project area must be financially feasible, marketable and compatible with long range development plans of the City and HRA. -2- 1. Description of Anticipated Private Development Activities The proposal for redevelopment of the project area calls for the construction of a new office building and related surface parking to be situated on vacant, tax-forfeited land which has been underutilized for a number of years. Specifically, the Housing and Redevelopment Authority would acquire the tax-forfeited land from the County and convey the land to a private developer. The anticipated construction will be initiated and completed during 1989. The office building will be utilized for non-retail office purposes, approximating 3,800 square feet. Landscaping will be utilized to increase the aesthetic appeal of the office building and protect the neighboring residential area. Any and all proposals by the developer will be reviewed by the HRA to determine conformance with the redevelopment plan and applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan; construction, mechanical, and electrical system drawings; landscaping plan; grading and storm drainage plan; signage system plan; and any other drawings or narrative deemed necessary by the HRA to demonstrate the conformance of the development with the redevelopment plan. Land acquired by the HRA will be subject to a contract for sale upon disposition to the developer. The general requirements to be imposed upon the developer by the contract for sale are: 1. To redevelop the land purchased in accordance with this redevelopment plan; 2. To commence and complete the building of improvements on the land .within specified periods of time; 3. Not to resell the land before improvements are made without the prior consent of the HRA; and 4. Not to discriminate on the basis of race, color, sex, creed, or national origin on the sale, lease, transfer, or occupancy of the land purchased from the HRA. 2. Description of Anticipated Public Development Activities The proposed public development activities in the redevelopment project area would be undertaken by the HRA and City in order to support the private development activities and facilitate redevelopment of the area in a manner suitable to overall development plans. These activities include acquisition of the tax-forfeited land by the HRA from the County and conveyance to the developer contingent upon mutual agreements set forth in the Contract for Redevelopment. -3- F--/ - ~ F. Proposed Land Use An ordinance providing for the rezoning of the proposed redevelopment project area to C-1, ;Neighborhood Business District will become effective 30 days after publication of the rezoning ordinance in a newspaper of general circulation for the area. G. Acquisition, Relocation and Rehabilitation Activities 1. Acquisition The HRA proposes to acquire the following tax-forfeited property in order to convey the land to the developer for redevelopment according to objectives set forth in this plan: Parcel Identification Address: 6941-45 Penn Avenue PINS~~ 28-028-24-33-0159 Legal Description Lot 13, Block l0, Tingdale Brothers Lincoln Hi11s Second Addition, Hennepin County, according to the recorded plat thereof; and Lot 10, Block 10, Woodlake Highlands Addition, Hennepin County, according to the recorded plat thereof. 2. Relocation No relocation or displacement will occur as a result of the proposed development project. 3. Rehabilitation Program No rehabilitation is intended in the Redevelopment Project Area. H. Environmental Considerations It is anticipated that the proposed redevelopment project will not present any permanent environmental problems. All municipal actions, public improvements, and private development shall be carried out in a manner that will enhance, rather than detract, from the natural environment. All necessary environmental permits and clearances will be obtained. -4- ~ /--/v I. Redevelopment Plan Modification Pursuant to Minn. Stat., Sec. 469.029, subd 6, a redevelopment plan may be modified at anytime provided that the HRA and City Council adopt such modifications upon the notice and after the public hearing required for the original adoption of the redevelopment .plan. If the HRA determines the necessity of changes in an approved redevelopment plan or approved modification thereof, which changes do not alter or affect the exterior boundaries, or do not substantially alter or affect the general land uses established in such plan, then such changes shall not constitute a modification of the redevelopment plan nor require approval by the governing body of the political subdivision in which the project is located. J. Administration of Redevelopment Project The Redevelopment Project will be administered by the HRA. -5- /~_ ~~ PENN AND 70TH BUDGET Administrative (staff time, legal counsel) $ 6,287 Soil Borings 2,750 Land Acquisition/Closing Costs 25,802 Total $34,839 -6-