11-05-87 agenda~~_~
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 23
Special Meeting November 5, 1987
Issue Statement:
Authorization for Stevens Excavating to proceed with demolition
work.
Background:
The HRA owned structure at 6301 Portland Avenue is to be moved
this fall to 6514 Irving Avenue for the 1987-88 Vo-Tech project.
The HRA is responsible for demolition of basement and existing
garage, removal of asphalt driveway, concrete steps and
sidewalks, and all miscellaneous yard debris. 619 East 70th
Street and 6840 Humboldt Avenue were purchased by the HRA this
fall. The existing substandard structures will be removed and
the area backfilled to match existing grade.
Staff prepared specifications and solicited bids for demolition
and site clearance. Bids specs were mailed to 15 demolition
contractors. Only one bid was received. The single bid, in the
amount of $10,949, is less than the 1987 revised budget amount,
which anticipated a $11,250 expense.
6301 Portland Avenue - $4,454.28
619 East 70th Street - $3,320.00
6840 Humboldt Avenue - $3,175.00
CDBG Year XIII (July, 1987 to June, 1988) funds have been
programmed for this expenditure.
Recommended Motion:
Adopt the resolution authorizing Stevens Excavating to
immediately proceed with demolition at 6301 Portland Avenue for
$4,454.28, 619 East 70th Street for $3,320.00 and 6840 Humboldt
Avenue for $3,175.00; a total of $10,949.28.
Basis of Recommendation:
1. Postponing demolition and site clearance may substantially
increase the cost of the demolition work due to inclement
weather.
2. The bid is competitive given the scope of work. The
contractor has not worked for the HRA before. However, they
have done similar work satisfactorily for the Minneapolis
Community Development Agency.
Alternative Recommendation:
Not remove the vacant substandard dwellings at this time.
Discussion/Decision Mode:
A delay will likely result in greater cost.
Respectfully submitted,
J s D. Prosser
E cutive Director
JDP/eja
~-~
HRA RESOLUTION N0.
Resolution Authorizing Stevens Excavating
For Demolition Work At
6301 Portland Avenue, 619 E. 70th St. and 6840 Humboldt Avenue
WHEREAS, the Housing and Redevelopment Authority has
purchased real property which requires demolition and site
clearance work to be performed at 6301 Portland Avenue, 619 East
70th Street, and 6840 Humboldt Avenue; and
WHEREAS, demolition and site clearance will be performed in
accordance with bid specifications and other requirements of the
city; and
WHEREAS, the bid amount is $4,454.28 for 6301 Portland
Avenue, $3,320.00 for 619 East 70th Street, and $3,175.00 for
6840 Humboldt Avenue; and
WHEREAS, Year XIII CDBG funds have been programmed and are
available for this expenditure.
NOW, THEREFORE BE IT RESOLVED, by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota:
1. That demolition and site clearance work
with Stevens Excavating in the amount o
6301 Portland Avenue, $3,320.00 for 619
Street, and $3,175.00 for 6840 Humboldt
2. The Executive Director is authorized to
funds for this purpose.
is authorized
f $4,454.28 for
East 70th
Avenue.
expend CDBG
Passed by the Housing and Redevelopment Authority in and for the
City of Richfield this 5 day of November, 1987.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
#~~
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No.. 22
Special Meeting November 5, 1987
Issue Statement:
Authorization to proceed with a civil suit for completion of
common area site improvements at the Rae Drive Townhome
Development (66th Street and Rae Drive).
Background•
Branton Construction Company initiated a development project with
the HRA in 1986. The development agreement specified conditions
for construction of housing within a planned unit development
common area. Although all individual units were completed and
sold as of January, 1987, the required site improvements in the
common area were deferred to the Spring, 1987 landscape
construction season. These improvements have not been made, and
legal counsel has recommended that a civil suit be initiated to
enforce the conditions of the development agreement.
Performance was specifically enforceable with a $23,200 letter of
credit and other standard measures contained in an agreement of
this type. The letter of credit was reduced a prorated amount
each time a unit was completed and sold. Since all units were
completed, the letter of credit expired. There is no fund for
the HRA to draw upon to complete the site work.
In late 1986, the HRA authorized staff to release a final
Certificate of Completion for this townhome development. The
final Certificate has been held pending completion. Staff has
made seven separate contacts (certified mail or personal visits)
with Mr. Branton between April and September, 1987, to identify
and resolve issues and to warn of litigation if corrective action
wasn't taken. Telephone calls have not been returned. Telephone
calls and letters of concern from the owners and the Rae Drive
management company concerning Branton's lack of response have
been received as well. Mr. Branton initiated and didn't complete
some minimal correction work which left portions of the site in
worse condition than before he started the corrections. The site
is owned by the Rae Homeowners Association as of May, 1987.
Branton no longer has any ownership interest.
Presently, a list of approximately 17 items require attention,
all of which fall into the broad categories listed below.
-Completion of offstreet parking area; striping, pavement
repair, curb stops and fire lane designation.
-Planting repairs; installation and replacement of planting
and sod that did not survive the winter or were improperly
installed.
-Installation of a small play feature in the sandbox area.
-Repair and painting/staining of decks, westerly units.
~~
-Re-grading and re-sodding of lawn area and resetting of
window area ways caused by settling of soil near foundations
which has caused water problems in basements.
-Installation of landscape rock removed from finished areas
of the site.
The critical items are:
-to repair soil grade and sod and reset
1012, 1016 and 1018 W. 66th Street. T
the continuous water drainage problems
are exposed to.
-Remove a hazardous piece of chain link
from the ground into the common area.
area ways at 1008,
his should minimize
that owner's basements
fencing projecting
The total estimated cost of correction is $8,000 to $10,000.
This is based on comparing the work required with bids for
similar work that staff has received this year. Staff recently
completed informal bidding to correct the critical items prior to
winter. One out of nine landscape contractors is available to
complete the work. The cost for correction is $1,200 by Jerry's
Landscape. If sod suppliers are not available in early November,
the cost of correcting the drainage problems would be $850 and
sodding would be deferred to Spring. The bid appears to be
reasonable and Jerry's has done satisfactory work for the HRA in
the past.
In preparation for a law suit, staff has taken pictures of
troublesome areas within the common grounds and has requested
legal counsel to prepare the necessary documents to initiate the
suit. The HRA is also being .asked to consider correcting those
items of a critical nature as quickly as possible.
Revenues for the improvements would be derived from a successful.
law suit. It also appears that the New Home Program budget has
"proceeds of sale" revenues from the recent sale of 6820 12th
Avenue that could be used on an interim basis.
The simplest civil action would cost an estimated $1,500 and
would take approximately 60 days if there is no countersuit. The
HRA approved budget provides $5,000 to cover Rae Drive legal
expenses in 1987. A $3,100 portion of this has been spent on
activities to date. Thus, there appears to be sufficient
revenues to accomplish the initial suit and related follow-up
actions.
Recommended Motion:
1. Adopt the resolution authorizing the Executive Director to
commence litigation in a timely manner against George E.
Branton Construction Company, for completion of landscape
improvements.
2. Approve a contract with Jerry's Landscape to undertake the
critical landscape repairs at a cost not to exceed $1,200.
Basis for Recommendation:
1. Site work has not been completed in accordance with the
development agreement.
2. It is in the HRA's best interest to ensure a proper
completion since the HRA has a second mortgage interest in
the properties approximating $160,000.
3. The HRA must take good faith efforts to minimize problems for
the townhome owners.
4. Adequate notice and time for correction has been given
Branton.
5. The HRA has sufficient revenues within the approved budget to
initiate a civil suit and make critical on site repairs.
Alternative Recommendation:
1. Do not initiate a civil suit, thereby foregoing the necessary
site corrections and requiring the Certificate of Completion
to be filed.
2. Do not make site corrections, leaving owners and the owner
Association to deal with corrective measures on their own.
3. Have the HRA authorize all corrections. However, there are
insufficient revenues available and it appears to be a
questionable action since the developer is actually
responsible.
Discussion/Decision Node:
Action on November 5 will permit the critical work to be
initiated before winter.
Resp ct ully submitted,
Jam D. Prosser
Ex c tive Director
JDP/eja
~~
HRA RESOLUTION
AUTHORIZING A CIVIL SUIT AND SITE CORRECTION
AT THE RAE DRIVE TOWNHOME DEVELOPMENT
WHEREAS, the Housing and Redevelopment Authority (HRA) in
and for the City of Richfield, entered into a development
agreement with George E. Branton Construction in January, 1986 to
develop townhome units and a planned unit development common
area; and
WHEREAS, the HRA is prevented from releasing a Certificate
of Completion for this development pending the completion of site
improvements in a manner consistent with the development
agreement; and
WHEREAS, the HRA has a mortgage interest in the property and
critical repairs have been identified which require immediate
attention; and
WHEREAS, the HRA has considered the need for critical
repairs to minimize damage to persons and property, and, Jerry's
Landscape has been identified to correct the grade and sod
problems; and
WHEREAS, adequate and proper notice and time for corrections
has been provided to George E. Branton Construction Company; and
WHEREAS, litigation is needed to protect the. HRA interest
with respect to the project and to recover any losses as a result
of contractor failure to complete the project in accordance with
the development agreement; and
WHEREAS, general revenues are available to the HRA to
initiate litigation and make critical .repairs.
NOM, THEREFORE BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield that:
-The Executive Director is authorized, to prepare, file,
serve, and prosecute a legal proceeding to protect the HRA
interest and to recover any losses as a result of George E.
Branton Construction Company failure to complete the project
in accordance with the development agreement.
-The Executive. Director is authorized to expend up to $1,200
to make critical repairs in the common area.
Passed by the Housing and Redevelopment Authority in and for
the City of Richfield, this 5th day of November, 1987.
Thomas E. Harms, Chairperson
ATTEST:
oan e m erger, ecre ary
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 21
September 21, 1987
Issue Statement:
Consideration of a request for the HRA to seek a conditional use
permit for the temporary use of three HRA owned parcels south of
Graham Avenue for parking by tenant customers of E. J. Plesko
Background:
On May 1, 1987, E.
addressed to Mayor
availability for t
(letter attached).
Champps Restaurant
the letter is also
J. Plesko and Associates submitted a letter
Hamilton which discussed the lack of parking
ne retail tenant customers at Market Plaza
Available parking spaces became scarce due to
popularity. (The city manager's response to
attached).
Mike Gould, representing E. J. Plesko and Associates stated in
the letter that they intended to resolve the parking situation in
a way which would be acceptable to the city and all their
tenants. The possibilities identified included:
-negotiating for use of space at adjoining developments,
-temporary utilization of the HRA owned land identified as a
portion of the site on which Landmark Centre may be developed,
-careful screening of potential Market Plaza retail tenants so as
not to lease to those who would have a great demand for parking
for an extended period of time, and,
-encourage tenants/employees to car pool
To date, E. J. Plesko and Associates has been-able to
successfully reach a verbal agreement with K-Mart for 50-60
spaces for employee parking only. They have also received a
favorable initial response from Woodlake Vet/Cleaner and
Richfield Lyndale Liquor Store for valet parking which will
hopefully be confirmed shortly. .They have not been able to reach
an agreement with Lake Shore Drive Condominiums on use of space
for parking. "Class A Valet Service" will be providing valet
service under a contract with E. J. Plesko.
At this time, E. J. Plesko and Associates wish to pursue the
possibility of using the three HRA owned lots south of Graham
Avenue for valet and/or employee parking purposes. Most of the
existing vegetation would be removed. They are proposing a
gravel surface for 61 vehicles. Ingress and egress would be from
Graham Avenue. There are several issues which the HRA must
consider before agreeing to permit this type of use:
1. The proposal does not meet usual standards for an offstreet
parking agreement which the city requires. Typically, a lot
is paved, there is storm sewer for on-site drainage, perimeter
curbing and landscaping.
2. The current residential zoning of the 3 lots does not permit
parking as a primary use.
3. Rezoning of the property is not appropriate
4. Legal counsel has indicated that if the proposal is to
proceed, it should do so on the basis of a conditional use
permit (CUP) which must be reviewed by the Planning Commission
and approved by the City Council. A public hearing must also
be held by each group.
5. The HRA would apply for the CUP as property owner.
If E. J. Plesko were to utilize the property, it would be on the
basis of an Agreement yet to be negotiated between E. J. Plesko
and Associates, Inc. and the HRA. Possible terms could be as
follows:
1. E. J. Plesko and Associates, Inc. would be authorized to use
the three Graham Avenue vacant lots on a temporary basis for
Market Plaza tenant employees and/or valet parking of tenant
customer vehicles.
2. The Agreement could be for a six month period with a 15 day
termination clause.
3. A $3,000 (six month fee) non-refundable fee could be due upon
execution of the Agreement. This would pay for taxes which
.would be due as well as administration costs.
4. The Agreement could be extended for two six-month periods
provided an additional sum sufficient to pay taxes is paid.
5. Liability insurance coverage would be provided by E. J.
Plesko.
The residents of Lake Shore Drive condominiums have been keenly
interested in this potential use. A meeting of the appropriate
people at Lake Shore Drive resulted in the attached letter dated
July 31, 1987. It contains their recommendations on page two.
E. J. Plesko has agreed to work with the residents to comply with
their request.
Recommended Motion:
Reject the request from E. J. Plesko for temporary use of the
Graham Avenue property and not initiate a request for a
conditional use permit.
Basis of Recommendation:
1. Before the HRA would consider Plesko's use of this property
for parking, Plesko must formulate a plan for a permanent
solution to the parking problem and begin implementation of
that plan.
2. The temporary use of this property for parking could
interfere with the initiation of the Landmark Centre
development.
3. Considerable staff time would be involved in seeking the
Conditional Use Permit. This time could be better expended on
other more beneficial development efforts.
Alternative Recommendation:
Direct staff to request the Planning Commission and City Council
to hold public hearings and consider the issuance of a CUP.
Following receipt of their reactions to a CUP, the HRA could take
action to formally consider whether or not an agreement should be
entered into for parking with E. J. Plesko. The agreement could
be considered at the December 21 HRA meeting.
Decision Mode•
A decision on•the process to be followed should be made September
21, 1987 so Plesko can proceed with their strategy.
Respectf ly submitted,
Jam Prosser
Exe ive Director
l .
.-.
E. J. PLESKO &
ASSOCIATES, INC.
May 1, 1987
Honorable Mayor Hamilton
c/o City of Richfield
6700 Portland Avenue
Richfield, Minnesota 55423
Dear Mayor Hamilton:
~~
Mayer ~ Rim. Svc. __
Cou„cit
Rtty. __, Com~-n. Sic.
CM ~-- t_lfl i)ir
Clerk Pub. Safety ,,,,_
As owner of Market Plaza, we are writing this letter to apprise you and
the city of a problem we are facing at Market Plaza. The parking
availability for our retail tenants is quickly evaporating due to the
opening of our most recent tenant, Champps Restaurant.. We are very proud
to bring Champps to Richfield and feel.a restaurant of this type will
provide the city with a well suited business. However, due to the early
success of Champps, they are utilizing't~ large portion of the parking lot
and will continue to do so as their business grows. This over-use of the
parking area has become a growing concern for the other tenants in the
center as per the Drug Emporium letter that you have received.
As a result of this parking situation, we are working to find a solution
that will be acceptable to the city and ali of our tenants that includes:
- Negotiating with K-Mart, Lyndale Hardware, Lake Shore
Drive Condominiums, the post office, and Richfield
Liquor to secure off-site parking for Market Plaza
employees and valet parking for Champps Restaurant.
- Discussing with the city planning staff the potential for
temporary parking on the city-owned land immediately to
the west of Trestman Music and Big Wheel Auto Store for
off-site employee parking until the site's ultimate.
development.
- The careful screening of potential retail tenants so as
not to lease to those who would have a great demand on the
parking for an extended period of time.
- Having tenants encourage car pooling for their employees
coming to and from work.
E.J. Plesko & Associates, Inc.
Management Office 340 Parkdale Plaza, 1660 So. Hwy.100 11518 N. Port Washington Rd., Suite 101
5340 Powerline Road Minneapolis, MN 55416 Mequon, Wl 53092
Fort Lauderdale, FL 33309 612-541-0151 414-241-90b0
305-771-3334
Real Estate Develo ers • Consultants • Mana ement ~ -
.-~ ~, f/.
May 1, 1987
Honorable Mayor Hamilton
c/o City of Richfield
Page 2
We are currently making progress with several of our neighboring
businesses to secure off-site areas but find that some of the hours of
their operation conflict with our need for their parking areas. We have,
however, been disturbed by staff's negative attitude regarding the
potential use of the city-owned parking area (Graham Avenue). This area
has been used for parking for our construction workers during the building
of Market Plaza. We offered to pay for the grating and graveling of the
area which we estimate could hold up to fifty cars for Market Plaza
employees. We understand that this is only a temporary solution and that
a long range parking program will need to be finalized. As more and more
tenants begin to occupy Market Plaza the demand on parking will continue
to grow, further complicating the problem.
We feel that E. J. Plesko has performed well in meeting the objectives and
details of the Redevelopment Agreement with the City of Richfield.
Anytime a developer is required to create a development of the value. and
density required by the city on an under-sized site, there are going to be
some problems that will need to be solved. E. J Plesko feels that the
parking situation is one that needs to~be addressed both on a short and
long term basis. We have not totally leased-up Market Plaza and find
ourselves in a tightening economic situation unless we are able to sign
several key leases shortly. Parking is a major concern to our potential
new tenants as well as the current ones.
Specifically, E. J. Plesko requests that:
1) The city-owned land known as the Graham Avenue site be seriously
considered for temporary employee or valet parking by Market Plaza.
2) Staff be directed to begin exploring alternatives with Market
Plaza for a permanent solution to the parking problem.
Thank you for your consideration Mayor Hamilton on this very important
matter.
Sincerely,
E. J. PLESKO & ASSOCIATES, INC.
Michael F. Gould
Vice President
MFG/cmw
cc: E. J. Plesko
Roger Derrick
Dean Vlahos
Brian Boyle -
°~' ,,. ' "
City of Richfield • 6700 Portland Avenue • Minnesota 55423 ~~
City Manager Mayor Council
James D. Prosser John Hamilton Edwina Garcia Ivan Ludeman
Martin Kirsch Michael Sandahl
May 12, 1987
Mr. Michael F. Gould
Vice-President
E. J. Plesko & Associates, Inc.
11518 N. Port Washington Rd., Suite 101
Mequon, WI 53092
Dear Mr. Gould:
Mayor Hamilton has asked that I respond to your May 1, 1987
letter.
The City of Richfield is very pleased that your firm is taking
positive steps to address the lack of parking availability at
Market Plaza. When the zoning was granted for this particular
development, there was significant discussion regarding parking
requirements. The developer had requested and was granted, a
reduction in the parking requirements because of evidence
provided by them indicating that a reduced parking requirement
would meet the needs for that particular operation. While the
City of Richfield has general guidelines regarding parking
requirements based upon industry standards, we anticipate that
the owner will use good business judgment when selecting tenants
for their operations so that the mix of tenants meets the parking
availability. While the City of Richfield is very pleased to
have Champps as a restaurant in our community, we obviously must
question your firm's judgment in leasing space to such a facility
without adequately analyzing the parking requirements for this
particular operation.
I believe your impression of a negative attitude on the part of
city staff regarding the potential use of city owned property for
a parking area is inaccurate. A more correct perception is that
staff was somewhat surprised that your firm had not made better
progress at realizing a permanent solution to this issue. The
history of this particular development is replete with examples
of the city staff, council and HRA demonstrating their good
faith.
We expect, however, a reciprocal demonstration of good faith on
the part of the developer. If you are prepared to provide more
clear evidence of ongoing efforts to resolve the parking problem
with a permanent solution, we would be willing to discuss some
temporary arrangements. I am not certain that even under these
circumstances that we will be able to accommodate your request,
but we will attempt to do so.
Telephone 869-7521 (612)
An Equal Opportunity Employer
Mr. Michael Gould
Page Two
May 12, 1987
If you have any questions on this matter, please feel free to
contact Community Development Director Byron Wallace.
Sincerely,
James D. Prosser
C' y Manager
JDP/eja
cc: Mayor and Council Members
Byron Wallace
E. J. Plesko
Derrick Companies
BY THE
LAKE S~---SORE DRIVE 'MANAGED
HEALTH
6615 LAKE SHORE DRIVE • RICHFIELD, MINNESOTA 55423 • (612) 861-7S9S CENTRAL
SYSTEM
July 31, 1987
Mr. James Prosser
City Manager
City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
Dear Mr. Prosser:
At the July list meeting of the Board of Directors of Lake
Shore Drive Condominiums, our Ad Hoc Committee concerned
with Graham Avenue Development reported to us that the Richfield
city-owned lots on Graham Avenue were to be leased to E_J.
Plesko and Associates_
The following information was given to us:
1. E. J. Plesko and Associates will be paying rent,
carrying insurance,-will provide maintenance and
snow removal, and will make any improvements on the
property.
2. We understand the land will be used for parking for
Champps Restaurant and the Drug Emporium, both of
whom are tenants in Market Plaza owned by E. J. Plesko
and Associates.
3. we also were told that access to this parking area
will be only at the Lyndaie and Graham Avenue intersection
(between Trestman Music Store and the Big WheelJ_
4. We understand there will be a gravel surface with
61 parking stalls, each 19 feet deep, allowing for
a driveway area 22 feet wide_ Boundaries of the
total area will be surrounded by some type of wheel
stops. =
We ,. the Board of Directors representing the interests of
250 tax-paying residents in our building, believe the City
should require:
Mr. James Prosser
July 31, 1987
Page 2
1. The enclosure of the parking area on all sides except
the entrance and exit at Graham Avenue. There should
be no access to the alley. The minimum standard
of fencing should be a 6 foot chain-link. While
this would not provide effective screening, it would
provide us and other neighbors with some security
from trespassers and potential vandalism.
2. Lighting directed on the parking area to provide
safety and to discourage its becoming a secluded
"hang-out".
3_ Maintenance which will not allow it to become a littered
eye-sore. A gravel topping. will require some treatment
to keep it from generating excessive dust.
In working through the need for additional parking, we feel
that standards should be established and maintained to prevent
additional problems fo-r the neighbors and the City of Richfield.
As a neighbor in this mixed-use land area, we are concerned
that any use not detract from the value of existing properties,
especially those recently developed by the City's use of
tax increment districting.
We appreciate the cooperative
and we sincerely hope you will
needs we have expressed.
spirit of our city government,
agree with the values and
Sincerely yours,
U-c-u~c~
. ~ r
Louise Dalquist, President
Lake Shore Drive Condominium Association
~~
t v~
-~,~.5
Betty Bruce, Secretary
Lake Shore Drive Condominium Association
cc: Michael Gould
E. J_ Plesko and Associates
Ivan Ludeman
Second Ward Alderman
Lidy Flom
Planning Department
City of Richfield