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08-17-87 agenda~`~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 20 August 17, 1987 Agenda Issue Statement: Authorization to modify elements of the Richfield .Flood Grant Program. eackground• The Richfield Flood Grant Program was established in 1977 as a part of .the Richfield Home Rehabilitation Programs. The procedural guidelines wexe last reviewed by the HRA in 1984. The purpose of the program is to assist low and moderate-income homeowners who experience damage from storm water run-off. Annually, $15,000 in CDBG funds has been set aside. to be used for flood grants. If these funds are not expended for flood repairs by the end of each program year, they are made available for CDBG Rehabilitation Deferred Loans. A Flood Grant is directed only to repairs resulting from flood damage. Receipt of a Flood Grant does not extinguish eligibility for a Rehabilitation Deferred Loan. This is important as other improvements., not directly related to flood damage, are often necessary and can be corrected with the .additional funds. Prior to the recent storm of July 23rd, the last heavy .rains causing damage from storm water runoff occurred in 1977 and 1978. As a result of these storms., 7 flood grants were issued to qualified homeowners. No flood grants were requested between 1978 and the July 23rd storm. A review of the Flood Grant Program procedures has indicated a need for minor revisions. Staff has revised program criteria so that .the program is available to reach homeowners with the greatest need and to more efficiently utilize the grant funds available.. Summarized below is a comparison of the Rehabilitation Loan Program, existing Flood Grant Program and proposed Flood Grant Program guidelines. Rehab.Loan Existing Flood Program Grant Program Form of Deferred Loan: Assistance -no interest -payable upon sale of home -expires after 30 yrs. Grant: -no interest -payback require- ment gradually cancel over a 6 yr. period -expires after 6th yr. Annual Approx.. $50,000 Program to $100,000 $15,000 max. Funding Proposed Flood Grant Program No change from existing Flood Grant program $50,000 max. ~, ~ _~ Funding Avail. Per Household Income Limits- 1 person household. (increases occur for ea. add. member). Applican t Selection Rehab.Loan Existing Flood Program Grant Program $8250 $6000 $13,500 (509K of median income). Meet specified Income req. Eligible All improv, Improve .relating to: -safety & health hazards -code compl. -energy sav. Flood Ins. None Required Requirements $21.,300 (80~ of median .income) Meet specified Income req. No change from existing Flood Grant program $13,500 (50°6 of median income) -meet specified income req. -ineligible for Fed, Disaster funds only specific "priority" repairs related to flood damage only repairs related to flood damage Required for homeowners receiving over $1000 in funding None Required The purpose .for each revision to the existing Flood Grant Program is described below. Program-_Funding: Incaease CDBG funds alloc n from X15,000 to a maximum o' Two households have already requested assistance which would almost use up the grant monies available. An increase up to $50,000, which would be utilized only when a city wide emergency situation has been noted by the Executive Director, is being proposed. This increase would provide 8 to 14 grants rather than 3 to 5 grants, ensuring benefit to a greater number of homes. Currently, sufficient CDBG funds-are available to set aside the .maximum $50,000 for Flood Grants. In addition, approximately $25,000 will still be available for Rehabilitation Loans. In future years, the Flood Grant Program. would only be utilized when emergency situations occur. Funds not used for flood repairs after 3 months of availability would be returned to the deferred Proposed Flood Grant Program `-' ~ L loan program. Localized or individual f_load damage problems during non general emergency situations will be funded through the emergency component of the Rehabilitation Deferred Loan program. Income Limits• Income Limits From 80% To 50% Of ian As Determined The lower income limits will direct grant funds to homeowners who are unable to obtain other financing, due to their low income. Applicant Selection: Applicant must be ineligible for Federal Assistance if .available If Federal Disaster funds are available, only those applicants determined ineligible for such funds will be considered-..for the Flood Grant Program, thereby eliminating duplication of funding alternatives by City and Federal programs.. Since federal assistance is provided on a case by case basis, a Flood Grant Applicant must first be screened for federal eligibility before eligibility for the HRA program can be determined. Eligible. Improvements: Identif a rorit list of re airs. To most effectively utilize the 6,000 grant, funds will be directed to specific, "priority" repairs: -structural damage -electric systems -plumbing systems -replacement of heating system and/or water heater -replacement of doors and windows to secure premises -any other repairs/improvements that might minimize the potential for future flooding damage This change means that cosmetic repairs and finishing, and carpet replace., etc., would not be funded. Other necessary improvements not related to flood damage, (i.e., elec. update, energy saving improvements, interior and exterior repair)., can be completed with Rehabilitation Deferred Loan funds. Insurance Requirement: Remove he Insurance Requirement From the Guideline... Flood insurance will not be required. The reduction in the income limit and the high cost of flood insurance make this requirement unreasonable. Recommendation: It is recommended that the HRA adopt the attached resolution authorizing the identified modifications to the Richfield Flood Grant Program. ri ~ s~ Basis for Recommendation: 1. Increases the number of flood grants which could be made available. 2. Better targets. the Program to those most in need. 3. Provide emergency grants if federal disaster assistance is not available or sufficient to complete the priority repairs. 4. Facilitates more efficient use of funds. 5. CDBG funds, previously 'programmed for rehabilitation .loans, are already available for flood grants. Alternative Recommendation: -Not authorize modifications to the Richfield Flood Grant Program. This would preclude improvements to the program hindering its effectiveness and efficiency, Decision .Mode: Immediate HRA authorization of the Flood Grant Program modifications is important to address the present needs of the community. Program advertising will be promptly initiated following approval. R spec y submitted,. °~ , mes D. Prosser xecutive Director JDP/eja ri / 'may HRA RESOLUTION NO. RESOLUTION AUTHORIZING MODIFICATLONS TO RICHFIELD FLOOD GRANT PROGRAM WHEREAS, one component of the HRA Richfield Home Rehabilitation Program is a Flood Grant Program which was last authorized in March 1984; and WHEREAS, modifications to the program guidelines would facilitate more effective and efficient use of program funds; and WHEREAS, the HRA has reviewed the following modifications: -Provide up to $50,000 in CDBG funds when city wide damage occurs -Direct assistance to lower income households -Provide assistance to homeowners eligible for available federal funding yet federal funds may not be sufficient to satisfy the repair problems they may .have, -Identify a priority list of repairs -Remove the Flood Insurance requirement NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota, that the Executive .Director is authorized to modify the Flood Grant Program procedural guidelines as described herein. Passed by the Housing and Redevelopment Authority of Richfield this 17th day of August, 1987. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary T~ r HOUSING AMD REDEVELOPMENT AUTHORITY HRA Letter No. 19 August 17, 1987 Agenda Issue Statement: Authorization to initiate negotiations for the purchase of 7312 Lyndale Avenue to provide for the development of market rate single family housing. Background: A series of events that has occurred in the last few months provides the HRA an opportunity to acquire a substandard. home located at 7312 Lyndale Avenue. The property owner, Blanche Bergholt, has requested participation in the Voluntary Acquisition Program.. The events which provide the opportunity to purchase the property include: 1) Hennepin County Community Services and the Richfield Police Department noting undesirable and substandard living conditions; 2) The family .decision to move to another location; and 3) Evaluations by environmental and fire division personnel which have noted property maintenance problems and a malfunctioning furnace that does not warrant repair. A role is being proposed for the HRA to ensure: 1) That the Bergholt family, long time Richfield residents, is not taken advantage of by speculative developer and realtor interests; 2) the density of future development would not exceed the present single family use and zoning of the area. Four new single family homes are possible without zoning variances. The Bergholts own four platted lots which form a single parcel measuring 215 x I70 feet (36,500 s.f.). Private developer interest in rezoning to permit higher density is likely; 3) the City Council, Planning Commission, and neighborhood would avoid challenge by developer interest to secure special use permits and rezoning for greater density; 4) that design standards .are utilized to ensure a variety of market rate single family homes, prevent a "cookie cutter" sameness to the homes in terms of siting, materials and general appearance; and, reflect housing values in the .area. 5) the sale of splinter parcels at the rear of the property to benefit adjoining property owners to the west on Aldrich Ave. The HRA is most often involved in below market housing activities on scattered sites. However, no CDBG funds are available. Facilitating a market rate development in this instance would be beneficial to the community and would provide more development flexibility. The proceeds from the sale of the parcels to a private developer would pay most or possibly all the HRA costs. ~~ A summary of the proposed purchase and redevelopment process follows: 1) An option agreement would be negotiated between the HRA and the Bergholt family. This would demonstrate the HRA interest in purchasing the property. It would also satisfy the Bergholt's desire to sell to the HRA. 2) Under the option, the HRA would have 60 days to identify a developer. Interested developers would provide site plans and elevation drawings of the proposed housing, indicate the amount that would be paid for each lot, and post a bid bond. The bid bond revenue would be used as earnest money by .the HRA to enter into a purchase agreement with the Bergholts. The developer must also be willing to assume responsibilities for the cost of .surveys, demolition, taxes, insurance, property maintenance, and public improvements as necessary such as curb cuts, and sewer and water services. 3) The NRA would review the development proposals, authorize a development agreement with the selected developer, and a. purchase agreement with the Bergholts. The purchase agreement with the Bergholt family would identify an amount to be paid for the property, and an amount to be received by the HRA for legal and appraisal costs incurred. Dollars offered by a developer above the funds due Bergholt and the HRA. would be split equally between Bergholt and the HRA. 4) A simultaneous closing would be scheduled. The HRA would acquire the site from the Bergholts and the developer would acquire the site from the HRA. 5) The developer would .clear the site within 30 days of closing .and initiate development with completion in 1988. Four single family homes in the $100,000 price range are anticipated (value of land and buildings). Specific dollar amounts have not yet been identified for this transaction; however, these conditions are known: -The assessor's estimated market value is $90,200 for 1987. -The Bergholts would be paid a fair price, as negotiated within the Voluntary Acquisition Program -The HRA would provide no subsidy other than possibly staff time. Costs such as acquisition, appraisals, and legal fees are to be covered with the proceeds of sale from the developer. Staff time would be charged to the New Home Program and reimbursed only if revenues in excess of the above costs were secured. If it became apparent that sufficient funds would not be available from proceeds of sale to cover acquisition costs, appraisals and legal fees., the transaction would not proceed. .Recommendation: It is recommended that the HRA authorize the Executive Director to negotiate an option agreement and initiate the process to identify a developer. T-~ Basis for Recommendation: 1 The property is structurally substandard and timely actions will remove the building and minimize the need for enforcement actions by the city against the property and the need for the Bergholts to expend additional money on the property. 2) It is in the best interest of the family to sell to the HRA in order to minimize the .pressures placed on the family during the sales process according to Hennepin County case management professionals. The Bergholts are comfortable in dealing with the HRA. 3) Without design controls available through the HRA process, previous experience indicates a row of duplicate houses may result.. 4) Preliminary contacts with appraisers and developers indicate the revenues from a developer may be sufficient to satisfy Bergholt and cover HRA expenses. 5) Rezoning in this area to a higher density is inappropriate, yet likely if the private market is left to initiate development without the HRA role. Alternative .Recommendation': 1 Not be directly involved in the development of the property... 2) Simply make developers aware of the availability of the property. Decision .Mode: -There are at least two serious issues involved in this matter, the health of the Bergholts, and the substandard condition of the property. A decision at the August 17th meeting is imperative to permit the initiation of activities to relieve these. conditions, If the HRA decides to proceed with the recommendation, it is likely that authorization to purchase the property and developer selection would occur at the October meeting. Respe fully submitted, Ja a D. Prosser Executive Director JDP/eja r ~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 18 August 17, 1987 Agenda Issue Statement: Authorization to acquire 619 E. 70th Street and 6840 Humboldt Avenue to provide affordable housing units. Background: The HRA has utilized the Voluntary Acquisition Program since 1980 to acquire substandard properties for redevelopment. The Vo-Tech and private developers have developed these sites with new housing units for moderate income families.. In early 1987, approximately seven homeowners offered their properties to the HRA. T-here is approximately $83,400 in Year XII (1986-87) and Year XIII (1987-88) CDBG funds already budgeted for acquisition of both properties. Both properties, 619 E. 70th Street and 6840 Humboldt Avenue, are vacant and therefore desirable for acquisition, and meet the Voluntary Acquisition Program requirements. The Planning Commission has determined the acquisition and disposition of these properties to be in conformance with the Comprehensive Plan. 619 E. 70th Street This property has a-1987 assessed value for 1988 payable property taxes of $43,200. An independent appraiser valued the property at $46,000. The home is located to the rear of a 76 x 118 foot (9,050 sq.ft.) lot, was built in the late 1930's, has 540 sq. ft., one bedroom, and is substandard as to its location and construction.. The property is owned by a trust administered by Arnold Bixby on behalf of the family of Allen E. Bixby. The trustee has executed the "Waiver of Relocation Benefits" form. Staff has .negotiated a purchase price of $41,920. The HRA would be responsible-for site clearance and property maintenance following acquisition. The 1987 revised/1988 proposed budget provides $5,000 to clear the site (source: CDBG XIII), $400 for legal work to acquire (source:-CDBG XIII), and $500 for property maintenance and insurance (source: proceeds of sale of 6820-12th Ave. Vo-Tech project). The property would be tax exempt until development occurs.. Two development .options appear feasible in 1988. Vo- Tech or a private developer could develop the site with moderate income housing for family ownership. The size of the site and its location on a collector street would allow, by special use permit, a duplex or accessory apartment .type home. A single family home could .also be developed. 6840 Humboldt Avenue This property has an 1987 assessed value for 1988 payable property taxes of $45,100. An independent appraiser valued the property at $46,000. The home is centrally located on a 66 x 135 foot (8,900 sq. ft.) lot, was built in the early 1940's, has 480 sq. ft. on the main floor, 200 sq. ft. on an upper level, one bedroom, and is substandard because of the need for updating building systems and because the bathroom can only be reached by walking through a bedroom. Potential buyers have not been able to secure financing for the house because of the substandard bath. d -i The property is owned, on an non-recorded .contract for deed, by Robert and Francine Thew. The Thews have executed the "Waiver of Relocation Benefits" form. Staff has negotiated a purchase price of $41,400. The HRA would be responsible for site clearance and property maintenance following acquisition. The 1987 revised/1988 proposed budget .provide site (source: CDBG XIII), $400 for legal work CDBG XIII), and $500 for property maintenance (source: proceeds of sale of 6820-12th Avenue The property would be tax exempt until develo development options appear feasible in 1988. private developer could develop the site with home for a moderate income family. $5,000 to clear the to acquire (source: and insurance Vo-.Tech project). pment occurs. Two Vo-Tech or a a single family Recommendation: It is recommended that the HRA adopt the attached resolution which authorizes the Chairperson and Executive Director to enter into a purchase agreement and take other actions necessary for the HRA to acquire the property at 619 E. 70th Street for $41.,920 and the property at 6840 Humboldt Avenue for $41,400. Basis For Recommendation: 1 The property owners are interested in selling to the HRA through the Voluntary Acquisition Program 2) There are development options for initiating two projects in 1988. 3) Funds have been budgeted for acquisition, clearance, and ..~. maintenance. Alternative Recommendation: The HRA can choose not to acquire these properties. However, staff has few alternates and the alternates will not be less costly to acquire. If the HRA fails to authorize .and acquire at least one property before the end of the year, approximately $25,000 in CDBG Year XII funds must be returned to Hennepin County for use by other communities. Decision Mode: If the HRA authorizes acquisition, both properties may be acquired in September. pect 1 ubmitted, / `'~J~'~'C. Ja es D~...P-rosser ecutve Director JDP/eja ~~- ~ HRA RESOLUTION N0. Authorizing the Acquisition of 619 E. 70th Street and 6840 Humboldt Avenue WHEREAS, the Housing and Redevelopment Authority (HRA) in and for the City of Richfield acquires property, relocates occupants, and builds and rehabilitates structures for residential purposes; and WHEREAS, the HRA desires to acquire the real property at 619 E. 70th Street, legally described as: All 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, of Section 35, Township 28, North, Range 24, West of the Fourth Principal Meridian, lying East of the West 239 feet thereof. ALSO: The East 59 feet of the West 239 feet of the North 109.6 feet of the Northwest 1/4 of the Northwest 1/4 of Section 35, Township 28 North, Range 24, West of the Fourth Principal Meridian, EXCEPT the North 33 feet thereof, according to the United States Government Survey .thereof and situate in Hennepin County, Minnesota WHEREAS, the HRA desires to acquire the real property at 6840 Humboldt Avenue South, legally described as: Lot 9, Block 2, Woodlake Highlands, Hennepin County; and. WHEREAS, the owner of 619 E, 70th Street, Arnold Bixby as Trustee of the Allen E. Bixby Trust has volunteered to sell his property for $41,920; and IMHEREAS, the owners of 6840 Humboldt Avenue South, Robert and Francine Thew have volunteered to sell their property for $41,400; and WHEREAS, the Planning Commission has found the acquisition of these parcels for residential purposes to be consistent with the Comprehensive Plan; and WHEREAS, Community Development Block Grant (CDBG) funds will finance the acquisition of these parcels. NOW, THEREFORE, BE IT RESOLVED by-the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota: That the HRA Chairman and Executive Director are authorized to take necessary actions to purchase the property located at 619 E. 70th Street for $41,920 and 6840 Humboldt Avenue for $41,400 utilizing CDBG funds. Passed by the Housing and Redevelopment Authority in and for the City of Richfield this 17th day of August, 1987. ATTEST: Thomas E. Harms, Chairperson Joan Helmberger, Secretary ~~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 17 .August 17, 1987 Agenda Issue Statement:. Authorization to execute contracts with South Hennepin Vocational Technical School (Vo-Tech) to initiate projects for 1987-1988. Background: Vo-Tech has requested that the-HRA participate in two projects for the school year 1987/88. The two organizations have participated together in 8 projects since-1977. The projects benefit both parties by providing training opportunities for Vo- Tech students and affordable "new" housing at reduced cost for the HRA. This letter describes past activities taken by the HRA and staff in preparation for the 1987/88 projects, summarizes the contracts with Vo-Tech, and requests authorization to enter into the contracts. On November 17, 1986, the HRA authorized staff to acquire the properties. located at 6514 Irving Avenue South and 6632 5th Avenue South through the Voluntary Acquisition Program. Year XI and XII (1986 and 1987) CDBG funds were utilized for acquisition. 6514 Irving Ave, So. The site at 6514 Irving Avenue South has been identified for a rehabilitation project. This property was acquired by the HRA in 1986 for $46,500 and cleared in early 1987 at a cost of $7.550. The source of funds have been Year XI and XII CDBG funds. A structurally sound structure located at 6.301 Portland Ave. So. (presently owned by the city) would be moved onto the site and rehabilitated by the Vo-Tech students. The remodeled house would have the following features: 1800 square feet of finished living area, three bedrooms, one and one half bathrooms, a living room, family room, separate dining room, a kitchen with an eating area, a full unfinished basement, an exterior deck area and a blacktop driveway and parking pad. The rehabilitation contract requires Vo-Tech to: -relocate the identified structure from 6301 Portland to 6514 Irving -construct an addition to accommodate an eating area off the kitchen and a full bathroom on the 2nd floor. -patch and redash stucco exterior -install new heating, electrical., and plumbing systems -install new sheetrock walls and ceilings, (except the existing dining room and living room with fireplace which will remain unchanged) -provide all new floor coverings, new interior trim in renovated rooms, new doors and windows, new roof covering -complete by August 1, 1988 ~~-~ The Vo-Tech contract for relocation and rehabilitation of the structure is not to exceed $61,057. The estimated project costs include: Vo-Tech Contract : $61,057 Landscape $ 2,500 Legal $ 600 Closing Costs $ 2,000 66,157 Thus, it is anticipated that the proceeds of sale resulting from a sale to a first time buyer will approximate $67,000 and also cover all incidental costs (marketing, etc'.) except staff time. The second mortgage amount, which is not needed to cover project costs, would approximate $19,000 if the house has an $85000 value upon completion. 6632 5th Avenue South The site at 6632 5th Avenue South has been identified for a new construction project. This property was acquired by the HRA in 1986 for $44,600 and cleared in early 1987 at a cost of $6280. The source of funds so far have been Year XI and XII COBG funds. This will be the first new construction project between the HRA and Vo-Tech where a one story structure will be built at the Vo- Tech campus, moved to the site, and placed on a permanent foundation. The new house will have approximately 1500 sq. ft. of finished living area. It will feature a walkout lower level, 3 bedrooms, one and 3/4 bathrooms., a living room, separate dining area, unfinished space on the lower level for a future bedroom and family room, a deck area adjacent to the dining room, and a parking pad with access from the alley. The new construction contract requires: -the construction of a permanent foundation at 6632 5th Ave. -the construction and relocation of a one story house to 6632 5th Ave. So. -the installation of new heating, electrical and plumbing systems -interior finishing; floor coverings, millwork, painting and staining -completion by October 31, 1988 The amount of the Vo-Tech contract for the new construction project is not to exceed $53,800. The estimate project costs include: Vo-Tech Contract: $53,800 Landscape $ 2,500 Legal $ 600 Closing Costs $ 2,000 58,900 ,~T~_~ Thus, it is anticipated that the proceeds of a sale to a first time buyer will approximate cover ail incidental costs except staff time. mortgage amount, which is not needed to cover would approximate $20,000 if the house has an completion. sale resulting from $59,000 and also The second project costs, $80,000 value upon The major elements of both contracts include: -Supervision of labor and insurance coverage to be .the responsibility of Vo-Tech. -A provision requiring Vo-Tech to be 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 exterior facade, and routine site maintenance during the construction period. Because of the experience on 12th Avenue this provision has been strengthened.. The amount of work actually done by students on these projects will be less than in the past. Cutbacks have reduced many programs from 12 months to 9 months, thereby reducing the availability of students to complete portions of the work. The contract price reflects bids from outside contractors to complete foundation work, and interior painting and finishing. Legal counsel has reviewed these contract requirements. A copy of the survey, floor plans, and building elevations accompany this letter. Both lots will accommodate the proposed structures without variance.. It is expected that the projects will be initiated in September, 1987. Staff met with adjoining neighbors to present the project plans in July. The homes will be sold to first time home buying families of three to six members having a moderate income (as determined by Section 8 income limits) of between $23,000 and $34,200. The Planning Commission made a finding that disposition of the properties as single family dwellings will be in conformance with the comprehensive plan. Although the completed values of the homes have not yet been determined by independent appraisal, staff estimates that values should be in the $75,000 to $85,000 range. The initial purchase prices would more closely approximate $65,000 to $67,000 and second liens would be used to recover any difference. The proceeds of sale are utilized to pay the contract. It is ~~ anticipated that reduced interest rate mortgages would be secured from the Minnesota Housing Finance Agen'ey in summer, 1988. In past Vo-Tech projects, concern has arisen regarding the length of the construction period and delays in the completion of the exterior facade. Construction usually occurs over a period of 12 months. Work is completed in phases determined by the Vo-Tech curriculum schedule. T-here are often periods of several weeks in which no work is done at the site, particularly while students are being .trained on campus in preparation for the next phase. As a result, some portions of work are not completed in as timely a manner as may be desirable, The area of greatest concern has been the completion of the exterior. and construction site appearance. It is anticipated that this problem. will pose less of a concern in the proposed 1987-88 projects. A stucco structure will be used in the remodel project. The majority of the exterior will be intact upon its relocation to 6514 Irving. Final stucco repairs will. occur in Spring,. 1988:, The exterior of the new construction project will be completed prior to its relocation to 6632 5th. Dave Smith, supervisor for Building Trades, from the Vo-Tech School, will be available at the HRA meeting to discuss the projects with commissioners.. As noted above., the HRA must purchase the structure at 6301 Portland Avenue South from the city. The property was purchased in 1986 for park expansion. Staff has negotiated a purchase price of $4000 with Community Services. The City Council would be requested to authorize this transaction.. Revenues for this acquisition will be taken from Year XII CDBG funds and proceeds of sale from 68.20-12th Avenue South, (the 1986-87 Vo-Tech project). The HRA will also assume responsibility for sale and removal of the garage and backfilling the basement excavation. Recommendation: It is recommended that the HRA adopt the attached resolution auth©rizing: 1) The execution of the Vo-Tech contract in the amount of $61,057, for the.1987-88 remodel project at 6514 Irving Ave. So. 2) The execution of the Vo-Tech contract in the amount of $53,800, for the 1987-88 new construction project at 6632-5th Ave. So. 3) The execution of an agreement for acquisition of the structure at 6301 Portland Ave. So. from the City for $:4,000., sale of the garage and backfilling the excavation, pending City Council authorization. Basis For Recommendation: 1. The sites have been cleared and are ready for development 2. A structure has been .identified and approved for ..relocation by the inspection division. 3. The inspection division ~s satisfied with the plans for the on campus project. .~~ _ y 4. Plans have been developed and reviewed by staff to meet the program needs of the HRA. Alternative Recommendation: Do not authorize execution of the Vo-Tech contracts and purchase agreement. This would delay development which could prohibit the Vo-.Tech from including the projects in their 1987-88 curriculum. .Decision Mode: It is important that the Vo-Tech contracts and purchase agreement be executed immediately to avoid delay in site development and to ensure Vo-Tech's participation in 1987-88. ct 1 y y~b_mi~~d~ ~~ es D. Prosser -w Executive Director ~~ _~'' HRA RESOLUTION N0. RESOLUTION AUTHORIZING CONTRACTS WITH VO-TECH AND AN AGREEMENT TO ACQUIRE STRUCTURE FROM CITY WHEREAS, the Housing and Redevelopment Authority (HRA) acquired the real properties at 6514 Irving Avenue South and 6632 5th Avenue south, legally described as; Lot 4, Block 13, Fairwood Park 1st Addition, and Lot 9, Block 2, McCutchen's Portland Ave. Park, respectively, and; WHEREAS, a project has been proposed for each site in cooperation with South Hennepin Vocational Technical Center (Vo- Tech); and WHEREAS, a structure at 63D1 Portland Ave. So. has been identified for relocation to 6514 Irving Avenue South and rehabilitation to become a 3 bedroom, one and .one half bathroom home; and WHEREAS, :the purchase price for the structure at 6301 Portland Ave. So. is $4,000; and WHEREAS, the contract price for the rehabilitation of the project at 6514 Irving Ave. So. will not exceed $61,057.; and WHEREAS, the property at 6632 5th Ave. So. would be developed with new construction; and WHEREAS, the contract price for the new construction project at 6632-5th Ave. So. will not exceed $53,800; and WHEREAS, following completion of-the rehabilitation and new construction work the properties would be sold to a first time homebuying, moderate income families. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield Minnesota that the HRA Chairperson and Executive Director are authorized to: 1. enter into a construction contract for an amount not to exceed $61,057 for the housing rehabilitation project to be completed at 6514 Irving Avenue South. 2. Enter into a construction contract for an amount .not to exceed $53,800 for the new construction housing project at 6632 5th Avenue South. 3. Request the City Council to enter into an agreement to acquire the structure at 6301 Portland Avenue South for $4.,000, sell the garage and backfill the excavation. ~~_ r Passed by the Housing and Redevelopment Authority of Richfield, Minnesota this 17th day of August, 1987. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary i ~~,.. ~;~~ ~~~~ i , . .i i:, ,W,~; ~ 9 :. upli i~ ;~I i!I .~ W Z' . 0 ~ 3 ~~ 2 H LLJ Q C7 Z_ d' r t() 0 tT ~ L_1 ~ i I Y~ l• __ yl . •fi.~ N C J ~. ;' ^•'., ~:' ~ ~ ;. .~ ~~~ ,; i II - ~1 ~~.{ L di Q , =~:. :., "`•. ~I ~,; ~, >~ _~ ~~ -~ . ~5 ~ 4 IRVING AVE.SO. ------- -- -a~'_~:__ --- .MAIN LEVEL FLOOR ALAN. ~ . _.. /~SDS7 iaT1-~E0.h{d9/ 70 1N'rt=hlOPl OI= ~'XIbTiNC' S D tl _. : -~~ X.,13 ` :.~.3~ ~ _- ~~~ve wautb~ '~,b'fGD WtlBtt~p ~ , _1 ._ O U _ _ ._~+ _ ~~, ! ~ - 'INStt~W SWGY ~peGlrK1 ~ ~~W ~' - ! r- _ I '. =0 =a . - _ - Su~~T ft. SYS"tEt1 ~bcr/~. .~N __o vITN titC.vio-i.or1 8~4t1 b ' P~E{'~ WdI.L~~iDD >'~4 ~~ 7~+ 1~~~< P~s+Lt t3C.! ~ r _ _ _ _ ,~ , ---_ --- ~~F - ~-;-l-! (~ DN + ~ ~' ' 1 ~~8. ig Q ~! ' 1 njLl•' NEWl~BtNE7' o~ `~-- { ~ v ~ ~ aj 'lam ~ ~ ~ N~7~ ~ '' ~ ~ ~fYICIVE ~ P+E~IIY.E ALL - ~.~ Llti;~• -- LINO ~ ~ wlNOow; ~ water . - -- i~ln.<~! /155 WltvGbW~ - o ~ ! =b i' ~ e 1 yew 2 c. 4,~?_-24J 8 - _- .. B-U 1 ~ t' w IKibws tNptGp'tt#3 D fi ~ ~ ' ' ~ G6t1 T . ~ ~XI S ~ I iW.-~ ~O~.t16L Di N i NCq , ! ~'XISTI N ~ ~~f? t~Q i G) v j{ i! - ~ ~ '~ _ i, - - --- - - -- r ~• ~ t J. ~ ~ ------ !: ~I , . ~~~~. ' LYE SI ~ ;; d cV . c.E~ ffti. ~ dN t i.E. $P+ILi; OP. - ST uC.U~ acs ST~pti o ~ . ,, , ,(..i.w.. ~ - . M l,rb KdluNC1 ~ r _ u-~.._ J ~ O T1'~p / ~i~ ~ 1t===== =- I~ l l ~~... o ~ o ~ RfflP~oG r ~-~ ~i ~ ~i 1 ~' 2 ~' - l ~ nOd Nfw t~r7Eih~ ~ ' wlNpowS , EC.~P~SS w~NC~~,! fr,.iP4~S5 wsNDOM/I F-- _ _.. ____~_-_ - .. i _.._.___-----.- ____-__-, f 4 2- t. 5'- a CENr~L D~.HEQ,'S 4n1. S= U WinIDOWS, lSEI,UW F o, 5lnt~ sf~' = t-p fC~ Hedlund Engineering Services 9201E st8loomingtonFreeway ~ Bloomington, Minnesota 55420 Lond Surveyors Clvll Engineers Land Plonners Phone: 888-0289 ~' suave ors G'er~~ Fate r ~_- - - -- - - - BOOK PAGE 6v~4 IRVING AVE. SO.. J08 N0. B7_ SURVEY FOR Richfield H.R.A. OESCR18E0 AS~ Lot 4, Block 13, FAIRWOOD PARK 1ST ADDITION, City of Richfield, Hennepin County, ?.?innesota and reserving easements of record. TOP OF FOUNDATION = 135.9 GARAGE FLOOR = /3 5• S BASEMENT FLOOR =128.5 (ASSUMED 11C, [i~.se~r.ewt} SEWER SERVICE ELEV . = N/A PROPOSED ELEVA~`IGNS o EXISTING ELEVATIONS DRAINAGE DIRECTIONS -~- EX151'.IING DENOTES LOT CORNERS :o HoUSr DENOTES OFFSET STAKE :^ Tcpo~ (31K, l:~.. 13?.4 -- X7.3--~ -., ~ ~.-T- -^ 1 ~ 1' ~ ! ~ ~--- ~~_ 1. r ~~ ~ I f 3'/.8 3 N .~ oO Z O O M H. ~- T ~ltrsec.+:o v~ aE' 65+'+ sr. ~IRVIn>v O Tvwe.~{- E k.~ta:+~ov~5 ~Cav~alh _ \1~5.~{ •N Sov.tV1.118.89 0 r~ 26 `j ~~°~ -~'I N 23.9 '~,:: I . - -- - - ~e' ri,~t ~T• ~/V .iF l3~0 ~ 13 S.Z M N X ry ~._______.--- ~ l3Y•7 r, 135,2 F ' . _ ` ~ = _,o_ - "~~--~ 6 ,~ 133y 12.93 ~--~~ i.~,'•9 PP. (-`~ 13¢.97 Last _ _31__ _,- 132,5 ' _: EXlst'ING ~ Hous C Topofl[~IK. ~ Et- =/36•x/0 I / 30.7 b~ W QI / ~.~ Z i a. ~i CERTIFICATE OF SURVEY I hereby certify that this survey, pion or report was prepore~ ~~~ me or under Imy direct supervision and that I om o duly Re9i:tared Land Surveyor t,nder the low: of the .Stott of Minnesota. / F~ / / # \ ~ 5 Dote : ~ / - b / ~ ~ ',~~° ~t `~ . c~~..x ,a ~. -,~,,,,w-- JtKr~y' ~. Li gran, License No. 4376 ss N ~ V ~ , 13s. 1~ N Q m 1 ~ u ~- ~3t~ ~ m S~ ~ o x 133• p 4i c.,ai I t ~3S Z 0 ~o.c~ v: . Iw to ~ 135.2 ~N `" 1{,5 O 1 ~.... ti; ;n i. ~ 0 --~~- ExicT _ ..~} ~I(IL . _. _._. ~~~ C V i ~ ly•~ ~t v~ 6 .i. ("" W a N M t0 CO _; . -f .~! . . ~ ~.;~ '- . l .+ d ~, • z ~t I .~ int. •~. .~,,;:. .`~ ~ ... ..:d ., ~, . '! ~- _ '"i .. r,' _ if •~. • ~f ~! ~1 11 11 1~ ,~ 1~ !i - 1 I' -L J+ •il ~~~:~ __ 1~ :. ~ ij 1~M~,iy 11 ~ •`~ [~ 1~ _ ~~ ~( ;i ,1 __ ., ---:i 6632 5TH ASE' s~. LEVEL ~~QOR p~,AN MAIN _ _ _ +:, - ._ . _ _._~.. . -- ~-- --- u ~`, , ,, ~ ; } 'ji ,; ~_ _._. :-s ___ -- - ~- 5 ~ sg ~,~s , ;i ,. r---- _ ~ -;~ _ } ; J, ' W t ~ ~ LS--~• IJ'.~ , SN 1•.4 ~ ~ ~r ,y ~ _ ~ ___. ~ ~ , ~ '' t - --' ~ ~ ~ K .~-~.' a ~ z' ~, _~-~. ~- t~~ ~', °z r i _ , ~ t~... `; -p ~ ', ~~, ~ {t l , ` ~ .~ ~~ ~~-~-- -- ~ ,~ ___~ -~~ ~ ,~`i 1 `; ~'~ k"' fi.l C oV '~ :~ L 6632 5TH AVE. SO.' ~:.„ LOWER LEVEL. FLOOR PLAN. 1 ~ ~'- v .- L ~ r. ~ ~: ~9 ` _~ ~ ' ~ - j - 3 `: S :- i --_~ ~ __., .._ . q~ . c~ ~- ~_ ,: i i i2' ~. ~_---- =' ~,~~~a ~~.~•~ a ----- -. a~_ ~ ~,. ° ''x v- m .i f _ - i ,-s g _~, ~ , ~ ~ ~~ ~ . - ~~ ~ ~ 1 ' N I fJ -~'-` r-=t-~ - -- ~ 4 " i 2 ( s 1 1 ~_S I ~ ~ ~ s. i ~ ~a ~ ~ ~~ ~ . i a i s~ `~~ ~ ~ :;ice I(1 ~ ~~ ~ ~~ ~ i it L ' ~ v ` ~ \ ~ I :, _. _ - - ,~ -+;t-----#-- ------ !>r-- -- -- ----------- t ~~ s ~ t ~ --Z - / J ~~~n~ Engineering Services ~01Eatt8loon~rwt«~FresWgr Bloomington, rM~naota llb4k0 L-e~~ ersvt>re~s Clvll En4lnsers Land. Plonnsras Phons: 888-0288 ~c ors ~~~ " ,,~ ~ BOOK I °~ PAGE ..~ 6632. STH,AVE. SO. J08 Np.~R ;,.4t5, SURVEY F4R~ Richfield H.R.A. -QESCR!®EO A5~ Lot 9, Block 2, D~cCUTCHAN'S PORTLAND AVE. PARK, City of Richfield, Hennepin County, I:~innesota and reserving easements TOP OF FOUNDATION = t,y5•/ of record. GARAGE FLOOR = BASEMENT FLOOR = ~ 27. o A•s~+~ iz c. canvc.. B.ac. SEWER SERVICE ELEV. = N//R p~ycHN-ARk: PROPOSED ELEVATIONS Q EXISTING ELEVATIONS SAN.MH.t~Lot~-~~G DRAINAGE DIRECTIONS --~ ~, G`7 Q~ I<Z,7,n~. El . It~91 DENOTES LOT CORNERS :o DENOTES OFFSET STAKT;, : • ~ ~ .: ~~. r•--- I ~~ 1 1 ---~ -+- ~"~ ~ ~ i ~' t. ~-. 1~ 1 4'~1~~ --~r-•-~ ., ~ 1.5' /79• S ~'~ Q, 4 SMV. M N. u Exis'clh-G ~ ~+ 11bP AIK, ; ~oMR'' EL. /35. /. ~ ~~ ~24.5~ _ ~ I - '~ 1!~: 1` 132.4 r ~ t I ~ _ b~o i , r F i- -. i ~ ~ 30.. ~~ ~ o a ~ ~ N I a ~ ~ ~ I ~ U , 5 Gf.vT, Q N u+ ~ O l~" ~ ~ ~ / 29.4 '~'' in'"~,"~-' i,~` ~ j/28.4'`r i~~ 12 8.76 E.st , ~..~~ 1'•~ .o I 1 - T ~ 1 ~I~ ~ EXiSTINrs I~ ~_; ~'..' 1~~135./ RU~~ I EX-STI (~ co1-JIC. ~ HOUSC ~;~ -/29.8 .! 1 -a' '/3~I 1 1 ~ 3 t i I) Q i z9.7 ~_ ~1.~ .~,ERZIFeI~®j~,,,Q,E~~RVEY . I benby certify that this survey,;+lan or report wos prepote0 by me or under my dirt supetv~sion and tool I om o duly Registered Land Surveyor ender the lows of the .Stole of Minnesoto. 5 Qots: ~ / i5 / e~ ,.,..~ Jt . L yen, Licens No. 14376