06-15-87 agendaHOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No . 1 ~6
June 15, 1987
Issue Statement:
Authorization to acquire 7645 Garfield and 7644 Harriet
and to convey title to 7644, 7645 Garfield and 7644 Harriet
Avenues to the city at the appropriate time.
Background:
On May 18, 1987, the HRA established just compensation and
authorized the purchase of 7644 and 7645 Garfield and 7644
Harriet Avenue. This site assembly will permit the installation
of public improvements east of Lyndale Avenue in accordance with
the approved ILN Plan.
Staff was able to negotiate a purchase agreement for each of the
three properties within a one week period. The property located
at 7644 Garfield Avenue will be acquired at the value established
by the HRA on May 18th, $72,000. A special assessment in the
amount of $479 for a past street improvement will be paid by the
HRA.
The owners of 7645 Garfield Avenue and 7644 Harriet Avenue have
agreed to sell their property to the HRA at a price slightly
above-that set by the HRA on May 18. There are no pending or
levied special assessments against either of these properties.
5/18 HRA Negotiated
Address Authorization Purchase Price ~ Diff.
7645 Garfield $75,500 $77,000 2$
7644 Harriet 68,000 70,000 3~
With HRA authorization, the purchase of these three properties
will take place in July. In accordance with past practices, the
occupants of these properties will not pay any rent to the HRA
for the month in which the closing is scheduled, in this case,
July. Beginning with August, rent will be due the HRA at the
rate of approximately $600 per month for each property.
Our relocation consultant is working with the tenants and owners.
A ninety day notice requiring that each of the properties be
vacated by September 8, 1987 was recently delivered to each
occupant.
Staff has evaluated the disposition of the three houses. The
installation of the loop street cannot begin until the houses are
removed. The asphalt should be installed by the end of October.
Thus, for the HRA to rely on house movers to remove the
structures in a timely fashion would be risky. The City Council
will be contracting for construction for the right-of-way
improvements. A provision in the contract will give the
contractor the option of removing the structures from the site or
demolishing them.
Staff Recommendation:
It is recommended that the HRA adopt the attached resolution
which authorizes the purchase of 7645 Garfield and 7644 Harriet
Avenue and authorizes the conveyance of fee title to the city at
the appropriate time.
Basis of Recommendation:
1. These properties have been identified for acquisition in the
approved Plan..
2. The purchase prices are well within acceptable standards
of variance from the original offering price.
3. The HRA is purchasing the properties to make it possible for
the city to install the improvements. Thus conveyance of
title to the city is appropriate.
Alternative Recommendation:
1. Not authorize purchase at values indicated.
Decision Mode:
To complete loop street construction before the onset of cold
weather, the property should be purchased now.
Respectfully submitted,
;;,
Ja ~ D. Prosser
City Manager
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE
OF REAL PROPERTY
AT 7645 GARFIELD AND 7644 HARRIET AVENUES
WHEREAS, the Richfield Housing and Redevelopment Authority
(HRA) desires to purchase certain real property pursuant to and
in furtherance of the ILN Redevelopment Project (Project)
heretofore adopted by the City of Richfield (City) and the HRA,
said real properties being described as follows:
Lot 9, Block 6,Sunset Terrace Addn. Henn. Cty., MN(7645 Garfield)
Lot 8, Block 6,Sunset Terrace Addn. Henn. Cty., MN (7644 Harriet)
WHEREAS, the HRA in and for the City of Richfield, is
authorized by Minnesota Statutes Section 462.445 to acquire real
property within its area of operation; and
~j~gERF.AS~ the HRA has caused appraisals of the subject
properties to be made and has carefully considered such
appraisals; and
WHEREAS, the HRA has instructed the Executive Director to
commence negotiations for the purchase of the real property
described above; and
WHEREAS, the negotiations for the above described real
property has resulted in the execution of a purchase agreement by
the sellers; and
WHEREAS, the funds are available from the proceeds of sale
of the Temporary Redevelopment Bonds, Series 1985; and
WHEREAS, the HRA is acquiring 7644 and-7645 Garfield and
7644 Harriet Avenue on behalf of the City to permit the
installation of right-of-way improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE RICHFIELD HOUSING AND
REDEVELOPMENT AUTHORITY:
1. The Executive Director is directed to execute the purchase
agreements as follows:
7645 Garfield Avenue: $77,000
7644 Harriet Avenue: $70,000
2. That the conveyance of ~itle to 7644 and 7645 Garfield and
7644 Harriet Avenues to the City at the appropriate time is
hereby authorized.
Passed by the Housing and Redevelopment Authority this 18th
day of May, 1987.
Thomas E. Harms, Chairman
ATTEST:
Joan Helmberger, Secretary