04-21-86 agenda~~? /
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 11
Agenda .April 21, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Development Concepts For The Graham Avenue
Development Site, LHN Redevelopment Project
Commissioners.:
An agenda item for the April 21, 1986 meeting is the
presentation. of two development concepts for the site located
adjacent to Lyndale Avenue between Circle Place and Auto Lane and
identified on .the attached map. The proposals are being
presented for discussion. It is recommended that the selection
of the most appropriate concept to pursue not be made until the
May 19th HRA meeting.
Following is a brief statement defining each development
concept and a series of considerations intended to facilitate a
discussion and evaluation of the two concepts. The developers
will present the concepts in detail at the meeting.
Introduction
One of the proposals submitted is for a commercial use while
the other is for a residential use. The commercial concept
envisions the vacation of Graham Avenue and the construction of
an approximate 8,000 s.f. one story commercial structure which
would link the existing Big Wheel and Trestman Music Stares.
Through the use of building materials, the three structures would
have a unified facade. One hundred forty-seven parking spaces ,
would be located adjacent to Lyndale Avenue and at the rear of
the site. The owners of the existing two buildings, Mr. Shaller
and Mr. Trestman, would be the owners and developers.
The housing concept envisions the construction of
approximately 200 units of rental housing for the elderly in a ;
highrise structure, with services and amenities to meet the needs
of the tenants. The owner/developer would be E. J. Plesko, and
Walker Management, Inc. would manage the development.
Presentation Process
Because of the significance of the two proposals to the
future of Richfield, the City Council, Planning Commission, Human
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Services Commission and Local Strategy on Aging Task Force
been invited to the meeting to hear the presentations and
participate in the discussions. An LHN area public meeting
also be scheduled.
have
will
Included with this letter is a market study and executive
summary of the study for the housing development. Walker
Management Inca prepared the study based on 1980 Census data and
a letter survey distributed late last year. This report will be
presented on April 21. The market study and executive summary
has been distributed to the City Council and the HRA and
chairpersons of each of the groups invited to the meeting. The.
members of each group received a copy of the executive summary.
Also included is an excerpt from the May, 1985 Community Survey
which addresses certain redevelopment priorities in the
community.
Considerations Regarding the Commercial Development Concept
.The commercial development would be in compliance with the
land use plan policy statement adopted in 1979. The original
1975 plan also envisioned the commercial use of this land, though
utilizing a different concept.
The proposed commercial development could proceed with
little additional cost to the HRA or City. A preliminary
estimate of additional cost would be $50,000 to $75,000, most of
which would be for utility relocation.
The commercial development and renovation may add market
value of approximately $618,000 (this is a preliminary. estimate
for. buildings and right-of-way which would become taxable).
Additional tax revenue generated would approximate $30,000 and
would be available in 1988, assuming project completion by
1/2/87. This value would result from a total expenditure of
approximately $300,000 to $325,000 by the HRA and City.
Approximately $250,000 has been expended to date to acquire and
manage the three HRA properties which are part of the site. The;
other expenditures are related primarily to previously mentioned:
utility relocation. No additional bond issue would be needed to:
provide for this development.
The probable sale value of the HRA land (three properties)
for commercial purposes is approximately $100,000. However,
negotiations would determine-the actual. sale price. Motor vehicle
traffic would not significantly increase with the proposed
commercial development. The intensity of the commercial
development would be in harmony with the other commercial uses in
the area. Additionally, the commercial development would
maintain and enhance the variety of commercial uses in the area.;
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Considerations Regarding the Housing Development Concept
The housing development would be consistent with the goal of
the HRA to provide. alternative forms of housing in the community.
Appropriate available sites for multi-unit housing in
Richfield are scarce. This site is ideally located to provide
housing for the elderly. It is close to transportation,
commercial support services and recreational facilities.
However, to provide a site for housing, it would be necessary to
displace several businesses.
Attached to this letter is a memorandum which concludes that
there are no identifiable problems which would cause additional
expenses to the City as a result of this housing project.
A Tax Increment bond .sale in the amount of $2.5 million to
$3.5 million would be necessary to provide the housing site.
Based on a preliminary analysis by Evensen-Dodge Inc. the
additional bonds would not impair the ability of the HRA to
retire all bonds by the year 2002 (the LHN status report recently
presented to the HRA projected a probable pay off of all bonds by
2002). However, the sale of bonds would have to be initiated and
completed swiftly. Rules permitting. a redevelopment bond sale
are in effect until September 1, 1986 or until Congress adopts a
law which would make a sale for this purpose unacceptable,
whichever occurs first.
In return for this expenditure, a housing project valued at
approximately $10 million would be constructed. Annual
incremental tax revenues of approximately $280,000 would result.
The full increment would be available in 1990 assuming
construction started in 1987 and was completed by January 2,
1989. A partial increment would be received in 1989
The probable sale value to a developer of the entire site on
which housing would. be constructed could be $300,000 or as high
as $600,000. However, negotiations would determine the actual
sale price. The site is approximately two acres in size and
would provide limited space for outdoor amenities for apartment
residents.
The housing would be occupied by some Richfield residents
and would also attract additional people from outside the
community. The population of the city would increase as pointed
out in the "Lukermann" report. (This is a report on elderly
housing submitted to the City Council and HRA in 1985). Some of
the homes vacated by the residents who become tenants of the
apartments would be occupied by younger families.
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The housing development would be compatible with the height
of adjoining residential structures, namely Lake Shore Drive and
Woodlake Point Condominiums. However, the existing commercial
frontage along Lyndale Avenue would be interrupted by a
residential land use.
A preliminary conclusion has been made that the additional
housing units would not create significant traffic problems.
However, it would be appropriate to request the developer to
undertake a traffic study by a professional consultant and
provide a report to staff well in advance of the May HRA meeting.
The report could provide a more specific response.
Management of the housing by Walker would provide tenants
with access to Walker's health care facilities at other
locations.
The market study by Walker Management Inc., indicates that
61% of the elderly in the study area, have incomes in excess of
$15,000 per year and that 35% have incomes in excess of $20,000
per year. These income levels could be augmented by the income
from the investment of the sale proceeds from their houses.
The probable rent for one bedroom units,. which would include
services such as security, partial meal costs and scheduled van
transportation, would fall within the $600-$700 range per
month. (Some of the one bedroom apartments at Market Plaza will
have rents less than those contemplated for this development.
Market Plaza will not ,be providing support services for tenants
and will not be marketing exclusively to the elderly, although
some elderly are expressing an interest in Market Plaza).
The use of Housing Revenue Bonds could help keep rents in
some of the units low. However, at this time, the availability
and feasibility of utilizing these bonds is not known. Bond
attorneys are now analyzing recent legislative actions which have
impacted the use of these bonds. Utilizing these bonds for this
project would be consistent with the Housing Plan adopted by the
HRA-and City Council in 1983.
Now, and for the foreseeable future, there appears to be no
funds available to provide units at a lower rent and also provide
the support services proposed.
A final point to consider for this development is whether it
would meet a need or desire of the community.
Staff will also be scheduling a meeting in early May to
which the property owners and tenants in the LHN area will be
invited. At the meeting, the two development concepts will be
presented for discussion.
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The HRA should select a development proposal for the site.
Because of the significance of these development proposals, it is
recommended that the groups in attendance provide comments to the
HRA through the Acting Executive Director. The comments should
be submitted to the Acting Executive Director by Monday, May 5th.
The HRA could then receive them prior to the May 19th meeting at
which time the most appropriate proposal could be selected.
Re ectfully submitted,
e, en evic
Acting Executive Dir ctor
SLD/eja
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April 21, 1986
SUBJECT: The Community Perceived Impact Of An Increasing Elderly
Population and a Concentration Of Retirement Housing
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Information was researched regarding the positive and negative impacts felt by
communities, resulting from an increasing elderly population in concentrations
of retirement housing. Contacted for information were several, highly
respected, agencies and organizations abreast of issues on aging, both locally
and nationally. Also contacted were consultants, planners and developers
specializing in the development of retirement housing. This memo is a summary
of the findings.
There appears to be a definite lack of written material on this subject. Over
the past decade, as the concern for housing for the elderly grew, most related
studies focused on the needs of the elderly. In the studies and articles
reviewed on retirement housing, and in conversations with developers and
consultants, most all mentions of community felt impacts were positive. No
negative impacts were identified as a direct result of concentrating retirement
housing in a community. There were, .however, some concerns expressed
regarding, one, initial objections to developments by the community, and two,
the need for long range planning in regards to the design of the building and
the changing needs for supportive services, such as housekeeping and in-house
medical care provided by .the management of a development.
:Listed below are the positive impacts identified, and the concerns
expressed. This list is compiled of information gathered from various
sources. Most of the following points were identified by more than one source.
Positives Impacts of Concentrating Retirement Housing In a Communit
-A retirement housing complex tends to have a stablizing effect
on neighborhoods.
-The elderly are not a transient population group. Their
move to retirement housing is usually their last.
-A high density retirement complex increases tax revenue in
a community, without additional use to the school system.
-Retirement housing creates jobs in the community.
-The value of a retirement housir~ development appreciably increases
over a period of years. Again, this generates more tax
.revenue.
-Tne elderly spend most of their expendable income within
the community.
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changing needs of residents. Most persons moving into
retirement musing see it a their last move. Although they may
be self-sufficient and active at the time of initial occupancy,
as residents age and become more fraile, their needs change and
services provided by the management, must change to meet these needs.
It is suggested that a qualified management company be chosen
to implement careful planning in the development stage of retirement
housing to prepare for changing future service demands.
Below is a list of agencies, organizations and individuals contacted to
provide information on this subject. As little written information was
available, tY~ best source of information proved to be personal conversations
with developers and consultants working with retirement housing. These
individuals provided insights gained from hands-on experience.
Agencies and Organizations Contacted
American Planning Association - Chicago, IL.
Center for Urban Policy Research -Rutgers University,
Center far Urban and Rural Affairs-.Minneapolis, M~1
Citizens League of MN - Minneapolis, MN
Metropolitan Council - St. Paul, MN
Minneapolis Community Development Agency - Minneapolis,
Minneapolis Planning Dept. - Minneapolis, MN
MN League of Cities - St. Paul, MN
MN State Board on Aging - Minneapolis, MN
MN State Demographers Office - St. Paul, MN
MN State Planning Agency - St. Paul, M[~
National League of Cities - Washington, D.C.
Urban Land Institute - Washington, D.C.
Individuals Contacted
Piscataway, NJ
MN
Jack Bowersox - Architect/Developer, Design Through Research, Inc., Mpls., MN-
-Specialists in Senior Housing Developments.
Ann Carlson - Assistant Manager, Lake Shore Drive Condominiums, Richfield
Maria DeWhite & Sally Hover - Consultants/Planners,
Gerontological Services, Inc.
Santa Monica, CA
-Specialist in Senior Housing Developments
Catherine Grey - Independent consultant, Mpls., -Formerly with Ebenezer
Sue Haller - Economic Development Dept., City of Redondo Beach, CA
-Currently undertaking the development of a multiple senior
housing project within their community