Loading...
07-15-85 agenda~ `T-/ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 41 Agenda July 15, 1986 Housing and Redevelopment Authority Commmissioners City of Richfield Subject: Market Plaza - Limited Partners Dear Commissioners: The attached July 3, 1985, communication from the Derrick Companies indicates that Derrick Companies intends to add one or more limited partners to the Market Plaza project, and that HRA approval is not required to do so. The writer reviewed this matter with Assistant City Attorney John Dean who concurs with the opinipn expressed by legal counsel to the Derrick Companies. This item is provided for informational purposes. Res ectfu ubmitted, John G. Cartwri ht Executive Director JCG/eja ~ 9-~- ~~ :~ -~- ', w • Minnea olis MN 55426 • 612 /546-2276 The Derrick Comparnes 1650 Shelard To er p , 3 July 1985 Mr. John Cartwright Executive Director RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY 6700 Portland Avenue South Richfield, Minnesota 55423 Subject: Market Plaza Limited Partners Dear John: As you know, we will be adding at least one and maybe more limited partners to accomplish financing on the Market Plaza Shopping Center and apartment building. We have decided to add limited partners because of the regulations that govern Industrial Development Revenue Bonds and Housing Revenue Bonds. Our legal counsel advises us that HRA approval is not necessary to add limited partners to the project. I would refer particularly to Developer's Agreement Section 9.1, Section 9.3(01), and Section 9.3(03). Even with our conclusion that we do not need the Housing and Redevelopment Authority's approval for an assignment of limited partners, as a courtesy to the Housing and Redevelopment Authority, I am letting you and the Authority know that we do intend to add limited partners for the purpose of financing. Should you have any questions, please do not hesitate to contact me. Sincerely, ~-~- ~'`~` l~ r Richard C. Krier, AICP Vice President Derrick Companies RCK:clb cc: MP3/b:jc.703 E. J. Plesko AND REDEVELOPMENT AUTHORITY ~~ HOUSING Office of Executive Director HRA Letter Na. 40 Agenda July 15, 1985 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Annual Disclosure Statement far the LHN Tax Increment District Dear Commissioners: Minnesota Statutes 273.74, Subdivision 5, requires that the annual disclosure statement for the LHN Tax Increment Financing Project be made available to the public an an annual basis. Compliance with state law was met by publishing the statement in the Richfield Sun on June 26th and prior to then the information was transmitted to the Richfield School Board, Hennepin County, Commissioner of Energy, Planning and Development, and the State Planning Agency. HRA Commissioners requested that this subject be placed an the July agenda so that the annual disclosure statements for fiscal year 1983 and fiscal year 1884 could be carefully reviewed by the full Commission. The highlights from these disclosure statements are: 1. Revenues: In 1984, revenues increased by $521,374 over 1983• Several factors contributed to this increase. The 1984 tax levy far the incrument district was $112.40 as compared to $101.28 in 1983. Aso, the Lakeshore Drive property became a full assessment in 1984. These changes resulted in a $304,792 increase in tax revenues in 1984. Other significant factors contributing to the increase in revenues included a $53,000 increase in Humboldt Credit in 1984 as listed in Intergovernmental Revenues, and a $108,691 increase in interest income in 1984 for Debt Service Investments. 2. Expenditures: Expenditures in 1884 increased by $1,002,134 in 1984. The single factor responsible far the increase was the Capital Project Expenditure for the purchase of the Godfathers Restaurant and related properties. You may also Hate that the HRA incurred certain costs in 1983 concerning the refunding of an outstanding band issue. No such casts were incurred in 1984. _2_ 7-~2 3. General Obligation Bonds: Perhaps the mast signi icant highlights of the annual disclosure statement relates to the sale of $5,750,000 of General Obligation Bands in 1984. That bond sale is also responsible for the increase in Fund Balance to $6,479,011 in 1984 from $2,277,944 in 1983• spectf y bmitted, John G. Ca Wright Executive Directo JGC/eja HOUSING AND REDEVELOPMENT AUTHORITY OF RICHIFIELD ANNUAL DISCLOSURE STATEMENT FOR TAX INCREMENT DISTRICT 250 For the Years Ended December 31, 1984 and 1983 Revenues: Taxes Intergovernmental Miscellaneous. revenues: Rents Interest earnings: Debt Service investments HRA increment investments Capitalized interest Miscellaneous Total Revenues - Expenditures: Bonds matured Matured interest and fiscal agent charges Amortize bond discount Project administration/capital outlay: Management properties Capital project expenditures Current cost of advance refunding Total Expenditures Excess .(Deficiency) of Revenues over Expenditures Other Financing Sources; Proceeds of General Obligation Bonds Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures Fund Balance -January 1 Fund Balance - December 31 FOR THE YEAR 1984 1984 $ 927,282 78,115 1,264 1983 $ 622,490 24,691 18,606 177,244 68,553 162,812 132,736 229,621 182,888 5,000 1,576,338 1,054,964 75,000 25,000 416,378 651,160 109,254 134,521 1,550 16,781 2.,523,139 847,907 447,818 3,125,321 2,123,187 (1,548,983) (1,068,223) 5,750,000 4,201,017 (1,068,223} 2,277,994 3,346,217 $6,479,011 $2,277,994 Tax-Increment Received and Expended for Year Ended December 31, 1984-$1,005,397 Tax Increment Received to Date for all Years Through December 31, 1984- $2,776,691 Original Assessed Value - $7,521 ,325~`'*Captured Assessed. Value - $9,208,603 Adjusted Base - $7,393,905 - Outstanding Bonded Indebtedness - December 31, 1984 Bonds issued August 1, 1977 - Principal - $4,425,000 ~' Interest $1,904,445 Bonds issued May 1, 1983 - Principal - $4,500,000 ~ Interest $3,909,349 Bonds issued August 1, 1984 - Principal - $5,750,000** Interest $7,030,975 First property acquired May, 1976 - First improvement constructed March, 1979. Annual Disclosure as Required by Minnesota. Statutes 273.74, Subdivision 5. HOUSING AND REDEVELOPMENT AUTHORITY -, ~ / Office of Executive Director HRA Letter No. 39 Agenda July 15, 1985 Housing and Redevelopment Authority Commissioners City of Richfield Subject: LHN Performance Status Report Dear Commissioners: This item has been on the agenda for the past few months, however, due to the length of the HRA meetings, it has been delayed. ,The staff will present the process being utilized for the preparation of the LHN Performance Status Report. The HRA has requested a report on the status of the LHN. The request was for a report on the overall status of the tax increment cash flow and its relationship to debt service needs, and, for a similar analysis of each individual bond issue. Staff has expanded the scope of the report and it will actually be a performance evaluation of the LHN project from its beginning in 1975• In addition to reporting on the status of tax increment cash flows and bond obligations, all expenditures, income and activity units will be reported upon in as much detail as possible. The format for the project has been established and is attached. The projects are listed on the first page of the attachment. The sub-project analysis is the last three pages of the attachment. The second step will be to consolidate all the sub-projects into a summary. The third step of the process will be to provide an analysis of the project on~ a bond issue by bond issue basis. That report is the second through fourth pages of the attachment. The auditing firm of Cummings, Keegan and Co. has recently been assisting in compiling the data.. They are the firm which conducts the annual HRA audit. Respectfu~lyl ,~}abmitted, Sohn G. Car Wright Executive Di etor JGC/eja LHN PROJECT ~JP~.ARY RE,°OR'IS ' DUE APRIL 24 1 985. (Om~" "PROJc~CTI0N5?" REPORTS: *Lht~t SUB-~PROJEC~ S'Jt`~fAR2ES -CP-705, 7050, 7052, 7053,. 7054, 7055, 7050', r~C.. Sc'~ARA;IE ~i ~.AR~S rr,R:. ~~L.~4N' S -StJPII~ll~RICA -V0-TEL~i IbUBLE -LIQUt~t STORE: . -LYNDALE GAt~UEN C.~'1~IT~' t ~ . -w00DI,~'~I~ V~T~CZE<<11~I~~S -~~f P.GAZ.4 (IOW ECfI'Fi HCND ' ISSUES) ' -CAA E~]1~5 -LAKE .~.riG'RE- C~RISTE -i~-~~1ART . -~,YrIDALE i~ARDWARE -N.AM AVEN(TE DEVEZOP!'~1T (C ~ -RI . _~ STtiT~" AGr'~I. ICY (RSil) (Nl CLiJ~ KFC} -PILLSBURY COCIAL C'~tc, V'I~ (~CLL~E ' , C ) -iiL~ (P! 1CLUOE F LRST ~~1ESZx."~N 3AM~ ) -i~.TC:~F ~ .~n'CPPES (~JOR~i ~.tW SCUZ~i) -AhZ.QUISfi ~' -OPDAL *LN~I PRO~T-r.,C~ .ARY (IO'LyL GF ~iB rRCJ ~~;C'T ~3~fiR.~BS ) *L~IDIVLUAL ~i~ID ISSt~c, SU'~A.RY (LY 'Lr~ ~W) L-B-IQ BOND 'ISSUE ' ~~RY /~" ~ ~`-~ _- PREPARED:. ---------------------- BOND ISSUE YEAE?: .-~ ---.-. .. BOND ISSUE AMCUNT: ~ -- ~. ... - SUB-PRCJEG'TS NICLUDED: - - .. ~ -.. .. . O'Ti~ER REVII~1tJE LAND SALE PRCC~DS $ 'TOTAL. (fiHER REVENUE -3--, EXPIIVDITURES LINE ITEM DEvORIPTICN AMCUNT~ _j_ IVCRE~PT A1~iALYSIS #6-y 1 ~ BASE Yr~AR VALUE ~ ~~ ~~ ~ ~ VALUE YF~AR PRICR TO I`i 'PROVE .. ~ $ $ VALUE AT CONSE'L.ETIOIV _ ~ ~_ ,_ a VALUE AT ~M) ISSUE '1~4M ~ ~ . $ ~ o SITE ASS~tELY DATA # ~' PARCH # OF RELOCATION . ACQUI~REp ~ USE: UvITS OI~FOSITIOiV OF S'LgUCT`URE.S L'Fi'tR ~-~ s StT1y~L~RY " OF ' ~ PROJECTS PREPARED: ............ ..... .. ~J£s-PROJECTS LVC'LUDED ~1 '~ S'Ui`~.ARY REPORT: .~.. -~- r'~Ei DI.tuRES LINE. Iii DE.~CRTPTION Ai~UNT T~T.~L, CDST PER ~U~1RE PuGfi ~ PER ~UARE ~LUr . # ~-6 ' L A 'V StJB-PROS~i ~i ~.~LRY FCR 'L'~iE PERIOD E:tVDT1tG 12/j1l84 PREPARED:. -- -...... ~. SIS&-PROJECT~~tAt`^:E : BCFtD REVE~NE . ECND LSSUE YF.~R: TGT~I, ANIOINT OF' ~~ L~SL'E : ~ ~JB-PROJECT ALLIICATION: $ RE'VEANE LAND- SALE PRCGEEDS : (DE'S'K) ~~ $; .~ -3- CE'~TEL.OPS`R. ~.~TEiVUES IDB' S ~ C1II-~: (DEFINE) . $ . . ~ TAX NC:~E'i`~SENT ANALYSIS ~ . . E~ AV ..~.,. , +/- ~ CT3ANGE ~ 975 flA~ YEAR VALL~.: $ $ ~ VALUE YEAR PRT.CR 'Z•D .IilPR~VE.. ~ $~ ~ ~ . VALIT~ Ai CQMF~GTICN ~~ ~ vAL~ AT EGND rSSUE . ~ ~ ~~ ~ ~ SITE ~~ LY DATA ;# OF P.~R • ~ ,# OF RELCCATTCN ~C'~~~ U~• CTNITS Di rOSIT~.CN CF ~^T,-cUCTG'RES ~ 5-/ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No.38 Agenda July 15, 1885 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Acquisition of Vacant Lot at 6941-45 Penn Ave. So. Dear Commissioners: On May 20, 1885, the HRA auth©rized the acquisition of the vacant lot at 6941-45 Penn Ave. South. The property was offered to the city by Hennepin County as the land was forfeited to the State of Minnesota for non-payment of property taxes. In early June, 1985, staff was notified by the County that the conditions of sale have changed from those previously represented. This letter discusses the situation in further detail and recommends an alternative course of action for the HRA to consider. Staff and legal counsel, since early 1885, have understood and have represented to the HRA that this property can be secured at a minimal cost, in effect "no fee". The property. could then be sold to a developer for construction of affordable housing. Staff has recommended condominium type units suitable for purchase by moderate income singles, young couples, or empty nestors. If the HRA paid nothing to acquire the site, then a developer could acquire the site for only the HRA costs incurred in analyzing the property (soil borings, title opinion, staff time, estimated at approximately $5,000 for development). The low land cost when passed on to a home purchaser helps to keep the housing affordable. However, two key conditions have recently been clarified by the County: 1) -The HRA must pay a "market value" for the site, a value as determined by county assessor staff; and, 2) The City Council must authorize the acquisition on behalf of the HRA. The county requirements and the rationale for the county policies concerning this matter are discussed in further detail in a letter from the county dated June 14, 1885, which is attached to this letter. The June 14th letter is a response to a letter from this writer dated June 7, 1985, which is also attached to this HRA letter. Thus, the HRA has acted tQ authorize acquisition on erroneous information provided by the county. -2- #5-.7~ The property had an estimated market value of approximately $51,000 as recently as January, 1985. The county indicated a willingness to re-evaluate this parcel. Staff ~, provided information that would assist the Hennepin County appraiser in the re-evaluation. Adjustments were considered for poor soil conditions, repeated sales transactions that have inflated the market value of the property, and the public purpose of affordable housing that the HRA is trying to achieve. The new estimated market value, the price the property may be sold to the HRA for, is $24,000. A revenue source for the $24,000 is needed. However, there are few sources, if any, available to fund this acquisition that do not present problems. If the developer paid for both the land and the HRA incurred costs, approximately $30,000, the expenditure would actually exceed market value and make it difficult to keep the units affordable. The useage of CDBG funding for the acquisition of the subject property was evaluated, and it was decided that there were significant disadvantages with this approach. If CDBG funds were used, more strict income guidelines would be in effect for home purchasers than if only MHFA funding were used. For example, a family of one or two that would purchase a Penn Avenue unit would have a maximum family income of $21,000 if CDBG funding were used. The maximum income for the same size family under the MHFA program would be $34,000. It is likely that households with CDBG eligible incomes this low would not be able to afford the anticipated monthly housing payments. Additionally, this would result in a much smaller "market" of potential home buyers far the Penn Avenue Development. This is of particular significance in that, according to MHFA guidelines, closing must occur on all housing units prior to July 31, 1986. .The infusion of CDBG funding into this project could seriously jeopardize the meeting of this deadline. Another source, the HRA Capital Fund could be utilized as a means of interim financing. The Capital Fund could then be reimbursed from the anticipated tax increment generated by the housing development. While a tax increment general obligation bond could reimburse the Fund quickly, it is suggested that the increment generated over an eight to ten year period be utilized until the acquisition costs, with interest, have been returned to the Fund. If the HRA concurs, a tax increment plan would be developed far review at the August meeting. The 1985 revised HRA budget would reflect this action and it has already been determined that funds are available for this purpose. The contacts that housing staff have made with residential developers concerning housing development at Penn Avenue, 66th Street and Rae Drive, and Colfax Avenue suggests that there is much greater interest in development opportunities that provide more units, such as the type that groups sites together. Therefore, it continues to be staffs' intent, at this time, to attempt to package the lots at 66th Street and Rae Drive with ~~~ ~ -3- the property at 6841-45 Penn Avenue (assuming, of course, that the HRA endorses the purchase of the Penn Avenue property). This should keep the interest of a greater number of developers in this project and should also result in additional economic advantages for project home buyers. It is recommended that the HRA authorize the acquisition of this parcel for $24,000, that acquisition funds be provided by the Capital Fund, that staff proceed in formulating a tax increment plan to provide for the return of monies expended and that the City Council be requested to authorize the acquisition of the property on behalf of the HRA. R~spectfully/~~b~tted , ,Idhn G . C~tw~_t ' Executive Director ,~'~~ JGC/eja ~ 5-y HRA RESOLUTION N0. Resolution Amending Conditions for Acquisition at 6941-45 Penn Avenue South WHEREAS, on May 20, 1985, the HRA adopted Resolution No. 263 which authorized the acquisition of 6941-45 Penn Avenue South, legally described as: Lot 10, Block 10 Waodlake Highland and Lot 13 in Block 10 of Tingdale Bras. Lincoln Hills Second Addition; and WHEREAS, this property has been tax forfeited to the State of Minnesota and can be conveyed to the HRA by Hennepin County; and - WHEREAS, Hennepin County has clarified some terms of the acquisition: -the property must be acquired for a "market value" rather than "no fee" -the City Council must authorize the acquisition on behalf of the HRA; and WHEREAS, the estimated market value, as determined by Hennepin County, is $24,000; and WHEREAS, the HRA has had the opportunity to re-evaluate this acquisition as authorized on May 20, 1985. NOW THEREFORE BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota: 1) That the HRA concurs in the value placed an the property by Hennepin County and considers it to be fair market value. 2) That the HRA authorizes the acquisition of the property located at 6941-45 Penn Ave. South for $24,000 subject to a determination of the marketability of the title by legal counsel. 3) That the acquisition funds be provided by the HRA Capital Fund. 4) That a tax increment plan be prepared to provide far the return of monies expended, and 5) That the Executive Director request the City Council to authorize the acquisition of the property vn behalf of the HRA. # 5-5 -2- Passed by the Housing and Redevelopment Authority of Richfield, Minnesota, this 15th day of July, 1985. Thomas E. Harms, Chairman ATTEST: Joan Helmberger, Secretary .DEPARTMENT OF PROPERTY TAX AND PlJBL1C RECORDS A607 Government Center ~,.~ Minneapofiis, .Minnesota 55487 0067 ~__ ,, NENNEPlN ;?~ ~. •. ~'YNES~ June 14, 1985 Mr. John S. Cartwright Executive Director Housing & Redevelopment Authority 6700 Portland Avenue Richfield, MN 55423 Dear Mr. Cartwright: Upon approval of resolution No. 81-3-125 in 1981, the Hennepin County Board established a comprehensive policy for sale or conveyance of tax forfeited land to governmental subdivisions. Subsequently, on August 10, 1982, resolution No. 82-$-612 modified the policy slightly to reflect the county's current position. In summary, the county requires that a city, school district, or other taxing district pay the fair market value of the. property if it desires to acquire.-the tax forfeited parcel. The county board policy allows conveyance without payment for certain specified public uses. These uses are enumerated in the third paragraph of the resolution as parks,. wetlands, flood control, trailways, open space, streets, roads', rights-of-way,. and public access." The designation of these uses may be arbitrary, but tax forfeited land is usually marginal land and most suitable for these types of usage.. When the tax forfeited land policy was being developed in 1981, a joint city-county committee was appointed to try to form a policy that would be acceptable for a1T parties concerned. Several cities indicated that they should not be discouraged from acquiring land uniquely suited for conservation, recreation, and related usage. Thus, the adopted policy waived payment in these cases. y ,~ . The rationale to charge the market. value for tax forfeited land is based on equity. Each of the taxing districts has lost the advalorem taxes which were cancelled at the time of forfeiture. The statutory formula for distribution of tax forfeited land sales attempts to reimburse the city,. county, and school district for this loss of tax revenue. After a deduction is made for administrative expense and unpaid special assessments on the parcels sold, the remaining tax forfeited land sale proceeds are distributed 40 percent to the county, 20 percent to the city or township, and 40 percent to the school district. To the extent that tax forfeited Tand is conveyed free of charge, the other units of government lose tax related revenue. HENNEPIN CC~~INTY an equal opportunity ¢mpioy¢r .June 14, 1985 Mr. John S. Cartwright Page 2 5.:7 Por the purpose of selling tax forfeited land, fair market value is determined by the county assessor staff. The property at 6941-45 Penn Avenue South has not yet been appraised, but I will ask the county assessor to expedite the appraisal. You will be notified promptly as soon as the appraisal is completed. Since January 1, 1983, the Hennepin County Board has appr.ov,ed the conveyance of 112 parcels of tax forfeited land to cities and other governmental subdivisions without monetary consideration. Except for a single conveyance to the Robbinsdale Housing and Redevelopment Authority, all of these parcels were conveyed for park, wetlands, open space, and other specified uses for which payment is not required. During this period of time, seven parcels of tax forfeited land. were sold at fair market. value to cities and housing and redevelopment authorities. It will take some time to .assemble the detailed infor~matian on these. transactions that•you requested. To meet your deadline for response, I am furnishing this general information at this time. If you still feel that the detail is required, call me at 348-56b8. I will hold your conveyance application pending receipt of further instructions. Sinc2rely, Dale G. Folstad, Director Property Tax.& Public. Records By W «.. Gerald W. Pahl, Manager Administrative. Support Division DGF:GWP:smt cc Commissioner Randy Johnson Commissioner John E. Denis Dennis Morris . ~ -~~ _,. .. _-" ~ , > June 7; 1985 N d' >•~ ~ in t~ ~ ^s Q~ ._ i ~ >•^~ ('~ +.. /~ U o n m 0 ~ ~ ~' !~ Q ^~ o Mr. Vernon T. Hoppe. Director of .Property Taxation Department of Property. Taxation. A606 - Government Center Mpls., NIlV 55487-0066 Subject: Acquisition of Tax Forfeited.Property at .6941-45 Penn Avenue South PIN #28-028-24-33-0159 Dear M.r, Hoppe, Enclosed is the completed application for conveyance of tax forfeited land to the Housing and Redevelopment .Authority (HRA) in and for- the City of Richfield. Included with the application is a certified resolution dated May 20, 1985, by which the acquisition is authorized by the HRA. ' I was recently disappointed to learn of a County administrative policy clarification that will now apparently require the HRA to pay a substantial amount of money for this property rather than being able to obtain it at minimal cost. Staff and legal counsel, since early 1985, have understood .and 'nave represented to r"~'.chfield policy makers that the cost for acquisition would be mni.mai in effect."no fee". Until June 5, 1985, both the. County offices of property taxation and assessment. supported this understanding.. I need. to prepare information for Richfield policy makers, which would explain the current situation and therefore the following is requested: ' 1. a copy of the written policy that requires the HRA to pay a market value for the property arks tk~ date that policy was enacted. 2. a written explanation of the County administrative interpretation of tl~ policy. TY~ rational for a market value transaction versus a transaction for minimal cost and how the value must be determined should be discussed. 3. an explanation of how the revenue genested by market rate sales to public agencies is utilized by tree County and whether all taxing jurisdictions cenefit from this revenue. 4. the identification of public agencies that have benefited from a minimal cost acquiition policy prior to June; 1985. telepi~one:86H-7521 (S12) an equal opportunity emp3oye~ ~z-9 It would be most helpful. to receive a response by June 17,. 1~$5 ].f pcSS7.b12. 'I`imie is Of the 2SSeriCe Sl,'1C2 the i-i1~' A~ S 185 affordable housing constructicn program is du2'to begin this month and this site is part of that program. Additionally, it should ~e noted that the HRA has cormitted considerable staff time, and expended approximately $1,000 for jaork by legal counsel and X3,500 for soil testing on th-s property. By June 20, 185, the i-tRA must commit to fees totaling approximately $10,000 for securir~ financing for tl~ anticipated affordable housing units to ~ constructed. Please direct your response to me. questions can be directed to Bruce ~V'ordquist, 869-7521 (ext. 534)• Your prompt attention is appreciated. Sincerely, John G. Cartwright Executive Director cc : ~1s~ . handy Johnson County Commissioner A-2400 government Center ~~Ipls . ~ t~N 33487 ~Ir. John E. Denis County Board Chairman A-2400 Goverrmient ;enter ~Ipls, ``IN 53487 Mr. ~,ennis 1`?Crr;s Delinquent ~ax xd rorfeited i_and Section Supervisor Departaert of _ ~ ^^e. ,- ~,axati:;n A5o5 Government Cen~=~ •~ ~ - ~~/- / HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 37 Agenda July 15, 1985 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Concept Proposal-for Rehabilitation of 6401-35 Lyndale, [LHN Area - Opdal Block] Dear Commissioners: Mr. Michael Oreck has recently purchased the above identified property, commonly known as the Opdal block. He is interested in undertaking a rehabilitation project. His concept envisions the following: Retention and expansion of the structure at the corner of 64th Street and Lyndale; Removal of shed structures at rear of large building; Installation of a pedestrian arcade to permit pedestrian to walk from the rear parking lot to the front of the building; A mansard roof; Bronze colored framing of the window and door openings; Repaving of the parking lot; Installation of fire supression sprinkling system; and, Upgrading of electrical, plumbing and heating systems. Mr. Oreck is seeking assistance to help finance this project which at this time has an estimated cost of $300,000 to $400,000. A tax-exempt IDRB is one option being evaluated while a second may involve use of the tax increment generated by the project. There are no State programs suitable for this activity. Mr. Oreck, his architect Bernard Herman, and his attorney Leonard Juster will be in attendance at the HRA meeting on Monday. They will present their concept. Staff is pleased with the concept. We would like an indication from the HRA as to their interest in pursuing this project. #y-~ -2- With your support, staff will pursue this project anal return to the HRA in the future if an acceptable detailed proposal can be formulated. Res ectfu i;y ubmitted, John G. Cartwr' ht City Manager JGC/eja HOUSING AND REDEVELOPMENT AUTHORITY ~~ Office of Executive Director HRA Letter No. 36 Agenda July 15, 1985 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Amendment to Contract For The Sale of Land For Private Development with Market Plaza Corp. Dear Commissioners: On May 14, 1884, the HRA, and City, entered into the above identified Contract with Market Plaza Corporation, Arkell Development Corporation and E. J. Plesko and Associates as co- developers for the development of the "Godfather Block". Several amendments to the Agreement were approved by the HRA on November 19, 1984. The purpose of this letter is to identify the construction project changes that have been made or need to be made or need to be made since the HRA approved exhibit H in November of 1984. These changes are in anticipation of Construction beginning in August, 1985. Provided in your backup are the appropriate pages Concerning Exhibit H dated November, 1984, and the revised July, 1985. Because of their impact on the November, 1984 approved PUD plan, the Planning Commission was asked to review and approv the modifications to Exhibit H. The Planning Commission approved the Changes at their special meeting of July g, 1985. The approved development plan when submitted to the HRA in November, 1984, required a land exchange between the developer and the owner (Strom) of the site occupied by Wendy's restaurant. The developer has been unable to successfully negotiate this 400 to 500 sq. ft. land exchange. Several of the Construction Changes are the result of the absence of the land exchange. The plan changes proposed include the following: (a) The Configuration of the buildings have been changed. The east end of the Commercial level has been angled to the south to keep the building from encroaching on the Wendy's property. The commercial and apartment buildings. have been squared off where passible to reduce Costs. The reconfiguration of the apartment structure has resulted in an additional 4 dwelling-units [Changing the total number of units from 162 to 166J. The 4 additional units are one bedroom units. (b) The gross floor area of the structure has increased from 316,440 square feet to 322,659 square feet. This is an increase of 6,219 square feet. The Commercial floor area - L - ~J~ increased 6,804 square feet and the garage area increased 7 square feet. The apartment floor area decreased by 592 square feet. (c) The building has been pivoted southward slightly to provide additional space in the delivery area an the northeast side of structure. With the additional space trucks in the delivery area will not obstruct the travelled roadway of 65th Street. The garage entrance in that area has also been eliminated so that the loading area will function better. (d) A small maintenance building has been added on the west side of the structure. (e) Interior commercial spaces have been reconfigured and the mall width has been reduced. (f) The parking layout has been reconfigured in the apartment guest parking area an the west end of the structure and in the commercial parking area adjacent to the. Wendy's property. Additional guest parking has been provided in the landscaped area under the canopy on the west end. Guest parking increases from 11 stalls to 13 stalls. The number of commercial parking stalls decreased from 2g5 to 2g1 because the previous proposal allowed for too few handicap parking stalls. The driveway connection between the Market Plaza parking lot and the Wendy's parking lot will not be construced. (g) The project sign (tribute) location has been shifted from the triangular shaped island in the parking lot to an area adjacent to the 66th Street and Lyndale Avenue intersection. This sign (tribute) may include a clock and other pedestrian amenities. The final design is still being perfected. To date, City staff has favored using public right-of-way for the tribute but has rejected City financial participation. Staff has reviewed the .proposed changes. They are acceptable. When applying city guidelines far parking there is a potential shortage in the number of parking stalls provided for the commercial uses in the development. The shortage has increased from 60 spaces to 93 because of the increased commercial square footage and the reduction of the number of parking stalls provided. However, the mixed use nature of the project reduces the amount of parking required an the site and the parking provided should adequately meet parking demand. Regarding the exterior facade material, there will be three different colors used an the walls: light gray brick, dark gray brick, and, white StUCCO or white brick. The dark gray brick will be at the bottom of the structure and will match the dark gray brick on the bottom of Woodlake Paint. The co-developer and his architect will be in attendance at the HRA meeting to respond to any questions regarding these changes. -3- ~3 An additional consideration for the HRA is related to _ Woodlake Point. The approved PUD Exhibit H called far a light brawn brick with gray brick in horizontal bands. The brick color has been changed to dark gray brick and red .brick. The dark gray brick is being placed an the first two levels of the building. It is rcommended that the HRA approve the modifications to Exhibit H as indicated on the attachments. ectfu y fitted, ,d~ohn G. Cartht Executive Director, JGC/eja q k Q `~ 1' ft~ 1 f~ ~ ~ ~Y F !j(' ~ ~ 0 ~ ~ ~~~ 'try-' ai;ss i 6. 't9 i ~ iii __ ,.~ `` i i, v ~\ \ \ \ , ,:. ;: \ ~ \ \ ,.' \ , \ ~ }_; i ~ ~ _ " fFt 77,~s ~ ~ ift ! liii FFE= i t 1F } s S i~ ~ }ii g~ z ; ~ q~ '~''~ I Z i 0 .: .:.. f t! tfft T; =~ s=~; =iii _ i -.. _ - ~ ~F = e ~? ~~~ ~Eji ~a ~ na3 a ~~ x ~~ ~~ ~~ h"~ ,; ~ \ ~~~ \ :~ r ~.~ ., t , - ~~ ~ ~~ ~~ ,~~ ~ ~~ ~% I ~ a s ~~ t ,,, -,~; ,; G +f _ 1, i. g ..,; / t ,. , ~~ ~ ~ ~ ~ ~ ~ i ~~ ~ 1~ \` 1' l j DF'' ~ ~~ ii ti ~ \. z ~s .. ~~_ . I• ,, ~ ur . H ' i T ~ ~' i ~ i j 3 i ~ ~ I I' '~~ ~\\ • I ~ 1 ~. ~ ' '~ 1 ,~ 3~ '~ ~ , ~ ~' ~' ` `'i,i ~ OBI i ~~' `` ' t 1 ~ ` F`•I y `\; ~~ ' _ ,UUU ' ' - , ~~ . _ ,-- ---, , T ~,~ ~ - - ~ ~7 a~'Q' =~:Ydd.;'~li$~ obi 93 ~~~~_ ~Oi~? y Y'. ~G .. ~_ ',~~~~~ _ Htn~9 J `~ 3 \ V ~~ ti '_O c. _ _ ~\ ~~wapO~j-' l '~' ` ~ N a '^^ ~7 i Y . <Z O 2 0 O~ On 3 z ; U ~ 4 ~~ ~~_ ~~~~ _ ~si$ aaa ~~~~~~i ~. 'i ~}7 S 1.~- ~~f ~7u'7~33 ~.~7~ __ __ _. 7.i C. ¢~ F Gn s~ Q ~1~4 I~ s 1 (~ ~~~ i~ ~ ~ ~~ ~~ I - .a_ I _ ~ s' ~ e .. i ... '-E .. ..._... _...__ ~~ig F ~ - ?s~i~ 1 T .,~ ~r ~- _.~,~ - ~ ~ ~~ ______ - ~ -. ---,---- i - - -- . --~-' ,~ ~ _ I ~ _ ~"-~ --:1; ~--- ___.... ~ """r'te'-- ~~" ~ ~ ~~~_ I ~~ ~, ,, ~ ~~----- ~ ~, i 19i ~ w.'t',~""' 1 I 1. .~.~•, ~ .. ~ ' ~ ) ~ 1 ~ ~ ~ ~~ -a ~? '` / ~. g ,~~. r/ i ~, ~ ~ ~ .; ~ l .i ` /,, . C,-,~ °° '~ ~ ~ ~~ __ _ _ __ dI- ~' ..~ ~~ ~ ~=_ .3 I ~ ~~ ~~ ~.1' a O J >I I ~, ! r..~ ~ Q `~~ .~ ,, ~ ; ,~ r =- e Q ~ .lz II. 2 F" ~ Q ~ W LL a; ~¢ .~ FF W i 3 a Q h ~. ~~- S Z d 6~ o- N ~~ j~ ~_ ~~ ''~ YN9`3 •y #~ YEai~ yg~is ~4~~ gi ~ ~~] {'3 g9 ! g i I _ _ ~ .. 4 . ~ ___. -' I - ~ .. ~~. ~ ~ ~. `,_ ~r._ 1 I _ . . .i ~ .'.~~ r ~~ ~ RI `t.l.+~ _ ___ r-..~iw _ ~., w _~ .. _ rl'. '~. __~ „;.; - -_ a ._ .,. ' ~ _ ~ C ~ _. .~ -- - I . /~ ~ ~ . : ~ ,~ ~, ~ I , / , . ., ~ ~, - . .. .. . I •. I ~ /~ / .. /``. ! l ' , / ~/ / ~ % i~ ~. ~ \ ~ , ~~ I 't . . . ~~ ~~ ~a Z 1 ``~ ~ ~~`~ .• o M a Q . ~ ~`~ a. €i?'S Y w-~ 4~ N U ~~ ui ~ z ,,,'. a ~ .~ ~) O O v. .~ W - ~I ~~ U' 5. S U ~ ~\, J~ .. .~ .x .: ~„>. ~ CI LI h< . ~{~ _ ., U ~'" i~f ~~ {~ss{ f ~~~ ~~~ a e :~ Q NO a~ az H~ ~a Yw GC = Q~ ~¢ ci N IY !- _a i ~ ~ o O N v y a a ,~ Y ~ ~ a o F' W q o ~ W t- ~ ~: 0 ~~ a ci ~_ --~-- __ ~~ ~; ~/./ I / ~~/ ~/~ ~. `_ j $_ I ''1 a ~ ~` ~~ jai sae CR fi ~b_ e_ 9 :aS;s7 F ?:151 i a i ~f ~ - 0~ ~, !~' - ~ ~I ~ i ~- ~. (~ . ~+.: `~ i ,, ',. --- ~. 3 ~~ ~1 ., ~, ~ ya+ --..1 ~' ~ Z - - ~ --~--- ~ a -y~ i o ~ ,. d o ~ 't ~. r a~ ; `,; . rr : , ~ ~, T :~ tti I !f ~ ~. ~ ~ ~ ~ I ~° ,•~ ~T*7T' ~`T1T"'~?' ~i~i i J 1 Qr. M/~wt Wy '_~ ~ I. ~-~-oi~- '-_ ~, -- ~.- - \ / /%%;, 2 ~ Q /. ~ ~ m ~y, ~~~` ~ U ~;~; ~ \~ U iii . , \, \ A\ U ~r--... ..- - f / %. V ~,.,,; . U l 1 2 ~~ ...: ~~,~ __ D 0 E a ~. ~. ~ x ~ ~ ~~"~ st 7 x r '~.-- ei<-. Y ~x~~r. s~:.YrA~ s~_ • z« ~ ~ai~u4 o0 2 - ~A- ^ ~ ~.._x~~ "" V;~ ~yFry~~'g~~xRe~. ~iR~~~ee 4~~RSee ~1 y ~_ _~ W .~~..=wL~o3 717=Se .C~}7~ed*. ~~ ~~ ~ ~ ~ . a ~~aea <..~aea ~„aea O W a a -: esa w ~ .a z• ~ ~W .T, :. ei ~ O N _~ ~~a ~;~ 7~~ E g~~ ' v Ets s c.~ °ig~s °a;$; i~•;~ ;`s~a~ a a ~E ;3. s~ . _~ ~~ ~' a e ~~ No N Q W aZ Y W sa V i ~ N Q 2Z JQ M~ J ~ ~ of H V N Q O y a W J a ~ ~ a a ~ ui ' __ __ ~ ~Q ?§ •412 ~~~3~ ~e~~~ t~sl~ ,~;~ ~ j~~ ~ ~ y'G - 9 13535 3 I~ A W h 0 ~n ~o ~,~ ~ N 5 d Z O P v A A Q l r 1 ~. 1 s 00 ~,~ .~ ~~ 0o a~i ~ i J~~~ ~ ~'~ o o l- a ~~ A ~ ~A w- __ . ^.P I~ I ~ !I .... I ~~ Q ..~ C~ W i LL1 ..l Z Q - -- ..~ ~ Q. ~ 0 ~. 0 _ _ -~ - 0 J LL r ~ . ~ 0 ~ .. ~ 'U ~Q ~ i Z _~ ~ ~ .. i ~~ ,~..,;~ - ~\ i1 ~ . U ;", , f_ U \': ~ { U n~ • -_ __ .. ~' :` x ~r- ~~ ~J~~ O u~ N s a ..~ .~_: ~t7 i !I~ 1 t pfp} i olte~ siiSS :6'r. t013i 3 t.t ~ E 'p •RS ~~ .f _ g ~~ ~~1 x ~ it aI~ ~ ;~' ~ ~ i ~ g~ ~ ' 9t5 , C~ aj~ ~ b t_ F - y^'Y ~~ ^ ~_ r y y ^ 1 .- ~ a J ~- O 0. P- /; _ _ _.- o ~ :. N L c ~~ u Q ~i2 ~~E ~ ti;`~ ! ^R^R 6 47iL~ w~ ~ `!~![ Il. i. .' $tt j ~ ~:~ t ti €~ O ~~ ~ ~~ ,.~ .... ~' a ': ~ 6 O ..~ ca. cu .~.~ N c C'1 d z : a~ o ~ ~~ s : ~~ Q V r V W s O•--Y ~ s i n ~ t{j ;:~ , ice! ~ ~~ ~c ?i3 ~ 1 C$Q? - ~ _ z3;i} A J R -F -V a' i . ' I 1 1 ~ ~ ! ' ' i. i l J 1 1 i 1111.. L..L L.L. l L_ 1 L.~ 11.i i t L.,.i:' ' ~. ~__ jai • ~; r `~ ~ ~~~ }., ; ' ~ _~:; ~ i !~~fi i '~ p O z ~k. _ Z O _ F a W W F W W F ~D Z G W ...~ W W W ~D r._. ._ .. __ ...__- ------ . __-- . ~~ saa t'i #t i s _~. qq i ` ~1. ~e i : 3 d~ Q4 2 a~ =i j( lE9~i 39.~ i ~;~~qvi ~~g~~~I .j'~iI? ~i ~ ;if,a S; ~ ¢~'_'.-~eai ~I~I~ii 63i~~3~ !98?is1 ZZ~r3~i ~~~1~1 a; 13~ 7 ?i~3S 3 0. ~' 0. Z Q F+ Q W ..i W F W W C F _. F ~O Z Q F Q 3 W ..l W F W W ~. F cn F ~O -~- ~ V ..~ f ! ii i~ T I~1+~1.i~ ~ 1 i ^'~s7i 7I ~'~~ ~ 7 i77~~ li -1.{.. 4-1 1~ -.-:-. ~~ ~.. Z P- p P- A V. O Q y erwr ~ ~~~.€~ -- ~i~ i \ _ ~ ~.~ e m t7~~v z s ~ ~ _ ;- , ~ ~ ~ • I~, ~ i ~ ~ 1~l' ~ ,-: ,_~. r a i ~~ iE, ~~ I:~ i - i 16~ :'~j3! l^.I W .x I ;S ~SS ~ i • i j < ~ - ~ ~?t `'~ ~ ~ `g ~• ~ z I o I = W ~u •v ~j ~ t ~ J .. .z ~ ~i ~ `~ x Z e :, No N az E„ ~ tit Y W Q LL Q U ~s .. ,,~._- _ ..~, li~~ ~ ~ ~ ! Z " g _ ~ f •' U/ ~i ~ I Q ~_ _~_ .i , ¢ ¢ C '~ ~ E. (~ a l;. ~Z N'~ J A J Y ' ~ C ~ i W J ^ i $ ~ c a ~ ~ ~~ I W Q • __...F..;..Y__ o ~ Isf a 4:a;_ J~~ .. . _ .. ~ t: . a n A a SE= r iii -~' i'e; ; F~¢ .~ biscj i L53i5 3 ~ - i F i i JI ~O I' ~ ~ ! ~ ~ c ~ V ~' r 4 ~ < ~4 1 I ~ m Z \ _ V ) > O 1 CC i~ O ~ a Z ~ ^~ Z ~~ W / _ ~ I »~ Z a~ C!J Z ,, ° . ~ ;,-,~ ~, ~ a a ~ ~ ~ U r ~ _ r .. y. _...... .~df ~~ . '' ~ ~`'' - - / N j `~ I _~ L ~ - ' ' / Z.. I 7~ Ir i! c M-,? a ~ ~ ~ I ~ ~ ~ ~p C ~ 1; -- - - - A ~ ..~, - ~~ . ,_ 4i~..! ~w4 R~ W ~~ d No d~ dz F„ ~ ~o Y ~+ LL Q C.1 Q __.r.r. C. Q I` ~~i, m 'F 4 Z U Z W h ~~ a i ~ o. ay ~~ V H 4 a ~o Y m y v ~ J W 3 o ~ ~ ~.~_ z J p' P ~Y '~ ~m .i y~ n Z ~~. `\~> ;~ `\ ~' _. S s ~ c ~ a ~¢.~, Z a ~ ,s: ~.~ x ass +i:i? FG.Z:3. -d-oz-~ ~.-~y _- _,~ i3fi3 3 1 i ~ ,~ ~, „ , Z :: :~1 ~ .1 T ~ r ~ ~i I~~ U 'v \ -- -- ~-- o ~ ~i O 3 Z ~ ~ ~ZQ ~~ -r x z a ~ d F °d C ~ Z 1 r _~~ ~ ~ _ ~ I~ -- - - -~ ~~ I ~ U C C ~~ } `~. ~ V V O ~.: f'n !"` o W d a No Q N J Z a? f W~ Y W a' LL. cQ V C b Q O y cs a . a .~ N a o J C y p ~ ~ > d p ~ ti7 ~~_ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director Housing and Redevelopment Authority Commissioners City of Richfield HRA Letter No.35 Agenda July 15, 1985 Subject: Public Hearing and Review of Plat and Townhouse Documents Relating To The Sale of City/HRA properties at g20 and g24 W. 66th. Street. Dear Commissioners: A notice of public hearing has been published for the July 15, 1985, HRA meeting tv review and authorize the sale of the townhouse type units at 920 and 924 W. 66th Street. This was the new construction project the Vo-Tech School was involved with during 1983 and 1984. The construction work has been completed. Townhouse documents which enable the units to be sold and managed as part of a "homeowners association" have been prepared by legal counsel. The City Council and Planning Commission have reviewed and approved the replotting of the Rae Drive Subdivision to accomodate townhouse units. The Planning Commission has found the disposition of these properties to be in conformance with the Comprehensive Plan. Eligible purchasers have been identified and are currently renting the units for which they have executed purchase agreements. This letter requests that, following the public hearing, the sale be authorized by the HRA. It is also requested that the HRA authorize execution of the final plat for 920 and 924 W. 66th Street and the townhouse documents. The documents have been prepared to ensure that 920 and 924 W. 66th Street and the adjacent City/HRA housing units within the 66th Street and Rae Drive development area will be properly managed. Background Information Cancernin~ the Sale 0 ree The Richfield HRA has recently applied far and secured mortgage financing for these two units through the Minnesota Housing Finance Agency (MHFA). This financing provides a 9.95 percent, 30-year mortgage, to first time homebuyers meeting certain program and income requirements. Up until the time this financing was secured, the best financing available from MHFA was 10.7 percent. The homeowners will benefit by paying approximately $30 less per month for the mortgage (principal and interest) because this lower interest financing was secured. .~ _ -2- The two identified purchasers that are renting the units at g20 and g24 W. 66th Street both meet the fallowing program and income requirements: -have a 3 to 6 member family to best utilize the 3 bedroom units; -are first time homebuyers or have not had an ownership interest in real property in the last three years; -have an income between $21,500 and 29,550, depending upon family size (this income is 80% of the metropolitan area median income - a Section 8 program income level) -have the ability to pay an initial sales price of $60,000 with $5,000 required as downpayment; and, -indicate a willingness to be subject to a second lien by the HRA for the difference between the initial sale price and actual value. (This lien will be discussed in detail later in this letter). Advertisements for the identified purchasers were published in the Richfield Sun and the Minneapolis Star & Tribune. Six applications were received and evaluated. Three applicants were ineligible because income requirements could not be met. One applicant was classified as an alternate as they currently awned a mobile home. Two applicants were found to be eligible. One family, with four members, previously rented a two bedroom duplex in south Minneapolis before moving tv Richfield. One family, with three members, previously rented a two bedroom apartment in Bloomington before moving to Richfield. These two applicants will be evaluated by the lender and MHFA for final eligibility and a mortgage commitment within the next few weeks. However, in order to receive the firm commitment far financing, a purchase agreement must be executed and the sale authorized by the HRA before the family can be determined eligible by the lender and MHFA. The purchase agreement is void and earnest money released in the event the HRA does not authorize the sale. Preliminary analysis suggests that bath families will be eligible far the financing. Data privacy requirements prevent release of any information that might further clarify the identity and background of the two families. The purchase agreement also discusses the HRA second lien placed on each of the two properties. After the $55,000 first mortgage lien to the lender and the $5,000 downpayment, the purchasers will be responsible far paying an additional $22,000 (far g20 W. 66th Street) or $22,900 (for g24 W. 66th St.). This amount is the difference between the $60,000 initial sales price and the FHA estimated value of the properties ($82,000 for 920 and $82,900 for 924). This second mortgage accrues no.interest and would not have to be paid by the purchasers until their townhouse unit is sold by them at some future time. This second lien concept, used several times by the HRA, helps keep the initial purchase price more affordable to moderate income families. Funds recovered when a second lien is repayed are -3- ~3 returned to the New Home Program far financing housing activities of the HRA. At closing, the HRA will pay 3 1/2 points for mortgage discounting (approximately $4,000 for the two units) and the costs of title insurance. These casts have been anticipated in the 1985 authorized budget. Background Information concerning the Replattin a vision A copy of the plat approved by the City Council and Planning Commission is attached with this letter. The new plat will be named Rae 2nd Addition. The HRA Chairman and Executive Director must execute the plat which accurately identifies the new townhouse and common lots at 920 and 924 W. 66th Street (where only 920 W. 66th Street previously existed) and identifies the preliminary rearrangement of 901/g03 Rae Drive, 910 W. 66th St. and 1016 W. 66th St in preparation for futher development. Lot 1, Block 1, identifies the land below the townhouse unit at 924 W. 66th Street. Lot 2, Black 1, identifies the land below the townhouse unit at 920 W. 66th Street. Lot 3, Black 1, identifies the finished common lot area surrounding and directly adjacent to lots 1 and 2. Lot 3, Block 1, Outlat A, and Outlot B would be under the ownership and management control of the Homeowners Association (of which the HRA would be a member and hold a majority vote until all remaining units are developed and sold). The use of Outlots A & B by the owners at 920 and 924 W. 66th Street would be resticted until such time that the total area is developed. This final and preliminary replotting permits the sale of g20/g24 W. 66th Street yet retains a townhouse ownership concept for the entire development area. At a later date, when development plans for the remaining lots are finalized, the property can then be replotted utilizing the newly approved Planned Unit Development (PUD) ordinance amendment "Planned Two Family Residential District". This new district would allow a maximum density of 10 dwelling units per acre and restrict development to no more than two unit dwellings. The Planning Commission and City Council have reviewed and approved the replotting of the Rae Subdivision and PUD ordinance amendment. Execution by the HRA of this initial replotting verifies HRA ownership of the property, permits the plat to be executed by the City Council and allows the plat to be filed at the Registrar of Titles Office of Hennepin County. This filing must be completed prior to closing of 920/924 W. 66th Street in late August. Background Information_concernin_g the Review of Townhouse Documents The final item to be considered is the review and execution of the documents developed to establish and maintain a non- -4- ~_L/ profit corporation, or "Homeowners Association", for the existing townhouses at 820/824 W. 66th Street and the anticipated townhouse development to take place at the adjoining properties (801/903 Rae Drive, 910 W. 66th Street and 1016 W. 66th Street, also known as outlots "A" and "B"). The set of townhouse documents includes: -Articles of Incorporation of Rae Homeowners Association, Inc. This document provides for the filing and identification of the Association with the State of Minnesota as a non-profit corporation. -By-haws of Rae Homeowners Association, Inc. This document identifies the administrative structure and process that the Association must fallow. -Declaration of Covenants, Conditions, Restrictions and Easements for Rae Twin Homes. This- document identifies the requirements that are tied to the land which the Association must abide by. Because of the length of each of these documents (9 pages, 20 pages, and 24 pages respectively), a summary of the major points of each document are attached far reference. As a member of the Association, the HRA will be responsible for contributing monthly owners association fees along with the new homeowners for each lot that is owned. It is estimated that the monthly fee would approximate $75 per month for each lot owned by the HRA. The HRA awns the two outlots and would contribute $150 monthly far approximately 2 to 3 months for maintenance and insurance responsibilities of the Association. Once a developer is selected, the developer would assume responsibility for these payments. The initial Board of Directors for the Association are Thomas Harms, John Cartwright, and Housing staff member Marcia Hale. The initial officers of the Association are President Thomas Harms, Vice President John Cartwright, Secretary Bruce Nordquist (staff), and Treasurer Marcia Hale (staff). It is recommended that the HRA: -Authorize the sale of 820 and 924 W. 66th St. according to the conditions contained in this letter and fallowing a public hearing. -Authorize the HRA Chairman and Executive Director to execute the plat of Rae 2nd Addition. -Authorize the HRA Chairman and Executive Director to execute the Articles of Incorporation, Bylaws, and Declaration of Covenants relevant to the Rae Drive Homeowners Association and the anticipated 66th Street and Rae Drive Development. -Authorize the HRA Chairman, Executive Director, and staff members Bruce Nordquist and Marcia Hale to act on behalf of the HRA in matters of the Homeowners Association. -5- Summary of Articles of Incorporation of Rae Homeowners Association, Inc. -purpose of the Association is to "provide far the maintenance, reservation and architectural control of property, and promote the health., safety and welfare of the residents". -members of Association must be owners of a unit in the development. -the Association will not provide monetary gain to its members, directors or officers. -there shall Class B. Class and entitled to or the designate or unsold units or unit. be two classes of voting members: class A and A members shall be owners of individual units one vote. Class B members would be the HRA 'd developer while owning any undeveloped lots and shall be entitled to five votes per lot -the Board of Directors shall be the HRA Executive Director, the Board Chairman and one HRD staff person (Marcia Hale). The affairs of the Association will be managed by the Association Board until the first annual meeting of the Association when a new board will be elected by the Association members ( i.e., by the homeowners that purchase completed units in the 66th Street and Rae Drive Development area). -the Association may be dissolved with the written approval of 2/3 of each class of membership. Summary of By-haws of ,Rae Homeowners Association, Inc. The Bylaws define: -requirements of Association meetings; annual meetings, special meetings, notice of meetings, order of business, quorum requirements, proxy requirements. -voting rights of members, as discussed in the Articles of Incorporation. -the structure of the Board of Directors; nomination and election process, number of directors and qualifications, powers, duties, terms of office, vacancies, compensation,and the procedure for removing directors. -the requirements of the Board of Director meetings; annual meeting, special meetings, native of meeting, order of budiness, quorum requirements, proxy requirements. -officers (President, Vice President, Secretary & Treasurer) and their duties. ~~~ -6- -appointment .cif members to an Architectural Control Committee and a Nominating Committee. The Architectural Control Committee is mare clearly defined in the Declaration of Covenants. -the requirements far keeping financial accounting records of the Association. -the requirements far paying annual and special assessments (i.e., "association fees") as required by the Association. Assessments are more clearly defined in the Declaration of Covenants. pectf~Xl~~~mitted, Jahn G . 'Cart~_ight Executive Directpr JGC/eja N ~' ~'~ ~~ ~~ u y' _. - -- _. _~ . ine r16M F1 u i. , N13°00'.OO;E U. ~ ~.-~----- 104.91 i •. p ..-. __i______>i C yi 5 ~._~ ---- ~ ~, ... __.-_------s---- yii ~, ~ ___ 3 yoa`ae 1 ...f '- ~ '~ (~( g' IYIB°LB 'E 1 f R g ~ .. Bb2eoo"B ula:~ I I 3 X2.33 SB4 C 1 °s V- a ~o ~ ~ i u N~ iro ~ - ~ I O , _ _ e ti~ D N F o~ j ~ v 8~8 V ~ 8 L rp -- :<: - - / :,, 20 .~Ir ~ ~~ ~ o ~ O n ~ m (~ o i i ~ , 33 k' C 1 ~ ~ ;.~. ` ~^ , ~o~, ~ .. Q ~ ~~_~ i . `LA __-'_-----_--___ a -_- 10.1.91 + ,1 ~'''~` l-I N r~~j A ?a H• „. _ UU ~ _._y - ~..-. a ' I~ O` ' - ., ~1 SQL _ .. _. -. 120.34 ,~ 1 ,b ~ ~~ -- - 5 18':28'00"w x40:'34 -- - -- ~.-/ - / a HRA RESOLUTION N0. Resolution Authorizing Sale of the Properties at g20 and 924 W. 66th Street, Execution of Rae 2nd Addition Plat dnd Rae Homeowners Association Documents WHEREAS, the Housing and Redevelopment Authority in and far the City of Richfield, Minnesota (hereafter referred to as the HRA) awns certain real properties located at g20 and g24 W. 66th Street and legally described as: Lot 2 and Lot 1, Block 1, Rae 2nd Addition, Hennepin County, respectively, and WHEREAS, South Hennepin Vocational Technical Center (Vo- Tech) has constructed a two-unit townhouse type structure an this parcel and because additional two unit structures are planned on property adjacent to this site; and WHEREAS, eligible purchasers for 920 and g24 W. 66th Street have been identified, are currently renting the units, and are likely to be eligible for a mortgage commitment fallowing review by a lender and the Minnesota Housing Finance Agency; and WHEREAS, a purchase agreement must be executed by the HRA; and WHEREAS, the HRA has held a public hearing, giving public notice, concerning the sale of the properties identified above; and WHEREAS, the Planning Commission has determined the sale to be in conformance with the Comprehensive Plan of the city; and WHEREAS, the condition of sale far g20 and g24 W. 66th Street include specific program and income requirements and an initial sales price of $60,000 for each unit and a second lien payable to the HRA of $22,000 fvr g20 W. 66th Street and $22,900 far 924 W. 66th Street; and WHEREAS, the properties at 920/924 W. 66th Street and the adjoining properties at 901/g03 Rae Drive, 910 W. 66th Street and 1016 W. 66th Street have been surveyed and platted as Rae 2nd Addition; and WHEREAS, this plat must be approved by the HRA in order to obtain approval by the City Council, filing of the plat at the Registrar of Titles of Hennepin County, and the sale of g20 and 924 W. 66th Street; and ~~ -2- WHEREAS, relevant documents far an ownership association have been developed to ensure the proper management and maintenance of the properties identified in the plat; and WHEREAS, these documents, an Articles of Incorporation and By-Laws of the Rae Homeowner Association, Inc. and Declaration of Covenants, Conditions, Restrictions and Easements far Rae Twin Homes have been reviewed by legal counsel and the HRA; and WHEREAS, these documents must be executed by the HRA and properly filed and the Board of Directors and Officers of the Association must take actions prior to the sale of g20 and 924 W. 66th Street. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota: 1. that the properties located at 920 and 92~ W. 66th Street may be sold in accordance with the conditions of sale; 2. that the HRA Chairman and Executive Director may execute the plat of Rae 2nd Addition; 3. that the HRA Chairman and Executive Director may execute the Articles of Incorporation of Rae Homeowners Association, Inc.; By-Laws of Rae Homeowners Associations, Inc.,; and Declaration of Covenants, Conditions, Restrictions, and Easements for Rae Twin Homes; and, 4. that the HRA Chairman, Executive Director and staff members, Bruce Nordquist and Marcia Hale may act as Directors and Officers of the Rae Homeowners Association vn behalf of the HRA. Passed by the Housing and Redevelopment Authority in and far the City of Richfield this 15th day of July, 1985. omas E. Harms, C airman ATTEST: Joan a erger, Secretary of Declaration of Covenants, Conditions, Restrictions, /~_~~ and Easements, yr Rae .Twin Homes1 0( -Property rights of owners and members of the Association are identified: pan owners right to enjoyment of common lot areas aright of the Association to regulate the use of common areas. *right of the Association to levy annual special assessments -Membership and voting rights in the Association, as mentioned in the Articles of Incorporation, are identified. -Discussion of Assessments; the personal obligation of each owner to pay; the purpose: maintenance and improvement of the private driveways, common areas, and living units, and payment of insurance premiums; the maximum annual assessment as a monthly rate; special assessments for capital improvements; dates of assessment, proper notice, penalties for nonpayment. -Architectural control: *"no exterior additions, removal or alterations (including changes in color or appearance) to any building an the property, additional fences or changes in existing fences, hedges, walls, walkways, and other structures shall be commenced, erected, or maintained" without all information being submitted and approved by the Board of Directors of the Association. *any restoration or repair of the common area or exterior of units after damage shall be performed substantially with original plans specifications. -The responsibilities of the Association for maintenance are identified: keep area in good, clean, attractive, and sanitary condition *snow plowing *maintenance and repair of unit exteriors (painting, caulking, roofing, gutters, windows, doors, decks) *mow, trim, water, and care for grass, trees plantings. -Party wall requirements between units; including sharing of repair and maintenance, damage if fire occurs or if the wall is exposed to the elements, method for arbitration of disputes. -general restrictions and obligations of owners: only residential uses allowed *no leasing or assignment for transient occupancy ~-// ono obnoxious or offensive activity *no unsightly uses (no hanging of laundry, accumulation of rubbish) ono animals except domestic household pets that are not or do not become obnoxious proper containment of garbage and refuse, screened from public view *no outside storage of recreational vehicles and equipment without approval of the Board of Directors (with sole discretion) -Protection for the lender and HRA holding first and second mortgages: *notification of lien holders when a casualty loss or encumbance occurs on the property *right to retain professional management the Association and Owners maynot (except by 2/3 vote of lien holders): -terminate the legal status of the project -sell common areas -amend major provisions of the townhouse documents -change or waive the regulations or enforcement of the architectural design and exterior appearance of units and the maintenance there of. the right to examine the books and records of the Association the right to attend meetings of the Association -Insurance requirements for the common area, and repair and replacement of property are identified. a-ia Summary of By-Laws of Rae Homeowners Association, Inc. The Bylaws define: -requirements of Association meetings; annual meetings, special meetings, notice of meetings, order of business, quorum requirements, proxy requirements. -voting rights of members, as discussed in the Articles of Incorporation. -the structure of the Board of Directors; nomination and election process, number of directors and qualifications, powers, duties, terms of office, vacancies, compensation, and the procedure for removing directors. -the requirements of the Board of Director meetings; annual meeting, special meetings, notice of meeting, order of business, quorum requirements, proxy requirements. -Officers (President, Vice-President, Secretary & Treasurer) and their duties. -appointment of members to an Architectural Control Committee and a Nominating Committee. The Architectural Control committee is more clearly defined in the Declaration of Covenants. -the requirements for keeping financial accounting records of the Association. -the requirements for paying annual and special assessments (i.e., "association fees") as required by the Association. Assessments are mare clearly defined in the Declaration of Covenants. a3 es of Incorporation of Association. Inc. -purpose of the Association is to "provide far the maintenance, preservation and architectural control of property, and promote the health, safety and welfare of the residents". -members of the Association must be owners of a unit in the development or owners of Outlots (the HRA and/or developer) -the Association will not provide monetary gain to its members, directors or officers. -there shall be two classes of voting members: class A and class B. Class A members shall be owners of individual units and entitled to one vote. Class B members would be the HRA or the designated developer while awning any undeveloped lots or unsold units and shall be entitled to five votes per lot or unit. -the Board of Directors shall be the HRA Executive Director, the Board Chairman and one HRD staff person (Marcia Hale). The affairs of the Association will be managed by the Association Board until the first annual meeting of the Association when a new board will be elected by the Association members (i.e., by the homeowners that purchase completed units in the 66th Street and Rae Drive Development area). -the Association may be dissolved with the written approval of 2/3 of each class of membership.