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09-17-84 agendaHOUSING AND REDEVELOPMENT AUTHORLTY Office of Executive Director HRA Letter No. 46 Agenda Sept. 17, 1984 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Market Plaza Site, Smoke Drill and Final Burn 6540 Lyndale Building (Farmer Hub Stationers) Dear Commissioners: Pat Caughlin, the Assistant Fire Chief would like to utilize the building at 6540 Lyndale Avenue for a training exercise far fire personnel. He has examined several buildings which are vacant and owned by the HRA and feels this is the mast - desirable building. The exercise would possibly involve personnel from other communities. Dennis Kraft, Director of Community Development and Pat Coughlin will be present at the Monday evening HRA meeting to discuss item. In addition, a memorandum explaining the purpose and need for the training exercise will be presented to HRA Commissioners as a basis for the discussion. Respectfu~y ubmitted, ~.=%~~ / ohn G. 'Ca twright~ , ~~ity Manage JGC/eja ~o~ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 45 Agenda of Sept. 17, 1984 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Scattered Site Program Acquisitions Acquiring 7245 Humboldt Ave. S.o. and 6820-12th Avenue Dear Commissioners: On August 20, 1984, the HRA authorized negotiations to acquire two. of five scattered site properties that have been voluntarily offered for sale. Negotiations by staff have resulted in the property owners agreeing to sell at a purchase price of $46,000 for 7245 Humboldt- Avenue and $39,000 for 6820-12th Avenue. This letter requests the HRA to authorize the acquisitions. The acquisition priority and a discussion of the five properties was provided to the HRA in August. The order far proceeding with negotiations, the appraised market value and the Hennepin County Assessor's Estimated Market Value follows: Site Appraised Market Value Assessor's Estimated Market Value 7245 Humboldt 6820-12th 7520 Bryant 7521 Dupont 7508 Colfax $45,000 $42,000 $45,000 $38,000 $43,000 $48,800 $38,900 $39,800 $33,400 $34,100 This order was determined after considering a number of factors in addition to value (i.e., lot size, housing condition, tenancy., need for variances to redevelop, and need. to pay relocation benefits). The HRA authorized staff to proceed in negotiating acquisition prices not to exceed the appraised market values.. The Planning Commission has determined these acquisitions for single family housing- purposes to be in conformance with the Comprehensive Plan. The property at 7245 Humboldt appears to be in the poorest condition. (In 1982 Hennepin County Vo-Tech evaluated the structure and found it to be unsuitable for a rehabilitation project). The site- is owner occupied so that relocation benefits would be waived. No variances are needed to redevelop the approximate 10,000 sq. ft. lot. However, the negotiated HRA Letter No. 45 -2- price of $46,000 exceeds the appraised market value. Staff believes the increase of approximately 3 percent.. above the $45,000 appraised market value is warranted because: - the house is in a poor condition and could not be sufficiently improved to make it a decent and marketable dwelling if the HRA chose not to redevelop the site. - the larger than average square footage of the parcel makes it easier for Vo-Tech to relocate and place a house on the site (possibly the structure at 1016 West 66th Street). - relocation expenses are not incurred as would be true at 7520 Bryant Ave, 7521 Dupont Avenue, and 7508 Colfax Avenue because they are tenant occupied. - The Assessors estimated market value of $48,800, on which property, taxes have been based, actually exceeds the appraised market value of $45,000; indicating. a difference of opinion about the value of this property. - The .price is less than the $49,200 the property owner was seeking initially. - The property has incurred a maximum amount of debt to value to prevent future improvements by the owner. The property at 6820-12th, having a structure with 40b sq. ft. of living space, is the smallest building that was offered. There is no separate bedroom so that the structure more closely approximates an "efficiency" apartment. Since the property is owner occupied, relocation benefits would be waived. The parcel is Large. enough, totaling 7,735 sq. ft., to facilitate relocation of a dwelling to the site. No variance is required far redevelopment. The structure at g10 W. 66th Street could be relocated to this site and rehabilitated. The negotiated price is $39,000. The appraised market value was $42,000. Both .properties would be acquired, if authorized, with approximately $100,000 in Year IX (1883-84) and Year X (1984- 85). CDBG funds budgeted far acquisition, tenant relocation payments, and clearance activities. The Hennepin County Vo-Tech School would be responsible far - the relocation and rehabilitation of structures to produce a moderate income family housing opportunity in 1985 and 1986. Since Vo-Tech is still working on 920-924 West 66th Street, it is anticipated that the next project will begin in the first half of 1985• Proceeding with acquisition at this time is important since CDBG funds must be-spent in a timely manner prior to the end of 1984. y HRA Letter No. 45 -3- It is recommended that the HRA adopt the .resolution authorizing the acquisition of 7245 Humboldt Avenue for $4b,000 and 6820-12th Avenue for $39,000. pectfu~llx~ ~Cybmitted , ohn G. ar Wright Executive Director JGC/eja HRA RESOLUTION N0. Resolution Authorizing the. Acquisition of 6820--12th Avenue and 72.45 Humboldt Avenue WHEREAS, the Housing and Redevelopment Authority (HRA) in and for the City of Richfield acquires property, relocates occupants and rehabilitates structures for residential purposes; and WHEREAS, the HRA desires to acquire the real property at 6820-12th Avenue South, legally described as: North 1/2 of Lot 3, Baumgartner's 1st addition, Hennepin County; and WHEREAS, the HRA desires to acquire the real property at 7245 Humboldt Avenue South, legally described as; Lots. 10 & 11, Block 5 Lrwin Shores Addition, Hennepin County; and WHEREAS, the owner of 6820-12th Avenue, Sandra Jean Peterson has volunteered to sell her property for $38,000; and WHEREAS, the owners of 7245 Humboldt Avenue South, Kathleen and John Clarke, Jr., .have volunteered to sell their property for $46,000; 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 6820-12th Avenue for $39,000 and 7245 Humboldt Avenue for $46,000 utilizing CDBG funds. _ Passed by the Housing and Redevelopment Authority in and far the City of Richfield this 17th day of September, 1984. Thomas E. Harms, Chairman ATTEST: Joan Helmberger, Secretary % - . /' ., _ C I T Y O F R I C H F I E L D M I N N E S 0 T A 4 C O M M U N L'T Y D E V E L O P M E N T D E. P A R T M E N T Item- ~~12 Information Letter ~~25 Agenda of August 28, 1984 Planning Commission City of Richfield. Subject: Acquisition and disposition of property for the ..scattered site ho-using program. Dear- Commissioners: In accordance with state statutes the Richfield Housing and. Redevelopment Authority has requested that the Planning Commission review the possible acquisition ,and. disposition of five properties within the community for consistency with.. the. comprehensive plan. The five properties being. considered by the HRA include in order of priority 7245 Humboldt Avenue South,. 682.0`- 12th Avenue South, 752Q Bryant. Avenue South,. 7521 Dupont Avenue South and ?50.8. Colfax Avenue South. Lt is the intent of thee-HRA to acquire and-clear two of the sites to provide riew'or rehabi7.tated single family dwellings for low an~i moderate income families. Sufficient funds- exist only to acquire twa properties and the properties which will actually be acquired wl be dependent upon negotiations. Because the. actual two properties to be acquired have not been identified at this time, the.HRA has requested that. the- Planning- Commission review all five: properties for consistency. Staff has reviewed the potential acquisition .and disposition of .the five properties and 'have found the acquisition and disposition of any two of the five properties would be consistent with the city's comprehensive plan.. The comprehensive plan indicates that all of the sites should be developed as sing e family dwellings.. The proposed acquisition and disposition would also be consistent with a number of comprehensive plan policies including policies to provide additional housing opportunities for low and moderate income families,. to replace or upgrade substandard. dwellings and to replace back of the lot garage homes. It should be .pointed. out that while the proposed acquisition and disposition would be consistent with the city's compre- hensive plan, four of the five lots do not meet current city standards for minimum lot area. Therefore, prior to any development of new housing on these lots or to move- existing houses onto-the lots for rehabilitation through the Vo-Tech program, a variance would be necessary to -the minimum area lot requirements of the zoning ordinance. -2- t It is recommended that the Planning Commission find the acquisition and disposition of the properties diseribed above for single family residential use to be consistent with the city's comprehensive plan by passing the attached resolution. 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M ..x..... aai. w ......~ r.•s .. ~~ .....~ ... ~, ~~ ..~: . ~_.., ~.., .....~ .. _.....~ ..... +....~ .~ ,....... R~•y~ K .......~ .~> .. ...w, ,_ .~ „ .~ ~~ >.., ...,.. ,..... o,~.... ...~ r. ~t ,..... .~ ..t n...+ JY[•d .•l A~ ~ s...w a • «• ~~ a.. «. ~..~ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 44 Agenda of Sept. 17, 1984 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Authorization to Execute Agreement for Woodlake Point Condominium Sales Office. Dear Commissioners: At the June 18th HRA meeting, the Executive Director reported that the Woodlake Point sales staff was interested in using the property at 738 West 66th Street far a sales office. Attached to .this letter is a copy of the Agreement far the use of .the property. The site plan noted as Exhibit A will be available Monday evening for purusal. HRA authorization for execution of the Agreement is requested. The Agreement is necessary because of the desire of the developers to utilize the property while still under the ownership of the HRA. It authorizes use of the property for a period of 2 years. The office may operate from 738 West 66th Street which is the existing building or from a new structure on the same parcel. Presently, the sales staff is utilizing the building at 738 West 66th Street and plans by October 1st to be operating from a custom built double-wide trailer.. The existing. structure known as 738 would be removed. The Agreement includes other provisions as well. The HRA is held harmless from any actions arising out of the use of the property by the developer. Also, if the developer does not remove the double side trailer an or before July 1, 1986, it becomes the property of the HRA. It is recommended that the HRA authorize the Chairman and Executive Director to execute .the Agreement. Re eetfull fitted, - ~ifi G~~~`' ohn G. art right Executive Director JCG/eja