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07-18-83 agendaHOUSIr1G AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 22 Agenda July 18, 1983 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Proposed vo-Tech Rehabilitation Project Within the Area Bounded by Rae Drive, 66th Street and Coach-Homes At the June 30, 1983 meeting, the HRA discussed the above described area and what actions might be undertaken to retain its residential character. This matter arose as a result of the proposed rezoning of the property at the most easterly portion of this area to accommodate a dental office. The staff's preliminary evaluation of this matter determined that if it was deemed desirable to redevelop the entire block, the cost of acquisition and relocation would likely necessitate a townhouse development with units that would have higher prices and perhaps would not be saleable. As a result, a significant subsidy would likely be needed to make this type of project mar- ketable. The staff has continued to evaluate this matter based on comments. made during the discussion and the direction of the HRA. As a result, the. staff has developed a proposal for an alternative project for a portion of the block. The project would provide owner occupied housing compatible with the area, affordable to moderate income families and Vo-Tech projects for the next three school years. The project proposes that the privately owned, tenant occupied house at 1016 West 66th Street, and the vacant house at 920 West 66th Street (presently owned by Hennepin County) be acquired by the HRA. A third structure would be relocated to this property, and over a three-year period the South Hennepin Vo-Tech School would produce three energy efficient duplexes, one each school year. By resiting the two existing structures, space for a third structure can be provided and adequate and safe access for auto- mobiles can be developed. The staff has determined that a drive- way easement at the rear of the 910 West 66th Street property (proposed for rezoning as a dentist's office) would be useful, and an easement is now being sought from the owner. The result of this project, by 19$6, would be six units of owner occupied housing for owner occupied families: The density_of the project HRA Letter No. 22 -2- July 18, 1983 once completed, would be approximately eight units per acre. The owners of 1016 and 920 West 66th Street have already in- dicated an interest in discussing a possible sale to the HRA through the voluntary acquisition program. Tenants in the occupied residence would be eligible for relocation benefits. The major portion of the funds needed to acquire the prop- erty for the project are already budgeted through the Scattered Site Acquisition Program. Year IX Community Development Block Grant Funds totalling $114,200 would be available for acquisition, relocation, and site clearance for this development. It appears that additional funds may be required for the project, since the estimated market value for 1..01'6 West 66th Street is $66,200, sale price for the vacant 920 West 66th Street property is approxi- mately $50,000, and the tenants at 1016 West 66th Street would be eligible for approximately $4,500 in relocation benefits, a total of $120,700. There would also be costs associated with providing the third structure on the property. Further, there would likely be additional expenses related to site planning,-site access, sanitary sewer and municipal water. The additional funds necessary to complete the project carp be secured. from one or more of-the following sources: -excess Hennepin County CDBG funds for which communities are now competing; -Year X CDBG funds anticipated to be available in June, 1984; -HRA general fund It is expected. that the proceeds of sales of housing units would cover the rehabilitation expense incurred by Vo-Tech School. If funding is not available for the entire project as described above, it could be reduced in scale tc make it feasible. It is expected that the first duplex type unit could be under construction as early as November, 1983 under this proposal. The projects key steps include the following: 1. Negotiation for acquisition of 1016 and 920 West 66th Street 2. Site planning 3. Determining the source and amount of additional funding 4. Planning Commission determination that the project is consistent with the comprehensive plan 5. City Council approval of a special use permit to allow duplexes on arterial streets in residential zones 6. HRA authorization to acquire the property 7. Approval of a contract with Vo-Tech School for the 1983/84 phase of the project. HRA Letter D1o. 22 -3~ July 18, 1983 It is the staff's opinion that the proposed comprehensive project as described above is valuable to the city because it increases affordable housing opportunities in the city for moder- ate income families, and further, insures that compatible resi- dential housing remains in this block (the comprehensive. plan in- dicates that the proposed sites should be medium density buffer area which permits multiple family. duplexes and single family dwellings.) Also, the project would produce economies of scale in program administration since the. staff would not likely. have to pursue additional property acquisition for Vo-Tech projects until 1986. Further, the project commits CDBG funds for housing purposes, in a timely manner, and these funds have already been programmed for this type of scattered site project.' Upon authorization by the HRA, the staff will initiate nego- tiations for the purchase of the property involved in the project and further analyze funding sources for the project and various site plan alternatives.. At such time as costs are more firmly established and a potential funding source is more thoroughly analyzed,. additional information will be presented to the HRA. This will most likely occur at the September, 1983 HRA meeting. Based on the foregoing information, it is recommended that the HRA authorize staff to commence negotiations for the property at 1016 West 66th Street and 920 West 66th Street and prepare a detailed development proposal for further consideration. Respectfully submitted i '`ass ~ `~`~• ~ h.~. Thomas A . Morgan , " Jr .~ Acting City Manager TAM/ e j a DEVELOPMENT- - 66TH Ft.=32,690 3/4 acre STREET S 1 r1 ~ Lr` HOUSING AND REDEVELOPA^.ENT AUTHORITY Office of Executive Director HRA Letter No. 21 Agenda July 18, 1983 Housing. and Redevelopment Authority Commissioners City of Richfield Dear Commissioners Subject: Resolution Authorizing the Use of Facsimile Signatures by the Chairman and Acting Executive Director for Signing HRA Checks Virtually all HRA checks utilize facsimile signatures of the Chairman and Executive Director created by use of a check-signing machine. Original approvals are required for purchase orders and other instruments which cause the checks to be originated. State law provides for the use of such facsimile signatures upon approval of the Housing and Redevelopment Authority. Anew check-signing stamp will be obtained as a result of recent personnel changes. for the Acting Executive Director. It is recommended that the Housing and Redevelopment Authority adopt the attached resolution authorizing the use of facsimile sig- natures. Respectfully submitted Thomas A. i~?organ, Jr. Acting Executive Director TAM/ e j a RESOLUTION NO. RESOLUTION AUTHORIZING THE USE OF FACSIMILE SIGNATURES BY THE CHAIRDiAN AND EXECUTIVE DIRECTOR FOR THE SIGIv'ING OF HRA CHECKS WHEREAS, State Law provides for the use of facsimile signa- tures for HRA checks and warrants, and WHEREAS, the Housing and Redevelopment Authority of the City of Richfield deems it proper and in the public interest to authorize such use for the Chairman and Acting Executive Director. NOW, THEREFORE, BE IT RESOLVED by the HOUSING AND REDEVEL- OPMENT AUTHORITY of the City ©f Richfield that the use of facsimile signatures for checks and warrants drawn upon the HRA are hereby authorized for Thomas E. Harms, Chairman; and Thomas A. P•~organ, Jr., Acting Executive Director. Passed by the Housing and Redevelopment Authority of the City of Richfield, this 1~th day of July, 193. Thomas E. Harms Chairman ATTEST: Joan Helmberger, Secretary