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06-20-83 agendaHOUSING AND REDEVELOPMENT AL7THORITY Office of Executive Director HRA Letter No. 20 Agenda June 20, 1933 Housing and Redevelopment Authority Commissioners City of Richfield Dear Contmiss Toners Subject: Chronology of Events-Related to the Redevelopment of the "Godfather Block" -and Request for Authorization to Initiate Eminent Domain This letter contains a chronology of events related to redevelopment activities on the "Godfather Block". On June 20, the HRA will be presented with a resolution which, if adopted, would authorize the initiation of eminent domain proceedings against all property owned by Mr. Strom except the Wendy's restaurant parcel. 11/75 HRA and City Council adopted the LHN Redevelopment Plan which-identified subject block for redevelop- ment by the private sector as an entertainment center. 1977+ Big Mike's restaurant, corner of-65th Street & Lyndale Ave., ceased operations. 11/15/77 Letter to Mr. Krier, Development Director, from Mr. Cook confirming results of meetings on 11/10 and 11/14 regarding design features of Wendy's restaurant which was proposed for construction on the site of Big Mike's. 11/15/77 Letter to Mayor and City Council -from Mr. Cook containing general statement of the nature of the Wendy's operation. in. Minnesota. 11/22/77_ Planning Commission meeting to act on Special Use Permit (SUP) request for Wendy's. Staff recom- mended that a SUP not be issued until a satis- factory redevelopment plan for the adjacent property owned by Mr. Strom is approved by the City Council. 1/24/78 Planning Commission was requested to review proposed city ordinance amendment which would require that within a redevelopment project, development must comply with all adopted plans, regulations and guidelines.. Planning Commission recommended approval by City Council. 2/13/78 City Council adopted.~the ordinance. 3/28/78 Planning Commission letter reports that RING and CIC reviewed and commented on Wendy's proposal. They requested concept plan for all of Strom's property which would indicate. how Wendy's would relate to that concept. plan. Letter also indicates 3/20/78 meeting with Wendy's representatives at which they were requested and agreed to prepare a new site plan and a concept plan for the Strom property as a whole. Letter notes that the SUP request was continued until 4/25/78. 4/24/78 RING and; City Council meet to review concept plan. 4/25/78 Letter to Mr. Krier from Mr. Strom transmitting requested concept plan for his. property (see attachment,. Entertainment Development Guide). 4/25/78 Planning Commission letter - Staff-finds Wendy's proposal to be in compliance with the LHN Redevelopment .Plan-and Comprehensive Plan and meets conditions for the SUP. 5/1/78 Letter to Mr. Krier from Larkin., Hoffman, Daly, & Lindgren objecting to process for amendments to the Comprehensive Plan and Redevelopment Plan because they are unnecessary.- Cites staff Planning Commission report dated 4/25/7.8 indicating that Wendy's conforms to both-the existing Comprehensive Plan and existing Redevelopment Plan. 5/9/78 Paanning.Commission letter indicates SUP request tabled at 4/25/78 meeting because of a need to amend the Comprehensive .Plan to incorporate the concept plan from Mr. Strom. SUP approved at this 5/9/78 meeting. 5/9/78 Planning Commission Resolution #19 incorporates Mr. Strom's concept plan into Comprehensive Plan by amendment. 5/12/78 Publication date for 5/22 City Council hearing on amending. Comprehensive Plan and SUP. Publication date for HRA hearing to amend Redevelop- ment Plan. 5/22/78 Public hearing before City Council regarding SUP to construct and operate a restaurant at 6500 Lyndale Ave.. . ' City Council. grants SUP for Wendy's.. City Council amends Comprehensive Plan to reflect Mr. Strom's concept plan. HRA amends the LHN Redevelopment Plan to include Mr. Strom's concept plan. 5/.24/78 Application from Mr. Cook for off-street parking contract agreement received.. 6/26/78 City Council approves off-street parking agreement. Fall, Staff initiates re-evaluation of LHN redevelopment 1978 plan. 11/9/78 Memo to City Council announcing discussion session related to proposed LHN plan changes. 11/16/.78 Special HRA meeting at Woodlake Nature Center to discuss staff proposal for plan changes. Two alternative developments were studies for the "Godfather Block": (1) 170 units of rental housing and 57,000 sq.ft. of office space, with the HRA acquiring the entire block. (2) 100,000 sq.ft. of commercial space with the HRA buying only property not owned- by Mr. Strom and Mr. Heilicher to minimize HRA costs and make less intensive development feasible. All the existing structures would be removed from all parcels. 1/23/79 Planning Commission sets dates of February 13 and February 27, 1979 to consider LHN plan modifications. 2/27/79 Planning Commission approves resolution related to LHN Plan modifications which, among other things, called for the acquisition and redevelopment of the "Godfather Block". 3/27/79 City Council adopts resolutions amending redevelop-- . ment including that which called for acquisition and redevelopment of the "Godfather Block". 3/26/79 HRA authorizes implementation of LHN amendments. 10/20/80 HRA requests City Council to impose a one-year moratorium on requests for rezoning, special use permit, variance, platting, building permit and sign permits on "Godfather Block". 11/24/80 City Counci]: adopts resolution imposing a moratorium. 12/21/81 HRA requests City Council to continue moratoriums an additional year. 12/21/81 Letter to Mr. Strom from Executive Director inviting him to submit a development proposal for "Godfather Block". A preliminary concept proposal was requested by 2/1/82. 12/28/8.1 City Council year. 1/25/82. City Council hearing-date futon for t to construct extends moratorium for an additional adopts resolution establishing a public for consideration of preliminary reso- ~.x exempt financing for New Age Developers a mixed use development. 2/16/82 HRA and City Council meet concurrently to hear proposal from New Age Developers. City Council approves preliminary resolution for financing and HRA.authorizes negotiations with developer. 11/15/82 HRA authorizes negotiations with Mr. Strom for the purchase of his property. 1/10/83 Moratorium expires. . 2/83 Connor Schmid,. representing Wendy's, contacted staff regarding plans .for displacement of Wendy's and. redevelopment.. 5/16./83 Wendy's representatives make presentation to HRA regarding feasibility of maintaining their facility with redevelopment proceeding on adjoining property. The series of events identified in the chronology indicate that there has been considerable public discussion regarding the future of the "Godfather Block". In pursuit of the redevel- opment goals, Mr. Strom was given. two opportunities to privately redevelop his property. The first came in 1978 when he sub- mitted a concept plan for development of his property. The second. opportunity was in 1982 when he was invited to submit a proposal.. At the May 16 HRA meeting, New Age Developers indicated they would like to initiate construction of their development in the Spring of 1984. Negotiations with Mr. Strom were authorized in November,. 1982. Several meetings and telephone conversations have failed to achieve agreement on an acceptable -level of compensation for his property. Thus, it would be appropriate and timely .for the HRA to adopt the attached resolution authorizing .the initiation of eminent domain proceedings against his property with one exception. It is proposed that the parcel occupied by Wendy's be excluded from the authorization at this time. This would be proper because of the desire. expressed by Wendy's representatives to remain in operation, and the :preliminary status of New Age Developers' site plan.. Staff would work with the developer and explore the design and cost implications of proceeding with redevelop- _ meat which would include the parcel .occupied by Wendy's and proceeding with development without the parcel. At such time .as these alternatives have been more closely evaluated and New Age Developers has provided firm assurances that they will proceed with development, staff will report back to the HRA. Property already .owned by the HRA is 'to be included in the proceeding because of title problems (Exhibit A, which con- tains the legal description for the property, will be available .Monday evening). Tt is recommended that. the HRA adopt the attached resolution authorizing the initiation of eminent domain proceedings against the .property owned. by Mr. Strom excluding the Wendy's parcel. Respectfully submitted, i i !: 1 °~ ~ 1 Thomas A. Morgan, Jr. Acting Executive Director TAM/ja \ ~ ~i~._ , .~ ~~~~ ~ ~ ~~:, \~~~ ~, ~ - ~`rj~ .. `L7tytl V~ .a~ ~.. ~'~u~~~ ~ fig, . ~~.~ .~ ~\ :',`~ E~~~ '~::. • ~~.` • ~•• •~ ~~ • •~ ` . e "'~, ,x,71 ~, -_~~~ - y~ ~ ~ ~~!~ ,., -~ .. .:.~' C. ~.,` ~~ ~~ _ _ ._ ~~ ~~ ~~~ ~~g~~~~~~ ~ ~~~~~~ o~~~~ I for tha G. Strom preper~y Date : 4.13.78 ~,~ U7 Z o ~~ _ 0 -~ RESOLUTION N0. RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN REAL PROPERTY BY EMINENT DOMAIN PROCEEDINGS `~ WHEREAS, on October 15, 1975, the Housing and Redevelopment Authority in and for the Gity of Richfield adopted, and has subsequently amended, the Lyndale-Hub-Nicollet Commercial Improve- ment Program, and has determined that properties within the project area were deteriorated and deteriorating within the meaning of Minnesota Statutes 1982, Section 462..421, Subdivision 11; and WHEREAS, the. Lyndale-Hub-Nicollet. Commercial Improvement Program has been determined to be necessary to eliminate and to prevent the spread of such deterioration; and WHEREAS, the property described in Exhibit A, attached hereto and made a part hereof as :though fully set out at this point, is within the project area and has been designated for acquisition; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield finds it necessary, proper and expedient, and in the interest of the public health, safety, convenience and general welfare of the. .citizens of the City of Richfield to acquire, for the public purposes of redevelopment, said property at the earliest possible date; and WHEREAS, the acquisition of the subject property is con- sistent with and necessary to the implementation of the Lyndale- Hub-Nicollet Commercial Improvement Program ,and to the elimination of, or prevention of, the spread of deterioration within the project area; and WHEREAS, efforts to obtain the property through negotiation have been unsuccessful; and WHEREAS, it is in the public interest that title to and possession of such property be acquired before the filing of an award by the court-appointed commissioners; NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevel- opment Authority in and for the City of Richfield as follows: 1. The commencement of eminent domain proceedings for the purpose of acquiring fee simple absolute title to the property described in Exhibit A is hereby authorized. Such acquisition shall be for the purpose of redevelopment. ,` ~- 2. Authorization is~hereby given to obtain the trans- fer of title and possession of the subject prop- erty prior to the making of the award by the court-appointed condemnation commissioners and as soon as may be allowed by law. 3. The Executive Director and Commission Chairman are authorized to take whatever action they shall deem ~ necessary -and consistent with this Resolution for the purpose of acquiring title to the property described in Exhibit A. Passed by the Housing and Redevelopment Authority in and for the City of Richfield this day of 1983. Thomas .Harms, Chairman ATTEST: Joan Helmberger, Secretary EXHIBIT A 1. That part of Government Lot One (1), Section Twenty-seven (27), Township Twenty-eight (28), Range Twenty-four. (24), described as follows: Commencing Two Hundred .Twenty-nine and 6/10 (229.6) feet North and Two Hundred Fifty-six and 6/10 (256.6) feet East from the Southwest corner of Lot One (1), thence North One. Hundred Three (103) feet, thence South Eighty-two (82) degrees Fifty-six (56) minutes East One Hundred Forty One and 7/10 (141.7) feet; thence North Eighty-two (82) degrees, Thirty-four (34) minutes East to center line of Lyndale Avenue, thence Southerly along the center line of Lyndale Avenue One Hundred Fifteen (.115) feet, thence West Three Hundred Six and 5/10 (306.5) feet to beginning, and 2. Tracts B and C, Registered. Land Survey No. 1318, except that part of Tract B, Registered Land Survey No. 1318, described as lying easterly and northerly of the following described lines: Beginning at the Southwest corner of Tract A Registered Land Survey No. 1318; thence southerly along the southerly extension of the westerly line of Tract A, a distance of 8.62 feet; thence easterly-deflecting- to the left 82 degrees 13 minutes 28 seconds, to the easterly line of said Tract B and there terminating. 3. That part of Government Lot 1, Section 27, Township 28, Range 24, described as beginning at a point in the South line of said Government Lot 1, distant 256.6 feet East of the Southwest corner of said Government Lot 1; thence Northerly parallel with the West line of said Government Lot 1, a distance of 229.60 feet to the point of beginning; thence at a right angle Westerly 2.20 feet; thence Northerly. deflecting to the right 89 degrees 38 minutes, a distance of 104.7 feet to the Southerly line of Registered Land Survey No. 1318, Files of the Registrar of Titles, County of Hennepin; thence Easterly along said Southerly line of Registered Land Survey No. 1318, Files of the Registrar of Titles, County of Hennepin, to its intersection with a line drawn Northerly from the point of beginning and parallel with the West line of said Government Lot 1, thence Southerly along said last parallel line to the point of beginning, according to the Government Survey thereof. The West line of said tract has been judicially determined and marked by Judicial Landmarks set pursuant to Torrens Case No. 17641, and situate in Hennepin County, Minnesota. HOUSING AATD REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 19 Agenda Jure 20, 1983 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Consideration of Redevelopment Potential of .Block Bounded by Rae Drive, 66th Street and -Coach Homes An item on the June 13, 1933 city council agenda related to the request for the rezoning of property at 910 t~Test 66th Street from Residential to Limited Business for the purpose of converting an existing residence to a dental office. Dr. David Elasky, a local dentist, has requested that the above described property be rezoned to C-1 Commercial so that he can construct a dental off ice in an existing residence. This item was given first read- ing consideration by the city council. on June 13 and the public hearing and second reading has been scheduled for July 25, 1983. At the request of a member of the HRA, discussion of development potential for this block has been placed on the June 20, 1923 HRA agenda. This item was heard by the planning commission at their May, 1983 meeting and at that time the commission by a 7-1 vote, recommended that the rezoning be denied. The commission also in- dicated that while the dental off ice use may or may not be appro- priate for the site, the city should consider the rezoninq of the entire parcel lying between Rae Drive, 66th Street and the Coach Homes development, and not just one lot. At the present time this block is zoned R Residential with the exception of the north- east parcel on the block which is zoned Multiple Family. If the Elasky request were to be granted by the city council, this would result in the introduction of yet a third zoning district desig- nation in this small block, i.e. C-1 Limited Business. The comprehensive plan indicates that the proposed site should be medium density buffer area and this would allow for uses including multiple family duplexes, single family dwellings, and existing convenience commercial establishments. The proposed dental office would not be consistent with the provisions of the comprehensive plan. The subject properties in this block are not within the Lyndale/Hub/Nicollet redevelopment project area. The project does, however, bound this block on the east, north, and west sides. When the L/H/N project area boundaries were drawn it appears to have been a conscious effort on the part of the HRA to HRA Letter No. 19 -2- June 20, 1983 spec ficially exclude this block from the L/H/N redevelopment area. At the June 13, 1983 city council meeting, local residents appeared and expressed concern about the rezoning of one lot to L-1 commercial and indicated that it would appear to be far more preferable to consider the entire seven lots which make up the block for a new zoning classification. If the HRA is possibly going to consider the redevelopment of this block in the next 10 to 20 years, clearly the time to act is now. Once the property. starts redeveloping commercially it is highly unlikely that the HRA will be able to reverse this trend and have the block developed in a residential manner without paying a premium price for acquisition of these commercial prop- erties. It is very likely that local residents will appear at the June 20 HRA meeting to voice their opinions that the HRA should actively be attempting to promote the redevelopment of this block by potentially intervening and acquiring properties. The Community Development staff has conducted some prelim- inary financial research relative to costs involved in the potential acquisition and redevelopment of this block. The total estimated acquisition cost of the seven parcels in the block would be approximately $500,000, and relocation costs would probably amount to another $80,000 - $100.,00,0. .The block contains an approximate area of slightly less than 100,000 square feet, or two and one-half acres. Of the seven properties in the block three are owner occupied, two of the parcels are for sale (subject property being considered for rezoning at 910 W. 66th Street and .the property at 920 W. 66th Street, presently owned by Hennepin County); the two remaining parcels are owned bit the same individual and are presently rented. Based upon the estimated acquisition and relocation costs and the amount of tax increment needed for the project to be self- liquidating it appears that 35-40 townhouse units would have to be built on the property and would have to sell for approximately $100,000 each. It seems relatively unlikely that units in that price range would be saleable in this particular location. There- fore,. if the HRA were to become actively involved in the redevel- opment of this block, some subsidy would clearly be required. The staff also gave cursory review to the potential of acquiring only the south half of the block (that which faces 66th Street), but it was determined that there would be inadequate lot depth for purposes of developing sound multiple family de- velopment on this particular block. D?embers of the city staff will be present at the HRA meeting to comment on this project in further detail if the authority so desires. Re~spiectfully submit~.ed, Thomas A. Morgan,`Jr. T'AM/eja Acting Executive Director HOUSING AND REDEVELOPMENT AUTHORITY Office ~ of Executive Director HRA Letter No. 18 Agenda June 20, 1983 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Authorization to Purchase 6601 Lyndale Avenue Negotiations-for the purchase of the Hagen property at 6601 Lyndale Avenue have been underway for several months. Negotia- tors for both the HRA and Mr. Hagen have recently come to agree- ment. This letter contains the details o£ the proposed agreement and requests HRA authorization to execute a purchase agreement. Negotiations for the purchase of this property were based'on the Development Agreement between the HRA and the Richfield State. Agency (RSA) which was approved on November 16, 1981. The prop- erty is needed to facilitate the RSA expansion project. It is proposed that the HRA purchase this property for $132,'500. The value of the land and building was placed at $115,000; the basement vault which is of specialized construction to provide for the safe storage of furs, and other immovable fixtures were valued at $10,000, and relocation was fixed at $7,500. Also through negotiations, RSA has agreed to rent 800 square feet of space to Mr. Hagen in their new facility for $7.00 per square foot for three years. This is $5.00 per square-foot below the market rent and thus is costing RSA $12,000 during the three-year period. It is proposed that this cost be divided equally between RSA and the HRA. The HRA would pay for $6,000 of improvements which RSA must make within the public right-of-way. The payment is to be made to Kraus-Anderson., the contractor, to~help pay for_the Grand Avenue median installation. Mr. Hagen will continue to operate at his present location until his property is needed for the bank project. During this period he will pay $250 per month rent, and Richf field Coin and Jewelry will pay $600 per month rent. _ It is also necessary for the HRA to provide relocation assistance to Richfield Coin & Jewelry. They would be eligible for up to $10,000 in relocation benefits. i7nder the terms of the development agreement with RSA, they have agreed to pay the HRA $90,000 for this property. The net cost of the acquisition will be returned to the HRA under the terms of the agreement by the tax increment generated from the HRA project, or if necessary, by cash payments. Funds for this HRA Letter No. 13 -2- June 20, 1983 purchase are available in the 1932 L/H/N tax increment bond. issue. Previous actions by the Planning Commission and the HRA make the authorization for the purchase of this property appropri- ate this time. On August 25, 1981 , the Planning Commission, in Resolution No. 36, found the acquisition of this property to be in conformance with the comprehensive plan. On November 16, 1981, the HRA adopted D~odification No. 3 to the L/H/N plan which identi- fied this property for acquisition. It is recommended that the HRA adopt the attached resolution which authorizes .the Acting Executive Director to execute a pur- chase agreement for $132,~OO for the purchase of this property, and the payment of $6,000 for the installation of the Grand Avenue median. Respectfully submitt~d, Thomas A. Morgan, Jr. Acting Executive Director TAM/eja cc: Community Development Director Housing and Redevelopment Coordinator Finance Coordinator RESOLUTION N0. RESOLUTION ESTABLISHING JUST COMPENSATION, AND AUTHORIZING THE PURCHASE OF 6601 LYNDALE AVENUE AND A PAYMENT FOR IMPROVEMENTS WHEREAS, the Housing and Redevelopment Authority of Richfield, Minnesota (HRA did on October 15, 1975, approve a redevelopment. plan for an urban renewal project for the Lyndale-Hub-Nicollet~area of Richfield entitled "Lyndale-Hub-Nicollet Commercial Improvement Program" (The "Plan"); and WHEREAS, the Plan has subsequently been amended; and WHEREAS, it has been determined pursuant to and in furtherance of the Plan that the acquisition of certain real property is neces- sary, said real property being described in Attachment A; and WHEREAS, Minnesota Statutes 462.356 require the Planning Commission's finding as to the conformance of the proposed purchase with the comprehensive plan; and WHEREAS, the HRA has caused appraisals of the subject property to be made and has carefully considered such appraisals, and recommends establishing-just compensation at $132,500; and WHEREAS, it is in the public interest to make a payment for a portion of the cost of improvement within the public right-of-way; and WHEREAS, funds to provide for the purchase of this property and payment for improvements are available from the Bonds of 1982. NOW, THEREFORE, BE IT RESOLVED BY THE RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY: 1. that receipt of the opinion of the Planning Commission with regard to the proposed purchase of this property is acknowledged; and 2. that $132,500 is determined to be just compensation for the subject real property; and 3. that a payment of $6,000 to Kraus-Anderson to help pay for the installation of improvements within the public right-of-way is authorized; and 4. that the monies for the purchase of this property and payment are to be made available from the proceeds of the Bonds of 19 8 2 ; and 5. that the Acting Executive Director be, and is hereby authorized to execute, as an agent of the Richfield Housing and Redevelopment Authority, the Purchase Agreement for the purchase of said real estate. Passed by the Housing and Redevelopment Authority of Richfield this 20th day of June, 1983. Thomas E. Harms, Chairman Joan Helmberger, Secretary Attachment A Legal Description: That part of-Lot 1, Block 3, J. W. Hawser's Addition, Hennepin County, Minnesota, described as follows: Beginning at the Northwest corner of said Lot 1; thence East along the North line to the Northeast corner thereof; thence South along the East line of said lot a dis- tance of 54.95 feet; thence west to a point in the Westerly line of said lot which. point is Southwesterly from the point of beginning a distance of 58.6 feet; thence Northeasterly along said .Westerly line to the point of beginning, excepting therefrom all that part of the above-described property lying Easterly of the following described line: Beginning at a point on the North line of the above- described property, said point being 65.54 feet West of the Northeast corner thereof, as measured along the North line thereof; thence runr_ing Southerly to a point in tre South Line of the above described property said point being 65.07 feet West of the South- east corner of said property, as measured along the South Line thereof, subject to and together with a right of a joint party wall the center Line of which is the East boundary line of lands herein conveyed and the West line of lands herein excepted and cost of repairing and maintaining said common wall is to be borne equally by owners of lar1ds herein conveyed and owners of land herein excepted. HOt?SID1G AND REDEVELOPMENT AUTHORITY Off ice of Executive Director HRA Letter No. 17 Agenda June 20, 19x3 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Modification No. 4 to the L/H/N Commercial Improvement Program. and Authorization to Purchase 654.5 Nicollet Avenue Property In I~Tovember, 1?£30, the HRA began discussing the availability of acquiring for redevelopment the former service station at the northeast corner of the intersection of 66th Street and Nicollet Avenue identif ied as 6545 Nicollet. In the staff's opinion, the property is blighted and a detriment to the area. Although there has been agreement that the property should be acquired,. the reuse has posed a difficult problem. Staff an- alysis and HRA discussions have concluded that the independent de- velopment of this property is not feasible. The most desirable strategy would be to acquire the property and sell it to the shopping center owner to the north.' The. center has been for sale and several prospective purchasers have expressed an interest in acquiring the parcel. The Naegele Company purchased this property in late 1979 for $125,000. They are agreeable to selling it, but also have adver- tising signs located on the site. They presently rent the prop- erty to Mr. D7attson who operates Richfield Automotive. The prop- erty contains approximately 11,541 square feet, including an ease- ment in favor of the city. However, because the city and the previous owner could not agree on the value of the easement, pay- ment by the city is pending. This easement prevents access from Nicollet Avenue. The negotiated HRA purchase price is $130,000, plus the value of the advertising signs which has been fixed at $50,000. This amount is based on rental income generation. The income projections indicated the signs' value was in excess of this number. Thus, the total purchase price would be $180;000. The planning commission, on July 27, 19$2, found in Resolution No. 46, that the proposed acquisition and future disposition of this property for commercial reuse was in conformance with the comprehensive plan. As part of the purchase process for this property, it is nec- essary to modify the redevelopment plan and designate the property for acquisition. Because neither the project boundary nor the HRA Letter No. 1? -2- June 20, 1983 project land. use is impacted, the modification may be made by the HRA. This is the process which was followed with the former Clark Oil facility at 66th Street and Pillsbury Avenue. The tenant, Mr. N~attson, would be eligible to apply for re- location benefits, to .a maximum of $10,.000. It i:s hoped the re- location of his business could be:comp.leted by the end of Septem- ber. Preliminary discussions have been held with him. regarding relocation and he has also been informed that the HRA will dis- cuss the possible purchase of this property on June 20. The Naegele Company has agreed. to remove. their advertising signs by September 30, 19Ei3. The Community Development Director will be present at the June 2.0, 1983 HRA meeting to give a brief presentation regarding tfie anticipated future development of this area. A representative of the proposed developer, Lincoln Properties, will also be present to comment on this project. Funding for this acquisition would be derived from two sources. The city's L/H/N.street improvement project (CP?O5), would provide $20,000, and these funds have been budgeted for this acquisition.. The HRA would provide $160,000, plus Mr. A4attson's relocation benefits, from the L/H/N Capital Fund. This expendi- ture would be fully recovered by the fund at the time of a future bond sale. It is recommended that the HRA adopt the attached resolution approving N.'odif ication r;o. 4 , and authorizing the Acting Executive Director to execute a purchase agreement on behalf of the HRA for $180,000. Respectfully submitted, ,1 1 ~ ~ t i Thomas A~.. Morgan , Jr .. Acting Executive Director cc: Community Development Director Housing and Redevelopment Coordinator Finance Coordinator KN/eja Resolution of the Housing and Redevelopment Authority of Richfield, Minnesota, Approving Modification No. 4 in the Lyndale-Hub-Nicollet Commercial Improvement Program 6545 Nicollet Avenue and Authorizing the Acquisition of said property. WHE REAS, the Housing and Redevelopment Authority of Richfield Minnesota (HRA) did on October 15, 1975, approve a redevelopment plan for an urban renewal project for the "Lyndale-Hub-Nicollet Commercial Improvement Program" (the "Plan"); and WHE REAS, the City Council of Richfield, Minnesota did on November 24, 1975, approve the Plan; and WHEREAS, the Plan has subsequently been amended; and WHEREAS, the Plan designated certain properties for acquisition by the HRA; and WHEREAS, it has been determined .that the acquisition of certain additional property described in Attachment A is necessary to implement the Plan and to carry out the purposes of the Plan; and WHEREAS, the acquisition of said property as a part of the Plan will not alter or affect the exterior boundaries of the redevelopment Project area; and WHEREAS, the acquisition of said property will not alter or affect the general land uses established in the Plan; and WHEREAS, Minnesota Statutes 462.356 require the Planning Commission's finding as to the conformance of the proposed purchase with the comprehensive plan; and WHEREAS, the monies for the purchase of this property are available in the CP705 and LHN capital funds; and WHEREAS, the HRA has caused appraisals of the subject property to be made and has carefully. considered such appraisals, and recommends establishing just-compensation at $180,000. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment .Authority that: 1. The receipt of the opinion of the Planning Commission with regard to the proposed purchase of this property is acknowledged. 2. The Plan is hereby modified by adding thereto as property designated for acquisition the land described in Attachment A. 3. That $180,000 is determined to be just compensation for the subject real property. 4. That the monies required from the HRA for the purchase of this. property are to be made available from the LHN capital fund at no interest.. 5. That the Acting Executive Director be, and hereby is authorized to execute, as an agent of the Richfield Housing and Redevelopment Authority, the Purchase Agreement for the purchase of such real estate. Passed by the Housing and Redevelopment Authority of the City of Richfield this 20th day of June, 1983. Thomas E. Harms, Chairman ATTEST: Joan Helmberger, Secretary Attachment A Legal Description: The property is legally described as follows:. Lot 7, except the North 49 feet thereof and Lot 8, except the North 49 feet and less the East 16.06 feet, Block 9, Towns Edge Addition, plus an access easement over a triangular plot of land adjoining the above described premises described as follows: Beginning at a point in the West line of Lot 7, 76 feet North of the Southwest corner of Lot 7, Block 9, said Towns Edge Addition, thence running North 49 feet along the West line of said Lot 7, thence Southeasterly to a point in the North line of the South-76 feet of said Lot 7, which. point is 56.66 feet East of the West line of said Lot 7, thence West along the North line of the South 76 feet of said Lot 7 to the point of - beginning, Hennepin County, Minnesota.