04-04-83 agenda~oi~
HOUSING AND.REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 10
Agenda April 4, 1983
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Public Hearing, Sale of Property, 6645 Lyndale
Avenue, 6601 Lyndale Avenue, and 220 West 66th
Street
At the March 21, 1983 HRA meeting, a resolution was adopted
which set April 4, 1983 as the date for the public hearing on the
sale of the above identified properties. The following informa-
tion is presented for consideration at the hearing.
In late 1979, preliminary negotiations were initiated with
Kentucky Fried Chicken (KFC) representatives for the purchase of
their property at 6645 Lyndale Avenue. Working in conjunction
with the L/H/N redevelopment plan, Richfield State Aa,ency (RSA)
had proposed an expansion of their facility which necessitated
the acquisition of Kentucky Fried Chicken and the Hagen Furs prop-
erties at 6601 Lyndale Avenue. Subsequently, on November 16, 1981
'the HRA acted to amend the original L/H/N redevelopment plan to
provide for the purchase of both Kentucky Fried Chicken and Hagen
Furs. At .the same time, the HRA approved a developer's agreement
with the Richfield State Agency, providing that the Richfield
State Agency would purchase the KFC and Hagen properties for a
price of $150,000 and $90,000 respectively. In order to pay for
the net cost to the HRA, a tax increment agreement was .included
in the developer's agreement which required the RSA to guarantee
a payment each year to the HRA equal to the debt service on the
bond issued to finance these acquisitions. This payment is to
be made until the tax increment is~sufficient to pay these costs.
Kentucky Fried Chicken has agreed to purchase the property at
220 West 66th Street in its present condition, for $180,000 from
the HRA. The original property cost to the HRA was $180,000, and
the HRA will not incur additional costs to demolish the existing _
improvements and r_emove_the underground"storage tanks ;._as these costs
will be paid by KFC. Initially, and for a lengthy period of time,
KFC insisted that the city allow for the installation of a traffic
signal on 66th Street at vacated Pillsbury Avenue. This would be
implemented by an agreement which would contain certain traffic vol-
ume criteria to be met before installation of the signal. These
HRA Letter No. 10 -2- April 4, 1983
criteria are the warrants .contained in the Uniform Traffic Code.
In addition, the installation. of a signal would be paid for in
total by KFC if they requested the construction.
The HRA would provide title and possession to the 220 West
66th Street property on April 11, 1983. This will permit intia-
tion cf construction this spring by KFC. The HRA will receive
title to 6645 Lyndale on April 11, 1983. However, possession
will be received on or before August 15, 1983, provided the facil-
ity at 220 West 66th Street has opened for business; if problems
occur during construction, possession may be delayed until as
late as November 15, 1983. Because negotiations for the purchase
by the HRA of 6.601. Lyndale are still underway, it is not possible
to fix a date for conveyance of this property to the RSA.
It is recommended that the HRA adopt the attached resolutions:
1. Adopt a resolution authorizing the sale of the property
at 220 West 66th Street in the amount of $180.,000 to
Kentucky Fried Chicken National Management Company;
2. Adopt a resolution authorizing the sale of 6645 Lyndale
Avenue in the amount of $150,000 to the Richfield State
Agency; and
3. Adopt a resolution authorizing the sale of 6601 Lyndale
Avenue in the amount of $90,000 to the Richfield State
Agency.
Respectfully submitted,
~~A ~~
Karl Nollenberger
Executive Director
KN/eja
cc: Finance Coordinator
Community Development Director
Housing and Redevelopment Coordinator
220 West 66th Street
HRA RESOLUTION NO.
RELATING TO THE -SALE OF
HRA PROPERTY IN THE L/H/N
REDEVELOPMENT AREA
WHEREAS, the Housing and Redevelopmen Authority of
Richfield ("HRA") has adopted a redevelopment plan entitled
Lyndale/Hub/Nicollet Redevelopment Plan, as amended, (the
"Plan") ; and
WHEREAS, the Plan designates certain lands within the
redevelopment project area for acquisition and redevelopment
including lands described as follows:
The Southerly 150 feet of the Easterly 255 feet of
the following described premises: That part of the
South 53 1/3 rods of the Southeast 1/4 of the
Northwest l/4 of 5ection:27, Township 28 North,
Range. 24; West of the 4th Principal Meridian,
described as follows: Commencing at a point on the
South line of the above described tract., which is
25 feet East of the Southwest corner thereof, thence
North parallel with the West line of the above
described tract, 660 feet; thence East parallel
-with the North line of said tract 303.7 feet; thence
South 6:60 feet to a point in the South line of said
tract, which is 302..9 feet East of the point of
beginning; thence West 302.9 feet to-the point of
beginning, according to the .United States Government
Survey thereof and situated in Hennepin County,
Minnesota; subject to a street easement over the
South 43 feet thereof. (220 West. 66th Street); and
WHEREAS, Minnesota Statutes 462.356 require the Planning
Commission's finding as to the conformance of .the proposed
sale with the Comprehensive Plan; and
WHEREAS, the KFC National Management Company (the
"Developer") has offered and proposed to purchase the subject
property at a cost of One Hundred Eighty Thousand and no/100
Dollars ($180,000.00) and redevelop-the subject property in a
way which is consistent with the Plan; and
WHEREAS, pursuant to due notice thereof, a public hearing
was held on the proposed sale of the subject property to the
Developer and all interested persons had an opportunity to
be heard .
-2-
NOW, THEREFORE, BE TT RESOLVED by the Housing and
Redevelopment..Authority-of the City of Richfield, Minnesota,
as follows:
1) The sale of, the subject property is consistent
with and necessary for the redevelopment provided
for in the Plana
2) The use value of the subject property, within the
meaning of Minn. Stat., 1928., Sec. 4.62.541, is
One Hundred Eighty Thousand Dollars.
3) The finding of the Rlanning Commission regarding
the -sale of this property is acknowledged.
4) The HRA Executive Director is authorized and
directed to execute agreements with the Developer
for and on behalf o£ the HRA, which provide for
the sale of the subject property at a price of
One Hundred Eighty Thousand Dollars..
Passed by the Housing and Redevelopment Authority of
Richfield this 4th day of March, 1983.
Thomas E. Harms, Chairman
ATTEST:
Joan Helmberger, Secretary
/J
6645 Lyndale Avenue
HRA RESOLUTION NO.
RELATING TO THE SALE OF
HRA PROPERTY IN THE L/H/N
REDEVELOPMENT .AREA..
WHEREAS, the Housing and Redevelopment Authority of Richfield
("HRA")thRedeaeloementrPaanelasmamendedn (thetlPd~nyjdaanaHub/
Nicolle p
WHEREAS, the Plan designates certain lands within the
redevelopment project area for acqu ition and redevelopment
including lands described as follows:
Lots 6 and 7, Block 3, Lyndale Shores on Wood Lake..
and-that part of Lot 8, Block 3, Lyndale Shores on
Wood Lake described as ..follows:
Beginning at the southwest corner of Lot Eight (8);
thence North thirty (30) feet along the west (.Lyndale
Avenue South) line of said lot; thence southeasterly
fifty (50) feet more or less on a straight line to a
point on the south. line of said lot which is forty
(40) feet from the southwest corner thereof; and thence
west forty (40) feet along the south line of said lot
to the southwest corner thereof and the point of
beginning. (6645 Lyndale Avenue); and
WHEREAS, Minnesota Statutes 462.356 require the Planning
Commission's finding as to the conformance of the proposed sale
with the Comprehensive Plan; and
WHEREAS, th.e Richfield State Agency (the "Developer") and
the HRA entered into a Contract For The Sale Of Land For Private
Development, dated January 21st, 1982. (the "Contract"); and
WHEREAS, the Developer has offered and proposed to purchase
the subject property at a cost of One Hundred Fifty Thousand and
no/100 Dollars ($150,000.0.0) and for additional terms as contained
in the Contract; and
WHEREAS, pursuant to due notice thereof, a public hearing
was held on the proposed sale of the subject property to the
Developer and all interested persons had an opportunity to be
heard.
-2-
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority of the City:-of Richfield, Minnesota, as
follows:
1) The sale of the subject property- is consistent with
and necessary for the redevelopment provided for
in the Plan.
2) The use value of the subject property, within the
meaning of Minn.. Stat., 1978, Sec. 462.541, is
One Hundred Fifty Thousand Dollars.
3) The finding of the Planning Commission.regarding the
sale of this property is acknowledged.
4) The sale of the property is consistent with and
necessary for the Developer to implement the Contract.
5) The HRA Executive Director is authorized and directed
to execute agreements with the Developer for and on
behalf of the HRA, which provide for the sale of the
subject property at a price of One Hundred Fifty
Thousand Dollars.
Passed by the Housing and Redevelopment Authority of Richfield
this 4th day of March, 1983.
Thomas E. Harms, Chairman
ATTEST:
Joan Helmberger, Secretary
6601 Lyndale Avenue
HRA RESOLUTION NO.
RELATING TO THE SALE OF
HRA PROPERTY IN THE L/H/N
REDEVELOPMENT AREA
~~ WHEREAS, the Housing and Redevelopment Authority of Richfield
( HRA ) has adopted a redevelopment plan entitled Lyndale/Hub/
Nicollet Redevelopment Plan, as amended, (the "Plan"); and
WHEREAS, the Plan designates certain -lands within the
redevelopment project area for acquisition-and redevelopment
including lands described as follows:
That part of Lot 1, Block 3, J. N, Hawser's
Addition,. Hennepin County, Minnesota, described
as follows: Beginning at the Northwest corner
of said Lot l; 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 V7esterly 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 running Southerly to a point in the
-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 lands herein
conveyed and owners of land herein excepted.
(6601 Lyndale Avenue); and
WHEREAS, Minnesota Statutes 462.356 require the Planning
Commission's finding as to the conformance o,f the proposed sale
with the Comprehensive Plan; and
-2-
WHEREAS, the Richfield State Agency (the "Developer") and
the HRA entered into a Contract For The Sale Of Land For Private
Development,-dated January 21st, 1982 (the "Contract"); and
WHEREAS,- the Developer has offered and proposed to purchase
the subject property at a cost of Ninety Thousand and rio/100
Dollars ($90,000.00) and for additional terms as contained in
the Contract; and
WHEREAS, pursuant to due notice thereof, a public hearing
was held on the proposed sale of the subject property to the
Developer and all interested persons had. an opportunity to be
heard..
NOW, THEREFORE, BE IT RESOLVED by the Housing:and Redevelopment
Authority of the City of Richfield, Minnesota, as follows:
1) That the finding of the Planning Commission regarding
'the sale of this property. is .acknowledged .
2) The sale of the subject property is consistent with and
necessary for~the redevelopment provided for in the Plan.
3) The use value of the subject property, within the meaning
of Minn. Stat., 19.78, Sec. 462.:541 is Ninety Thousand
Dollars.
4) The sale of the property is consistent. with and necessary
for the Developer to implement the Contract.
5) The HRA Executive Director is authorized and directed
to execute agreements with the Developer for and on
behalf of the HRA, which provide for the sale of the
" subject property at a price of Ninety Thousand Dollars.
Passed by the Housing and Redevelopment Authority of Richfield
this 4th day of March, 1983.
Thomas E. Harms, Chairman
ATTEST:
Joan Helmberger, Secretary