07-14-75 agenda
CITY OF RICHFIELD, MINNESOTA
Office of Executive Director
HRA Letter No. 19
Agenda July 14: 1975
Housing and Redevelopment
Authority Commissioners
City of Richfield
Gentlemen;
Subject: Report on Urban Redevelopment I~?eighborhood
Preservation Workshop
Commissioner E. E. Jacobsen and Dick Krier, the city's planning
director, recently attended a two day Urban Redevelopment Neighborhood
Preservation Workshop.
Attached for your information is Commissioner Jacobsen's report
on this workshop.
Respectfully submitt ,
Vim'
Wayne Burggraaff
Executive Director
WSB/eja
•
July 14, 1975
Housing and P~edevelopment
Commissioners
City of Richfield
Gentlemen:
Subject: Report on Urban Redevelopment Neighborhood Preservation
Vdor'rshop (June 18 and 19, Attended by Commissioner
Jacobsen and Planning Director, Dick Krier.)
"Community officials are now warming up for a new game plan of
vitalizing our urban communities. The line ttp is community develop-
ment block grants, a partnership of Iocal private and public neighborhood
preservation and a partnership for local redevelopment. "
Dr. Anthony Downs
Chairman of the Board
Real Estate Research Corp.
The name of the game is local control with the inherent local responsibilities
and the demand for performance. Over the .long term, community development
(commercial and residential) is likely. to undergo the following changes:
1 . A broader constituency that is more av~are, more active, and more
effective .
2. Development of programs that will achieve greater overall cormunity
development results .
3. Increased accountability of elected officials regarding housing and
community development.
4. More effective citizen participation with the inclusion of those who
otherwise might be antagonistic.
5. Growing ability to leverage public monies to attract private capital .
6. Possibility of more state and federal restrictions and requirements
if expectations are not met.
•
--~-
•
For several years there have been trends underway in community development
that imply the need for new approaches. The new game plan has largely evolved
from these trends as well as the decision to shift most of the burden of responsi-
bility from the state and federal government to the local level. Community devel-
opment must include selective old efforts of clearance, rehabilitation and housing.
To improve the sucess potential. of these efforts, emphasis is likely to shift
following:
1. Strategy Planning: More attention to community goals, policies,
action steps and management systems and Less reliance on static
physical plans.
Z. Cost Effectiveness Evaluations: A needed basis for allocating re-
sources,setting priorities and leveraging public investments.
3. Neighborhood Preservation: Blight prevention. To reduce the need
for total future redevelopment, comprehensive approach including
code enforcement, financing, technical assistance, education,
public facilities and services, active citizen involvement, selected
clearance, ownership incentives, rehabilitation and neighborhood
improvement organizations.
•
4. Housing Strategies: Housing needs and resources viewed in a citywide
and metropolitan context as well as functionally related to jobs, schools,
public services and other elements of community development, programs
based on understanding and coordinated action.
5. Consolidated Programming: Integration of strategy plans with local
capital improvement programs and more emphasis on performance bud-
geting.
6. Large Scale Projects: Increased recognition that successful city pres-
ervation and rebuilding entails massive investment and efforts in place
of smaller fragmented projects.
7. Intrastructure Upgrading: More action to improving public systems of
schools, transportation, streets, lighting, recreation and other facilities
to foster and support private investment in housing, commerce and
industry.
8. Issue Analysis: Direct and explicit addressing of issues by careful
analysis, open discussion and resolution through both strategy and
action planning.
9. Effective Citizen Participation: Enthusiastic involvement of residents
in concerted attempts to resolve issues, find solutions, and expand
public-private cooperation in community development efforts.
sl
4
~ - _ _~ .
-3 -
After a brief overview, emphasis of the workshop shifted to two major areas:
(1) Evaluation of Urban Redevelopment and the Future of Redevelopment and
(2) Neighborhood Preservation
Urban Redevelopment Summary of Major Findings:
1. There is no connection between success of the project and size
of project, size of_ city, rule of population growth; structure and
organization of local government, economic base, vitality of
region, and community characteristics .
2. Thez•e is a connection between the success of the project and the
role of projected improvements, the availability of money from the
capital markets, and the median family income of the city.
3. Non residential projects are much more sensitive to market conditions
than are residential projects .
4. The efforts of the local director and staff as well as the HRA have
considerable impact on the success or failure of a redevelopment
project.
5. In residential projects the success has been greater where rehabilitation
and preservation of structures, rather than clearance has been emphasized.
• 6. CBD projects have been the most successful. Redevelopment of
neighborhood shopping centers have been the least successful.
7. Delay causing factors in completion of a successful project. There
is not a single significant factor which causes delay rattier a set of
complex inherent local and national factors tend to cause delay in
the completion of redevelopment projects. The cumulative delay in
an average project is to extend the completion by 1 1/2 to 2 years
for those projects requiring 10 to 15 years to complete . Further,
more success of the project is largely within the control of the HRA.
The factors of delay are:
a.
b.
c.
d.
e.
f.
g•
h.
i.
j.
Inappropriate land disposition practices and procedures
Perpetuation of low income housing concentrations
Inappropriate project size and scale
Poor project location
Unrealistic goals and objectives
Inadequacies of staff
Organizational difficulties
Unwillingness of local HRA to take positive actions to
condemn property
Failure to marshall local support
Lack of reuse potential
-4-
Neig hborhood Preservation Summary
• Real Estate Research examined a number of approaches to the problem
of residential preservation. The results of the examination were to develop:
I. A complete list of options on neighborhood preservation
2. Long range strategies for conserving existing housing inventories
Any neighborhood preservation program should identify the particular needs of
the neighborhood, the objectives of the program, the specific tasks of the
program, costs and resources of funding program participation and the roles of
participant and valuation after implementation begins. The types of programs
which have been successfully used to preserve neighborhoods include:
1. Code enforcement
2. Focus on public services
3. Growth management and neighborhood control
4. Historic preservation
5. Management of abandonment
• 6. Neighborhood services
7. Structural rehabilitation
It was emphasized that different neighborhood preservation strategies should be
used dependent on the specific stages of neighborhood decline. As neighborhoods
decline both the private and the public costs increase at a disportionate rate.
The stages of neighborhood decline are:
Stage 1: Healthy and Viable Residential Neighborhoods
These areas are thriving and relatively free, from problems. They are viable
because they continue to attract as new members (to replace those households
moving out through normal turnover) additional households with high enough
incomes and other resources to maintain the area in excellent condition. Such
areas are of two types:
A. New Thriving Areas
These are new or relatively new neighborhoods recently con-
- structed both of single family units and garden apartments
u t he future evolution of nei hbor-
or multi family str cures . T g
• hoods of this .type depends mainly upon the original cost
range of their housing and the subsequent socioeconomic
I
-5-
status of their occupants. Areas containing very high-cost
new single family housing and very low cost new housing have
the greatest tendencies to decline later. The former often de-
cline because it is hard to find other buyers with high enough
incomes to maintain large, expensive homes once the original
occupants move out. The latter decline becatizse low income
households have difficulty maintaining new homes in good con-
dition over any long period of time. Intermediate cost new
housing has the best chance of being maintained without much
decline. The number of other households with incomes equal
to those of the original occupants is quite large, and those in-
comes are sufficient to keep the area in good condition. Hence,
as the original occupants move out through normal turnover,
others move in who continue to maintain the area well.
B. Old Stable Areas
These are older prestige neighborhoods with residents of high
socioeconomic status. Such areas provide superior residential
environments and exhibit excellent structural maintenance. Al-
though high quality public services are evident, these neigh-
borhoods may lie in relatively central locations closer to expand-
ing areas of. blight than the new neighborhoods in the first group.
• Stage 2: Neighborhoods in Transition and Beginning to Decline
These are generally older areas undergoing functional change. The structures
in them are often approaching functional obsolescence, and the social comp-
osition is changing. Examples of functional obsolescence are lots too narrow
for adequate playspace, not enough off-street parking, inadequate electric
wiring, and old fashioned interior layouts and kitchens. As older families
whose children are raised move out to housing of more manageable size,
newel- and less affluent households move in. Less spending is put into
housing maintenance; so minor deficiencies begin to appear in the dwellings.
The decline in socioeconomic status of the residents, their changing tastes,
and the increased density of existing housing put increased pressure on the
neighborhood infrastructure (that is, streets, sewer systems, and other
physical amenities). Public services (such as waste collection, street
cleaning, fire protection, police protection, and school quality) may
decline .
Often, this stage includes substantial new .construction and high population
growth. But a high and increasing proportion of this new construction con-
sists of apartments; so average densities rise significantly. Much of the
apartment construction replaces older and larger single family homes. Most
areas in a region where this transitional process is evident are in the inner
• zones.
- ---
- __
__ _
-6-
Stage 3: Downgrading Neighborhoods with. Decline Clearly Underway
In these areas, changes begun in Stage 2 become more obvious and well defined.
Int~riar deficiencies increase and minor structural deficiencies become very
widespread. Decline in social status continues, causing entry by more lower
income households, while ethnic changes accelerate. Services become more
and more inadequate to meet rising physical, environmental, and social needs.
Housing occupancy is increasingly made up of renters rather than owners, and
many more properties come under absentee ownership. The social and physical
gulf between investors/owners and tenants widens; so there is less awareness
of tenant problems . This leads to deteriorating tenant-landlord relationships
and rising management and operating costs. Conversions to increased density
and nonresidential uses multiply, and overall confidence in each area slackens.
Minor problems become general, and service problems emerge and increase in
proportion to the rapidity of change in each area .
Stage 4: Neighborhoods Thinning Out and Accelerating into Majar Decline
In such areas, density and dwelling occupancy are gradually reduced. This
may occur through a decline in household size, but it may also reflect the merging
of dwelling units, demolition, vacancy, or abandonment. Thus, two key char-
acteristics of this stage are little or no construction and a decline in population.
Physical decline is found everywhere as housing becomes progressively deter-
iorated and dilapidated, with most structures in need of major repairs. This
• deterioration contributes to, and is reinforced by, a poer neighborhood physical
environment, including dirty streets, vacant lots_littered ~~ith junk, and many
abandoned cars on streets and izi yards. Further social shifts, particularly toward
minority groups, make the neighborhood marketable only to those of the lowest
socioeconomic rank able to make rental payments. As a result, cash flows to
property awners eventually decline, and further strains are placed on the landlord-
tenant relationship. The general household type is one existing at subsistence
levels, and with many social problems. These problems are often so severe they
threaten the general safety and well being of the local community. Pessimism
about the neighborhood's future becomes deep and widespread.
Stage 5: Nonviable and Heavily Abandoned Neighborhoods
Neighborhoods of this type have reached what amounts to a "terminal point. "
Abandonment becomes widespread, and expectations about their future are nil.
Severe social problems and physical decline place these neighborhoods at the
very bottom of the urban hierarchy. Tl~ir residents have the lowest social
• status, the least economic means, and the least leverage to improve the area
of anyone in the entire region. Even these persons gradually abandon the
worst units unless some new immigrant group of even lower status arrives.
Landlords abandon those units toa. This leaves gaps among the inhabited
structures and errrphasizes fears about the final nature of changes going on
in each such area . Such fears in turn ultimately lead to abandonment of the
remaining sound structures interspersed in this matrix of decline. All hope
for the future of such neighborhoods becomes extinguished. Almost no
households with enough resources to maintain property in good condition are
willing to remain in, or move into, such areas -- hence, they have become
nonviable .
__ _ __ _
__
• - -7-
. Examples of the strategies of neighborhood preservation are;
I~ ~ 1 . Neighborhoods in Stage 1 ,decline (healthy, viable residential
neighborhoods)
a . high risk loan guarantees
b. public works projects (streets, parks)
c, tax rebate for rehabilitation .
d. systematic code enforcement program
e, spot renewal
2. Neighborhoods in Stage `L (Transition and beginning to decline)
a. high risk loan guarantees
b, rehabilitation loan fund
c. occupancy permits
d. adoption of neighborhood by local S & L
e. demolition and code enforcement
f . public works
3. Neighborhoods in Stage 3 (decline clearly underway)
a.
• b:
d.
e.
f.
housing subsidies
improved services
direct rehabilitation
demolition-,.
improved security
code enforcement
4. Neighborhoods in Stage 4 (thinning out and accelerating into major
decline)
a . service inputs
b . demolition
c. improved security
d . code enforcement
The physical decline has taken over and most of the problems are social, thus
high. input of social services are required.
5. Neighborhoods in Stage 5 (non-viable and heavily abandoned)
a . demolition
b. high imput of social service
-8-
•
I personnal.ly feel that the rneeting was very informative and very
constructive. The planning director and I very much appreciated the opportunity
to be able to attend on behalf of. the City of Richfield. As this type of meeting
becomes available to HRA commissioners in the future, I would heartily recommend
attendance by one or more commissioners because of the very valuable information
that can be obtained from this type of seminar.
Yours very truly,
~' ~~
E. E. Jacobsen
HRA Commissioner
EEJ/eja
x- Y
CITY OF' iZTCIIPLEI,D a MINNESOTA
Office of Executive Director
HRA Letter No. 18
Agenda July 14 , 197 5
Housing and Redevelopment
Authority Commissioners
City of Richfield
Gentlemen:
Subject: House of Prayer Senior Citizen Housing:
Metro Council Review Requested
The city has received a request for comment on the proposed Knutson/
House of Prayer Senior Citizen Housing Project. The application has been
• forwarded to both the Senior Citizen Commission and Housing Advisory
Committee for comments . It is advisable that the HRA comment on this
application. Comments should address:
1 . Consistency of the project with the Comprehensive Plan .
2. Identification of major environmental concerns.
Respectfully submitted
~i
Wayne B~zrggraaff
Executive Director
WSB/eja
•
~'
•
~ ~~J
~~ `j1
r '~,~
. ~> _,
~~ ~ m8. *~
~'~ i ~~'~
~~ ~ ~' 9
~, ' ~~
o~~~ ,~ ; -/ _ ~,11 ,, ,~~4~r
~ ern raT~~6
300 Metro Square Buildix~g~, 7th Street and Robert Ctreet, Saint Paul, Minnesota 55101 Area 612, 227-0421
June 25, 1975
Mr. Wayne S . Berggraaff , Manager
City of Richfield ~' £^l { /1
6700 Portland Avenue ~ _'_, ~ ~j~
Richfield, Minnesota 55423 ~~ ~„!.~ .-,.,.,,,,,
~ ..;15
~. _
RE: Apartment Development Projects ~, .., ~ ,~, t, ,....., .
Richfield Seniors house, Richfield
Metropolitan Council Referral File No. 2804
• Dear Mr. Berggraaff:
Please refer to the attached explanation of the Metropolitan Council's
responsibility to review Minnesota Housing Finance Agency Apartment Develop-
ment housing program applicationso
The Council has been fozvJarded such an application for a project identified above a
A copy of the application, which provides further details, is enclosedo
Thank you.
Sincerely,
OPOLI N COUNCIL
,ohn Boland
Chairman
jB:emp
Enclosures
cc: Robert L. Hoffman, Metropolitan Council District 9
John Doyle, Metropolitan Council Housing Staff
An Agency Created to Coordinate the Planning and Development of the Twin Cities Metropolitan Area Comprising:
Anoka County O Carver County O Dakota County o Hennepin County O Ramsey County U Scott County O Washington County
•~ 1
•
METROPOLITAN COtJNCIL
Suite 300 Metro Square Building, Saint Paul, Minnesota 55101
227-9421
REVIEW OF MINNESOTA HOUSING FINANCE AGENCY APPLICATIONS
(Apartment Development Projects)
•
The Metropolitan Council is required by agreement with the Minnesota Ilousing
Finance Agency (MHFA) to review all multi-family applications for state loans,
grants, or other assistance.
The major project information the Council receives.is the Minnesota Housing
Finance Agency Form No. 201. This application is submitted to the MHFA
office by a developer for review.
Such applications are forwarded to the Council by the Minnesota Housing
Finance Agency for comment concerning:
1, "...the consistency of the proposed project with...areawide
development plans. "
2. "identification of major environmental. concerns."
The Council must complete its review and return it to the Agency office within
30 days. The ultimate purpose of this notification and review process is to
encourage the coordination of state housing programs with regional planning to
facilitate orderly growth of local areas.
As part of its review process, the Council will notify potentially affected units
of government, environmental commissions, and human rights commissions
that a review is taking place, and invite questions or comments. These
comments will be incorporated into the review and relayed to MHFA.
If you have questions, please call the Metropolitan Council Housing Staff at
227-9421.
i
ME7R0°OL17q~1 COUPJCIL
MIf1tfL5UTl1 IIUU~~1I!'~ I I~,~1~~;;L /1GLlJCY
~ I APART(~lE?~T bEl'ELOi'f1Lf~T PRUGRAf•1 RSrCR;J`,L
FILE fVtJ. 0~~0
I
,.~,., _.
,....
_ _-_--
Develof>er Development
~'
~I I House of Prayer Lutheran Church
Richfield Seniors House
i
C
'h
`
N
l
.es
e Knutson
omp~.in
ame
ame
t
! f
~
1 Address 17 Gvashington Ave. North Address 78th & Chicago
Cjty T`linneapolis zip 55401 Cjty Richfield
I,f Telephone 333-2111 County Hennepin
I,
~
~ I. BASIC INFORi•1ATI~N (~/ v~here appropriate)
' x Ner~1 Construction % Family x Rental `~ Limited Profit
, Rehabilitation 1 00 % Elderly Co-operative Non-Profit
~~ II. DEVELOP~•1ENT TEAM
(Provide Warne, address and telephone number)
Knutson ~Sortgage & Financial Corp.
Processin !l ent Consul tart 17 Idashin ton Ave. ?do. 55401 333-2111
9 9 ( ) ~
~ .-
Dorse f•7~~rauart et.al. Car es 11. Geer st National ELK 5~-~~-
Y, _ ,
Attorney: F~rnest A. Lindstrrnl 730 ?.nd A~~e, S. 339-83~?6
Wold I~sso..iates - Robert Nelson
APCh1tE'C ~ ?'n St Paul 7'777
t Osbcrn~ built i ~ 22 3
Knutson Construction Ccs*r,~~ny
General Contractor: '17 ;~.'ashirgton Twe_ ~;o. ^'_ols. 55101 333-2111
The Stuart Comoration Southgate Office Plaza
Marketing-f•tanagement Agent: Stuart Nolan 835-4202
~ Qther (specify):
~~ III. DEVELOP~•1ENT DESCRIPTIO^~
Number of Units ape of Duildinys Number of F3uildings Number of Stories
Approximate
Size Cost of
Unit (Net Rentable Projected Utilities
. ~ ,
~~
7y~ humber Sq. Ft.) Rent Paid b Occu~~r,t
______
Eff.
1 BR 144 506 267 -
-
2 8R 6 70Q 319
3 BR
4 BR _
' ~ 5 BR `
>'olnl.
Utilities to be paid by Occupant: _~.
No. of Parking Spaces: Covered - (~_=,/mo.) Surface ~~ _ ($ - _/rno.)
Rental Space Included; 1. Connuercial - sq. ft~. _ Est. Income/yr.
2. Professional ___ sq. ft. Est. lnconre/yr.
,#
CITY OF RICHFIELD, MINNESOTA
Office of Executive Director
HRA Letter No. 17
Agenda July 14, 1975
Housing and Redevelopment
Commissioners
City of Richfield
Gentlemen:
Subject: Designation of Official Depository
Attached to this HRA letter is a resolution naming Summit State Bank
of Richfield as the official depository for the Housing and Redevelopment
Authority of Richfield for the year 1975. It is estimated that the maximum
amount of funds on deposit at any time during this year would not exceed
the 1/3 mill property tax levy, approximately $40, 000, and that no additional
collateral would be needed to be placed on the account because it is auto-
. matically covered by FDIC insurance up to $100, 000.
We are recommending the establishment of the official depository with
the Summit Bank primarily because the Richfield Bank and Trust has been
established to handle the grant monies that the city is receiving. it is
recommended that the council adopt the attached resolution.
Respectfully submitted,
l!G" /"-
Wayne S. Burggraaff
Executive Director
WSB/eja
cc: Finance Director
Planning Director