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07-20-81 agendaHOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 27 Agenda July 20, 1981 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Presentation on Minnesota Industrial Revenue Bond Act - Richfield State Agency At the July 20, 1981 concurrent city council-HRA meeting, there will be a presentation on the proposed development of the Richfield State Agency concurrent with the public hearing on the request for Industrial Revenue Bond financing. The HRA has previously referred the acquisition of the Kentucky Fried-Chic};en and the Hagen Fur property to the Planning Commission. KN/eja • Respectfully submitted, Karl Nollenberger Executive Director <~;~.w, HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 26 Agenda July 20, 1981 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: NAHRO 1981 National Conference Members of the HRA have previously been sent information concerning the scheduled national conference of NAHRO to be held October 25 - 28, 1981 in Colorado Springs, Colorado, and a NAHRO Educational 69orkshop to be held July 31-August 2, 1981 in San Antonio, Texas. This item has been placed on the July 20, 1981 HRA agenda for discussion purposes, and to ascertain if any members of the HRA will be attending these conferences. KN/eja Respectfully submitted, ~ ;, ~~,~st_nl ~~ ~,,,a,~ Karl Nollenberger Executive Director R Sunday, October 25 11:00 a.m.-6.00 p.m. Registration 12:00-2:00 p.m. Exhibit Hall Opening and Reception 2:30-4:30 p.m. Opening General Session Welcoming Remarks Keynote Presentation. by the Honorable Jake Garn, United States Senator, State of Utah; Chairman, Senate Committee on Banking, Housing and Urban Affairs 5:00 p.m. President's Reception and Exhibit Viewing Monday, October 26 8:00 a.m.-4:00 p.m. Registration 9:45-11:45 a.m. General Session Presentation by The Honorable Samuel R. Pierce, )r., Secretary, .Department of Housing and Urban Development Presentation by a nationally known speaker on "Change and Crisis Management" 12:00-1:30 p.m. Reception and Exhibit Viewing 1:45-4:15 p.m. Five Concurrent Sessions 2 3 4 E 5 Operating Options for Housing Authorities Rehabilitating and Modernizing Housing Why. be a Public Housing Author- ity Commissioner or Public Ad- ministrator? Can Tax Policies Alone Stimulate Housing Production and Urban Revitalization? Deregulation of Housing and Community Development Pro- - grams 4:45-5:45 p.m. ~' '-' ~ ., ` NAHRO's Annual Business Meeting 4 > T ~~ 4B 6:00-8:00 p.m. Reception and Exhibit Viewing Tuesday, October. 27 8:00-9:30 a.m. Exhibit Viewing, Coffee and Danish Tuesday's program offers delegates a variety of meeting, tour, and rec- reational activities that will .provide opportunities to view the results of housing, community development, and economic development pro- grams; to discuss major program and administrative issues; and to enjoy the. unique setting of the Broadmoor and its surroundings. 8:30 a.m: 4:00 p.m. A Choice of Three Program Tours and Discussions At each location, delegates will meet with civic leaders, public officials, and business leaders to view and discuss the effect that housing and community develop- ment programs have had on their community. (DELEGATES MUST PRE-REGISTER FOR THESE TOUR SESSIONS ON THE CONVENTION REGISTRATION FORM) 1. PUEBLO, COLORADO, a steel mining city, to view and discuss the impact of industrial modern- ization on jobs, tax base, and community housing and develop- ment policies. 2. COLORADO SPRINGS/AIR FORCE ACADEMY to tour the facilities and discuss the im- portance of federal installations to community development and housing policies and programs. 3. MANITOU SPRINGS AND CRIP- PLE CREEK to tour revitalized mining communities, exploring the use of historic preservation, recreation and tourism efforts to strengthen local economies and livability. 8:30 a.m.-4:30 p.m. A Choice of Recreational Activities The Broadmoor and- Colorado Springs offer unexcelled recreational facilities for creating a balance be- tween work and play. Through the Broadmoor staff, arrangements can be made to reserve time for you, your professional. associates, and family to engage in a variety of recreational activities. 9:30 a.m: 4:00 p.m. A Choice of In-Hotel Sessions Several concurrent sessions will be held in the Broadmoor. They are designed to address key areas of ad- ministrative management. These ses- sions will be presented twice during the day: - how to deal with stress and crises conditions on the job and be effective under these circum- stances; - how to manage time and people; - how to balance work and play; - how to realize professional growth and retirement needs;. - how to work with community groups, community leaders, and the media. bVednesday, Oc#ober 28 9:30 a.m:12 a.m. General Session Major Addresses on Energy Conser- vation and Resources, covering: - the impact of energy resources on local development patterns; - energy conservation and produc- tion programs in the Mountain Plains region and how they af- fect the rest of the country 1:45-4:30 p.m. General Session A debate on how America can meet its housing needs and how cities can be revitalized: the "free market- place perspective vs. the "public intervention" perspective. The debate will be preceded by a presentation on the public's percep- tion of housing and urban revitaliza- tion. 6:00-7:00 p.m. Cash Bar Reception 7:00 p.m. Banquet and Dance Thursday, July 3~ Comprehensive improvement. Noon-2:OOp.m. assistance program Luncheon and Guest Speaker 3:00-7:30 p. m. ^ Section 8 housing (Luncheon is also part of the New Registration ^ Tenant services Commissioners Orientation Program) 6:00-7:00 p.m. ^ Communit and economic de- y Reception velopment programs 2:15-5:00 p.m. 3:30-5:30 p. m. Sessions on the Commissioner as Tours of San Antonio's Housing and Leader in the Board Room Community Development Activities ^ Legal issues and liabilities Frlday, JUIy 31 6:00-8:00 p.m. .^ Communication and interaction ^Problem solving and decision Fiesta k' 8:00 a.m. Registration 9:00 a.m. Opening Ceneral Session O Welcome ^ Keynote address 10:30 a.m.-Noon Sessions on the Commissioner as - Public Figure in the Community ^Public and community relations ^ Political strategies and lobbying ^ Grantsmanship - ,1:30-3:30 p.m. General Session on HUD Programs preceded by Roundtable Clinics ^Development and management of .public housing ^ Security Saturday, August 1 9:00 a.m.-5:00 p.m. Ne~v Commissioners Orientation Program 9:00 a.m.-Noon Sessions on the Commissioner as Employer and Policymaker for the Organization ^Policymaker vs. administrator: clarifying. the roles and responsi- bilities ^ Employment practices and policies ^Assessing and analyzing financial documents, annual reports,. and other data ^ Setting priorities and directions ma mg ^ Unique role of tenant commis- sioners ~a~lladay, Auga~st 2 9:30-10:30 a.m. General Sessions on Federal Legisla- tion, Budget, and Program Regula- tions .and their Impact on Local Housing .and Community Develop- ment Operations . 10:30-11:30 a.m. Open Meeting of the NAHRO National Commissioners Committee ^ Review of accomplishments ^ Discussion of new activities ^ Workshop evaluation Note: Workshop sessions will be held at both the St. Anthony Hotel and La Mansion del Rio. Special Program Option for New Commissioners On Saturday, August 1, delegates may choose to attend a special orientation program for new commissioners. This. all-day program will provide new com- missioners with basic information about public housing and community develop- ment activities; acquaint them with their roles and responsibilities; provide the opportunity for open discussion and questions concerning the opportunities, liabilities, and challenges of being a commissioner. 4K J PRF:SID.ENT LAW OFFICES _ M11ANARIN(: AT°fORNFa' Bernard Becker .Icrenn Lune vl('EPRESII~F.\TS ufthe LITIGATION/TRAINING I)IRF;('TOR Laura.Coopcr Michael R Eargionc Michaelsuuivan LEGAL. AID SOCIETY OF MINNEAPOLIS,.INC. sUPF:RVISINC ATTORNF:v TRF:ASI-RF:R Kathleen. M. Davis Fclino do la Pcna DOWNTOWN OFFICE ATTORNEYS EXE('CTI~'E DIRECTOR 222 (:RAIN F.XCH~SNfF Bt'I~.llING Susan. L. Carroll Se}•mour J. Mansfield 323 FOURTH' A~ FiNt.tp SOUTH Carol Casebolt Paul C. Clabo AGF:N('v AD~11\TSTRATOR 111NNF:APULIS; A71tiNF:SOTA 5545 Laurie N. Davison Roger C Cobb (bt2) 332-1441. Mary G. Grau Bricker L.. Lavik July 16, 1981 Joyce Y. Miyamoto Philip I. Nelson Richard A. Pavel LEGAL ASS)STANTS Matilda Howard Carolyn J. Lawrence Benjamin J. Mintz Bruce PalmbOrg, DorisSlataghter Richfield Housing 'and Redevelopment Authority 67.00 Portland Avenue South Minneapolis, Minnesota 55423 'Dear Mr . Palmborg Please be advised that this office is :representing he Woodlake Residents Association in the matter of the.. proposed termination of their Secton.8 tenancies and their eligibility for.-relocation benefits. These issues will- be addressed in turn. I. Eviction The tenant families have very.. serious concerns about the terminat on of their. Section 8 tenancies during the term of .their. leases.. A fedexal court addressing the issue has found a Section 8 lease may be terminated during its term only. for good cause relat ng to tenant misbehavior. In addition, HUD regulations at 24 C.F.R. ~882.107(b) state that the term of the lease shall be for :not less than one year, but also provides that leases may allow termination upon 30 days notice. However, the federal court in Jeffries vs. Georgia Residential Ffinance Authority held (.hat there mus a goo cause to terminate a lease.. during its. term. Therefore, in the absence of 'a mid-term termination based on tenant misbehavior, a Section 8 tenan has the right to a tenancy for at least the term of the"lease. The particular circumstances in this case in which the Richfield Housing Authority is the owner. of the rental property, also raise questions as to the evictions. The federal regulations. governing the Section 8 program at 24 C.F.R. PART 882 provide the. framework for administering the Suction 8 program. However, these regula-tions do not apply to housing which is owned by the Housing Authority administering the Annual Contributions Contract. 24 C.F.R. 822.101(a)(2). Lt is my understanding that Richfield is included in the (Mp~.OdMW~ay The Law Offices oCthe Legal Aid Sgcicty of Minneapolis @flCF~ are parb of t.. Central Minnesota Legal Services 1 Bruce Palmborg July.16, 1981. Pag a Two Metropolitan Council's application for federal Section 8 funds and is involved in administering the program. Since the Richfield Housing Authority is the owner leasing the units, the Lease and Grievance Procedures found at 24 C.F.R. Part 866 apply to these tenants. 24 C.F.R. §866.1. Therefore., it appears that when the Richfield Housing Authority acts as landlord, it has an oblig ation not to terminate leases except for good cause involving the tenant breach of the lease pursuant to the procedures otherwise applicable to public housing. The tenant f amilies question how the Richfield Housing Authority can have the benefit and advantage of renting thro ugh the Section 8 program but not accept the oblig ation of housing tenants for the term of their leases in the absence of tenant misbehavior. II. Relocation Benefits In addition to the concerns of the residents over their eviction, they question what assistance they are entitled to if they are displaced at some point. It is my understanding that. the area these homes are located in has been designated as a tax increment district, known as the Lyndale/HUB/Nicollet Redevelopment Area, pursuant to Minnesota Statutes, Chapter 462. In addition, the area has been designated as a Neighborhood Strategy Area for Community Development Block Grant purposes .and CDBG funds have been used to provide street improvements and acquire at least one house. The Richfield Housing Authority has been acquiring the homes in the Lyndale/HUB/Nicollet Redevelopment Area by negotiation and in turn renting them out to families under Section 8 Existing Ho using .Program. The Richfield Housing Authority is now displacing the tenants without the provision of relocation assistance and payments. It is the tenant families' position that they are entitled to the assistance required by the Uniform Relocation Act. The tenants are displaced persons, as that term is defined at 24 C.F.R. §4 2.49 (. a) (2 ) in that they are to be d isplaced as a result of the written order from the acquiring agency to vacate .for the project. 13y virtue of the fact that they were-not given written notice that they would be ineligible for relocation payments and other assistance prior to occupancy, they are not excluded from the definition of displaced person, 24 C.F.R. §42.49(d) (2). Therefore, the tenant families are displaced persons eligible for relocation assistance and payments. 24 C.F. R. §§42.201 and 42.301( a) . The relocation assistance provided by the Uniform Relocation. Act should be prow ided to the tenant. f am it ies because of the federal involvement in the Lyndale/ HUB/Nicollet Redevelopment Project. Federal financial assistance has been Bruce Palmborg July 16, 1981 Page Three provided by funds from the Community Development Block Grant and Section 8 programs. 24 C.F. R. 842.61( a) and (c) . There may also be other federal financial assistance involved. The Section 8 funds constitute federal financial assistance in that the revenue from the Ho-using Assistance Payments goes to the Richfield Housing Authority, which is undertaking the project and is generated by land which is part of the project. The CDBG funds need not. be spent for acquisition in order to trigger relocation benefit eligibility 24 C.F.R. 842.79(c). Moreover, relocation benefits and services are required under Minnesota state law, independent of the federal statute. Minnesota Statutes, Section 117.50-117,56. NIinnestoa law states that in all acquisitions undertaken by an acquiring authority in which, due to the lack of federal financial participation, the Uniform Relocation Act does not apply, the. authority .shall provide all the assistance required by the U.R.A.. M.S.A. 8117.52.. Acquisition is defined- to include demolition. M.S.A. 8117.50, Subd. 4(d). Since these tenants are being displaced to allow the demolition and removal of the homes on the property for the project, they are entitled to appropriate relocation assistance and payments under the Uniform Relocation Act. ' The tenant families, as eligible displaced persons, are entitled to a number of services and payments which includes,.. b ut is not limited to: a) Relocation services, 24 C.F.R. 842.211; and b) Ninety day notice, 24 C.F.R. 842.217; and c) Moving and related expenses, 24 C.F.R. 4 2, Subpart D or Subpart E ; and d) Av ailability of comparable replacement housing prior to displacement, 24 C.F.R. 842. 209 The tenants in the Woocilake Residents Association request that no evictions take place until these issues are resolved. Please let. me know yo ur position in this matter as soon as possible. We would be happy to meet with you to discuss this matter furtfler. ~. r~cerel~y, L A~~ SAC ~ETY, • r'icker "L. Lavik ttorney at.Law BLL/jh cc: Mary Bjorkman Phil Katzung John Connors Woodlake Residents Association HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 25 Agenda July 20, 1981 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Request for Authorization to Enter Into a Construction Agreement On April 20, 1981, the HRA approved Lida Construction Company as the general contractor for a scattered site FHA Section 235 Housing Program. It is appropriate at this time for the HRA to authorize the Chairman and the Executive Director to execute a construction agreement with Lida Construction. This will allow construction of this project to begin as soon as the HRA has finalized purchase of the lots owned by the ~~Iinnesota Departrnent of Transportation (MnDOT), located at 6216 Pillsbury and 6225 Harriet Avenues South. The HRA also authorized these acquisitions on April 20. After Lida Construction was approved as the general contractor, the following events occured: - Lida Construction submitted a letter of credit for $10,000, confiriming their intent to execute a construction agreement and initiate the project. - The house plans and specifications were submitted to FHA to receive a mortgage commitment, utilizing the Section 235 program. A commitment for each house was received May 13, 1981. - The HRA received a letter from MnDOT on May 4, 1981, offering to sell the two parcels mentioned above for a total of $21,000. Negotiations for the purchase of these lots have continued since that time and are now being finished. - The staff determined that a portion of the CDBG bonus funds utilized for this project could also be used for three related types of work: (1) curb cuts; (2) sewer and water service to the lot line; and (3) removal of abandoned foundations or tree stumps that would hinder construction. By using CDBG monies, the cost of each house will be kept within the FHA 235 program limits. Informal bids for each type of improvement will not exceed $5,000 and can be accepted by the Executive Director, if the HRA is agreeable. The lowest acceptable bid received would be selected. HRA Letter No. 25 -2- July 20, 1981 - Application was made to the planning commission and city council for a variance to the lot width at 6255 Harriet and the lot width and lot size at 6216 Pillsbury Avenue. The variance that will allow construction at Harriet Avenue has been approved. The variance for Pillsbury Avenue was deferred by the city council until staff receives written confirmation that an additional five feet in lot width can be acquired from P~`,nDOT. written verification is anticipated to be received in the next week. •> ~ ~~_ - The staff advertised the proposed houses for sale, received qualified applicants, selected possible purchasers for each house and is waiting for con- firmation from FHA that an eligible family has been found for each house. The qualified purchasers will be brought to the HRA for approval at a later time. A public hearing will be necessary prior to completing the sale. Qualifying of purchasers is important now because Lida's costs of house construction must be paid at project completion from proceeds of the sale of the houses. Thus, the HRA should feel confident that money will be available to pay the contract amount at completion. - A construction agreement is now being drafted by HRA legal counsel. The proposed construction agreement includes the following provisions: 1. A description of work to be performed at each site: construction of a four-bedroom house on each lot in conformance with plans and specifications approved by HRA and FHA; 2. The contract price, not to exceed a total mount of $100,000 or $50,000 for each house; 3. The method of contract payment: the contract work will be recommended for payment when work is completed to the satisfaction of staff and the parcels have been sold; 4. The time of completion: target deadline being November 1, 1981; 5. Adequate insurance protection for the contractor, contr. actor's employees, and the structures being built; 6. Additional contractor requirements: that the sites be kept free of debris during construction, that employees work under proper supervision and within reasonable hours and that lien waivers be provided prior to payment at project completion. HRA Letter No. 25 -3- July 20, 1981 7. That approval of the construction agreement is • contingent upon approval of a variance for the property located at 6216 Pillsbury Avenue, by the city council. It is recommended that the HRA authorize the Chairman and the Executive Director of the Housing and Redevelopment Auth- ority to execute the construction agreement with Lida Construction, Inc., by adopting the attached resolution. The resolution also authorizes the Executive Director of accept informal bids and in- itiate work for each type of site improvement. Respectfully submitted, Karl Nollenberger Executive Director KN/eja cc: Community Development Director Housing and Redevelopment Coordinator • HRA RESOLUTION NO. RESOLUTION AUTHORIZING EXECIFT'ION OF A INSTRUCTION AGREEN~]T AND THE INITIATION OF RELATED IMPROVE~]TS WHEREAS, the Housing and Redevelopment Authority of Richfield (HRA) has selected Lida Construction,. Inc. as general contractor of a Federal Housing Aclninistration (FHA), Section 235, scattered site new construction project in furtherance of the New Home Program; and WHEREAS, .the HRA has authorized the negotiated purchase of certain real property pursuant to and in furtherance of the wane program, said real property being described as follows: part of Lot 9, Block 2, Kendale Addition (6225 Harriet, Avenue South) part of Lot 5, Block 4, Betcher's Addition (6216 Pillsbury Avenue South) WHEREAS, construction plans and specifications have been approved by the HRA.and FHA for Lida to o~nstruct housing on these previously described sites; and WHEREAS, a oonstruction agreement will be utilized to ensure that Lida Construction performs in accordance with plans and specifications; and WHEREAS, the HRA will be responsible for some related improvement work, including site clearance and installation of utilities to the lot line and entrance curbs; and Wf~REAS, the Executive Director must solicit informal bids of less than $5,000..00 for these improvements and initiate the improvement work. NOW, 'THEREF'ORE, BE IT RESOLVED BY ~ RICHFIELD HOUSING AND REDEVELOPMELJT AUTHORITY: 1. That the Chairman and Executive Director are authorized to execute a construction agree-~azt with Lida Construction, Inc., containing substantially the terms, conditions and covenants described in HRA Letter No.~ dated July 20, 19.81, a copy of which is attached hereto, provided that site variances are granted and purchasers are qualified; and 2. That the Executive Director is authorized to solicit bids and reject all such bids or award and contract for the site work at 6216 Pillsbury and 6225 Harriet Avenue South when appropriate to do so. Passed by the Housing and Redevelognent Authority of Richfield this 20th day of July, 1981. Thomas E. Harms, Chairman ATTEST: Michael Freeman.., Secretary • O `NNE~Tq'L n ° Minnesota Department of Transportation ~. 3 per' Transportation Building, St. Paul, MN 55155 ~yTOF TFtP~~~ . ~, July 17, 1981 Room 511 Phone 296-8566 Mr. Bruce Nordquist _ City of Richfield 6700 Portland Avenue „ ,.:Richfield, Minnesota 55423 In reply refer to: 360 j`` ~ S.P. 2782 (35W=394) 915 Hennepin County Parcels 21 and 38A Sale of Excess Right of Way Dear Mr. Nordquist: Your letter of June 2, 1981 asked that the size-of one tract to be sold be increased by 5 feet and that the value of-both sites be lowered because of old foundation material which might be present from the former homes on these sites. • We have .now received confirmation from our District Office in Golden Valley that the tract in Lot 5, Block 4 Betchers Addition to Richfield may be increased to a 50 foot width. From the. enclosed legal description you will see that the south 45 feet of this Lot was acquired. as "excess" right of way and given Certificate of Title No. 329631. However, the remainder of the lot was to remain permanent right of way and therefore was given Certificate of Title No. 329632. Since 5 feet of the subject tract was purchased with 90~ federal funds we now must secure the approval of the Federal. Highway Administration for the sale and appraised value of the 5 foot strip. The State will not issue a Quit Claim Deed to the City until this approval is received from the Federal Highway Administration. .~-~.,~The values of the two sites was discussed with our appraisal staff, and the ~,~ State's values were arrived at with the knowledge that the old foundation material was still on the sites. Therefore we will not be adjusting the price on either site. After you have reviewed the enclosed legal description-and discussed this sale with the planning commission please direct the City's reply and payments two separate checks made payable to "Commissioner of Transportation - Trunk Highway Fund' to Mr. Ken Kloek, Room 509 at the above address. Sincerely, ~i /~/4~se/yv W. M.(_Swanson, Acquisition Engineer Office of Right of Way Enclosed: Legal Description An Equal Opportunity Employer '~ si! • July 14, 1961 RW00000478G DESCRIPTION FOR SALE OF EXCESS LAND PARCEL 38A S.P. 2782 (35W=394) 915 All of Tracts A and B described below: Tract A. The :.-outherly 45 feet of the easterly 135 feet of Lot 5, Block 4, Betcher's Addition to Richfield, according to the plat thereof on file and of record in the office '~ of the County Recorder in and for Hennepin County, Minnesota, the title thereto being registered. as evidenced by Certificate of Title No. 329631; Tract B. That part of the easterly 135 feet of Lot 5, Block 4, Betcher's Addition to Richfield, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota, .which lies between two lines run parallel with .and distant 45 feet and 50 feet northerly of the south line- of said Lot 5, the title thereto. being registered as evidenced by Certificate of-Title No. 329$32; • Subject to the following restrictions: No access shall be permitted to Trunk Highway No. 394 renumbered 35W from. the lands herein conveyed; except that access shall be permitted along the east line of said lands to an outer lane only. ' r 5a 1 _ . '- _ l~a~ ' ~ - ~. i ~' ~; . ~ ~ c. 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' ~ _ ~~ t ----- -. ____.._~.>t.-~+--__ 7 ~ Cla !~ , . ~ ~`( y 1 ~ w 1 ~' i~ t~ ~LI ~ ~. 1 ~ ~ c I i t J ~.i' ~ i .~ f t ~ y ~ t t ~ ' ~ ~" ' ~ ~ ' '~ ~ ,1; ~ I ~{~ P~ I . ff; (~ ~~F . ~; ; ~~ , ~~~ 4 ~ ~1 fit: ;i ~ ~ ,~ '~ JAS t ~ ~, I t ~ ' j -:, _._ ., .. ,~ i ,~ _ ___ .. - - _ __ _ . _. _. ._ _..,._. _...._ ~ .. r, __.__.1. .w, _,_ .. _ t~~Y ~ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 24 Agenda July 20, 1981 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Referral of Possible Purchase of 6700 Lyndale Avenue to the Planning Commission The commercial property at 6700 Lyndale Avenue has been placed on the market. The purpose of this letter is to seek authorization from the HRA for the staff to initiate formulation of a strategy which would result in the rehabilitation, and possible expansion, of this structure. One possible element of the strategy would provide for the interim purchase of the property by the HRA. Were this to occur, it would be necessary for the Planning Commission to find such purchase to be in conformance with the comprehensive plan. Because the property is now on the market, an official HRA action, • such as a referral to the Planning Commission, would be desirable at this time. The commercial property on the west side of Lyndale Avenue and south of 66th Street was identified in the 1979 L/H/N plan modification for rehabilitation. There are three structures within the plan modification area. The Lyndale Hardware structure is now being expanded and renovated. The rehabilitation of 6700 Lyndale would mean that two of the three structures would be renovated and would represent a significant achievement in the overall development goal for the area. Major elements of stratgey for this site would delineate a process for determining the following: 1. The extent of rehabilitation needed; 2. The feasibility of expanding the second floor; 3. The feasibility of providing "in-fill" development on Graham Avenue between this property and the Trestman Music parcel; 4. The future use of the three parcels on Graham Avenue between this property and the multi-family site; 5. The most desirable user mix for the buildinq_ and whether they should be tenants or owners (a condominium form of ownership may be desirable); and, • G. Whether the HRA should purchase the property directly and sell it for rehabilitation or only facilitate the purchase by a private property. HRA Letter No. 24 -2- July 20, 1981 Because this property is for sale, it offers the HRA a unique opportunity to achieve another portion of the overall L/H/ICI project goals. Therefore, it is recommended that the HRA refer the proposed purchase to the Planning Commission for a finding re: its conformance with the comprehensive plan, and authorize the staff to formulate a specific development strategy for the site. Respectfully submitted, Karl Nollenberger City Manager KN/sh cc: Community Development Director Housing and Redevelopment Coordinator • ~~,. r....._.. - - I-35W . ~ ~ I O OUPUYI AvC -- - irwW n0 , ~ - ~ ~ - n ~'e~._' ~ _ _ . _ ~ m EoLE_. ~E. _ _ ~ -/ ~ ~ n o ~~ m o ~ p'`~~, _ ~'EaET RR.ANT AvE - --- _- , D t-ai ~ ~ !' A oR¢R _AVE _, ~ e~ ' O • 1 _ i c __ i V1 o J, .. ._ d'° ~LS~Et~ - ~ ~ Z - ---- ,~ ~ ~l _ - _` - ~_ ~ - ro; y __ _ - ---- - - --- I . _ _` ' ~ _ \ ~ ~_ y I -~_. _ HARRIET 4V E. -. ._~_ ICI - i- -1- ~ --=- _-_ ~~ - ~ -- ---- ---- T' ~ I ------- --- -r - - 1 -- ~ _1 -- i ---- --~ -- --------i ~- - __ -- _ i ~ -_- ___. ~__.__ ~ ------_-~~ ________ .___'-.-.. -. _ PLf ASANT AVE. _ _. - = ~ n 3 ' _ _ ~_____- t __ - __ '~ o, ii f ~ _ _ _ -_-- 0 -_ 1 PI ' -- -- ~ lLSRURY AV[. Q Ot C ~ ~ __-_._- -- r. _ ~ _.__.. _._ ~ . M >m _i - ~~-~ -~W [NTWOR TR Av E. .y ~O p ~ _. _ _ --_ - -. a ~o ~ ~ ~ ' ~ I; zr ------ . _. I c ~r I O n~ v i __ _ i - ... _ _ I ~~ ~ 1 ~ ~ _ ~ ~ 1 ~ 1 - _ RIf UtLET .r E. -- - ! - ----------~--J ~~ i ~i D ------ .... _ _ -c ~ _ - -- -- -,_ --------- ~ ~a , _ A -------- L`lt`:3®AL~ /H1.~8/ t~l1Ct~LL~'~' 1 C1 ° ~ ~ C.^.~3~~3~~ZC~AL ~~lt~'~©VE~1lt~i1l~' HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 23 Agenda July 20, 1981 • Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Extension of Loan to HRA, L/H/N Redevelopment Project During 1976, 1977 and 1978, the Housing and Redevelopment Authority purchased several properties on Graham Avenue, including the property at 6600 Graham. Those purchases were made upon request of the property owners. The source of funding for these acquisitions was a loan from the the city's permanent improvement revolvinq fund (PIR) The PIR loan was to be paid back to the city within three years; however, because of delays in implementing a development plan for this area, the loan has not yet been paid off. The HRA anticipates redevelopment of the area beginning in the fall of this year. Therefore, it is recommended that the attached resolution be adopted which authorizes the execution of a~ extended loan agreement with the City of Richfield for $50,000 at a 9% annual interest rate for a one year period. Respectfully submitted, / ~, Karl Nollehberger City Manager KN/ ah cc: Community Development Director Housing and Redevelopment Coordinator Administrative Services Director Financial Coordinator HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE EXTENSION OF AN AGREEMENT TO BORROW MONEY FROM THE PER.^SANENT IMPROVEMENT REVOLVING FUND WHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to continue to borrow money for the purpose of funding certain real property purchases pursuant to and in furtherance of the LHN Redevelopment Project adopted by the city and HRA, said real property being described as follows: Lot 11, Block 3, Fairwood Shores, Hennepin County, Minnesota (6600 Graham Avenue); and WHEREAS, the HRA is authorized by the Minnesota Statutes, Section 462.445, to purchase real property and to borrow money from the city therefore; and WHEREAS, the city is authorized by Minnesota Statues, Section 462.581, to make loans to the HRA in aid of projects; and WHEREAS, the HRA will pay a 9o interest rate on the $50,000.00 loan to be effective as of July 1, 1981, for a one year term. . NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF RICHFIELD: 1) That the Chairman and Executive Director be, and hereby are, authorized to execute, as agents to the City of Richfield, an agreement with the City of Richfield entitled "Loan Extension Agreement," a copy of which is hereby given Clerk's File No. HRA and is ordered placed on file. 2) That the Executive Director be, and hereby is directed to present said agreement to the City of Richfield for its consideration and acceptance. Passed by the Housing and Redevelopment Authority of the City of Richfield this 20th day of July, 1981. Thom~~s E. Harms, Chairman ATTEST: Michael Freeman, Secretary