12-15-80 agendaHOUSING AND REDEVELOPMENT AUTHORITY
' ~ n f f =-- ~ ^~ E~ec~ative Director
HRA Letter No. 46
Agenda December 15, i980
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Com~r~iss inners
Subject: Authorization to Purchase 709 Graham Avenue
On March 24, 1950, the HRA established just compensation
and authorized the staff to negotiate for purchase of the prop-
. erty located at 709 Graham Avenue. This property is one of
three residences on Graham Avenue which are not within the coop-
erative housing development site, but are designated in the
L/H/N Redevelopment Plan for acquisition by the HRA. One of the
three, 715 Graham, is already owned by the HRA. Mr. Vernon
Blanck, the owner-occupant of 709 Graham, has requested the HRA
to purchase his property.- becuase he is clew to r2tiremer.t and
• desires to move from the area. In January, the HRA will be re-
quested to establish just compensation for the third property
at 721 Graham Avenue.
Mr, Blanck was rot happy with o>>r original offer of $52,000.
Subsequently, he retained his own appraiser, I~ir. Haeg, who val-
ued the property at $65,000. Vern Anderson, City Assessor, val-
ued the property at S60,000. N1r. Hen~._~_~ ~,..~ ~:~. ~~.. ,- ~-.- -~'-,
indicated that the appraisal reports indicate a value of $62,000.
The property contains 1,358 square feet. It includes two bed-
rooms, a livingroom, a dining room, kitchen, and bathroom. At
the rear of ~hc ion is a two car garage.
Mr. Blanck is eligible to claim up to $16,000 for relocation
benefits. however, if he follows through on his current plans,
the relocation benefits he would receive would be significantly
less, for he may not be relocating to a standard year-round
dwelling. Thus, he would be eligible for only moving costs.
On ~ti9arch 24, 1980 the HRA requested the city council to loan
them the monies for this purchase from the city's PIR fund at
the rate of 5 percent per annum for three years. On the same
day, the city council agreed to make these monies available.
This property, along with the two other homes adjoining it,
will probably be cleared in the spring of 1981. The sewer and
`` ~ water 11t111 `1L.;~ SL?"~, lI~C tI':E' pI-CpE~1"t~7 ~.r~? C~nneC'=E'C~ ';; 1 =t1 ila1?7S Cp
~ HRA Letter No. 46 -2- December 15, 1980
66th Street, and will be severed with construction of the
cooperative housing project. The cost to provide continued
utility service to these homes , ~...:ld be abo;_rt $3 , 000 .
It is recommended that the HRA adopt the attached resolution,
authorizing the purchase of 709 Graham Avenue in the amount of
$62,000.
Respect//fully,sjubmitted,
T~arl '~lollenberger
Executive Director
KN/eja
cc: Community Development Director
Housing and Redevelopment Specialist
•
,~
HRA Resolution No.
RESOLUTION AUTHORIZING THE
BORROWING OF MONEY FROM THE
CITY OF RICI~FIELD A"dD THE
PURCHASE OF REAL PROPERTY AT
709 GRAHAM AVENUE
WHEREAS, the Richfield Housing and Redevelopment Authority
(H RA) desires to borrow money for the purpose of purchasing certain
real property pursuant to and in furtherance of the L/H/N Redevelop-
ment Project hereto-fore adopted b~~ the Cite of_ Richfield (the "City")
and the HRA, said real property being desc-ribeci as follows:
Lot 3, Block 3, Fairwood Shores, Hennepin County, Minnesota
WHEREAS, the HRA has caused appraisals of the subject property
to ~e made and has carefully considered such appraisals, and
WHEREAS, the HRA is authorized by 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 Statutes Section
462.581 to make loans to the HRA in aid of projects,
• WHEREAS, the Housing and Redevelopment Authority has instructed
the Executive Director and Attorney to commence negotiations for the
purchase of the real property described above, and
WHEREAS, the negotiations for the above described real property
has resulted in the execution of a purchase agreement by the seller,
NOW, THE RE:~'OL:E, ,'_E I`l RESOLVED BY THE RICHFIELD HOSI`v'G ~~~~
REDEVELOPMENT AUTHORITY:
1. The Executive Director is directed to execute the purchase
agreement to purchase the above described property for Sixty-Two
Thousand and no/100 dollars ($62,000.00)
2. The Executive Director is directed to loan $62,000 from the
City per the Loan Agreement approved by the Housing and Redevelop-
ment Authority and City Council on March 24, 1980.
Passed by the Housing and Redevelopment Authority of Richfield
this 15th day of December, 1980.
Thomas E. Harms Chairman
V. L. Luettinger Secretary
HOUSING AND REDEVELOP"-TENT AUTHORITY
Office of Executive Director
~<
HRA Letter No. 45
Agenda December 15, 1980
Housing and Redevelopment
Authority Commissioners
City of Richfield
Commissioners:
Subject: Establishment of Just Compensation and
Authorization to Purchase Property in
the L/H/N Area
Three residential properties within. t~~ie site to be ~~_._ ~L_
development of the Lake Shore Drive Cooperative are not yet owned
by the HRA: 6608, 6611 and ;27 Graham Avenue. The purpose of
this letter is to request that the HRA establish just compensa-
tion ~,r_d a,~:'~':-.~riz~ the staff to initiate negotiations for acquisi-
tion of theee ~-roperties.
6608 Graham
T~,_e owner-occupants of this property are ^ir. ~ Mrs. Petersen,
The dwelling is a one and one-half story single family structure
built in 1952. The first floor contains a living room, dining
room, dining area, kitchen, two bedrooms and a bathroom. The
upstairs is finished and contains two bedrooms. The basement is
partially finished. At the rear is a three season porch. A
singe car gang-~: is ~:~ she back cf the l;.t. The property has
been well maintained throughout.
The firm of 0. J. Janski and Associates valued the property
at $75,000. Vern Anderson, city assessor, valued it at $66,000.
P~Ir. Hennessy, a Review Appraiser, placed just compensation at
$71,500.
The Petersons will be eligible for up to $16,000 in relocation
benefits. At t:zis time, they are evaluating three alternatives
for relocation: building a new home, purchasing an existing dwell-
ing, or moving their hc~~~se to a ~~acant lot.
6611 Graham
This single family home is owned by Mr. Bernard Shimamoto of
Honolulu, Hawaii. It is occupied by a tenant. The small one-
story structure was constructed in 1951. The first floor contains
a living rcom, small dining area, two bedrooms, kitchen, and
bathroom. Neither the attic ner basement is finished. A drive-
-,,,-,;- is pz-o ;,;,aed fc~ off-street _ ar'.~ing
HRA Letter No. 45 -2- Decernber 15, 1980
O.J. Janski and Associates valued the property at $45,200.
Vern Anderson, valued it at $48,000. `~Tr, Hennessy placed just
compensation at $45,200.
The tenant ,could be eligible for relocation payments of up
to approximately $5,000. The property owner may also be eligible
for a payment because of loss of business income. This payment
would perhaps app-roximate $ 2 , 500 .
727 Graham
This property is ownc-r-occupied. it is a one and o~^e-half
story split level single family residence constructed in 1940.
One-half of the attic is finished. The garage is tuck-under.
_:?~ L1rSt f1oOr COntaLI:S 3 ilVli.gr dining rOCiil, kitchen,
two bedrooms, and one bathroom. The portion of the attic space
which is finished contains a bedroom and a half-bath. An unusual
feature of this hoYl.>_= is the use cf plywood paneling on the walls
and ceiling.
The appraisers valued the property as follows: O, J. Janski
and ASSOC1at2S, Sr 3,~vC; Vern Anderson, $71 ,OO~i; ~:'-~'. Hennessy,
$65,000.
• The occ~~pancs of the property ~~calu b~ eligible fog reic~~-
ticn benefits. The two owners would be eligible for up to ap-
proximately $16,000. The third person would be eligible for up
to approximately $5,000 as a tenant.
Two sources of funding would be utilized to purchase these
properties loans from the city's PIR fund, and the L/Hj'`d Special
Revenue Capital Project Fund. Both of these funds have been uti-
lized by the HRA previously to purchase property. These loans
would be paid off when tine ta<, i.-.~~eme^t redevelopment bonds are
sold for the Lake Shore Drive Cooperative. The loans :could bear
interest at the rate of 5o pe-r annum. For funds to be borrowed
from the PIR, it is necessar1 that tre ~~ity council agree to the
loans, and that a loan agreement be executed between the LIRA and
city council. Recommended funding sources are as follo~,~s:
727 Graham - L/H/N Capital Fund
6611 Graham - PIR Fund
6608 Graham - PIR Fund
Summary
It is recommended that the HRA take the following actions:
~~ 1. Adopt the attached resolutions, authorizing
execution of a loan agreement with the city
HRA Letter No. 45 -3- December 15, 1930
tc rovide funds
or 6611 and 6608
establishes just
the sta=. t'~ :.eg
properties.
f~-om the PIR for the purchase
Graham. The same resolution
compensation and authorizes
s ~ ~~. ~e `or_ purchase o f '~'^
2. Adopt the attached resolution, authorizing a loan
from the L/H/N Capital Project fund for the pur-
chase of 727 Graham. This resolution also estab-
lishes just compensation and authorizes negotia-
tions for this property.
Respectfully submitted,
i / ~ ~, ~~
~ ~V~, V ~~'~~~'tlj~~P c./~
Karl Nollenberger U
Executive Director
KN/jf
cc: Community Development Director
Housing ar~d Redevelopment Specialist
Finance Coordinator
(6608 Graham) -
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE
EXECUTION OF A CONTRACT TO
BORRO'v~7 MONEY FROM THE CITY
OF RICHFIELD AND PROVIDING
FOR THE PURCHASE OF REAL PROPERTY
WHEREAS, the Richfield Housing and Redevelopment Authority
(HRA) desires to borrow money for the pu rpose of purchasing
certain real property. pursuant to and in furtherance of the
L/H/id Redevelopment Project heretofore adopted by the City of
Richfield (the "City") and the HRA, said real property being
described as follows: Lot 10, Block 3, Fairwood Shores, and,
WHEREAS, the HRA has. caused appraisals of the subject prop-
erty to be made and has carefully considered such appraisals, and
WHEREAS, the HRA is authorized by Minnesota Statutes, Sec-
. tion 462.445 to purchase real property .and to borrow money
..from the City therefore, and
WHEREAS, the City is .authorized by Minnesota Statutes, Sec-
tion 462.581 to make loans to the HRA in aid of projects,:
. NOW, THEREFORE, BE IT RESOLVED BY THE RICHFIELD HOUSING
AND REDEVELOPMENT AUTHORITY:
1. That the Chairman and the Executive Director be, and
hereby are authorized to execute, as agents of the Richfield
Housing and Redevelopment Authority, an agreement with the City
of Richfield (entitled 'Loan Agreement') a copy of which is
hereby given Clerk's File No. 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 con-
sideration and acceptance.
3. That $71,500 is determined to be just compensation
for the subject real property.
4. That the Executive Director and the HRA's attorney are
authorized and directed to commence negotiations for the pur-
chase of :the real property described in the above agreement
upon acceptance and execution of the above agreement by the
City of Richfield. The owner of the subject property shall be
offered the sum of $71,500 for the sale of said property.
5. That the Executive Director is hereby directed to
notify, in writing, the owner of the subject property, as soon
as possible, that the HRA presently intends to acquire his
~:
property provided negotiations result in the determination of
a mutually agreeable sale price. The Executive Direc~or shall
include with such notification a statement which complies with
the requirements of regulations of the Department of Housing
and Urban Development, 24 C.F. R. §42:135.
6. That the Chairman and Executive Director are autYlor-
ized to execute a purchase agreement for just compensation for
the purchase of said real estate.
7. That if the negotiations result in a proposal; for the
purchase of said real estate greater than just compensation,
said proposal shall be presented to the HRA.
Passed by the Housing and Redevelopment Authority of Rich-
field this day of December, 1980.
Thomas E. Harms Chairman
ATTEST:
V. Z. Luettinger Secretary • .
` (66.08 Graham)
LOAN AGREEMENT
. THIS AGREEMENT, entered into as of this day of ,
1980, by and between the Housing and Redevelopment AuthcritLL,~ of
Richfield, Minnesota, a body. public and corporate (hereinafter
the "H RA"), and the City of Richfield, a municipal corporation
organized. and existing under the laws of the State of Minnesota
(hereinafter the "City").
WITNESSETH:
WHEREAS, the HRA desires to borrow money for the purpose
of purchasing certain real property pursuant to and in further-
ance of the L/H/N Redevelopment Project heretofore adopted by
the City and the HRA, said real property being described as
follows: Lot 10, Block 3, Fairwood Shores, and-
WHEREAS, the purchase of said .real property is necessary
to accomplish the purposes of said L/H/T1 Project, and
_ WHEREAS, the City desires to lend money so that said pur-
chase may be accomplished, and
WHEREAS, the HRA is authorized by Minnesota Statutes, Sec-
. tion 462.445 to purchase real property and to borrow money from
the City therefore, and
. WHEREAS, the City is authorized by Minnesota Statutes,
Section 462.581 to make loans to the HRA in aid of projects.
NOW, THEREFORE, for and in consideration of the mutual
tenets and agreements herein set forth, the HRA and the City
do hereby agree as follows:
I. The City agrees to advance to the H RA money in an
amount to be determined by the HRA at such time as a decision
has been made by the HRA to purchase such property, said amount
to be .equal to the purchase price of said property, plus any
relocation benefits payable, and
II. The HRA agrees to repay the sum so advanced, plus in-
terest, as follows:
A. Interest shall accrue on unpaid principal at
the rate of 5.OOo per annum from the date of
advancement until repaid.
B. Payments shall be applied first to reduce in-
terest accrued at the date of payment, and the
remainder, if any, shall reduce the principal
balance.
C. The H RA may make payment or payments in any
amount and at any time, provided that the
entire unpaid principal together with accrued
interest shall be repaid no later than
three years from the date of advancement
of funds to the HRA.
III. .This agreement shall be void and of no effect if ad-
vancement of funds by the City as provided herein is not made
before June 30, 1981.
HOUSING AND REDEVELOPMENT AUTHORITY
gy
Its Chairman
Dated: By .
Its Executive Director
Dated:
CITY OF RICHFIELD
By
Its Mayor
By
•
Its City Manager
(6611 Graham)
HRA RESOLUTION N0.
RESOLUTION) AUTHORIZING THE
EXECUTION OF A CONTRACT TO
BORRO[a MONEY FROM THE CITY
OF RICHFIELD A'~ID PROVIDING
FOR THE PURCHASE OF REAL PROPERTY
WHEREAS, the Richfield Housing anal Redevelopment Author-
ity (HRA) desires to borrow money for the purpose of purchas-
ing certain real property pursuant to and in furtherance of,
the L/H/N Redevelopment Project heretofore adopted by the City
of Richfield. (the "City") and the HRA, said real property being
described as follows: Lot 9, 31ock 1, Fairwood Shores, and,
_ WHEREAS, the HRA has caused appraisals of the subject
property to be made and has carefully considered such apprai-
sals, and
WHEREAS, the HRA is authorized by 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 Statutes,
Section 462.581 to make loans to the HRA in aid of projects,.
NOW, THEREFORE, BE IT RESOLVED BY THE RICHFIELD HOUSING
AND REDEVELOPMENT AUTHORITY:
1. That the Chairman and the Executive Director be, and
hereby are authorized to execute, as agents of the Richfield
Housing and Redevelopment Authority, an agreement with the City
of Richfield (entitled 'Loan Agreement') a copy of which is
hereby given Clerk's File No. 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.
3. That $45,200 is determined to be just compensation
for the subject real property.
4. That the Executive Director and the H RA's attorney
are authorized and directed to commence negotiations for the
purchase of the real property described in the above agreement
upon acceptance and execution of the above agreement by the
City of Richfield. The owner of the subject property shall be
offered the sum of $45,200 for the sale of said property.
5. That the Executive Director is hereby directed to
notify, in writing, the owner of the subject property, as soon
as possible, that the HRA presently intends to acquire his
property provided negotiations result in the determination of
a mutually agreeable sale price. The Executive Director shall
include with such notification a statement which complies with
the requirements-of regulations. of tho Department of Housing
and Urban Development, 24 C.F.R. §42.135.
6. That the Chairman and Executive Director are authorized
to execute a purchase agreement-for just compensation for the
purchase of said real estate.
7. That if the negotiations result in a proposal for the
purchase of said real estate greater than just compensation,
said proposal shall be presented to the HRA.
Pas~.ed by the Housing and Redevelopment Authority of Rich-
field this day of December,-1980.
Thomas E. Harms Chairman
ATTEST:
V. L. Luettinger Secretary
(6611 Graham)
f
LOAN AGREEMENT
This Agreement, .entered into as of this day of ,
1980, by and between the Housing and Redevelopment Authority of
Richfield, Minnesota., a body public and corporate (hereinafter.,
the "H RA"), and the City of Richfield, a municipal corporation
organized and existing under the laws of the State of Minnesota
(hereinafter the "City) .
WITNESSETH:
WHEREAS, the H RA desires to borrow money for the purpose
of purchasing certain real property pursuant~t~o and in further-
ance of the L/H/PJ Redevelopment Project heretofore adopted by
the City and the H RA, said real property being described as
follows: Lot 9, Block 1 Fairwood Shores, and
WHEREAS, the purchase of said real property_is necessary
to accomplish the purposes of said L/H/N Project, and
WHEREAS, the City desires to lend money:so that said pur-
chase may be accomplished, and
WHEREAS, the HRA is authorized by Minnesota Statutes, Sec-
tion 462.445 to purchase real property and to borrow money from
the City therefore, and
WHEREAS, the City is authorized by Minnesota Statutes, Sec-
tion 462.581 to make loans to the HRA in aid of projects.
NOW, THEREFORE, for and in consideration of the mutual tenets
and agreements herein set forth, the HRA and the City do hereby
agree as follows:
I. .The City agrees to advance to the H RA money in an amount
to be determined by the HRA at such time as a decision has been
made by the HRA to purchase such property, said amount to be
equal to the purchase price of said property, plus any reloca-
tion benefits payable, and
II. The HRA agrees to repay the sum so advanced, plus
interest, as follows:
A. Interest shall accrue on unpaid principal
at the rate of 5.OOo per annum from the
date of advancement until repaid.
B. Payments shall be applied first to reduce
interest accrued at the date of payment, and
the remainder, if any, shall reduce the prin-
cipal balance.
C. The HRA may make payment or payments in any
amount and. at any time,. provided that the
entire unpaid principal together with •
.accrued interest shall be repaid no
later than three years from the date
of advancement of funds to the H RA.
III . This agr-^_~~ ant shall be void ar_d of no effect if
advancement of funds by the City as provided herein is not
made before June 30, 1981.
. HOUSING AND REDEVELOPMENT AUTHORITY
By
Its Chairman
Dated:
By
Its Executive Director
CITY OF RICHFIELD
By •
Its .Mayor.
Dated:
By '
Its City Manager
.(727 Graham)
HRA RESOLUTION NO.
. RESOLUTION AUTHORIZING THE
EXECUTION OF A CONTRACT TO
BORROW MONEY FROM THE L/H/N SPECIAL REVENUE
CAPITAL FUND FOR
THE PURCHASE OF REAL PROPERTY
WHEREAS, the Richfield Housing and Redevelopment Authority
(H RA) desires to borrow money for the purpose of purchasing
certain real property pursuant to and in furtherance of the
L/H/N Redevelopment Project heretofore adopted by the City of
Richfield (the "City") and the H RA, said real property being
described as follows: Lot 8, Block 3, Fairwood Shores, and,
WHEREAS, the H RA has caused appraisals of the subject
property to be made and has carefully considered such apprai-
sals, and,
WHEREAS, funds to provide for the purchase of this prop-
erty are available in the L/H/N Special Revenue Capital Fund,
NOW, THEREFORE, BE IT RESOLVED BY THE RICHFIELD HOUSING
AND REDEVELOPMENT AUTHORITY:
1. That $65,000 is determined to be just compensation
• for the subject .real property.
2. That the monies for the purchase of this property
are to be borrowed from the L/H/~I Special Revenue Capital
Fund .for a period of three years at a rate of 5 percent per
annum.
3. That the Chairman and the Executive Director be, and
hereby are authorized to execute, as agents of the Richfield
Housing and Redevelopment Authority, an agreement (entitled
'Loan .Agreement') a copy of which is hereby given Clerk's File
No. and is ordered placed on file.
4. That the Executive Director be, and hereby is directed
to present said agreement into the records of the H RA of the
City of Richfield for its recording.
5. That the Executive Director and the HRA's attorney
are authorized and directed to commence negotiations for the
purchase of the real property described above.
6. That the Executive Director is hereby directed to
notify, in writing, the owner of the subject property, as soon
as possible, that the H RA presently intends to acquire his
property provided negotiations result in the determination of
a mutually agreeable sale price. The Executive Director shall
include with such notification a statement which complies
with the requirements of regulations of the Department of S
Housing and Urban Development, 24 C.F.R. £42.135.
7. That the Chairman and Executive Director. are author-
ized to execute a purchase agreement for just compensation
for the purchase of said real estate.
8. That if the negotiations result in a proposal for
the purchase of said real estate greater than just compensa-
tion, said proposal shall be presented to the HRA.
Passed by the Housing and Redevelopment Authority of
Richfield this day of December, 1980.
Thomas E. Harms Chairman
ATTEST:
V. L. Luettinger Secretary
•
(727 Graham)
LOAN AGREEMENT
THIS AGREEMENT, entered into as of this day of
1980; by the Housing and Redevelopment
Authority of Richfield, Minnesota, a body public and corporate
(hereinafter the "HRA") ,
WITNESSETH:
WHEREAS, the HRA desires to borrow money for the purpose
of purchasing certain real property.pursuant to and in further-
ance of the L/H/N Redevelopment Project heretofore adopted by
the City and the HRA, said real property. being described as
follows:
Lot 8, Block 3, Fairwood Shores, and,
WHEREAS, the purchase of said real property is necessary
• to accomplish the purposes of said L/H/N Project, and
WHEREAS, the HRA has monies available in the L/H/N
Special Revenue Capital Fund not pledged to the retirement of
bonded indebtedness,. and
WHEREAS, the HRA desires to lend money to the multi-family
capital project so that said purchase may be accomplished, and
WHEREAS, the HRA is authorized by Minnesota Statutes,
Section 462.445 to purchase real property and to borrow money,
NOW, THEREFORE, for and in consideration of the tenet and
agreements herein set forth, the HRA does hereby agree as fol-
lows:
I. The HRA agrees to advance an amount to be determined
at such time as a decision has been made to purchase such prop-
erty, said amount to be equal to the purchase price of said
property, plus any relocation benefits payable, and
II. The HRA agrees to repay the sum so advanced, plus
interest, as follows:
A. Interest shall accrue on unpaid principal at the
rate of 5.00 percent per annum from the date of
advancement until repaid.
B. Payments shall be applied first to reduce interest
accrued at the date of payment, and the remainder,
if any, shall reduce the principal balance.
C. The HRA may make payment or payments in any amount
and at any time, provided that the entire unpaid..
principal together with accrued interest shall be
repaid no later than three years from the date
of advancement of f unds to the H RA.
III. This agreement shall be void and of no effect if advance-
ment of funds as provided herein is not made before June 30, 1981.
HOUSING AMID REDEVELOPMENT .AUTHORITY
By
Its Chairman
By
Its Executive Director_
•
HOUSING AND REDEVELOPti1ENT AUTHORITY
Office of Exec>>tive Director
HRA Letter No. 44
Agenda December 15, 1980
Housing and Redevelopment
Authority Commissioners
City of Richfield
Co~uniss.ioners
Subject: Rental of Property,- LfH./N Graham Avenue
During the next few weeks, the HRA will be pursuing the pur-
chase of several properties: 709, 721, 727, 6608, and 6611 Graham
Avenue. All of these properties, except 6611, are presently
owner-occupied,
_ The owner-occupants of these properties have very low or ~~.o
mortgage obligations. Because of 'phis, and the fact that the~°
own the property, the concept of paying rent to occupy "their"
home after the HRA owns it, causes them difficulty. The HRA's
rental policy has generally been as follows: an owner-occupant
pays no rent from the date of closing until the end of that
mont~. `~L~._ t"~:=s period, t~:e _s..~a~~ payments en the property
should at least equal the holding costs incurred by the HRA, if
pos s ibl~ .
For example, the present owner of the property at 709 Graham
has no mortgage payment. HRA holding costs could ate--r_~.V;_--,-,+.~=.
$500 per ~~tonth. if inclement weather prevents r~Ir. Blanck from
moving before spring, he would be obligated to pay $500/month in
rent. This would be a substantial increase in Mr. Blanck's hous-
ing costs, wit}ZOUt benefit of relocation payments.
Therefore , it is recommended that the HR=. u~_.thor ize the staf f
to permit the current occupants to continue residing in these dwell-
ings at a cost equal to their current monthly housing costs, which
would include principal, interest, taxes, and insurance.
Following relocation of the original occupants, the properties
will be rented until the construction of the coop begins. How-
ever, the rental period will be short, possibly only three to four
months, depending on when the present occupants vacate. It would
be in the best interest of the community to have the properties
occupied, rather than standing vacant, until the site clearance
work is initiated next spring. Because of the short rental period,
it may be necessary to negotiate rents lower than the average
monthly HRA holding costs for the properties.
~a
~,
HRA Letter No. 44 -2- December 15, 1930
In summary, it is recommended that the HRA take the following
actions
~~
~~
,,.
Authorize occupants of the property to be purchased
to pay a monthly-rent equal to their monthly housing ,~~~
costs;
Authorize the staff to seek to obtain subsequent occupants
for the properties, to pay a rent as close to the holding
costs of the HRA as can be reasonably obtair:ed in the
short-term rental market.
Respectfully submitted,
,~ .
~; ~ ~ ~ ,~ l ~,. ~,4~
Karl Nollenberger
Executive Director
KN/jf
cc: Community Development Director
Housing and Redevelopment Director
•
•
HOUSING AtiTD ~;:- ~ _ - ~~".~".'"' ~UT?iORITY
Office of Executive Director
HRA Letter x^10. 43
Agenda December -~5, 1980
Housing and Redevelopment ~,
Authority Commissioners ''
City of Richf field ~'` ~~
~~ti ~ o
Dear Commissioners: ~ ~~
Subject: Discussion of Possible Property Acquisitiot:
`!he Clark Oil and Refining Corporation has recently closed
and is sellincr approximately 250 facilities in the midwest area,
including their station located at 220 west 66th Street. Since
this prroperty is within the redevelopment project area, it would
be appropriate fcr the ~iRA to determine its interest in pursuing
purchase of the property, now that it is available for sale. _"~~
tip, v
The S1te contains a'JNrC`iii?iat~'ly 27,000 Square feet. The
o~rner is asking $225,000 for the property, which is approxi_<<atei_i
$8.00 per square foot. The site is larger than the 19,000 square
foot parcel. at 66th Street and Nicollet Avenue ~~ahich the HP.A has
r`:cently looked at as a possible acquisition site for a small re-
development project. It also has greater redevelopment potential
an could acccmod-. `.~ _ ,; l ~ ,-1,. T;._.. - ~ ,-,~.~~,~~~ _.:~
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probably be limited to the site, because of space deficiencies in
the Hub Superblock, which adjoins the site. The zoninr, ordinance
requires that t~.e IIu:: ~.a~e five parsing spaces per ". ,OOG square
feet. when expansion of the mall area is completed, the parking
ratio will be 3.6 spaces per 1,000 square feet, a deficiency
severe enough to rule out the possibility of sharing parking with
another property.
The Clark property wou'_d cost the HRA an estimated $300,000
in total, including acquisition,administration, capitalized in::.-r-
est, etc. costs. A commercial development valued at approximately
$995,000 would be necessary to fully amortize tax increment rede-
velopment bonds over a 20 year period, which wc,aicA ;;e ~_-s r,-~os
feasible means for the IIRA to acquire this property.
This property I~as not been identified in the L/H/N redevel-
opment plan for purchase by the HRA. If the HRA wishes to pur-
chase the property, a plan change would be necessary. rinnesota
Statutes indicate that a p1.an modification should be processed in
the same way as the original plan was adopted:
-iiRA Public Iearinq on Plan Change
-HIr~ ~~doption/Rejection of Change
HRI~ Letter No. 43 -2- December 15, 1980
=If adopted, trans~~littal of~ ~cu~,__.:.~r.u~d
changes to city council
City Council referral tc Planning
Commission
-Planning Commission Recommendation on
plan change
-City Council receipt of Planning
Commission Recomir,"~ndatior. regarding
change
-City Council Public Hearing on Plan
Change
-City- Council acceptance/rejection of cr ~ ^.c~e
The Statutes, also, however, provide that the HRA can deter-
mine not to follow this process, if the HRA establishes that the
c,range will not "affect the exterior boundaries" or "alter or
affect the general land uses established in the plan." If the HRA
makes such a finding, the plan can be ch .raged <<aithout .requi~ina
approval of the city council.
If the HRA is interested in pursuing acquisition of this
property, it is recomrlended that the staff be directed to accomplish
the following:
1. Identify revenue sources for acquisition. Interim
financing must be provided ~,aitl~ a ta~~ ~_ _ ~~~-~-~nt
bond which could be sold in the spring of i98"!, in
conjunction with a bond sale to finance HRA land
assembly costs associated with the Lake Shore
Drive Cooperative proj~~t,
2. Prepare documentation for a plan change or plan
_.:_fica~~y. _ :..~
3. Seek development proposals for the site.
After the =~lsff ha c_. developed specific information for eacr.
of these items, the HRA will ue ~.siLed to es~~.~~lish just compensation
for the property, and authorize the staff to negotiate for its
acquisition. It is anticipated that a report on financing, a plan
modification and developer interest in the site will be available
for IiRA review at the January iiRA meeting.
Respectfully submitted,
/i
Karl Nollenberger
I/xecutive Director
KN/eja
~~ ce: Community Development Director
~- Housing and Redevelopment Specialist
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FiOUSTNG AND REDEVELC~ ai~,~~"_' :'-AUTHORITY
Office of Executive Director
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Hcusing and Redevelopment ~ ~"
Authority. Commissioners :~~
City of Richfield - ;~
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Dear Commissioners:
FIRA Letter No. 42
Agenda December 15, 1980
Subject: Discussion of Possible Property Acquisition
On November 17, 1980, the HRA discussed the feasibility of
acquiring and redeveloping the area on the northeast corner of the
66th Street and Nicollet Avenue intersection. At that time, the
HRA decided to not pursue redevelopment of that site because of
the large HRA subsid.v which would be required =c m.,..-e development
of the site financially feasible for tax increment financing.
The impetus for bringing that matter to the HRA came from two
parties. The owner of the corner property, the Naegele Outdoor
Advertising Company, desires to sell t~.e real estate, _,=~hcugh re-
serve the right to maintain the existing outdoor advertising signs
on the property. One party has indicated interest in purchasing
the property and operating it as ar. automotive repair facility; and
the owner of the adjacent Dairy Queen property has recently applied
for permits to renovate his facility. It appears that the HRA
should make a determination regarding any interest they may have in
the property before additional private investment is made, and while
at least the Naegele property is available for acquisition.
The City of Richfield has obtained an easement, for street
improvement purposes, on the western edge of the Naegele props=.rty,
adjacent to Nicollet Avenue. The value of the easement is being de-
tern;ined through the Eminent Domain Process initiated with the pre-
vious owner. Because of this pending action, it may be possible
for the FIRA to join with the city in purchasing the entire property
o~~med by Naegele. The IRA could possible enjoy a cost savings if
they wished to purchase the property in this manner.
The informal asking price for the entire property is $125,000.
If the HRA is unwilling to permit the advertising signs to continue
occupying the property, it would be necessary to relocate or pur-
chase them, which could ccs;~~pproximately $20,000. An additional
cost of up to $10,000 would be incurred for the clearance of the
site, making the total acquisition costs equal to approximately
$165,000:
FIP.A Letter No. 42
-2-
Estimated Purchase
~,~-ar±- relocation Payment
_~.A~..e.rtl~~~?,r Signs
Site Clearance
December 15, 1900
$125,000
10,000
20,000
10,000
$165,000
This item is b~ina brought to your attention ag~~;n for the following
reasons:
1. The owner of the corner property is willing to sell
2. A private sale to an automotive repair business would
make a future purchase by the HRA more difficult
3. A joint purchase with the city could minimize the
HRA's cost of acquiring the property.
If the HRA is interested in pursuing purchase of this property,
the staff should be directed to formulate a strategy report for
future HRA consideration, which would address tree means for financ-
ing the purchase, and potential reuse of the property. Such a re-
port could `~e available for the January HRA meeting.
Respectfully submitted,
~ s ~
Karl '~lollenberger
Executi-~ :~ ~ re~tcr
KNjeja _
cc: Community Development Director
Housing and Redevelopment Specialist
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