06-11-79 agenda
HOUSING AND REDEVELOPA4ENT AUTHORITY
Office of Executive Director
HRA Letter No. 26
Agenda June 11, 1979
Housing and Redevelopment
Authority Commissioners
City of Richfield
Commissioners:
Subject: Authorization to Purchase 6607 Lake Shore Drive
On May 14, 1979, the HRA established just compensation and
authorized the staff to initiate negotiations for purchase of the
property located at 6607 Lake Shore Drive. Mr. and Mrs. Gallagher,
property owners, requested that the HRA purchase this property,
which is located in the L/H/N project area.
Mr. and Mrs. Gallagher have agreed to a purchase price of
$75,500, which is $1,500, or two percent, above just compensation.
However, it is the feeling of the staff that the negotiated
agreement represents a fair purchase price for the property,
and is in the general range of the approved compensation.
The Gallaghers have agreed to pay all levied special assessments.
The HRA will pay the second half of the real estate taxes for
1979 ($766.12). The relocation payment to the Gallaghers will
total $2,500, and will be a payment-in-lieu of moving and related
costs for Mr. Gallagher's business which is located on the prop-
erty. Acquisition and relocation costs for this property total
$78,000, plus the second-half 1979 taxes.
It will be necessary for the HRA to borrow funds from the city
to purchase this property. At the HRA's request, the city council
approved such a loan. The loan is to be paid back at the end of
three years. Interest will be five percent (50) per annum, or
approximately $3,900 per year, on the unpaid balance.
It is recommended that the HRA adopt the attached resolution,
authorizing the purchase of property located at 6607 Lake Shore
Drive, and the borrowing of $78,000 from the City of Richfield...
Respectfully submitted,
J _V e 6Vilde
Acting Executive Director
JLW/jef
cc: Planning and Redevelopment Director
Finance Director
City Attorney
., .
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HRA Resolution No.
RESOLUTION AUTHORIZING THE
BORR04JING OF MONEY FROP1 THE
CITY OF RICHFIELD AN"u THE
PURCHASE OF REAL PROPERTY AT
6607 LAKE SHORE DRIVE
WHEREAS, the Richfield Housing and Redevelopment Authority (HRA) 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 HRA, said real property being
described as follows: Lot 14, Block 3, Fairwood Shores Addition, Hennepin
County, f~1i nnesota, and
WHEREAS, the HRA has caused appraisals of the subject property to be
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,
NOtJ, THEREFORE, BE IT RESOLVED BY THE RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY:
1. The Executive Director is directed to execute the purchase agreement to
purchase the above described property for Seventy-Five Thousand Five Hundred
and no/100 dollars ($75,500.00).
2. The Executive Director is directed to loan $78,000 from the City
per the Loan Agreement approved by the Housing and Redevelopment Authority
and City Council on May 14, 1979.
Passed by the Housing and Redevelopment Authority of Richfield this
day of
Loren L. Law Chairman
V. L. Luettinger Secretary
'~
Annual
Housing Management Proforma
6607 Lake Shore Drive
Income $360 x 12 = $4,320
Expenses
Interest at 5% $3,900
Taxes $1,700
Insurance $450
Advertising $25
Maintenance $350
Vacancy Factor $180
Total Expenses $6,605
Annual Deficit $2,285
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HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 25
Agenda June 11, 1979
Housing and Redevelopment
Authority Commissioners
City of Richfield
Commissioners
Subject: Approval of Additional Collateral
Attached to this HRA letter is a resolution approving addi-
tional collateral in the amount of $450,000, pledged by the
Summit State Bank. The Summit State Bank is an official deposi-
tory for the Richfield Housing and Redevelopment Authority.
It is recommended that the HRA adopt the attached resolution
approving this additional pledge of collateral.
Respectfully submitted,
~~ d y -,
yc L. Wilde
cting Executive Director
JLW/jef
cc: Finance Director
HRA RESOLUTION N0.
RESOLUTION APPROVING ADDITIONAL COLLATERAL FOR THE
SUMMIT STATE BANK, A DEPOSITORY OF FUNDS OF
THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No. 106 designated the Summit State Bank a depository of
funds of the Housing and Redevelopment Authority of Richfield in the amount of
$400,000 and deposited for safekeeping at the Marquette National Bank of Minneapolis;
and
WHEREAS, on May 9, 1979, an additional collateral of $400,000 in securities
was deposited for safekeeping at the Marquette National Bank of Minneapolis; and
WHEREAS, on May 29, 1979, an additional collateral of $50,000 in securities
was deposited for safekeeping at the Marquette National Bank of Minneapolis; and
WHEREAS, such collateral consists of the following securities:
$200,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$200,000
$200,000
$ 50,000
U. S. Treasury Notes
Federal National Mortgage Association Bonds
Somerville, Mass., General Obligation Bonds
Pennsylvania State, General Obligation Bonds
Anchorage Alaska Electric Utility Revenue
U. S. Treasury Notes
U. S. Treasury-Notes
Albany, New York, General Obligation Bonds
NOW, THEREFORE, BE IT RESOLVED that collateral in the amount of $850,000
deposited for safekeeping at the Marquette National Banlc of Minneapolis, is hereby
approved.
BE IT FURTHER RESOLVED by the Housing and Redevelopment Authority of Richfield
that the Treasurer is authorized to sign the custodianship receipts.
Passed by the Housing and Redevelopment Authority of Richfield, Minnesota,
this 11th day of June, 1979.
Loren L. Law Chairman
ATTEST:
V. L. Luettinger Secretary