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07-19-82 agenda HOiJSIA1G AND REDEVELOPMENT AIITHROITY Office of Executive Director HRA Letter No. 31 Agenda July 1Q, 1982 Housing and Redevelopment Authority Authority Co_mznissioners City of Richfield Dear Commissioners: Subject: Water Main Improvement 7 As required by the Knutson Developer's Agreement, part of Graham Avenue south of 66th Street was vacated to allow for the construction of multi-family housing. As a result, the water main that was located in Graham Avenue had to be abandoned. With the Graham Avenue water main abandoned, a long deadend water main spur running from Lake Shore Drive along 66th Street to a hydrant at the southwest corner of the Godfather Restaurant remains. A deadend water main causes a reduction in the water pressure and volume from hydrants and provides less water with which to fight fires. In addition, a deadend water main allows water to stagnate and becomes stale and odoriferous. The primary water service for the Lake Shore Drive condo- minium is on this deadend line. It is very desirable for major water connections to be on a loop service; that is, on a water rnain which is served from both directions. The most efficient way of completing the loop for this water main section is to start from the end of the deadend line, which is located at the hydrant at the southwest corner of the "Godfather" block, and to install a main along 66th Street from the "Godfather" hydrant on the north side of 66th Street to Graham Avenue, then north along the east side of Graham Avenue to 65th Street. A connection must be made to the existing water main at 65th Street. The water main installation accomplishes three objectives: 1. Provides the necessary loop service for the Lake shore Drive condominium. 2. Corrects the inadequacy in the system caused by abandonment of the Graham Avenue water main. 3. Provides a source of water fcr any extra fire protection capabilities needed for potential development of the "Godfather" block. HRA RESOLUTION N0. RESOLUTION RATIFYING ADVERTISING FOR BIDS, REJECTING ALL BIDS, AND AUTHORIZING THE CITY TO PERFORM CONSTRUCTION FOR THE WATER MAIN AND APPURTENANT WORK AT 66TH STREET & GRAHAM WHEREAS, the Housing and Redevelopment Authority (H.R.A.) entered into an agreement with the Knutson Companies for redevelop- ment of the multi-family site; and WHEREAS, to permit the proper redevelopment of the site, it was necessary to request the city to vacate a portion of public right of way on Graham Avenue, and; WHEREAS, this street vacation caused the abandonment of a water main, and; WHEREAS, it is necessary to construct a new water main loop near 66th Street and Graham Avenue to provide adequate service; WHEREAS, the Executive Director did insert in the Richfield Sun and the Construction Bulletin an advertisement for bids in accordance with the specifications; and WHEREAS, pursusnt to the advertisement for bids for the water main and appurtenant work improvements at 67th Street and Graham Avenue, bids were received, opened, and tabulated according to law; and WHEREAS, the bids were evaluated based on the specifications and engineer's estimate; and WHEREAS, the City Engineer recommends rejection of all bids NOW THEREFORE, be it resolved by the Housing and Redevelopment Authority of Richfield: 1. That the insertion of the advertisement for bids is hereby ratified. 2. That all bids are rejected. 3. That the City of Richfield water department is authorized and directed to complete the water main and appurtenant work according to specifications prepared by Orr-Sehelen-Mayeron. Thomas E. Harms, Chairman ATTEST: Michael Freeman, Secretary CITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY BID OPENING July 12, 1982 Water Main and Appurtenant Work HRA Project No. 9553-1580 Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff was called by Acting City Clerk Joyce L. Wilde, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Water Main and Appurtenant Work, as advertised in the official newspaper on June 30, 1982. Present: Community Development Director D. Kraft Manager's Designee Steve Devich City Engineer, M. Eastling Acting City Clerk, Joyce Wilde The following bids were submitted and read aloud: CONTRACTOR BID SECURITY ALTERNATE ~kl ALTERNATE 4~2 Orfei & Sons, St. Paul B.B. 5% $37,136.60 $34,686.74 Brown & Cris, Inc., Lakeville g,B, 5% 26,890.50 22,608.00 It was announced that the bids would be tabulated and considered at the July 19, 1982 HRA meeting. Joyce L. Wilde Acting City Clerk HRA RESOLUTION NO, RESOLUTION TO RATIFY THE ADVERTISING FOR BIDS, REJECTION OF BIDS, AND AUTHORIZATION TO REBID FOR HARRIET AVENUE UTILITIES RELOCATION WHEREAS, the Housing and Redevelopment Authority (H.R.A,) entered into an agreement with Richfield State Agency for redevelopment of the Richfield Bank site; and WHEREAS, to permit the proper redevelopment of the site, it is necessary to relocate sanitary sewer and water main utilities; and WHEREAS, the Executive Director did insert in the Richfield Sun and the Construction Bulletin an advertisement for bids in accordance with the specifications; and WHEREAS, pursuant to the advertisement for bids for the Harriet Avenue Utilities Relocation, bids were received, opened and tabulated according to law; and WHEREAS, the bids were evaluated based on the specifications and engineer's estimate; and WHEREAS, Orr-Schelen-Mayeron, consulting engineers, and The City Engineer recommend rejection of all bids NOW THEREFORE, be it resolved by the Housing and Redevelopment Authority of Richfield: 1. That the insertion of the advertisement for bids is hereby ratified. 2. That all bids are rejected. 3. That the Executive Director is hereby directed to readvertise for bid the relocation of the Harriet Avenue utilities. Thomas E. Harms, Chairman ATTEST: Michael Freeman, Secretary CITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY BID OPENING July 12, 1982 Sanitary Sewer, Water Main and Appurtenant Work for HRA Project No. 9556-1580 Harriet Avenue Utilities Relocation Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff was called by Acting City Clerk Joyce L. Wilde, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Sanitary Sewer, Water Main and Appurtenant Work for Harriet Avenue Utilities Relocation, as advertised in the official newspaper on June 30, 1982. Present: Community Development Director D. Kraft Manager's Designee Steve Devich City Engineer Michael Eastling Acting City Clerk Joyce Wilde The following bids were submitted and read aloud: CONTRACTOR BID SECURITY ALTERNATE ~~1 ALTERNATE ~~2 ALTERNATE ~~3 Nodland Assoc., Inc., Alexandria B.B. 5% $128,895 $153,860 $199,885 Orfei & Sons, St. Paul B.B. 5% 124,569 139,315.50 165,802.22 Engineer's Estimate 81,000 110,000 112,000 It was announced that the bids would be tabulated and considered at the July 19, 1982 HRA meeting. Joyce L. Wilde Acting City Clerk ~3 HOUSING AND REDEVELOPMENT AIJTHORITY Office of Executive Director HRA Letter No. 29 Agenda July 19, 1982 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Redevelopment Plan for Lyndale Avenue From 74th Street to I-494 In 1980 the city council adopted a capital improvement program which called for the improvement of Lyndale Avenue from 67th Street to I-494 in 1982. Subsequent to meetings on this matter, the city council decided to divide the project into two phases, a northerly phase located along that stretch of Lyndale Avenue from 67th Street to 74th Street, and a southern phase located from 74th Street to I-494. The reason that the council took this action was that the southern stretch of Lyndale has a commercial nature, and the problems are much different than those of the northern stretch, which is primarily residential in nature. The Richfield Chamber of Commerce subsequently appointed a group to work with the city staff in making recommendations relative to the reconstruction and resignalization of the 76th Street and Lyndale Avenue intersection. As HRA members are well aware, this is an area that is characterized by a large number of small businesses, many of which rely heavily upon the city right-of-way to provide needed vehicular parking. The original plan for reconstruction of the 76th Street/Lyndale Avenue intersection called for the installation of medians on Lyndale Avenue both north and south of the intersection, which would have resulted in the removal of a significant amount of on-street parking space and reduced access to businesses. In late 1981, the HRA discussed the role which it might play in any development of this area. Previously, the HRA had targeted the area as one needing redevelopment efforts by the City and the HRA. However, the HRA did not feel that an aggressive effort should be made to pursue redevelopment but rather that it wished to be in a responsive position to any requests made by the business people in the area. HRA Letter No. 39 -3- July 19, 1982 Dir. Tom Price, chairman of the Richfield Chamber of Commerce 76th Street and Lyndale Avenue Study Committee, will appear before the Housing and Redevelopment Authority at the July 19 meeting and comment further on the committee's request. It is the recommendation of the staff that the HRA authorize preparation of a comprehensive redevelopment plan for the 76th Street and Lyndale Avenue study area. It is further recommended that the HRA budget funds for this study as well as authorize the staff to prepare a request for proposal for response by various consultants. At the same time, the staff will be working with Dlr. Price and his com- mittee to develop a structure for involvement by the business people in the area in the entire process of consultant selection and master plan development. Respectfully submitted, ~~~. `~ Karl Nollenberger Executive Director KN/skh cc: Community Development Director Housing and Redevelopment Coordinator Tom Price HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 28 Agenda July 19, 1982 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: L/H/N Project, 6545 Nicollet Avenue and Environs In November, 1980, the HRA discussed the feasibility of redeveloping the area between First and Nicollet Avenues north of 66th Street, which is occupied by Richfield Automotive, Jackie Ann's Hair Stylist, and the Dairy Queen. The HRA discussion at that time concluded that the subsidy need to redevelop this area was too great, and that no action should be taken by the HRA to acquire the properties in this area. However, there was agreement that the former service station site at the intersection needed to be redeveloped as it exerts a strong negative visual influence in the area. The staff was asked to continue to pursue the matter to find an alternative for elimination of the blight. As HRA members are aware, the Red Owl grocery store immediately across the street on the southeast corner of the Nicollet/66th Street intersection recently went out of busi- ness. The condition of the service station property could have an impact on future use of the Red Owl parcel. Potential users or developers of this property could be discouraged by the visual impact of the service station. However, the HRA may have an opportunity to influence development of the inter- section even more. The staff has recently been in contact with the Red Owl property leasee and representatoves of the owner. It may be possible to negotiate for an HRA purchase of this property as well. A residential or alternative com- mercial use may be feasible for this parcel. The Naegle Company, which owns the Richfield Automotive building, a former service station at 6545 Nicollet Avenue, has recently indicated a willingness to sell the property to the HRA at their cost of purchase in late 1979. They have not yet indicated that cost, but it is probably in the $125,000 range. The owner of the shopping center to the north, the Sheldon-Thomas Company, has indicated an interest in purchasing this property from the HRA at a "reasonable price," to use in expansion of their center. HRA Letter No. 2 -2- JUly 19, 1982 If the HRA were to become involved in acquisition in this area, it is proposed that only redevelopment of the corner property be sought. That is, Jackie Ann's and the recently renovated Dairy Queen would remain. As the attached drawing indicates, the property could be utilized for parking for the shopping center. The additional parking would fake it possible for the shopping center to expand by constructing an addition of approximately 4,450 square feet between the existinq Warner's store and the south property line. Although ~at is probably the most practical way to develop this property, such a development would not be self-supporting from a financial viewpoint. The increase in assessed value which could be expected from this transaction would be approximately $25,000, yielding additional tax increment of $2,600 per year. The tax increment would support a bond issue of around $20,000 as co~pared to the total cost of HRA acquisition which is estimated at $150,000. Since it would not be practical to sell bonds in such a small amount, it would be necessary to borrow funds from the L/H/N capital fund. These project costs could be folded into some future bond issue, and the excess increment cash flow from the over L/H/N area could recover the HRA's costs for this development. Recent financial forcasts indicate more than adequate financial resources to assume these costs if the HRA decides to pursue the matter. In evaluating this proposal, the following should be considered: - The corner is prominent and very unsightly. It impacts negatively on adjoining property, and on the entrance to the L/H/N. - The owner is now actively interested in selling to the HRA. - Although this project requires a subsidy, it is probably the development option requiring the least subsidization. - Finally, purchase of the service station site could be the first stage of a two-stage process which would result in the redevelopment of two corners of this intersection. HRA Letter No. 28 -3- July 7:9, 1982 At the Monday evening HRA meeting, it would be desirable for the HRA to discuss the service station property, and in a preliminary rnanner, the Red Own property, and indicate to the staff generally how they should deal with potential purchase of these two properties. It is recommended that the HRA direct the staff to negotiate purchase of the Naegle property with the resale to Sheldon-Thomas Company for construction of an addition to the Warner's Hardware store. In addition it is recommended that the HRA direct the staff to pursue the redevelopment potentials of the Red Owl building in light of the expression of interest by the owner to sell the property. Respectfully submitted, Karl Nollenberger Executive Director KN/skh cc: Community Development Director Housing and Redevelopment Coordinator W J O Z -rbr~,~ F~ ~ ~ i ~q90 ~. PAY-~~6 IP-ED : lS ~sPAcE~ P~~1cu~6 ~~~DED ~ l5 sPP~S ac~sTiNV w,q~.~EQs ~i 105N0 s4. Ff i ~ ` N -~w ~D~rtoN x{450 SQ. ~. ~. i .~~~ ~. `~ ~ ~~ boo ~ ST. 1>i { Q M .--~ I I l ~2 HOUSING AND REDEVELOPMENT AtJTHORITY Office of Executive Director HRA Letter No. 27 Agenda July 19, 1982 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners Subject: Acquisition of Property, 6633 Lake Shore Drive On June 1, 1981, the HRA established just compensation and authorized the purchase of 6633 Lake Shore Drive. The just compensation was set at $88,000 based upon an appraisal completed in 1981. Monies from the HRA general fund were budgeted in 1981 for the acquisition of the property, but never expended due to the protracted negotiations. Originally it was envisioned that after purchase, the property would be rented to an eligible low income Section 8 family for a period of time. However, by purchase of the middle of the three remaining homes on Lalce Shore Drive, the HRA was determining the lonq term development of this area. Since the initial offer of June, 1981, negotiations have been underway on an intermittent basis with M~. and Mrs. Ashley Shevcheck, the owner/occupants of this property. They have recently found a house in west Richfield to which they will relocate. A purchase agreement has been executed between the sellers of that home and the Shevchecks, with the contingency that the HRA approve the purchase of 6633 Lake Shore Drive on July 19, 1982. The just compensation of $88,000 was based on a review appraiser's analysis of two appraisal reports provided by fee appriasers retained by the staff. These independent appraisers valued the property at $87,000 and $90,000. The staff is recommending that the HRA use general fund monies,as approved in the 1981 budq_et, in the amount of $89,900 to purchase the property. This is a two percent increase over just compensation but within the appraised value range. An additional $4,000 will be donated to the HRA by the Knutson Construction Company to be used toward the acquisition. This $4,000 would be added to the $89,900 so that the Shevchecks would receive a total purchase price of $93,900. A condition of the $4,000 donation from Knutson is that they would be able to acquire the property from the HRA on or before October 15, 1982 for the additional sum of $8,200, as was envisioned in the developer's agreement between the HRA and Knutson. HRA Letter No. 27 -2- July 19, 1982 r The Contract for the Sale of Land for Private Development, between Knutson Construction Company, Inc. and the HRA, was executed in October, 1981. It stated that if the HRA tendered this property to Knutson by June 1, 1982, they must purchase it for $8,200, which was the appraised value absent the right to develop it with buildings. As it has developed, the pace of negotiations did not make sale of the property by this date possible. Mr. and Mrs. Shevcheck have indicated their willingness to sell their property to the HRA by executing a purchase agreement. However, the performance by the HRA is contingent upon receiving $4,000 from Knutson Construction Company 4$ hours prior to the date of closing. Prior to conveyance of the property to the Knutson Company, the house and garage would be sold through advertising to a private party for removal from the site, since the structure is not appropriate for removal and incorporation into an HRA housing program. Before the parcel can be conveyed to Knutson, two additional actions must take place. The recommendation of the Planning Commission must be requested in order to find that the purchase and resale of the property by the HRA is in conformance with the comprehensive plan. In June of 1981 they found the proposed purchase to provide a housing opportunity for a low income family to be in conformance with the comprehensive plan. Presently, the Comprehensive Plan indicates Central Business District uses for this area, which includes multiple family building uses, such as the Lake Shore Drive Condominium. As indicated previously, the parcel would be utilized by the Lake Shore Drive Condominium as .open space. Secondly, the second required action is that the HRA must hold a public hearing on the sale of the property to Knutson Companies. Although there was a hearing associated with the original sale of property to Knutson, the hearing did not include this property; inclusion of the parcel would have been inappropriate because the HRA did not own it. If the acquisition of the property is approved by the HRA on July 19, the hearing would be scheduled for the August 16, 1982 HRA meeting. In addition to the acquisition, relocation payments of $19,584 would be made to the property owners as required by law. This includes a $15,000 replacement housing payment and $4,584 for moving costs. The revenue generated from sale of the land and buildings would be credited to the HRA general fund. The two property owners adjoinging the Shevcheck property have been notified of the potential purchase and resale of this property by a letter, a copy of which is attached. HRA Letter No. 27 -3- July 19, 1982 It is reconunended that the HRA adopt the resolution, which will be available for review at the July 19, 1982 HRA meeting, authorizing the purchase of property at 6633 Lake Shore Drive for $93,900, which is contingent upon receiving the $4,000 donation from Knutson Construction Company, Inc., and authorizing the staff to sell the structures on the parcel and request the Planning Commission to make a finding regarding conformance of this proposal with the Comprehensive Plan. Respectfully submitted, ~~~`~'~ Karl Nollenberger Executive Director KN/skh cc: Community Development Director Housing and Redevelopment Coordinator Administrative Services Director L .~~y.rs ~ :aJ Lake Shore Drive II.., Q ~rri:`r~ r ~„ ..~ Q: ~ ~~ June 25, 1982 ~e Palr~oro RichfieldcQUSing 6 6700 Portland Ave. Richfield, ;~N 55423 Dear ~- . PaL~nborg Redevelopment Aut`~ority Knutson L*~dependent Living Centers , a division of Knutson Constr+~cton Co~any, agrees to donate 54,000 to the Richfield HRA which will be combined with 589,900 provided by the HI~A for the p~arhase of 6633 Lake Sra7re Drive. The above des~ibed S4, 000 wi,1,1 be remi.-fled to the Richfield F~tA no later than 48 hots prior to closing on the above des~ibed pr~perty• 'T'his property (6633 Lake Shore Drive) is described as Tract 3, Parcel S in the Developers Agreerne.*~t. It is lmderstood that a condition of the $x+,000 donation is that Knutson Independent Living Centers wi11 be able to acquire 6633 Lake Shore Drive fmrn the Richfield HRA on or before October I5, 1982 for t±ie stian described in the Agreement CS8,200). Sincerely, John C~ ~ P?~e_nt :<nutson Cons ~ uc~.on Coamany c :: C: ~uc~c 3enson 738 West 66th Street Richfield, Minnesota 55x23 (6~2) 868•x983 July 13, 1982 M \ ~ Dear Property Owner: ~ ~ The Richfield HRA will be considering the purchase of ' 6633 Lake Shore Drive at their meeting on July 19, 1982. (~ ~ Negotiations for the purchase of this property were "~ 0 authorized at a previous meeting on June 1, 1981. At ~ ® that time, it was contemplated that upon purchase, the (~ property would be rented to a low income family. The Q,~ proposed future use of that property has now changed. ~ ~ It 'is now proposed that the house and garage be removed from the site and the basement filled. The land would ,~ be sold to the Lake Shore Drive Condominium as open space. The HRA will meet at 7:30 p.m. in the City Hall Council Chambers. ^ ~ ® ~ Subsequent to the HRA meeting, the Planning Commission ~ will consider a request from the HRA that the commission find that the acquisition and disposition of the property ~ is in conformance with the city's comprehensive plan. ~ Previously, the commission found the acquisition by HRA ~ and reuse for low income housing to be in conformance ~ with the city's plan. However, bec?use the proposed reuse has changed, a new finding is being requested. 'a The Planning Commission meeting will be held on Tuesday, = July 27, 1982, in the Council Chambers of City Hall at ~ 7:30 p.m. #.+ Yeu are encouraged to attend this meeting and .make your ~ feelings known in this matter. Q Sincerely, ^® O O U ~ Rick Jopke ~ City Planner teiephone:869-7521 (612) an equal opportunity employer