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Home My WebLink AboutJuly 18, 1994 Special MeetingCITY OF COLUMBIA HEIGHTS 590 40th Avenue N. E. Columbia Heights, MN 55421-3878 (612) 782-2800 Mayor Joseph Sturdevant Councilmembers Donald G. Jolly Bruce G. Nawrocki Gary L. Peterson Robert W. Ruettimann City Manager Patrick Hentges NOTICE OF OFFICIAL MEETING Notice is hereby given that an official meeting is to be held in the City of Columbia Heights as follows: Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: MAYOR AND CITY COUNCIL MONDAY, JULY 18, 1994 7 P.M. CITY COUNCIL CHAMBERS SPECIAL CITY COUNCIL MEETING 1. Roll Call 2. Sheffield Neighborhood Project - Public Hearing ao Presentation by City Staff Comments/Questions by City Council Comments/Questions from Audience Resolutions on Sheffield Redevelopment Financing RECOMMENDED MOTION: Move to waive the reading .... 1) RECOMMENDED MOTION: Move to adopt Resolution 94-40, APproving Rede- velopment Project Budget for 4600 block of Pierce Street/Fillmore Street. 2) RECOMMENDED MOTION: Move to waive the reading... RECOMMENDED MOTION: Move to adopt Resolution 94-41, Approving Modifica- tion of Downtown C.B.D. Redevelopment Project and the Sheffield Neighborhood Redevelopment and Housing Development Project Boundaries. 3) RECOMMENDED MOTION: Move to waive the reading... RECOMMENDED MOTION: Move to adopt Resolution 94-42, Directing City Manager to Prepare Tax Increment Financing Plan, and Establishing Tax Increment Financing District, and Directing City Manager and HRA to Publish Notice and Hold Public Hearing to Approve Tax Increment Financing Plan. Co Purchase of Property on 4600 Block of Fillmore and Pierce St. RECOMMENDED MOTION: Move to waive the reading... 1) RECOMMENDED MOTION: Move to adopt Resolution 94-43, Authorizing the Purchase of Property Located in the Sheffield Neighborhood (4601 Fillmore Street, and 4619 Fillmore Street). "SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES 2) ALTERNATE MOTION: Movc to Direct City Manager to Prepare Documents Calling for the Condemnation of Private Property Located at 4624 Pierce St. and 4648 Pierce St. and Further Present Said Documents to the City Council for Approval Prior to Proceeding with the Condemnation Section. RECOMMENDED MOTION: Move to Authorize Mayor and City Manager to Enter into Contract with Wilson Development Services for Tcnant Relocation Services. d. Sheffield Rehabilitation Program RECOMMENDED MOTION: Move to waive the reading... 1) RECOMMENDED MOTION: Move to adopt Resolution 94-44, Approving the Implementation of Sheffield CDBG/HOME Duplex Conversion and Owner Occupied Rehabilitation Program. e. Sheffield Land Use and Site Design Study 1) RECOMMENDED MOTION: Move to Direct City Manager to Prepare Necessary Documents for City Council Approval Establishing Deed Restrictions, Design Guidelines, and Lot Layouts, According to the Recommendations Outlined in the McCombs Frank Roes Associates, Inc., Report. 2) RECOMMENDED MOTION: Move to Direct City Manager to Finalize Request for Proposals Soliciting Builder/Developer(s) Interest for Property Located on 4600 Block Between Pierce St. and Fillmore St. and Establishing September 15, 1994, as Submittal Date. ALTERNATE MOTION: Move to Direct City Manager to Prepare Marketing Plan for the City/HRA Sale of Lots Located on the 4600 block Between Pierce St. and Fillmore St. to Individuals or Contractors. f. Adjournment The City of Columbia Heights does not discriminate on the basis of disability in the admission or access .to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in aH City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements. (TDD/782-2806 for deaf only) CITY COUNCIL LETTER Meeting of: July 18, 1994 AGENDA SECTION: RESOLUTIONS/SHEFFIELD ORIGINATING DEPARTMENT: CITY MANAGER'S NO: 2 B CITY MANAGER'S APPROVAL ITEM: RESOLUTIONS ON SHEFFIELD REDEVELOPMENT BY: PATRICK HENTGES BY: ~ FINANCING DATE: 7-15-94 DATE:~-~2~~-' NO: 2 B 1, 2, and 3 The financing structure for the 4600 block between Pierce and Fillmore Street involves consideration of three resolutions. Resolution 94-40 approves redevelopment budget for the 4600 block. As it stands, the redevelopment budget includes the use of the HRA tax lev~ for a period totalling ten years. Likewise, City staff is proposing to use Tax Increment Financing generated from new house values and to a lesser extent a one percent appreciation of the overall property values within the Sheffield neighborhood. Attached please find a preliminary tax increment analysis that calls for generation of tax increments beginning in 1996 and ending in the year 2009. The capture of TIFs within the neighborhood will provide for the opportunity to further reduce the $71,000 HRA lev~. Please find attached an exhibit detailing the $1,330,000 expenditure and revenue program, together with the adopting resolution. REGO~NDED MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 94-40, Approving Redevelopment Project Budget for 4600 block of Pierce Street/Fillmore Street. Resolution 94-41 calls for the combining of the Central Business District CBD TIF District with the Sheffield Redevelopment District. This enables the City to use any surplus TIF payments or repayments from the $1.2 million dollar interfund loans to the CBD TIP District. In the event Columbia Park Clinic prepays their $490,000 special assessment~ $300,000 is available for the project. Columbia Park officials indicated that the prepayment will be made within the next thirty days. In any event, Springsted Financial Advisors have provided a second opinion review of Publicorp's original analysis of the Central Business District/TIF project. According to Dan Hartman, the original projects for the TIF district and the restructuring of the bonds were undertaken in an extremely cautious or conservative fashion. The projections do not call for appreciation of TIF tax values, interest earnings in the fund, or other miscellaneous revenues. The cash flow analysis also assumes that no tax revenues are generated from the Columbia Heights Business Center. COUNCIL ACTION: CITY COUNCIL ,LETT~I Meeting of: July 18, 1994 AGENDA SECTION: RESOLUTIONS/SHEFFIELD ORIGINATING DEPARTHENT: CITY MANAGER'S NO: 2 B CITY MANAGER'S APPROVAL ITEM= RESOLUTIONS ON SHEFFIELD REDEVELOPMENT BY: PATRICK HENTGES BY: FINANCING DATE: 7-15-94 DATE: NO: 2 B 1, 2, and 3 PAGE As you can see, scenario A-1 allows for the use of $300,000 from the Columbia Park properties assessment prepayment be drawn on to finance the Sheffield project and ending the debt service account with a balance of $1,840,912. Scenario B-1 provides continued payment of the Columbia Park properties assessment, leaving an ending balance in the TIF Fund of $2,413,840 F fund. In either case, the cumulative cash balances would allow for repayment of the loans or utilization of excess funds. Please understand that surpluses in the TIF funds would require early retirement debt or dissolving of the TIP districts. In other words, cumulative cash balances are obviously available for other redevelopment uses with the TIF districts. RECONHENDED MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. RECOHHENDED MOTION= Move to adopt Resolution 94-41, Approving Modification of Downtown G>B>D> Redevelopment Project and the Sheffield Neighborhood Redevelopment and Housing Development Project Boundaries. Resolution 94-42 directs Staff to prepare a Tax Increment Financing Plan to establish necessary hearings to approve the plan. Springsted Financial Advisors have prepared various scenarios for a Tax Increment Financing Project covering the Sheffield neighborhood. This information was very conservatively prepared, but nevertheless shows that a redevelopment project on the 4600 block and general appreciation to the neighborhood will develop a significant tax increment. City staff has worked with Gary Winters at Holmes and Graven to determine the eligibility of this project for tax increment financing. It should be noted that there will be some overall loss in tax value and HACA/LGA penalty to the City by lowering the value of the duplexes to that of vacant land. Many cities have been successful in gaining special bills that waive the HAGA/LGA penalty. The City will need the assistance of Anoka County to make tax increment a component of this project. RECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. RECO~HENDED MOTION: Move to adopt Resolution 94-42, Directing City Manager to Prepare Tax Increment Financing Plan, and Establishing Tax Increment Financing District, and Directing City Manager and HRA to Public Notice and Hold Public Hearing to Approve Tax Increment Financing Plan. COUNCIL ACTION: RESOLUTION 94 - RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE DEVELOPMENT PROJECT BUDGET FOR 4600 BLOCK BETWEEN PIERCE STREET AND FILLMORE STREET WHEREAS, the Authority did authorize the creation of a "redevelopment project" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 14 and a "housing development project' as that term is defined at Minnesota Statutes, Section 469.001, Subd. 15, which project is referred to as the Sheffield Redevelopment Housing Development Project (the 'Redevelopment and Housing Development Project") and adopted a "redevelopment plan" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 16 for said "Redevelopment and Housing Development Project" which is referred to as the Sheffield Neighborhood Redevelopment and Housing Development Plan (the 'Redevelopment and Housing Development Plan") on February 8, 1994; and WHEREAS, the City Council did approve the Housing Development and Redevelopment Plan for the Redevelopment and Housing Development Project on February 28, 1994; and WHEREAS, the Redevelopment and Housing Development Plan proposes redevelopment and housing development activities to be undertaken within the project boundaries and to specifically occur to the area defined as the 4600 block between Pierce Street and Fillmore Street (commonly described as "target block"); and WHEREAS, the City has acquired property on the target block and funded said acquisitions through interfund loans of Sewer Infrastructure Fund 652 in the amount of $710,000 and Liquor Fund 609 in the amount of $469,000; and WHEREAS, it is the intention of the City Council to establish a final redevelopment and housing development project budget that specifically establishes expenditure limits and sources of repayment for the Sewer Infrastructure Fund 609 and the Liquor Fund 652. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, THAT: The City Council approves a Redevelopment and Housing Development Project budget for the 4600 block between Pierce and Fillmore Street of $1,330,000 to accomplish property acquisition, demolition/removal, tenant relocation, public improvements, professional services and holding costs related to the objectives set forth within the Housing and Redevelopment plan, and further the attached Exhibit A (Sheffield 4600 Block Redevelopment Expenditures Budget) is hereby adopted, amending to the 1994 Budget Fund 410. The City Council hereby establishes that the interfund loan of $710,000 from Sewer Infrastructure Fund 652 shall be repaid with interest at 4% or $199,000 interest accumulation from proceeds of the Housing and Redevelopment Authority Annual Levy of approximately $71,000 through the year 2003; and with potential of tax increment financing revenues of the Sheffield RedeVelopment and Housing Develop- ment Tax Increment Financing District estimated to be approximately $25,000 annually, over a period not exceeding the year 2009, The City Council hereby establishes a loan of up to $469,000 from Liquor Fund 609 to be repaid in the principal amount only from the use of surplus TiF revenues of the CDB Tax Increment Financing District, estimated at approximately $300,000; and revenues from the sale of cleared land or individual lots on the 4600 block between Pierce and Fillmore Street estimated up to $320,000 in sales proceeds. The City Council approves $131,000 of expenditures for the project derived from revenues including payments of the house removal contract in the amount of $10,000, a 1994 Housing and Redevelopment Authority Annual Levy in the amount of $71,000, and proceeds from the sale of surplus property of the City and HRA in the amount of $70,0O0. Thc City Council approves these sources of funds and expenditures amounts as the current budget for the Sheffield Redevelopment and Housing Development Project located on the 4600 block between Pierce and Fillmore Street aad aay increase in the redevelopment activities will be submitted for approval by the City Council, Approved this Motion by: Seconded by: Voting Aye: Voting Nay: Absent: ATTEST: day of .. ,1994. JoAnne Student City Council Secretary Joseph Sturdevant Mayor CITY OF COLUMBIA HEIGHTS SHEFFIELD 4600 BLOCK REDEVELOPMENT Exhibit A EXPENDITURES PROPERTY ACQUISmON Stauch Properties McNulty Properties Yurkew Properties Groshong Property Balance of Properties PROFESSIONAL SERVICES Legal (Title Ins.-Closing Costs) Financial Advisor Appraisals Planning Survey Administration DEMOLITION/REMOVAL Moving/Demolition Final Grading RELOCATION Tenant Relocation Relocation Services PUBUC IMPROVEMENTS Ughting Landscape HOLDING COST Real Estate Taxes/Fees Utilities Repairs Assessments CONTINGENCY Contingency Account BUDGET 1,151,000.00 540,000.00 162,000.00 108,000.00 65,000.00 276,000.00 40,500.00 3,200.00 4,000.00 5,300.00 4,000.00 4,000.00 20,000.00 20,000.00 0.00 20,000.00 25,000.00 6,000.00 11,500.00 7,000.00 4,500.00 46,000.00 36,000.00 3,000.00 7,000.00 30,000.00 30,000.00 EXPENDITURE: TO DATE 736,521.60 540,000.00 161,476.22 35,045.38 9,068.10 2,000.00 4,757.00 2,311.10 0.00 0.00 0.00 10,510.04 100.78 2,864.29 5,104.59 2,440.38 0.00 BALANCE REMAINING 414,478.40 0.00 523.78 72,954.62 65,000.00 276,000.00 31,431.90 1,200.00 (757.00) 2,988.90 4,000.00 4,000.00 20,000.00 20,000.00 0.00 20,000.00 31,000.00 25,000.00 6,000.00 11,500.00 7,000.00 4,500.00 35,489.96 35,899.22 135.71 1,895.41 (2,440.38) 0.00 TOTAL COST 1,330,000.00 756,099.74 573,900.26 CITY OF COLUMBIA HEIGHTS SHEFFIELD 4600 BLOCK REDEVELOPMENT REVENUE INTERFUND LOANS Sewer Construction Fund Uquor Fund HOUSE REMOVAL CONTRACT 1994 HRA LEVY CITY/HRA SURPLUS PROPERTY PROCEEDS~ TOTAL REVENUE PROPOSED BUDGET 1,179,000.00 710,000.00 469,000.00 10,000.00 71,000.00 70,000.00 1,330,000.00 REVENUE TO DATE BALANCE REMAINING DEFERRED SOURCES OF REPAYMENT TAX INCREMENT FINANCING (9 years}2 LOT SALE ON 4600 BLOCK~ COMMUNITY REDEVELOPMENT FUND4 FUTURE YEAR HRA LEVY (9 years}2 TOTAL OF DEFERRED SOURCES 270,000.00 320,000.00 300,000.00 639,000.00 1,529,000.00 Notes ~ City/HRA now own a number of vacant lots that can be sold and should generate an average of $15,000 per lot or about $116,500 total. 2 Repayment of Sewer Fund loan with Tax Increment & HRA Levy at 4% interest over 9 years. Principal, $710,000; Interest, $199,000; TOTAL; $909,000. 3 In the event the 16-20 undeveloped lots could be sold at or about $20,000 each, proceeds go to repay Liquor Fund or early payment of HRA levy. 4 Fund established for repayment of surplus CDB TIFs, repayment of loans TIF Fund, or prepayment of Parking Ramp Fund used for early prepayment of HRA levy, or repayment of Liquor Fund, or ongoing housing activities. RESOLUTION 94- ~_.~ RESOLUTION OF THE ROUSING AND R]~JavAL~PMENT AUTHORITY IN AND FOR 'THE ~ClTY OF COLUMBIA HEIGHTS, ~i APPROVING A FINANCING PROGRAM FOR THE SH]:FFP~.n NEIGHBORHOOD REDEVELOPMENT AND HOUSING DEVELO~ PRODUCT AS AMENDED. WHEREAS, the Housin~ and Redevelopment Authority in and fop tho City of Columbia Heights, Mt,,,~asota (the 'Authority') did &uthorize the erection of &. W~edevelopment project" as that tern is defined at Minnesota Statutes, section 469.001,-subd. 14 on June 14, 1977 which "redevelopment pl,~n, as that Mm Is defined at Minnesota Statutes, section 469.001, subd. 18, for said redevelopment pz~Ject is refez~ed to es the Downtown C.B.D. Redevelopment YToject (the "Redevelopment Project"); and WHEREAS, the City Council for the City of Columbia Helchta (the "City") did &pprove the Redevelopment P!A~ for said Redevelopment Project on Au~amt 3, 1977; and WHEREAS, the Authority did approve amendments to the Redevelopment pla,', for the Redevelopment Pt, eject with' the most recent amendment approved by the Authority on August 19, 1989; and WHEREAS, the City did approve the amendments to the Redevelopment Plan for the Redevelopment l~oJect with the most recent amendment approved by the City on September 9, 1989; and WHEREAS, the Authority did authorize the creation of a "redevelopment project' as that term is defined at Minnesota Statutes, section 469.001, subd. 14 and & "housin~ development project" as that tern'is defined at Pt~esota Statutes, Section 469.001, subd. 15' which project is referred to as the Sheffield Redevelopment Houstn4K Development Project (the "Redevelopment and Housin~ iDevelopment Project") and adopted a "redevelopment plan" as that term is defined at mn,~seota Statutes, section 469.00I, subd. 16 for said "Redevelopment and Housin~ Development Project" which is referred to se the Sheffield Nel~borhood Redevelopment and 'Houstnc Development Plan (the "Redevelopment and Housin~ Development pl,,~,) on Februo--*y 8, 1994; and WHF, REAS, the City did approve the Housin~ Development and Redevelopment p!s~_ fo~ the Redevelopment and Housin~ Development Project on February 28, 1994; and WHEREAS, the Authority has proposed a proITum for flninatn~ the redevelopment activities in the Redevelopment and Houain~ Development Project and the proposed pro~"rtm involves the use of the City of Co],,mbie HeiSts 1994 · Community Development Bleak Grant (t. he ,1994 CDBG"), ail Interfund Lo~n fr~m the city's Sewer Constx. uction Fund ("Fund 652"), and an Interfund Loan from the City's Liquor Fund ("Fund 609"); and WHEREAS, Authority accepts from the City the proceeds from the 1994 CDBG, Fund $62, and Fund 809 which sba!! be placed in the Sheffield Capitol Improvement c~-7~ 1 Fund ("Fund 410") to finance costs identified in the Redevelopment Plan and the Redevelopment and Housing Development Pkn; and WHEREAS, the Atitho~ity intends to ~epay any f~ p~d~ by f~m ~d 410 ~m ~y s~l~~ ~ds w~eh my R~e~mnt ~t ~ 19~ ~Eh AP~_2~I CBD TIF 'Dh~ct"),. ~e Au~o~ ~ p~~ ~ b~' fo~ ~ ~ 19OS *~u~ 2008 (wH~ ~-'~ ~'), ~d ~e ~~ent of ~e Se~o~ H~s~ ~d (W~d 4~') by ~e Ci~ ~m ~e Ci~ T~ ~mnt ~d fo~ ~e ~t~ C.B.D. In~mnt ~~ ~t~et. NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA that: (1) The Authority approves the ~eceipt of the p~oceeds from Fund 410 and at'L'ecs to ~ePay FUnd 652 and Fund 609 from the surplus TIF, CBD TIF District, the H~A AnnUal Levy and Fund 404 which financing program shall be known as the Sheffield Redevelopment' Funding Program. ' Approved this 10thday of May , 1994. Motion by: Murzyn Seconded by: Jindra Vo~n~Aye= Murzyn, Jindra, Dustin, Heintz Vottn~N&y: Nawrocki Abasnt: ~AT, .: ,~ . Its Executive Dh. ecto~ Its C{~at~' DATE: JUNE 30, 1994 FROM: RE: PATRICK W. HENTGES, CITY MANAGER DON SCHNEIDER, COMMUNITY DEVELOPMENT DIRECTOR ~ LISTING OF HRA/CITY OWNED LOTS WHICH HRA/CITY CAN SELL AND USE PROCEEDS FOR HOUSING RELATED PURPOSES IN THE SHEFFIELD NE I GHBORHOOD As per your request yesterday, the following is a list of the properties with the estimated conservative amounts we can expect to recover from the sale of the properties: ADDRESS/PIN LOT SIZE (in feet) ESTIMATED CONSERVATIVE SALE VALUE 545 38th Ave NE 35-30-24-34-0037 52.5 x 135 $17,000 547 38th Ave NE 35-30-24-34-0036 52.5 X 135 $17,000 566 38th Ave NE (New Parcel*) 58.4 x 123 $17,500 572 38th Ave NE (New Parcel*) 58.3 x 123 $17,500 578 38th Ave NE (New Parcel*) 58.3 x 123 $17,500 1221 40th Ave NE 36-30-24-31-0003 47 x 128 $14,000 685 46 1/2 Ave NE 26-30-24-43-0133 82 x 149.05 $16,000 TOTAL: $116,500 AS we discussed earlier, we will secure appraisals of the property for resale and then offer them first to Columbia Heights residents for the appraised value with construction of houses to start within one year. Then if the properties do not sell, we will offer them at the appraised value metro-wide with development to start within one year. Please call or see me if you have any questions. *Four parcels on 38th Ave NE in process of being resplit and combined into three larger parcels(presently 564, 570, 572 & 578 38th Ave). Formal approvals should be completed by August 9. CERTIFICATE OF SURVEY KURTH SURVEYING lNG. 400a d[FF~RSO# STR£~:T I 3 qTH '"":_':"" ,),T, SCAt.[ I ' ,i~ O.-. IliON MONUMI[NT 5C"'~' EXISTIN~ [2/~L DESCRIPTIOfl LOtS 17, 18, and 19, Block 83, COLL~BIA HEIGHTS M/HID[ TO NII/NEAPO~IS, arzl th~ Sotlth 1/2 of th~ vacated alley lytn~ ~orth and adjacent to aaid lot~, Anc~ COt~lty~ Hinne~ota. PROPCI~D TRACT "A" Lot 17, and the Bast Half of Lot 18, (by proportional maasu~e), B1cck 83, COMaiBIA HEIG~fS ~ TO NINI~APOLIS, Ancka Comity, Nillr~sota, ~ the South Half of ~ vacated all®y lyir~ North ~nd edjacent thereto. PROPO~D TRACT "B" LOt 19 and th~ W~t Half of Lot 18, (b~ ~ro~ortto~l maaure), Block 83, CO~t~BIA H~IGHT~ ~ TO NIN~RAPOLIS, Anoka Cotmty, Hinnsaota,' and the South Half of the vacated alley lyfr~2 North and adjacent thereto. CER T IF I CATE FOR o~.,.m ~^ ~INNESO~A ~EGISIRATION NO, OF SURVEY KURTH SURVEYING. INC. 4002 dEFFER$ON ST. N.E. COLUMBIA tlEIOttT$, let. 5.54~'1 (6121 ?Bil-9769 FAX 1612) 788-7602 $CAL£ Ill ~ 7.f]' O · IRON MONUMENT BEARINGS ARE ON AN ASSUMED DATUM I ~CISTII~ LEGAL DESCRIPTI0fl FOR 564 ~ A~ ~t 1~, ~ ~ west 5 f~t of ~t 12, BI~ 89, ~L~IA ~I~ Miyata. ~XI~TII~ T.F2L DE3(I~IPTI0fl FOR 570 ~ AVDIUg ~ot 11 and Lot 12, except the ~t 5 f~t, Block 89, Ninn~ta. ~tXIl~fll~ 2 DEIqCRIPTIOIt ~ 572 38Tfl AVI~IUE Lot 10, Block 89, ~II II~I(]lfl~ ~X TO HI--LIS, AnoVa County, ltim~sota. ~CI~I~ UiG~ plL.qei~IP'tlOfl ~ 578 ~ A~ ~t 9, BI~ 89, ~IA ~IIB ! ~ HI~I8, ~ ~ty, ~t 9 ~ ~ e~t 23.3 f~t of ~t 10, gl~k 89, ~IA ~I~S ~ ~ HI2IS, ab ~ty, M~sota. T~t ~ o[ ~t 10 ly~ gest o[ ~ e~t 23.3 f~t t~r~f, all o[ ~t 1~, ~ t~ e~t 1~.6 [eet o~ ~t 12, all in BI~R 89, ~L~IA ~I~S ~ ~ HI--LIS, ~ ~ty, T~t ~t of ~t 12, 1yi~ ~st of ~ ~t 11.6 feet ~r~f, ~ all of ~t 13, BI~ 89, CO[~IA --'-"- I]EC - 2 1991 UNIFORM RESIDENTIAL APPRAISAL REPORT File Ne. LENOER DISCRETIONARY USE Sale IN'ice Mm'lgaoe Amaunl kloflgage Type D~ceum Poin~ ~md Olhm Concessions Paid by ~ $ PrOll~d¥ Deg~ril~ & Anilysii ~Y~l~h~ ~h~ ~Y ~oka Sim ~ Z,pC~ ~5421 ~~ ~7. 18 & 19 B~ 83 ~l. Hts. .~l~c~ Miss Shirley S~er ~pR~ L~/~ C~ ~dh~m ~ , ~C~(~/VA) ~: ~ ~'~ ~ ~ S6.27].65 ~ ~ ~ ~ C~venm~ lo E~enl ~M~I~Y ~ ~1~ ~ In Baize ~ Ova S~ C~enm~e Io ~ls ~ET~ ~ I I ~f 3 ~s. q[~l 3'6 ~. [ ] Ovm 6 Mos ~acy d P~k Tfan~lat~ -- I ~ti.M~ I~m~ess· ~1~.,., ~L 4o L~ llfl 2 5 'I I W~t (over ~t ~ [ / C~S: Sub~ect property is near th~ wes~ ~nd Properties west and north ar~ ~ndu~{al. N~w m8~ encourage u~radln~. os' x ' " ' Public i~ivale Positive to street Landscaping Standard. ~Neway N(31n~ FEMA Flood Hazard ~' Ma~lZ~ .... HIGHEST & BEST USE: ~eSeOl Use Othe, Use * X UTI. IT~ S Pulik Othll I ~ IMPROVEMENTS Type E~ctrmty ,~ I~','ls""t As~h~_t (new) ~ G~s I~bl6utte, (:::)~rete (new) w,,., - , Sloml Seww ~ ~ (~t ~m~ ~m~. e~nts. ~cial assessors, sl~ a~eas, e~ ): EXTERIOR ~SCRIPTION Fomdapon Gc~crete Exlm. W~$ (X~positicm Quttlfs & Ownsp~. Nc) Ww~w Type Double Hung __ Sm,,,, ~ ManulaCl~ed Ho~se -- FOUNDATION Cf awl Space Basemem Dampness Settlement InlestaPon GARMENT Area Sq, FI, % Fimshed c~g WaNs Floo, Outside Entry INSULATI0~ Ceiling , Adequacy Enm'gy Efficient Items: GENERAL 0~SCRIPTION ~its 1 Straits 2 Type (Det.lAtl.) Design (Sty~) old_2~ Existing Pm~o~ed __ Under Co~structlo~ __ ~ (yrs.) 1917 Will TdmtFif~h BIm Fk)~ ~m HEAtiNG Type Fuel COOLING Cemral Olhlf DemcMa EQUIP, ATTIC ,eX 0ExKM0a (Phlmlr, M luMle~l mi e~#mal mmlequ~m, fepaks needed, modernization, ~.): mafklt e0Milk~l led Ixlvallflcl a~l impact In lubjecllmarket Ifil reOirmng Io~n oil,~ums, inteffll bu,/dovms and conces~km~: Poor ma] conditions just prior to holidays in Minnesota. ~h and Form ?0 lO/BO Mil F(W~ 1004 10/86 UNIFORM RESIDENTIAL P ISAL REPORT mb No. Purpose of Apfxaisal is to eslmmle Markel Value as delir~ in lira Certification & Slalement BLNL01N6 SKETCH (SHOW GROSS LIVING AREA AROVE GRADE) SEE ATTACHED Second floor figured at 75% of main floor area. (Not Required by Freddie Mac and Fannie Mae) ODes property confrere to appficab4e H(JOIVA properly standa'ds? [] Yes [] No NO, explain: of Lin~lin~ Condit~ms ESTIMATED REPROOUCTIO~ COST-NEW- OF IMPROVEMENTS: Dwellmg _~u].J~u____Sq, Ft,~L~$ 45_~ffl =$ 36.810 -- s~ Ft. G s -- Extras ~t-~.~ ~r~l l~'Fr'i~, Special EnefW Efficient Items Pmch~s, Pa~s, etc. ~ = 2.. 500 Garage/Carpal __ Sq. Ft. O $ Toial Estimated Cost New ........................ $ ~ Va~ o~ Im~o~m~ .............. ~ $ 12 t 040 ~s~mal~ sm~ v~tu~ .lo1:8..@17,500.. - $ 35.000 Name of Wmranly Pmgmm Warranty Coverage Expires The u~def~gned has recited three recruit sales cd p~x)e~tie8 mom a~miisr and Ixoximale to ~Jb~c! a~d has co~ these m the ~ analya~. The deecrip~io~ includes · do~ a~stment, rellectm~ marke~ reactio~ to the~e ilem$ DJ' 8~l~fk:ant variation between the SUIY~I and compara~ Ixo~om'ties. # a mgn~icanl imm in Ihe co,rat:de p~oflerly is sup~ to. o~ n~xe la~ora~ than. lhe ~ Ixop~'ty. a m~ua (_) ad~u~to~ is made, thus reducing the indicated value cd sublecl; i~ a ~gndlcant item i~ Ihe c.o~rat~e ~s i~io~ to, ~ less favorable than. the ~ ~=¢~'ty. a p4us [+) adjustment is made. IheS lncreasmg the indicaled value cd the sublecl ITEM I SUBJECT COMPARABLE NO. ! COMPARABLE NO. 2 COMPARABLE NO. 3 /l~dress !Proximity tc Sd)ject Sales INice Price/Gross I Jr. Area VALUE ARJUSTMENTS SSes 0~ Fina~ Corn:eS·me· Date o~ Sale/Time Loca~on Hap_ S~elview Above Grade Room Count Gross Living Area Basemen & Fi~sh~l Rooms Bdow 6ra~e Rmol~m~ Utmty ~lCoom,g Pinches, Patio, ~ En~gy Effi~mt ~ Ottm (e.g. kltch~ iqdp. mmcleWlg) 547 38th Ave Col. Hts. 4320 2r~ St. N.E. Coltmlh~a F~iqh~ 5 R]c~ IIIIIIIIIIIIIIIIIIIIIIIIIIIllls 4,~. 500 $ ~. ~ c~llllllllllllllllllllllllll M.T,.R. (3ES~qlPH~ I $38,000 :- 1;500 3909 Polk St. N.E. 7 R1,'w~ks ~ JlllllllifllllllllllllllllJlls ~. qoo s4~. 7~ ~lllfllllllllllllllllllllll M~,~ ~i~ = Value definitim that are stated i~ value, E FmHA, HUO &/m VA Inslructimm, Freddie Mac From 436 (Rev, 7/66)/Farmle Mae F~'m 1004B (Rev. 7/66) flied with client 16 J---] attached. I I"l I~l~ TM ~iT I~ff, A1 WI, ff Tgi IIBg ~! &lff Nnvnmher 2 5 Il 91 II III 14 It I (WI) owttly: that to IM I)e~J.of my (our) k.owled08 Ired i ~ ~ ~ data usod here~n are true and co.oct: Ihal I (we) pe·mafly InaMcted the sd)ject =,....,.- . .,, .,,,.,.., . .. ,, .., ,., , ,.. .. ....... ,..,.,, ...., ~ mm£ao~m u · watson - (if appllca~) ,'~,t, ...... ;~+;+: .: ~ir.l~; Fteddit ~ Form 70 10t8~ Fanme Mae Rxm 1004 10/86 CERTIFICATE OF SURVEY FOR c~, ~.-.{~-~,~1'~ ~,~-.~-,,. It~#1;IIT C~'#1'IF~' I~T Tml S~V~, P~, O~ ~P~T ~S o.~ - 5~.~ - ~ ~'~ ~'"~"~ o.~ ~, ~ [ ~, ~ .... ~Z,~ -- ~ ./ KURTH SURVEYING INC. 400~ J~:FF~RSON STfl££T N.£, COLUMIIIA H[IOflTS IdlNNl:'SOTA O~ laG# blOh~ld[#T /XI~TIN~ L~L DESCRIPTIOtl Lots 17, 18, and 19, Block 83, COL~4BIA HEIGHTS AN~X TO NINNEAPOLIS, and the South 1/2 of the vacated alley l¥/n~ North a~d adJ~ent to s~id lots, ~ Cot~ty, Lot 17, and the l~st llalf of ~ot 18, (b,/ proportional aeasure), Block 83, COLUNBIA H~I~tTS MittFA TO NINNFAPOLIS, Anoka County, NJ.a~asota, ~ ~ South Half o~ the vacated alley lying North and edjacent thereto. Lot i9 and the ~t Half of Lot 18, (by provortional measure), Block 83, COLUNBIA HEIGitTS ~ TO KINNFAPO&IS, ~ County, Ninnesota,'and the Sotlth Half of the vacated alley Iy:L,'~ ~orth and adjacent thereto. DATE= JUNE 30, 1994 FROM REs PATRICK W. HENTGES, CITY MANAGER DON SCHNEIDER, COMMUNITY DEVELOPMENT DIRECTOR ~ LISTING OF HRA/CITY OWNED LOTS WHICH HRA/CITY CAN SELL AND USE PROCEEDS FOR HOUSING RELATED PURPOSES IN THE SHEFFIELD NEIGHBORHOOD As per your request yesterday, estimated conservative amounts properties~ the following is a list of the properties with the we can expect to recover from the sale of the ( in feet) ESTIMATED CONSERVATIVE 545 38th Ave NE 35-30-24-34-0037 52.5 x 135 $17,000 547 38th Ave NE 35-30-24-34-0036 52.5 x 135 $17,000 566 38th Ave NE (New Parcel*) 58.4 x 123 $17,500 572 38th Ave NE (New Parcel*) 58.3 x 123 $17,500 578 38th Ave NE (New Parcel*) 58.3 x 123 $17,500 1221 40th Ave NE 36-30-24-31-0003 47 x 128 $14,000 685 46 1/2 Ave NE 26-30-24-43-0133 82 x 149.05 $16,000 TOTALs $116,500 As we discussed earlier, we will secure appraisals of the property for resale and then offer thom first to Columbia Heights residents for the appraised value with const~ction of houses to start within one year. Then if the properties do not sell, we will offer thom at the appraised value metro-wide with develolxnent to start within one year. Please call or see me if you have any questions. *Four parcels on 38th Ave NE in process of being respl£t and combined into three larger parcels(presently 564, 570, 572 & 578 38th Ave). Formal approVals should be completed by August 9. RESOLUTION 94- l~ 1 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE MODIFICATION OF DOWNTOWN C.B.D. REDEVELOPMENT PROJECT AND THE SHEFFIELD NEIGHBORHOOD REDEVELOPMENT AND HOUSING DEVELOPMENT PROJECT BOUNDARIES WHEREAS, the Housing and Redevelopment Authority in and for the City of Columbia Heights, Minnesota (the 'Authority') did authorize the creation of a 'redevelopment project' as that term is defined at Minnesota Statutes, Section 469.001, Subd. 14 on June 14, 1977, which "redevelop- ment plan' as that term is defined at Minnesota Statutes, Section 469.001, Subd. 16, for said redevelopment project is referred to as the Downtown C.B.D. Redevelopment Project (the 'Redevelopment Project'); and WHEREAS, the City Council for the City of Columbia Heights (the 'City') did approve the Redevelopment Plan for said Redevelopment Project on August 3, 1977; and WHEREAS, the Authority did approve amendments to the Redevelopment Plan for the Redevelopment Project with the most recent amendment approved by the City on September 9, 1989; and WHEREAS, the Authority did authorize the creation of a 'redevelopment project' as that term is defined at Minnesota Statutes, Section 469.001, Subd. 14 and a 'housing development project' as that term is defined at Minnesota Statutes, Section 469.001, Subd. 15, which project is referred to as the Sheffield Redevelopment and Housing Development Project (the "Redevelopment and Housing Development Project') and adopted a 'redevelopment plan' as that term is defined at Minnesota Statutes, Section 469.001, Subd. 16 for said 'Redevelopment and Housing Development Plan (the 'Redevelopment and Housing Development Plan') on February 8, 1994; and WHEREAS, the City did approve the Redevelopment and Housing Development Plan for the Redevelopment and Housing Development Project on February 28, 1994; and WHEREAS, the Authority has proposed a program for financing the redevelopment activities in the Redevelopment and Housing Development Project and the proposed program involves the use of any surplus funds which may become available from the Redevelopment Project; and WHEREAS, in order for the Authority to use any surplus funds from the Redevelopment Project for activities to be undertaken by the Authority and the City in the Redevelopment and Housing Development Project, the Authority and the City must approve the modification of the boundaries of the Redevelopment Project and the Redevelopment and Housing Development Project so as to merge the Redevelopment Project nd the Redevelopment and Housing Development Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota, that: The City Council approves the modification of the Downtown C.B.D. Redevelopment Plan for tho Downtown C.B.D. Redevelopment Project and the Sheffield Redevelopment and Housing Development Plan for the Sheffield Redevelopment and Housing development Project in order to merge the boundaries of thc respective Redevelopment Project and Redevelopment and Housing Development Project. Approved this day of , 1994. Motion by: Seconded by: Voting Aye: Voting Nay: Absent: ATTEST: JoAnne Student City Council Secretary Joseph Sturdevant Mayor RESOLUTION 94- 10 RKSOLWION OF ~HE HOUSING AND REDEVXI~PMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS, MINNKflOTA APPROVING ' THE . 'MODIFICATION OF DOWNTOWN C.B.D. REDKVI~OPMENT PROJECT AND THE SHXFFI~ NEIGHBORHOOD REDKV~)PM]~T AND HOUSING DEVELOPMENT PROJECT BOUNDARIES. WHEREAS, the Housing and Redevelopment Authority in and fo= the City of Columbia Heights, Minnesota (the "Authority") did authorize the c~eation of a "l.edevelopment project" as that 'term is defined at Minnesota Statutes, section 469.001, subd. 14 on June 14, 1977 which "redevelopment pla~" as that teem is defined at Minnesota Statutes, section 469.001, subd. 16, fol. said l.edevelopment project is r~fel, red to as the Downtown C.B.D. Redevelopment P~oJect (the "Redevelopment Pt-oJect"); and WHEREAS, the City Council fol. the City of Columbia Heights (the "City") did approve the Redevelopment Plan roi' said Redevelopment Project on Au~mt 3, 1977; and WHEREAS, the Authority did approve amendments to the Redevelopment Plan fol. the Redevelopment P~oJect with the most r~cent amendment approved by the Authority on August 19, 1989; and WHEREAS, the City did approve the amendments to the Redevelopment Plan fol. the RedeVelopment Project with the most recent amendment approved by the City on Sept.rebel. 9, 1989; and WHEREAS, the Authority did authorize the el.cation of a "redevelopment project" as that term is defined at Minnesota Statutes, section 469.001, subd. 14 and a '"houstn~ development project" as that teton is defined at Minnesota Statutes, section 469.001, subd. 15, which project is refel.red to as the Sheffield Redevelopment and HoUsin~ DeveloPment Project (the "Redevelopment and Housing Development Project") and adopted a "r~development plan" as that term is defined at Minnesota Statutes, section 469.001, subd. 16 for said "Redevelopment and Housing Developm8nt Project" which ia r~eferred to as the Sheffield Nei~hbol.hood RedeveloPment and Housing Development Plan (the "Redevelopment and Housing Development Plan" ) on Febmtary 8, 1994; and WHEREAS, the City did approve the Redevelopment and Housin~ Development Plan fol. the Redevelopment and Housin~ Development Project on Febmm~- 28, 1994; and WHEREAS, the Authority has proposed a proL~m fol. financing the redevelopment activities in the Redevelopment and Housin~ Development Project and the proposed progT~n involves the use of any surplus funds whfah may bee0me avaihble from the Redevelopment Project; and WHEREAS, in ordel, fol. the Authority to use any surplus funds from the Redevelopment Project fol. activities to be undel.taken by the Authority and the City in the Redevelopment and Housing Development Project, the Authority and the City must approve the modification of the boundaries of the Redevelopment Pt, oject and CL160-71 the Redevelopment and Housing Development P~oJect so as to mer~e the Redevelopment Project and the Redevelopment and Housing DevelOPment Project. NOW, THEREFORE BE IT RESOLVED by the Board of Comm~saloners of the Housin~ and Redevelopment Authority in and for the City of Columbia Heights, M~nnesota t~t: (1) The Board of Commissioners approve the modification of the Downtown C. B.D. Redevelopment Plan for the Downtown C.B.D. Redevelopment Project and the Sheffield Redevelopment and Housing Development Plan for the Sheffield Redevelopment and Housing Development Project in order to merge the boundaries of the respective Redevelopment Project and Redevelopment and Housing · Development Project conditioned upon the favorable review of said proposed modification by the City Plannin~ Commission. (2) The Board of Commia_ sionet~ authorize the Executive Director for the Authorit~ to transmit the modification of the Downtown C. B.D. Redevelopment Plan for' the Downtown C. B.D. Redevelopment Project and the Sheffield Redevelopment and Housing Development Plan for the Sheffield Housin~ Development and Redevelopment Project to the City Planning Commission for its review and comment as to the conformance of the proposed modification of the respective Redevelopment P?n and Redevelopment and Houstn~ Development Plan with the comprehensive plan for the City of Columbia Heights. (3) Upon the Authority's receipt of the comments by the City p]_A,,~ng Comm~ssion, the Authority authorizes the Executive Director to transmit the Downtown C. B.D. Redevelopment Plan as modified, and the Sheffield Redevelopment and Housin~ DevelOpment Plan as modified, to the City Council for its review and approval. Approved this 10thday of t~¥ , 1994. Motion by: Mur~yn Seconded by: Jindra Vo~n~Aye: Murzyn, Jindra, Dustin, Heintz Voting Nay: Nawrocki Absent: ATTEST: Its Executive Director Its Chair CX,1~0-71 2 e?/]5/94 151B2 ~ 12 223 3ee2 SPRZHtSTED ZHC. 12 8PRINC~aT£D PUBLIC FINA~,E ADV~ORS Home Office ~ East Seven~ Place b,nt Paul, ~ S5101.2143 (612) F~: (612) ~23 120 South Sixth Street Suite 2507 Minnei 6~]'2[ MN 55402.1800 333-9177 Fax: (612) 34g. S230 16655 We~t Blue~x2und Rood S~te 2(J0 Fix: (414) 782.2904 6800 ~C~eie_ 8oulewd Su,te SDO Ovedohd PMk. KS 66211.1S33 (913) 34S-8062 Fix: (913) 34S-1770 1850 K StrNt NW Suite 215 Wlshinlton. DC (202l 466.]344 Fax: [202) 223.1362 July 15, 1994 Mr. Pitri~ W. HIntgei, City Manager City of Co4umbla Heights 6~0 40th Avenue NE Columbia Holghtl, MN 5542%3878 Dear Pat: AttlcM)d to thio letter ere tho two IMnariol that 8prlnglted Incorporated hie put to0ither relative to the City of Columbia Heights and It8 tax increment financing cash flow for all of its ®xlating dlltrtote. Scenario 1-A e#umet no additional delinquent taxe8 paid end a prepayment of ipecial isse#me~l on the p!rking ramp Ioc~tad It 40th and Central. In developing thit Iceniflo, we .u~ed $100,000 of the prepayment which is part of the other reVenuel shown in Column 9. The · footnote, which references other revonuel, thOWi that there are other revenuel Gaming from parking ramp operitionl 'and i ~pald Ipacial Bile#merit. NI revenuei from tho tax increment diitrk~i themaelv# are it their Gurmnt oc)lle~tion level with no [nflattormry rioter. Thil ii I COnlervitive epprolch, but one thlt II beat in proje=ting tax Increment dlstrim. Oesh flow, el Indt~ted in Column 19, Is pceltlve throughout with laq~ Gumulative belincei at the end. It b worth noting that thole large.balancel am due to'the $1,263,024 loan mede to the districts, which 18 refleolod In' the beginn'l~ balan~. Thll ,would india, ate to mo tl~t il ii I~fe to e#ume that the other $300,000 of the parkh~l ramp ailesimeflt muld be made available for other Ul~l. Scenario B-1 Ihow~ no prepayment of the special elsolsment on the parking ramp; and, as you (=an see, thoma funds are available to the tax Iht, resent districtl throughout which ~reatem an even more positive olmh flow relative to (mmulative balances in the dlstriola. City of Columbia Helght~, Minne~ot~ July 15, 1994 Page 2 I hope that thle informat~on i. helpful to you. contac~ me. 8tncerely, Daniel W. Hmlmon V'~o Proficient ~ ~2 223 3Ce2 $PRZNaST£D ZNC. It' I can bo o! any further aseistanoe to you, please e3 /Saint Paul Oflt~ Endo~urel City of Cohambia Heights, Minnesota Tax Increment F"1r1ancing Cash Flow Scenario A1 -No Addilional Delinquent Taxes Paid. Prepayment of Spacial Asaeumant on Parking Ramp 1---------PrajacllldTl Rawrua (a) ---------1 1----------DebtService --------, "" C7 ce H2 K2 � 0lt.-11187 1990 1991 1993 Tl Period Downtown lbimtDwn � 5'Ai-, Uulli-Plan T-.......Total (cl) G.O.,, G.O. TI G.o.n G.O. Tl y-Ending CSD(BOI C8D (114) ..._ a.. c.a• Paid (b) (c) """'--Rebdng � IWnSng IWlndalQ (1) (2) (3) (4) (S} (&) {7) (Ill C9) (11) (121 (IS) (f4) (15J LW7/01l94 1994 D!MJ1l94 441,418 20,753 54.1159 39.78S a 20.Jl92 244,2711 11121.s&f 1.155 178.621 13.733 0:W1195 441,418 20,753 54,859 39.78S a a 556.593 38,155 1,011.1121 1118.733 1995 09,01195 441.418 20,753 54.659 ·38.7BS a 4:0S 560,1169 158,,7'111 11.INl3 03/111196 441.4111 20,753 54.6511 39.783 a a 556.593 1,121,7'90 (99,883 11196 09/01/98 441.4111 20,753 54.658 38.788 a 4.2711 560.8611 132.665 5.150 03/01/97 441.418 20,753 SU59 39.783 a 0 556,593 1,087,665 205.150 1997 O!W'l/97 441,418 20.753 54.659 311.7113 0 4.276 560,869 108..313 CIS/01/911 441.4111 20.753 54.15S9 39.7113 0 0 556..593 1.DIIB.313 19911 09/111/911 441,418 20.7'53 54.1559 0 4.278 521.106 82.0711 OS/01199 441,418 20.753 54.659 0 a 516Jl30 1MIJ118 1991 D!MJ1,99 441.418 20.753 54.859 a 4,276 521.106 56.D9CI 03ID1(2000 441.418 20,753 54.659 0 a 516.1130 11156,090 2000 D!MJ1f2000 441.4111 20,753 54.659 0 4.278 521,106 2DJl!IO 0:Wl/2001 441,4111 20.753 54.859 a 0 515,830 ll90..ll90 2001 09,(!1/2001 441,4111 20.753 54,659 0 4.2711 521.1116 11.380 03,Cll/2002 441,4111 20.753 54,659 0 a Slfl.1130 226,3811 2002 09,Qt/2002 441,4111 20.753 54,859 0 427& 521.1116 885,0DD 031111 /2003 441,4111 20.753 54.859 0 a 516.1130 2003 09/0112003 441.418 20.753 54.659 0 4.2711 521,106 920.00D 09,'l)1/20114 441.418 20.753 54..659 a 0 516,113D 200C 1191D1'2004 441,418 20,753 54.&59 a 4.2711 521.106 920,000 09,'l)1/217J5 441.418 20,753 54.1159 0 0 516.830 20115 O!IIUf /2005 441.4111 20,753 54,659 a 4,2711 521,106 920..000 o:w1,zaas 441,4111 20.753 54.659 0 a 518.830 2008 O!Ml1/2006 441,4111 20.753 54,659 0 4.2711 521,11115 920,000 D3.Cl1/2007 441,418 20.753 54.659 0 0 516,113D 2007 09,01/2007 441.418 20,753 54.1159 a 42711 521.106 920.000 03/01 /20011 441.418 20,753 54,859 a 0 518,830 2llOII 09ID1 /200II 441.418 20,753 54,85111 a a 4278 521,106 920.000 a:w,nooa 441.4111 20.753 54,659 a 0 a 516.830 2009 09,'111/2009 441,418 20.753 54.659 0 0 4.278 521,106 425,000 �1/2010 a a 0 0 0 0 0 1:i,ea,,947 643.343 1,694.429 3111.104 a 211.892 308,416 16,6611,931 37.310 8.1130.11011 11.1519.558 ll32.D90 (a) Pn,;.,:tad tu �---baed-1he.U, 11194 TipoapatytM� �'-llllly). (b) Dalinqi.-_paid_•ol,My1994� 11 .............. ..._af�---natpald. To1111 T._ I A3 Payaa19119 0 (c) Aaua,-ColumbiaPwk Pn,pe,tles P'9PIIYS•S490,000+ apec1a1__..,.. ._paitcing r..-.pllDcaled a140ltoand c.n.& p.,._1990 !68.121 and S,90,000of .._ p,9Payl!Wllie included on 911/94. _,. ..... adllllllnal prapllid epec:ial a,101 SS0.000. n:ludn S4,276 in ...... pairing ramp -- (di 0-nat include polllnllll rellwtr,w,twnlnQI or HRA propatyecqui,dtlc,n-. <•I 8egirw,ing....._ .. ..,711/94(betoll,_...tyP"Df*1YtliX�- Pr....,..i by: SPRINGSTED � ( 14-.lJl-94 J Pll)llllie1911 212.515 ....,...1. 222.423 p..;......11188 222.304 7211..363 CcMny ,__.. CUlfflMliw AdnL Tallll � Cah Tl .,_ ex,,__ (.Da6:it) 8elan:8(•) v- (18) (17) (Ill) (19) (20) 1,015.033 1993 11.500 203.CICl9 0 1248.509 (71,364) 943.669 1994 11.500 177,953 a f,321,453 (S111,944J 5111.725 111115 11.SOO 1C9.315 0 1.292.1115 (324,989) 237.056 1996 11.500 119.1113 a 1 .099,313 (100Ji64J 136,393 1997 11,500 93,57111 a 1.1127.078 (82.7211) 53.673 1998 11.500 �.590 0 9511.0IIO 14.255 fITJRS 1999 11,500 32.390 a llll0.890 114.655 1112.5114 2000 11.!iOD 17.IIIID 0 229.31111 793,675 971S.259 2001 11.500 11118.SOO 0 a 141,435 1.117,694 2II02 11,500 931.500 a 0 1116.435 1.224,130 2003 11..500 !ISi .soa 0 a 106,435 1.330.585 2004 11.500 931.SOO a 0 1DS.435 1,437,000 2005 11.500 931.SOO 0 0 106,435 1.54S.435 2006 11.500 9Cn.SOO a 0 106.435 1,649,871 'llJft1 11,500 931,500 0 0 106,435 1.7511.306 2008 11..500 438.500 a 0 IM.SOS 1.840,912 2009 1114.000 15.843,0SS 825,879 C7 ca H2 I Total I 1,439 0 �, 1,4391 0 a JI 69,1211 0 2 212.5111 a 3 222.427 0 1,398 224.28111 1,439 1,403 561\ 1211.ns1 F:\USEAS\MARK\TIF\COUiGTS1\FLOWA1.WIU " Cily or Coiumbia Haighta, llinnesota Tax lncntment Financing Cash Flow Scenario B1 -No Additional Delinquent Taxes Paid, No Prepay111e11t at Special Assessment on Parking Ramp !---------ProjactladTI� (e,)---------1 1----------DallCs.wic:a --------, AS C7 ca HZ 1(2 0alinqlant 0lwr 111117 1990 1991 Tl Period � � l.Wwtsily aua.. ....,._Plan T-'---TDlll(d) G.0. TI G.O.TI G.0.11 y_, fndin9 CSD(IIO} C80(84) A_,.. Lake Ce,gl Paid I.II) lcJ � Aaudng CABS � (I) (2) (3) (4} (5) (8) (7l (I) (9t (111 (12) {IS) (14) f/7/01/94 199' 09101.194 441.418 20.753 54,659 31.1'63 C 2D.IIB2 5U7& 631..561 1.t55 17SJl21 03101/95 441.418 20.753 54,659 39.763 0 95.366 651,.959 3S.1515 1,G11,1121 19115 Q9101J95 441.418 20,753 54.658 39,763 0 4.278 560.11811 156.790 03101196 441.418 20.753 54,659 39,763 0 95.366 651.959 1,121.790 19911 09.01196 441.418 20.753 54,659 39.763 0 4.276 5l50.INi9 132..615 o:w1197 441.411 20,753 54.659 39,7SS 0 95,3815 651.959 1.1187.6155 1987 09/01197 441.418 20.753 54.659 39,763 0 4,276 !i&0..8158 108.a13 OSJOl/98 441.418 20,753 54.659 39,763 0 95,3811 651..9511 1.G88.S13 19!111 09101198 441.418 20.753 54.659 0 4,276 521.106 112,078 03.'0119!1 441.418 20,753 54,6'19 0 115,3811 &12.196 1,027.078 19911 09/Dlf99 441.418 20,753 54,659 0 4.276 521,106 58.oBO 03,1)1J2QOO 441.41& 20.753 54,659 0 95..366 612.196 866,DBO 2000 11910l/2000 441.41& 20.753 54.659 0 4.276 521,106 2DJIIIO 03,'01/2001 441,418 20.753 54.659 0 0 115.366 1112.196 1191).890 2001 IJ9IQ1/2001 441,418 20.753 54.659 0 0 4276 521.106 6,380 03,'01/2002 441,418 20.753 54.659 0 0 95.366 612.195 226,380 2002 OIMl1/2002 441,418 Z0.753 54..659 0 0 4276 521.106 885.000 03,'01/200S 441,418 20.753 54.659 0 0 D 516.113D l!D03 OIMl1,ZOO, 441,418 20.753 54.659 0 0 4.278 521.1116 920.000 0311)1l2004 441.418 20.753 54..&59 0 0 0 516,830 200' 09,01/2004 441,418 20,753 54.659 0 0 4.276 521,106 920.000 031111121X15 441,418 20.753 54.659 0 D 0 516,830 2005 O!M>l/2005 441.418 20,753 54.6511 D 0 4.276 521,106 920.000 03,l01/200II 441.418 20.753 54,659 0 0 D 516,830 200& 09J01 /2006 441.418 20.753 54,659 0 0 4.276 521.1115 820.000 03,l01IZJJtr1 441.418 20.753 54,659 0 0 0 516.830 21XJTCJ9,G1flD/117 441.418 21>.753 54,659 0 0 4.276 521.106 920.000 03JDl(NOa 441.418 21>.753 54,659 0 0 0 51&.830 20llll 09J01 n,,oa 441,418 2D.75S 54,6159 0 0 4,278 521,1116 920,000 03,IDt /2009 441,418 21:J.753 54.1559 0 0 D 516,830 211011 09/01/2009 441,418 20.753 54..659 0 0 4,278 521,108 425.000 03/01/2010 0 0 0 0 0 a 0 1S.683,947 843,343 1,&IM,4211 318,104 D ZD.11112 •1 ,344 17.241,859 37.310 8,830.l)OO 8,159,653 (aj � ba:in:nnwe--baedanh ,My IIIMTipn,parlyla--...Cpift'Wrt,._anly)_ 'focal o.nc,-ntT- Cll) Dalinqlwlt-pad-• of .uly 1894......,_l ltia--.10.lhe balanceal..,.._ _ --�-� 1988 (c) "-Columbia Pate Propa,tiea cklM ncrt pnpay •'490.000• lpecial �on ._pandng ramp lclcallNI 111401h andc.nnl.. Paymle tai a,ldnDrmal prir,,:ipalend .-on lhla spedal--• lrduded in ... cat,low. Payeiallllll kicludN "p,..,aid spadAI _____.ol S:SO.OOOshown an 91'1/94. and $4.2711 In...,.. pa1c1ng..,..-. ...,.....19112 (d) �nollinclum,,_..,__,, . ...,;r,g&mHRAprqM!ty�-. 1188 lei Begiming balanca a of 7/1/94 (b9fm-. .lily p,opaey tu�. PNpAIWd by: SPRINGr.B> lnccxpcmdad ( 14-..i-94) 11193 G.O. Tl Rlilnilng (15) 13.733 1911.733 9,663 189,663 5,150 2115,HiO es2JIIIO I A3 0 69.121 212.515 222.423 222.:SO. 728.38S OMtty AdrniR. Tollll r-&,,... (Ill) (17) 11.SOO 203.009 0 1,248.509 11.liOO 177.1153 0 1.321,453 11.500 149..S,5 0 1.292.815 11.500 119.813 D 1,098.313 11.500 93.578 D 1.1>27,078 11.500 67.590 D 956,090 11.500 32.3110 0 890.890 11.500 17.ll80 D 2211.380 11.500 11116.500 0 0 11..500 1181.500 D D 11.500 931.500 0 0 11.51111 931.SOO D 0 11,500 931.500 0 0 11..500 IICH,500 D 0 11.500 1131.500 0 0 11.500 436.500 D D 184.000 15,843,053 c:, ca 1.499 0 D 0 0 2 0 3 0 1.398 1.439 1.40S ,,..,.... CUmlMliwa � Cah TI (Olicl1) a..n:.(•) v- (IS, (19) (20} 1.015.038 111113 (165.BN) 849.035 t!IN l2N.578t 562.457 1995 (2211.3QS) 333.154 1818 (5,298) '&ZIJ/St 1997 12.tMe 340.503 1988 109.&21 450.124 111911 210.ozt 660.146 2000 11119,041 1.548.IIJ7 2001 141.435 1,680.622 2002 106.435 1,797,D!ill 2003 106,435 1.9113.4911 2004 106.435 2JI09.821 21105 106,435 2.116,363 200l5 106.435 2.222.791 'ZOa7 1015,435 2.329,234 200& 84,608 2.413,840 2009 1,3118.8(17 H2 I Tata! I :1 1,439! 11111,121 1 2t2.518 I 222.427 56& 224.2158 5118 7211,77:S .zo&~ ~.uopx*t~ ou'u'yot* t : :l.U~OCl. y ........... : Ali NOI.T.O~ ~ :tu~_ :xL'r... ~~ oq~ .zo~ ~u'noq oq~ qul:lq~u .p o:tue, xo o:t ,xoztwaw( x.l.lO eq',t ~ Xcto,xoq' Xrlouno::) ,/t14::) eq,.T, · :moJ:o,xc~ ~.vmnCtOl'~AolZ :~q'snoH puu :tumudOleAepe~[ P°°qaoqq'~PN Pl~ eq2,. ,toZ ,,u'ul~ Oup:,umzXg 3uuum,mui 'NNI~ '$,U"IODH ¥18~fr103 QOOHItOBHODN $,Q13L~I.'I3H$ XlIV4 ~ i:i'!ii i iii .,...i mi, 'og ilunp 'HHIfl 'SJ.HOI.tH O00Ht:IOSHOI:]N paseq:)~nd, so~l~odo~d ~ qonel$ PUela1 mojt paseqojnd SOl~JOdOjd~~] CITY OF COLUMBIA HEIGHTS 590 40th Avenue N. E. Columbia Heights, MN 55421-3878 (612) 782-2800 Mayor Joseph Sturdevant CoUncilmembers Donald G. Jolly Bruce O. Nawrocki Gary L. Peterson Robert W. Ruettimann City Mnnager Patrick Henries June 30, 1994 Gary Fields, Vice President Sprinpted, Inc. 85 East 7th Place St. hul, MN 55101 Dear Gary: Enclosed please find information on the Sheffield TIN Project and the combined TIN District cashflow status. I have enclosed the 1993 Assessor's value for the Sheffield neighborhood, and also attached a map that lays out the 1994 values for the same parcels. As I indicated, the twenty parcels on Block 1 (4600 block between Pierce and Fillmore Streets) will be taken down to land value or alternatively five of the parcels will be at land value and the other fifteen parcels will become tax exempt. The other assumption is that between sixteen and twenty new homes will be constructed over a three year period, beginning in July, 1995. The homes will conservatively be valued at $100,000, including $20,000 for land value. I expect that the district could generate approximate $20,000 of new TIN and $5,000 of appreciated TIN. I assume the district would expire in the year 2009, as it would be part of the C.B.D.- TIN district. I have also included information concerning the cash flows on the city's combined tax increment districts. As we discussed, the city loaned approximately $1.2 million dollars to those districts in order to offset the problems associated with the Columbia Heights Business Center tax delinquency. Publicorp's calculations show that the $1.2 million dollars would be available in future years, even if no back or future taxes were collected from the Columbia Heights Business Center. Please note that the City is also expecting a prepayment of $490,000 special assessment on the Columbia Park Clinic. Publicorp only assumed use of two years special assessment payments in our formula, thus, freeing up about $300,000 of the prepayment. I would request Sprinpted's opinion if it would be financially prudent to develop a community redevelopment revolving fund to capture surplus TIN monies in the future, or alternatively to use any excess TIN's in the Sheffield neighborhood. Hopefully, your analysis of both the Sheffield TIN project and status of the cash flows in the combined TIN districts could be made available by July 13, 1994. Thank you. Sincerely, City Manager Enclosures 94/68 'SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER THE CITY OF COLUMBIA HEIOHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY' IN EMPLOYMENT OR THE PROVISION OF SERVICES 225 3ee2 SP~N~ST£D ~NC. City of Oolumbla I-I~lghm, Mlnrm~ot~ TIF AnMyds - ~heftleld Neighborhood 8oenario A Redev/Ioprnent or Houedng TIF C)lltrtot EatM)lished 9/1/04 Conltruotlon of 18 New 81ngla-Femlly Homel (7/1/96-7/1196) OrlglnaJ Net Tim ClplOIty of plro~lt Equed To Value of I.end Only (Subjeot to County Approvid/Spiolal Leglildlon) Pemel Mlrket Net T~ T~s: · M Ho~. la Cu~t C~ptumd T~ ~n~ Adm. ~1 Pr~d Net T~' Odginll Net T~ ~.o~ Gro.. T~ R~e MtT~ Lgl (d) Yelr ~Ky (b) ~C G~ ~e (o) Im~N ~ 10.~ Ino~ L~ (~) (2) (s) (4) (6) (6) ~) (a) ~ 3,~ ~,~ o ~so.o~ o o o o 1~ s,~ ~,6~ o 1~o.o~ o o o o p~o o o o lOO.~ o o o 4~4 (i) ~o~on~ hwo~ed cMo~n ~i um 1~ on tho ~ 872,~ ~ ~V and 2.~ Prepnmd by~ 8PRINGSTED Incorporated ( 15-Jul-B4 ) F:\USERS~IAflI~TIF~OOLHGTSl\SCENA. WK1 CITY COUNCILLKTTn Heet~ng of= 3uly LO, 1994 AGENDA SECTION 8 RESOLUTIONS/SHEFFI~-LD ORIGINATING DEPARTHENT ~ ~I~ ~AG~R' S NO~ CI~ ~AG~' S ~P~OV~ I~H~ S~~ PROPER~ P~SKS BY~ PA~I~ ~TG~S BY~ NO~ 2 C. 1~ DA~z 7-15-9~ DATE~ Resolution 94-43 authorizes the.purchase of two of the four remaining duplex build~ns8 within the Sheffield block. The proposed resolution calls for the purchase of property at 4601/03 Fillmore St. owned by Donald Drabant ~n the amount of $69,900 and purchase of property at 4619/21 Fillmore St. owned by Gary Knutson ~n the amount of $69,000. ! have prepared a comparison of appraisal values, status of negotiations, and possible condemnation costs. Additionally, please f~nd ~nformation on the cost of tenant relocation associated with three of the four rema~n~n$ parcels. The Drabant property is currently vacant, and accordingly, the City is not compelled to pay relocation costs. ' At this point, ye are still hav~ng difficulty arriving at final prices on property at 4624/26 Pierce St. and 4648/50 Pierce St. As an alternate or additional motion, City staff is recommending that the City Council direct the City Hanager to prepare the necessary documents to call for the condemnation of the property. Hopefully over the next thirty days, City staff can either arrive at a negotiated purchase price for the property or alternatively, present the condemnation documents to the City Council for approval. RECOHHENDED HOTIONz Hove to waive the read,ns of the resolution, there be[nS ample copies avaLlable to the public. RECOHHENDED HOTIONz Hove to adopt Resolution 94-43, Authorizing the Purchase of Property Located ~n the Sheffield Neighborhood (4601 Plllmore Street and 4619 Fillmore Street). ALTERNATE HOTION8 Hove to Direct City hnager to Prepare Documents Call~ng for the CondeBnation of Private Property Located at 4624 Pierce St. and 4648 Pierce St. and Further Present laid Documents to the City Council for Approval Prior to Proceed~s with the Condemnation Section. COUNCIL ACTIONs RESOLUTION 94- /~3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, AUTHORIZING THE PURCHASE OF 4601 FILLMORE ST. AND 4619 FILLMORE ST. LOCATED IN THE SHEFFIELD NEIGHBORHOOD WHEREAS, the City Council of the City of Columbia Heights (the 'City") and the Housing and Redevelopment Authority in and for the City of Columbia Heights (the "Authority") have been working jointly to prepare a Redevelopment Plan for the Sheffield Neighborhood entiti~d "The Sheffield Neighborhood Revitalization Program (the 'Redevelopment Plan'); and WHEREAS, the City and the Authority have found within the Sheffield Neighborhood there exists conditions of deterioration, substandard residential structures, residential units in need of repairs which are in violation of the City Housing Code and City Ordinances or there exists a need for intervention by the City to prevent further deterioration of the area, and WHEREAS, the City has an option to acquire two such non-owner occupied duplexes pursuant to that certain Purchase Agreement by and between the City of Columbia Heights and Gary and Carolyn Knutson (the "Sellers"); and certain Purchase Agreement by and between the City of Columbia Heights and Donald L. and Margie E. Drabant (the 'Sellers"); and the Purchase Agreements were signed by the Seller(s) and are provided herewith; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights that: The City Council hereby approves the terms of the Purchase Agreement between the City and Donald L. and Margie E. Drabant and authorizes the Mayor and the City Manager to sign it on behalf of the City at a purchase price of $69,900. The City Council hereby approves the terms of the Purchase Agreement between the City and Gary and Carolyn Knutson and authorizes the Mayor and the City Manager to sign it on behalf of the City at a purchase price of $69,000. The City Council hereby authorizes the City Manager to handle all the requirements and conditions in order for the City to complete the transaction contemplated in the Purchase Agreements. The City Council approves an interim source of funding from Capital Improvement Fund 410 in the amount of $138,900 plus $4,000 so the City may acquire the real property a~ provided in the Purchase Agreements. The City Manager is authorized to work jointly with the Authority to identify a permanent source of project financing. The interim sources of financing of Capital Improvement Fund 410 shall be repaid from sources of permanent financing as set forth in Resolution 94- (Approving the Development Project Budget for 4600 block Between Pierce Street and Fillmore Street), Passed this day of ,1994. Offered by: Seconded by: Roll Call: Date of Passage: Joseph Sturdevant, Jr., Mayor Jo-Anne Student, Council Secretary PURCHASE AG~ ~.~.~ I~CBIVED OF the City of Columbia Heights (hereinafter referred to as the 'BUYRE~ the sum of ..... DOLLAF~ Cash to be held in the ..mm. acco,mt of , as cmmst money and in part payment for the purchase of property listed on the attached Exhibit A, sium~ in the Cky of Columbia Heights, County of Anoha, State of l~_mnemta, all "SELLEP~9 have this day sold to the BUYEI~ for the sum of "'' r- ..,~,, - - d OO/lOO~ doll,:, ($ ~), wt~ich ~ be pa:),ebl¢ ~ closing. 1. Offer/Aeceutanc~: Buyer off~ ~ p~~ ~ S~LER ~ees ~ ~ ~ pro~ Sou~h S.~(60) fee~ o~ Nor~ ~e H~ed ~ ~en~(120) ~ee~ o~ '~ot Thirteen(13) and ~e south s~xty '(60)' ~eet 6~ North one H~ed ~w~y~!20) feet of wes~ ~en~7, Five (2~) ,~ee~ of ~ Co~y, Mx~eso~a. (P~cel e~5-30-24'-34-'0055, 4619;21 2. Allocation o~ Purchase Price. The purchase p~ice for said properties shall be allocated u se~ forth in Exhibit A, am~ched hereto and incorporated herein by reference. 3. ~ The closing shall he conducted at the of~ces of Land Title, Inc., 8 Pine Tree Drive, Arden Hills, MN ~$112. The closing shall be conducted wjt]~,~ ~ clays of execution of ~ agreement. 4. Taxes and Sueci~l Assessments. I~.eal es~e rexes due anci payable in and for the year of closing shall be prorated between SELLER and B~ on a calendar year basis to the actual date of closing, unless otherwise provided in this Agreement. On Date of Closing, SELLEI~ shall make full payment of all outstanding balances (inclmtlug immllments due in funn~ years) for levied special assessments, including any imudhnenu of special assessments certified for payment with the real estate tax,-~ due and payable in the year of closing. SELLEP~ shah pay on Date of Closing all other special assessments levied u of the date of th~ agreement. SELLEI~. shall provide for payment of special L~ments pending as of the date of this agreement for improvements that have been ordered by the City Council or other governmental messing authorities. (SELLEi~.'$ provision for payment -,~-~! be by payment into escrow of 1 1/2 times the estimated mnount of the As of the date of this Agreement, SELLEI~. repremmu that SELLEI~. has not received a Notice of Hearing of a new public improvemcn~ project from any governmental assessing authority, the costs of which project may be assessed against the Property. If a special assesmnent becomes pending after the date of this Agreement and before the Date of Closing, BUY~ may, at BUYEI~'S option: & Assume payment of the penc~g special assessment without adjustment to the pur~ase agreement price of the Property; or, b. Require SELLER to pay thc pending special assessment (or escrow for payment of same as provided above) and BUYER shall pay a commensurate increase in the purchase price of the Property, which increase shall be the same as the estimated amount of the assessment; or, c. Declare tb~s .4~reement null and void by notice to SELLER, and earnest money SELLER. shall pay on Date of Closing any deferred real estate taxes or special assessments payment of which is required as a result of the closing of this sale. 3. Delivery of Deetl. Subject to performance by the BUYER, SELLER agrees to execute and deliver a Warranty Deed at closing conveying marketable title to said premises, subjec~ only to the followin~ excepgons: a. Buff-ding and zoning laws, ordinances, State and Federal regulations; Remrictions relaling to use or improvemen~ of premises without effective forfeiture provisions; c. Reservation of any minerals or mineral lights to the State of 1Vrlnnesota. d. Uiiliry and drainage easements which do not interfere with present improvements; 6. Examination of Title, Wlthi,~ a reasonable time after acceptance of this Agreement SELLER shah ~ BUYER with an Abstract of Title or a Registered Property Absu-act, at SELLEI~'s sole expense, cergfied to date including proper searches coving banlcmptc~ and State and Federal judgments, Hens, and levied and pending special assessmems. BUY"r~ shall have ten (10) business days after receipt of the Abstract of Title or Registered Property Abstract either to have BUYEr's attorney examine the title and provide SELLEI~ with written objections or, at BUYER's own expense, to make an application for a Title Insurance Policy and notify SELLER. of the application. BUYER shall have ten (10) business days after receipt of the Commiunent for title lnma-ance to provide SELLER with a copy of the Commiunent and written objections. BUYEIt. shall be'deemed to have waived any title objections not made witsl- the applicable ten (10) day period for above, except that this shall not operate as a waiver of SELLER's covenant to deliver a mtvmry Warranty Deed. 7. Title Corrections and Remedies..SELLER shall have 120 days from receipt of BUYER's written tide objections to make tide marketable. Upon receipt of BUYER's title objections, ~ shall, within 10 businoss days, notify B~ of SELLP.,R.'s intention to 'make title mmg, etable within the 120 clay period. Liens or encumbrances for Hqtddated mounts which can be released by payment or escrow from proceeds of closing shell not delay the closing. Cure of the defects by SELLER shall be reasonable, diligent, and prompt. Pending correction of title, aH payments required herein and the closing shell be pos~oned. SELLER shah be liable for any end aH expenses related to the correction of title, including, but not by way of limitation,' Page 2 costs in bringing an action in Proceeding Subsequent, court costs, attomeys fees, and recording a. If notice is given and SELLER makes title marketable, then upon presentation to BUYER of documentation establishing that title has been made markeable, and if not objected to in th~ san~ time and manner as the original title objections, the closing shall take place within em business dayS or on the scheduled closing date, whichever is lat~. b. If notice is given end SELLER proceeds in good faith to make title markc'able but the 120 da), period expires without title being made ~le, eam~ money shall b~ refunded to BUYER. c. If SELLER does not give notice of intention to mak~ title mA,'kemble, or if notice is given but the 120 day period cxpir~ without title bring made marketable due to SELLER's faihre to proceed in good faith, BUYER may seek, as permitted by law, any one or more of the following: i. Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (1) S~k damages, costs, and r~asonable attorney's fees from SELLER as penniued by law (d-m*ges under this subparagraph (I) shall be limited to the cost of curing objections to title, and con.sequential damages are excluded); or, (2) Undertake proceedings to conect the objection to title; ii. Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all earnest money paid hereunder iii. Damages from SELLER including cost and reasonable attorney's fees, as p -mi by iv. Sp~ific p~formszce wifl~in ~x mo~ths ~ ~h right of ~tion ~ d. If title is mark~zble, o~ is m~le m~rke~tble as p~vid~d here~x, ~d defaults in any of the agreements herein, BUYER may, as permit~d by law:. i. Seek damages from SELLER including costs and reasonable attorney's fees; ii. Seek specific performance within six months after such right of action arises. 1T IS ACKNOWLEDGED THAT TIME IS OF THE ESSENCE HEREOF. 8. SELLER's Covenants. a. S~I, LBR covenants that all buildings, if any, ~re entirely within th~ bounda~ ~ of the property and a~'ees to remov~ all pel'sonsl propen~ not included herein and all debris from the premises prior to possession date. disclosed to BLrYI/R.....--~ :.%: ...-- SELLER cov~_~n~ tim ~II ex/san__~ leases, wtmher oral or written, have been ..... .~--11 ..;.~' Page 3 d. SELLER agrees to refrain from encumberi~ the subject properties with leases of any length, either by way of new lesses or the renewal or ex~nsion of e~d. sti~ leases, from the date hereof until closing. e. SELLER agrees to refrain for collecfin~ dan~e deposits coverin~ the subject properties and filnher warrants that all clama~e deposits have been refund~ to tenants. SELLER agrees to hold harmless and indemnify the BUYER from any cl~ for a.msse deposits arising out of the subject properties. f. SELLER acknowledges ~ the warranties and representations made herein by SELLER are a malerial inducement to BUYER's entering into this Purchase Agreement and that BUYER is entitled to rely upon these warranties and representations despilz independent investigation undertaken by BUYER. Should SELLER. have misrepresented an), material fac, or actively failed to disclose a ma~m'ial fact disclosed under this Section 7, then SELLER agrees to pay any and all costs of relocation arising out of the sale of the subject properties. g. SELLER acknowledges tha~ BUYER and SELLER will be employing the services of a title insurance/closing company to facilits~e ~ closing of this u-ansaction. SELLER. agrees to promptly fumi-~h said dosing company with all documents requested and further agrees that if said closing company should, by error, collect an amount of money insufficient to mee~ payoff obligations to existing creditors, then SELLER will refund, within five (5) days of receiving oral or wrimm notice, whatever amount necessary to sa~f'y the om.~auding obligalions. 9. ~. SELLER further agrees to deliver possession (by mmin~ over all original keys to the subject properties) on ~ of closing provided g~ all conditions of gais agreement have been complied with. 10. ~ In the event of any damage prior to closing to the subject propenies and improvements thereon or the personal property due to fire or other casualty, SELLER shall pmml~y notify BIYYER and BUYER may, within I0 days after nolifica~on, elect to B~ end SELLF..R shall be ~e~,ed fi'om any thrther liability her,..-undor and this Purchase Agrmmmnt shall be null and void. If BUYER does not elect to temgnate this Purchase ~ this Purchase Agreement shall remain in full force and effect and at closing SELLER shall sssiSn to BUYER all SELLER's fight, title and interest in and to any insurance proceeds paid or payable for such damage, but the amount of assi~ment due from SELLER shall be llmlted to the purchase price as set forth herein. Page 4 11. "AS IS" Condition. BUYER, through its ~euts and employees, has ~ the properti es and BUYER is aware that the properties aretvacant and unoccupied, requtre repair and are subject to work orders issued by BUYER. BUYER agrees to purchase the property in 'AS IS" cenditio,,- 12. Sales Commissions. SELLER agrees to hold BUYER harml~ from any claim for sales commissions m/sing out of tiffs wan.section to the exumt that such claims arise out of a/~,ements claimed to have enm-ed into with SBLLEP,. 13,. ~ It is understood that BUYER has until to accept the terms and conditions of this purchase agreement. SELLER acknowledges that this Purchase Agreetntnt can only be accepted by BUY~ through proper action taken by the City Council for the City of Columbia Heights in strict accordance with the provisions of the Charter for said City, any relevant city ordinances, and any relevant statutes of the State of Minnesota. Therefore, this purchase agreement it txpre~ly conditioned upon and shall not become binding, and neither parly shall acquire any rights hereunder until such tone as proper approval has been obtained from the City. 14. lqon-W~jver of Claims. This agreement shall not be construed as a waiver of claims (if any) that either party has or may have against the other. 1 ~. Indemnification. Except as specifically provided other~rise in this Purchase Agreement, SELLER. shall indemnify and hold BUYER. harmless from and a~sln_~ any and all loss, cost, damages, injury or expense arising out of or in any way related to clain~ for injury to or death of persons, damage to property or conwact liabilities associated with the ownership or operation of the property or the business conducted thereon, arising out of events or ~ctions before the 'date of closing. Except as specifically provided otherwise in this Purchase Agreement, BUYER. shall indemnify and hold SELLER harmless from and against any and all loss, cost, damages, injury or expenses arising out of or in any way related to claims for injury to or death or persons, ,4,,v,.ae to property, or contract liabilities associated with the ownership or operation of the propen~ or the business conducted thereon, arising out or events or trn,,~tions after the date of closing. 16. ~qrvival of Warranties. AH covenants, representations and warranties herein made shall survive the closing hereunder, and the truth and accuracy of the same ,as of the closing date shah constim~ conditions of the obligations of the perry em/tied to rely on the same, to close hereunder and to pay thc purchase price herein provided for, ~uy of which conditions, however, may be waived by thc party entitled to the benefit thereof~ in whole or in part at such party's option. 17. ~.Ei.qll~lt]i~. The invalidity or unenforceability of any provision in this Agreement shall not in any way affect the validity or enforceability of any other provision and this Agreement Page 5 ._.d,,, be ~n.sm~ in all respe~ as if sieh invalid or unenforceable provis/on had never been in 18. Minnesota Law to Govern. This Asrc'cment shall be interpreted and enforced in accordan~ with th~ Lews of the State of r,/innesote. S~LL~U DaSd: May 26, ]994 G~er)-6d._u~.d*subM*=-- ~ Caro _ - - ( ] BUYE~ CITY OF COLUMBIA HEIGHTS BY: BY: $oseph Smrdevant ITS: ~avor Patrick Hc~tges l'fS: Cite Manager Page 6 Plrcel A: Psrcel B: Psrcel C: Parcel D: Parcel #25-30-24-34-0055/4619-21 Fill.more .Sf.z'eeI: l~, Columbia P~ge 7 PURCHASE ~~..f/sum of ~~~~~_.~DOLLARS. Cash to be h~Id m ~ m~ sccounl of ,, ..... , ~ ~~ ~ m~~t for ~p~ of~ ~ ~ ~ ~it ~ ~~ ~ ~e CiU of Colmb~ H~ Co~ of ~ S~ of ~~ ~ Of~~~ ~nald L.. & Margte. E.. Drant . . ~~~~ ~d 00/100 dol~a~s($ 69,900.00 ), ~ch ~ ~ ~[~ ~ clo~s. 1. Ofl'er/AcceDtanc~: lefpllly described as: Buyer off~-s to purchase and SELLER. a~-es to seil r~l property as set forth in Exhibit A, avached hereto and incoq~a~ed herein by reference. (240) Feet) ,~ West ~ent~ Five {25) Feet of Lot Fourteen (14) (except N0r~.~ ~ ~dred ~d Forty .(2~0)..Feet)?f .. Block'. ~e (1), . Sheffield'8 Su~ivi.~ionf ~oka Countyl M.i~eso~, S~Ject to alley ~as~ent 0ve~ Eg~}..~lve Feet. (P~cel %25-30-24-34-0055,. . ... 4601-03. . Fil~or~ ~.treet, N.E., COllie Hteghts, ~) ~o~flon of Pu~h~e P~ ~e p~ ~ce for ~d p~~ ~ ~ ~lo~d 3. ~ The closins shall be conducted at the offices of Land Title, Inc., 8 Pine Tree Drive, Arden l-lilh, ~ $$112. The closin$ shall be conducted within '_~/!et~ of~ · x~ion of ~ agrecmen~ ~."~. .y4. Taxes and S~lsl Assessments. ~,;al --"*' ~lein-and-forthe year-. On Da~ of Closin~'~LT,~- shall make full paFment of all otmumdins balances , .(' . .mc!~'' installmen~ due in funee years) for k, vi~d ~ ~~as, ~cludi~ any ~ents of special ss~ssme~,,~ed for payment with the .real estate taxes due and ..parle in t~ ~esr of ~losin~. '~ shll pa~ho~[a_~_ of ClosinS ~I1 oe~r ~ · =m = or p o id, for palm,= of special as~ssmenm pendin~ as of the daIe of ~ agrecm~ for improvemenis that have been ~ b~ th~ Cit~ Council'or o~r SoVemm~al assessins aue~ities, i~',LL' =E.v.'$ ~.-vision assmmen~s). As of the date of this Agreement, SELLER represents th.t SF.,LLER has not received a Notice of Hearing of a new public improvement project from any governmental assessin~ authority, the costs of which project may be assessed against the Property. If a special assessment becomes pen_ding after the date of this Agreement and before the Date of Closing, BUYER may, at BUYER'S option: a. A.s,mme payment, of the pending special assessment without adjustment to the purchase ag~ement price of the Property; or, *BUYER SHALL PAY SECOND ONE HALF OF REAL ESTATE TAXES PAYABLE IN CALENDAR YEAR 1994. b. R~qui~ SELLER m pay the ~g sp~:ial as.~ssm~t (or ~s:row for paym~t of sam~ u provkk, d above) and BUY~ _,~.n pay a cmnm~ ~ ia th~ pur~ta.~ pri~ of tbe Prop~y, which ~ shall be the same as th~ ~ima~d amount of th~ ~ssment; or, c. Declare this Agreement null and void by notice to SELLF.~ and earnest money shall be ~efunded to BUYER. SELLER shall pay on Date of Closing any deferred real estate taxes or special assessments payment of which is required as a resul~ of the closing of this sale. 5. Delivery of Deed. Subject to performance by the B~ SELLF~ .agrees to execute and deliver a Warranty Deed at closing conveying mm-kemble title to said prenuses, subject only to the following exceptions: a. Buildin$ and zoning laws, ordinanc~ State and Federal regulations; Restrictions relating to use or improvement of premises without effective forfeiture provisions; c. Reservation of any m;-erals or ml,er-al rights to Rte State of Minnesota. d. Utility and drainage e~m~ts which do not interfere with present improvements; 6. Examination of Title. Within a reasonable time after acceptance of this Agreement SELLER shall furnish BUYER with an Abswact of Title or a Registered Property Abstract, at SELLER's sob expense, certified to date including proper searches coveri~ bankruptcies end SI32 and Federal judgments, liens, and l~ied and ~_i..- special as~samen~s. BUYER shall ha~ 2n (10) business days ~ r~'ilx of ~he Absu~ of TMe or Resis2red Propa~ Absu~ ~i~I~r to have BUYER's auomey ~ the tide and provide SELLER with wriiIen objections or, at BUYER's own ~xpm~, to malta an application for a Title Immm~ Policy and no~y SELLER of lt~ spplicalion. BUYI~ shall have 2n (10) business clays at~ r~'ilX of the Commi~ for title Instnnce to provide SELLER with a copy of th~ Commitment alld wri~ objections. BUYER shall be deemed to have waived any title objections not made within the q~plicable ten (10) day period for ebove, except that this sball not operate as a .waiver of ~'s covenaut to deliver a mmmry Wmznt~ Deed. 7, Title ,C. orre~ons ,an,d Remedies, ,SELLER shall have 120 days from receipt of BUY]~'s written title objections to make utle marketable. Upon r~:~ipt of B~'s title objections, SELLER shall, within 10 business days, notify BUYER of SELLER's intention to make title mar~le within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by SELLER. shall be reasonable, diligent, end prompt. Pending correction of title, ail payments required herein and the closing shall be postponed. SELLER shall be liable for any and all expenses related to the correction of tide, including, but not by way of limitation, Page 2 cos,~ in brin~ins au action ~n ~ Subscquau~, court corn, a~omeys fees, fee~ ~- If notice.is ~iven aud SBLLBR make~ title m-,ketable, then upon presentation to BU~BR of documen~on estabN--h;,~$ that fide has been made marketable, and if not objected in ~he nme time ami mauner u the ori~al fide obj~o~ ~e cl~g ~ ~ p~e ~;- ~ ~ ~ ~ on ~e ~h~ cl~ ~, ~ch~ ~ ~. b. ~ce ~ Si~ ~d S~L~ pr~ ~ ~ ~ ~ ~ fi~e ~~le b~ ~e 120 ~y ~ ~s ~om fi~e ~S m~de ~e~l~ ~ mo~ ~ ~ ~~ B~ c. ~ SBLLBR do~ not ~ ~ce of ~t~fion ~ ~e fide ~~le, or Mnofice ~ b~ ~e 120 ~y ~ ~s ~o~ fide ~ ~e ~kemble d~ ~ S~LBR's ~ ~ ~ ~ g~d ~ B~K ~y ~ ~ ~~d by ~w, ~y one or mo~ of ~ foBo~g: i. ~oc~ to clo~g ~ouI ~v~ or m~g~ ~ ~e deed of ~e objecfiom fide ~d ~o~ ~v~ of ~y ~es, ~ ~y: (1) S~ ~~ co~, ~d ~ble a~mey's f~s ~m SE~E~ ~ ~~ by ~w (~~ ~ ~ mbp~ph (1) ~ ~ llmi~ m ~e co~ of c~ obj~om ~ fi~e, ~d co~nfi~ ~~ ~e excl~d); or, (2) U~e ~~Ss ~ ~ct ~ obj~on ~ fide; · ~~on of ~ ~c~ A~ent by no~ ~ ~d~ ~e~ ~ ~ch ~ ~ ~ A~t ~ ~ n~l ~ void ~d ~ ~ money p~d ~d~ · . D~ ~m S~LBR ~clu~ co~ ~d ~~le ~~'s f~ ~ · .~ rifle ~ ~~le, or ~ ~ ~le ~ ~~ ~ ~ S~ ~B ~ ~Y of ~ ~~ ~ B~ ~y, ~ ~~ by ~ S~k ~ ~m S~LE~ ~l~ ~ ~ ~~le ~'s f~ S~ ~c ~~ce ~ ~ mon~ ~ ~ fi~ of ~ 1T IS ACKNOWLEDGED THAT TIME IS OF THE ESSENCE I:rF~,EOF. 8. SEI.I.~R's Covenant~, ~ SBLL~ covena~ ~ all buildingS, if any, are emirely wid~in the boundary lines of ~ha pmper~ and agrees ~o remove all personal propm~ not included herein and all debr~ from the premises prior ~o possession da~e. b. SELLER covemm~s g~ all e0ds~g le~ses, ~ oral or wri~n, have been disclosed ~o BUYER and ~ c6pies of all written leases have been provided ~o BUYER for BUYER's review. Pnge 3 c. SELLER covenants that ail existing leases, whether they be oral or written, have been terminated or, if not termi--t,,d, will expire by their ~-, as of the date of execut/on of this ~ A/remnen~. SELLER further covenants that as of the date of closing no persons, whether tenants or otherwise, will occupy the subject pwpen/es. d. SELLER ~ to retain from en~,,,~berini the subject properties with leases of any length, either by way of new leases or the renewal or ~on of existing leases, from the date hereof unRl closing. e. SELLER agrees to refrain for collecting ~,,,'r,,,~c deposits covering, the subject properlies and further warrants that all d-range deposits have been refunded to tenants. SELLER agrees to hold harmless and indemnify the BUYER from any claims for damage deposits arising out of the subject properties. f. SELLER acknowledges that the warranties and representations made herein by · SELLER are a material inducement to BUYER's entering into this Purchase Agreement and that BUYER is entitled to rely upon these warranties and representations despite independent investigation undertaken by BI. rYER. Should SELLER have misrepre~-nted any material fact, or actively failed to disclose a material fact disclosed under ids Section 7, then SELLER agrees to pay any and all costs of relocation arising out of the sale of the subject propenie~ b'?.LLER acknowledges that BUYER and SELLER will be employing ti~ services title insm-an~closing ~mpany to facilitat~ the closing of this ttansa~on. SELLER a~es to prompdy furnish said closing company with all documents requested and further a~,ees thai if said closing company should, by error, collect an amoum of mou~ insufficieut to meet payoff' obligations to existing creditors, then SELLER will refund, within five (~ days of receivins oral or wriuen notice, whatever amount necessary to satiny tl~ outstanding obligations. to the suigect propemes) on date of closing provided that all conditions of this agreement I0. a~]l:{.]~{{~. In the event of any damage prior to closing to the subject properties and improvements tire. on or the personal proper~ due to fire or other casualty, SELLER shall promptly notif'y BUYER and BUYHR may, within 10 days after notification, elect to BUYI~ ~d SELLER ~ bc rcl~ fl~m any 6trther ti~ty hereunde~ nnd this A~eement shall be null and void. If BUYER does not elect to terminate this Purchase A~-ment, this Purchase A~-ement shall remain in full force and effect and at closing SELLER shall assign to BUYER all SELLER's right, title and interest in and to any insurance proceeds pa/d or payable for such damage, but the amount of assignment due from SELLER shall be llmi~ed to the purchase price as set forth herein. Page 4 11. "AS IS" CondRtgn. BUYER, through its agents and employees, has inspecaxl thc properties and BLrYER is aware that the properties are vacant and unoccupied, require repair and are subject to work orders issued by BUYER. BUYER agrees to purcbam the property in 'AS I5' ~ndkion. 12. Sales Commissigns. SELLER agrees to hold BUYER harmless from any ¢!,,;m for sales commissions arising out of this transaction to the e~aent that such claims arise out of agreements claimed to have entered into with SF. LLER. 13. AguHllllll~. his understood that BLrYER has until .~,,~,, 7_ ~QQ~ to accept the terms and conditions of this purchase agreement. S~LI.E~ actn~wl~dges that this Purchase' Agreement can only be accepted by BUYER through proper action taien by :he City Council for the City of Columbia HeighO in strict accordance mith the provisions of the Charter for said City, any relevant city ordinances, and any relevant statutes of the State of Minnesota. Therefore, this purchase agreement is ~res$ty conditioned upon and shall not become binding, and neither party shall acquire any rights hereunder until such time aa proper tt~proval ha$ been o&tained from the City. 14. Non-Waiver of Claims. This agreement shall not be consuued as a waiver of claims (if any) that either parry has or may have again~ the other. 1:5. Iudemnificstlon. Except as specifically provided otherwise in this Purchase Agreement, SELLER. shall indemnify and hold BUYER harmless ~m and agai~ any and all loss, cost, demaS~ injur~ or exlnn~ arising out of or in any way r~lated to claims for injury to or ~ of persons, damage to property or contract liabilities associat~ with th~ ownership or operation of the propen~ or th~ business conducted thereo~ arising out of events or uan.sa~ons before the date of closing..Except as ~cally provided otherwise in this Purchase .4~'eeme~ BUYER shall ind~mif~ and hold SF..LLI~ harmless from end egainst any ~xi all losa, cos~ damages, injur~ or expens~ ~-ising ouI of or in my way reisled to claims for tnjur~ to or death or pe~ons, dense to property, or conuac~ lisbili~i~s ~ with ~ ownership or opera, on of the proper~ or the business conducted thereon, arising ou~ or events or transactions ~ thc da~e of 16. ~urvival of Warranties. All covenants, ~ept~sentsfiom and warranties herein made shall survive the closing hereunder, and the truth and accuracy of the same as of the closing data shall consituto condkions of the obli~ions of the party entitled m rely on the same, to close hereunder and to pay the purchase price herein provided for, any of which condilions, however, may be waived by the party entitled to the benefit thereof, in whole or in part at such party's option. 17. Severabilitv. The nvaUaity or unenforceability of any provision in this Agreement shall not in any way affect the validity or enforceability of any other provision and this Agreement Page 5 BUYE~ Dau~ , BY: Dau~ BY: CITY OF COLUMBIA HEIO~ $o~ph Stwdevant ITS: Mayor PauickH~ ITS: City lVisnaaer 19. Personal Property. All personal property, includin$ appliances, will remain with the property, with the exception of the stove in the lower level, which Seller shall remove from the premises prior to closint. Par~ A: Paroel B: Parcel C: Parcel D: Parcel %25-30-24-34-0055 4601-03 Fillmore Street NE, Columbia Heights, MN Page 7 CITY OF COLUMBIA REVISED TO: FROM: DATE: RE: MAYOR AND CITY COUNCIL PAT HENTGES, CITY MANAGER JULY 15, 1994 REVISED STATUS OF 4600 BLOCK PROPERTY ACQUISITIONS Attached please find a revised update on the negotiations for the properties located in the 4600 block of Fillmore/Pierce. Please note the comparison of appraisal amounts to the cost incurred if the properties are condemned by the City. In either case, tenant relocation costs must be paid. cb Attachment PROPERTY ORIGINAL OWNER REVIEW STATUS IF CONDEMNED LEGAL AND ADDRESS APPRAISAL APPRAISA.L APPRAISAL NEGOTIATIONS BY CITY EXPERT FEES TENANT RELOCATION COST (ANY P~JRCHASE~ Drabant $67,000 $74,000 Purchase agreed upon $65,000 to 4601/03 at $69,900 $67,000 Fillmore $5,000 to $7,500 Knutson $65,000 $73,000 Purchase agreed upon $63,000 to 4619/21 at $69,000 $65,000 Fillmore $5,000 to $7,500 *$4,500 to $5,500 Dalseth $70,000 Getting 2nd Rejected appraised $67,000 to 4624/26 Appraisal Value $70,000 Pierce Alsum $71,000 $83,000 $68,000 Owner Offered City $69,000 to 4648/50 $75,000 $71,000 Pierce $5,000 to $7,500 $5,000 to $7,500 *$8,000 t° $10,500 *$8,000 to $10,500 *Includes Relocation Consultant of $750.00 per unit 4-600 BLOCK PIERCE & FILLMORE STREETS. 47TH ~:~',," ~'-'1 4654 4648 4642' 4636 4630 461~4 4618 4610 4606 4600 AVENUE 4655 4643 4637 4631 46i~5 4619 4613 46O7 4601 46TH AVENUE I I I I'1 I I I CITY CONTROLLED PROPERTIES CITY OF COL~MBIA HEIGHTs Meeting of: July 18. 1994 AGENDA SECTION= -~-- Purchase of ORIGINATING DEPT., HRA CITY MANAGER Property on 4600 Block of Fillmore & APPROVAL Pierce St(Relocation of families) ITEM, BY,~~~ In coordination with the acquisition of the five remaining duplexes in the target bock (4600 block of Fillmore and Pierce), there are eight families that need to be relocated. Due to State and Federal requirements and lack of current City expertise in relocation of dlsplacees(and the benefits they are entitled to), it is best to have a professional relocation consultant assist the City with the relocation efforts. Proposals for providing relocation services have been received from three firms= Wilson Develol~nent Services, Chaska, MN Not to exceed cost of $6,000. 2e Conworth, Inc., Mpls., MN - $10,000 to $12,000 Not to exceed $12,000. Professional Development Services, Mpls., MN Not to exceed cost of $7,800 if no HUD Funds are used and $8,400 if HUD Funds are used. Attached are a copy of a memo to the City Manager, proposed contract with Wilson Development and copies of the Wilson, Conworth, and Professional Development Service proposals. RECOMMENDED MOTION= Move to approve authorizing the Mayor and City Manager to contract with Wilson Development Services to provide the necessary relocation services to the eight families being displaced by the Sheffield Neighborhood Redevelopment Project in the 4600 blocks of Fillmore and Pierce Streets at a cost not to exceed $6,000. cc, HRA Commissioners COUNCIL ACTION, DATE: JULY 6, 1994(CORRECTION OF MEMO OF JULY 1, L994) TO: FROM: PATRICK W. HENTGES, CITY MANAGER DON SCHNEIDER, COMMUNITY DEVELOPMENT DIRECTOR~~ (CORRECTED MEMO)PROPOSALS FOR PROVIDING RELOCATION SERVICES FOR RELOCATION OF FAMILIES FROM FOUR OCCUPIED DUPLEXES BEING ACQUIRED BY CITY IN TARGET BLOCK IN SHEFFIELD NEIGHBORHOOD As per your request on July 1, attached are the proposed contract(draft) and proposal from Wilson Development Services for providing relocation services for the~q~Q~ families that must be relocated from the four occupied duplexes in the target block in the Sheffield Neighborhood. In addition to the proposal from Wilson Development Services for a not to exceed amount of $6,000, proposals were received from Conworth, Inc for a not to exceed amount of $12,000 and from Professional Redevelopment Resources, Inc for $8.400(if HUD funds are involved) or $7.800(if no HUD funds are used). It is recommended that we have Wilson provide the services based on their low ProPosal of not exceedin~ $6.000 for Drovidin~ the services. Please call or see me if you have any questions. Encl Cgm RAC P0R RELOCATION CONSULTING SBRVICBS THIS AGREEMENT, entered into as of the day of June, 1994, by the ~he City of Columbia Heights (hereinafter called =he Client) and Daniel H. Wilson,-d.b.a. Wilson Development Services (hereinafter called the Consul=ant); PROJECT IDENTIFICATION= Sheffield Neighborhood Redevelopment PROJECT _ IDENTIFICATI .ON__]~ = None INTENT OF CONTRACT= This contract is entered into for the purpose of obtaining acquisition and relocation consultant services for the Project. A~PLICABL~ REGULATIONS: Ail work performed by the Consultant shall be in compliance with the uniform Relocation Assistance and Real Property Acqui- sition Policies Act of 1970, as amended by the Surface Trans- portation and UniformRelocation Assistance Act of 1987 and Minnesota S~atutes 117.52. scoPE OF S~RV~ES ~ROVIDBD BY CONSULTANT~ * 1. Meet with and inform proper%y owners and tenants (names and addresses to be provided by the Client) of project status, procedures to be followed, proposed time schedule and their rights and responsibilities. 2. Prepare all required relocation notices for signature by the Client representative. 3. Maintain a log of all property owner and tenant contacts with no=es relative to the discussion. 4. Maintain a file on each property owner and tenant, including required notices to be turned over to the Client at completion of purchase. 5. Maintain communications with Client, so they are kept in- formed as to status of each displaces. A written monthly status report will be submit=ed to the Client. 6. Determine comparable housing and make site referrals. 7. Prepare moving sp~cifications and secure competitive bids. $. Assist displaces zn preparation of all claims and provide proper documentation. Inspect replacement sites. Certify to Client the amount of benefits due so that pay- ment can be m~de. * For the relocation of eight (8) tenant families from four duplex units located at 4619-21 Fillmore Street N.E., 4631-33 Fillmore Street N.E., 4624-26 Pierce Street N.E. and 4048-50 Pierce Street N.E. as per attached proposal which is hereby incorporated into this agreement. /'~L/ CONTRACT FOR RELOCATION CONSULTING SERVICES Page 2 SERVICBS NOT TO BE PROVIDED BY TB~ CONSULT~ Court appearance in an eminent do~ain or unlawful detainer proceeding or assistance to the Client attorney An the preparation of such cases. In the event cour= appearances or assistance to the Client attorney are necessary, ~he Consultant is available to provide these services at the snared hourly charge rate. CO~ENSATION~ The Client agrees to pay the Consultant the following fees and expenses advanced as compensation for the services to be ren- dered under this contract~ 1. $65.00 per hour for consultant services. 2. $55.00 per hour for associate consultant services. 3. $21.00 per hour for secretarial services. 4. $.35 per mile for actual automobile miles driven. 5. $.10 each for photocopies. 6. $1.00 each for fax copies. 7. Actual costs of long distance phone calls. 8. Other expenses at actual cost. MAXIMUM NOT-TO-EXCEEDAMOUNT= $ 6. 000. O0 TERM OF CONTRACT; The term of the contract shall be concurrent with the work au- thorized and shall be initiated at the Client's direction. In no event shall the term of this contract exceed 12 months from the date of this contract unless mutually agreed to in a written amendment to this contract. Consultant shall submit monthly itemized billings for services to the Client. Paymen2 to the Consultant shall be made within 30 days of receipt of such billing upon approval by the Client. The Consultant shall undertake and complete all work in a timely manner so as not to impede the meeting of program dead- lines by the Client or the relocation process for the dis- places. GENERAL PROVISIONS= Consultant shall not assign or subcontract any of the work, services, or obligations contained in this agree- ment. Consultant shall keep accurate records of his work CON--CT FOR ~.A~O~ COIqSULTZN~ SERVICIS Page 3 and all records ~ books ~ docmments ~ and papa~s sh&ll be ~z~ persona. This contract ~y b~ ~a~nat~ by ~h~ .Client upon ~itten notice to th. Consultant at ~y ~e w~thout cause. The Consultant shall be en~itl~ to any oo~ensation based u~n hours provided prior ~o the date Of no~ification in the event of termination. Consultant shall not have any personaliinterest either di- rectly or indirectly in any of the proper=icl to be ag- quired and shall not benefit from the acquisition of such properties other than from the ~aymentS to be received under this contract. The Consultant shall comply with all applicable laws, or- dinances, and codes of the Federal, sta=e, and Local gov- ernments, and shall commit no trespass~on any public or priva=e property in performing any of ~he work embraced by this contract. SOCIAL SICURITY: MINNESOTA TAX I.D.: FEDERAL BMPLOYER I.D.: ACCEPTANCE OF CONTRACT Acceptance of ~he contract provisions shall be made by signa- ~ure of an authorized official(s) o~ the Client and the Consul- tan=. In Witness Whereof, contrac=. Client (City of Columbia Heights) and the Consult&hr have executed this This day of , 1991. COlt'ZR,~ ~O:R RELOCAT:rON CONSULTING S~RVICRS AUTHORIZED SI~HATURKS I CLIENT: City of Columbia Heights 590 40thAvenue N.E. Columbia Heights, MN 55421 Phone: 612-782-2855/782-2857 (FAX) JoSeph S~urdevant Mayor / - Patrick W. Hentges City Manager Dan Wilson, Wilson Development Services 51o Chestnut Street, ~200 Chaska, MN 55318 Phone: 612-448-4630/448-4676 (FAX) opm.ent rvices Wil elpin8 ci ies?n,, Businesses Grow June 20, 1994 Don Schneider ~xecutive Director Col--kia Heights HRA 590 40th Ave. N~ Columbia Heights, MN 55421-38878 Sheffield Neighborhood Development Project Relocation Program Dear Dost I am writing to submi~ a proposal in response to your request for proposals for relocation consultan% services as detailed below. Wilson Development Services is a real estate consulting business that specializes in assisting public and private entities wi%h their com- munity development and real estate development needs. Acquisition and relocation activities constitute a substantial portion of our work. Pro£ess/onal Dan Wilson - Principal Dan Wilson, the owner of ~he firm, has twenty-three years experience with acquisition and relocation activities under the Uniform Relo- cation Act. I have worked with =he UniformAct since its inception in 1970. My twenty-three years of experience provides me wi~h a perspec- tive and practical knowledge of the UniformAct. I believe that I have an understanding of the fundamental intent of the Act, as well as, the current interpretation of the regulations. Self,employed for thir%eenyears, I have represented numerous munici- palities and public agencies throughout the Stateof Minnesota for both residential and business displacements. I am the primary contact person for all clients and supervise the activities of associates. Z have served as ins%ructor for the Department of Housing and Urban Development and MN Dept. of Trade & Economic Development for Uniform Act training seminars. Prior to being self-employed, I worked for the Minneapolis, LeSueur, and Waconia Housing Authorities. Betty Grimm - Associate Betty Grimm had been in the real estate industry as a realtor for ten years prior to joining Wilson Development Services as a relocation consultant. She has worked successfully with the Uniform Act, both residential and commercial displacements, for the past six years. Prior to engaging in the real estate industry, Ms. Grimm worked for eight years in the delivery of services to ec.onomica.lly disadvantaged individuals providing her with valuable experiences zn working with ~l,3 r'i,~¢rrtut Street'. Suite 200, Chaska, Nth4 35318 . Office (612) 448-4630 Fax 448-4676 612 448 4676 ~ILSON DEVL ~VC 06~2~4 lz:~ PROPOSAL FOR RELOCATION 8~RVICE8 persons in emotionally charged and difficult situations with the Carver County Mental Health program. Betty Grimm and I work as a team on each displacement project. One of us is always the primary contact person, but we remain familiar with each other's files. The team approach pe~tts as to provide immediate response to displaces telephone calls when one of us is out of the office. It also permits us to shift workloads should a displaces have a preference to work with one of us. Our team approach also assures for uninterrupted service. Ac~uisition/Rslocation Approach It is important to understand our approach .to the relocation process. We view each displaces as a participant in the decision-making pro- cess. Very few people will, in their lifetime, be displaced by public action and, therefore, they are faced with making decisions in an un- familiar area. They can be vulnerable and frequently troubled. Most problems develop when displacees feel that they do no~ have a voice in the process and that they have no options or choices. We are success- ful because we are able to recognize the displacses perspective and respond to their needs. We start by building trust by allowing them to state their needs. We then provide reliable and timely information in an understanding and respectful manner. We clearly represent the displacing agency. This does not, however, mean we will use our expertise to take advantage of a displaces. Our role as acquisition/relocation consultants is to interpret the provi- sions of the Uniform Relocation Act and assure compliance by all par- ties. This allows us to be facilitators rather than adversaries. We believe all displacees should receive their full legal relocation ben- elite, while adhering to a 'least costly' approach for the dis-placing agency. We expect that our work will be audited for compliance and that we must account for every dollar expended. Previous Work Experience Wilson Development Service, previously named Wilson Management Serv- ice, has provided acquisition and relocation assistance since 1980. Prior to that, Dan Wilson provided acquisition and relocation services to the cities of Waconia, LeSueur and Minneapolis as a staff person dating back ko 1970. The following is a list of current and recent clients who have uti- lized our acquisition and relocation services: 612.: 44~ ~676 WILSON DEVL S'VC 06/20/94 12:16 PO2 PROPOSAL FOR ~F~~ON BFJ{.%~ICE8 Austin School District Moorhead $chool District Perlpectives ~ast Wayside House, Inc. National Handicap Housing Institute Inc. Scott County Highway Scott County HRA City of Backer City of Buffalo City of Champlin City of Chanhassen City of Chaska City of Grand Rapids City of Crystal CLIINT LIST City of HutchLnson -. City of LeSueur City of Little Canada City of New Ulm Ci=y of Osseo City of Plymouth City of Rogers City of Robbinsdale City of S&uk Rapids City of Savage City of Waconia C i tCYit~f Watertown of ~yomi. ng Larkin, Hoffman, Daly & Lindren Leonard Street & Deinard Projects recently have had displacees with greater levels of assis- tance necessary. Displacees have been non-English speaking, or of lower income. We recognize that the ESNDC project will be a relocation assistance intensive project. It is our intent to provide all reZocation services necessar~ to com- plete successfully the relocation process. We would provide these services in compliance with the Uniform Reloca- tion Assistance and Real Property Acquisition Policies Ac~ of 1970, as amended by the Surface Transportation and Uniform Relocation Assis- tance Act of 1987. This is the Federal Law adopted by Minnesota Statute 117.52. Following is a list descriptive of the services we provideand is not necessarily limiting. 1. Start-up meeting with staff to discuss relocation process & responsibilities, and coordinate consultant & staff activities and time schedule. 2. Prepare General Information Notices and Notices of Relocation Eligibility for all displacees. 3. If at all possible, hold a group meeting with all displacees to provide general information on process, responsibilities, benefits, and time schedules. 4. Meet individually with displacees in their apartments or PP~DPOSAL FOR B~LOCATION SE~YICF~ homes. Discuss information provided in the general meeting, as well as deters/ne special needs andpreferences of displa~ees. 5. Prepare revised Relocation Budget estimate. 6. Search for comparable housing and make referrals to dis- placees. 7. Prepare 90-Day Notice To Vacate with comparable housing identified. 8. Continue to make referrals, discuss process with displaceee, and continue to provide assistance as needed. 9. Inspect replacement unit to deter~ine if decent, safe, and sanitary standards are met. 10. Prepare moving specifications, secure bids, and schedule move. Il. Prepare 30-Day Notice To Vaca=e. ll. Prepare Moving Cost and Rental Assistance or Downpayment Assis=ance claims with supporting documentation. 13. Maintain log of all displaces contacts. 14. Maintain communica=ion with staff for status of each dis- places. 15. Assist displaces corrdinate movement of Section 8 Voucher or Certificate. 16. Present relocation claim file wi=h our recommendation and cer- tification for payment. Sheffield Project Workload The curren~ workload estimate is as follows: A-Duplex Residential Units for total of 8 Displacements P~oposal Price 1994 Charqe Ra~es Principal Associate Secretary Travel FAX Photocopy Interpreter Other expenses provided at actual coat. $65.00/~our $$5.00/~our $21.00/Hour .3S/Mile 1.00/Copy .10/Copy cost or provided by others. The relocation process requires cooperation and reasonable ef~or= on the part of the displaces. The cost of our services are highly depen- dent upon the attitude and skills of the displacees. We have been very successful in defusing difficult situations, and assistingdis- placees with the decision-making process, so that the process can proceed in a timely manner. Wilson Development Service proposes to complete the eight residential displacements at a maximum not to exceed amount of $6,000.00. Monthly PROPO~L FOR RELOCATION SRR~TCE~ Pq, a st&tea~nts based upon the above charge rates would be sulaaitted for payment within thirty days. Thank you for the opportunity to submit this propos~l. We a~e confi- den~ in our ability to assist you in successful projects., We are available to meet with you or your Board to further disouYs our later- est in your project and our qualifications. Daniel H. Wilson Principal Znclosure /CONWORTH, INC. 4725 Excelsior Blvd. Suite 200 Minneapolis, MN 55416 (612) 929-0044 FAX (612) 929-0568 June 13, 1994 JU/'~ 15 199~[ Mr. Don Schneider, Director Housing & Redevelopment Authority of Columbia Heights City Hall 590 40th Avenue N.E. Columbia Heights, MN 55421 Subject: Proposal for Relocation Services Sheffield Neighborhood Redevelopment Project Dear Mr. Schneider: Thank you for your phone call to Jacquelyne Wentworth, and for giving Conworth, Inc. an opportunity to work again with the Columbia Heights HRA in completing the above-mentioned project. We would like to submit a proposal to provide relocation services to the eight tenant households requiring displacement for the Sheffield Neighborhood project. We estimate that our fees for completion of interviews, comparable housing research and referrals, appropriate relocation claims, and counseling services for these relocatees would range from $10,000.00 to $12,000.00. Please note that our hourly rate is $60.00 an hour and we will bill only for the actual time spent on the HRA's project. There is no additional or separate charge for mileage, copies, support services, and so forth. We are presenting a cost "range" because it is difficult to anticipate, prior to interviewing the tenants, all the situations one might encounter. We will, however, consider the $12,000.00 top end of the above range to be a "not- to-exceed" figure. We understand that we will work directly with you on this project, and that you will advise us as to when we should initiate the relocation interviews and process. Because we have worked with your Agency in the past, rather than executing a formal contract, we feel that your signature of approval on the bottom of this letter will be sufficient for our records. If you wish a formal contract, just let us know and we will prepare one for your review. Redevelopment Acquisition/Relocation dUN Mr. Don Schneider June 13, 1994 Page 2 Again, we want to thank you for requesting our assistance in this matter. If you have any questions regarding this proposal, please feel free to call me or Jacquelyne at 929-0044. Sincerely, Conworth, Inc. For the HRA of Columbia Heights, MN Date CONWORTH, INC. Professional Redevelopment Resources, Inc. 2300 Central Ave. N.E. MPLS, MN 55418 Ph (612) 789-5151 · Fax (612) 788-1011 SHEFFIELD NEIGHBORHOOD DEVELOPMENT PROJECT KIRK 8CHNITKER 2D00 CEtCTRRL AVE. NORTHEAST MINNF. A~US. MINNESOTA 5S418 OFFIC~ 789-5151 FAX 7~-1011 Proposal To: Mr. Don Schneider Columbia Heights HRA 590 - 40th Avenue Northeast Columbia Heights, Minnesota Phone: (612) 782-2855 FAX: (612) 782-2857 55421 Professional Redevelopment Resources, Inc. Geoffrey L. Harper Acquisition & Relocation Consultant 2300 CENTRAL AVE. NORTHEAST OmCE 78c~5151 MINNEAPOUS, MINNESOTA 55418 FAX 788-1011 Proposal By: Professional Redevelopmem Resources, Inc. 2300 Central Avenue Northeast Minneapolis, Minnesota 55418 Phone: (612) 789-5151 FAX: (612) 788-1011 Proposal Date: June 15, 1994 Professional Redevelopment ResOurces, Inc. 2300 Central Ave. N.E. MPLS, MN 55418 Ph (612) 789-5151 · Fax (612) 788-1011 SHEFFIELD NKTt3HBORHOOD REDEVELOPMENT PROJECT PROPOSAL FOR SERVICES II. Residential Tenant Relocation Costs - Cost per Tenant Unit: $1,050.00 ~-/#~o ~~~ - This fee includes all URA required notices, contacts, advisory services, comparable search and referral, moving claim assistance and preparation, issuance of 90-Day Notices, housing replacement payment assistance, miscellaneous cost claim preparation, and other general services incidental to the relocation. ~ fT~3'- Residential Homeowner Relocation Costa - Cost per Homeowner Unit: $1,100.00 - This fee iDcludes all URA required notices, contacts, advisory services, comparable search and referral, moving claim assistance and preparation, issuance of 90-Day Notices, housing replacement pgyment assistance, mortgage differential and m~scellaneous cost claim preparation, and other general services incidental to the relocation. III. Review Appraisal Services - Cost per xmproved property: Cost per unxmproved property: 250.00 250.00 - We propose to use Don Hennessy, CRA. IV. Miscellaneous Services - Ail miscellaneous relocation services requested beyond scope of services for subject relocation services are billed at $65.00 per hour (generally not necessary), we do not charge for miscellaneous ex?enses such as secretarial, co~ying, mailings, mi±eage, FAXs, etc. Travel time is charged for time one way. All services are provided in compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA). Professional Redevelopment Resources, Inc. 2300 Central Ave. N.E. MPLS, MN 55418 Ph (612) 789-5151 · Fax (612) 788-1011 June 15, 1994 Mr. Don Schneider Columbia Heights HRA 590 - 40th Avenue N.E. Columbia Heights, MN 55421 Dear Mr. Schnsider: This letter is a follow up to our phone conversation regarding property acquisition and relocation services offered by Professional Redevelopment Resources, Inc. Our company, Professional Redevelopment Resources, Inc., specializes in public property acquisition and relocation services per the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and Minnesota state law. These services include planning, cost estimating, acquisition related work, appraisals and review appraisals and business, tenant and owner relocation work. We have experienced staff to professionally and efficiently handle your site acquisition needs. We can tailor our services to accommodate your needs. We specialize in relocation, however, we do considerable acquisition and related work. We provide these services efficiently, ethically, and professionally. We understand the accountability that we as professional services providers must provide. I have included with this letter information outlining the services Professional Redevelopment Resources, Inc. offers. Should any of these services be needed, please let us know so we can provide a proposal. Our fees are competitive and services are professional. Thank you for your consideration. Si ly, ~/~ GeOffrey L. Ha-rper Acquisition & Relocation Consultant ************ACQUISITION AND RELOCATION SPECIALISTS************ Professional Redevelopment Resources, Inc. 2300 Central Ave. N.E. MPLS, MN 55418 Ph (612) 789-5151 · Fax (612) 788-101 ! ..----. II~ m ~-iiiil-- II1_ w,,_._=,a I?1111. mm ~ ~ -- milI· ~ Ill= mil-- II .il I=..,.,, Ii11~ PROFESSIONAL REDEVELOPMENT RESOURCES~ ,INC. The owner of Professional Redevelopment Resources Inc. and Staff have over 60 years of combined experience in government and real property issues that relate to the Uniform Relocation Assistance and Real Property Acquisition requirements. Our clients, experience and projects are diverse. We provide a full coverage of services that include project planning, acquisition and relocation and appraisal and review appraisal services. We have undertaken projects involving residential single family to multi unit properties; commercial; industrial; partial acquisitions; airports; and, Right Of Way projects. Our projects vary in size from single parcel projects to acquisition projects involving hundreds of parcels. Our clients include the following: * Small & large cities * Counties * Airports * Department of Transportation * School Districts * Housing & Redevelopment Authorities * Waste Control Commxssion * State Universities Professional Redevelopment Resources is thoroughly familiar with the Uniform Relocation Assistance & Real Property Acquisition Policies Act, real estate laws and practices, property valuation and eminent domain procedures. MEMBER ASSOCIATIONS Ae American Associations of Airport Executives (AAAE) - Corporate Member International Right of Way Association (IRWA) - Member National Association of Housing and Redevelopment Officials (NAHRO) - Corporate Member .D. American Planning Association (APA) - Member Professional Redevelopment Resources, Inc. 2300 Central Ave. N.E. MPLS, MN 55418 Ph (612) 789-5151 · Fax (612) 788-1011 CAPABILITY STATEMENT Pro~essional Redevelopment Resources, Inc. provides services re~ating to all of the ~ollowing issues and services: Demonstrated capability relating to ensuring Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA), as amended, compliance. We have thorough working knowledge of URA: A. Notice Requirements (Acquisition, Relocation, 90 Days, etc.) B. Appraisal Requirements and Standards C. Review Appraisal Requirements and Standards D. Acquisition Procedures and Just Compensation Issues E. Displacement Issues, Eligibility Standards and Displaced Person Perspectives F. Relocation Waiver Issues G. Advisory Service Requirements H. Eviction Requirements I. Relocation Claim Requirements and Procedures J. Mov£ng Cost Requirements - Expense Based - Fixed Claim - Business Claims (actual or payments in lieu) K. Business Relocation Issues and Claims L. Replacement Housing Payments M. Far~ Relocation Issues and Claims N. Mortgage Differential Payments O. Closing Expense Payments P. Rental Assistance Payments: - Income Issues - Subsidized Housing Issues Q. Downpayment Assistance Issues R. Comparable Dwelling Standards S. Housing of Last Resort Issues/Requirements T. Mobile Homeowner Requirements U. Federal Highway Administration (URA Lead Agency) Regulation Interpretation Issues as Applied to State Laws, FAA Requirements, HUD Requirements, etc. V. Recordkeeping Requirements W. Other URA Requirements, Issues, etc. II. Acquisition and Relocation Plans: A. Planning for Federally funded projects per URA. B. Planning for local or individual client needs. C. Subject plans may include hearing process, acquisition, relocation, legal costs, site clearance, property management, and other relevant factors. III. Demonstrated Acquisition and Negotiation C&p&bilities and Knowledge of: A. Real Property Laws B. Acquisition Issues: - Real Property - Fixtures - Easements - Avigtion Easements - Partial Takings - Construction Easements IV. C. Arbitration and Pre-litigation Efforts D. Eminent Domain Laws, Issues, and Constitutional Issues E. Valuation Standards and Issues F. Closing Services Project Management Capabilities Relating To: A. Budget Preparation and Maintenance B. Coordination Duties Relating To: ~ - Clients, Their Staff, and Officials - Displaced Persons - Appraisers - Subcontractors - Client Contractors C. Property Status Reports D. Cost Projections E. Time, Schedule, and Deadline Accountability F. Solicitation of Public Input G. Public Hearings - Presentations and Issue Presentations Professional Redevelopment Resources, Inc. 2300 Central Ave. N.E. MPLS, MN 55418 Ph (612) 789-5151 · Fax (612) 788-1011 KIRK A. SCHNITKER PRINCIPLE OWNER : PROFESSIONAL REDEVELOPMENT RESOURCES, INC. AND SCHNITKER & ASSOCIATES, P.A. Mr. Schnitker is owner and founder of ProfessiOnal Redevelopment Resources, Inc. and Schnitker & Associates, P.A. His duties include both management of day to day business operations and providing consulting and legal services. From 1978-1980 he worked with the St. Cloud, Minnesota Housing and Redevelopment Authority as a Community Development Assistant. From 1980 to 1989 he worked in Community Economic Development with the Dakota County Housing and Redevelopment Authority in the southeastern area of the Minneapolis/St. Paul area. Specific working experience involves acquisition and relocation laws and regulations, and housing and development and redevelopment activities. Mr. Schnitker has been involved with hundreds of commercial, industrial, single family and multi-family acquisition and relocation projects and has worked on dozens of development projects from site acquisition through to construction. Currently Mr. Schnitker serves on the City Council for the City of Champlin and is a ~ast member of the Champlin Planning Commission. Mr. Schnitker is President of the Champlin Economic Development Authority and a Commissioner on the Metropolitan Council's Metropolitan Parks and Open Space Commission. Mr. Schnitker is also a board member of the American Indian Law & Policy Research Institute based at Hamline University School of Law and serves as a delegate on the Association of Metropolitan Municipalities Housing and Economic Development Policy Committee. Mr. Schnitker has a Bachelor of Arts from St. Cloud State University, a JD from Hamline University School of Law, and is a current Master of Arts in Public Administration student at Hamline University in St. Paul, Minnesota. Mr. Schnitker is a licensed attorney in the State of Minnesota. Mr. Harper has been with Professional Redevelopment Resources, Inc. since July of 1992 performing various staff support services as well as more detailed relocation services. Mr. Harper has performed services relating to Right of Way acquisition work with the Kansas Department of Transportation. These services have .included general file preparation and organization, client contact, and preparation of all aspects of file documentation. Mr. Harper has also performed various duties involving acquisition and relocation work with projects involving St. Cloud State University, the City of Roseville and the City of Sauk Rapids. Some of his other duties included work on Davis Bacon Labor Standards issues. Mr. Harper has a BS degree in Housing with an emphasis in Management/Finance from the University of Minnesota. ,JENNIFER A. VALENTA Ms. Valenta started with Schnitker & Associates and Professional Redevelopment Resources, Inc. in 1994 performing various consulting duties, as well as general office support. Ms. Valenta has experience in property management as she worked on a project with a former employer to transfer encumbered properties. Ms. Valenta is involved in all aspects of acquisition and · relocation activities, performed by Schnitker & Associates and Professional Redevelopment Resources, Inc. She finds com~arables, makes owner and tenant contacts, and prepares claims. Ms. Valenta graduated from University of Wisconsin-Madison in 1992 with a B.A. She is currently a Third year student at Hamline University School of Law. ~DDXTXON~J., STAFF Professional Redevelopment Resources, Inc. has additional staff available to perform appraisal, review appraisal, acquisition, relocation, planning and property management services. In addition to individual contractors, Professional Redevelopment Resources, Inc. employs four acquisition and relocation consultants. 4~0~0 0 0 ~ · ,-I ~ O~ · Oo.,q 0 :> 0,--I 0 r,.) I::l 0 C.).,-I .. O~o c0 0 · ,-I ~D O,.C~ 0 0 0 ..-I Icl 0 D.~ o I ~ I Professional Redevelopment Resources, Inc. shall comply with the client's policy of non-discrimination based on policies it has established in conformance with federal employment requirements. 1. Non-Discrimination - The consultant will not discriminate a~ainst any employee or app~i?ant for employment because cz race, color, national origin, age, sex, handicap or or disabil status with regard to public assistance t i which includes, but is not limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising; lay-off or termination, rates of ?a~ or other forms of compensation; and selecting for training, including apprenticeship. 2. Affirmation Action Program - The Consultant will strive to implement the principles of equal employment opportunity through an effective affirmation action program, which shall have as its objective to increase the utilization of women, minorities, and handicapped persons and other protected groups, at all levels of employment in all divisions of the Consultant's work force, where these groups may have been previously under-utilized and under represented. The Consultant ag?ees that in the event of any dis?ute as to compliance w~th the aforestated requirements, ~t shall be his responsibility to show that he has met all such requirements. 3. Compliance with the client's Policy - The Consultant will comply with all policies as they relate to the above involving equal opportunity and non-discrimination. 4. Subcontract work - Real estate services, appraisal work, demolition and other services could be subcontracted to DBE companies. 5. DBE Subcontractable Work - Any items stated in Item 4 above could be subcontracted to DBE companies depending on the availability of appropriate DBE companies. 6. Principle owner of Professional Redevelopment Resources, Inc., Kirk Schnitker, is 1/16 Dakota American Indian. Further, Professional Redevelopment Resources, Inc., is sensitive to client requirements regardin~ DBE ~oals. We recognize client requirements and will make all necessary efforts to comply in this area by subcontracting with DBE companies and/or to aid the client in procuring such services from DBE companies. CITY OF COLt~MBIA ~IGHT~ Meeting of, .. ~une 27. 1994 AGENDA SECTION z APPROVING ORIGINATING DEPT., HRA CITY MANAGER IMPLF/~ENTATION OF SHEFFIELD CDBG/HOME APPROVAL DUPLEX CONVERSION AND OWNER OCCUPIED P~HABILITATION ITEM, NO, DATE, JULY 15, 1994 The City Council has approved application for and Anoka County has approved grants of $120,000 through the Federal HOME Program and $249,010 through the Community Development Block Grant (CDBG) Program for use in the Sheffield Neighborhood. Funds are to beused for acquisition and clearance of deteriorated properties and renovation of properties in the Sheffield Ne£ghborhood. Clarification and formal approval of the programs previously approved are being requested at this time. The proposed resolution with details is attached is Exhibit "A". Additional information, as necessary, will be furnished at the meeting. RECOMMENDED MOTION, Move to waive the reading of Resolution 94-. .... , there being ample copies available for the public. ' .... RECOMMENDED MOTION, Move approval of Resolution 94- , Resolution Approving the Imple~aentation of Sheffield CDB~/HOME Duplex Conversion an---~---Owner Occupied Rehabilitation Program. coz NRA Coe~lssioners COUNCIL ACTION= ~bt\council. for ~*~ ' RBSOLUTIOH 94- RESOLUTION OF THE CITY COUNCIL FOR THB CITY OF COLUMBIA HEIGHTS, MXIiNBSOT&lk~P~ROVXNG IMPLEMENTATION OF SHEFFIELD CDBE3/HOMB DUPLEX COMVBRSXONIJ~I) OIINBR ocCuPXED RBILI~XLXT&TXON PROCJiUdf WHE~%S, the City of Columbia Heights (hereinafter referred to as the "City") has received a grant of $120,000 (matched by $30,000 of local funds) through the federally funded HOME Program for use in renovating duplexes in the Sheffield Neighborhood into large single family houses; and WHERe, the City has allocated $249,010 of its FY1994 federally funded Community Development Block Grant (CDBG) allocation from the Anoka County CDBG Program for Acquisition and Clearance of Deteriorated Properties ($139,000) and Single Family/Duplex Housing Rehabilitation ($110,010) with use of the Acquisition funds restricted to the Sheffield Neighborhood until June 30, 1995 and with the owners of property in the Sheffield Neighborhood to receive preference over others for loan/grant funds through the CDBG Rehabilitation Program; and NHBRBA~, a limited portion (up to $30,000) of the FY1994 CDBG Single Family/Duplex Housing Rehabilitation is needed to complete housing rehabili- tation projects that the HRA has in process outside of the Sheffield Neighborhood and a portion of the FY1995 CDBG Program funds could be used in the Sheffield Neighborhood if needed; and WHEREAS, it is desirable to have housing rehabilitation programs for low income and non-low income property owners who occupy their property (duplex or single family) in the entire Sheffield Neighborhood with preference given to those with homes immediately adjacent to the *'Target" block area (4600 Blocks of Pierce and Fillmore Streets); and NH~RBA~, the City currently owns duplex units at 4519-21 and 4535-37 Taylor Street N.E. and 4531-33 Fillmore Street N.E. which are to be the first three (of up to eleven) duplexes to be converted to single family units; and NH~BA~, the architectural firm of Dovolis, Johnson & Ruggieri, Inc. (hereinafter referred to as the "Architect") has been involved with the City in preparing preliminary plans for the renovation of duplexes and has agreed, after substantial negotiation, to provide plans and specifications for the renovation of the three initial duplexes for $2,995 for each of the duplexes; and WHiP, AS, the plans and specifications prepared bythe architect will be usable with minor revisions on the other duplex conversions; and ~H~F~. the initial three (and any future) duplexes renovated into single family houses will be sold and the plan is to sell the houses (for $84,900 or appraisal value after renovation, whichever is less) via a lottery system with preference given to residents of ¢01umbia Heights; and NH~BA~, the proceeds from the sales of the renovated units is to be deposited into a duplex renovation revolving fund to acquire and renovate additional duplexes into single family homes in the Sheffield Neighborhood; THEREFORE BE IT RESOLVED by the City Council of the City of Columbia Heights that it approves and City/HRA staff are authorized to implement programs as approved here and in the 1994 HOME and CDBG Programs (as previously approved by the City Council): (1) Use of up to $30,000 FY1994 CDBG Single Family/Duplex Housing Rehabilitation funds for completing rehabilitation projects in progress from ~amilies outside of the Sheffield Neighborhood with the.understanding that the amount used oUtside of the Sheffield Neighborhood will be replaced by FY1995 CDBG funds after July 1, 1995 (if needed in the Sheffield Neighbor- hood). (2) Establishment of single a family and duplex owner occupied rehabilitation program with preference to those im~ediately adjacent to the Target Block of the 4600 Block of Pierce and Fillmore. In addition to assisting low income homeowners under the CDBG funded rehabilitation program, non-low income homeowners (single family and duplex) will b e assisted with up to $50,000 of funds from the sale of City owned residential properties located outside of the Sheffield Neighborhood. Staff, with concurrence of the City Council, is authorized to grant loans with 2% interest and terms of up to 10 years to owner occupants of duplexes and single family homes in the Sheffield Neighborhood to enable them to complete interior and or exterior improvements to their properties. Preference is to be given to properties immediately adjacent to the "Target Block" area. Loans of up to $5,000 are authorized with those over $2,000 to be secured by mortgage against the property and those under $2,000 secured by a Promissory Note. (3) In regard to the duplex conversion to single family program in the Sheffield Neighborhood the following, in addition to those guidelines approved in th· FY1994 HOME Program Application, are approved: (A) Families for ownership of the renovated homes will beselected by LOTTERY with preference given to Columbia Heights residents. (B) The price forths renovated houses will be established asthe lower of the appraised value after completion of the renovations or $84,900. (C) The proceeds from the sale of converted properties is to be deposited into a duplex renovation revolving fund for aquisition and renovation of additional duplex units in the Sheffield Neighborhood. (D) The City Manager is hereby authorized to contract with Dovolis, Johnson & Ruggieri, Inc to have them prepare the plans and specifications for the initial three duplexes to single family houses with two car garages for a fee of $2,995 each for a total cost of $8,985. Approved this day of , 1994. Motion by: Seconded by: 'VotingAye: Voting Nay: Absent: ATTEST: JoAnne Student City Council Secretary Joseph Sturdevant Its Mayor CITY OF COLUMBIA HEIGHTS SHEFFIELD HOME REHABILITATION PROGRAM Exhibit B ,EXPENDITURES PROPERTY ACQUISITION 4~19/21 Taylor Street 4531/33 Fillmore Street 4531/33 Taylor Street PROFESSIONAL SERVICES Design Fees HRA CDBG Administration HRA HOME Administration HOLDING COST Real Estate Taxes Repairs - Maintenance BUILDING IMPROVEMENT (3 duplex conversions under HOME program) Detached Garage Construction Exterior Improvements Interior Improvements Landscaping Heating Bathrooms Kitchens Contingencies SHEFFIELD OWNER OCCUPIED REHABILITATION (Priority to dwellings adjacent to 4600 block) 5 Interior Rehabilitation 5 Exterior Rehabilitation CITY - WIDE REHABILITATION 3 Single Family Homes TOTAL COST BUDGET EXPENDITURES TO DATE 162,000.00 162,000.00 54,000.00 54,000.00 54,000.00 54,000.00 54,000.00 54,000.00 BALANCE ..REMAINING 0.00 0.00 0.00 30,400.00 969.53 29,430.47 8,700.00 8,700.00 14,700.00 14,700.00 1,0(X).00 969,53 30.47 6,000.00 6,000.00 7,000.00 6,000.00 1,000.00 119,610.00 0.00 0.00 0.00 162,969.53 18,000.00 18,000.00 26,000.00 4,500.00 4,000.00 15,000.00 19,500.00 14,610.00 25,000.00 25,000.00 30,000.00 30,000.00 399,010.00 7,000.00 6,000.00 1,000.00 119,610.00 18,000.00 18,000.00 26,000.00 4,500.00 4,000.00 15,000.00 19,500.00 14,610.00 25,000.00 25,000,00 30,000.00 30,000.00 236,040.47 CITY OF COLUMBIA HEIGHTS SHEFRELD HOME REHABILITATION PROGRAM REVENUE 1994 CDBG ALLOCATION 1994 HOME PROGRAM CITY HRA/SURPLUS PROPERTY SALE~ TOTAL REVENUE PROPOSED BUDGET 249,010.00 12O,OO0.O0 30,000.00 399,010.00 REVENUE TO DATE BALANCE REMAINING DEFERRED SOURCESOF ~COME HOUSE RESALES2 DEFERRED REPAYMENTFROM REHABS3 TOTALOFDEFERRED SOURCES 240,000.O0 50,000.00 2O0,0O0.00 Notes ;The HRA/City now owns a number of vacant lots that can be sold and should generate about $15,000 per lot or about $70,000 total. 2Revolving Fund for future Sheffield duplex purchases/rehabs. 3Property owner repayments from rehabilitation projects to be used for future rehabilitation projects. CITy COUNCIL LETTER Meeting of.' July 18 1994 AGENDA SECTION~ RESOLUTIONS/SHEFFIELD ORIGINATING DEPARTMENTs CITY MANAGER'S NO: 2 CITY MANAGER'S APPROVAL ITEMs SHEFFIELD LAND USE AND SITE DESIGN BY~ PATRICK HENTGES BY~ STUDY DATE~ 7-15-94 DAT NOs 2 E The City Council previously received a copy of McCombs Frank Roos Associates, Inc. study of the 4600 target block in the Sheffield neishborhood. Please bring the document to the meeting. The MFR study highlights the following points~ 1) The study indicates that the most appropriate land use for the target block is residential detached owner-occupied housing. New home construction with a market price of $80,000- $90,000 would be generally more affordable for households within the Columbia Heights demographic area. This is not to say that the higher home values may result from the lower land cost in Columbia Heights, a preferential interest by Columbia Heights residents to locate in the area, and higher construction of value through 'custom upgrades' and 'sweet equity'. 2) The study did not rule out the possibility of attached housing because of some of the economic advantages such as lower individual unit costs, design control potential for better project continuity/yard maintenance, and the possibility of common recreational space. Alternatively, single family detached housing was preferred because it increases the potential of individualized home designand distinction, reduces density, and may have a greater tendency towards pride and ownership. 3) The study concluded that the site can accommodate walk-out homes, split entries, full basement, and 'look out' style homes. Continuance of the public alley would serve little if any transportation or lot access value as most modern housing styles are developed with attached garages. The public alley under either an attached housing or detached housing scenario would only add unnecessary maintenance and security costs; and pose problems with obtaining walk-out or look out style homes. 4) The study suggests that the minimum floor area, lot size, building set-backs need to support minimum home floor areas of 800 square feet to approximately 1,000 square feet plus attached double car garages. It suggests that lot widths be at least 60 feet and increased at the corner lots to accommodate slightly larger building footprints or Preferred garage locations/orientations. The study recommends if economics proof favorable, interior lots should be 63 feet in width with slightly larger corner lots. Thus, the site could accommodate 16 to 18 lots, as opposed to the current 20. It suggested that side yard setbacks be increased to 7 feet vs. the current ordinance requirement of 5 feet. 5) The study recommends draft development guidelines and accompanying exhibits intended to achieve apparent goals of neighborhood revitalization in part through architecture, landscape architecture, and pedestrian and vehicle access considerations. 6) The study serves as a resource document to defining and drafting the specific deed or development restrictions that would cover the construction and house design on the site. Existence of deed restrictions are commonplace to construction and land development in growing areas. COUNCIL ACTION= CITY COUNCIL LETTER Meeting of: July 18, 1994 AGENDA SECTION: RESOLUTIONS/SHEFFIELD ORIGINATING DEPARTMENT: CITY MANAGER'S NOt 2 CITY MANAGER'S APPROVAL ITEM: SHEFFIELD LAND USE AND SITE DESIGN BY: PATRICK HENTGES BY: STUDY DATE: ?-15-94 DATEs NO: 2 E Page Z 7) The study provides a basic format that can be used in the final draft of a "Request fOr Proposals' an~ as an evaluation list to assist the City in selecting a builder/developer for the target block redevelopment. In summary, the City Council has three items for consideration for them. The first motion directs Staff to prepare the necessary design work that prepares the block for development and establishes the minimum design and construction standards in the form of development guidelines. Of course, I expect that prior to filing individual documents, the final form will come before the City Council for approval also. The second motion directs City Staff to solicit a Request for Proposals from developers/contractors. With the information before us, I expect this process to occur over the next 60 days in the event tax increment component of this project prevents construction on the site before January 1, 1995. As a third alternative motion, the City Council could direct the City Manager to prepare a marketing plan whereby the City\HRA would market individual lots to contractors or owners, thus circumventing the need for a private developer/contractor. I suggest not doing this simultaneously with the solicitation of RFPs from developers/contractors, as it may discourage interest, if they see that the City does not intend to actually award a proposal in good faith. RECOmmENDED MOTION: Move to Direct City Manager to Prepare Necessary Documents for City Council Approval Establishing Deed Restrictions, Design Guidelines, and Lot Layouts, According to the Recommendations Outlined in the McCombs Frank Roos Associates, Inc. Report. RECOmmENDED MOTION: Move to Direct City Manager to Finalize Request for Proposals Soliciting Build/Developer(s) Interest for Property Located on 4600 Block Between Pierce St. and Fillmore St. and Establishing September 15, 1994, as Submittal Date. ALTERNATE MOTION: Move to Direct City Manager to Prepare Marketing Plan for the City/HRASale of Lots Located on the 4600 Block Between Pierce St. and Fillmore St. to Individuals or Contractors. COUNCIL ACTIONs Mo mb Frank Roo 15050 23rd Avenue North, Plymouth, Minnesota 55447 May 23, 1994 Telephone Engineers 612/476-6010 1994 Mr. Patrick Hentges, City Manager City of Columbia Heights 590 40th Avenue Northeast Columbia Heights, Minnesota 55421 H hqS CiTY 0F 782-2810 782-2801 - fax SUBJECT: Sheffield Neighborhood - Stabilization/Redevelopment Planning MFRA #9999 Dear Mr. Hentges: This proposal is written following our telephone conversation on May 19, 1994 concerning the stabilization/revitalization of the Sheffield neighborhood; specifically the 4600 Block of Pierce & Fillmore Streets. The issues are complex, however, the fact that the City has undertaken the acquisition of most properties within the block, is a significant step in revitalizing the area. The second step involves decisions regarding land use (residential housing type) and the formulation of Design Development Parameters which will "insure" neighborhood integrity in the resulting built environment. To approach a reasonable solution to the question, we propose the City undertake a Land Use and Site Desiqn Study which will substantially finalize decisions regarding Land Use and Design Development Standards, presumably intend to enhance the neighborhood without encumbering properties beyond reasonable market expectations. The following are work tasks which will facilitate preparation of Design Development Program and serve as a City wide "showcase": Confirm the appropriateness of residential uses for the property by considerinG the comparative advantages of single- family detached and attached housing alternatives. This initial Land Use confirmation procedure will consider detached homes, townhomes, and clustering concepts taking into account topographic relief, and neighborhood context. The importance of this approach is to objectively con~ider various housing type alternatives. An Equal Opportunity Employer Mr. Patrick Hentges May 23, 1994 Page Two Identify a list of housing design characteristics which provide variety and avoid monotony and redundancy (this will include a pallet of exterior building materials, roof slopes, decks, porches, patios, building elevations, facade deviation, and roof lines such as; gable ends, dormers, skylight, and pitch). Identify a list of site design characteristics which emulate higher quality residential neighborhoods; identify elements such as; walkways, fences/screening, driveway design, foundation plantings, specimen tree plantings, ornamental plantings, accent gardens, etc. Determine minimum site floor area ratio, site coverage (percent), garage standards, and side, rear and front yard setbacks, and lot width. Se Determine and verify the most appropriate home sites (building pads) within the subject block and recommend floor plans, i.e., full basement, tuck-under, walk-out or side entry split foyer. Determine to the extent practical garage locations and preferred access, whether from a public street, alley or alternative location. Also determine under various development schemes the appropriateness of the existing alley, face-to-face with garage location and home orientation. e Prepare Draft Design Development Guidelines for new construction and/or rehabilitation. Establish requirements to achieve the apparent goals of neighborhood revitalization, including architecture, landscape architecture and pedestrian and vehicular access considerations. e Prepare a draft Request For Proposals for consideration as one alternative to selecting builder/developers. The crux of this study is to provide a .forum, through the consultant, to develop criteria and guidelines which will facilitate bringing to fruition the expected revitalization of older residential areas in Columbia Heights. We recognize that such a study is process oriented and that the completion of the work is evolutionary in nature; from initial input, to developing consensus, to formulation of a plan, to physical improvements on site. The process of developing a useable "end product study" requires input and reaction from multiple interest. The final product, refurbished and/or new homes, will be determined by our collective ability to identify and determine what is visually pleasing and desirable and to create, guidelines and standards to implement their "idealized images". A significant side issue will be to balance the ideal end results with reality and market demand. Mr. Patrick Hentges May 23, 1994 Page Three Because the study is intended to have considerable longevity and potentially applicable to other areas of the City, I believe it will be in the best interest of the City to commit to a number of meetings, facilitated by the consultant and City Staff, geared to developing the quality and nature of standards deemed appropriate to the revitalized neighborhood. This may involve citizen committees. It is difficult to estimate the cost for such services, however, for purposes of budgeting, it is conceivable that a total of ten meetings may be required throughout the life of this project. The research time, document preparation time, and report preparation is estimated to cost $4,000.00 maximum. With regard to personnel assigned to this project I believe it would be beneficial to approach this with a multi-disciplined team, involving myself, a real estate development planner, Theresa Greenfield a Municipal Planner, Suzanne Rhees, a planner with neighborhood revitalization knowledge, and Kathy O'Connell, an experienced Landscape Architect. My role will be to bring a broad sense of reality and perspective to the study with Theresa and Suzanne having experience in zoning, land use planning and performance standards and Kathy O'Connell, an experienced and sensitive urban designer. We will look to the City to provide base map information, computer files, documents such as zoning, and to meet with the consultants and schedule all meetings with City officers, landowners and other designated participants. We appreciate the opportunity and look forward to assisting the City in completing this important study. We are prepared to start this work the week of May 23rd, 1994. Kindest regards, J~/~CIATES, INC. ~l~dhael'J~ Gay, vice President Princfpal~ner MJG:Jb THE CITY OF COLUMBIA HEIGHTS ACCEPTS THIS PROPOSAL AND DIRECTS MFRA TO PROCEED WITH PREPARING THE LAND USE AND SITE DESIGN STUDY; Date Date