01-08-1996 - Laserfiche WebLink

Home Browse Search

• Page 7 January 8, 1996 Mounds View City Council Replacement Program) that would be funded with Tax Increment Financing and be dedicated solely for housing. This program allows them to recoup costs of properties as they are redeveloped for future housing costs. She stated they generally pay approximately $45,000 to acquire the property and pay another $4,000 to clear the property for development. Generally, they are able to sell the property for between $20,000 and $25,000. The intent of the Housing Replacement Program is to provide a way for the city to try to recoup some of the losses (25-33%). The program also gives the city a vehicle for setting up a revolving fund and an opportunity to address an ongoing housing problem. Ms. Noms informed the council members that the properties they purchase under the program must be vacant, substandard properties. They also must have a willing seller. She stated Crystal included the entire city in their Housing Replacement District because their housing problem is not concentrated in any one area. The district will be intact for fifteen years which will allow them to take in increments generated from those parcels for a fifteen year period. Last year, their first year running the program, they purchased and cleared eight sites which they are now in the process of selling. Bruce Nordquist, Housing Supervisor for the City of Richfield, distributed information to the council members on a variety of programs they have developed since 1990. He also gave them a brief history of the City of Richfield, providing slides to show some of its housing. Some of the programs that Richfield offers its residents are CDBG Rehab Programs, MHFA Rehab Programs and FHA and Fanny Mae Financing for remodeling, a Remodeling and Design Advisory Consultant on staff and they hold an Annual Remodeling Fair. Mr. Nordquist explained that Richfield's housing problems are scattered city-wide. They created a Redevelopment District and are doing the same in residential areas as what has been done in commercial redevelopment. Properties are purchased and a new development is put in to replace them. He noted that approximately 45% of their acquisition project costs are returned from proceeds of sale and 55% come from tax increment. Acquisitions in Richfield have averaged $52,300 with demolition being an additional $3,900. Ms. Trude asked if Richfield had created a Tax Increment Financing district for strictly housing or if it had been pooled together with the commerciaUindustrial area. Mr. Nordquist explained that there are five districts pooled together. These include three redevelopment districts, one economic development district and one housing redevelopment district. Mr. Nordquist briefly explained Richfield's Deferred Loan • Program, whereby a percentage of the rehab costs are contributed by the city for as long