08-25-1997 EDA - Laserfiche WebLink

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EDA Meeting#40 July 28, 1997 u Page 2 1 Eastwood Road and Highway 10,and the house was demolished The city then proceeded to market the 2 property,attempting to obtain commercial development on the property. The city received no bids for the 3 property. The staff then went before Council,asking that a special:study be done of this property and 4 other properties in the area of Highway 10 to determine what types of uses were appmpriate given what 5 the market was seeking and possible restraints and opportunities with access points,the location adjacent • 6 to the highway,etc. This became known as the Area 9 Highway 10 Study. The study provided some 7 . recommendations as well as some discussion between the city and a developer who had been working in 8 the community;inthe past(MSP Real Estate). The recommendation from the consultant was for multi- ,1; 9 family development on the site. The proposalbeing considered for the site combinesthe three vacant 10 lots with the Red Oak Apartnpient development, It would include the addition of 16 rental townhomes and 11 the renovation of the Red Oak Apartments,operated as.one project. 12 a 13 Ms. Sheldon explained that at this time,the Red Oak Apartments are built at a density of 24.7 units/acre, 14 zoned R-4. The density on the apartment part of the project is higher than what would now be allowed R- 15 4 zoning(174,units/acre). If the new townhome project were combined with the Red Oak Apartments, 16 the overall density for the project would be reduced to 15 units/acre(due to the three vacant lots which 17 would be addled as a part oftheoverall development). Additionally the open space for each unit would 18 increase substantially. ..'She noted that one of the aspects of this project is that by combining all the land, 19 the end result is different than if the land is left as separate-lots. She noted that this development meets 20 the requirements for the building setback,parking lot,the lot width,the lot area,the building height,the 21 minimum floor area for each unit,and the open space requirements. Ms.Sheldon explained that the 22' developer asked the Planning Commission for a variance to put some of the parking spaces into"proof of 23 parking",which allows for more greenspace with a requirement that the applicant will build additional' 24 parking spaces if the city determines that more is needed. , 25 26 Ms.Cathy Bennett,Economic Development Director,explained that MSP Real Estate is requesting that • 27 the EDA sell the corner lot for a purchase price of$1.35 per square foot. There is approximately 35,000 28 square feet on the property for a total purchase price of$47,000. This is the same of ter they have given 29 the owners of the other twb vacant lots as part of the development. An appraisal was done on the vacant 30 lot and came in at$1.20 per square foot($42,000). When the EDA purchased the land in 1995,it was 31 purchased for$125,000 with a single family home that was in the process of beingconverted to a tri-plea: 32 . The property was deteriorating and after the city purchased it,it was demolished for.$6,000: The;initial 33 intention`was to redevelop the property for commercial ase. The city solicited requests for information to 34 25 local brokers and:the city did not receive any interest in redeveloping the area for commercial use. 35 .Some inquirieswere received but access was a critical part of their business and access was needed to 36 Highway 10. 37 38 Ms.Bennett briefly went through the income qualification guidelines for the rental units as well as the 39 proposed rental rates for the development.- She explained that a total of ten units would be set aside as 40 Hoffman Units under the Holiman Consent Decree. The Silver Lake Commons development proposal, 41 includes an on-site management office. She stated she has spent time talking with the Management firm 42 that MSP Real Estatewould contractwith and has checked with'several references of properties that they 43 have managed,ail of which gave them excellent reports. 44 45 Ms.Bennett stated staff is recommending approval of Resolution No 97-EDA-72. ; 46 47 Milo Pinkerton of MSP Real Estate,stated originally their proposal included a total of 28 townhomes. 48 Their company met with the neighborhood on two separate occasions and reduced the number to 16,based 49. upon neighborhood input to not have;access on Eastwood Road. The problems of deferred Maintenance • •s. 50 at the Red Oak Apartments will be'corrected. Over$23,000 will be invested in each unit including a new 51 roof with dormers,new railings,vinyl siding,garages will be torn down,new asphalt paving,new 52 . carpeting,paint,kitchen cabinets,vinyl flooring,heating/air conditioning as necessary. Two play areas