Agenda Packets - 1998/09/08 - Laserfiche WebLink

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Item No. _ Meeting Date: 9-8-98 Staff Report No. Type of Business:WK WIC:Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Re port To: Honorable Mayor, City Council Members From: Steve Dorgan, Housing Inspector Item Title/Subject: Proposed Multi-Family Development - Salvation Army Date of Report: September 3, 1998 SUMMARY Staff recently met with representatives from the Salvation Army regarding a proposed multi-family development proposal for the two vacant parcels on Woodlawn Drive(see Exhibit A). One of the lots (PID #08-30-23-22-0002) is currently owned by a private party(Glen Thorpe Realty). The other lot(PID #08-30-23-22-0003)is a tax forfeited property owned by the State of Minnesota. The City of Mounds View currently holds a"use deed" on this property with an option for purchase. The Salvation Army has proposed the City obtain the tax forfeited property and resell the lot to the Salvation Army for their proposed multi-family development. Both lots are zoned R-3 Medium Density Residential(6 units or less per structure) and have a Comprehensive Land Use designation of High Density Residential(12+units per acre). Therefore, a rezoning, development review and potentially variances will be required for the development as proposed. Both lots have never been developed. PROJECT DESCRIPTION The Salvation Army is proposing to obtain both vacant lots for the development of an 8 unit multi-family building which will include four 2-bedroom units and four 3-bedroom units for the purposes of providing low-moderate income housing(see attached site plan). The proposed multi-family building would provide permanent housing and on-site support services for homeless families living with HIV/AIDS some of whom may also be chemically dependant or mentally ill. The on-site services would include child care, transportation, health care coordination and chemical and mental health support. Community space would be used for shared meals and meetings. (see attached narrative) The lot owned by Glen Thorpe Realty may be purchased outright by the Salvation Army,however, because the City has a"use deed"for the State owned lot,the property would first have to be purchased by the City and then resold to the Salvation Army. Because the property is a tax forfeited parcel owned by the State, non municipal entities would have to purchase the property through an auction. The Salvation Army is requesting the City release the"use deed" on the property, purchase and resell the lot to the Salvation Army contingent upon the approval of the Salvation Army's development proposal. Ramsey County Assessors Office has valued the land at$29,000 plus recording fees. DISCUSSION The Salvation Army has applied to the MHFA for funding of the proposed project. As part of the application, the developer is required to obtain purchase agreements for the subject lots. Because the City