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HomeMy WebLinkAbout03-22-1999 EDA CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY,March 22, 1999 AGENDA ROLL CALL: President Coughlin, Vice President Stigney, Commissioner Marty, Commissioner Quick, Commissioner Thomason 1. AGENDA ADDITIONS 2. APPROVAL OF MINUTES A. Approval of EDA minutes from March 8, 1999 3. SPECIAL ORDER OF BUSINESS none 4. CONSENT AGENDA none 5. EDA BUSINESS A. Review of RFP for sale of lot- 6991 Pleasant View Drive 6. REPORTS 7. ADJOURNMENT MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES MONDAY,MARCH 8, 1999 1. CALL MEETING TO ORDER. Mayor Coughlin opens up the Economic Development Authority. 2. ROLL CALL Present: President Coughlin,Vice President, Stigney, Commissioner Marty, Commissioner Quick. Not present: Commissioner Thomason. 3. EDA BUSINESS Mayor Coughlin stated the only item before the authority today is consideration of resolution 998A 108. Resolution approving an amended development assistance agreement with Michael Investments concerning building and project. Mr. Jopke stated at the previous work session brought before you an amendment to the development assistance agreement that the Council approved in September 1998,the proposed changes are as the result of some plan changes. The changes are housekeeping of nature related to the data on the agreement. To change the definition of improvements to reflect the alternate plan. To change from partnership,not a corporation. Change to indicate that Jeffrey L.Nielson is the general partner,not president. Mr.Marty stated he had several calls from citizens who actually watched that work session and they posed some questions. Mr. Marty stated would like to postpone and discuss it more in the next work session. Motion/Second: Marty/Stigney. Motion to postpone until the next work session. Ayes - 4. Nays - 0. Meeting adjourns at 8:45 p.m. Respectfully submitted, James Merrill IIN:\USERS\CARIS\COUNCIL\MINUTES\MVCC8.MAR Item No. Staff Report No. Meeting Date: 3/22/99 Type of Business_ EDA WK• Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Steve Dorgan, Housing Inspector Item Title/Subject: 6991 Pleasant View— Housing Replacement Program Date of Report: March 18, 1999 SUMMARY The EDA purchased 6991 Pleasant View Drive last January as part of the Housing Replacement Program. The city has contracted with Frattalone Excavating for the removal of buildings on the property. Frattalone submitted the low bid of$7,900 for the required work. Demolition and site preparation should be completed by the first week in April. Staff has prepared a draft request for proposal (RFP) for the sale of the subject site. The draft RFP includes minimum home design, minimum price, neighborhood compatibility requirements and site criteria. These requirements were derived from previous outlines used for the sale of HRP properties. Also included is a participation agreement for the sale of the lot. The agreement would be executed at the time a proposal is approved by the EDA. The EDA may choose to set a minimum asking price for the sale of the lot. In June of 1998, the land value of the subject site was appraised at$35,000. It is assumed the market will determine the sale price of the lot, however, the EDA may choose to set the minimum sale price base on the appraised value of the lot. Staff frequently receives requests for vacant residential lots in the city and has compiled a database of these contacts for marketing HRP lots. The demand for single family lots in the city appears to be high. By setting a minimum price for the lot, the EDA establishes a value, which will at least recoup the investment on the land. REVIEW/ IMPLIMENTATION PROCESS Once all the redevelopment proposals have been received, staff will prepare a summary of the bids for review by the EDA. The EDA may then determine which proposal best meets the intention of the program for redevelopment of the subject site. When the proposal has been selected, the EDA will enter into a "Participation Agreement" with the developer. The selected developer is required to provide a deposit of$500 to the city as part of the "Participation Agreement" and enter into a "Purchase and Redevelopment Agreement" within 30 days. The Participation Agreement holds the property exclusively for the selected developer until a "Purchase and Redevelopment Agreement" has been executed between the EDA and developer. Once the "Purchase and Redevelopment Agreement" is executed, the EDA will then sell the property to the developer for immediate construction of the home. CC Memo—6991 Pleasant View RFP March 22, 1999 Page 2 ACTION TO BE CONSIDERED 1)Approve the attached Request for Proposal, Housing Design and Site Criteria and Participation Agreement documents for the purposes of distribution to potential builders and developers for the redevelopment of the subject site; or 2) Defer the attached Request for Proposal, Housing Design and Site Criteria and Participation Agreement documents to the next City Council Workshop meeting for further discussion. Steve Dorgan, Housing Inspector 612/717-4023 email: steved@rcmnet.orq Attachment: 1) Request for Proposal —Sale of 6991 Pleasant View Drive 2) Housing Design and Site Criteria 3) Participation Agreement OW OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY CJSDO REQUEST FOR PROPOSAL •'° 6991 PLEASANT VIEW DRIVE °d'rosS Partnesr��s To: Residential Builders and Interested Home Buyers From: Steve Dorgan, Mounds View EDA Subject: Lot for Sale - 6991 Pleasant View Drive Date: March 25, 1999 The Mounds View Economic Development Authority(EDA) is requesting proposals for the purchase and redevelopment of a single family lot located at 6991 Pleasant View Drive in the City of Mounds View(see attached map for location). The minimum asking price for the lot is$35,000. In order to be considered a builder must submit a proposal in writing by 4:00 PM on April 23, 1999. The proposal shall include the offer price of the lot, a description of the proposed new home including the number of bedrooms, bathrooms, garage stalls and estimated value of the new home. Proposed building floor plans and elevation plans are welcome. The EDA will only consider proposals from a licensed residential homebuilder. Individuals who are interested in purchasing the lot for a home must identify a builder who will enter into a Contract with the EDA. Please submit proposals to: Mounds View EDA ATTN: Steve Dorgan 2401 Highway 10 Mounds View, MN 55112 The selected builder must comply with the Housing Design and Site Criteria. Upon satisfactory negotiations, a builder must enter into a Participation Agreement and submit a $500 non-refundable fee (see attachments). Within 30 days of signature of the Participation Agreement a Purchase and Redevelopment Agreement will be executed. The development of all sites shall meet the development objectives as set forth in the Housing Design and Site Criteria. These guidelines were created to ensure that the home built will blend in with the surrounding neighborhood and respond to the objectives of the Mounds View Housing Replacement Program. Please contact Steve Dorgan at 612/717-4023 or email: steved(l1rcmnet.org with questions. Housing Design and Site Criteria Mounds View Housing Replacement Program The Mounds View Economic Development Authority (EDA) established the Housing Replacement Program to reduce the social costs of blight and increase the tax base. The purpose of the program is to replace deteriorating lower value housing on scattered sites throughout the City with larger, higher value housing designed for families. To accomplish this goal, the EDA purchases substandard homes, demolishes the home and sells the lot to prospective buyers for redevelopment. This will assist in eliminating the blighting influence of substandard housing and increasing the availability of quality housing for families. The development of all sites shall meet the development objectives listed below. The guidelines were created to ensure that the homes built on the subject lots blend with the surrounding neighborhood and respond to the objective of the Mounds View Housing Replacement Program. 1. General a. The developer/builder must be a licensed contractor. All sub-contractors must also be licensed. b. The developer/builder must enter into a Purchase and Redevelopment Agreement with the EDA, which will specify design, set site criteria and establish value based upon new home construction in the surrounding area. c. Home design must comply with all federal, state and local building codes. d. The house must be able to be built within six (6) months from the time the Contract for Private Development is executed. An extension may be granted with the permission of the EDA. e. Each home must be single-family, owner occupied. 2. Building Standards a. All building plans must have been prepared in consultation with an Architect or Architectural Designer with a minimum two-year technical degree. Housing design is a critical concern. b. A minimum of three bedrooms is required. c. Two full bathrooms are preferred. A home design with 1 1/2 baths will be considered. d. A two-car attached garage is required. e. Exterior materials (siding, doors and windows) should be low maintenance. Aluminum and vinyl are preferred. Natural cedar lap is acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are not acceptable. MV Housing Replacement Program Housing Design and Site Criteria f. Unit height and mass of the new homes shall be compatible with the scale of the surrounding neighborhood. g. Plans must present a balanced distribution of wall and window areas from all views. h. A full basement shall be provided in the house unless the selected design results in a split level, garden level type of basement. 3. Site Standards a. The entire grounds shall be landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend with adjoining properties. The City Forester must review the landscape plan. b. Existing trees shall be preserved when possible. Care should be taken to preserve existing root systems. Construction fencing around the root system must be provided on trees directly adjacent to active grading and construction areas. The City Forester can assist in recommending methods of protecting existing trees and shrubs. c. Site drainage shall be accommodated on the site so that water is directed away from the new home and the neighboring properties. The developer must comply with any federal, state or local drainage requirements. Construction and the finished structure must not have a detrimental impact on storm water drainage patterns in the neighborhood. d. All air conditioning units must be located in the rear yard of the house. e. Utility meters shall be screened from street view; locations must be specified on plans. f. The neighboring property and adjacent public streets shall be kept free of construction debris at all times. The construction site shall be managed so not to become a nuisance. Under no circumstance during the construction period shall construction workers, construction equipment or construction materials enter, disturb, or damage neighboring properties. g. A wetland buffer permit may be required for the lot. A delineation for wetland boundaries will be required, and if necessary, a wetland buffer permit obtained. Page 2 MV Housing Replacement Program Housing Design and Site Criteria 4. Builder/Developer Requirements a. Demonstrate financial capability by providing: (1) A statement from a financial institution of sufficient construction capital (2) A letter of credit of the value of the lot (3) A summary of the financial conditions of the company (4) Evidence of a construction loan or ability to secure one b. Possess adequate Builder's Risk, Comprehensive General Liability and Worker's Compensation insurance coverage. c. Posses a Home Owners Warranty insurance or equivalent to perform warranted repairs required by Minnesota State Statute. d. Provide references from: (1) Five customers; (2) Three major suppliers, one being the construction lumber supplier; (3) Building Inspectors from two cities in which the builder has constructed new housing within the past three years. d. Provide information on inventory of homes that builder currently has under construction. 5. Buyer Requirements If Applicable a. Must be pre-approved for permanent financing prior to signing the Purchase and Redevelopment Agreement. Page 3 MOUNDS VIEW HOUSING REPLACEMENT PROGRAM PARTICIPATION AGREEMENT THIS AGREEMENT is made and entered into this day of , 1997 ,by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUNDS VIEW, a body corporate and politic under the laws of the State of Minnesota,having its principal office at 2401 Highway 10, Mounds View,MN 55112 (EDA) and , a Minnesota ,having its principal office at . (Developer) In consideration of the mutual covenants and obligations of the EDA and the Developer,the parties do hereby covenant and agree as follows: 1. The Developer agrees to pay $500 to.the EDA for the rights to participate in redevelopment of a property owned by the EDA in accordance with the guidelines of the Mounds View EDA's Housing Replacement Program. 2. In return for$500,the receipt of which from the Developer is hereby acknowledged by the EDA,the EDA grants to the Developer the exclusive right to enter into a Purchase and Redevelopment Agreement to redevelop the property located at 6991 Pleasant View Drive and legally described as Lot 70, Knollwood Park, Ramsey County, Minnesota in accordance with the Mounds View EDA's Housing Replacement Program. This right will expire on , 19 , unless,prior thereto, the Developer and the EDA have executed a Purchase and Redevelopement Agreement with regard to the property. 3. The EDA agrees to negotiate in good faith with the Developer regarding redevelopment of the property but nothing contained in this Agreement shall require the EDA to enter into a Purchase and Redevelopment Agreement if, at the EDA's sole discretion,it deems such not to be in its best interests. 4. The fee paid by the Developer to the EDA in connection with this Agreement for participation in the EDA's Housing Replacement Program is non-refundable and non- transferable to any other property or site owned by the EDA. DEVELOPER EDA By: By: Its President Its By: Its Executive Director