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HomeMy WebLinkAbout06-20-2007 MOUNDS VIEW PLANNING COMMISSION REGULAR MEETING AGENDA June 20, 2007 -- 7:00 P.M. 1. Call to Order 2. Roll Call 3. Approval of Minutes: A. May 2, 2007 4. Citizens Requests and Comments Relating to Planning and Zoning Issues Not Already Present on the Agenda. (Before speaking, please give your full name and address for the minutes.) 5. Planning Cases A. IU2006-002 & VR2006-005: Request for an Extension of Approval of an Interim Use Permit and a Variance for a Billboard located at 5201 Program Avenue. Applicant: Clear Channel Outdoor Address: 3225 Spring Street NE, Mpls, 55413 6. Other Planning Activity A. Housing Replacement Program Guidelines and Criteria 7. Next Planning Commission Meetings: A. July 11, 2007 (note change to 2nd & 4th Wednesdays for July and August) B. July 25, 2007 8. Adjourn to Agenda Session Agenda Session 1. Review Minutes: a. June 6, 2007 2. Staff Reports a. Upcoming Planning Cases 3. Chairperson and Planning Commissioners’ Reports 4. Meeting Conclusion PROCEEDINGS OF THE MOUNDS VIEW PLANNING COMMISSION CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting June 6, 2007 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 1. Call to Order Chair Stevenson called the meeting to order at 7:00 p.m. June 6, 2007. 2. Roll Call Members Present: Chair Stevenson, Commissioners Cramblit, Gunn, Lang, Miller (left at 7:30), and Walsh-Kaczmarek Absent and Excused: Commissioner Meehlhause Also Present: Community Development Director Ericson and Planning Associate Heller Index to Minutes Page Planning Case CU2007-003: Consideration of a Conditional Use Permit for 2 Merryville Farms to Locate a Seasonal Produce Stand at the Mermaid, 2200 County Road 10. Applicant: Craig Gilb; Address: 4750 25th Street SW, Waverly, MN 55390 Comprehensive Plan Task Force 3 Review Housing Replacement Program Guidelines and Criteria 3 Review Revisions to Zoning Code Relating to the former PF Zoning District 4 3. Approve Minutes A. April 18, 2007 MOTION/SECOND: Commissioner Gunn/Commissioner Cramblit to approve the April 18, 2007 meeting minutes of the regular Planning Commission meeting as slightly amended. Ayes – 6 Nays – 0 Motion carried. DRAFT Mounds View Planning Commission June 6, 2007 Regular Meeting Page 2 ________________________________________________________________________ 4. Citizens Requests and Comments on Items Not on the Agenda None 5. Planning Cases A. CU2007-003: Consideration of a Conditional Use Permit for Merryville Farms to Locate a Seasonal Produce Stand at the Mermaid, 2200 County Road 10. Applicant: Craig Gilb; Address: 4750 25th Street SW, Waverly, MN 55390 Planning Associate Heller reported the applicant is requesting a conditional use permit to operate a summer seasonal produce stand in the parking lot of the Mermaid at 2200 County Road 10. She stated Merryville Farms had previously operated out of the Mounds View Square parking lot since 1996; however, the mall property owners elected not to renew the lease agreement this year. She explained that since the CUP goes with the land and not the user, a new CUP is required for a location at the Mermaid. Planning Associate Heller stated the Mermaid agreed to lease space in its parking lot to Maryville Farms. She indicated Merryville Farms would operate seven days a week from approximately 10:30 a.m. to 6:30 p.m., from late June through early September. She explained the conditional use permit would be in effect indefinitely so long as a letter of permission from the Mermaid and a statement of intent is submitted annually prior to set up by Merryville Farms. Planning Associate Heller stated the stand would be a gazebo-like structure approximately 14 X 9 feet and would include a roof. She explained the stand required no utility hookups and would take up approximately two parking spaces. She stated signage would be attached to the gazebo base and the roof. Planning Associate Heller reported the Maryville Farms produce stand should cause no adverse effects relative to the relationship to the Comprehensive Plan, the geographical area involved is entirely commercial and industrial, and there should be no depreciation to neighboring property values. She stated all zoning and code issues are satisfied with this request. Commissioner Miller questioned the statement in the resolution “lighting for use shall be supplied by existing parking lot standards.” Planning Associate Heller explained the produce stand would use current parking lot lighting. MOTION/SECOND: Commissioner Walsh-Kaczmarek/Commissioner Lang to approve Resolution No. 867-07; a Resolution recommending approval of a conditional use permit to allow a seasonal produce stand at 2200 County Road 10; Planning Case No. 2007-003. Ayes – 6 Nays – 0 Motion carried. Mounds View Planning Commission June 6, 2007 Regular Meeting Page 3 ________________________________________________________________________ 6. Other Planning Activity A. Comprehensive Plan Task Force Planning Associate Heller reported Mounds View must update its Comprehensive Plan by 2008 for submission to the Metropolitan Council. She stated the City Council passed a resolution on May 14, 2007 recommending that up to six residents be appointed to the task force. She reported notices were sent to the local newspapers looking for volunteers. She pointed out the application deadline is June 6, 2007. Planning Associate Heller stated the membership of the task force is proposed to included one representative from: the Planning Commission, Economic Development Commission, Parks and Recreation Commission, City Council, Chamber of Commerce and up to six residents at large. She recommended the Planning Commission assign a primary and an alternate or two designees to alternate. Chair Stevenson asked if the task force reported to the Planning Commission. Planning Associate Heller replied each task force member would report to his or her representative committee. Commissioner Miller asked if the meetings would be televised. Director Ericson replied he anticipated they would be. Chair Stevenson asked for a primary and alternate volunteer. Commissioner Cramblit volunteered to be the primary representative and Commissioner Walsh-Kaczmarek volunteered to be the back up. Planning Associate Heller stated the City Council would officially appoint the members to the task force. She commented the Task Force meetings would probably begin in July. Commissioner Miller questioned whether the representatives would make presentations to the Planning Commission. Planning Associate Heller replied each representative would bring back the information to their commission, and that staff would probably schedule time on each Planning Commission agenda for some comp plan work. B. Review Housing Replacement Program Guidelines and Criteria Community Development Director Ericson presented the summary of the Housing Replacement Program draft guidelines and criteria for additional discussion. He stated the Planning Commission reviewed the guidelines on May 2, 2007 and considered possible revisions to the guidelines and addressed potential criteria for the demolition option. He pointed out that the Mounds View Planning Commission June 6, 2007 Regular Meeting Page 4 ________________________________________________________________________ Commission felt the demolition option should be the focus rather than property acquisition. He reported the City Council concurred with this change. Director Ericson expressed that the intent of the criteria is to encourage the elimination of blighted property and replace it with higher value new construction. He explained that what is before the Planning Commission is an extensive rewrite to the document based on the Planning Commission’s input. He discussed the additions and changes to the guidelines and criteria. He commented the idea is not to issue a blank check to the property owner, but to reimburse them for demolition and tie it to the property. He stated Mounds View residents intending to remain in the community would be given priority. Director Ericson pointed out the Housing Resource Center would administer the program so as not to add additional workload onto City staff. He indicated the City Attorney reviewed the document and made minor changes. Discussion ensued on item 2F. Consensus by the Planning Commission was to strike item 2F at this time and discuss it when all members are present. Consensus was reached for “H” Program Priorities in that the recommended ranking would be changed to the following order: Move # 5 to 3, 1 ok, 2 ok, 3 to 4 and 4 to 5. Commissioner Walsh-Kaczmarek questioned if a “mother-in-law” apartment or small duplex would qualify under the guidelines and criteria. Director Ericson replied it would not meet the criteria of the program guidelines for a single- family residence. He stated the current city code does not allow for “mother-in-law” apartments, but that it could be discussed over time as the Comprehensive Plan is reviewed. Commissioner Walsh-Kaczmarek questioned the use of the term “acquisition” in that the City would not be considering property for acquisition. Director Ericson replied the emphasis would be on demolition assistance. He stated there could be instances when it might be valid for the City to step in and acquire the property. Commissioner Walsh-Kaczmarek asked if a definition of nuisance exists. Director Ericson replied that Chapter 607 of the City Code outlined the nuisance code. Director Ericson stated this would come back to the Planning Commission as a resolution recommending approval. C. Review Revisions to Zoning Code Relating to the former PF Zoning District Director Ericson stated the City Council had a discussion on a telecommunication tower that was proposed to be located in Groveland Park. He explained that in 2003 the City rezoned the City’s Mounds View Planning Commission June 6, 2007 Regular Meeting Page 5 ________________________________________________________________________ parks from a PF to an R-1 designation. He further explained that in so doing, the Council inadvertently disallowed telecommunication towers in parks as the City Code still references PF districts rather than stating parks. Director Ericson reported the City Council reviewed the resolution at its work session on May 7, 2007. He stated the City Council is in favor of the proposed resolution and decided to send this to the Planning Commission for action. Director Ericson explained the recommended changes to the Code to correct the discrepancy. Commissioner Walsh-Kaczmarek reported that a discussion on revenue generating opportunities for the City ensued at a town meeting. She stated that if the City owned the transmission towers, rent could be generated from the users. Director Ericson replied that preference is given to locating towers on the City’s water tower whereby the City retains 100 percent of the revenue. He stated there are no other towers in the City of Mounds View. He stressed that the City would not want to build a tower in anticipation of possible revenue, as this would be an expensive venture. Chair Stevenson stated the City would require the providers build the towers. Commissioner Gunn stated towers built in a City park would also generate revenue. MOTION/SECOND: Commissioner Gunn/Commissioner Cramblit, to approve Resolution 866- 07, a Resolution recommending approval of Amendments to Title 1100, Chapter 1105, 1121 and 1124 of the Mounds View Code by correcting language pertaining to the former PF Zoning District. Ayes – 5 Nays – 0 Motion carried. 7. Next Planning Commission Meetings: A. June 20, 2007 B. July 11, 2007 (July & August Date Changes – 2nd & 4th weeks) 8. Adjournment to Agenda Session There being no further business before the Planning Commission, Chair Stevenson adjourned the meeting at 8:05 p.m. . Respectfully submitted, Mounds View Planning Commission June 6, 2007 Regular Meeting Page 6 ________________________________________________________________________ Jim Director Ericson Community Development Director Transcribed by: Dianna Wise Item No: 6A Meeting Date: June 20, 2007 Type of Business: Discussion City of Mounds View Staff Report To: Mounds View Planning Commission From: Jim Ericson, Community Development Director Item Title/Subject: Review Housing Replacement Program Guidelines and Criteria Introduction: The Mounds View Economic Development Authority (EDA) provides the funding for the City’s Housing Replacement Program. The Mounds View EDA reviewed the program guidelines at their meeting on April 9, 2007 and suggested the Planning Commission also conduct a review and recommend any changes which may be considered appropriate. The Planning Commission reviewed the program guidelines on May 2, 2007, and again on June 6, 2007, and considered possible revisions to the guidelines addressing potential criteria for the demolition option. Also discussed was the shift of focus from acquisition to demolition. The Planning Commission suggested a few additional changes to the guidelines and standards and asked staff to bring back the final version along with a resolution recommending approval to the City Council. Discussion: Based upon the discussion at the Planning Commission’s May 2 meeting, a number of changes were made to the program guidelines. The purpose and objectives remain the same, as do the property criteria. The primary changes relate to the program focus and the funding criteria for demolition assistance. Program Focus. The program guidelines have been revised to switch the primary focus from outright acquisition to the demolition assistance component, shifting the acquisition to a secondary option. Funding Criteria. The Commission agreed that there should be criteria associated with the financing of a demolition. Specific criteria include, blight, zoning and comp plan consistency, a development agreement, demolition contract and funding mechanism, in the form of a five year forgivable loan not to exceed $10,000. The loan and all associated paperwork would be administered by the Housing Resource Center at no additional cost to the City. Requiring that the funding be in the form of a forgivable loan will promote owner-occupation and may dissuade individuals who already have sufficient funds from applying for the assistance. The only change made to these criteria since the June 6th meeting was the addition of the following sentence to the first criteria: “Applicants shall demonstrate proof of construction financing in a form acceptable to the City.” Ultimately, the desired outcomes (to encourage neighborhood revitalization and property reinvestment, eliminate blighted housing and enhance the tax base) will be achieved by adopting these changes. HRP Report June 20, 2007 Page 2 In addition to the HRP policy document, the Housing Design and Site Criteria document was updated and presented to the Planning Commission on June 6th for review. All of the proposed changes were supported. One additional change was suggested regarding the building standards, specifically, Item 2f which had required that “Unit height and mass of the new homes shall be compatible with the scale of the surrounding neighborhood.” A majority of the commissioners in attendance felt that requiring such a standard could result in a new home that does not meet the other minimum expressed building standards. The Planning Commission may want to discuss this point further as the direction was not unanimous. Recommendation: Review the final revised Housing Replacement Program guidelines and the final revised Housing Design and Site Criteria requirements. If the HRP program and site design document revisions satisfy the Commission’s expectations, the Commission may act on Resolution 869-07, a resolution recommending approval of the proposed revisions to the City Council. _____________________ Jim Ericson Community Development Director MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 869-07 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION RECOMMENDING APPROVAL OF CHANGES TO THE HOUSING REPLACEMENT PROGRAM GUIDELINES AND BUILDING STANDARDS WHEREAS, this City of Mounds View created the Housing Replacement Program (HRP) in 1995 in an effort to eliminate blight and enhance the housing stock; and, WHEREAS, the Economic Development Authority (EDA) requested that the Planning Commission review the HRP guidelines and building standards and recommend funding and selection criteria modifications; and, WHEREAS, the Planning Commission reviewed the HRP guidelines and building standards on May 2, June 6, and June 20 and have prepared changes to the guidelines and standards as directed. NOW, THEREFORE, BE IT RESOLVED, the Mounds View Planning Commission, based upon its review of the Housing Replacement Program guidelines and building standards, recommend approval of the revisions attached as Exhibit A NOW THEREFORE, BE IT FINALLY RESOLVED that the Planning Commission directs staff to forward this resolution to the City Council prior to the approval of the minutes. Adopted this 20th day of June, 2007. __________________________ Gary Stevenson, Chairperson ATTEST __________________________ James Ericson Community Development Director (SEAL) City of Mounds View Housing Replacement Program (Revised June 2007) A. Statement of Purpose The Mounds View Economic Development Authority Housing Replacement Program (“Program”) is established to reduce the social costs of blight, improve residential neighborhoods and increase the tax base. B. Program Objectives • Replace deteriorating lower value substandard housing on scattered sites throughout the City with larger, higher value housing designed for owner-occupied families. • Eliminate the blighting influence of substandard housing. • Increase the availability for quality housing for families. C. Program Funding The Program is funded through Tax Increment Financing and administered by the Mounds View Economic Development Authority (the “EDA”). D. Data Privacy All files and information, which identifies property and persons, is private and cannot be released. All information secured through the Program is subject to the Data Privacy Act. E. Program Options The Program offers two options for participation. Option 1 – Demolition Assistance: The primary component of the Program involves providing financial assistance to cover the cost of demolishing substandard or blighted property with an agreement that it will be replaced within a specified time frame with a new home that meets certain minimum design standards and area requirements as articulated in Attachment A, Minimum Standards and Requirements. This option involves the sale of substandard single-family homes and land to the EDA. The EDA’s goal is to offer the property for sale for the redevelopment of new, standard housing. Option 2 - Acquisition: This secondary option involves the purchase of a substandard single-family home and land by the EDA from a willing seller. The EDA will coordinate the site clearance activity and market the site to a developer/owner with an agreement that a new home would be constructed within a specified time frame that meets certain minimum design standards and area requirements as articulated in Attachment A, Minimum Standards and Requirements. This option involves the property owner retaining the property where a substandard single-family house is located, and receiving funding from the EDA for demolition of the house with an agreement that it City of Mounds View Housing Replacement Program Page 2 will be replaced with standard housing meeting certain EDA guidelines and time frame. F. Publicizing the Program; Making Application 1. EDA staff, or their appointees (“Program Staff”), will solicit participants by direct mail, advertisement, or other method. The number of applications accepted for participation in the Program will be determined by the availability of personnel and financial resources. 2. Participation in the Program must be on a is voluntary basis. Interested participants must be able to furnish proof of ownership of or interest in the property, and are required to submit a letter of application respond to the EDA solicitation in writing, with a letter indicating: a. b. For Option 1 2 (Funding for Demolition): (1) An interest in obtaining funding for demolition from the EDA to replace existing housing with new standard housing that meets the meeting EDA expressed minimum guidelines of the EDA. (2) Consent Willingness to hold the EDA harmless for demolition activities. (3) Consent Willingness to enter into a legal development agreement with the EDA regarding redevelopment of the property. (4) Ability to produce proof of construction financing. b. a. For Option 2 1: (Sale of Property to EDA): (1) An interest in selling their property to the EDA. (2) A willingness to waive relocation benefits. (3) Statement affirming that the property is either vacant or owner-occupied of tenant interest in the property at the time of offer. (4) Consent to the release of relevant information to potential developers and end buyers. 3. Individuals who have expressed indicated an interest in participating will shall be contacted by Program Staff to inform them of the estimated project time line and to obtain complete information on the items noted under F.2. above. G. Property Eligibility Criteria Program Staff will shall evaluate each property for which an application is received to determine Program its eligibility for the Program based on the criteria in this section. Program Staff will shall prepare property fact sheets for each property for which an application has been received owners have expressed an interest in participating in the Program, and will shall conduct an interior and exterior drive by inspection of each property. Properties will be evaluated based on the criteria outlined below. To be eligible for participation, the house must be previously identified by the EDA as a potential acquisition (Option #2 #1 only) and the property must have one of the characteristics noted in 1, 2, 3, 4 or 5 below: 1. Substandard as to condition, code compliance property value, size or usage. 2. Obsolete and having a faulty design for block and area in which it is located. 3. Deterioration which has caused blight to other adjoining properties. City of Mounds View Housing Replacement Program Page 3 4. Detrimental to the safety or health of abutting properties in the block. 5. Foreclosed upon or notice of foreclosure has been served on occupant. If it is determined that the property is eligible for participation based on the condition of the house as expressed in characteristics 1-5 above, it must also meet the following criteria as outlined in 6 5-8 below. 5. A geographic mix of properties is achieved. 6. The site can be developed with a single family home within city code requirements, including zoning and conformance with the Comprehensive Plan. The property may be considered if a variance can be obtained (see Section I.2.). 7. The property must be owner-occupied or vacant before the owner or owner’s designee makes application to the Program. Non-homesteaded vacant property will be considered for demolition assistance or acquisition. Tenant-occupied properties will not be considered for participation purchase or funding for demolition by the EDA on a case-by-case basis. 8. Prior to approval by the EDA for participation in the Program, properties over 50 years old must be evaluated for historical significance. This will be accomplished by forwarding general property information and a property photo to the Minnesota Historical Society for review. The EDA will not enter into a purchase agreement or award funding for demolition of on a property which qualifies for the National Registry of Historical Structures. H. Program Priorities If more than one application for acquisition or demolition funding or acquisition has been received during a given month, the Program Staff shall rank the applications to determine the best candidates for Program participation based on the information and criteria noted below and in the following order: 1. Properties that can meet EDA established guidelines and time frame will be considered first. 2. Properties considered the most substandard with the lowest values and poorest visible conditions will be considered first. 3. Requests submitted by Mounds View residents will be considered first. 4. Applicants who have expressed a funding “need” shall be considered first over applicants with little to no “need”. 5. 3. Properties should be equally distributed by location and value throughout the City when possible, and provide a viable financial mix of properties to support Program financial requirements. I. Option 1: Funding of Demolition: City of Mounds View Housing Replacement Program Page 4 1. Blight Qualification: Properties being considered for demolition funding must meet blight qualifications as outlined in Section G. Applicants shall demonstrate proof of construction financing in a form acceptable to the City. 2. Need for Variances: If a variance is required to redevelop the property, the homeowner must obtain the variance prior to the approval of demolition funds. If a variance is not granted, demolition funds shall not be awarded. 3. Comprehensive Plan/Zoning: The Comprehensive Plan designation and the zoning on the property must allow for its redevelopment as a single-family residence. 4. Development Agreement: The applicant must enter into a Demolition and Redevelopment Agreement with the EDA which will stipulate housing design and site development features consistent with the guidelines attached in Exhibit A (Housing Design and Site Criteria) and identify the time frame for completion. The development agreement will include an estimate of the minimum value of the home to be constructed. 5. Demolition Contract: The applicant must obtain three estimates for demolition from qualified demolition contractors which will assist in determining the amount of demolition funds to award for the project. The total amount of assistance provided shall not exceed the lowest responsible estimate received not to exceed $10,000. The selected demolition contractor must be able to meet project deadlines as outlined by City Staff. The demolition contractor will be required to obtain all necessary City permits, pay applicable fees and provide for appropriate handling and abatement of any hazardous materials encountered. Overall demolition supervision will be provided by a designated Program Staff in conjunction with the interested participant. 6. Funding Mechanism: The assistance will be provided to the applicant upon conclusion of the demolition activity and satisfactory final inspection of the demolition permit, in the form of a five year forgivable interest-free loan, with a 20% incremental reduction in principal upon each successive year the participant lives in the new home, with complete forgiveness after the fifth year in the home. The annual reduction in principal is tied to the date of completion/owner-occupancy of the new home and not to the loan closing. If the participant sells or rents the home to a third party prior to the fifth year, the following loan repayment schedule shall apply: If the home is sold before the The amount to be repaid upon closing shall be End of the first year, 100% of the loan amount End of the second year, 80% of the loan amount End of the third year, 60% of the loan amount End of the fourth year, 40% of the loan amount End of the fifth year, 20% of the loan amount The loan shall be administered by the Housing Resource Center, NorthMetro Office, a division of the Greater Metropolitan Housing Corporation (GMHC). The Housing Resource Center or GMHC shall prepare lien release and satisfaction documents as City of Mounds View Housing Replacement Program Page 5 needed. J. I. Option 1 2: Acquisition of Property by EDA 1. Blight Qualification: Once an offering letter is received from the interested participant, Program Staff will shall arrange, by appointment, an inspection of the interior of the home to establish blight qualification as outlined in Section G. The following information will also be obtained during the inspection: In addition, Program Staff will make a determination as to the potential presence of hazardous materials on the property and will obtain a. Demolition information for estimating demolition credit to builder. b. A determination as to the existence of any hazardous materials on the property. This includes: (1) a visual inspection (2) a statement from the interested participant regarding any knowledge of the property’s use for production, storage, deposit, or disposal of any toxic or hazardous wastes or substances or asbestos products whatsoever, during the time the interested participant owned the property and prior to the date of interested participant purchased property. Properties with recognized environmental conditions environmental problems or hazards may be considered if the purchase price is reduced sufficiently to cover increased site clearance and preparation costs. If a property satisfies meets the blight conditions as outlined herein test, acquisition procedures can continue. If the blight test cannot be met, the interested participant will be notified in writing indicating the reasons why the property cannot be considered for acquisition. 2. Need for Variances: If a variance is required to redevelop the property, the EDA may, at its sole discretion, choose not to acquire the property. This determination will be made based on the project time lines, available resources, and availability of other properties which do not require a variance. If the EDA chooses to pursue a variance to enable the acquisition of the property, an application shall be filed following the usual procedures. If a variance is not approved, the property cannot be considered for acquisition. 3. Appraisal: Determining Purchase Price: If the EDA chooses to continue with the acquisition, a fee appraisal shall be ordered at the EDA’s expense and the result shall be used in determining the amount of the purchase price to offer to the interested participant. The independent fee appraiser shall be carefully instructed to document in specific terms the conditions of the property including details regarding structural condition and floor plan. The acceptance of these conditions in the market place should be discussed in the report. The appraiser’s value judgment should reflect these conditions. A negotiated price considerably below the assessor’s market value may be accepted without an appraisal on a case by case basis if the interested participant concurs. 4. Purchase Agreement: Closing Procedures City of Mounds View Housing Replacement Program Page 6 a. When both parties have verbally agreed upon a purchase price, Program Staff and Legal Counsel shall prepare a Purchase Agreement to be presented to the interested participant. The purchase price contained in the Purchase Agreement shall be within the range authorized by the EDA. The purchase agreement shall be contingent on the completion of an environmental evaluation suggesting no evidence of hazardous waste on the property. The interested participant shall receive a copy of the purchase agreement including the following information: (1) The purchase price (2) How the purchase price was determined (3) The amount of earnest money (4) A date to sign the Purchase Agreement (5) A closing date b. To enable the acquisition process to continue, the interested participant must execute the purchase agreement and a “waiver of relocation benefits” form. The waiver of relocation must be clearly explained by City staff to the interested participant at this time, if not explained previously. c. The EDA Executive Director and President shall be signatories on the purchase agreement. d. The acquisition and disposition of the property must be in conformance with the Mounds View Comprehensive Plan. e. Following EDA authorization of these agreements, interested participants and/or Program Staff will be requested to assemble and supply all required documentation prior to closing as outlined below. (1) Title documentation acceptable to City staff An Abstract or RPA (as applicable) must be furnished to the Program Staff to facilitate the rendering of a title opinion. The interested participant will bear the cost of updating the Abstract or RPA as part of the closing procedures. (2) EDA Legal Counsel shall review the submitted title documentation will be responsible for having the Abstract or RPA updated and will provide Program Staff and interested participant with a written opinion of title. EDA Legal Counsel will also secure title insurance. (3) If the title opinion indicates the property has marketable title, purchase procedures may will continue. If the title opinion does not indicate marketable title, the EDA, at its sole discretion, may choose not to acquire the property. The EDA may determine remedies and evaluate their resolution, including the additional time and expense to provide marketable title. It shall be the seller’s responsibility The EDA may City of Mounds View Housing Replacement Program Page 7 proceed to correct title deficiencies to effectuate the sale continue the purchase of the property dependant upon the additional time and expense incurred. (4) Simultaneously with the title opinion, an environmental evaluation will may be obtained from an independent environmental engineering firm or other firm performing such service. If environmental hazards are found on the site, the EDA may choose not to acquire the property. f. The seller must be prepared to vacate the property on the day of closing unless other arrangements have been made with Program Staff. g. If the interested participant decides not to sell the property after execution of the purchase agreement then the interested participant must provide the EDA with the following: (1) A letter expressing their desire not to proceed with selling the property (2) The full amount of earnest money received upon execution of the purchase agreement, and (3) Full payment of legal and consulting fees incurred by the EDA after the execution of the purchase agreement in preparation for the closing of the property. 5. Selection of Demolition Contractor and Procedures: After the property closing, Program Staff will select a demolition contractor by sending Requests for Proposals (RFP) to at least three demolition contractors. The proposal bid received with the lowest price will have priority. The demolition contractor must be able to meet project deadline as outlined in the RFP prior to awarding a contract. The demolition contractor will be required to obtain all necessary City permits and pay applicable fees. Overall a designated A Program Staff person will provide demolition supervision. 6. Marketing: Program Staff will advertise the sale of the property by contacting the St. Paul Realtors Association, area residential developers, interested buyers and by posting signs on the property. 7. Selection of Developer: Program Staff will negotiate the purchase of the property with by an acceptable buyer/developer or buyer/builder team. If a buyer/developer or buyer/builder team cannot be obtained, the EDA may consider selling property to a developer or builder for sale to the open market after completion. As part of the sale of the property, the buyer/developer team purchasing party must sign a purchase and redevelopment agreement with the EDA, which will stipulate minimum standards, housing design and time frame for completion. (Refer to Exhibit A, Housing Design and Site Criteria guidelines, attached.) 8. Development Agreement: Closing Procedures City of Mounds View Housing Replacement Program Page 8 a. When a redevelopment proposal submitted by a buyer/developer or buyer/builder team has been approved by the EDA, Program Staff and Legal Counsel will shall prepare a Purchase and Redevelopment Agreement. The selected developer will shall receive a copy of the Purchase and Redevelopment Agreement which will include, but not be limited to, the following information: (1) Construction of minimum improvements (2) Estimated market value of the property and improvements (3) Purchase price (4) Completion date (5) Financial guarantee submitted by the developer with a minimum amount equal to100% of the minimum improvement value (6) Revesting of Title. Subject to unavoidable delays, if the Developer fails to carry out its obligations with respect to the construction of the Minimum Improvements, the Authority will have the right to re-enter and take possession of the property. The Authority at its option may declare a termination in favor of the Authority of the title and that the title and all rights and interests of the Developer will shall revert to the Authority. J. Option 2: Funding of Demolition 1. Blight Qualification: Properties being considered for demolition funding must meet blight qualifications as outlined in Section G. and Section I.1. 2. Need for Variances: If a variance is required to redevelop the property, the homeowner must obtain the variance prior to the award of demolition funds. If a variance is not granted, demolition funds shall not be awarded. 3. Comprehensive Plan/Zoning: The Comprehensive Plan designation and the zoning on the property must allow for its redevelopment by construction of a replacement single-family residence. 4. Development Agreement: The interested participant must enter into a Development Agreement with the EDA which will stipulate housing design and site development criteria and time frame for completion. The development agreement will include estimate of new taxes generated based on the construction of replacement cost. 5. Demolition Contract: The interested participant must obtain three estimates for demolition which will assist in determining the amount of demolition funds to award for the project. The chosen demolition contractor must be able to meet project deadlines as outlined by Program Staff. The demolition contractor will be required to obtain all necessary City permits and pay applicable fees. Overall demolition supervision will be provided by a City of Mounds View Housing Replacement Program Page 9 designated Program Staff in conjunction with the interested participant. Economic Development Authority By: ______________________________ EDA President By: ______________________________ EDA Executive Director Revised: June 2007 \\trout\CommDev\Users\JIME\Comm Dev Stuff\Housing\Housing Replacement Program\HRP Policies\HRP Policy - 2007 Revisions.doc Page A-1 Housing Replacement Program (June 2007 revisions) HOUSING DESIGN AND SITE CRITERIA 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 The program promotes these goals through two different mechanisms—providing demolition assistance to remove sub-standard, blighted and distressed properties, and acquisition of purchases substandard, blighted or distressed homes. In either case, the subject property is demolished and a new, larger, higher-value home is constructed in its place. demolishes the home and sells the lot to a prospective buyers for redevelopment. This The program will assist in eliminating the blighting influence of substandard housing and increase increasing the availability of quality housing for families. 1. General a. b. The developer must enter into a Contract for Private Development with the EDA which will specify design, set site criteria and establish value based upon new home construction in the surrounding area. b. a. The builder developer must be a licensed contractor. All sub-contractors must also be licensed. Homeowner sweat-equity labor on interior finishes may be permitted. 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 a licensed Architect or Architectural Designer with a minimum two year technical degree. Housing design is a critical concern. b. A minimum of three finished bedrooms is required. c. Two full bathrooms are required preferred. A home design with 1½ baths will be considered. EXHIBIT A Page A-2 d. A minimum two-car attached garage is required. Side-loaded or rear-loaded garages are preferred. If front-loaded, the garage shall not be the dominant feature of the building facade. e. Exterior materials (siding, doors and windows) should be low maintenance. Brick, stone, aluminum and vinyl are preferred. Natural cedar lap is acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are not acceptable. f. Unit height and mass of the new homes shall be compatible with the scale of the surrounding neighborhood. f g. Plans must present a balanced distribution of wall and window areas from all views. A variety of exterior architectural features will be desired. g 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 must 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 landscape plan must be reviewed by the City Forester. b. Existing trees must 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 must 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 must shall be screened from street view; locations must be specified on plans. f. The neighboring property and adjacent public streets must shall be kept free of construction debris at all times. The construction site must shall be managed so not to become a nuisance. Under no circumstance during the construction period may shall construction workers, construction equipment or construction materials enter, disturb, or damage neighboring properties. Page A-3 4. Builder Requirements a. Demonstrate financial capability by providing all of the following: (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. Possess a Home Owners Warranty insurance or equivalent to perform warranted repairs required by Minnesota State Statute. d. Provide references from all of the following: (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. e. 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 allow signing of Contract for Private Development.