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O�DRSSY bf1RSEY & WHITNEY LLP MEMORANDUM TO: Mayor and Members of the City Council Michael Mornson, City Manager FROM: Jerome P. Gilligan DATE: October 3, 2006 RE: Amendment of City Code to With Respect to Closure of Manufactured Home parks Minnesota Statutes, Section 327C.095, sets forth requirements to be followed by the owner of a manufactured home park to close all or a portion of the park or to convert it to another use. This statute requires that the Planning Commission review the closure statement required to be given by the owner to the park residents, and the City Council to hold a public hearing to review the closure statement and any impact that the park closing may have on displaced residents and the park owner. Under the statute the City may require that reasonable relocation costs be paid to displaced residents. It is being proposed that the City Council adopt an ordinance pursuant to the authority contained in Minnesota Statutes, Section 327C.095, which provides for payment by the owner to the resident of relocation costs for relocating a manufactured home to a manufactured home park located within a 25 mile radius, and for alternate compensation if the resident cannot relocate the manufactured home to a park within 25 miles. Such alternate compensation will be either the purchase by the owner of the home at its estimated market value, or payment by the owner to the resident of -the average of the relocation costs awarded to other residents of the park. The resident has the option to choose which alternate compensation it is to receive. Providing for alternate compensation allows a displaced resident who is unable to relocate or doesn't want to relocate, the ability to sell his manufactured home at its appraised value. The proposed ordinance provides for certain remedies if the owner fails to comply with the requirements of the ordinance, including withholding building permits for the reuse of the park if the required relocation costs and alternate compensation is not paid by the owner, and provides that any land use approvals by the City in connection with the reuse of the park shall be conditioned on the compliance with the ordinance requirements. if the City does not adopt this ordinance, a resident would only be entitled to relocation costs under the statute if the resident's manufactured home cannot be relocated to another park within a 25 -mile radius. The adoption of the ordinance allows a resident to also receive relocation costs if the home is relocated within a 25 -mile radius of the park, and the option to elect to have the home purchased at its estimated market value if the resident is unable to relocate the home within a 25 -mile radius of the closed park. The City is authorized to require such payments under the provisions of Minnesota Statutes, Section 327C.095. DORSEY & WHITNEY LLP 15