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022800 EDA CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North February 28, 2000 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Pat LaVine Norby Commissioner Mark Thompson 1. Call to Order 2. Roll Call 3. Approval of Regular Meeting Minutes of February 14, 2000 4. Motion Authorizing Staff to Obtain Appraisal of Eldorado Courts Apartments at 7701/7721/7741/7761 62nd Avenue North 5. Discussion Regarding Concept Redevelopment/Rehabilitation Project at 7610 Bass Lake Road 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 Approved EDA Minutes Regular Meeting February 14, 2000 City Hall CALL TO ORDER ROLLCALL APPROVE MINUTES IMP. PROJECT 665 Item 4 MOTION Item 4 New Hope EDA Page 1 President Pro tem Collier called the meeting of the Economic Development Authority to order at 7:43 p.m. Present: Sharon Cassen, Commissioner Don Collier, President Pro tem Mark Thompson, Commissioner Absent: W. Peter Enck, President Pat LaVine Norby, Commissioner Motion was made by Commissioner Thompson, seconded by Commissioner Cassen, to approve the Regular Meeting Minutes of January 10, 2000. All present voted in favor. Motion carried. President Pro tem Collier introduced for discussion Item 4,. Motion Approving Proposal in the Amount of $12,300 with Northern Environmental to Prepare Revised Response Action Plan and DTED Contamination Cleanup Grant for 7500- 7528 42Nd Avenue North (Improvement Project No. 665). Mr. Kirk McDonald, Director of Community Development, reported that the City acquired 7500 42nd Avenue in August of 1999 and demolition was completed in December. Staff recommends expediting the soil contamination clean-up efforts in order to facilitate redevelopment. He stated the cost of hiring Northern Environmental to prepare a revised action plan and assist with the grant preparation will cost $12,300. Presently the groundwater contaminants are being removed through the use of above-ground site equipment which will take 20-30 years for completion. The recommended alternate action plan is to excavate the site removing the contaminants and polluted soils and then re-filling the site for redevelopment. Mr. Daniel McDonald introduced himself along with his colleagues who are community health nurses studying this project. He questioned the nature of the contaminants and whether there would be any long-term ramifications involved with the clean-up process. Mr. Kirk McDonald, Director of Community Development, stated the main contaminant is trichloroethylene, and the City is trying to remove all contaminants through this soil clean-up process. He noted Northern Environmental's research will address long-term health issues. The group was invited to review the existing reports on file with the City. Motion was made by Commissioner Thompson, seconded by Commissioner Cassen, to approve proposal in the amount of $12,300 with Northern Environmental to prepare revised response action plan and DTED Contamination Cleanup Grant for 7500-7528 42na Avenue North (Improvement Project No. 665). All present voted in favor. Motion carried. February 14, 2000 IMP. PROJECT 669 Item 5 MOTION Item 5 IMP. PROJECT 677 Item 6 MOTION Item 6 'President Pro tem Collier introduced for discussion Item 5, Motion Authorizing Staff to Prepare Purchase Agreement for Acquisition of Commercial Property at 5550 Winnetka Avenue North in the Amount of $308,000 (Improvement Project No. 669). Mr. Kirk McDonald, Director of Community Development, stated after much negotiation, the owner is willing to sell the property for $308,000. He explained how they arrived at this price and noted the advantage of purchasing the property at this time is that it is vacant and there will be no relocation costs. Mr. Steve Sondrall, City Attorney, interjected that normal relocation costs would be $20,000 at a minimum. The EDA discussed the importance of obtaining this key piece of property and agreed to its purchase. Motion was made by Commissioner Thompson, seconded by Commissioner Cassen, authorizing staff to prepare purchase agreement for acquisition of commercial property at 5550 Winnetka Avenue North in the amount of $308,000 (Improvement Project No. 669). All present voted in favor. Motion carried. President Pro tem Collier introduced for discussion Item 6, Motion Authorizing Staff to Obtain Appraisal of 8113 Bass Lake Road (Improvement Project No. 677). Mr. Kirk McDonald, Director of Community Development, reported that the property owner of the four-plex located at 8113 Bass Lake Road is interested in selling the property for $185,000. He stated the comprehensive plan update identifies this property as a potential redevelopment site. The building was constructed in 1958 and has a market value of $136,000. He also reported that the four-plex building located adjacent to this building (8109 Bass Lake Road) is also identified in the comprehensive plan for either redevelopment or substantial rehabilitation. The estimated cost of an appraisal is $450 and once completed, staff would bring the completed appraisal back to the EDA for direction. Commissioner Thompson asked if the City would consider redevelopment of one building only. Mr. McDonald replied that if purchased, the City would demolish the building and work towards acquiring the properties on either side of the building. Commissioner Cassen noted there are no garages, the properties are in need of updating, and an asking price of $185,000 is excessive. President Pro tem Collier inquired of the City's ability to ensure that the buildings are brought up to code and updated if they continue to be privately owned. Mr. Donahue, City Manager, reported that the City would work with the property owner to explore various financing programs available through Hennepin County. Motion was made by Commissioner Cassen, seconded by Commissioner Thompson, to authorize staff to obtain appraisal of 8113 Bass Lake Road (Improvement Project No. 677). All present voted in favor. Motion carried. New Hope EDA Page 2 February 14, 2000 ADJOURNMENT Motion was made by Commissioner Cassen, seconded by Commissioner Thompson, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 8:15 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 3 February l4,2000 I I 9UEST Originating Department Approved for Agenda Agenda Sect/on Community Development ' Item No. By:. 2-28-00 BY'irk McDonald ' / MOTION AUTHORIZING STAFF TO OBTAIN APPRAISAL OF ELDORADO COURTS APARTMENTS AT 7701/7721/7741/7761 62ND AVENUE NORTH REQUESTED ACTION Staff is requesting that the EDA authorize an appraisal of the Eldorado Apartments located at 7701/ 7721/7741/7761 62nd Avenue North. Estimated cost of the apPraisal for the four-unit complex by BCL Appraisals is $3,200. POLICY/PAST PRACTIC~E In the past, the EDA has authorized the appraisal of multi-family apartment complexes that the City may have an interest in redeveloping. In the last several years, appraisals have been authorized/completed on three of the fourplexes located just east of this site (which the City acquired and demolished) and on Regent Apartments. The Eldorado Apartments are located in an area designated for future redevelopment in the Comprehensive Plan. BACKGROUND A realtor has notified City staff that the Eldorado Apartments are for sale and in the process of being marketed and has inquired if the City has an interest in the property. Staff indicated to the realtor that this information would be presented to the EDA for discussion and direction. If the EDA has interest in potentially acquiring the property for redevelopment purposes, staff recommends that the first step would be to obtain an appraisal of the property. Eldorado Apartments consist of four seven-unit, split-entry, two-level brick buildings located at 7701, 7721, 7741, and 7761 62nd Avenue North. The property is located in an R-3 Medium Density Residential Zoning District on the south side of 62nd Avenue. The City has previously acquired three fourplexes east of this site and demolished the buildings for redevelopment. One fourplex east of the site remains to be vurchased and there have been some discussions in the past with the owner. A six-unit townhome building is located west of these apartments at the corner of 62°d and Sumter. The combination of this site with the City's property would create a much larger and marketable parcel for redevelopment. RFA-O01 Request for Action Page 2 2-28-00 The four buildings were constructed in 1962 and are in average condition, according to the Building Official. No garages are located on the site. Each of the four properties measures 92.5 x 167 feet and contains approximately 15,500 square feet. In total the parcels contain about 62,000 square feet. The estimated market value of the property for taxes payable in 2000 is $140,000 per property ($28,000 land/S112,000 building) or a total of $560,000. The realtor has indicated the current asking price is $880,000. The Comprehensive Plan states that "the medium density housing located along 62nd Avenue, between Winnetka Avenue and West Broadway, has been identified as a redevelopment target area. The poor building and site conditions associated with this medium density use is a negative influence on the Iow density neighborhood to the south. Aggressive area redevelopment is suggested. Due to the limited site and configuration of the site, it is recommended that a reduction in density from its present condition be made. Medium density residential land uses consisting of twin homes or townhomes with attached garages would be an appropriate option." A map has been prepared by staff identifying development activities in the 62"d Avenue/West Broadway area over the past seven to eight years. The realtor marketing the site has also prepared background material on this property and may be in attendance at the meeting. If the EDA authorizes the appraisal, staff would have the appraisal completed and then present it to the Council for further direction and possible negotiation with the owner. FUNDING Estimated cost of the appraisal of the site is $3,200 by BCL Appraisals and would be paid for with TIF funds. Acquisition could also be initially funded with TIF and recouped through the re-sale of the property. ATTACHMENTS · Site Maps · Letter to Realtor/Map of Area Development Improvements · Comprehensive Plan Information and Maps · Realtor Information I IXi..' .................................... AVENUE x 87/.. NORTH · : : ,,:a,= 871 ,2 x i° t-q \\ O E~?t ,0 4401 Xylon Avenue North New Hope, Minnesota 55428-4898 www. ci. new-hope, mn.us City Hall: 612-531-5100 City Hafl Fax: Police: 612-531-5170 Police Fax: Public Works: 612-533-4823 Public Works Fax: TDD: 612-531-5109 612-531-5136 612-531-5174 612-533- 7650 February 17, 2000 Mr. Joel Groethe Colliers Towle Real Estate 330 2nd Avenue South, Suite 800 Minneapolis, MN 55401 Subject: 62nd and West Broadway area of New Hope, Minnesota Dear Mr. Groethe: Per our conversation, enclosed please find information regarding city improvements in the area of 62"d and West Broadway that were made within the last six years, as well as the demographics you requested. You should be able to use this information for the sale of the apartments. At the February 28 City Council meeting, I intend to make the Council aware of the fact that the Eldorado Apartments are on the market. At that time, I will find out if the Council is interested in the property and whether or not to proceed with an appraisal. I will follow-up with you after that meeting. If you have any questions, please contact me at 612-531-5119. Sincerely, Kirk McDonald Director of Community Development Enclosures: Map Demographics CC: Dan Donahue, City Manager Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatro, General Inspector Susan Henry, Community Development Specialist Valerie Leone, City Clerk Family Styled City ~ For Family Living S'~ng park ameni~ Condition of'medium and high densi~ residential area / redevelopment si'~es Noise walt consideratio, Industdal Issues 1. In ~1~ ~ansi~ 2. O~ ~e 4. ~m~bJl~ [~ue / 5. Noise p~blems ~ and ~ne i~on facilities High s~nool co~p~bil~ issues Tr~c, ~respass, littering, loitering, mc. Potential ~ (high densh~) Drainage issuec Demolish old ({re Noise wall consideration improvement Commercial 155UF..~ IDENTIFICATION 19 ~ ~medium and high densii,/resider~al area / redevel®ment sJi'es ofl~ss Lake Ro~d and We~ B~ond slreeisc~pe (mutti-juri~i~onoi s~reet) Ciub House ~medium and high residem~al area / redevelopmem sites redevelopmeqt sires I~ss Lake intersemon r~alignme~ -- Hedium aensity reaeVelopment (Pond Place cievelopment opportun~es) edevelopment site (demolish existing buiJding) expansion / cooperative rearrangement w~th C~ Sims Park poridng and tumonound ~evelopmen~ d Avenue, Xylon and 45th densh'y redevelopment opportunity ('Twin Homes) Medium density housing condhiorm---.. ~rong pork amenilies -- Noise wall consideration -- __ In place industrial issues rage issues Drainagl l Commercial n Medium dens~ redevelopment oppo~n~ Ci~ of New Hope 10LDEN Commerdd re~ei Intersec~on improvement at'back oF center outdoor storage issue [age issues ~egional I~ station odor Overutilization of site SCALE IN FEET Comprehensive Plan Updat,; 23 Planning Tactics PARK RESIDENTIAL REDEVELOPMENT AND MAINTENANCE TARGET AREAS · Maintenance Redevelopment - Medium & High Density I I Redevelopment - Low Density June 1998 B~a~se~ Map: 0 1000 2000 3000 B-._~roo Rosen. e .~ 30%0 ( Anderhk &A~ocmates SCALE IN FEET 'ty of New Hope GOLDEN VALLEY Comprehensive Plan Update 3 5 Development Frame work Community Perspectives Small site, poor site design. Building vacancies. Land use compatibility issues. Multiple family land use along 62nd Avenue presents redevelopment due to the following conditions: Poor building conditions and site maintenance. No amenities, no garages. Outdoor storage problems. an opportunity for City of New Hope Comprehensive Plan Update 27 Planning Tactics Plannin~ District~ PLANNING DISTRICT 2 District 2 is located in the northeast portion of New Hope. It is bordered by Winnetka Avenue to the west, Brooklyn Park to the north, and Crystal to the south and east. Land uses within this area include single family residential, medium density residential, high density residential and commercial. The following land use :recommendations are offered for District 2. Planning District 2 contains older, lower value Single family neighborhoods. This district needs specific attention to maintain and enhance the condition and value of this Iow density housing stock: The City will continue to enforce its Point of Sale Housing Maintenance Code, however, more aggressive scattered site redevelopment is recommended within District 2, as well as larger scale area redevelopment for deteriorated or under-utilized sites. 2. The Iow density residential area located along 62nd, between West Broadway and Louisiana Avenue, consists of large deep lots with small single family homes. This site presents an opportunity to pursue area redevelopment to introduce more contemporary medium densitY housing options into District 2. ~~'he medium density housing located along 62nd Avenue, between Winnetka Avenue and West Broadway, has been identified as a redevelopment target area. The poor building and site conditions associated with this medium density use is a negative influence on the Iow density neighborhood to the south. Aggressive area redevelopment is suggested. Due to the limited site and configuration of the site, it is recommended that a reduction in density from its present condition be made. Medium density residential land uses consisting of twin homes or townhomes with attached garages would be an appropriate option. City of New Hope 83 Comprehensive Plan Update Development Framework FOR SALE ELDORADO COURTS APARTMENTS 7701 - 7761 62na Avenue North New Hope, MN Presented By: Joel Groethe Sales Associate (612)347-9358 CONFIDENTIAL This package is a confidential document. Duplication or distribution of this package or any information contained herein without the express permission of Colliers Towle Rea! Estate or the Owner is prohibited. NOTICE: "The information in this package and any supplemental information subsequently provided has been given to Colliers Towle Real Estate by the property's owner or obtained from sources we deem reliable. While we have no reason to doubt the accuracy of the information profiling the property, including income and expense figures, we do not guarantee it and it is your responsibility to independently confirm its accuracy to your satisfaction. Vacancy factors and other assumptions used in the package are arbitrarily selected for example purposes only, and do not represent the actual performance of the property. Any indicated value of this property is based upon assumptions, projections and estimates, which are variable by nature and subject to changing economic conditions. The value of this property to you will also depend on tax and other factors which should be evaluated by your accounting and legal advisors." TABLE OF CONTENTS PHOTOGRAPH / MAPS STRENGTHS / WEAKNESS PROPERTY SUMMARY OPERATING STATEMENT RENT ROLL REDEVELOPMENT DEMOGRAPHICS Colliers Towle Real Estate Company * 330 Second Avenue South * Minneapol/s, Minnesota 55401 Phone: 612/341-4444 · Fax: 612/347-9389 www.collierstowle.com ELDORADO COURTS APARTMENTS 7701 - 7761 62nd Avenue North New Hope, Minnesota WHAT ARE OF THE THE UNIQUE ASPECTS PROPERTY? STRENGTHS: 2. 3. 4. 5. 6. 7. 8. Located in a redeveloping community Building condition Building construction 100% occupied New roof Immediate access to 694 and Highway 81 Off street parking Washer and dryer in each building WEAKNESSES: 1. Size of units 2. Low rents PRICE: Proper .ty Summary for ELDORADO COURTS, NEW HOPE $880,000.00 TERMS: Cash/Contract for Deed GROSS INCOME: N.O.I. CAP RATE: PRICE PER UNIT: BREAKDOWN: CONTRUCTION: $139,860.00 $79,012.50 9% $31,428.50 4- Buildings, 28-one bedrooms Brick YEAR BUILT: 1962 TAXES: $18,856.00 (non-homestead) TAX VALUE: $560,000.00 LOCATION: PARKING: West Broadway and 62"d Ave N Off-street CAPITOL IMPROVEMENTS: LAUNDRY: New Roof Owned ALL INFORMATION FURNL~HED TO COLLIEP~ TO~VLE REAL ESTATE IS FI~OM SOURCF~ JUDGED TO BE RELIABLE. WE CANNOT BE RESPONSIBLF~ INCOME." PROFORMA FOR ELDORADO COURTS, NEW HOPE,, MN Rent Income (Scheduled) $:L39,860.00 Vacancy (3%) $4, ! 95.80 Effective Gross Rentallncome $! 35,664.20 Laundry Income $2,500.00 Garage Income $0.00 Effective Gross Operating Income $!38,!64.20 EXPENSES: Water/Sewer $5,438.00 city Gas $6,889.00 city NSP $ ! ,455.00 city Rubbish $2,287.00 owner Ads/Licenses/Permits $500.00 est. Insurance $ ! ,400.00 owner Repair and Maintenance/Supplies $9,67 ! .49 7% Lawn and Snow $! ,287.00 ] 999 Caretaker $4,020.00 7;335 credi! Taxes $ ! 8,856.00 2000 Management $6,908.2 ! 5 % Total Expenses $58,7! ! .70 Net Operating Income (N.O.I.) $79,452.50 ALL INFORMATION FURNISHED TO COLLIERS TO~VLE REAL ESTATE IS FROM SOURCES JUDGED TO BE RELL~BLE. ~ CANNOT BE RESPONSIBLE, 7701 2. 3. 4. 5. 6. 7. 7721 1. 2. 3. 4. 5. 6. 7. 7741 1. 2. 3. 4. 5. 6. 7. 7761 1. 2. 3. 4. 5. 6. 7. Move-In 11/94 11/99 12/98 9/97 1/00 1975 9/95 10/15/98 3/97 12/98 8/95 Fall 97 2/98 2/93 4/92 12/99 7/96 6/99 4/99 11/98 12/84 6/98 6/97 2/97 6/99 12/99 2/96 4/15/99 RENT ROLL FOR ELDORADO COURTS Deposit Lease End Current Rent 300 MTM $425.00 399 4/30/00 $399.00 405 5/31/00 $405.00 350 MTM $425.00 405 6/30/00 $405.00 175 7/31/00 $415.00 300 MTM $425.00 375 0 395 300 0 360 350 7/31/00 $415.00 MTM $425.00 5/31/00 $395.00 MTM $425.00 MTM $425.00 MTM $425.00 7/31/00 .$415.00 175 7/31/00 $415.00 405 5/31/00 $405.00 300 7/31/00 $415.00 399 7/31/00 $415.00 399 7/31/00 $415.00 375 MTM $425.00 175 MTM $425.00 365 6/31/00 $415.00 200 MTM $425.00 360 7/31/00 $415.00 399 7/31/00 $415.00 405 6/31/00 $405.00 300 MTM $425.00 405 7/31/00 $415.00 Deposits $10,366. O0 Monthly $11,654. O0 Special Notes $425.00 maim. credit $335.00 rent credit Originating Depa~l~uent Approved for Agenda Agenda Section EDA Community Development 2-28-0 Item No. By:Kirk McDonald By:. DISCUSSION REGARDING CONCEPT REDEVELOPMENT/REHABILITATION PROJECT AT 7610 BASS LAKE ROAD REQUESTED ACTION Staff requests to discuss with the EDA a concept proposal for the redevelopment/rehabilitation of the 11- unit apartment complex at 7610 Bass Lake Road in conjunction with Project for Pride in Living (PPL), the Northwest Community Revitalization Corporation (NCRC) and a variety of funding agencies. Staff would like to determine if the EDA has an interest in collaborating with the City of Crystal for a similar project in that City, whereby the projects in both cities would be submitted to funding agencies for consideration under a single funding request. POLICY/PAST PRACTICE In the past, the City has participated in similar collaborations, most recently with the Bass Lake Court Townhomes Project. As the EDA is aware, projects of this size require a variety of funding partners and usually require the expertise of an experienced development agency, such as PPL. Housing redevelopment has been designated as a high priority of the City Council and this property is identified in the Comprehensive Plan for redevelopment or rehabilitation. BACKGROUND The Northwest Community Revitalization Corporation (also known as the Community Housing Development Corporation/CHDO) and PPL have approached the City and inquired about multiple family properties in need of rehabilitation for a potential collaborative project. Staff has previously identified the 7610 Bass Lake Road property as a high priority. Previous attempts to coordinate a rehabilitation project with the owners have not been successful and a portion of this project would involve acquisition and rehabilitation of the property. Representatives from PPL and the NCRC will be present at the meeting to discuss this concept proposal and the general parameters of the project. The concept of the project has recently been discussed by the CHDO and the City of Crystal. (Cont'd.) MOTION BY '/~ SECOND BY Il U RFA-O01 Request for Action Page 2 2-28-00 PROJECT DESCRIPTION The following project description has been provided by PPL: PROPOSAL: This collaborative project consists of two separate sites: one at 7610 Bass Lake Road in New Hope and the second at 5111-5211 56th Avenue North in Crystal. The New Hope site contains an apartment building which would be renovated. The Crystal site contains four quadraplexes which would be demolished and replaced by 12 new three and four bedroom townhomes. DEVELOPERS The development partners are Project for Pride Revitalization Corporation (NCRC). in Living (PPL) and the Northwest Community PPL is a nonprofit community development corporation which has 27 years of experience rehabilitating and building new housing. PPL has built over 900 units and owns and manages over 500 units in the Metro Area, including 34 in New Hope. PPL's property management division maintains PPL's long term commitment to the community, providing professional services and access to support for residents who need it. PPL also developed and now manages over 50,000 square feet of commercial space and operates four businesses which provide job training for hard-to-employ adults. NCRC is a regionally focused nonprofit community development corporation providing affordable housing for Iow and moderate income residents of the northwest metro area. For the past five years, NCRC has been developing and providing financing for the redevelopment of over 30 units of scattered site housing. The corporation represents a unique collaboration of the six cities of Brooklyn Center, Brooklyn Park, Crystal, Maple Grove, New Hope, and Robbinsdale. WHAT IS PROPOSED? In New Hope, the plans entail the renovation of the existing 11-unit apartment building. The building exterior will be completely renovated, including painting, the repair or replacement of the soffits and fascia, the provision of a new roof, gutters, and downspouts, and the repair or replacement of the windows. The landscaping will be improved, the ddve expanded and resurfaced, and garages added for each unit. Interior work will include updating the existing units in their present configuration. At a minimum, new cabinets and counters, new carpeting, updated electrical, and wall repair and painting will be provided. In Crystal, the existing buildings would be demolished and new larger rental townhouse units with garages would be built. The site would be reconfigured and a connection made to the adjacent park. All 24 units would have market rate rents varying from $600 to $1000 depending on unit size. The units would be rented to families earning less than 60% of the area median (e.g. $38,000 for a family of four). Seven of the units (3 in New Hope, 4 in Crystal) would have rents subsidized for lower income families. Five of those seven units (2 in New Hope, 3 in Crystal) would be reserved for residents on the Minneapolis Public Housing waiting list and the other two (and any of the five not filled by people on the first list) would be used for New Hope or Crystal residents. PPL currently has an on-site management office at their other property less than two blocks from the proposed New Hope site and about a half mile from the Crystal site. A full time site manager lives and is employed there. All prospective tenants will be carefully screened: each must have a good rental history, adequate income to afford the rent, and no criminal background. Request for Action Page 3 2-28-00 FINANCING The total cost of this development is approximately $4.6 million. The financing is proposed to be a combination of a $1.6 million equity investment, a mortgage and construction financing from the Minnesota Housing Finance Agency, investments from the cities of New Hope and Crystal, and other grants and loans from Hennepin County HOME funds, the Family Housing Fund, and the Metropolitan Council. The seven affordable units are paid for by the Metropolitan Housing Opportunities Program, which was created to increase the supply of rental housing outside of the central cities. The attached preliminary Development Proforma shows a $350,000 funding contribution from the New Hope EDA. TIMELINE Acquire properties, design new units and rehab work, secure financing Neighborhood, City and Planning Commission review Feb. 2000-Feb. 2001 Feb. 2000-Feb. 2001 Finish purchase of all properties Start rehabilitation and construction New residents move in February 2001 April 2001 December 2001 CURRENT RENTERS Renters at the time of purchase of the buildings will receive assistance in finding a new place to live and help with the moving expenses. Tenants wishing to move back into the rehabbed or new units would be welcome to do so provided they meet PPL's screening requirements. The rehab part of the project may be able to be phased so as to disrupt only a portion of the tenants in that building. ADVANTAGES TO THE COMMUNITY This development will provide reinvestment in the area's aging housing stock by an owner committed to maintenance and a long term relationship with the community. The improved appearance and stability of the new and rehabbed units will add to the surrounding area's value and livability. These units will provide an opportunity for young families or single parents to stay in this community or become part of it. This development represents the next step in PPL's continued commitment to the strength and stability of New Hope and Crystal. A preliminary site plan of both properties is attached. FUNDING This property is currently not located in an area where TIF funds can be expended, therefore, EDA funds would need to be used for the New Hope portion of the project in conjunction with CDBG funds that are proposed to be programmed for multiple family property rehabilitation. ATTACHMENTS · Site Maps · PPL/NCRC Correspondence · Narrative Project Description · Agency Description · Preliminary Development Proforma · Site Plans · Comprehensive Plan Excerpts New Hope Site 7610 Bass Lake Road AVF.~ ~ ~ x__ x 02/.24/~0.0,, ~:I.,:O.7,..F ,~,,.,,6~2 531 1188 CIT~ OF CRYSTAL A~r CRYSTAL New Hope Site 7610 Bass Lake Road AV~, OIL · & I/? AY[. PL New Hope City Hall ~¥r_. ~ Crystal .. City Hall Crystal Site 5111-5211 56th Avenue This m~ et'S, ia S' ever l~ ti~m fc parficul of Adw tl~adv, dotwhi FEB-23-O0 WED 16:08 PPL HOU$ING/DEVL FaX NO, 6128728995 ?,UZ/iu ~ PROJECT FOR PRIDE II ~ UVINGo INC. [lousing and Develop'nent 1925 Chicago Avenue ) South Minneapolis, MN 5,54C 4-1904 Telephone (612) 8744 512 FAX (6'12) 872-899§ Februmy 22, 2000 Mr. Kit ~ McDonald City of New Hope 4401 X/lon Avenue North New H, }pc, Minnesota 55428-4898 Re: Re tevelopment of 7610 Bass Lake Road Dear M r. McDonald: Thank "ou for the opportunity to discuss the redevelopment of 7610 Bass Lake Road with y~ a and the New Hope Economic Development Authority. We are enthusiastic about tl te project team as it is currently taking shape, particularly the collaborative partici~ ation by the Cities of New Hope and Crystal. Please: ind attached some information on our organizations, a project description, develot ment proforma, and conceptual plan drawing for distribution to your City Counci/EDA. We look forward to presenting this information publicly at your next EDA tr eeting. Please feel free to contact us if you have questions or would like further inform~ fion. Sincere ly, . McCo ck Vice lh esidentjrf'l~ousing and Development Project for P~.e in Living ~' ~3~5~ge Garner Execut ye Director North~a est Community Revitalization Corporation EncIos' ires cc: Ch :is Wilson, PPL Give me a fish and I eat for a day; teach me to fish and I eat for a lifetime. FEB-23-00 NED 16:09 PPL HOUSING/DEVL FaX NO, 6128728995 P. 03/10 PROJECT DESCRIPTION PROP( ~SAL: This collaborative project consists of two separate sites; one on 7610 Bass Lake Road in New Hope and the second on 5111-5211 56th Avenue North in Crystal. The New Hope site contains an apartment building which would be renovated. The Crystal site contains four quadraplexes which would be demolished and replaced by twelve new three and four bedroom townhomes. DEVE! ,OPERS: The development partners are Project for Pride in Living (PPL) and the Northwest CO-OP Community Revitalization Corportion (NCRC). PPL is a nonprofit community development corporation which has 27 years of experience rehabilitating and building new housing. PPL has built over 900 units and owns and manages over 500 units in the Metro Area, including 34 in New Hope. PPL's property management division maintains PPL's long term commitment to the community, providing professiona! services and access to support for residents who need it. PPL also developed and now manages over 50,000 square feet of commercial space and operates four businesses which provide job training for hard-to- employ adults. NCRC is regionally focused nonprofit community development corporation providing affordable housing for low and moderate income residents of the northwest metro area. For the past five years, NCRC has been developing and providing financing for the redevelopment of over 30 units of scattered site housing. The corporation represents a unique collaboration of the six cities of Brooklyn Center, Brooklyn Park, Crystal, Maple Grove, New Hope, and Robbinsdale. WNA~ IS PROPOSED? In New Hope, the plans entail the renovation of the existing twelve unit apartment building. The building exterior will be completely renovated, including painting, the repair or replacement of the soffits and fascia, the provision of a new roof, gutters, and downspouts, and the repair or replacement of the windows. The landscaping will be improved, the drive expanded and resurfaeed, and garages added for each unit. Interior work will include updating the existing units in their present configuration. At a minimum, new cabinets and counters, new carpeting, updated electrical, and wall repair and painting will be provided. PPL HOU$1NG/DEVL F~ NO, 6128728995 FEB-2B-O0 ED 16:09 In Crystal, thc existing buildings would be demolished and new larger rental townhousc units with garages would bc built. The site would be reconfigured and a connection made to the adjacent park. All twenty-four units would have market rate rents varying from $600 to $1000 depending on unit size. Thc units would be rented to families earning less than 60% of the area median (c.g. $38,000 for a family of four). Seven of the units O in New Hope, 4 in Grystal) would have rents subsidized for lower income families. Five of those seven units (2 in blew Hope, 3 in Crystal) would be reserved for residents on thc Minneapolis Public Housing waiting list and thc other two (and any of thc five not filled by people on the first list) would be used for New Hope or Crystal residents. PPL currently has an on-site management office at our other property less than two blocks from thc proposed New Hope site and about a half mile from thc Crystal site. A full time site manager lives and is employed there. All prospective tenants will be carefully screened: each must have a good rental history, adequate income to afford the rent, and no criminal background. The total cost of this development is approximately $4.6 million. The financing is proposed to bca combination of a $1.6 million equity investment, a mortgage and construction financing from the Minnesota Housing Finance Agency, investments from the Cities of New Hope and Crystal, and other grants and loans from Hermepin County HOME funds, the Family Housing Fund, and the Metropolitan Council. The seven affordable units are paid for by thc Metropolitan Housing Opportunities Program, which was created to increase the supply of rental housing outside of thc central cities. TIMEIINE: Acquire properties, design new units and rehab work, secure financing ......... Feb. 2000 - Feb. 2001 Neighborhood, City, and planning Commission review ................ Feb. 2000 - Feb. 2001 Finish purchase of all property ................. Feb. 2001 Start rehabilitation and construction ..............Apr. 2001 New residents move in ...................... Dee. 2001 ~EB-23-O0 ~D 18:10 PPL HOUSING/D~VL ~ NO. 8128728g~5 P. 05/10 CURR] ~NT RENTERS: Renters at the time of purchase of the buildings will receive assistance in finding a new place to live and help with the moving expenses. Tenants wishing to move back into the rehabbed or new units would be welcome to do so provided they meet PPL's screening requirements. The rehab part of the project may be able to be phased so as to disrupt only a portion of the tenants in that building. ADVA/YI'AGES TO THE COMMUNITY: This development will provide reinvestment ia the area's aging housing stock by an owner committed to maintenance and a long term relationship with the community. The improved appearance and stability of the new and rehabbed traits will add to the surrounding area's value and livability. These units will provide an opportunity for young families or single parents to stay in this community or become part of it. This development represents the next step ia PPL's continued commitment to the strength and stability of New Hope and Crystal. FEB-23-O0 WED 16:10 PPL HOU$ING/DEVL F~ NO. 6t28728B@b r, ue/,u PPL's Mission is ~o assist iow- and moderate-income to become self-sure, lent by addressing their job, housing, and neighborhood needs. PPL directly s~rves over 2,000 participants and indire~ly assists thousands more in Minneapolis and Saint Paul through 14 pro- grams relating to jobs and training, housing, neighborhood development, and self-suffi- ciency. Project for Pride in Living (PPL) was formed in 1972 out of a desire of the founders to help people help themselves. In its early years, PPL s~rved low- income families in south Minneapolis by renovating homes with homeowner's assistance. Since then, guided by an entrepreneurial spirit, PPL has grown and services provided have expanded to meet more of the needs of the community it s~rves. PPL not only delivers services to meet the current needs of its participants, but also helps build long-term skills and values needed for a lifetime of self-sufficiency. This impact is multiplied as PPL's programs, participants and properties become symbols of hope in the com- munity. PPL has become a widely-respected, strong and stable organization whose mis- sion is aligned with today's social concerns and changes. Give me a fish and ! eat for a day; teach me to fish and I eat for a lifetime. FE8-23-00 NED 16:12 PPL HOUSING/DEVL FaX NO. 6128728995 O0 1;:~ OOp Geor{:e Garne~T. !-61P-{~33-438~ ][F, Y flVFORMA TION A$O~T NOlt~FI;~'~ CO~ ,qEVITAI2~TION CORPOJ~I270N (NcRo Wh it b ,he Northwest Community Re~i~on Corpormion: lq(: ~C is ~ Community Homins Developme~ Orpnimfion (CttDO) serving the No~ ~wes~ Hennepin County cities ofBmoklyn Pm4:, Brooklyu Centsr, cryml, Maple Crc ye, New Hope, end ~c. NC~C was founded in 19~2 ori~ioelly ~s th~ New HoI ~ Cow.;uu~ I~vi~ion Corpomion. To address the hoed fbr aifordabl~ housin~ opportunities for low- and moderate- income residents of the six cities. ' · To stem blisht through the rebabilit~on ofexlstiug housins stock · To build & now ~mmmilon ofhoumowaers to the roma_ WI ~t does the NCRC do? · 'odc'-lly, N('R,C has developed and sold ,~fford~bf~ hous,~ in p~rfi~:k'..ti,,', :~'kh citi~ ~t~bil~-4,~/~ and r~s~tis~ force, ;n br, d~ tho live~ of'tho ~a~klt,~ h:vol-ved and rental bm~g b~ the oommunifi~ in which w~ work. mst h~ the NCRC don~? Sit co 1994, NCRC bas developed over 30 units ofaffordable housi~ since its inception, W mo does NCRC serve? NC ,'RC serves first time homebuyers with incomes aa Iow as in tho mid $20,000 per year an ~ ~ l~!~h e.< the high $40,000'.s. li,,w do~ NCIct' f~um ~ activities'.' N~ ~'RC has used a variety of sources tO lhnd its activities, including: · ~ $600,000 o~federaI HOME funds · Over $750,000 ofC~ty ~nds ~ Over $'2,600,000 of'leverage private tmd. s H ~v do I get more information about NCRC and its programs? 0 intact our Executive Dire~or, George Oarnctt, at (612} $~-9-0777 or 940-2785. FEB-23-O0 NED 16:13 PPL HOUSING/DEVL FRX NO, 6128728996 BASS LAKE; *ROJECT Preliminary D mvelopment Proforma USE8 Item Subtotal Architectural New Hope Crystal pmie~t 8hb[(,~al .~nt Bu!!d!ng 3~0,000 350~000 175,000 175,000 · ~ Bulldi~a~ t75,000 175,00~ ~t Buildi~,O 175,000 175,000 ,~t Building " '~75,000 175,000 350,000 700,000 ~,050,00~ .... .10,oo~ 6o,oooi ....... 420,000 ..... 420;000 _ _ ' ' ' 120,000 120,000 2u_ee_~ 1,500,000 1,500,000 Ints 75,000 200,000 275,000 50,000 90,000 140,000, ...... 675,00~ 1,850,000 2,525,000 ! ;.e_i~nrt and Eng. ,~12,5,.0,00 ........ 10,000 ~ ana~e~e~t 35,000 - - 10,000 - 25,00g i~ ~ t o,ooo , [irance .... 2.0 000 - 30,000 ....... 10,000 L ..... 200,000 R Units - 0 I~ retest .... ,~ S & Misc. ' 20,00(] " 2o,00~ ,~ ~)ns and Finance [~ ~-!~ NEE ' 100,000 - - 350,000 ,'~ :Ost Escrow 15,000 - 1,023,000 1,023,000 ~ ~'ent Cost 4,§98,00(~ = t2 Unit 2 New Townl' Environmental end Ph t Utilities and Ir~ Costs Holdin - 2~ an~ Credit Fe~ Fee Subtotal IRCE$ MHOP EDA MHFA Council ..... 770 000t 350,000 ' 5001ooo 1,600,000 Fund 200,000 .... 500.000 .IOME 275,000 200,000 203,00~ 4,59~,00D Prepared by: PPL, t: ebruary 23, 2000 FEB-23-O0 ~ED 16:13 PPL HOUS!NG/DEVL FRX NO. 6128728995 P, 09/lO ~,l~T~t~0 tSUlI,, DIFO 1'2 PPL HOUSING/DEVL FP,,X NO, 8128"/28985 ~, ~.~/~u ~ FEB-23-O0 WED 16:13