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01/22/1992 PLANNING COMMISSION MEETING AGENDA WEDNESDAY, JANUARY 22, 1992 7:30 P.M. Public Copy Planning Commission City of Fridley AGENDA PLANNING COMMISSION MEETING WEDNESDAY, JANUARY 22, 1992 7:30 P.M. LOCATION: Fridley Municipal Center, 6431 University Avenue N.E. CALL TO ORDER: ROLL CALL: APPROVE PLANNING COMMISSION MINUTES: January 8, 1992 PUBLIC HEARING: CONSIDERATION OF A REZONING, ZOA #91-04, BY BRW INC. FOR JOSEPH MAERTENS: To rezone Lot 3, Block 2, Caba Realty First Addition from M-2, Heavy Industrial, to C-3, General Shopping Center, and to rezone Lot 2, Block 2, Caba Realty First Addition from C-2, General Business to C-3, General Shopping Center, to allow for consistent zoning for a proposed Wal-Mart shopping center. PRESENTATION OF HOUSING STUDY; MAXFIELD RESEARCH GROUP RECEIVE THE MINUTES OF THE PARKS & RECREATION COMMISSION MEETING OF NOVEMBER 4, 1991 OTHER BUSINESS: ADJOURN: L CITY OF FRIDLEY PLANNING COMMISSION MEETING, JANUARY 8, 1992 CALL TO ORDER: Chairperson Betzold called the January 8, 1992, Planning Commission meeting to order at 7:30 p.m. ROLL CALL: Members Present: Don Betzold, Dean Saba, Sue Sherek, Diane Savage, Brad Sielaff Members Absent: Dave Kondrick, Connie Modig Others Present: Michele McPherson, Planning Assistant Rollie and Cheryl Stinski, Roiche' Investments APPROVAL OF DECEMBER 11, 1991, PLANNING COMMISSION MINUTES: MOTION by Mr. Saba, seconded by Ms. Sherek, to approve the December 11, 1991, Planning Commission minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON BETZOLD DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. PUBLIC HEARING: CONSIDERATION OF SPECIAL USE PERMIT, SP #91- 15, BY ROLCHE' PARTNERSHIP: Per Section 205.09. 01.C. (6) of the Fridley City Code, to allow automobile parking lot for off-street parking for adjacent uses, on Lots 3-7, Block 4, Lyndale Builders 6th Addition, generally located at 910-950 Lynde Drive N.E. MOTION by Ms. Savage, seconded by Ms. Sherek, to waive the reading of the public hearing notice and open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON BETZOLD DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPEN AT 7:31 P.M. Ms. McPherson stated the subject property is located at the intersection of Hillwind Road and Lynde Drive. The adjacent use for the parking lot is the Hillwind Office Center located just south of the subject parcel. The subject parcel is zoned R-3, . General Multiple Family Dwelling. There is CR-1, ' General Office, to the south, and additional R-3 zoning to the east and north. Ms. McPherson stated that in order to construct the proposed parking lot, the petitioner has also applied for four variances. PLANNING COMMISSION MEETING, JANUARY 8, 1992 PAGE 2 On December 10, 1991, the Appeals Commission voted to recommend denial of the variance to reduce the front yard setback from 35 - feet to 15 feet. The Appeals Commission did recommend approval of variances to reduce the side yard setback from 10 feet to 5 feet, to reduce the width of a two-way driving aisle from 25 feet to 24 feet, and to reduce the length of a parking stall from 20 feet to 18 feet. Ms. McPherson stated the petitioner received a rezoning from R-3, General Multiple Family Dwelling, to CR-1, General Office, in 1988, for the office parcel located south of the subject parcel. At that time, the petitioner also received a variance to reduce the side yard setback from 15 feet to 5 feet along the common property line in order to allow for parking. At that time, the Code required the petitioner to provide 93 off-street parking stalls based on the 1 per 250 sq. ft. office ratio. The office site plan does provide the required 93 stalls. Ms. McPherson stated that also as a condition of approval of the rezoning, the petitioner had to file restrictive covenants against the property, and the restrictive covenants required that "the property owner warrants that all tenants, visitors, or occupants of any building constructed on the premises will not park in the street while using or visiting the building. Further, the owner will take any and all steps which are necessary so as to ensure that there is not any on-street parking" . Ms. McPherson stated that Section 205.09.01.C. (6) of the Zoning Code does allow parking lots for adjacent uses as a special use in the R-3 zoning. It is staff's interpretation that the Code intended that the parcel that is to provide the parking would be a vacant parcel and not a parcel already occupied by a principal use. In this instance, the parking lot would be shared between the apartment dwellers and the office tenants. Ms. McPherson stated that currently there are 20 parking spaces for the apartment buildings. The Code requires that each apartment building have 16 parking spaces for a total of 32. The existing site plan is short 12 spaces. The original proposal by the petitioner provided for 42 spaces and locations for the apartment dumpsters. This is the proposal the Appeals Commission reviewed which required the four variances. Subsequently, the petitioner has submitted a revised site plan which reduces the driving aisles from two-way to one-way, meets the parking stall requirement, and increases the buffer area between the parking area and the property line at the front from the original 15 feet requested to 21. 5 feet. So, the petitioner has attempted to meet the Code requirements. However, while this plan can work, the parking stalls are not striped at an angle which would facilitate a one-way traffic flow direction and also in the wintertime, it would be difficult to determine that the driving aisle is one way. The revised plan does PLANNING COMMISSION MEETING, JANUARY 8, 1992 PAGE 3 provide 44 spaces which would be a net gain of 11 spaces for the petitioner. Ms. McPherson stated that while the petitioner does not have any alternatives , the Code clearly states in Section 205.16.05.D. (7) that: "Adequate off-street parking spaces shall be required for all vehicles concerned with any use of the lot. " This requires that all cars associated with any client or tenant of the office building must park within that particular lot. Staff has suggested the petitioner work with the tenants of the office building to resolve the parking problems, other than expanding the apartment buildings' parking area. Ms. McPherson stated another concern staff has with this particular concept of sharing parking stalls is that the requirements are much different for the apartment buildings versus the office building. Parking between adjacent uses and even shared parking lots is allowed in commercial districts, and it works in those districts because parking ratios are similar to each other. Here, the parking requirements for the apartment building are based on a per bedroom ratio versus a per square footage ratio for the office building. Ms. McPherson stated that as the intent of the ordinance is to allow parking for adjacent use with the R-3 district is, in staff's interpretation, for vacant parcels and the Code clearly requires that adequate off-street parking be provided be provided for all vehicles concerned with any use on a particular lot, staff is recommending that the Planning Commission recommend denial of the special use permit. If the Commission chooses to recommend approval of the special use permit, staff is recommending the following stipulations: 1. The petitioner shall submit a drainage plan to the Engineering Department for approval. 2 . Six-inch concrete curbing shall be installed along the entire perimeter of the parking area. 3. A landscaping plan in compliance with the Code shall be submitted and approved by staff. The plan shall include a 3 foot berm and trees 50 feet on center along Lynde Drive. 4. The petitioners shall construct dumpster enclosures for the apartment buildings. 5. The petitioners shall submit a striping plan for approval by staff. 6. The petitioners shall apply for and receive approval from the Rice Creek Watershed District. • PLANNING COMMISSION MEETING, JANUARY 8, 1992 PAGE 4 7. Variance request, VAR #91-35, shall be approved. Mr. Rollie Stinski stated they own the Hillwind Office building which was built and finished in 1989. It has been a struggle to get the building filled, but they are now 100% occupied. He stated that because of this request for extra parking, there might be the misunderstanding that there is currently a traffic problem. He stated their major tenant is Burnett Realty. Burnett Realty is a growing company, and they have a lot of customers coming in and out of the parking lot all day long. Usually once a week they conduct tours which brings in about 35-40 cars which makes the parking lot very crowded. He has a new tenant on the second floor (attorneys) that is bringing in clients. So, he thought that it might be good to relieve some of that congestion now before any of these people start parking on the street. Right now, there is not a problem, but he is looking to the future as these businesses grow. When they were constructing the building, his wife had suggested to the City Council that if there was ever a parking problem in the future, it might be helpful to do try to get some shared parking, with one of the apartment buildings and the Council was in agreement with this. Mr. Stinski stated the apartment buildings next door seem to be all one bedroom units with no children. There are mostly grown adults with very few cars in the parking lot during the day. Since his concern is for parking during the day time, he believed this could be a good marriage between the office building and the apartment buildings. It is a solution to a parking problem that might exist for the City in the future. Mr. Betzold asked how the petitioner would inform the public of the one-way traffic pattern. Mr. Stinski stated he would install signage indicating one-way traffic. He did not think that would be a problem. Mr. Sielaff stated he is interested in knowing what kind of control measures the petitioner would put in place to prevent tenants and future tenants from overparking. Mr. Stinski stated it is going to be a problem, but there really is no way to control tenant parking. That is why he is proposing this shared parking with the adjacent apartment buildings to relieve the congestion. He stated he will be doing the parking lot maintenance and the snowplowing. He stated the apartment buildings' owner is very receptive to this arrangement. Ms. Savage stated that in the staff report, staff is suggesting the petitioner work with the individual tenants to resolve the parking problem in another manner. Can he do this? PLANNING COMMISSION MEETING, JANUARY 8, 1992 PAGE 5 Mr. Stinski stated that is very difficult. He has written to his tenants about the amount of designated space; but it becomes more difficult as the tenants draw more and more clients or customers. The clients and customers don't know and don't care what parking is available. Mr. Sielaff stated he is really concerned about the lack of control for on-street parking. Ms. Sherek stated that she did not remember the City having a petitioner coming to the City who wants to correct a possible problem before it happens. She realized the apartment buildings' parking lot is relatively small, but isn't there some way to come to a resolution and make this workable? In terms of controlling the traffic flow direction, one solution would be to put a 6-inch curb in the center row in front which would force people to back out of a parking space and continue in the one-way traffic pattern. She believed that when someone comes in with a request to help prevent a future problem, then the City should work with the petitioner to try to make it work. Mr. Betzold stated he is not sold on this particular solution to solve any parking problem. He stated this is a lovely building, but this is the type of building which attracts tenants that exacerbate a growing parking problem and the lot is overbuilt. MOTION by Mr. Saba, seconded by Ms. Savage, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON BETZOLD DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 8:05 P.M. Mr. Saba stated he agreed with Ms. Sherek in that they should try to work with petitioners who are trying to solve problems. He did not think this is the best plan, but it is innovative. Ms. Sherek stated she believed they should realize that when a lovely building like this is built adjacent to an interstate, it is going to draw the type of tenants that want a location that is easy to find. She stated she would like to see this special use permit seriously considered by the Commission; however, there are a lot of questions that need to be answered before the Council meeting. Mr. Betzold stated he believed the problem is going to come sooner than later. The Commission can only deal with the plans that are presented to them, and he did not like this plan. He would appreciate it if the petitioner would go back to the drawing board and rethink his request. Mr. Sielaff stated he appreciated the fact that the petitioner is being pro-active on this, but there are just so many unanswered PLANNING COMMISSION MEETING, JANUARY 8, 1992 PAGE 6 questions. He would like to see the owner try to pay some type of attention to trying to control the parking problems with his tenants. He realized the owner also has to serve the tenants, but he stated he cannot support the plan as presented. Ms. Savage stated that by adding parking spaces, the petitioner is actually bringing the apartment buildings' parking up to Code. She is not bothered by the one-way direction. All parking lots in Minnesota have this problem in the winter. Sometimes, part of the problem is that there is not adequate signage, so she believed this is a problem that could be worked out. She stated Fridley has good requirements for landscaping, and that is part of the stipulations. She would recommend approval of the special use permit. MOTION by Mr. Saba, seconded by Ms. Sherek, to recommend to City Council approval of SP #91-15, by Rolche' Partnership, per Section 205.09.01.C. (6) of the Fridley City Code, to allow automobile parking lot for off-street parking for adjacent uses, on Lots 3-7, Block 4, Lyndale Builders 6th Addition, generally located at 910- 950 Lynde Drive N.E. , with the following stipulations: 1. The petitioner shall submit a drainage plan to the. Engineering Department for approval. 2. Six-inch concrete curbing shall be installed along the entire perimeter of the parking area. 3 . A landscaping plan in compliance with the Code shall be submitted and approved by staff. The plan shall include a 3 foot berm and trees 50 feet on center along Lynde Drive. 4. The petitioners shall construct dumpster enclosures for the apartment buildings. 5. The petitioners shall submit a striping plan for approval by staff. 6. The petitioners shall apply for and receive approval from the Rice Creek Watershed District. 7. Variance request, VAR #91-35, shall be approved. UPON A VOICE VOTE, SABA, SHEREK, SAVAGE VOTING AYE, BETZOLD AND SIELAFF VOTING NAY, CHAIRPERSON BETZOLD DECLARED THE MOTION CARRIED - BY A VOTE OF 3-2. Ms. McPherson stated this item, along with the variance request, will go to City Council on January 27, 1992. PLANNING COMMISSION MEETING, JANUARY 8, 1992 PAGE 7 2. RECEIVE DECEMBER 10, 1991, APPEALS COMMISSION MINUTES: MOTION by Ms. Savage, seconded by Mr. Sielaff, to receive the December 10, 1991, Appeals Commission minutes. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON BETZOLD DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. RECEIVE DECEMBER 12, 1991, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Mr. Saba, seconded by Mr. Sielaff to receive the December 12, 1991, Housing & Redevelopment Authority minutes. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON BETZOLD DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: MOTION by Ms. Savage, seconded by Mr. Saba, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Saba declared the January 8, 1992, Planning Commission meeting adjourned at 8: 15 p.m. Res ctfully submitted, Lyn Saba Recording Secretary G � � imi STAFF REPORT APPEALS DATE CITY OF PLANNING COMMISSION DATE : January 22, 1992 FRIDLEY CITY COUNCIL DATE AUTHOR MM/dn REQUEST PERMIT NUMBER ZOA #91-04 APPLICANT BRW for Maertens-Brenny PROPOSED REQUEST To rezone Lots 1 and 2, Block 2, Caba Realty First Addition to C-3, General Shopping Center District. LOCATION Generally located at 83rd and University Avenues SITE DATA SIZE DENSITY PRESENT ZONING M-2, Heavy Industrial and C-2, General Business ADJACENT LAND USES C-3, General Shopping Center to the. S; M-2, Heavy & ZONING Idustrial to the W; R-3, General Multiple Family uTtn-ES Dwelling to the N; C-2, General Business to the N. PARK DEDICATION ANALYSIS FINANCIAL IMPLICATIONS CONFORMANCE TO COMPREHENSIVE PLAN COMPATIBILITY WITH ADJACENT USES & ZONING ENVIRONMENTAL CONSIDERATIONS STAFF RECOMMENDATION Approval APPEALS RECOMMENDATION PLANNING COMMISSION RECOMMENDATION Staff Report ZOA #91-04, BRW Inc. for Joseph Maertens Page 2 Request The petitioner requests that Lots 1 and 2, Block 2, Caba Realty First Addition be rezoned from M-2, Heavy Industrial and C-2, General Business to C-3, General Shopping Center. The lots are generally located at 83rd and University Avenues. Site The subject parcels are vacant and located south and west of Moose Lodge #38 (formerly Raphaelle's Restaurant) . There is C-3, General Shopping Center zoning to the south; M-2, Heavy Industrial zoning to the west; and R-3, General Multiple Family Dwelling and C-2, General Business zoning to the north. The subject parcels are included in the proposed Wal-Mart development as discussed in the plat request, P.S. #91-04. Analysis The rezoning request will create contiguous zoning for the entire Wal-Mart development. The remainder of the Wal-Mart development and the Sam's Club parcel are already zoned C-3, General Shopping Center District. While the proposed development would locate parking and service drives on the two subject parcels, it will create consistent zoning to"have .the entire parcel under one zoning classification. Rezoning requests dre evaluated for consistency of the proposed use with the proposed zoning district, compatibility of the use with adjacent uses, and conformance to the district regulations. The subject parcels, if developed separately from the Wal-Mart development, would meet the minimum lot area and lot width requirements outlined in the C-3, General Shopping Center District regulations. Rezoning the parcels to C-3 would be compatible with adjacent uses and zoning, with the Wal-Mart parcel being zoned C-3, General Shopping Center District and the Moose Lodge parcel having C-2, General Business District zoning. The retail zoning is also compatible with the M-2, Heavy Industrial zoning to the west. The proposed Wal-Mart development is consistent with the C- 3 zoning district, and the subject lots would serve as parking areas for the Wal-Mart development which is a permitted accessory use in the C-3 district. Recommendation As the request meets the three criteria, staff recommends that the Planning Commission recommend approval of the rezoning request, ZOA #91-04, with one stipulation: 1. The plat request, P.S. #91-04, by BRW Inc. , shall be approved. 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I 11 I 11 114 ' - , —•--,• - • • 1,..___________'_, _1_ - • • , • SITE PLAN Emmimm ZOA #91-04 P.S. #91-04 MAILING LIST Planning '1/2/92 SP #91-14 BRW Inc. for Wembley Investment Council Co. (Wal-Mart) BRW Inc. Current Resident Wal-Mart Stores, Inc. Dale Beckmann 8000 University Avenue N.E. 701 South Walton Boulevard 700 Third Street South Fridley, MN 55432 Bentonville, AR 72716 Minneapolis, MN 55415 Tru Machine Co. Wal-Mart Stores, Inc. . Wembley Investment Co. p37771 Elm Street N.E. Sam-`s Club Bill Besty Y.• Fridley, MN 55432 8150 University Avenue N.E. 2777 Stemmons Freeway Fridley, MN 55432 Dallas, TX 75207 Tru Machine Co. 8090 Ranchers Road N.E. Vantage Properties Inc. University Avenue Associates Fridley, MN 55432 P.O. Box 565048 Springbrook Apartments Dallas, TX 75356 101' - 83rd Avenue N.E. Richard Reiling Fridley, MN 55432 8050 Ranchers Road N.E. Planning Comm. Chair Fridley, MN 55432 University Avenue Associates City Council Members 7841 Wayzata Boulevard James Taylor/Current Res. Minneapolis, MN 55426 8094 University Avenue N.E. City of Spring Lake Park Fridley, MN 55432 1301 - 81st Avenue N.E. Northwest Orthopedics Spring Lake Park, MN 55432 8290 University Avenue N.E. James Taylor Fridley, MN 55432 1487 - 97th Avenue N.W. M. B. Properties or Coon Rapids, MN 55433 Current Resident Northwest Orthopedics 100 - 83rd Avenue N.E. 500 Osborne Road N.E. Donald Kasbohm Fridley, MN 55432 Fridley, MN 55432 d 8290 Main Street N.E. Fridley, MN 55432 Joseph Maertens Moose Lodge #38 8251 Main Street N.E. 8298 University Avenue N.E. Bryant-Franklin Corp. Fridley, MN 55432 Fridley, MN 55432 900 West County Road D New Brighton, MN 55112 M. B. Properties 8251 Main Street N.E. Mar-Len Development Fridley, MN 55432 2500 West County Road C Roseville, MN 55113 e. M. B. Properties J J 2531 Marshall Street ANR Freight System, Inc. Minneapolis, MN 55418 51 - 81st Avenue N.E. Fridley, MN 55432 Ronald Flanagan /1700 West Highway 36, #621E ANR Freight System, Inc. St. Paul, MN 55113 P.O. Box 5070 Denver, CO 80217 Steiner Development Trustee Group Realty Dab Investments, Inc. 3610 South Highway 101 Dematts Inc. Wayzata, MN 55391 10301 University Avenue N.E. Blaine, MN 55434 . PUBLIC HEARING BEFORE THE PLANNING COMMISSION • Notice is hereby given that there will be a Public Hearing of the Fridley Planning Commission at the Fridley Municipal Center, 6431 University Avenue N.E. on Wednesday, January 22, 1992 at 7: 30 p.m. for the purpose of: Consideration of a Rezoning, ZOA #91-04, by BRW Inc. for Joseph Maertens, to rezone Lot 3, Block 2, Caba Realty First Addition from M-2, Heavy Industrial, to C-3, General Shopping Center, and to rezone Lot 2, Block 2, Caba Realty First Addition from C-2, General Business to C-3, General Shopping Center, to allow for consistent zoning fora proposed Wal- Mart shopping center. Any and all persons desiring to be heard shall be given an opportunity at the above stated time and place. DONALD BETZOLD CHAIRMAN PLANNING COMMISSION Publish: January 8, 1992 January 15, . 1992 Any questions related to this item may be referred to the Fridley Community Development Department, 571-3450. w � / Community Development Department PLANNING DIVISION City of Fridley DATE: January 17, 1992 TO: Planning Commission Members FROM: Barbara Dacy, Community Development Director SUBJECT: Presentation of Housing Study; Maxfield Research Group I am pleased to present to the Planning Commission "The Fridley Housing Market: A Study of Condition and an Assessment of Needs". Enclosed in the packet is the Executive Summary prepared by Maxfield Research Group. Lee Maxfield and Mary Bujold will be present at Wednesday's meeting to present the major findings of the report. The City Council and the HRA will be meeting jointly to establish a process to identify the City's goals and implement policies and strategies. The following items will be necessary to take place: 1. Identification of a process to identify housing goals and priorities. 2. Establish housing goals for 5, 10, and 15 year increments. 3. Contact key financial institutions within the community and immediate area to determine interest in participating in programs. 4. Identify appropriate federal and state programs to meet the goals identified by the community. Also, identify and create local programs to meet housing goals which cannot be met by outside funding sources. Also attached to this memo are examples of existing programs that are now occurring which are addressing some of the issues identified in the study. For example, Pat Wolfe, the Housing Specialist, and her counterpart from Columbia Heights, are conducting a "Landlord Workshop" on January 22, 1992. The purpose of the workshop is to review key issues and processes for landlords. It will not only cover the Section 8 housing program, but other important issues such as effective property management, discrimination, eviction procedures, etc. Establishing this type . s Housing Study January 17, 1992 Page 2 of relationship with existing landlords is a key recommendation of the Maxfield study. Also attached is a notice from Anoka County regarding the availability of HOME funds. The HOME program is a new federal program enabling communities to establish first time home buyer or single family rehabilitation programs. Finally, Lisa Campbell has written a memo regarding the Minnesota Housing Finance Agency's two new programs to address blighted single family structures. A key aspect to a number of these federal and state programs is the relationship with local lenders. The City of Fridley needs to establish this relationship as soon as possible, and also identify which programs would best meet the needs identified by the community. HRA and City Council Comments In general, the HRA believed the study to be well worth the amount of the contract. The report provides them with the market information necessary to determine the ability of housing development or redevelopment projects to succeed. The City Council concurred that the study provides a useful tool for the basis of its goal setting process. The City Council prefers to initiate immediately a variety of "maintenance" programs to preserve the quality of existing housing and to rehabilitate poor ones. Recommendation The purpose of Wednesday's meeting is to have the consultant review its findings, and to receive general reaction from the Planning Commission. Staff will forward comments to the City Council and HRA. BD/dn M-92-31 AI • • 0 ....,...--•::-,--- ,,„,..% ,% . . . -/..-.. i , • () \ ::;•,`.1t.• • 0) Q) a) ED (4 .—. > 0 XI Cl) 4) • cn ...-. 4-) ••-I ..-I -.-1 .0 4-) 0 r'•• :;:%:. - • :•:•:: . • : 4-) 4) 4-) • ill 04 0 cn ta •::: 3 i 'Cl C.) 0 0 •.-i 40C -r-f W -I-1 LC) a) = Q. u) c.) a w C) 4i el al (1-1 -r-1 0-1 = = M 1 ula•, '. (1-1 0 (a (1) a) cy ' W .1-1 ' 0 (ES $-i N 11 ,..:::•:,'- . 4J LA M *0-1 -•-1 1 tn it.i = • - $4 i-I 4) .C1 rz4 ..... 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E-4 f:14•f-I 'El 0 Z 1-I 0 0 E-I 3 04 tib tit!:411111 Is, :•- mi•c%. %lc'Vr414'S n mil i . *.....1,....._., It, aZilit 1 Q�K.p `°��r� COUNTY OF ANOKA Urban Anoka County Community Development Block Grant 4,47,47 0A° COURTHOUSE ANOKA, MINNESOTA 55303 612-421-4760 December 9, 1991 Ms. Barbara Dacy, Planning Coordinator City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Re: 1992 HOME Funds Dear Barbara: Anoka County will have access to approximately$500,000 for low income housing activity in late If,,s{ularch r.,Aprit of.1 992R Although we do not yet have the complete regulations or instructions, I want to pass along the basic information to prepare you to act quickly should you want too apply for funding. We will have only a maximum of 75 days from the date HUD notifies us of funding to deliver our plan for use of the funds. We could get notice as early as this week. Since we are part of a four- county consortium, the application timeframe must include the time required for consortium approval process after the Anoka County Board of Commissioners approves our submission, all within 75 days of HUD notice. 44+," •.t.bA The regulations to date are allowing acquisition, rehabilitation, site improvements,finance and] relocation and tenant assistance tQarovide for affordable owner-occupied or rental housing. This does not include emergency shelters. Anoka County has not been approved for new construction except for special needs which include large families, persons with disabilities and SRO's. These uses are subject to conditions which have not yet been distributed. There are also restrictions n who:sa ma• serve. All of the units assisted wiih i the HOME funds must be occupied by low income households (for a family of four, a maximum of$38,000). We can cover part of the cost of a mixed use building where some of the units are for qualifying households as long as the percentage of the project costs funded by HOME does not exceed the percentage of low/moderate units. At least 90% of the households we assist must have incomes below 60% of median for the metropolitan area ($28,500 for a family of four). There is also a requirement that at least 20%of the beneficiaries of each individual project be households with incomes of no more than 50% or the median ($23,750 for a family of four). Affirmative Action/Equal Opportunity Employer Page 2. HUD rules call for a 15% funding reservation to qualified Community Housing Development Organizations . I have attached a copyof a Minnesota HousingPartfnershi p publication t a explains the qualification for a CHDO. Beyond that reservation, I expect this to be a competitive process where applications will be ranked based on established criteria. I do not know exactly haw the ranking will work yet but can offer you some things to consider. Our CHAS has established priority for large families,_single persons,persons with disabilities,and first time home uyers. Given the sluggish housing economy and c messed prices this could be a .* good time to provide homebuyer assistance, likely as downpavment or closing cost subsidies. The other initiatives will depend on the project applications received. Evaluation criteria may include the total number served,cost per household,the affordability,total cost of the project,site control,experience of the developer,other funding sources,fit with CHAS priorities, and project feasibility. Again, all of this information is very basic and will surely be augmented when the rules are published. I hope it is sufficient to allow you to begin a planning process if you intend to submit an application. If you are interested in submitting a HOME project application, please call me so I can send one when available. I'll be happy to answer any questions you may have at this point if you would like to call me at 421-4760, extension 1178. Sincerely, c;2 JoAnn O. Wright Community Development Manager JOW:sw Enclosures cc: County Human Services Barbara Wold Julie Brunner Edna Hoium C] Community Development Department I ' PLANNING DIVISION City of Fridley DATE: December 16, 1991 TO: 4rbara Dacy, Community Development Director FROM: Lisa Campbe ,�'iPlanning Associate SUBJECT: Minnesota Housing Finance Agency's Request for Proposals: The Single Family Capital Reserve Program and Blighted Residential Property Acquisition and Rehabilitation Program As per your request, I have reviewed the Request for Proposals from the Minnesota Housing Finance Agency for the Single Family Capital Reserve Program and the Blighted Residential Property Acquisition and Rehabilitation Program. This review involved reading the materials provided by the MHFA and attending a technical assistance meeting conducted by the MHFA on December 11, 1991. The purpose . of both programs is to affect the preservation and rehabilitation of existing housing throughout Minnesota. Findings The purpose of the .Single Family Capital Reserve Program is to meet locally identifipsl�ighb-orhood revitalization goals regarding the `preservation and rehabilitation of existing single family housing stock and to provide single family home ownership opportunities. Under this program, appropriated funds (MHFA) would be leveraged with market rate capital (i.e. FNMA, GNMA, the lender's portfolio, the FHA 203 (k) , etc. ) . The appropriated funds may be leveragdwith market rate capital through first mortgage participation or interest-free second mortgage participation. See Attachment A for examples of how these financing options would work. Appropriated funds may not exceed o£- t-he f;nancingi _ The lender and the focal governmental unit must jointly apply for this program. er significan program requirements include, but are not limited to: the second mortgage is not assumable; the total rehabilitation may not exceed 30% of the value of the property; participants must be low to moderate income persons who are first-time home buyers, households with children, minority or disabled. Minnesota Housing Finance Agency's Request for Proposals December 16, 1991 Page 2 The MHFA hopes to distribute 60% of the funds to the Twin Cities MSA and 40% may be reserved for Greater Minnesota. The deadline for applying is January 31, 1992. The purpose of the Blighted Residential Property Acquisition and Rehabilitation Program is to provide improvement of blighted. properties within s ecifically designated geographic neighborhoods. The properties may be singe ami y units o one o four uits.� The grant recipients will then use the appropriated funds to provide revolving loans or grants to eligible parties for the improvement of blighted properties. Eligible activities under this program are limited to: financing acquisition and/or demolition of blighted property; providing gap financing for rehabilitation; or gap financing for construction of new housing on blighted property. In the case of the two gap financing activities, the properties .must be sold upon completion to a low-moderate income person or family. Funds will be awarded to cities in the form of grants and must be expended by December 31, 1993. The spending deadline only includes the initial grant amount. The minimum grant size is $30,000 and e is $350,000. Neighborhood boundaries and what constitutes "blig may e defined by the city. Eligible mortgagors include a non-profit or cooperative housing corporation, a limited profit or limited dividend entity, or a builder. The deadline for applying is January 31,__1992. — Recommendation In the draft copy of the Maxfield housing study, rehabilitation of Fridley's existing housing stock was identified repeatedly as a housing need in Fridley. As work is finalized on the housing study, it is likely that the issue of rehabilitation financing will emerge; however, it is not likely that the final copy of the housing study will be completed and evaluated prior to January 31, 1992. It does not seem realistic to expect the City to be in a position to apply for either of these programs at this time. Both of these programs are innovative rehabilitation financing tools. The City may choose to apply one of these approaches with its own or other sources of income in the future. LC:ls Attachment M-91-896 • Attachrrent A Example 1 Example 2 Participation Loan 2nd Mortgage Loan Initial Purchase Price $30,000 $30,000 Amount of Rehab $10,000 $10,000 Total Project $40.000 $40,000 Maximum Mortgage $38,000 $38,000 (conventional at 95% LTV) • $30,400 $7,600 $30,400 $7,600 ®9%0 @0% ®9%30 year @0%-30 year (Ys x S) + (I x s/O-Note Rate (9%x 80%) + (20%x 3/8%)= (.09 x.80)+ (.20 x.00375)- .072 + .00075 - .07275 or 7.275% $244.61 $0 $38,000 © 7.275%, 30 years $259.87 r.- MINNESOTA 4PAA HOUSING . flrip FINANCE AGENCY DATE: November 22, 1991 TO: Interested Parties FROM: James J. Solem Commissioner SUBJECT: Announcement and Request for Proposals; The Single Family Capital Reserve Program and the Blighted Residential Property Acquisition and Rehabilitation Program • The Minnesota Housing Finance Agency (MHFA) is currently in the process of implementing two unique financing programs which may be of interest to you. The two programs are the Single Family Capital-Reserve Program and the Blighted Residential Property Acquisition and Rehabilitation Program. The underlying premise of both programs is to effect the preservation and rehabilitation of the existing housing stock throughout Minnesota. MHFA is hereby soliciting your proposal to participate in either, or both of these new programs. THE SINGLE FAMILY CAPITAL RESERVE PROGRAM: The Single Family Capital Reserve Program was established by the 1991 Legislature which appropriated $1,650,000 for the program. The purposes of the program are to effectively use those appropriated funds to meet locally identified neighborhood revitalization goals pertaining to the preservation and rehabilitation of the existing single family housifack and to provide single family homeownership opportunities. Local governments and/or nonprofit housing organizations and local mortgage lenders may jointly apply to participate in the program. Under the program, local lenders will originate first mortgage loans `using.`market rate - capital from their `traditional sources These traditional sources mayinclude FNMA, "purchase/rehabilitation" GNMA, their own portfolio, the;FHA_203(k) program, the MHFA Purchase Plus Program (which is a variation of the FHA 203(k) program), etc. The appropriated program funds will be leveraged with that market rate capital to provide greater affordability and flexibility in the origination of those mortgage loans. Complete details and information regarding the program will be sent to you if you request an application packet. THE BLIGHTED RESIDENTIAL PROPERTY ACQUISITION AND REHABILITATION PROGRAM: The Blighted Residential Property Acquisition and Rehabilitation Program was also established by the 1991 Legislature which appropriated $1,750,000 for the program. 400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (612)296-7608 Telecopier(612)296-8139 TDD(612)297.2361 Equal Opportunity Housing and Equal Opportunity Employment 4 -2- • The purpose of this program is to provide for the improvement of blighted properties; within specifically designated geographic neighborhoods. Under the program, MHFA* will award-grants of the appropriated funds directly to cities or local governments. The,, grant recipients will then use the appropriated funds to provide revolving loan funds and/or grants to eligible parties for the improvement of blighted' properties The revolving loans and grants may be used to provide financing for the,acquisition or. - demolition of blighted properties, or to provide gap financing for the rehabilitation of blighted properties. Gap financing is the difference between the sum of the cost of acquiring and/or rehabilitating a property, and the market value of that property upon sale. Furthermore, funds from this program may be used to provide gap financing for the construction of new housing on a site where a blighted property was demolished. In this instance, gap financing is the difference between the sum of the cost of acquiring and/or demolishing and constructing new housing on the site and the market value of the property upon sale. It should be noted that these program funds may not be used as the primary source of financing, rehabilitation or new construction on these properties. Rather, these funds may only be used to provide gap financing as described above. Complete details and information regarding the program will be sent to you upon request of an application packet. Cities may make loans and grants to a wide variety of individuals and organizations involved with housing and it is MHFA's intention to encourage and support innovative approaches to the improvement of the housing stock within designated neighborhoods. The appropriated funds from these programs may be used in conjunction with other local, state and/or federal programs, as appropriate. Interested parties may apply to participate in either, or both of the above programs. However, you must request and complete a separate application packet for each program. To further explain the programs and the application process, MHFA will conduct a series of informational meetings throughout the state. The times, dates and locations of those meetings are enclosed. Completed applications and attachments must be submitted to MHFA no later than January 31 `1992 so you may wish to request an application packet immediately to begin planning. It' is anticipated the programs will begin in early March, 1992. MHFA believes there is a natural connection between the two programs. While it is not mandatory to participate in both programs, additional consideration will be given to those applications which effectively combine both programs. You are encouraged to contact the representatives listed below to discuss any questions you may have regarding the respective programs, or to request an application packet for the programs. Questions regarding the Single Family Capital Reserve Program may be directed to Bruce Strong at (612) 297-3131 and questions pertaining to the Blighted Residential Property Acquisition and Rehabilitation Program may be directed to Reed Erickson at (612) 296-8843. You may also call toll-free at 1-800-652-9747 and ask for "Home". Neighborhood preservation and rehabilitation of the existing housing stock has been identified as a pressing public policy concern for the 1990s. Both of these new programs have been uniquely designed to address this need. We invite you to participate with the Agency in these important initiatives. Should you have any further questions, please don't hesitate to contact the representatives listed. Thank you for your cooperation and consideration in this matter.