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HomeMy WebLinkAbout1993 03-22 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER is MARCH 22, 1993 (following adjournment of City Council meeting) 7 p.m. 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. EDA Minutes - March 8, 1993 - Special Session 4. Resolution: a. Approval Request for Proposal (RFP) for a Management Assessment Study of the Earle Brown Heritage Center 5. Discussion Items: a. Conveyance of 6730 Perry Avenue North and 5206 Drew Avenue North to Habitat for Humanity b. Consideration of Single - Family Property Acquisitions under City's Scattered Site Acquisition Program 6. Adjournment CITY OF BROOKLYN CENTER Council Meeting Date Much 22 Agenda Item Number 3 ' V REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: EDA MINUTES - MARCH 8 1993 - SPECIAL SESSION DEPT. APPROVAL Brad Hoffman, A Coordinator MANAGER'S REVIEW/RECONMIENDATION: No comments to supplement this report Comments below /attached SU MARY EXPLANATION: (supplemental sheets attached ) • RECOMMENDED CITY COUNCIL ACTION MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION MARCH 8, 1993 CITY HALL CALL TO QRDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 10;45 p,m, ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann. Also present were City Manager Gerald Splinter, Director of Community Development Brad Hoffman, City Attorney Charlie LeFevere, and Council Secretary Nancy Berg, APPRQVAL OF MINUTES FEBRUARY 22, 1993 - SPECIAL SESSION There was a motion by Commissioner Scott and seconded by Commissioner Kalligher to approve the minutes of the February 22, 1993, EDA meeting as printed. The motion passed unanimously, RESOLUTIONS The City Manager presented a Resolution Approving One Brooklyn Center Economic Development Authority Grant, RESOLUTION NO, 93 -04 C ommissionor Rosene introduccd the following resolution and moved its adoption- RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONON11C DEVELOPMENT AUTHORITY GRANT (FILE NO. H -110 [8036]) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Scott, and the motion passed unanimously. 3/8/93 - 1 - The City Manager presented a Resolution Repealing Economic Development Authority Resolution No. 91 -07. RESOLUTION NO, 93 -05 Commissioner Rosenc introduced the following resolution and moved its adoption; RESOLUTION REPEALING ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 91 -07 The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Scott, and the motion passed unanimously. The City Manager presented a Resolution Awarding Catering Management Contract to D'Amico Partnership and Authorizing the President and Secretary to Execute a Contract. He explained why the contract takes the form it does. He continued to explain the Farm was financed with bonds which were tax exempt, and in order to maintain the tax exempt status the City must comply with the kind of management contract being presented. The regulations of the IRS provides that the last 50 percent of the compensation under the contract must be fixed, and the remaining 50 percent may be based on the percentage of gross rcvCnue but no part can be based on net revenues. He further explained staff has negotiated a 60 -day cancellation provision which is a real incentive to the provider because of the short cancellation provision, The Director of Community Development explained there was also an insurance issue that the City holds D'Amico harmless and D'Amico holds the City harmless. RESOLUTION NO, 93 -06 Commissioner Roscne introduced the following resolution and moved its adoption: RESOLUTION APPROVING A FOOD SERVICE MANAGEMENT AGREEMENT FOR THE EARLE BROWN HERITAGE CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Scott, and the motion passed unanimously. The Director of Community Development informed Council staff was close to finalizing the agreement on the two buildings on Humboldt Avenue North; and on Tuesday, March 9, 1993, the City will close on the remaining two properties. 3/8/93 -2- ADJOURNMENT There was a motion by Commissioner Scott and seconded by Commissioner Rnsene to adjourn the meeting. The motion passed unanimously, The Brooklyn Center Economic Development Authority adjourned at 14;50 p.m. Todd Paulson, President Recorded and transcribed by: Nancy Berg TimeSaver Off Site Secretarial 3/8/93 - 3 CITY OF BROOKLYN CENTER Couneil Melling Date Much 22.1993 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: APPROVAL REQUEST FOR PROPOSAL (RFP) FOR A MANAGEMENT ASSESSMENT STUDY OF THE EARLE BROWN HERITAGE CENTER DEPT. APPROVAL: Brad Hoffman, Director of unity Development MANAGER'S REVIEW/RECONMIENDATION: No comments to supplement this report Comments below /attached • SUMMARY EXPLANATION: (supplemental sheets attached ) A draft of a Request for Proposal (RFP) for the Earle Brown Heritage Center will be sent to councilmembers on Friday, March 19 as a discussion item for Monday's Council meeting. • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING A REQUEST FOR PROPOSAL (RFP) FOR AN OPERATIONAL ASSESSMENT OF THE EARLE BROWN HERITAGE CENTER AND ESTABLISHING A PROJECT WHEREAS, the Economic Development Authority (EDA) in and for the City of Brooklyn Center believes it to be timely to review the policies, the pricing and marketing of the Heritage Center; and WHEREAS, the EDA desires to assure the financial success of the Heritage Center; and WHEREAS, the Community Development Director has prepared a Request for Proposal which describes the Heritage Center's areas of operation to be studied. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that: 1. The Request for Proposal is approved. e 2. The Community Development Director will submit to the EDA a selection process for EDA approval. 3. The Community Development Director is directed to publish the RFP in appropriate journals and papers. 4. Increase the appropriation for the following item: Dept. 325, EDA Administration Program 8802, EBHC Operational Assessment Object 4310, Professional Services $12,000.00 5. Decrease the appropriation for the following item: Dept. 325, EDA Administration, Program 8800, Object 4995, Contingency $12,000.00 Date Todd Paulson, President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. REQUEST FOR PROPOSAL EARLE BROWN HERITAGE CENTER GENERAL INFORMATION The Brooklyn Center Economic Development Authority is seeking proposals for a study (RFP) of the operations and marketing of the Earle Brown Heritage Center with the intent of obtaining an objective review and recommendations to improve the financial success of the facility. OBJECTIVE The Earle Brown Heritage Center opened its doors to the public in April, 1990. The Center has steadfastly continued to improve its market position in the area as a conference center /banquet facility. The Center has been used for business conferences, trade shows, entertainment activities, religious meetings, weddings, as well as other events. While steady financial improvement continues at the Heritage Center, it still operates with a deficit. The Brooklyn Center Economic Development Authority feels that this is an appropriate time to examine the Heritage Center's marketing programs and sales efforts. The objective of the proposed study is to review operational areas such as sales efforts, staffing, pricing, market position, markets to pursue and other related areas having a negative effect upon the financial success of the Heritage Center. METHODOLOGY Proposals should provide a detailed description of how the study is to be structured (i.e., the level of analysis involving financial records, function sheets, and other materials relating to the ongoing daily operation of the facility versus an analysis of the marketing strategies and positioning of the facility. It should not be inferred that proposal submissions are limited to the areas suggested. Proposals should reflect and describe those areas the respondents feel are appropriate and necessary in order to provide the EDA with an insightful analysis of the operation of the facility and corresponding recommendations. STUDY CONTENT At a minimum, all proposals should include a review and comment upon the following: 1. Staffing (levels and salaries) 2. Facility pricing 3. Market position 4. Potential markets 5. Image enhancement 6. Operational costs and potential economics It is anticipated that the party awarded the contract will: 1. Tour the facility and interview key people to include the Community Interested parties desiring further information should contact Brad Hoffman at 569 -3300. SELECTION PROCESS The EDA will review all proposals submitted and select the proposal deemed to be most appropriate. Factors including cost, time frame, and experience will be considered but will not be sole determinants. The EDA MAY elect to interview one or more of the respondents at the EDA's sole discretion. 3 CITY OF BROOKLYN CENTER Council Meeting Data Much 22.1993 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: CONVEYANCE OF 6730 PERRY AVENUE NORTH AND 5206 DREW AVENUE NORTH TO HABITAT FOR HUMANITY DEPT. APPROVAL: Tom Bublitz, Community Development Specialist MANAGER'S REVIEW/RECOAMENDATION: No comments to supplement this report Comments below /attached • SU BLkRY EXPLANATION: (supplemental sheets attached Yes The Brooklyn Center Economic Development Authority (EDA), as part of its Scattered Site Acquisition Program, acquired the single - family properties located at 6730 Perry Avenue North and n demolished and 2 Dr Avenue North. The h dem 5 06 ew ve ue o th. e o mes at both locations have bee the lots are ready for redevelopment. The Perry lot was acquired and cleared in 1990, and the Drew lot was acquired and cleared in 1993. The Perry lot was advertised for sale and in 1992 a company using a panelized construction system was interested in buying the Perry property. A purchase agreement was approved by the EDA, but the company elected not to proceed with the purchase. The Drew lot has not yet been offered for sale. Over the past few month, City staff has had discussions with various representatives from Habitat for Humanity regarding their program for single - family home construction. Based on these discussions with Habitat for Humanity representatives, the staff would like to discuss with the EDA the possible sale of the two single - family lots at Perry and Drew to Habitat for Humanity. I have enclosed several information pieces on Habitat for Humanity, including a letter to myself from Mr. Stephen Seidel, executive director of Habitat for Humanity, a one page summary describing Habitat for Humanity, and a two page article on how Habitat for Humanity works. This item is offered for discussion purposes at the present time. There are several issues that would have to be addressed if the properties are to be sold to Habitat for Humanity, including who would pay the title transfer costs and how the issue of garages (Habitat for Humanity does not build garages) would be addressed, along with any other issues the EDA board would like to address. RECOMMENDATION Staff is requesting a motion from the EDA regarding their interest in pursuing the possible sale of these two lots to Habitat for Humanity. I , • • 1 l Twin Cities Habitat forHumanity September 17, 1992 Mr. Tom Bublitz EDA Assistant Coordinator City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Tom, I enjoyed the chance to meet with you last :week and to discuss with you our approach to developing affordable ownership housing. In this letter, I will re- iterate our process and criteria for the selection of properties that become sites for development. o First, as I described during our meeting, the site selection process is led by our volunteer Site Selection Committees. These Site Selection Committees work within the structural context of our Area - Chapters. Habitat for Humanity has established five Area Chapters in the Twin Cities. o Each Area Chapter has designated target areas within its Chapter boundaries; it is in these target areas that the vast majority of actual development activity takes place. o The Area Chapter that covers the city of Brooklyn Center has designated North and Northeast Minneapolis as its target areas. In designating these areas, however, the Chapter has also indicated an openness to consider opportunities for development in other areas, on a site -by -site basis. O Through communications with city agencies, HRA's and private Property owners, Twin Cities Habitat learns of properties that Might be available. The Site Selection Committee then picks up the ball and investigates the property, and in doing so explores the potential of the property as a development site. o The property's potential as a development site is assessed according to the following criteria: * Acquisition price may not exceed $1.00 * Other acquisition costs (past property taxes, water bills, assessments, etc.) are non - existent or minimal (more) P.O. Box 7053 Minneapolis, MN 55407 -0053 612 - 332 -3372 (Office) 612- 332 -0640 (Fax) Mr. Tom Bublitz September 17, 1992 page 2 * In the case of vacant lots, they must be buildable, with adequate soil; and no soil correction and pollution correction required * In the case of re -habs, the home must be structurally sound * In the case of new construction, the home designs that Habitat would build must be acceptable to city and neighborhood design standards. In particular, parking pads without garages are the Habitat standard that we must adhere to. (While we do not accept government funds, we can accept government support that is targeted to providing garages, if garages are a key concern to the City.) * It is important to assure that the neighboring residents are open to and accepting of a Habitat family moving in to the area. o If the development site can fit these criteria, the Site Selection Committee may then submit the proposed project to the Area Chapter Board, which meets monthly. If the Chapter Board approves the project, it is then submitted to the Twin Cities -wide governing Board of Directors, who must give the final approval before that acquisition process can take place - and of course, before any funds are committed to the project for construction to begin. o Cooperation from the City is also a vital element of a successful project. Good relations with city inspectors, and adequate construction time - twelve months is common - are important considerations. I hope this gives you sufficient information about our site selection process and criteria. Please contact me if you should need additional information or if you have any reactions. Please also note that I am sending a copy of the letter to Eric Weatherman, who is the Chair of the Chapter Board whose area contains Brooklyn Center. In our subsequent conversations, Eric or one of the members of the Chapter Board should be involved. Thanks again for your interest, Tom. I look forward to talking with you again soon. Very ,/,'tr 1 yo s� - S Seidel Executive Director cc. Eric Weatherman encouraging all people to come to the help of their neighbors by sharing some of life's rich v gifts. Habitat for Humanity is now at work in more than 440 North American cities and over 25 _ Third World countries, building homes for our l neighbors in need. Twin Cities Habitat for �i s Humanity began its labors in 1986 and since has Twin Cities Habitat for Humanity provided more than a dozen familes with safe, 4 decent homes they can call their own. _; t Habitat for Humanity's unique program _!! 4e - �.. provides a long -term solution to the housing crisis for the families it serves. By offering an opportunity for more families to own their homes, TCHFH helps families stay together. _�.- ---- -- We'd like you to ... This strength, in turn, builds stable ''��, ' ` • neighborhoods, and strong ommunities. It HAMMER US OUT OF BUSINESS! allows people to contribute to their own Cooperating with families -in -need, a But, as long as there is a family who needs betterment, fosters hope and instills pride. partnership is formed; — TOGETHER, these decent affordable housing, Twin Cities Habitat partners build and renovate homes. This for Humanity can't put away its tool belt. cooperation allows families to purchase a home �, , ,, at a reasonable cost. Each family's monthly Within the Twin Cities, thousands of families house payment is combined with the payments do not have safe, adequate, affordable houses in of other Habitat homeowners in a revolving fund which to live. Twin Cities Habitat for Humanity .�► =M for Humanity. This "recycled" money is used to (TCHFH) is an ecumenical housing ministry ..r helping those families purchase and maintain a �. �„ r ' build more houses. secure home. Volunteers and families together' - Currently five neighborhoods in the Twin fulfill this mission by combining their labor with "` _ Cities are sites of TCHFH home construction. donated materials and dollars. f In order to be eligible for Habitat housing, a TCHFH is the local Affiliate of Habitat for •" ` family must meet economic guidelines, commit Humanity Int., founded in Americus, GA by — – itself to assisting in the reconstruction project, Millard Fuller. Almost twenty years ago, Fuller and currently reside in inadequate housing. conceived a housing ministry to build homes for No local, state or federal funds are utilized. Typically, TCHFH- renovated houses allow families with low incomes on a no- profit, no- However, Habitat for Humanity works closely families sufficient living space for each family interest basis. This unique approach is based on with public agencies who often provide member. Houses are sold to families for what it the Scripture passage that calls us to provide for assistance in property acquisition. Generous costs to build or renovate them, usually about those in need without profiting from the help we individuals, large and small corporations, two - thirds of their market price. The financing give (Leviticus 25:36 -37). While based in this churches, community organizations, and term provided by Habitat is designed to ensure Judeo - Christian ethic, habitat recognizes the foundations provide construction materials, labor payments do not exceed 25% of the family's univty of its ministry, inviting and and money. 0 income. 0 So you want to be a Habitat How much does a Habitat house cost? Homeowner... Habitat's monthly house payments vary depending on the house. Houses are sold at 2/3 of their market value and paid back over 20 -30 years. A house sold for $35,000 (which is typical) would have How does Habitat work? a $147 monthly principal payment. Contract for Deeds are adjusted to insure that the payment does Twin Cities Habitat for Humanity builds and not exceed 25% of the family's income. renovates homes, and sells them to low- income Homeowners also pay approximately $100 a month families without charging interest. Habitat uses into an escrow account which is used to pay mainly volunteer labor to complete the work on insurance, taxes, and some maintenance costs. these houses. Families which are chosen to be Habitat for Humanity charges no interest on houses Habitat homeowners work right alongside Habitat sold. volunteers in the effort to complete their new home. After the homeowners move in they begin making When selected, homeowners pay $100 as earnest monthly payments, and this money goes toward money before construction begins. In addition, building or renovating someone else's house. homeowners make a $300 down payment at the time of closing. Who qualifies? What is expected of Habitat families? 1) Applicants must have incomes which are within the guidelines (see the reverse side of this sheet) Selected families are required to attend a new homeowner orientation and three workshops in 2) Applicants must have a problem with their preparation for homeownership. current housing (i.e. over crowding, rent takes up a large part of total income, serious structural After moving in, families are expected to make problems, roach infestation, etc.) monthly house payments on time and to keep the house and yard well maintained. 3) Applicants must be willing to work 250 hours on their house before they move in. They must also agree to work 100 hours on someone else's house, How long it will take ? on one of our committees, or in the Habitat office within a year after moving into their house. It can take anywhere from four months to two and a half years for an applicant to be selected for and The Family Selection Committee cannot consider moved into a Habitat house. applicants that are separated or applicants that have lived in the Twin Cities for less than one What else should applicants know ? Habitat for Humanity raises much of its funds As part of the selection process, applicants are through publicity throughout the community. Thus, expected to complete a full day of volunteer Habitat homeowners will occasionally be asked to labor on a Habitat site as an indication of participate in events that will help publicize the work commitment to the Habitat program. of Habitat. Such events might include fundraisers, newspaper and television coverage and The Family Selection Committee will also be photographs. At the same time, every effort will be considering your employment history, your credit made to respect a family's privacy. history, and your tenant record. Important: Not everyone that applies will be chosen for Habitat house. 5/26/92 l 0, )h Twin Cities Habitat or Humanity tJ Dear Applicant, Thank you for inquiring about buying a home through Twin Cities Habitat for Humanity. Habitat is an ecumenical, non - profit housing agency. We sell homes to lower- income buyers who are not able to purchase a home through a regular bank mortgage. Besides the criteria listed on this sheet, Twin Cities Habitat gives preference to families living within the chapter areas (see map). At the beginning of the application please indicate the chapter area in which you are most interested in living. Please read the enclosed information, fill out the application, and return it to our office. Note that Habitat does not maintain a waiting list Applicants who fit the criteria are kept in an "application pool ". Families who best fit the selection criteria are chosen first, as houses become available. If you have any questions, please feel free to call our office. Sincerely, Habitat Staff TWIN CITIES HABITAT FOR HUMANITY INCOME GUIDELINES 1992 MINIMUM INCOME LEVEL: $1,000 GROSS per month, including all sources of income Maximum Size of Family Unit Yearly Gross Income Monthly 2 14,404 1,200 3 17,794 1,483 4 21,183 1,765 5 24,572 2,048 6 27,961 2,330 7 28,597 2,383 8 29,232 2,436 9 29,868 2,489 10 30,503 2,542 These figures represent 50% of 1992 state median income levels. P.O. Box 7053 Minneapolis, MN 55407 -0053 612- 332 -3372 (Office) 612- 332 -0640 (Fax) CITY OF BROOKLYN CENTER Council Meeting Date Much 22.1993 Agenda Item Number S • REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: 1 CONSIDERATION OF SINGLE - FAMILY PROPERTY ACQUISITIONS UNDER CITY'S SCATTERED SITE ACQUISITION PROGRAM DEPT. APPROVAL: Tom idublitz, Community Development Specialist MANAGER'S REVIEW/RECONIlVIENDATION: • No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached Yes City staff has received written requests from two single - family homeowners to consider acquistion of their respective properties as part of the City's Scattered Site Acquisition Program. Copies of the letters are included with this memorandum. The properties are located at 5500 Emerson Avenue North and 5305 Bryant Avenue North. The property at 5500 Emerson Avenue North was built in 1893. It is over 1600 square feet on a lot 195' x 135', or 26,325 square feet. The property at 5305 Bryant Avenue North was built in 1928. It is approximately 630 square feet on a lot 66' x 150', or 9,900 square feet. An inspection of 5500 Emerson Avenue North was made by City staff on March 3, 1993, and 5305 Bryant Avenue North was inspected on March 9, 1993. Copies of the Building Official's inspection reports are included with this memorandum. In addition to the written inspection reports on these properties, staff will be presenting slides of the properties at Monday's meeting. • If the EDA elects to consider these properties for inclusion in the Scattered Site Acquistion Program, the next step would be to authorize staff to obtain an appraisal on the properties. By doing an appraisal on the properties, the EDA is not obligated to acquire the properties or even make an offer on the properties. If, after receiving an appraisal and the EDA elects to make an offer, the acquisition would be pursued as a voluntary acquisition with the understanding on the part of the property owners that no relocation benefits would be included. • RECOMMENDATION Staff recommends obtaining appraisal reports on the properties at 5305 Bryant Avenue North and 5500 Emerson Avenue North. • • DECEMBER 7, 1992 MR. TOM BUBLITZ CITY HALL 630 SHINGLE CREEK PARKWAY BROOKLYN CENTER, MN. 55430 PHONE 569 -3433 DEAR MR. BUBLITZ, WE OWN A HOME AT 5500 EMERSON AVE. NO., BROOKLYN CENTER WHICH IS OVER 100 YEARS OLD. WE ARE INTERESTED IN BROOKLYN CENTER'S REDEVELOPEMENT PROGRAM AS PER TELEPHONE CONVERSATION WITH YOU THIS DQ,TE. PLEASE CALL AT YOUR CONVENIENCE. JOHN AND MARILY BLAN 5500 EMERSON AVE. NO. BROOKLYN CENTER, MN. 55430 PHONE 560 -9038 (MARILYN WORK - 784 -2854) February 25, 1993 Economic Development Authority in and for the City of Brooklyn Center Attention: Brad Hoffman, Coordinator .6301 Single Creek Parkway Brooklyn Center, Minnesota 55430 Re: Scattered -Site Redevelopment Program Dear Mr. Hoffman: In recent years the Economic Development Authority in and for the City of Brooklyn Center (the "Authority ") has undertaken a scattered -site redevelopment program (the "Program ") within the City which entails the purchase and demolition of blighted residential properties in order to replace such properties with new housing. I am the owner /occupant of a single- family residence located at 5305 Bryant Avenue North within the City. The house, consisting of approximately 630 square feet, was constricted in the early 1920's. In my opinion, the house is blighted because in order to renovate the house to an acceptable level of repair and code compliance, the costs would greatly exceed the value of the house upon completion of the renovations. It appears that the following renovations are needed with respect to the house, including estimated costs: 1. Siding: The siding is deteriorating in areas and the overhang on the front porch is rotting. I assume the front of the house was at one time an open porch because that is the only area under which there is no basement. When the porch was enclosed and became a part of the living room, no type of wallboard was used to back the siding. There has been a problem with wasps nesting in this area, gaining access through the cracks between the siding material. While the garage obviously needs paint, I have not included in the estimate a cost to side the garage, assuming paint would be sufficient. I assume the cost for exterior repairs and installation of siding would cost approximately $7,500.00. 2. Roof: Just by visual inspection, it appears that shingles are beginning to curl and in the near future a new roof will need to be installed, even though at the current time there is no visible sign of leakage. Since there are currently several layers of shingles, these need to be completely torn off. I assume the cost to replace the roof would be approximately $3,500.00. 3. Windows: Except for the kitchen and back hall, it appears that the house contains all the original windows. These are mainly double hung with sash cording. Both windows in the bedroom to the back of the house need replacement. In the double hung window, the sill is rotted out and there is major leakage. In the horizontal window there are doors which open into the room on a hinge. When there are north or northwesterly winds, these windows tend to blow open, even though I have installed a combination storm /screen window. In the front bedroom the horizontal window is more of a metal casement style. I have also installed a combination storm /screen window in it. There is obvious leakage because during the coldest part of the winter, this window frosts up. In the front of the living room there are two side -by- side windows which need replacement. The kitchen window is the newest window in the house and needs to be replaced because of its low quality. The window is not square and there are airspaces between the sections. Two basement windows also need to be replaced. At an average cost of $500.00 per window, including labor, I estimate that the cost to replace 6 windows would be $3,400.00 (assuming the cost of the 2 basement windows of $200.00 each). 4. Foundation: There have been leakages in the foundation on three sides of the basement which appear to be dependent on either the amount of snow melt or rainfall. The south wall is bowed in and appears to leak the most, even though there is a gutter along that side of the house. There are areas in the exterior foundation that need new mortar. In order to correct the bow in the south wall and to repair the leakage problem, I assume the exterior would need to be excavated. I am not sure the type of block which is now in the foundation, and that may have an impact on the repair costs. Additionally, if there were to be excavation required on the north wall, this activity would encroach upon the neighbor's property, including an asphalt driveway, and those repair costs would need to be taken into consideration, if the neighbor approved the activity. The house itself encroaches on the neighbor's property. I assume foundation corrections would cost $12,000. 5. Plumbing: As in many older homes, the plumbing system is antiquated and has been updated only when repairs have been required. When I moved in none of the plumbing fixtures had independent nt shut - P offs. As plumbing repairs have been done some shut-offs g P have been installed. There is a leakage problem in the bathtub. Whenever water is run in the bathtub, water drips into the basement. I have had people look at the pipes but was unable to find the source of the leakage. There is also a leakage problem under the kitchen sink, which has a drain system which should be replaced. I assume to correct the plumbing situation, the costs would be approximately $3,000.00. 6. Electrical: Similar to the plumbing, the electrical system is a combination of ages. Very few of the outlets are grounded. When I moved in I assumed the wiring had been updated because the wiring in the basement to the circuit box looked new. As I have lived there I have found that certain circuits are overloaded, i.e., portion of the living room, bedroom, basement and portion of the kitchen on one circuit. It is not uncommon in certain outlets in the kitchen that when the toaster is used, the outlet, toaster plug and cord become extremely hot. I am now wondering if that is caused by the wiring involved. I was concerned a month ago when I was installing an overhead fan in one bedroom and found that the wiring was very old (30's or 40's) and there was no junction box in the ceiling. It made me wonder the state of the wiring in the rest of the house. I assume to correct the electrical shortfalls in the house would cost approximately $3,000. 7. Additionally, at sometime there was a fire in the basement in the back of the house. I am not sure when this occurred. While appropriate repairs were made and joists were replaced, I am concerned about the overall structure of the back of the house since there seems to be a "give" in the kitchen floor. As the house ages further, this may become more of an issue. I am including an estimate of $1,500 to repair this problem so it does not progress further. Based on these estimates, which I want to point out are very rough and are not based on any quotes from contractors, costs to restore the house would be as follows: Siding $7,500 Roof 3,500 Windows 3,400 Foundation 12,000 Plumbing 3,000 Electrical 3,000 Reinforce Floor 1.500 Total $33,900 I want to point out that these estimates do not contain any cosmetic updates to the house. Based on the age and square footage of the house, the house has an estimated market value of approximately $53,000. I currently owe approximately $48,500 on the house. If I were to undertake the repairs, the house would not be worth $82,400. Based upon my discussion with a realtor, the estimated value of the house upon completion of the above activities would be $59,000. This is also based on the age of the house, the size of the house, the fact that the bedrooms are very small (9x9 and 9x8 - the realtor had concerns as to whether the smaller one could be considered a "legal" bedroom) and that the house is nonconforming with the other houses in the neighborhood based upon its location far back on the lot. I would like to propose that the Authority include my property in the Program. At the present time the property generates $713 in taxes (payable 1993). A new house would generate property taxes of approximately $1,185 for the same period, a 66% increase in tax base assuming a value of $80,000. This would benefit the City because more taxes would be generated and it would assist in increasing value of the surrounding properties. Additionally, there is a possibility that the taxes generated from the present site would continue to decline because of the blight while the taxes of the new house would increase. At the present time I am very desirous of selling this property. I have consulted with a realtor and he has suggested that my most viable option is to find an investor who would turn the property into rental housing. This would further contribute to a decline in this area of the City. This statement is based on the current housing market and is no way meant to be interpreted in a coercive mode. I feel this is one of the more convenient areas of the City. There is close access to shopping, transportation and freeway access. For the last few years I have thought that a viable option the Authority could look at in developing the neighborhood would be to acquire my property, the commercial property on the corner of 53rd and Bryant and the property on 53rd abutting the commercial property. This would be a good location for a small, 8 unit senior housing facility. If a four -way stop were installed at the intersection, it would be even better. Bryant is right on a bus line and one block south on Bryant is a small convenience store and beauty shop. There would also be room for some garages and gardening space. I have lived in my house for a number of years and have many nice memories, but realistically, the City would be better off with a new house on that property rather than having mine located there. I purchased this house about 8 years ago for $49,900. The housing market was much different then and as to whether I made a wise purchase or not need not be addressed. I was more interested in acquiring affordable housing for my family. As stated previously I owe approximate) $48,500 on m house and d the market value Y a ue is current) $52 900. Based upon po n these figures, I would propose that the Authority purchase my house for $50,700, which is the average of the two prices. Additionally, I would waive any relocation costs with respect to the Authority's acquisition. Time is of the essence with respect to this proposal. I have made an offer P p p o e on a different house outside of the City. While I generally qualify for the second house without selling the house on Bryant, I would need to rent out the house on Bryant, which I am hesitant to become involved with. If I can provide you with any additional information with respect to the house or this proposal, please let me know. I will be available at reasonable times for the City to have acess to the house for any inspection. I can be reached during the day at 375 -6259 and in the evening at 561 -1468. Thank you for your consideration with respect to this proposal. Very t 1 yours, Pamela Frantum cc: Nick Eoloff L," Tom Bublitz 5305 Bryant Avenue North Brooklyn Center, Minnesota 55430 MEMORANDUM TO: Tom Bublitz, Community Development Specialist FROM: Clay Larson, Building Official DATE: 17 March 93 RE: 5500 Emerson Ave N An inspection of the referenced premises was made on March 11, 1993. It is a single- family dwelling approximately 100 years old, located on a corner lot. The following items are noted: 1. The structural integrity of the foundation is doubtful. It is made of limestone blocks set directly on the earth and has no footings. 2. Floors on the 1st floor are not level due to foundation settlement. 3. Plumbing was found to be sub - standard and in one case not vented to the exterior, the vent ended in an attic space. 4. Beams and posts in the basement are not adequate structurally. This has caused floors to sag. 5. 2nd floor has major damage to walls and ceilings due to moisture. Plaster is cracked and loose and most paint has peeled. Considering to age of the house, lead paint is most likely present. 6. Exterior condition is poor due to lack of maintenance. Fascia and soffit lacks paint and has deteriorated in many areas. 7. Roof is in poor condition. Some reroofing has been attempted, but is not very well done. In one area, aprox. 3' x 4 there is no roof boards under the shingles. A hole was just roofed over. 8. A large, fairly new garage on the site has not been maintained and is deteriorating on the exterior areas. Lack of proper up -keep and structural problems combine to make this property a poor candidate for rehab. It would be too expensive to put a foundation under it, which would be necessary. MEMORANDUM TO: Tom Bublitz, Community Development Specialist FROM: Clay Larson, Building Official r� DATE: 17 March 93 RE: 5305 Bryant Ave N An inspection of the referenced premises was made on March 12, 1993. It is a single family dwelling that is 65 years old. The following items are noted: 1. Foundation is in poor condition in some areas visible in the basement. Cracking and deterioration is noted. 2. Floor structure is in poor condition due to fire damage and water damage. 3. Exterior shows lack of maintenance and deterioration in many areas. Windows are in poor condition and need paint and putty. 4. Roof is in very poor condition. Shingles and roof flashings need replacement and several areas of rotted sheathing is visible. This house has too many problems that would be expensive to rehab. It needs siding, roof and roof sheathing, new windows, plumbing, and foundation repair, after which you would still have a small house that needed interior rehab.