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HomeMy WebLinkAbout11/09/1999BOOK AGENDA MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY TUESDAY, NOVEMBER 9, 1999 7:00 P.M. CITY HALL MAPLEWOOD ROOM 1. Call to Order 2. Roll Call 3. Approval of Minutes July 21, 1999 4. Approval of Agenda 5. Communications · 6. Unfinished Business 7. New Business a. Home Replacement Program - Operations and Procedures Plan 8. Date of Next Meeting 9. Adjournment c:memo\HRAAGEND.MEM MINUTES OF THE MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY JULY 21, 1999 1. CALL TO ORDER Chairperson Fischer called the meeting to order at 7:04 p.m. 2. ROLL CALL HRA Commissioners: Lorraine Fischer, Tom Connelly, Larry Whitcomb, Joe O'Brien 3. APPROVAL OF MINUTES Commissioner Pearson moved approval of the minutes of November 10, 1998, as submitted. Commissioner Connelly seconded. Ayes--all The motion passed. 4. APPROVAL OF AGENDA Commissioner O'Brien moved approval of the agenda as submitted. Commissioner Connelly seconded. Ayesmall The motion passed. 5. COMMUNICATIONS Annual City Tour--Monday, August 30, 1999 Ken Roberts, associate planner, reminded the members that the annual tour is Monday, August 30, 1999. He asked to be informed if the commissioners had any particular sites that would be of interest to them. The tour will leave city hall at 5:30 so the participants are asked to be there by 5:15 p.m. 6, UNFINISHED BUSINESS There was no unfinished business. 7. NEW BUSINESS A. Possible Future Housing Programs Melinda Coleman, director of community development, told the commissioners that the city council would like them to attend a Monday, August 2, 1999, workshop. The meeting begins at 6 p.m. The council would like to talk about some housing issues. She said there is a surplus of tax-increment money, primarily from the Carefree Cottages, that needs to be spent on housing projects. Mary Ippel of Briggs and Morgan, the city's bond consultant on TIF projects, will be at the meeting. Ms. Ippel will review many of the items contained in a memorandum that was included in the HRA packet. ~ T r T HRA Minutes of 07-21-99 Ms. Coleman asked the commission to review the QSA study that was done for the City of Maplewood in June 1996. She said one of the primary recommendations of this study was to do a home replacement where the city would buy a deteriorated house, tear it down, and then sell the lot for development to create a revolving loan fund to continue this program. Chairperson Fischer mentioned that the HRA's priority, as discussed at a previous meeting, was to renovate "borderline" housing by means of Iow-cost loans, etc. Ms. Coleman said that Steve Quam of QSA, who did the housing program evaluation for Maplewood, recommended that the city start with the home replacement program and then possibly get into remodeling or repair. It was Ms. Coleman's recollection that the HRA was not fully in agreement with Mr. Quam's procedural recommendation to set up ad hoc committees composed of representatives from all over the city. Ms. Fischer thought another criticism was Mr. Quam had not considered the areas designated in the comprehensive plan as sites that needed to be watched because they were older, marginal housing or next to subsidized housing. Ms. Coleman suggested the commission consider housing project options that they would want to recommend to the city council. Ms. Coleman also wanted to discuss the tax-forfeited parcels located across County Road B from city hall on the west side of VanDyke Street. She said there is some interest in combining these parcels with the parcel on the corner to do a townhouse project. The HRA's involvement is necessary for the city to sell and buy land. A public purpose, such as affordable housing, is also a requirement. The city would let the county know that they are interested in selling these parcels, pay the market price to Ramsey County, and then enter into an agreement with a developer to the affordable townhouse project. Ken Roberts, associate planner, asked if TIF money could be used to buy this land. Ms. Coleman thought it could but wondered if the council would want it all spent on this project. She felt a better approach would be to market the land and request maximum density development. Mr. Roberts also wondered, if the proposed housing was Iow-moderate, would the TIF money be used to subsidize the rent or pay for infrastructure. Ms. Coleman urged the commissioners to be prepared to ask this type of question at the August 2 meeting. Commissioner Pearson suggested designating specific types of remodeling projects that would be available at Iow interest, subsidized rates to get certain properties rehabilitated and to try to get the blight corrected in affected areas. Mr. Roberts liked the idea of "getting rid of three, four or five really problem homes." City staff has compiled a list of ten "bad" homes. Mr. Roberts also asked it the city should wait until one of these homes is put on the market or if the owner should be approached before that time. Various options were discussed. Ms. Coleman felt that Maplewood was very fortunate in that they do not have a lot of blighted housing. She thought most of the council members wanted to stay ahead of the problem. Ms. Coleman emphasized that if this money is not used it will be lost so the council should come to a consensus on how it should be spent. She suggested that the commission summarize to the city council what program they would have as their priority. The consensus was the first priority would be to replace substandard housing. Ms. Fischer emphasized that "it isn't as though we are intentionally starting off to demolish affordable or HRA Minutes of 07-21-99 our only Iow-cost housing in the City," ThOse houses being considered would have definitely deteriorated to a point where it was no longer feasible for improvement. The HRA was also interested in a town house project on VanDyke Street. if possible. 8. DATE OF NEXT MEETING The date of the next meeting has not been determined. 9. ADJOURNMENT The meeting adjourned at 8:15 p.m. TO: FROM: SUBJECT: DATE: MEMORANDUM City Manager Ken Roberts, Associate Planner HOME REPLACEMENT PROGRAM November 3, 1999 INTRODUCTION The city council has authorized the use of excess tax increments from the Carefree Cottages to finance debt service on tax increment bonds. The city will issue these bonds to provide funds for ' a Home Replacement Program. This program is to help fund the replacement of dilapidated houses with new homes throughout Maplewood. BACKGROUND On August 2, 1999, the city council discussed possible future housing programs with the HRA at the council/manager workshop. At this meeting, the council directed staff to prepare a housing plan that would replace dilapidated houses with new, higher-value replacement homes. On August 23, 1999, the city council approved developing a Home Replacement Program that will: Use the surplus tax increment proceeds (up to about $687,000) from Districts 1-4, 1-5 and 1-6 to fund the housing program. The city must reasonably expect to spend this money within 3 years. 2. Buy vacant or dilapidated properties from willing sellers at fair market value. 3. Demolish any dilapidated houses and other structures and rough grade the lots. Deed the vacant properties at no cost to an agency or group that will use the lots to provide new housing for Iow-to-moderate income persons. Such a transaction would be subject to all Maplewood zoning and building requirements. (Note: Because the city would be using tax-exempt bonds to fund this program, the city may only do no-cost grants of property. The city cannot sell the property or provide Iow interest loans with the tax-exempt money.) The council also adopted resolutions at this meeting that provided preliminary approval for the sale of $719,094 1999 General Obligation Tax Increment Bonds and authorized the use of excess tax increment revenues from the Carefree Cottages to finance debt service on the bonds. On September 27, 1999, the city council approved a resolution approving changes for the Development District No. 1 and changes to Housing Districts Numbers 1-4, 1-5 and 1-6. These · changes designated that the city will spend the excess funds from the three TIF Districts on a home replacement program. The total funds available to the city to spend from this program should be about $687,000 and the city needs to reasonably expect to spend the money within 3 years (by September 2002). T----T T ~ i DISCUSSION . The HRA has been reviewing and considering housing programs for several years. The city council's actions on August 23, 1999 and September 27, 1999, will allow city staff to proceed with a plan using TIF proceeds to help finance the new housing replacement program. City staff also has prepared a list of the houses in Maplewood that, in staff's opinion, are those that are in the poorest condition and thus would be candidates for replacement. We have copies of this list if you wish one for your records. COMMISSION ACTION On July 21, 1999, the HRA discussed possible future housing programs for Maplewood. The HRA is interested in having the city start a housing replacement program and possibly working with the city to encourage development of the property on the west side of Van Dyke Street, north of County Road B. RECOMMENDATION Approve the plan starting on page three. This plan is for the operations and procedures for the Maplewood Home Replacement Program. kdp:misc\hsgpro2.mem Attachments: 1. Home Replacement Operations and Procedures Plan 2. List of Dilapidated and Substandard Houses 2 Attachment 1 MAPLEWOOD HOME REPLACEMENT PROGRAM OPERATIONS AND PROCEDURES PLAN November 3, 1999 Introduction The Maplewood City Council has been discussing the condition of older housing in Maplewood for several years. A concern of the council has been that if a single dwelling deteriorates to the point of becoming a detriment or an eyesore that it will have a negative affect on the surrounding area. As such, the city council has made a commitment to improve the condition of the single family residential housing stock in scattered sites with the Maplewood Home Replacement' Program. Goals . The following are the goals of the Maplewood Home Replacement Program: 1. To keep the Maplewood housing market viable and values increasing by constantly improving and upgrading housing. 2. To eliminate problem housing by removing housing that can only deteriorate because its basic quality is inherently Iow. 3. To have a program and plan that will benefit the whole city and each of its residents. History The Maplewood City Council and the Housing and Redevelopment Authority (HRA) have been discussing and reviewing the condition of housing in Maplewood for several years. In 1992, the comprehensive plan identified two related issues about housing and neighborhood quality. The first issue is what steps can the city take to prevent the deterioration or abandonment of its older housing stock? A second issue was what steps can the city take to prevent neighborhoods from · deteriorating? Specifically, if a single dwelling deteriorates to the point of becoming a detriment or an eyesore, it will have a negative affect on the surrounding area. That is, other property owners may not be motivated to care for or to improve their properties if they live next to or near a rundown house. Because of the above concerns, the city council hired Quam and Associates in 1996 to do a housing program concepts evaluation. This evaluation was to provide the city with a summary of the following program issues: 1. The type of programs (home replacement, existing home transformation, area redevelopment) that would be most effective in updating neighborhoods and conserving existing open lands. 2. The possible funding sources for such a program. 3. The cost effectiveness of any housing initiatives and the positive impact they might have on the taxes and revenues of the city and the school district. The housing program evaluation completed by Quam and Associates determined that a home replacement program would be the best program now for Maplewood. This is because there are properties that have deteriorated and are inconsistent with the character of the rest of the neighborhood. It is important to remember that much of the housing in older Maplewood neighborhoods was built before zoning and building restrictions were in place. These are often the houses that are now deteriorated and an eyesore. Removing an existing eyesore property and replacing the worst home with a new home that sets a new quality standard is an effective action for change. In a meeting on August 2, 1999 with the HRA, the city council again discussed possible future housing programs. At this meeting, the council directed staff to prepare a housing plan that would replace dilapidated houses with new, higher-value replacement homes. On August 23, 1999, the city council approved developing a Home Replacement Program that will: Use the surplus tax increment proceeds (up to about $687,000) from Districts 1-4, 1-5 and 1-6 to fund the housing program. The city must reasonably expect to spend this money within 3 years. 2. Buy vacant or dilapidated properties from willing sellers at fair market value. 3. Demolish any dilapidated houses and other structures and rough grade the lots. Deed the vacant properties at no cost to an agency or group that will use the lots to provide new housing for Iow-to-moderate income persons. Such a transaction would be subject to all Maplewood zoning and building requirements. (Note: Because the city would be using tax-exempt bonds to fund this program, the city may only do no-cost grants of property. The city cannot sell the property or provide Iow interest loans with the tax-exempt money.) The council also adopted resolutions at this meeting that provided preliminary approval for the sale of $719,094 1999 General Obligation Tax Increment Bonds and authorized the use of excess tax increment revenues from the Carefree Cottages to finance debt service on the bonds. On September 27, 1999, the city council approved a resolution approving changes for the Development District No. 1 and changes to Housing Districts Numbers 1-4, 1-5 and 1-6. These changes designated that the city will spend the excess funds from the three TIF Districts on a home replacement program. The total funds available to the city to spend from this program · should be about $687,000 and the city needs to reasonably expect to spend the money within 3 years (by September 2002). 4 General Policy Guidelines The city shall follow the standards and guidelines in the Maplewood City Code of Ordinances and in the Maplewood Comprehensive Plan when administering and operating the Maplewood Home Replacement Program. The Director of Community Development shall make the final decisions in cases or issues of uncertainty in the program. Anyone may appeal the Director's decision to the Maplewood City Council for review and possible change. Practices and Methods of Property Purchase and Resale 1. Maplewood will only buy vacant or dilapidated properties from willing sellers. 2. The city will have an appraisal done and will only pay fair market value for a property. 3. The seller of the property is responsible for properly sealing or capping any wells on the property. 4. After the city closes on the purchase, the city will hire a contractor to remove the structures on the property and rough grade the site. For a buildable site, the city will deed the property at no cost to an agency or group that will use the lot to provide new housing for Iow-to-moderate income persons after the contractor has graded the site. The new construction would be subject to city staff review and approval as outlined below and all Maplewood zoning and building requirements. The city council shall approve the property ownership transfer. o City staff will review and approve all new house design and site plans. The construction shall include a garage at least big enough to hold two motor vehicles. The design of the new construction shall be compatible with adjacent and nearby houses. Staff shall consider the following when reviewing these house plans: a. The height, bulk and area of the existing and proposed buildings. b. The color and materials of the proposed buildings. c. The physical and architectural relationship of the proposed structure with the existing buildings. d. The site, layout, orientation and location of the proposed and existing buildings and their relationship with existing topography, landscaping and vegetation. City staff may require changes to the plans or may add conditions they deem necessary to ensure that the proposed design is compatible with the existing neighborhood. The city must make the following findings to approve the proposed plans: a. That the design and location of the proposed construction and its relationship to neighboring, existing or proposed developments is such that it will not impair the desirability of the existing neighborhood. b. That the proposed design and location of the construction are in keeping with the character of the existing neighborhood. T t ~ T T c. That the proposed design would be aesthetically pleasing in composition, materials, textures and colors. The developer or builder may appeal the staff decisions about design issues to the community design review board. 7. If the property the city has bought is next to publicly-owned property, the city may choose to keep the property for open space rather than transfer the property to another owner. The city council shall approve any property transfer or decision to keep a property. 8. If the property the city has bought does not meet the city's zoning standards for lot size or lot width, the city may choose to: a. Keep the property for open space rather than transfer the property to another owner. b. Divide the property and deed the pieces to the adjacent property owners. The city council shall approve any property transfer or decision to keep a property. 3. 4. 5. 6. 7. 8. 9. '10. 11. Others 12. 13. 14. 15. Attachment 2 Dilapited and Substandard Houses - Maplewood (In order of Priority) October25,1999 1819 Birmingham Street 1890 Adele Street 1779 Frank Street 1309 1/2 Kohlman Avenue (PIN 15-29-22-32-0023) (PIN 16-29-22-42-0018) (PIN 16-29-22-43-0004) (PIN 03-29-22-33-0072 or 0073) 1742 and 1742 % English Street 549 Farrell Street (PIN 1724 Sylvan Street (PIN 1287 Lark Avenue (PIN 1700 Clarence Street (PIN 2682 Geranium Avenue (PiN 1744 Prosperity (PIN (PIN 15-29-22-33-0094 or 0095) 36-29-22-14-0022) 18-29-22-34-0038 or 0039) 09-29-22-44-0002) 15-29-22-33-0104) 25-29-22-11-0026) 15-29-22-43-0017) (Rehab?) 1534 County Road C 1134 County Road D 1170 County Road D 1800 Bradley Street (PIN 10-29-22-21-0002) (PiN 04-29-22-12-0070) (PIN 04-29-22-12-0010) (PIN 17-29-22-34-0020) kr/c:memo/houselst.mem