2011-04-18 CC Packet �
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Date: Sunday, April 17; 2011
To: Albertville City Council
From: Larry Kruse City Administrator
Re: Possible additions to Monday, April 18`"Agenda
GtiARDIAN ANGELS 47 UNIT HUD LOW INCOME SENIOR PROJECT
On FiYday late afternoon, Dan Dixon from Guardian Angels called and asked if it u�as too late to
get on Monday's agenda regarding their desire to resubmit an application to HCJD for a 47 unit
Iow income senior project. Mr. Dixon informed me that they were unsuccessful in their
Minnesota Housing funding attempt and that project will not go forwaxd in 201 l. The 47 unit
HUD project was planned to be the second phase, but now tha#the first phase is delayed,
resubmitting the June HLTD application appears to be a good plan. The City of Albertville
supported this plan in 2009.
For the past several years it has been the priority of the City to encourage development of Iow
income senior housing so residents can stay in our community as they age. Currently,the City of
Alberttiille does not have any HUD housing available and based on the recent market study there
is definitely a need. Should Guardian Angels receive HCJD funding, the City of Albertville would
need to work them on TaX Inci•einent Financing assistance.
Mr. Dixon requests a brief amount of time on Monday's agenda to update the Council on the
project a,nd to seek the City's support. A possible outcome might be to set a special meeting as
Mr. Dixon will be out of the County in May and time is of the essence to resubmit the H[,TD June
application. Staff would need to assist Mr. Dixorz getting letters of support for the project.
COMPOSTE STTE=OTSEGO
Staff vvould like the council's approval to let the City of Otsego use the City of Albertville's
compost site for 2011. Supervisor Tim Guimont and I met with Otsego staff a,nd suggest that
Albertville let Otsego use it on a trial basis in 2011 to better understand the volume that they
might have and any problems that might come along with the expanded use, lisers of the facility
must sign in when they use the site. The City of Otsego is also working with Elk River for that
half of the Ciiy. With Otsego's large lot configuration, it does not initially appear that the volume
will increase substantially.
KARTSON COVE
Attached is a draft RCA regarding acquiring the Woodside(Cenfra Homes) property by West
Wind Park. This RCA.is a way of framing the deal and I am looking for some feedback if the
Councit wants staff to negotiate the purchase. The attached RCA simply deals wi
the Iand� th acquisition of
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Mr,Dan Dixon,
PresidentlCEO
280 Evans Avenue N.VJ.
Elk River,Minnesota 55330
November 3,2009
Re: Albertville 47 Unit HUD Housing Project
Dear Mr. Dixon:
The City of Albertville supports Guardian Ang
el's funding application to HUD for a 47 Unit
. The Albertville City Council and I have tourae�o gh testimonials frosn
Senior Housing ProJect. earance an
impressed with y
o� operations both from an aesthetic app ears
or manY Y
e ver happy residents who reside there. As Y ties forvour res`dent e Over kand over again the
th y
to provide low income senior housing opport� eat facilities and programs. .
�uardian Angels name is recommended as rurming gz'
ears seniors have been asking the City to encourage development of low
For the past several y � as the � a e The City of
income senior housing so res�d�a te� HUD hous ng alva able and based on the recent market
Albertville currently does no y �e City of Albertville will
study there is definitely a need��ae a opment applica ion�hro ggh the City approval process.
work with you and expedite y
Further,the City w-ill look for ways to enhance yo�We��do to a s st youJand feel free to ha�e
place to live. Please]et me know if there is anythl g uestions!
a HUD representative contact me should the have any q
Best Regards,
Ron Klecker
� Mayor
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�b'Erti/1��� Mayor and Council Communication
lmor Twun W4g.1fy dtv UI�.
April 18, 2011
SUB.IECT: ADMINISTRATION- KARSTON COVE 3RD ADBITION
i RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO authorized the Mayor and City Clerk to sign a purchase agreement to acquire the
remaining undeveloped portion of Karston Cove 3rd Addition formerly owned by Woodside Homes
and now owned by CentraHomes, 1635 Coon Rapids Blvd Ste 260, Coon R.apids, MN 55433 for an
estimated amount not to exceed $337,000 plus acknowledge that the approximate $83,000 of
development fees paid will not be refunded. Funding for the purchase sha11 come from Centra Homes
cash escrow currently held by the City.
BACKGROUI\TD: Woodside Homes platted Karston Cove 3�d Addition with plans to develop 43 i
owner occupied townh.omes. 14 of the units were constructed on the north side of 64th Street NE and i
; the remaining 29 townhomes on the south side of the 64t" Street NE were never constructed nor was
water, sewer or street ever installed. Woodside eventually went bankrupt and the undeveloped property
south of 64th Street NE was conveyed to Centra Homes. During the bankruptcy, the City pulled
Woodside's Letter of Credit and we now hold approximately $450,000 of cash escrow to insure the
improvements get completed as per the plan.
It appears_the current market does not support construction of the remaining 29 town homes and now
Centra Homes has requested the City refund the remaining$4�0,000 of cash escrow in exchange for
them giving the City the land. Staff recommends accepting the land, however recommends refunding
3/4'h of the remaining cash escrow not to exceed $337,004 as the City will incur maintenance and
holding cost until the land develops.
Acquisition of the property would enable the City to modify or cancel the Development Agreement on
file.
The Council did express concern about increasing the amount of rental town homes should the
remaining 29 develop that way. The current Deveiopment Agreement does not restrict the current
Developer's ability to convert from owner occupied town homes to rental town homes.
ISStiES: Staff has concerns that the 14 town homes north of 64th Street may not be enough to sustain
the Homeowners Association; however this should not liznit this opportuniry.
FTNANCIAL CONSIDERATIONS: The City is holding approximately $450,000 of cash escrow to
guarantee or fund installation of public improvements for Karston Cove 3rd Addition. Refunding the
$337,000 an.d keeping the remainder does not affect the City's general fund budget and it appears to
adequate provide the needed cash to main#ain the property without any general fund assistance.
M:�Public Data�Requests for Council Actions(RCA)12011104]8 2011 Administrator Karston Cove 3rd Addition Purchase RCA.doc
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Agenda Item No. 7.F.3. i
Meeting Date Apri]18,201 I !
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Mayor and Council Communication—March 30, 2011
Finance— Operation Round-up Program Page 2 of 2
LEGAL CONSIDERA.TIONS: The City Council has the authority to negotiate and acquire land on a
case by case basis.
� Subu�itted by: Larry R. Kruse, City Administrator
� Attachments: None
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M:�Public DataUtequests for Council Actions{RCA)�2011`,04 18 2011 Administrator Karston Cove 3rd Addition Purchase RCA.doc
• Agenda Item No. 7.F.3.
Meeting Date April 18,2011