2016.03.15 EDA Work Session PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• WORK SESSION •
TUESDAY, MARCH 15, 2016
IMMEDIATELY FOLLOWING THE EDA SPECIAL MEETING
CRYSTAL CITY HALL
CONFERENCE ROOM A
Call to order *
Discuss the draft 2015 Annual Report and 2016 Work Program
. Other business *
4_ Adjournment *
*Items for which no materials are included in the packet
'"CR ECONOMIC DEVELOPMENT AUTHORITY
2015 Annual Report
Note: Throughout this document you will see references to "AMI" which is the median
annual household income in the Twin Cities metropolitan area. The median is the point
at which half the households are above and half are below. AMI was $86,600 in 2015.
The Economic Development Authority of the City of Crystal ("the EDA") formulates and
implements the city's redevelopment and housing improvement programs. It operates
under the provisions of Minnesota Statutes Chapter 469, and has powers similar to a
Housing & Redevelopment Authority. For residential property, EDA activities generally
involve using voluntary acquisitions to replace blighted, structurally substandard or
functionally obsolete houses; or providing assistance to homeowners to help them
make improvements to their houses. Multi- family and commercial/industrial
redevelopment are typically accomplished in larger, more complex projects made
possible by a combination of different funding sources; they also sometimes require
participation by multiple government agencies, non-profit organizations and businesses.
As in previous years, the EDA recommended and the Council approved an EDA levy to
provide funding for redevelopment activities.
The following are specific descriptions of 2015 EDA activities:
1. Single Family Residential - Scattered Site Redevelopment
Seven lots were sold in 2015. As of December 31, 2015, five had been
completed and sold, and two were under construction with completion
anticipated in spring 2016.
a) Lots Sold in 2015:
1. 5700 Regent (acquired in 2009) — house completed & sold
2. 65264 5t (acquired in 2014) — house completed & sold
3. 6601 62"d (acquired in 2012) — house completed & sold
4. 5255 Edgewood (acquired in 2009) — house completed & sold
5. 5715 Regent (acquired in 2009) — house completed & sold
6. 4553 Yates (acquired in 2009) — house under construction, for sale
7. 5626 Vera Cruz (acquired in 2008) - house under construction, for sale
b) EDA Lots for Sale as of December 31, 2015:
1. 3556 Major (received by donation in 2002, added to lot list in 2015)
2. 3122 Douglas Dr (acquired in 2003, added to lot list in 2015)
3. 3533 Lee (acquired in 2008)
2015 EDA ANNUAL REPORT PAGE 1 OF 4
K
3
I
4.
4. 4331 Vera Cruz (acquired in 2008)
5. 4901 Vera Cruz (acquired in 2009)
6. 5924 Elmhurst (acquired in 2012)
7. 4724 Lakeland (acquired from Hennepin County in 2015)
Lot sale data are summarized in the following attachments:
A. Map - Lots Sold 1998-2015
B. Chart - Demolitions vs Lot Sales 1998-2015
C. Chart - Lots Sold 1998-2015
D. Table - Lot Sale Details 2010-2015
Single Family Residential - Scattered Site Acquisition and Rehabilitation
The EDA does not acquire and renovate houses because city -managed rehab
projects are not a very cost-effective way of advancing the city's housing goals
when compared with other approaches. Instead, the city utilizes a combination of
regulatory tools, rehab incentives, and other agencies' programs to encourage
home renovations by homeowners, investors, contractors and others in the
private sector.
Single Family Residential - Home Improvement Incentive Rebates
In 1998, Crystal and four other communities partnered with the Greater
Metropolitan Housing Corporation (GMHC) to provide an incentive rebate for
improvements to owner occupied homes. Households up to 120% AMI are
eligible. Approximately 75% of program expenses are funded by available
increment from Housing TIF districts and the other 25% by the EDA levy.
88 Crystal homeowners used the rebate program in 2015. The expenditure
history and approximate 2015 locations are shown in Attachments E and F.
The total and average 2015 rebates are as follows:
TOTAL 2015
REBATES
$161,966
AVERAGE 2015
REBATE
$1,841
TOTAL PAID BY
HOMEOWNERS
$925,206
AVERAGE PAID BY
HOMEOWNER
$10,514
Single Family Residential — Community Fix -Up Fund
TOTAL COST OF ALL
2015 PROJECTS
$1,087,172
AVERAGE COST OF
2015 PROJECTS
$12,355
The EDA and the Minnesota Housing Finance Agency provide an interest rate
write-down for Community Fix -Up Fund home improvement loans. Households
up to 115% AMI are eligible. In 2015 there were 9 Crystal projects receiving a
total of $8,441 from state funds and $23,843 in available increment from
Crystal's Housing TIF districts.
2015 EDA ANNUAL REPORT PAGE 2 OF 4
5. Si!1gle Family, Residential — Deferred Home Improvement Loans
Since 1982, Crystal has used part of its federal Community Development Block
Grant (CDBG) allocation to provide interest-free home improvement loans to
homeowners up to 50% AMI. Repayment is deferred for 15 years and then
forgiven if the recipient continues to own and occupy the property throughout that
time. Homeowners from 50%-80% AMI are also eligible but those loans are
interest-bearing. Hennepin County administers this program for Crystal and eight
other cities (Brooklyn Center, Brooklyn Park, Edina, Hopkins, Maple Grove, New
Hope, Richfield and St. Louis Park).
Crystal's 2015 CDBG allocation was $92,927 and all of it was allocated to this
program. In addition to the allocation, the program also recaptures previously
loaned funds in cases where the homeowner sells or moves out within the 15
year term. The county may also use unexpended CDBG funds that become
available from other allocations. This means that available funding fluctuates
within each year and between years, but usually ends up being greater than the
amount of Crystal's annual allocation. Demand for the program also fluctuates,
meaning that eligible projects must sometimes be put on a waiting list until
additional funding becomes available.
In 2015, $138,520 was spent and $138,924 was committed for projects. Six
projects were started, two projects were completed and 15 properties were on
the waiting list at the end of the year. Of the eight other Hennepin County cities
with similar programs, only Hopkins, Richfield and St. Louis Park had more
activity than Crystal.
6. Multi -Family Residential Redevelopment
The Cavanagh (5401 51St Avenue North). In October 2012 the EDA acquired the
8.3 acre Cavanagh property from Robbinsdale Area Schools which had
determined that it no longer needed the property. In December 2012 the EDA
transferred the east 4 acres to the city for park purposes. In April 2013 the EDA
completed the demolition of the school with funding from Metropolitan Council for
asbestos abatement and Hennepin County for demolition. In June 2014 the
EDA sold the west 4.3 acres to a private developer (Dominium) for construction
of The Cavanagh, a four story, 130 unit, age -restricted apartment building. Unit
types range from 1 BR -1 BA to 2BR-2BA and all units are affordable to
households at or below 60% AMI. Construction began in summer 2014 and the
building opened for occupancy in August 2015. The building was fully leased in
November 2015 which is an extraordinarily fast lease -up (6-9 months is typical).
7. Commercial and Industrial Redevelopment
No EDA -involved development activity in 2015.
2015 EDA ANNUAL REPORT PAGE 3 OF 4
S. Land Banking for Future Redevelopment
In addition to the more immediate redevelopment activities discussed in Section
1, the EDA also takes advantage of opportunities to acquire and hold property
for future development. These parcels will be sold depending on market
conditions, site characteristics and the status of adjacent properties. As of
December 31, 2015 the EDA is holding the following vacant parcels for future
development:
1. 3240 Hampshire (acquired 2000)
■ Holding to see if owners of other vacant lots north of Gardendale
Subdivision (32xx Georgia) desire to develop their property
2. 3409 June (acquired 2003 - tax forfeit)
■ Holding for future development of 34xx June
3. 5901 56th (acquired 2008)
■ Holding until street reconstruction in 2016-2017
4. 482456 th (acquired 2009)
■ Holding until street reconstruction in 2016-2017
5. 4741 Welcome (acquired 2009)
■ Holding to see what happens with adjacent 4-plexes
B. 3401 & 3415 Douglas Dr (acquired 2009)
■ Will seek development proposals depending on market conditions
7 3443 Douglas Dr (acquired 2009)
■ Holding to see what happens with former medical clinic at 3501
Douglas Dr
8. 541735 th (acquired 2010 from MnDOT)
■ Holding to see what happens with house at 5409 35th
9. 5565 Vera Cruz (acquired 2011 - tax forfeit)
■ Holding until street reconstruction in 2016-2017
10. 3354 Douglas Dr and 6213 34th (acquired 2011)
■ Holding to see what happens with house at 3342 Douglas
11. 3443 Edgewood (acquired 2012 - tax forfeit)
■ Holding to see what happens with former medical clinic at 3501
Douglas Dr
12. 592656 th and 5612-18 Adair (acquired 2015 from Henn Co)
■ Holding until street reconstruction in 2016-2017
Please see the map of city and EDA -owned parcels as of December 31, 2015
(Attachment G).
2015 EDA ANNUAL REPORT PAGE 4 OF 4
Attachments
A, F and G
are not yet
complete
Crystal EDA Demolitions vs Lot Sales Since 1998
22
20
18
16
14
12
10
8
6
4
2
4 L L
1998 1999 2000 2001 2002 2003 2004 2005 2006
■ BLIGHTED HOUSES DEMOLISHED (88)
Attachment B
Mr1 [11 1 ! l.1 L11aJ
2007 2008 2009 2010 2011 2012 2013 2014
o LOTS SOLD FOR NEW HOME CONST (135)
2015
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
Crystal EDA - Residential Redevelopment - Annual Averages by Year of Lot Sale, 1998 -Present
-4-LOT PRICE -0 -HOUSE PRICE -A-2015 EMV
$0—
I ZDW 2003 2004 2005 2006 200- ZD015" 2009` 2010 201 1 2012 2013 2[114 2.15
YEAR OF LOT SALE
"There was only one lot sale in 1998 so it has been combined with 1999; there was only one lot sale in 2008 so it has been combined with 2007; and there were no lot sales in 2009.
"Lot Price "is the amount the builder paid for the vacant lot.
"House Price" is the amount the homebuyer paid for the finished house including the land value.
'EMV" is the January 2015 Estimated Market Value from the Henn Co Assessor. It provides an apples -to -apples comparison of the value of the completed houses regardless of when they were
built. The EMV is not yet available for the new homes built on lots that were sold in 2014 and 2015.
Attachment C
2010 EDA Lot Sales
13 LOTS SOLD:
AVERAGE
AVERAGE
AVERAGE
LOT AREA
LOT
LOT
HOUSE
FINISHED
HOUSE
HOUSE
ASSESSOR
FUNDING
BLDG STREET
BUILDER
SQ. FT
PRICE
SALE DATE
STYLE
SQ. FT.
PRICE
SALE DATE
EMV
TIF (2150)
4813 Idaho
Novak -Fleck
8,023
$55,000
Apr -10
split
1,230
$177,310
Jun -10
$184,000
TIF (2150)
4801 Idaho
Novak -Fleck
8,648
$55,000
Apr -10
split
1,230
$182,436
Jun -10
$205,000
REDEVEL
5309 34th PI
Novak -Fleck
10,026
$60,000
Apr -10
split
2,000
$203,255
Jun -10
$226,000
REDEVEL
5101 35th
Novak -Fleck
11,707
$55,000
Apr -10
split
2,000
$186,000
Jun -10
$205,000
REDEVEL
5132 34th PI
Novak -Fleck
9,929
$55,000
Apr -10
split
2,000
$222,365
Jun -10
$242,000
REDEVEL
3549 Regent
Novak -Fleck
10,500
$50,000
May -10
split
1,447
$189,690
Aug -10 _
$204,000
REDEVEL
5918 Idaho
Novak -Fleck
8,004
$45,000
Jun -10
split
1,230
$178,065
Aug -10
$192,000
TIF (2150)
3440 Regent
Novak -Fleck
10,492
$55,000
Jun -10
split
1,447
$205,088
Sep -10
$207,000
REDEVEL
4612 Hampshire
Novak -Fleck
8,610
$60,000
Jul -10
split
2,000
$231,268
Sep -10
$228,000
TIF (2150)
4807 Idaho
Novak -Fleck
8,023
$55,000
Aug -10
split
1,447
$198,000
Feb -11
$212,000
REDEVEL
5225 35th
Novak -Fleck
10,026
$55,000
Sep -10
split
1,447
$203,000
Nov -10
$215,000
TIF (2150)
6420 50th
Novak -Fleck
13,479
$60,000
Sep -10
split
1,167
$211,992
Dec -10
$233,000
TIF (2150)
5708 Elmhurst
Novak -Fleck
12,800
$45,000
Sep -10
split
1,447
$181,400
Nov -10
$182,000
13 LOTS SOLD:
AVERAGE
AVERAGE
AVERAGE
LOT AREA
LOT
LOT PRICE
SQ FT
PRICE
PER SQ FT
10,021
$54,231
$5.41
2011 EDA Lot Sales
13 HOUSES SOLD:
BLDG STREET
BUILDER
LOT AREA
SQ. FT,
LOT
PRICE
AVERAGE
AVERAGE
AVG HSE
HOUSE
PRICE
AVERAGE
ASSESSOR
EMV
FINISHED
HOUSE
PRICE PER
12,000
ASSESSOR
Jan -11
SQ FT
PRICE
FIN SQ FT
Dec -11
EMV
TIF (2150)
1,546
$197,682
$127.91
$30,000
$210.3+85
FUNDING
BLDG STREET
BUILDER
LOT AREA
SQ. FT,
LOT
PRICE
LOT
SALE DATE
HOUSE
STYLE
FINI HED
SQ. FT.
HOUSE
PRICE
HOUSE
SALE DATE
ASSESSOR
EMV
NSP
5906 Elmhurst
Habitat for Hum.
12,000
$1
Jan -11
rambler
1,588
$147,225
Dec -11
$207,000
TIF (2150)
5325 35th
Novak -Fleck
10,026
$30,000
Apr -11 '
split
1,230
$170,000
Oct -11
$204,000
REDEVEL
5401 35th
Novak -Fleck
10,026
$25,000
Apr -11
split
1,230
$170,000
Aug -11
$194,000
NSP
4259 Vera Cruz
Habitat for Hum.
12,552
$1
May -11
rambler
1,588
$162,150
Apr -12
$209,000
REDEVEL
5224 35th
Novak -Fleck
10,086
$50,000
Nov -11
split
1,600
$193,000
May -12
$211,000
Lot or house price excluded from average:
*lot price excluded from avg; discounted due to soil correction
or compliance with federal affordability rules
**house price excluded from avg, does not reflect work
completed by homebuyer, or similar factors
Attachment D (p. 1)
5 LOTS SOLD:
AVERAGE
AVG HSE
AVERAGE
AVERAGE
AVERAGE
LOT AREA
LOT
LOT PRICE
SQ FT
PRICE
PER SQ FT
10,086 1
$50,000
$4.96
5 HOUSES SOLD:
AVERAGE
AVERAGE
AVG HSE
FINISHED
HOUSE
PRICE PER
SQ FT
PRICE
FIN SQ FT
1,447
$177,667
$131.28
AVERAGE
ASSESSOR
EMV
$205, 0(l0
2012 EDA Lot Sales
Lot or house price excluded from average:
*lot price excluded from avg; discounted due to soil correction
or compliance with federal affordability rules
**house price excluded from avg; does not reflect work
completed by homebuyer, or similar factors
2013 EDA Lot Sales
14 LOTS SOLD:
AVERAGE
AVG HSE
LOT AREA
LOT
LOT
'IT5 j ,
FINISHED
HOUSE
--HOUSE
ASSE SOR
FUNDING
BLDG STREET
BUILDER
SQ. FT.
PRICE
SALE DATE
STYLE
SQ. FT.
PRICE
SALE DATE
EMV
REDEVEL
6620 46th
Novak -Fleck
9,840
$60,000
Feb -12
split
1,600
$198,800
Jun -12
$204,000
REDEVEL
3541 Regent
Novak -Fleck
10,500
$50,000
Apr -12
split
1,230
$185,900
Jul -12
$192,000
REDEVEL
3548 Regent
Novak -Fleck
10,500
$50,000
Apr -12
split
1,326
$188,800
Aug -12
$208,000
REDEVEL
4310 Zane
MT Builders
9,851
$45,000
May -12
two story
2,235
$235,300
Aug -12
$258,000
REDEVEL
4553 Hampshire
Novak -Fleck
7,488
$60,000
Jun -12
split
2,076
$229,755
Sep -12
$237,000
REDEVEL
5918 Kentucky
Novak -Fleck --7,500
10,125
$45,000
Jun -12
split
1,230
$192,000
Sep -12
$208,000
REDEVEL
7024 60th
Novak -Fleck
14,000
$55,000
Aug -12
split
1,326
$197,900
Nov -12
$205,000
CDBG
4306 Zane
MT Builders
9,851
$45,000
Sep -12
two story
1,581
$236,000
Jun -13
$223,000
REDEVEL
5533 Xenia
Novak -Fleck
8,040
$50,000
Oct -12
split
1,230
$195,000
Mar -13
$187,000
NSP
3528 Noble
Habitat for Hum.
7,603
$1
Dec -12
rambler
1,442
$192,821
Oct -13
$205,000
NSP
5116 35th
Habitat for Hum.
12,258
$1
Dec -12
rambler
1,348
$204,900
Jun -14 "
$258,000
NSP
4312 Brunswick
Habitat for Hum.
7,686
$1
Dec -12
rambler
1,442
$192,821
Nov -13 "
$192,000
NSP
5724 Perry
Habitat for Hum
11,247
$1
Dec -12
rambler
1,404
$199,900
Jun -15
$210,000
NSP
7041 60th
Habitat for Hurri7
18,030
$1
Dec -12
rambler
1,414
$199,900
Dec -14
$216,000
Lot or house price excluded from average:
*lot price excluded from avg; discounted due to soil correction
or compliance with federal affordability rules
**house price excluded from avg; does not reflect work
completed by homebuyer, or similar factors
2013 EDA Lot Sales
14 LOTS SOLD:
AVERAGE
AVG HSE
FINISHED
AVERAGE
AVERAGE
AVERAGE
PRICE
LOT AREA
LOT
LOT PRICE
$134.41
SQ FT
PRICE
PER SQ FT
$50,000
$50,000
9,730
$51,111
$5.25
13 HOUSES SOLD:
AVERAGE
AVERAGE
AVG HSE
FINISHED
HOUSE
PRICE PER
SQ FT
PRICE
FIN SQ FT
1,492
$206,606
$134.41
AVERAGE
ASSESSOR
EMV
$214, 50{7
FUNDING
TIF (2150)
BLDG STREET
6529 50th
BUILDER
Novak -Fleck
LOT AREA
SQ. FT.
11,610
LOT
PRICE
$60,000
LOT
SALE DATE
Feb -13
HOUSE
STYLE
split
(M-8 H E D
SQ. FT.
1,728
HOUSE
PRICE
$212,000
HOUSE
SALE DATE
Jun -13
ASSESSOR
EMV
$207,000
TIF (2150)
REDEVEL
4633 Douglas Dr
5527 Xenia
Novak -Fleck
Novak -Fleck
9,963
8,040
$50,000
$50,000
Apr -13
Apr -13
split
split
1,772
1,230
$212,000
$202,685
Aug -13
Jul -13
$208,000
$185,000
TIF (2150)
CDBG
REDEVEL
5548 Yates
4330 Zane
4343 Xenia
Novak -Fleck
MT Builders
MT Builders
10,575
9,851
10,825
$50,000
$40,000
$50,000
May -13
Jun -13
Jul -13
split
two story
two story
2,105
1,581
1,678
$236,900
$240,000
$246,000
Nov -13
Sep -13
Oct -13
$240,000
$231,000
$253,000
TIF (2150)
3548 Welcome
Novak -Fleck
8,960
$55,000
Jul -13
split
1,401
$246,220
Dec -13
$283,000
TIF (2150)
3556 Welcome
Novak -Fleck
8,308
$50,000
Sep -13
split
1,209
$222,912
Dec -13
$229,000
TIF (2150)
3564 Welcome
Novak -Fleck
8,875
$27,000
Sep -13
split
1,772
$195,000
Jan -14
$208,000
TIF (2150)
5657 Adair
Novak -Fleck
9,949
$50,000
Oct -13
split
2,105
$244,531
Mar -14
$242,000
REDEVEL
6516 Brentwood
Novak -Fleck
10,125
$50,000
Dec -13
split
1,772
$221,811
Apr -14
$222,000
Lot or house price excluded from average:
*lot price excluded from avg, discounted due to soil correction
or similar factors
Attachment D (p. 2)
11 LOTS SOLD:
AVERAGE
AVERAGE
AVERAGE
LOT AREA
LOT
LOT PRICE
SQ FT
PRICE
PER SQ FT
91735
$50,500
$5.14
11 HOUSES SOLD
AVERAGE AVERAGE AVG HSE AVERAGE
FINISHED HOUSE PRICE PER ASSESSOR
SQ FT PRICE FIN SQ FT EMV
1,529 $225,460 $135.13 $226,004
2014 EDA Lot Sales
FUNDING
BLDG STREET
BUILDER
LOT AREA
SQ. FT.
-LOT
PRICE
LOT
SALE DATE
MOUSE
STYLE
FIN19HED
SQ. FT.
HOU }E
PRICE
HOOSE
SALE DATE
ASSESSOR
EMV
REDEVEL
4720 Douglas Dr
Novak -Fleck
12,000
$50,000
Feb -14
split
1,237
$229,150
Dec -14
not yet avail
REDEVEL
5335 Corvallis
Novak -Fleck
12,058
$50,000
Mar -14
split
1,401
$229,365
Jul -14
not yet avail
REDEVEL
5332 50th
Novak -Fleck
10,000
$45,000
Apr -14
split
1,237
$222,900
Sep -14
not yet avail
REDEVEL
4349 Xenia
MT Builders
10,825
$50,000
Sep -14
two story
1,678
$249,725
Jan-15not
yet avail
REDEVEL
4326 Zane
MT Builders
9,851
$45,000
Sep -14
two Tory
1,615
$254,953
Aug -15
not yet avail
REDEVEL
5824 Regent
Novak -Fleck
10,125
$55,000
Sep -14
split
1,237
$236,900
Mar -15
not yet avail
6 LOTS SOLD:
AVERAGE
AVERAGE
AVERAGE
LOT AREA
LOT
LOT PRICE
SQ FT
PRICE
PER SQ FT
$4.55
10,810
$49,167
2015 EDA Lot Sales
6 HOUSES SOLD:
AVERAGE
AVERAGE
AVG HSE
FINISHED
HOUSE
PRICE PER
SQ FT
PRICE
FIN SQ FT
e 1,401
$237,166
$169.30
AVERAGE
ASSESSOR
EMV
not yet avail
FUNDING
REDEVEL
BLDG STREET
5700 Regent
BUILDER
Novak -Fleck
LOT AREA
SQ. FT.
10,125
LOT
PRICE
$50,000
LOT
SALE DATE
Mar -15
HOUSE
STYLE
split
FINISHED
SQ. FT.
1,237
HOUSE
PRICE
$252,000
HOUSE
SALE DATE
May -15
ASSESSOR
EMV
not yet avail
REDEVEL
6526 45th
Novak -Fleck
10,082
$60,000
Apr -15
rambler
1,181
$231,520
Jul -15
not yet avail
REDEVEL
6601 62nd
Tollberg Homes
10,498
$50,000
Apr -15
split
1,236
$224,900
Sep -15
not yet avail
REDEVEL
5255 Ed ewood
Novak -Fleck
7,989
$50,000
Jun -15
spliy
1,237
$241,639
Oct -15
not yet avail
REDEVEL
5715 Regent
Tollberg Homes
10,125
$50,000
Jul -15
split
1,372
$258,085
Oct -15
not yet avail
REDEVEL
4553 Yates
Day Constr.
6,470
$45,000
Aug -15
two story
1,659
not yet avail
REDEVEL
5626 Vera Cruz
Tollberg Homes
8,910
$50,000
Sep -15
split
1,372
not yet avail
7 LOTS SOLD:
AVERAGE
AVERAGE
AVERAGE
LOT AREA
LOT
LOT PRICE
SQ FT
PRICE
PER SQ FT
9,171
$50,714
$5.53
Attachment D (p. 3)
5 HOUSES SOLD:
AVERAGE
_
AVERAGE
AVG HSE
AVERAGE
FINISHED
HOUSE
PRICE PER
ASSESSOR
SQ FT
PRICE
FIN SQ FT
EMV
1,253
$241,629
$192.90
not yet avail
City of Crystal - Home Improvement Incentive Rebate - through December 30, 2015
Rebates Paid by Quarter
$120,000
$100,000 -
$80,000
$60,000
$40,000
$20,000 -
,. N CO V N CO N CO 'IT N CO V N M V N M V N M V N M V N M V N M V'
C� Ci Ci C� C� C� Ci C� Ci C� C7 C� C� Ci Ci Cl a a a Ci a a a C1 a a a a a 0 a 0 a
CO (O (O (O r— r— r- r— w w w w m O O O O O NN_ _ _M _M
O O O O O O O O O O O O O Co O O T
O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N. N N N N N N N N N N N N N N N N N N N N N N N N
On 4/0112009, rebate percentages were increased. 10% T 155yo, 12% a 20%, and 15% 2125%. On 1/01/2012, rebate percentages were reduced: 15%y 10%, 20% y 15%, and 25% y 20%.
AVERAGE QUARTERLY EXPENDITURES SINCE JANUARY 1, 2012 (when rebate percentages were reduced to current levels):
$710,500 REBATES PAID
$78,155 ADMINISTRATION FEES
$788,655 TOTAL EXPENDITURES SINCE JANUARY 1, 2012
16 NUMBER OF QUARTERS SINCE JANUARY 1, 2012
$49,291 AVERAGE QUARTERLY EXPENDITURES SINCE JANUARY 1, 2012
EXPENDITURES IN 2015:
$161,966 REBATES PAID
$17,816 ADMINISTRATION FEES
$179,782 2015 EXPENDITURES
$232,000 2015 BUDGET
$52,218 BUDGET UNEXPENDED
Attachment E
ADOPTED 2015 BUDGET:
$209,800 AVAILABLE INCREMENT FROM TIF DISTRICTS
$22,200 FROM EDA
$232,000 TOTAL 2015 BUDGET
PROPOSED 2016 BUDGET:
$177,600 AVAILABLE INCREMENT FROM TIF DISTRICTS
$22,200 FROM EDA
$199,800 TOTAL
CCRYSI'14VECONOMIC DEVELOPMENT AUTHORITY
�i.
2016 Work Program
Note: Throughout this document you will see references to "AMI" which is the median
annual household income in the Twin Cities metropolitan area. The median is the point
at which half the households are above and half are below. AMI was $86,600 in 2015.
Deferred Home Improvement Loans (administered by Hennepin County)
$88,406 budgeted expenditures from Community Development Block Grant
This ongoing program is administered by Hennepin County and offers no -interest
loans to Crystal homeowners below 50% AMI. The anticipated funding level
would typically allow four projects in Crystal per year, although this fluctuates
from year to year depending on a number of factors. The loans are fully forgiven
after 15 years provided the homeowner continues to own and occupy the
property. If the homeowner sells or moves, then the loan becomes due and
payable in full, and the recaptured funds go back into the program to assist other
homeowners. Repayment thus would be added to the city's $88,406 allocation
for 2016. The county's administrative costs are paid out of the county's CDBG
allocation and are not deducted from the city's $88,406 allocation.
Also available are deferred loans with a modest interest charge for homeowners
between 50% and 80% AMI, but these are funded by other sources.
Home Improvement Incentive Rebates (administered by GMHC)
$199,800 budgeted expenditures
• $177,600 from TIF Housing Districts
• $22,200 from EDA Fund
This ongoing program offers a rebate for homeowners who complete home
improvement projects. The program is administered by the non-profit Greater
Metropolitan Housing Corporation ("GMHC") at its Housing Resource Center
located at 2148 44th Avenue North in Minneapolis.
Homeowners with household income less than 50% AMI qualify for a 20%
rebate, 50%-80% AMI qualify for a 15% rebate and 80%-120% AMI qualify for a
10% rebate. Households over 120% AMI are not eligible. The application must
be made before beginning the project and the project must have a total cost of at
least $2,000. No property may receive rebates totaling more than $10,000 in one
year. Administrative fees paid to GMHC are 11 % of the rebates paid and the
admin fees are included in the planned expenditures figure above.
2016 EDA WORK PROGRAM PAGE 1 OF 3
3. Community Fix -Up Fund Interest Rate Buy -Down (administered by GMHC)
$50,000 budgeted expenditures
$25,000 from Minnesota Housing Finance Agency
$25,000 from TIF Housing Districts
This program writes down the interest rate for Crystal homeowners using
Community Fix -Up Fund loans from GMHC's Housing Resource Center.
Minimum loan is $2,000; maximum is $35,000. Maximum loan -to -value ratio is
110% of the after -rehab value. Maximum loan term is 10 years (for loans up to
$10,000) or 20 years (for loans over $10,000). The interest rate, normally 5.75%,
is discounted to 3%. Maximum household income is 115% AMI. There are no
administrative costs for the EDA.
4, Scattered Site Acquisition/Demolition and Lot Sales
$110,000 budgeted expenditures from EDA Fund
$140,000 budgeted revenues to EDA Fund
This would be a continuation of the city's longstanding acquisition, demolition and
lot sale program. The adopted budget is based on two properties being
acquired/demolished and three lots being sold for new house construction,
although actual property purchases and sales would depend on market
conditions and each transaction requires specific EDA board approval. The initial
2016 lot notice is attached showing 1 pending sale and 6 lots for sale.
5. Other Activities
a. Bass Lake Road Streetscape. This is an implementation item that
emerged from the Bass Lake Road station area planning process. Staff
will explore the options and actions needed to improve the streetscape
along Bass Lake Road between Bottineau Boulevard and West Broadway.
This may include the addition of parallel on -street parking in coordination
with Hennepin County and the adjacent property owners and businesses.
If the project can be planned, designed and approved in 2016 then
construction could occur in 2017. Funding sources may include TIF
District #2151 (Cub Foods) which will have available increment of
approximately $375,000 when it expires at the end of 2016.
b. Canadian Pacific Railroad Quiet Zone. This is an initiative intended to
improve the quality of life and property values in the Becker and Forest
neighborhoods which are significantly impacted by existing train horn
noise. A quiet zone application will likely be submitted in the second
quarter of 2016 to the Federal Railroad Administration which typically
takes 3-6 months to grant approval. This would be followed by detailed
design and funding determinations. Construction is possible in late 2016
but more likely in 2017.
2016 EDA WORK PROGRAM PAGE 2 OF 3
C. 3401-3415 Douglas Drive North. This is a 0.7 acre site at the northwest
corner of 34th Avenue and Douglas Drive. Staff will prepare a Request for
Proposals including desired development parameters for EDA review and
approval. Proposals would then be sought from developers for the
purchase and development of this site.
6. Fund Balance
The EDA board may authorize expenditure of part of its fund balances during the
year to respond to unforeseen opportunities. The amount available at any
particular time cannot be predicted because the fund balance varies throughout
the year depending on actual expenditures and revenue from property sales.
2016 EDA WORK PROGRAM PAGE 3 OF 3
Economic Development Authority Staff contact: Dan Olson
of the City of Crystaltel: 763-531-1142
4141 Douglas Dr Nfax: 763-531-1188
Crystal MN 55422 dan.olson@crystalmn.gov
2016 NOTICE OF LOT AVAILABILITY
The Economic Development Authority of the City of Crystal is seeking proposals from builders to purchase lots for
construction of new single family houses. For more information, please see the Request for Proposal packets
which may be found by clicking on "EDA Lots for Sale" under "What's Happening" at www.crystalmn.gov.
PROPERTY DIMENSIONS (approx.) LOT
ADDRESS width x depth area (sq. ft.) PRICE NOTES
3556 Major Ave N, Crystal MN 55422 35 x 128 4,566 $25,000
353a -Lee Ave N. GfVsta, I'IN 55422 4G x 125 5.720 t40.OGO SALE PENDING
4901 Vera Cruz Ave N, Crystal MN 55429 irregular 13,469 $50,000
4331 Vera Cruz Ave N, Crystal MN 55422 45 x 209 9,405 $50,000
5924 Elmhurst Ave N, Crystal MN 55428 75 x 160 12,000 $50,000
4724 Lakeland Ave N, Crystal MN 55429 irregular 11,491 $55,000
3122 Douglas Dr N, Crystal MN 55422 60 x 150 9,000 $55,000
" This is a narrow corner lot and the house may not be more than 20 feet wide. Unlike the other lots, the builder will
need to install water and sewer service stubs and pay the SAC fee. The lot price has already been discounted to
reflect these items.
GENERAL NOTES APPLICABLE TO ALL LOTS:
The EDA considers proposals on a "first-come, first-served" basis. The EDA board retains absolute discretion to decide
whether to accept any particular proposal or waive any of its guidelines.
Proposals must be submitted by state -licensed builders who have built at least three houses in Minnesota in the last five
years, or have equivalent experience acceptable to the EDA. The house may be built speculatively or for a specific buyer.
If you would be the house buyer, then your builder must submit the proposal; and if the proposal is accepted, then the EDA
would sell the lot to your builder.
The new house must be an owner -occupied, single family house. It must have at least three bedrooms, two bathrooms,
and a two -car garage (attached or detached, depending on the site). On a case-by-case basis, the EDA may also consider
the sale of a lot to provide a new location for an existing house currently located in Crystal. The moved house would have
to meet the general requirements described above, be brought up to current codes, and have a final value and long-term
viability comparable to a new house.
Builders may purchase a 6 -month option on a lot for $500, renewable for an additional 6 months for an additional $500.
The option provides the builder with exclusive rights to purchase the lot and build a house subject to the normal EDA
requirements and guidelines. As a condition of the option, the builder must list the lot with a to -be -built house on the MLS
for the duration of the option. The number of options is limited: The EDA will not approve additional options for a builder if
they already have more than 10% of the EDA's lots under option, and no more than 50% of the EDA's lots may be under
option at any time.