2017.09.19 EDA Work Session PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL WORK SESSION TUESDAY, SEPTEMBER 19, 2017 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL CONFERENCE ROOM A 1. Call to order * 2. Status update regarding 5900 56th Avenue North 3. Discuss opportunities for EDA properties at 5900-5926 56 th and 5612-5618 Adair Avenue North 4. Discuss home improvement programs for 2018 and potential contract with Center for Energy and the Environment 5. Other business * 6. Adjournment * *Items for which no materials are included in the packet
_____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: September 14, 2017 TO: Anne Norris, City Manager (for September 19 EDA work session) SUBJECT: Status update regarding 5900 56th Avenue North RELOCATION At this time three tenants have relocated and the fourth tenant is expected to relocate by the first week of October. EXPENDITURES Project expenditures to date are $366,000 which includes relocation of three of the four tenants. The major remaining expenses are relocation of the fourth tenant, asbestos abatement and demolition. We expect the total cost to be at or slightly below the estimate of $427,000 at time of acquisition. Also, there is the potential for Public Works to do the demolition in-house to further reduce expenditures, but this will depend on staff availability later this fall. POTENTIAL REHAB PARTNERS The following non-profits were contacted about a potential partnership with the EDA that would lead to a transformative rehab and long-term management of the property. Project for Pride in Living (PPL) Community Involvement Programs (CIP) Cornerstone TASKS Unlimited Journey Home Of these, only CIP and Journey Home were interested in looking at the property, and after their site visits, both determined that the 4-plex was not worth rehabbing. However, Journey Home is interested in developing the vacant lots along Adair west of the 4-plex, which will be discussed in a separate item at the September 19 work session. NEXT STEPS At the October 3 EDA meeting, staff intends to seek EDA approval to proceed with demolition of the building and marketing the lot for construction of a single family home. Staff invites any EDA member to request a tour of the building, if interested, prior to the October 3 meeting.
EDA STAFF REPORT 5900 56th Avenue North Update
_____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: September 14, 2017 TO: Anne Norris, City Manager (for September 19 EDA work session) SUBJECT: Discuss opportunities for EDA properties at 5900-5926 56 th and 5612-5618 Adair Avenue North The property in question is comprised of two separate acquisitions: Addresses Year Acq. Land Area Description Est. Cost 5926 56th and 5612-5618 Adair 2015 16,332 sf vac. land $ 20,000 5900 56th 2017 8,872 sf 4-plex $427,000
EDA STAFF REPORT 5900-5926 56th and 5612-5618 Adair
If the EDA determines that demolition of the 4-plex is the right path forward, then there are three options staff would like the EDA to discuss: A. Entire site (25,200 sf) developed with small-scale commercial or medium density residential B. Vacant lots on Adair (16,332 sf) developed with very small scale commercial or medium density residential; 4-plex lot (8,872 sf) developed with a new single family home C. Entire site developed with three single family homes *Note: The idea of expanding the development site to include one or two more houses north of the 4-plex on Zane gained little traction when previously discussed on May 16 and staff is not planning to discuss that idea further. Journey Home is interested in Option B, specifically the vacant Adair lots. They would develop three twin homes (six units) on the Adair lots while leaving the 4-plex lot for the EDA to sell for new single family home construction. Two or three of the units would be transitional housing for returning veterans or domestic abuse survivors. The other units would be market-rate. The development would be platted like a normal townhouse development with each unit having its own parcel of land and a common parcel containing drives, landscape areas, etc. that would be maintained by a homeowners association. The development would pay property taxes in the normal manner. Staff will have more information about this at the work session.
_____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: September 14, 2017 TO: Anne Norris, City Manager (for September 19 EDA work session) SUBJECT: Discuss home improvement programs for 2018 and potential contract with Center for Energy and the Environment As previously discussed, the impending closure of GMHC’s Housing Resource Center will require some changes in home improvement assistance programs offered by the EDA. The Center for Energy and the Environment (CEE) can provide many of the same services as the Housing Resource Center, albeit without a local office presence. Other cities with similar programs, such as Richfield, are preparing to contract with CEE to maintain their programs. The table on the following page summarizes the main differences between the existing 2017 programs with the Housing Resource Center and the proposed 2018 programs with CEE. Staff will have more detailed information to present at the work session.
EDA STAFF REPORT Home Improvement Programs for 2018
2017 2018 GMHC/HRC CEE (proposed) General Support $15,000 $0 Rebates $163,800 $163,800 Rebate Admin $36,000 $24,570 CFUF $25,000 $25,000 CFUF Admin $0 $500 TOTAL: $239,800 $213,870 Program changes: + Lower overall cost ($26,000) + Rebates would be secured as a deferred no-interest loan so city will recapture funds if owner sells or rents the property - Loss of personal service at local Housing Resource Center office (CEE is in DT Mpls) - Loss of no-cost in-home construction consultations (CEE does them but charges the homeowner $225) +/- Household income capped at 110% AMI instead of 120% AMI (to maximize use of TIF instead of EDA) +/- Flat rebate of 20% instead of graduated 10-15-20% depending on income