98-76S v.�(JS}�'� y �� -- 3} 1\\�� Council File # 1 O l�
Green Sheet # �'� $3'-1 �
RESOLUTION
� CITY OF $AINT PAUL, MINNESOTA
Presented By
Referred To �i \( t"/ Committee: Date
RESOLUTION MAICING CERTAIN DETERMINATIONS AND FINDINGS
NECESSARY FOR ACQUISITION OF PROPERTY AT 915-917 ASfILAND AVENUE
UNDER MINNESOTA STATUTE CHAPTER 469,
SUNIMIT UNIVERSITY DISTRICT 8
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WHEREAS, 915-917 Ashland Avenue is a vacant �our-plex consisting of all 1-bedroom units,
initially noted by the neighborhood as vacant and condemned by Fire Prevention in 1992
and which building evaluation at that time indicated was a candidate for rehabilitation
and the owner encouraged to initiate improvements; and
WHEREAS, a review in 1993 showed no rehabilitation work had been done and, in July of
1994, an Order to abate a Nuisance Building was issued by Public Health and the nuisance
condition was not abated resulting in a legislative hearing after which further action
was considered by the City Council regarding an Order to repair or demolish in 15 days;
and
WHEREAS, the neighborhood raised concerns about demolition as the building is considered
a prominent structure on the northeast corner o£ Ashland and Milton and offers a
significant presence in the neighborhood; and
WHEREAS, on February 8, 1995, the HRA Board adopted by Resolution No- 95-2/8-3
authorization to acquire 915-917 Ashland Avenue and authorization to schedule a Public
Hearing before the City Council to establish findings and determinations necessary to
acquire the Property through eminent domain; and
WHEREAS, acquisition by eminent domain was delayed due to commitments of the owner
indicating an intent to rehabilitate the structure; and
WHEREAS, the owner posted bond and was issued a building permit in July of 1996; said
permit was ultimately invalid due to insufficient funds paid for bond and which
improvements were never completed; and
WHEREAS, the current owner has a Confession of Judgment for unpaid taxes with the Ramsey
County Tax Department in the amount of approximately $4,853.01 which is currently in
default for the amount of taxes due for the second half of 1997 which is approximately
$910.93. `Phe amount of unpaid taxes includes outstanding unpaid sewer and water bills
against the property; and
WHEREA5, there are significant title problems with the property and potential unrecorded
interests which may create problems in obtaining marketable title as well as judgments
and mechanic's liens £iled against the property potentially in excess of $80,000; and
WAEREAS, the current owner has not completed rehabilitation of the building and it
continues to remain a vacant and blighting influence in the neighborhood; and
WHEREAS, staff has been unsuccessful in the past in negotiating with the owner for
acquisition of the property and eminent domain will be necessary to clear out existing
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title problems and provide marketability, also a ninety (90) day quick take will be
necessary in order to secure possession of the property and minimize further
deterioration of the structure which may make it infeasible to rehab; and to minimize
further hardship to adjacent property owners and neighborhood residents as a whole; and
WI3EREA5, staff had the property appraised in May o£ 1995, which appraisal will be
updated for condemnation and which at that time showed an estimate o£ value of $45,000;
and
WHEREAS, the Housing and Redevelopment Authority recognizes the need for a continuous
commitment from the City to work with non-proPit and for-profit developers in an effort
to reduce the blighting effect of vacant residential structures in the City's
neighborhoods by expanding home ownership opportunities, stabilizing neighborhoods and
increasing the City's tax base; and
WHEREAS, under Chapter 469 of the Minnesota Statutes, the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota, is authorized to engage in activities
relating to:
1. Housing projects and development (especially for low and moderate income people);
2. Removal of or grevention of the spread of conditions of blight or deterioration;
3. Bringing substandard buildings and improvements into compliance with public
standards;
4. Disposition of land for private development; and
5. Improving the tax base and financial stability of the community, and engaging in the
aforementioned activities when these needs cannot be met through reliance solely upon
private initiative and which can also be undertaken in targeted neighborhoods; and
WHEREAS, Minnesota Statutes Chapter 469 gives a specific range of powers including the
power to acquire land by the exercise of the power of eminent domain, sell land, engage
in planning, employ a variety of financing instruments, and establish land use controls;
and
WHEREAS, HRA has been unsuccessful in negotiating purchase agreements or completing the
closing process with the owners of 915-917 Ashland Avenue; and
WHEREAS, on February 4, 1998, the City Council conducted a public hearing on the
proposed acquisition in order that the property owner may attend and indicate hisJher
opposition or support for this proposed acquisition.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul in view of the
foregoing hereby adopted as findings that the public acquisition by the Housing and
Redevelopment Authority of the City of Saint Paul, Minnesota (HRA) of the property
identified as follows:
915-917 Ashland Avenue - Lot 15, Block 19, "SUmmit Park Addition
to St. Paul" except the North 50 feet.
is hereby approved in accordance with the following:
1. The City Wide Redevelopment Plan together with Minnesota Statutes 469.012 (6) and
(7), which includes acquisition, clearance or rehabilitation of blighting conditions to
allow for housing for low/moderate income £amilies together with acquisition, demolition
or rehabilitation providing improvements to a£ford maximum opportunity, is consistent
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with the sound needs of the community as a whole and provides economic stability for the
area.
2_ That, in accordance with the Housing and Community Development Act of 1974 and
Minnesota Statutes 117.52, the acquiring authority shall provide all relocation
assistance services, payments and benefits required by the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 as amended.
3. That acquisition of the above described property is hereby approved to be undertaken
by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, by
direct purchase or by the exercise of the power o£ eminent domain including use of quick
take. Any actions previously taken by the HI2A in this regard are hereby ratified and
affirmed.
4. That after commencement of condemnation action but prior to final action under
eminent domain, staff will request court approval to enter property to evaluate
conditions with an appraiser and a construction specialist.
5. That after review of the conditions and prior to final action, staff will present
findings to the City Council for final approval.
6. Tkat pursuant to Chapter 548, Laws of Minnesota 1984, it is Ytereby certified that
said property meets the conditions of Minnesota Statutes Section 272.02, Subd. 1(7) and
469.040, Subd. 1 and is exempt from property taxes until sold for private redevelopment.
Requested by Department of:
By:
Adopted by Council: Date lv\ \\ �9�{�' Form Appro d by City Attorney
Adoption Certified by Council Secretary
By:
By: ,__ �
Approved by M r: Date I� � Approved by Mayor
Council
BY� ,I � g
for Submission to
PED
Cindy Carlson Heins 66608
2-4-98
TOTAL # OF SIGNATURE PAGES
GREEN ET
I TI ATE —
� DEPARTMENT �IqECS
ASSIGN � CIIYATTOFNEY 1 �
NUNBERFOH
HOUTING L7]� C ty Clexk
OADEN � MpyOF (OR AS$ISTANn
(CLIP ALL LOCATIONS FOR SIGNATURE)
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, 9g-�Go
INITIAUDATE
C7TY COUNQL
�'�� S. Ki be
PW. R MGL SERVICES OIR.
Approval for public acquisition of 915-917 Ashland Avenue, Summit University District 8
Approve (A) or Reject (R)
__ PIANNING CAMMISSION _ G�VIL SERVICE COMMISSION
_ CIB COMMITTEE _
__ STAFF _
_ DISTRICTCqURT _
SUPPORTS WHICH COUNCIL O&IECTIVE7
PERSONAL SERVICE CONTRAC7S MUS7 ANSWER THE FOLLOWING QUESTIONS:
t. Has this person/tirm ever worketl under a contrect for this department?
YES NO
2. Has this personRirm ever been a ciry employee?
VES NO
3. Does this person/firm possess a skill not normally possessed by any curreM city employee?
YES NO
Explaln ell yes answers on separete sheet antl attach to 9�een sheet
INITIATING PROBLEM. ISSUE, OPPGIRTUNITV (Who. Whet. When, Where, Why):
915-917 Ashland Avenue is a vacant blighting property for which HRA adopted a
resolution in 1995 to acquire by eminent domain. The process was delayed when
the owner committed to making improvements. The improvements have not been completed
to date.
Acquisition of a vacant and blighting stxucture in a prominent location of the
Summit University District 8 area.
Owner has not completed the project improvements commited to and it is unlikely he
will do so. The property will remain a blighting influence and the condition of the
structure wi11 1ikely deteriorate.
TOTAL AMOUN7 OF7RANSACTION $ /✓ O�Q COS7/pEVENUE BUDGETED (CIRCLE ONE) YES NO
FUNDIfBG SOURCE �`-/�� � ��� �" ACTIVITY NUMBER ����OO �' 9�Q�oI —
FINANC�AL INFOHffATION: (EXPLAIN)
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ORIGINAL
Presented By
Referred To
Council File # ��
Green Sheet # � 3 �
Committee: Date
tL�
RESOLUTION MAICING CERTAIN DETERMINATIONS AND
NECESSARY FOR ACQUISITION OF PROPERTY AT 915-917 :
UNDER MINNESOTA STATUTE CHAPTER 469,
SiJMMIT UNIVERSITY DISTRZCT 8
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WHEREAS, 915-917 Ashland Avenue is a vacant four-plex consist' g of all 1-bedroom units,
initially noted by the neighborhood as vacant and condemned y Fire Prevention in 1992
and which building evaluation at that time indicated was a andidate Eor rehabilitation
and the owner encouraged to initiate improvements; and
WHEREAS, a review in 1993 showed no rehabilitation wor had been done and, in July of
1994, an Order to abate a 13uisance Building was issue by Public Health and the nuisance
condition was not abated resulting in a legislative earing after which further action
was considered by the City Council regarding an Or er to repair or demolish in 15 days;
and
WHEREAS, the neighborhood raised concerns abou demolition as the building is considered
a prominent structure on the northeast corne of Ashland and Milton and of£ers a
significant presence in the neighborhood; a d
WHEREAS, on February 8, 1995, the HRA Bo d adopted by Resolution No. 95-2(8-3
authorization to acquire 915-917 Ashlan Avenue and authorization to schedule a Public
Hearing before the City Council to esC blish findings and determinations necessary to
acquire the Property through eminent omain; and
WHEREAS, acquisition by eminent
indicating an intent to rehabili
WHEREAS, the owner posted bond
permit was ultimately invalid�
improvements were never compJ.'e
n was delayed due to commitments of the owner
the structure; and
was issued a building permit in July of 1996; said
to insufficient funds paid for bond and which
and
WHEREAS, the current owne has a Confession of .7udgment for unpaid taxes with the Ramsey
County Tax DepartmenC in he amount of approximately $4,853.01 which is currently in
default for the amount f taxes due for the second halE of 1997 which is approximately
$910.93. The amount unpaid taxes includes outstanding unpaid sewer and water bills
against the property� and
WHEREAS, there ar significant title problems with the property and potential unrecorded
interests which y create problems in obtaining marketable title as well as judgments
and mechanic's iens filed against the property potentially in excess of $80,000; and
WHEREAS, th�urrent owner has not completed rehabilitation of the building and it
continues t remain a vacant and blighting inEluence in the neighborhood; and
WHEREAS lstaff has been unsuccessful in the past in negotiating with the owner for
acquisition of the property and eminent domain will be necessary to clear out existing
RESOLUTION
CTTY OF SAINT PAUL, M
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ORIGINAL
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title problems and provide marketability, also a ninety (901 day quick take w' 1 be
necessary in order to secure possession of the property and minimize further
deterioration of the structure which may make it infeasible to rehab; and o minimize
further hardship to adjacent property owners and neighborhood residents a whole; and
WHEREAS, staff had the property apgraised in May of 1995, which appra'sal wi11 be
updated for condemnation and which at that time showed an estimate value of $45,000;
and
WHEREAS, the I3ousing and Redevelopment Authority recognizes the eed for a continuous
commitment from the City to work with non-profit and for-prof' developers in an effort
to reduce the blighting effect of vacant residential structu es in the City's
neighborhoods by expanding home ownership opportunities, st ilizing neighborhoods and
increasing the City's tax base; and
WHEREAS, under Chapter 464 of the Minnesota Statutes
Authority of the City of Saint Paul, Minnesota, is a
relating to:
1. Housing projects and development (especially
2. Removal of or prevention of the spread of
3. Bringing substandard buildings and
standards;
4. Disposition of land for private
Housing and Redevelopment
zed to engage in activities
low and moderate income people);
tions o£ blight or deterioration;
s into compliance with public
; and
5. Improving Che tax base and financ� stability of the community, and engaging in the
aforementioned activities when these eeds cannot be met through reliance solely upon
private initiative and which can al be undertaken in targeted neighborhoods; and
WHEREAS, Minnesota Statutes Chapt 469 gives a specific range of powers including the
power to acquire land by the exe cise of the power of eminent domain, sell land, engage
in planning, employ a variety o financing instruments, and establish land use controls;
and
WHEREAS, HRA has been unsucc ssful in negotiating purchase agreements or completing the
closing process with the o ers of 915-917 Ashland Avenue; and
WHEREAS, on February 4�98, the City Council conducted a public hearing on the
proposed acquisition in rder that the property owner may attend and indicate his/her
opposition or support r this proposed acquisition.
NOW THEREFORE, BE IT ESOLVED by the Council of the City of Saint Paul in view o£ the
£oregoing hereby ad ted as findings that the public acquisition by the Housing and
Redevelopment Auth rity of the City of Saint Paul, Minnesota (HRA) of the property
identified as fol ows:
915-917
to St.
is hereby
.nd Avenue - Lot 15, Block 19, "SUmmit Park Addition
except the North 50 feet.
in accordance with the following:
1. The Ci�y Wide Redevelopment Plan together with Minnesota Statutes 469.012 (6) and
(7), whif h includes acquisition, clearance or rehabilitation of blighting conditions to
allow foY housing for low/moderate income families together with acquisition, demolition
or rehabilitation providing improvements to afford maximum opportunity, is consistent
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with the sound needs o£ the community as a whole and provides economic stability �or the
area. /
2_ That, in accordance with the Housing and Community Development Act of 197 and
Minnesota Statutes 117.52, the acquiring authority shall provide all reloc tion
assistance services, payments and benefits required by the Uniform Reloc ion Assistance
and Real Property Acquisition Policies Act of 1970 as amended.
3. That acquisition of the above described property is hereby a
by the Housing and Redevelopment Authority of the City of Saint
direct purchase or by the exercise of the power of eminent doma
take. Any actions previously taken by the HRA in this regard ar
affirmed. /
. to be undertaken
Minnesota, by
uding use of quick
v ratified and
4. ThaY pursuant to Chapter 548, Laws of Minnesota 1984, i is hereby certified that
said pxoperty meets the conditions of Minnesota Statutes ection 272.02, Subd. 1(7) and
469.040, Subd. 1 and is exempt from property taxes unti sold for private redevelopment.
Absent
Requested by Department of:
B a��-
Adopted by Cauncil:f Date
adoption CertiEie�CS by Council Secretary
By:
ORIGINAL
Approved by�Niayor: Date
By:
Form Appr ved by City Attorney
By:
Approved by Mayor for Submission to
Council
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HOUS;NG AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA
—
REPORT TO THE COMMiSS10NERS DATE February 8, 1995
REGARDiNG Authorization to Acquire the Fottowing Properties under
the Houses to Homes Program:
1. 622 Aurora Avenue, Summit-University District 8
2. 915-917 Ashland Avenue, Summit-University District 8
and Authorization to Scheduie a Pubfic Hearing before the
City Council in Connection with the Acquisition of said
Parcels
Purpose
The purpose of this report is to request HRA Board approval of the following actions:
1. Authorize staff to acquire two vacant houses identified as Parcels 622 Aurora
Avenue and 915-917 Ashland Avenue under the Houses to Homes Program.
2. Authorize staff to schedule a Public Heazing before the City Council to
consider findings and make a determination necessary to acquire said Pazcels
through eminent domain; and
3. Authorize stafFto proceed with acquisition of said Pazcels throu�h eminent domain
� and a ninety-day quick take, subject to a Public Hearing and approva] by the City
Council of the necessary findings.
Background
On Pebruary 13, 1985 the HRA Board adopted by Resolution 85-2/13-1 a policy in which the FIIZA
acts as a pass-through for HUD/VA repossessed properties by acquiring such properties and
subsequently conveying them to local nonprofit developers for development to provide homeownership
oppominities. This policy was further encouraged by the Houses to Homes-Vacant Housing Strategy,
adopted by the HRA Boazd on April 9, 1991, by Resolution 91-4/9-3. The program recognizes the
need for a continuous commitment from the City to work with non-profit and for-profit developers in
an effort to reduce the blighting effect of vacant residentiai structures in the City's neighborhoods by
espanding homeownership opportunities, stabilizing neighborhoods and increasing the City's taY base.
Another direction identified in St. PauPs Housing Policies for the 1990's adopted by City Council
outlined the necessity to reduce unit density and increase the potential for homeownership. This was a
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priority point for smaller renial buildings where the units were efficiency or 1-bedroom and did not
mazket wetl or offer suitable housing for families where the market need exists. The size of the units
ofren limit the tenant selection opportunities and, to fill the buildings, o�mers overlooked problem
areas such as overcrowding and problem tenants. The result may be a constant tumover of tenants and
subsequent vacant buildings offering no stability for the neighborhood.
Project Description - 915-917 Ashland Avenue
915-417 Ashland is a vacant four-plex consistina of all 1-bedroom units. It was originally built in
1903 as a side-by-side duplex each unit having 3-bedrooms and about 1350 square feet for each unit.
415-917 Ashland Avenue was initially noted by the neighborhood as vacant in 1992, A vacant
building evaluation was done by PED staff on September 28, 1992 and indicated it was a candidate
for rehabilitation. Based on the evaluation information about City financing proo ams were sent to the
owner noted of record at that time. The property was again reviewed in September, 1993, no work
had been started. On July 20, 1994 an Order to Abate Nuisance Building was sent to the identified
property owners listing the deficiencies and noting they had until August 19, 1994 to conect the
problems. On August 26, 199A a Notice of Public Heazings was sent notifying the owners of the
Legislative Heazing on 5eptember 20, 1994 and subsequent City Council Hearing on September 28,
1994. Resolution for consideration was to repair or demolish within 15 days.
> A number of people within the neighborhood indicated that interest had been shown in purchasing and
rehabilitating the structure. It is a prominent building on the northeast corner of Ashland and Milton
and offers a significant presence for the neighborhood.
Neighborhood concerns were raised about this building being demolished. Council requested an
evaluation as to whether the property is in good structural condition and to evaluate whether or not it
is possible to be rehabbed. As a result of this concern, PED researched title and put some preliminary
numbers to�ether. These numbers are preliminary but aze based on a prior action that the Board
approved for a vacant four-plex at 420 North Lexina on.
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Comparison of Rehab and New Constncrion
Activities 915-417 Ashland New Construction
2 units-1350 sq/ft ea 1 houses-1400 sq/ft ea
New Construction - $70 sq/ft $ 98,OD0
(does not include garage)
Rehabilitation - $36 sq/ft $ 100,000
(does not include a garage)
Construction contingency 10,000 (10%) 4,900 (5%)
Total Construction Cost $ 110,000 $ 99,900
Soft Costs (holding costs, $ 27 (15%) $ 30,381 (19%)
construction interest, insur-
ance, taxes, developer fee,
etc)
Acquisition $ 45,000 $ 60,000
Total Development Costs $ 182,000 $ 190,281
915-919 Ashland Avenue
Possible Sources of Funds Amounts
Resale Proceeds $ 90,000 - $95,000
Family Housing Fund $ 10,000 (duplex)
Houses to Homes $ 6�,040 (duptes)
Additional Financing Gap $ 22,000 - $18,000
TOTAL $ 182,000
The demolition of the building could be from $15,000 plus resulting in a vaca�t piece of property.
The property would probably continue to remain vacant due to extensive title issues, tas liens, etc with
no potential benefit to the City or the neighborhood. In fact it is possible that the City would
continue to abate the property for clean-up. City's tax base would be greatly reduced since its current
tax value is noted as $65,700
l.) Title Search. The fee o�vners are Jo1�n A. and June M. Robinson. They sold the property
on a contract for deed to John Kratz and Bonita R. Akagawa on October 12, 1979. Kratz and
Aka�a�va sold the property on a contract for deed to Robert R. Henze and 7oann E. Rollings on
January 2, 1981. An amendment of the contract for deed between Kratz/Akagawa and Henze(Rollings
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was drafter June 30, 1989, extending the due date to 7une 30, 1992. We also understand that there
may be other outstanding interests through other unrecorded documents.
Taxes. There are delinquent taaces due for 1993 in the amount of $4,528 and 1994 in the
amount of $8,181.92, for a total of $13,433. The 1944 taYes are high because of an unpaid
water/sewer bill that was certified to the tazes in the amount of $4,447. The water department shows
that the plumbing leak and the water was shut-off on April I, 1993.
Project Description - 622 Aurora Avenue
Aurora-St. Anthony Area Block Club (ASAABC) and neighborhood residents request that the HRA
consider acquisition of 622 Aurora Avenue, a vacant single family house, to be rehabilitated and
resold for homeownership under the Houses to Homes Program. The property is located in the
UniversiTyJDale Redevelopment area where both private and City dollars have been heavily invested in
revitalization efforts and it is essential that these efforts continue.
622 Aurora Avenue is ad}acent to the UniversitylDale redevelopment effort and is a pivotal structure
for housing rehabilitation in the existing block. Property consists of a 2 1/2 story wood frame, large
4-bedroom single family home built in 1909 having 1700 square feet of living area.
Public Health has been working with the property owner since August, 1991. City Council passed a
Resolution in December, 1991, recommending the owner be granted six months to rehabilitate this
structure subject to posting a$2,000 bond (bond was submitted and forfeited).
On June 8, 1993, Councilmember Wilson introduced a resolution requesting further analysis of
remedial action to be taken on 622 Aurora. Staff proceeded to do the followin�:
I.) Aaalvze the condition of the propertv and feasibilitv of rehabilitation. Staff and ASAABC
contacted the owner and viewed the property. The o�mer had done some work on the property,
however, limited time and funds liindered progress. We worked with the owner for several months to
see if rehabilitation funds could be secured to finish the house. Due to title problems, numerous
judgements/liens, etc. the property owner was unable to qualify for assistance. Property currently has
delinquent tases of $15,739 which covers 1985-1994 (property is scheduled to be forfeited in August,
1995). The property has also been vacant during that same period.
2.) Prepare cost estimates for (al proceedina with demolition of the structure, and (b)
acguisition of the propertv and its rehabilitation. Demolition through the City under the Nuisance
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Ordinance is estimated at $9,000. These funds would then be assessed a�ainst a property already
encumbered with numerous liens. Current tax value is noted as $35,700 estimated rehabilitation cost
$60,000 ($35 sq/ft). Resale value is estimated at $6�,000. Based on these coststhe properry could be
done within the Houses to Homes Program guidelines.
3.) Make recommendation for remedial action respectina the orooertv. Proceed to acquire
and rehabilitate for homeownership. City/FIRA recognizes the problems created 6y vacant houses in
its neighborhoods, and also recognizes the need to take the initiative to convert these houses into safe,
decent and affordable housing for homeownership, thereby meetinb the objectives of the City
Council's St. Paul Housing Policies for the 1990s.
ASAABC and the neighborhood continues to indicate their desire to purchase and rehabilitate this
house which is located at a major gateway to the neighborhood. The owner had rejected all attempts
to allow the purchase of the property by ASAABC or other prospective purchasers, and continues to
allow the property to remain vacant with no additional improvements undenvay.
Transaction/Credit Information
ASAABC has been a significant partner in revitalizing their neighborhood and is very capable of
completing the rehabilitation providing the property for homeownership. They have undertaken the
rehabilitation of ten (10) properties and assisted in the demolition of five (5) others. Out of the ten
(10) properties, six (6) are sold, two (2) under construction and rivo (2) for sale. Final sale of 622
3 Aurora Avenue will need to be approved by the FII2.A Board.
915-917 Ashland also provides for the same type of housing undertaking. We will need to solicit
interest, the nei�hborhood non-profit and Habitat for Humanity has indicated some interest.
The general terms of funding provided under Houses to Homes include:
- Use of funds are structured as a grant to the project costs, and is made available only for the
cost differential between the after-reUab fair market value and the total development cost.
responsibility of Habitat.
- A second mortgage is placed a�ainst tlie property in the amount of City/I-IRA funds provided
to the project. The mortga�e requires rehabilitation and resale of the property to a homeowner
within one year. Mortgage is then passed on to the purchaser of the property which insures
homeownership for a period of ten (10) years. The loan is forgiven 1/10 each yeaz the
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properry is homesteaded.
Budget Information
622 Aurora and 915-917 Ashland: Funded from Vacant Building and Homestead Assistance Fund to
allow for acquisition, rehahilitation and/or demolition of vacant residential structures for resale for
homeownership under the Houses to Homes Program.
Vacant House/Homestead Fund
(CDBG 100-37801-xxxx-61283)
1994-1995 Budget
$1,140,000.00
Committed/Encumbered
Expended as of 1/31/95
In process (before committed)
Available for this action
Public Purpose
$ 493,317.56
$ 249,779.10
$ 240,000.00
$ 156,90334
To facilitate the removal of vacant and blighted buildings on the City and its neighborhoods. Create
quality, affordable housing, while stabilizing neighborhoods, increasing homeownership opportunities,
and increasing the City's tas base. The inadequate maintenance, physical damage and abandonment
of the house constitutes a fire hazud as well as a blight upon and detriment to the neighborhood.
j This negative influence affects the value of properties and creates a distraction from the positive
progress that has been made in rehabilitatin� vacant houses in the neiahborhood, requires remedial
public action.
Neighborhood Revie�v
The Aurora-St. Anthony Area Block Club, neighborhood residents and Summit-University District 8
members have indicated their support to undertake these activities.
Options
1. Acquire 622 Aurora and 915-917 Ashland for subsequent rehabilitation and resale for
homeownership undec This would further City's objectives of increasing
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homeownership, reducing unit density, removing vacanUblighting properties, stabilizing
neighborhoods, and increasing the City's tax base.
2. Allow the properties to be handled by the private market. This option will result in
the demolition of both properties creafing vacant lots that can not be developed
�vithout undertaking legal action to resolve the numerous title issues. Properties are
likely not to be developed because of the issues outlined which would be contrary to
the City's goal of increasing homeownership and tax base, etc.
Properties may continue to remain vacant with constant neighborhood complaints, City
involvement, time and funds related to complaints and potential abatement costs. This
has already been indicated by the previous non-performance of the property owners.
Recommendation
Staff recommends approval of proceeding with the acquisition of Parcels 622 Aurora Avenue and 915-
917 Ashland Avenue under the Houses to Homes Program. Staff also recommends approval of the
subsequent sale of 622 Aurora to Aurora-Saint Anthony Area Block for rehabilitation and resale for
homeownership. The acquisition of 915-917 Ashland Avenue for rehabilitation as a duplex or single
family home. To solicit developer through our for-profit or non-profit network for rehabilitation and
resale for homeownership. That subject to a public hearing before City Council these properties be
acquired through eminent domain by pursuing a ninety-day quick take, if necessary.
� Sheri Pemberton, 266-6615
""Housing Division
Sponsored By: Commissioner Blakey
7
96 •��
RESOLUTION NO. 95-2/8-
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RESOLUTION AUTHORIZING THE ACQUISITION OF PARCELS 915-917 ASIILAND
AVENUE AND 622 AURORA AVENUE, AND THE SCHEDULING OF A PUBLIC
HEARING BBFORE THE CITY COUNCIL TO MAKE NECESSARY FINDINC�S AND
DETERNffNATIONS AND TO AUTHORIZE PROCEEDING WITH ACQUISITION OF
SAID PROPERTIES THROUGH EMINENT DOMAIN,
SUMMIT-UNIVERSITY DISTRICT 8
WHEREAS, the City of Saint Paul recognizes the problems created by vacant housing units
and buildings in its neighborhoods, and also recognizes the need to take the initiative to
convert these units into safe, decent and affordable housing; and
WHEREAS, the City of Saint Paul supports increased volume in the treatment of vacant
buildings where possible by all developers, including for-profit and nonprofit entities, and
with these objectives in mind, the City needs to assist other potential developers of vacant
houses and take full advantage of the opportunity to rehabilitate vacant houses; and
WHEREAS, the Housing and Redevelopment Authority, by Resolution 91-4/9-3 adopted the
Houses to Homes - Vacant Housing Strategy by Resolution 92-12/14-3 Replacement Single
Family New Construction including program guidelines and budget amendments in order to
carry out the activities; and
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul has the
power to engage in development or redevelopment activities under Chapter 469 of the
Minnesota Statutes, Housing and Redevelopment Act, and by authority of said Act undertakes
activities relating to: i) housing projects and development, especially for low and moderate
�'income people; 2) removal and prevention of the spread of conditions of blight or
'deterioration; 3) bringing substandazd buildings and improvements into compliance with
public standards; 4) disposition of land for private development; and 5) improvin� the tax
base and the financial stability of the community; and engages in the aforementioned activities
when development and redevelopment needs cannot be met through reliance solely upon
private initiative, and may engage in said activities in targeted neighborhoods; and
WHEREAS, the Act gives a specific range of powers including the power to acquire land, sell
land, engage in planning, employ a variety of financing instruments, and establish land use
controls and additionally, it requires that activities be devised accordin� to a plan or program,
of which the Houses to Homes Program meets this criteria; and
WHEREAS, acquisition and redevelopment of the Parcels is being undertaken through the
Houses to Homes Program; and
WHEREAS, neighborhood residents believe 915-917 Ashland Avenue and 622 Aurora
Avenue are biighting properties in their respective neighborhoods, and requested the HRA to
consider acquisition of the properties for redevelopment as housing to be resold to a qualified
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homeowner; and
WHEREAS, it is estimated that 915-917 Ashland Avenue may be purchase for $45,000, and
622 Aurora Avenue may be purchased for $38,000; and
WHEREAS, in order to proceed with the acquisition of this pazcel, it may be necessary to
schedule a Public Hearing before the City Council to establish fmdings and determinations
necessary to acquire the Pazcels and to authorize acquisition of the Parcels through eminent
domain.
NOW, THEREFORE BE IT RESOLVED By the Housing and Redevelopment Authority of
the City of Saint Paul, that the public acquisition of the properties identified as:
915-917 Ashland Avenue, legally described as the North SO feet of Lot 15, Block 19,
Summit Park Addition to St. Paul, according to the recorded plat thereof, and situate
in Ramsey County, Minnesota, and
622 Aurora Avenue, legally described as Lot 1, Block 1, Butterfield Syndicate
Addition No. 1, according to the recorded plat thereof, and situate in Ramsey County,
Minnesota,
in the Summit-University District 8 area are hereby approved in accordance with the
following:
1. That 915-917 Ashland Avenue and 622 Aurora Avenue are vacant residential
structures which are a blighting influence on the neighborhoods in which they aze
located.
�`2. That the Houses to Homes and Replacement Single Family New Constnzction
� Progranis and the City Wide Redevelopment Plan together with Minnesota Statutes
469.012 (6)(7), which includes acquisition, clearance or rehabilitation of blighting
conditions to allow for housing for low/moderate income families together with
acquisition, demolition or rehabilitation providing improvements to afford maximum
opportunity, consistent with the sound needs of the community as a whole and
providing economic stability for the azea.
3. That Pazcels 915-917 Ashland Avenue and 622 Aurora Avenue would not be made
available for redevelopment without the undertaking of the Houses to Homes activities,
and were it not for said undertaking, the provision of the maximum housin;
opportunity and neighborhood stabilization would not be possible.
4. That in accordance with the Housing and Community Development Act of 1974 and
Minnesota Statute 117.52, in all acquisitions undertaken by an acquiring Authority,
said Authority shall provide all relocation assistance, services, payments, and benefits,
if required, in accordance with the Uniform Relocation Assistance and Real Property
Acquisition Act of 1970, as amended.
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5. That acquisition of the proper[ies identified as Pazcels 915-917 Ashland Avenue and
622 Aurora Avenue are hereby approved by direct purchase or exercise of the power
of eminent domain and quick-take, if necessary, subject to a Public Hearing before the
Saint Paul City Council.
6. That HRA staff is authorized to schedule a Public Heazing before the Ciry Council to
consider findings and authorize acquisition of the Parcels through eminent domain and
quick-take.
7. That subject to the Public Hearing and approval of findings by the City Council, the
HRA is hereby authorized to commence eminent domain and a ninety-day quick take
proceedings to acquire said Parcels.
8, That pursuant to Chapter 548, Laws of Minnesota 1984, it is hereby certified that said
Parcels meet the condition of Minnesota Statutes 272.02, Subdivision l, clause (7) and
469.040, Subdivision 1, that until sold for private redevelopment said Parcels are
exempt from property taxes.
9. That subsequent to a public hearing, the HRA will consider final Authorization of Sale
of Parcels 915-917 Ashland Avenue and 622 Aurora Avenue to a redeveloper for
redevelopment as housing to be resold to a qualified purchaser for home ownership.
FEB-11-1996 09�01 CITY OF ST PRUL CODE ENF
Memorandum
CITY OF SAINT PAUL
February 10, 1998
To: Charles Votel
Ftom_ Reneta Weiss
Re: 915-917 Ashland Avenue
612 228 3170 P.02i02
9 g-1 to
This is a four plex, wood frame structure which has suffered significant damage and
decay since the original Build'rng Deficiency Inspection was completed in July of 1994.
The interior of the dwelling is gutted. There aze numerous holes and weak spots in the
floor caused by rot and decay. The handiails and guardrails are missing, whicb
constitute a serious fiazard to anyone enteiing the dwelling.
This damage includes but is not liarited to: rotted fioor joists, subfloor and warped
flooring. There is extensive mold and znildew oa sheet rock installation. There is rust
and deterioration to the metal floor jacks and support beams. The entire plumbing
system has been stzipped and removed. The roof covering has lazge holes and is not
intact which allows the elements to enter causing snow and ice build up on the ftoors_
There is a pigeon infestation wtuch has resulted in an unsanitary condition of the attic
area, ie: feces and feathers.
It is our professional opinion that the above conditions constitute a serious health and
safety issue and have compromised it's structural integrity creating a nuisance condirion
which should be abated immediately.
Note: Photo�raphs aze available
RW:mI
TOTAL P.02
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1EPARiMEM/JFFICE/COUNpL
Police
bMqCT PERSON 8 PHONE
Chief Finney 29.
AUST BE ON COUNdL AGENDA BY (DATE)
TOTAL # OF SIGNATURE PAGES
✓�
N° 51750
c��.1�
� 12 29 9� GREEN SHEET
INITAVDAiE INITIAVDATE
� DEPARTMENT DIRECTOR � pTYCOUNCIL
ASSIGN �CITYATTORNEY OQTYCLERK
NIIMBER FON � BU�GET DIRECTOR � FIN. 8 MGT SERVICES DI ^
NOUTING
OPOER � y�AYOR (OR ASS�ST �
(CLIP ALL LOCATIONS FOR SIGNATURE)
Approval of the attached council resolution accepting a grant award for the
ECON Weed and Seed prograa in the amount of $280,000 for the period of
July 1, 1997 to June 30, 1999.
or
_ PLANNING CAMMISSION _ CIVIL SERVICE COMMISSION
_ CIBCOMMITTEE _
_ STAFF _
__ DISiRICTCOURT _
SUPPORTS WHICH COUNCILO&IECTIVE?
WhaC When.
PERSONAL SERVICE CONTRACTS MUST ANSWEP 7HE FOLLOWING QUESTIONS:
i. Has this person/fiim ever worketl under a cnntract for this department?
VES NO
2. Has this personttirm ever been a c�ry employee?
YES NO
3. Does this Oersonlfirm possess a skill not normally possessetl by any current city employea?
YES NO
Explai� a41 yes answers on aeperate aheet anA ettach to g�ean sheat
State legislative funding for the Weed and Seed program for the ECON neighborhood has been
awarded to the City of Saint Paul in the amount of $280,000. This resolution accepts the
grant.
The City would be able to access the grant award of $280,000.
DISADVANTAGES IFAPPROVED.
None
•L Nit Y
�.�;u 2 � �ss8
'�Y�R'� Or�'`• ,
�������e
JAM 16 1998
�p�� �� ��� �
The City of Saint Paul would not be able to access the funding for the Weed and Seed
program in the ECON neighborhood.
$18,350 in 1997, $121 in 1998 and
TOTALAMOUNTOFTflANSACTION $ �����XX� �ri 1999 COST/REVENUEBUDGETED(CIHCIEONE)
VES NO
s
FUNDIWGSOURCE 436 — Poiice S�PClal PTO�gC�� ACTNITYNUMBEH 34141
FINANCIALINFORFfATION (EXPLAIN)
S v.�(JS}�'� y �� -- 3} 1\\�� Council File # 1 O l�
Green Sheet # �'� $3'-1 �
RESOLUTION
� CITY OF $AINT PAUL, MINNESOTA
Presented By
Referred To �i \( t"/ Committee: Date
RESOLUTION MAICING CERTAIN DETERMINATIONS AND FINDINGS
NECESSARY FOR ACQUISITION OF PROPERTY AT 915-917 ASfILAND AVENUE
UNDER MINNESOTA STATUTE CHAPTER 469,
SUNIMIT UNIVERSITY DISTRICT 8
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WHEREAS, 915-917 Ashland Avenue is a vacant �our-plex consisting of all 1-bedroom units,
initially noted by the neighborhood as vacant and condemned by Fire Prevention in 1992
and which building evaluation at that time indicated was a candidate for rehabilitation
and the owner encouraged to initiate improvements; and
WHEREAS, a review in 1993 showed no rehabilitation work had been done and, in July of
1994, an Order to abate a Nuisance Building was issued by Public Health and the nuisance
condition was not abated resulting in a legislative hearing after which further action
was considered by the City Council regarding an Order to repair or demolish in 15 days;
and
WHEREAS, the neighborhood raised concerns about demolition as the building is considered
a prominent structure on the northeast corner o£ Ashland and Milton and offers a
significant presence in the neighborhood; and
WHEREAS, on February 8, 1995, the HRA Board adopted by Resolution No- 95-2/8-3
authorization to acquire 915-917 Ashland Avenue and authorization to schedule a Public
Hearing before the City Council to establish findings and determinations necessary to
acquire the Property through eminent domain; and
WHEREAS, acquisition by eminent domain was delayed due to commitments of the owner
indicating an intent to rehabilitate the structure; and
WHEREAS, the owner posted bond and was issued a building permit in July of 1996; said
permit was ultimately invalid due to insufficient funds paid for bond and which
improvements were never completed; and
WHEREAS, the current owner has a Confession of Judgment for unpaid taxes with the Ramsey
County Tax Department in the amount of approximately $4,853.01 which is currently in
default for the amount of taxes due for the second half of 1997 which is approximately
$910.93. `Phe amount of unpaid taxes includes outstanding unpaid sewer and water bills
against the property; and
WHEREA5, there are significant title problems with the property and potential unrecorded
interests which may create problems in obtaining marketable title as well as judgments
and mechanic's liens £iled against the property potentially in excess of $80,000; and
WAEREAS, the current owner has not completed rehabilitation of the building and it
continues to remain a vacant and blighting influence in the neighborhood; and
WHEREAS, staff has been unsuccessful in the past in negotiating with the owner for
acquisition of the property and eminent domain will be necessary to clear out existing
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title problems and provide marketability, also a ninety (90) day quick take will be
necessary in order to secure possession of the property and minimize further
deterioration of the structure which may make it infeasible to rehab; and to minimize
further hardship to adjacent property owners and neighborhood residents as a whole; and
WI3EREA5, staff had the property appraised in May o£ 1995, which appraisal will be
updated for condemnation and which at that time showed an estimate o£ value of $45,000;
and
WHEREAS, the Housing and Redevelopment Authority recognizes the need for a continuous
commitment from the City to work with non-proPit and for-profit developers in an effort
to reduce the blighting effect of vacant residential structures in the City's
neighborhoods by expanding home ownership opportunities, stabilizing neighborhoods and
increasing the City's tax base; and
WHEREAS, under Chapter 469 of the Minnesota Statutes, the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota, is authorized to engage in activities
relating to:
1. Housing projects and development (especially for low and moderate income people);
2. Removal of or grevention of the spread of conditions of blight or deterioration;
3. Bringing substandard buildings and improvements into compliance with public
standards;
4. Disposition of land for private development; and
5. Improving the tax base and financial stability of the community, and engaging in the
aforementioned activities when these needs cannot be met through reliance solely upon
private initiative and which can also be undertaken in targeted neighborhoods; and
WHEREAS, Minnesota Statutes Chapter 469 gives a specific range of powers including the
power to acquire land by the exercise of the power of eminent domain, sell land, engage
in planning, employ a variety of financing instruments, and establish land use controls;
and
WHEREAS, HRA has been unsuccessful in negotiating purchase agreements or completing the
closing process with the owners of 915-917 Ashland Avenue; and
WHEREAS, on February 4, 1998, the City Council conducted a public hearing on the
proposed acquisition in order that the property owner may attend and indicate hisJher
opposition or support for this proposed acquisition.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul in view of the
foregoing hereby adopted as findings that the public acquisition by the Housing and
Redevelopment Authority of the City of Saint Paul, Minnesota (HRA) of the property
identified as follows:
915-917 Ashland Avenue - Lot 15, Block 19, "SUmmit Park Addition
to St. Paul" except the North 50 feet.
is hereby approved in accordance with the following:
1. The City Wide Redevelopment Plan together with Minnesota Statutes 469.012 (6) and
(7), which includes acquisition, clearance or rehabilitation of blighting conditions to
allow for housing for low/moderate income £amilies together with acquisition, demolition
or rehabilitation providing improvements to a£ford maximum opportunity, is consistent
�� -� �
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with the sound needs of the community as a whole and provides economic stability for the
area.
2_ That, in accordance with the Housing and Community Development Act of 1974 and
Minnesota Statutes 117.52, the acquiring authority shall provide all relocation
assistance services, payments and benefits required by the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 as amended.
3. That acquisition of the above described property is hereby approved to be undertaken
by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, by
direct purchase or by the exercise of the power o£ eminent domain including use of quick
take. Any actions previously taken by the HI2A in this regard are hereby ratified and
affirmed.
4. That after commencement of condemnation action but prior to final action under
eminent domain, staff will request court approval to enter property to evaluate
conditions with an appraiser and a construction specialist.
5. That after review of the conditions and prior to final action, staff will present
findings to the City Council for final approval.
6. Tkat pursuant to Chapter 548, Laws of Minnesota 1984, it is Ytereby certified that
said property meets the conditions of Minnesota Statutes Section 272.02, Subd. 1(7) and
469.040, Subd. 1 and is exempt from property taxes until sold for private redevelopment.
Requested by Department of:
By:
Adopted by Council: Date lv\ \\ �9�{�' Form Appro d by City Attorney
Adoption Certified by Council Secretary
By:
By: ,__ �
Approved by M r: Date I� � Approved by Mayor
Council
BY� ,I � g
for Submission to
PED
Cindy Carlson Heins 66608
2-4-98
TOTAL # OF SIGNATURE PAGES
GREEN ET
I TI ATE —
� DEPARTMENT �IqECS
ASSIGN � CIIYATTOFNEY 1 �
NUNBERFOH
HOUTING L7]� C ty Clexk
OADEN � MpyOF (OR AS$ISTANn
(CLIP ALL LOCATIONS FOR SIGNATURE)
38�42
, 9g-�Go
INITIAUDATE
C7TY COUNQL
�'�� S. Ki be
PW. R MGL SERVICES OIR.
Approval for public acquisition of 915-917 Ashland Avenue, Summit University District 8
Approve (A) or Reject (R)
__ PIANNING CAMMISSION _ G�VIL SERVICE COMMISSION
_ CIB COMMITTEE _
__ STAFF _
_ DISTRICTCqURT _
SUPPORTS WHICH COUNCIL O&IECTIVE7
PERSONAL SERVICE CONTRAC7S MUS7 ANSWER THE FOLLOWING QUESTIONS:
t. Has this person/tirm ever worketl under a contrect for this department?
YES NO
2. Has this personRirm ever been a ciry employee?
VES NO
3. Does this person/firm possess a skill not normally possessed by any curreM city employee?
YES NO
Explaln ell yes answers on separete sheet antl attach to 9�een sheet
INITIATING PROBLEM. ISSUE, OPPGIRTUNITV (Who. Whet. When, Where, Why):
915-917 Ashland Avenue is a vacant blighting property for which HRA adopted a
resolution in 1995 to acquire by eminent domain. The process was delayed when
the owner committed to making improvements. The improvements have not been completed
to date.
Acquisition of a vacant and blighting stxucture in a prominent location of the
Summit University District 8 area.
Owner has not completed the project improvements commited to and it is unlikely he
will do so. The property will remain a blighting influence and the condition of the
structure wi11 1ikely deteriorate.
TOTAL AMOUN7 OF7RANSACTION $ /✓ O�Q COS7/pEVENUE BUDGETED (CIRCLE ONE) YES NO
FUNDIfBG SOURCE �`-/�� � ��� �" ACTIVITY NUMBER ����OO �' 9�Q�oI —
FINANC�AL INFOHffATION: (EXPLAIN)
�
ORIGINAL
Presented By
Referred To
Council File # ��
Green Sheet # � 3 �
Committee: Date
tL�
RESOLUTION MAICING CERTAIN DETERMINATIONS AND
NECESSARY FOR ACQUISITION OF PROPERTY AT 915-917 :
UNDER MINNESOTA STATUTE CHAPTER 469,
SiJMMIT UNIVERSITY DISTRZCT 8
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WHEREAS, 915-917 Ashland Avenue is a vacant four-plex consist' g of all 1-bedroom units,
initially noted by the neighborhood as vacant and condemned y Fire Prevention in 1992
and which building evaluation at that time indicated was a andidate Eor rehabilitation
and the owner encouraged to initiate improvements; and
WHEREAS, a review in 1993 showed no rehabilitation wor had been done and, in July of
1994, an Order to abate a 13uisance Building was issue by Public Health and the nuisance
condition was not abated resulting in a legislative earing after which further action
was considered by the City Council regarding an Or er to repair or demolish in 15 days;
and
WHEREAS, the neighborhood raised concerns abou demolition as the building is considered
a prominent structure on the northeast corne of Ashland and Milton and of£ers a
significant presence in the neighborhood; a d
WHEREAS, on February 8, 1995, the HRA Bo d adopted by Resolution No. 95-2(8-3
authorization to acquire 915-917 Ashlan Avenue and authorization to schedule a Public
Hearing before the City Council to esC blish findings and determinations necessary to
acquire the Property through eminent omain; and
WHEREAS, acquisition by eminent
indicating an intent to rehabili
WHEREAS, the owner posted bond
permit was ultimately invalid�
improvements were never compJ.'e
n was delayed due to commitments of the owner
the structure; and
was issued a building permit in July of 1996; said
to insufficient funds paid for bond and which
and
WHEREAS, the current owne has a Confession of .7udgment for unpaid taxes with the Ramsey
County Tax DepartmenC in he amount of approximately $4,853.01 which is currently in
default for the amount f taxes due for the second halE of 1997 which is approximately
$910.93. The amount unpaid taxes includes outstanding unpaid sewer and water bills
against the property� and
WHEREAS, there ar significant title problems with the property and potential unrecorded
interests which y create problems in obtaining marketable title as well as judgments
and mechanic's iens filed against the property potentially in excess of $80,000; and
WHEREAS, th�urrent owner has not completed rehabilitation of the building and it
continues t remain a vacant and blighting inEluence in the neighborhood; and
WHEREAS lstaff has been unsuccessful in the past in negotiating with the owner for
acquisition of the property and eminent domain will be necessary to clear out existing
RESOLUTION
CTTY OF SAINT PAUL, M
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ORIGINAL
q�-��
title problems and provide marketability, also a ninety (901 day quick take w' 1 be
necessary in order to secure possession of the property and minimize further
deterioration of the structure which may make it infeasible to rehab; and o minimize
further hardship to adjacent property owners and neighborhood residents a whole; and
WHEREAS, staff had the property apgraised in May of 1995, which appra'sal wi11 be
updated for condemnation and which at that time showed an estimate value of $45,000;
and
WHEREAS, the I3ousing and Redevelopment Authority recognizes the eed for a continuous
commitment from the City to work with non-profit and for-prof' developers in an effort
to reduce the blighting effect of vacant residential structu es in the City's
neighborhoods by expanding home ownership opportunities, st ilizing neighborhoods and
increasing the City's tax base; and
WHEREAS, under Chapter 464 of the Minnesota Statutes
Authority of the City of Saint Paul, Minnesota, is a
relating to:
1. Housing projects and development (especially
2. Removal of or prevention of the spread of
3. Bringing substandard buildings and
standards;
4. Disposition of land for private
Housing and Redevelopment
zed to engage in activities
low and moderate income people);
tions o£ blight or deterioration;
s into compliance with public
; and
5. Improving Che tax base and financ� stability of the community, and engaging in the
aforementioned activities when these eeds cannot be met through reliance solely upon
private initiative and which can al be undertaken in targeted neighborhoods; and
WHEREAS, Minnesota Statutes Chapt 469 gives a specific range of powers including the
power to acquire land by the exe cise of the power of eminent domain, sell land, engage
in planning, employ a variety o financing instruments, and establish land use controls;
and
WHEREAS, HRA has been unsucc ssful in negotiating purchase agreements or completing the
closing process with the o ers of 915-917 Ashland Avenue; and
WHEREAS, on February 4�98, the City Council conducted a public hearing on the
proposed acquisition in rder that the property owner may attend and indicate his/her
opposition or support r this proposed acquisition.
NOW THEREFORE, BE IT ESOLVED by the Council of the City of Saint Paul in view o£ the
£oregoing hereby ad ted as findings that the public acquisition by the Housing and
Redevelopment Auth rity of the City of Saint Paul, Minnesota (HRA) of the property
identified as fol ows:
915-917
to St.
is hereby
.nd Avenue - Lot 15, Block 19, "SUmmit Park Addition
except the North 50 feet.
in accordance with the following:
1. The Ci�y Wide Redevelopment Plan together with Minnesota Statutes 469.012 (6) and
(7), whif h includes acquisition, clearance or rehabilitation of blighting conditions to
allow foY housing for low/moderate income families together with acquisition, demolition
or rehabilitation providing improvements to afford maximum opportunity, is consistent
°�� —1 G
ioa
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with the sound needs o£ the community as a whole and provides economic stability �or the
area. /
2_ That, in accordance with the Housing and Community Development Act of 197 and
Minnesota Statutes 117.52, the acquiring authority shall provide all reloc tion
assistance services, payments and benefits required by the Uniform Reloc ion Assistance
and Real Property Acquisition Policies Act of 1970 as amended.
3. That acquisition of the above described property is hereby a
by the Housing and Redevelopment Authority of the City of Saint
direct purchase or by the exercise of the power of eminent doma
take. Any actions previously taken by the HRA in this regard ar
affirmed. /
. to be undertaken
Minnesota, by
uding use of quick
v ratified and
4. ThaY pursuant to Chapter 548, Laws of Minnesota 1984, i is hereby certified that
said pxoperty meets the conditions of Minnesota Statutes ection 272.02, Subd. 1(7) and
469.040, Subd. 1 and is exempt from property taxes unti sold for private redevelopment.
Absent
Requested by Department of:
B a��-
Adopted by Cauncil:f Date
adoption CertiEie�CS by Council Secretary
By:
ORIGINAL
Approved by�Niayor: Date
By:
Form Appr ved by City Attorney
By:
Approved by Mayor for Submission to
Council
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HOUS;NG AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA
—
REPORT TO THE COMMiSS10NERS DATE February 8, 1995
REGARDiNG Authorization to Acquire the Fottowing Properties under
the Houses to Homes Program:
1. 622 Aurora Avenue, Summit-University District 8
2. 915-917 Ashland Avenue, Summit-University District 8
and Authorization to Scheduie a Pubfic Hearing before the
City Council in Connection with the Acquisition of said
Parcels
Purpose
The purpose of this report is to request HRA Board approval of the following actions:
1. Authorize staff to acquire two vacant houses identified as Parcels 622 Aurora
Avenue and 915-917 Ashland Avenue under the Houses to Homes Program.
2. Authorize staff to schedule a Public Heazing before the City Council to
consider findings and make a determination necessary to acquire said Pazcels
through eminent domain; and
3. Authorize stafFto proceed with acquisition of said Pazcels throu�h eminent domain
� and a ninety-day quick take, subject to a Public Hearing and approva] by the City
Council of the necessary findings.
Background
On Pebruary 13, 1985 the HRA Board adopted by Resolution 85-2/13-1 a policy in which the FIIZA
acts as a pass-through for HUD/VA repossessed properties by acquiring such properties and
subsequently conveying them to local nonprofit developers for development to provide homeownership
oppominities. This policy was further encouraged by the Houses to Homes-Vacant Housing Strategy,
adopted by the HRA Boazd on April 9, 1991, by Resolution 91-4/9-3. The program recognizes the
need for a continuous commitment from the City to work with non-profit and for-profit developers in
an effort to reduce the blighting effect of vacant residentiai structures in the City's neighborhoods by
espanding homeownership opportunities, stabilizing neighborhoods and increasing the City's taY base.
Another direction identified in St. PauPs Housing Policies for the 1990's adopted by City Council
outlined the necessity to reduce unit density and increase the potential for homeownership. This was a
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priority point for smaller renial buildings where the units were efficiency or 1-bedroom and did not
mazket wetl or offer suitable housing for families where the market need exists. The size of the units
ofren limit the tenant selection opportunities and, to fill the buildings, o�mers overlooked problem
areas such as overcrowding and problem tenants. The result may be a constant tumover of tenants and
subsequent vacant buildings offering no stability for the neighborhood.
Project Description - 915-917 Ashland Avenue
915-417 Ashland is a vacant four-plex consistina of all 1-bedroom units. It was originally built in
1903 as a side-by-side duplex each unit having 3-bedrooms and about 1350 square feet for each unit.
415-917 Ashland Avenue was initially noted by the neighborhood as vacant in 1992, A vacant
building evaluation was done by PED staff on September 28, 1992 and indicated it was a candidate
for rehabilitation. Based on the evaluation information about City financing proo ams were sent to the
owner noted of record at that time. The property was again reviewed in September, 1993, no work
had been started. On July 20, 1994 an Order to Abate Nuisance Building was sent to the identified
property owners listing the deficiencies and noting they had until August 19, 1994 to conect the
problems. On August 26, 199A a Notice of Public Heazings was sent notifying the owners of the
Legislative Heazing on 5eptember 20, 1994 and subsequent City Council Hearing on September 28,
1994. Resolution for consideration was to repair or demolish within 15 days.
> A number of people within the neighborhood indicated that interest had been shown in purchasing and
rehabilitating the structure. It is a prominent building on the northeast corner of Ashland and Milton
and offers a significant presence for the neighborhood.
Neighborhood concerns were raised about this building being demolished. Council requested an
evaluation as to whether the property is in good structural condition and to evaluate whether or not it
is possible to be rehabbed. As a result of this concern, PED researched title and put some preliminary
numbers to�ether. These numbers are preliminary but aze based on a prior action that the Board
approved for a vacant four-plex at 420 North Lexina on.
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Comparison of Rehab and New Constncrion
Activities 915-417 Ashland New Construction
2 units-1350 sq/ft ea 1 houses-1400 sq/ft ea
New Construction - $70 sq/ft $ 98,OD0
(does not include garage)
Rehabilitation - $36 sq/ft $ 100,000
(does not include a garage)
Construction contingency 10,000 (10%) 4,900 (5%)
Total Construction Cost $ 110,000 $ 99,900
Soft Costs (holding costs, $ 27 (15%) $ 30,381 (19%)
construction interest, insur-
ance, taxes, developer fee,
etc)
Acquisition $ 45,000 $ 60,000
Total Development Costs $ 182,000 $ 190,281
915-919 Ashland Avenue
Possible Sources of Funds Amounts
Resale Proceeds $ 90,000 - $95,000
Family Housing Fund $ 10,000 (duplex)
Houses to Homes $ 6�,040 (duptes)
Additional Financing Gap $ 22,000 - $18,000
TOTAL $ 182,000
The demolition of the building could be from $15,000 plus resulting in a vaca�t piece of property.
The property would probably continue to remain vacant due to extensive title issues, tas liens, etc with
no potential benefit to the City or the neighborhood. In fact it is possible that the City would
continue to abate the property for clean-up. City's tax base would be greatly reduced since its current
tax value is noted as $65,700
l.) Title Search. The fee o�vners are Jo1�n A. and June M. Robinson. They sold the property
on a contract for deed to John Kratz and Bonita R. Akagawa on October 12, 1979. Kratz and
Aka�a�va sold the property on a contract for deed to Robert R. Henze and 7oann E. Rollings on
January 2, 1981. An amendment of the contract for deed between Kratz/Akagawa and Henze(Rollings
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was drafter June 30, 1989, extending the due date to 7une 30, 1992. We also understand that there
may be other outstanding interests through other unrecorded documents.
Taxes. There are delinquent taaces due for 1993 in the amount of $4,528 and 1994 in the
amount of $8,181.92, for a total of $13,433. The 1944 taYes are high because of an unpaid
water/sewer bill that was certified to the tazes in the amount of $4,447. The water department shows
that the plumbing leak and the water was shut-off on April I, 1993.
Project Description - 622 Aurora Avenue
Aurora-St. Anthony Area Block Club (ASAABC) and neighborhood residents request that the HRA
consider acquisition of 622 Aurora Avenue, a vacant single family house, to be rehabilitated and
resold for homeownership under the Houses to Homes Program. The property is located in the
UniversiTyJDale Redevelopment area where both private and City dollars have been heavily invested in
revitalization efforts and it is essential that these efforts continue.
622 Aurora Avenue is ad}acent to the UniversitylDale redevelopment effort and is a pivotal structure
for housing rehabilitation in the existing block. Property consists of a 2 1/2 story wood frame, large
4-bedroom single family home built in 1909 having 1700 square feet of living area.
Public Health has been working with the property owner since August, 1991. City Council passed a
Resolution in December, 1991, recommending the owner be granted six months to rehabilitate this
structure subject to posting a$2,000 bond (bond was submitted and forfeited).
On June 8, 1993, Councilmember Wilson introduced a resolution requesting further analysis of
remedial action to be taken on 622 Aurora. Staff proceeded to do the followin�:
I.) Aaalvze the condition of the propertv and feasibilitv of rehabilitation. Staff and ASAABC
contacted the owner and viewed the property. The o�mer had done some work on the property,
however, limited time and funds liindered progress. We worked with the owner for several months to
see if rehabilitation funds could be secured to finish the house. Due to title problems, numerous
judgements/liens, etc. the property owner was unable to qualify for assistance. Property currently has
delinquent tases of $15,739 which covers 1985-1994 (property is scheduled to be forfeited in August,
1995). The property has also been vacant during that same period.
2.) Prepare cost estimates for (al proceedina with demolition of the structure, and (b)
acguisition of the propertv and its rehabilitation. Demolition through the City under the Nuisance
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Ordinance is estimated at $9,000. These funds would then be assessed a�ainst a property already
encumbered with numerous liens. Current tax value is noted as $35,700 estimated rehabilitation cost
$60,000 ($35 sq/ft). Resale value is estimated at $6�,000. Based on these coststhe properry could be
done within the Houses to Homes Program guidelines.
3.) Make recommendation for remedial action respectina the orooertv. Proceed to acquire
and rehabilitate for homeownership. City/FIRA recognizes the problems created 6y vacant houses in
its neighborhoods, and also recognizes the need to take the initiative to convert these houses into safe,
decent and affordable housing for homeownership, thereby meetinb the objectives of the City
Council's St. Paul Housing Policies for the 1990s.
ASAABC and the neighborhood continues to indicate their desire to purchase and rehabilitate this
house which is located at a major gateway to the neighborhood. The owner had rejected all attempts
to allow the purchase of the property by ASAABC or other prospective purchasers, and continues to
allow the property to remain vacant with no additional improvements undenvay.
Transaction/Credit Information
ASAABC has been a significant partner in revitalizing their neighborhood and is very capable of
completing the rehabilitation providing the property for homeownership. They have undertaken the
rehabilitation of ten (10) properties and assisted in the demolition of five (5) others. Out of the ten
(10) properties, six (6) are sold, two (2) under construction and rivo (2) for sale. Final sale of 622
3 Aurora Avenue will need to be approved by the FII2.A Board.
915-917 Ashland also provides for the same type of housing undertaking. We will need to solicit
interest, the nei�hborhood non-profit and Habitat for Humanity has indicated some interest.
The general terms of funding provided under Houses to Homes include:
- Use of funds are structured as a grant to the project costs, and is made available only for the
cost differential between the after-reUab fair market value and the total development cost.
responsibility of Habitat.
- A second mortgage is placed a�ainst tlie property in the amount of City/I-IRA funds provided
to the project. The mortga�e requires rehabilitation and resale of the property to a homeowner
within one year. Mortgage is then passed on to the purchaser of the property which insures
homeownership for a period of ten (10) years. The loan is forgiven 1/10 each yeaz the
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properry is homesteaded.
Budget Information
622 Aurora and 915-917 Ashland: Funded from Vacant Building and Homestead Assistance Fund to
allow for acquisition, rehahilitation and/or demolition of vacant residential structures for resale for
homeownership under the Houses to Homes Program.
Vacant House/Homestead Fund
(CDBG 100-37801-xxxx-61283)
1994-1995 Budget
$1,140,000.00
Committed/Encumbered
Expended as of 1/31/95
In process (before committed)
Available for this action
Public Purpose
$ 493,317.56
$ 249,779.10
$ 240,000.00
$ 156,90334
To facilitate the removal of vacant and blighted buildings on the City and its neighborhoods. Create
quality, affordable housing, while stabilizing neighborhoods, increasing homeownership opportunities,
and increasing the City's tas base. The inadequate maintenance, physical damage and abandonment
of the house constitutes a fire hazud as well as a blight upon and detriment to the neighborhood.
j This negative influence affects the value of properties and creates a distraction from the positive
progress that has been made in rehabilitatin� vacant houses in the neiahborhood, requires remedial
public action.
Neighborhood Revie�v
The Aurora-St. Anthony Area Block Club, neighborhood residents and Summit-University District 8
members have indicated their support to undertake these activities.
Options
1. Acquire 622 Aurora and 915-917 Ashland for subsequent rehabilitation and resale for
homeownership undec This would further City's objectives of increasing
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homeownership, reducing unit density, removing vacanUblighting properties, stabilizing
neighborhoods, and increasing the City's tax base.
2. Allow the properties to be handled by the private market. This option will result in
the demolition of both properties creafing vacant lots that can not be developed
�vithout undertaking legal action to resolve the numerous title issues. Properties are
likely not to be developed because of the issues outlined which would be contrary to
the City's goal of increasing homeownership and tax base, etc.
Properties may continue to remain vacant with constant neighborhood complaints, City
involvement, time and funds related to complaints and potential abatement costs. This
has already been indicated by the previous non-performance of the property owners.
Recommendation
Staff recommends approval of proceeding with the acquisition of Parcels 622 Aurora Avenue and 915-
917 Ashland Avenue under the Houses to Homes Program. Staff also recommends approval of the
subsequent sale of 622 Aurora to Aurora-Saint Anthony Area Block for rehabilitation and resale for
homeownership. The acquisition of 915-917 Ashland Avenue for rehabilitation as a duplex or single
family home. To solicit developer through our for-profit or non-profit network for rehabilitation and
resale for homeownership. That subject to a public hearing before City Council these properties be
acquired through eminent domain by pursuing a ninety-day quick take, if necessary.
� Sheri Pemberton, 266-6615
""Housing Division
Sponsored By: Commissioner Blakey
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RESOLUTION NO. 95-2/8-
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RESOLUTION AUTHORIZING THE ACQUISITION OF PARCELS 915-917 ASIILAND
AVENUE AND 622 AURORA AVENUE, AND THE SCHEDULING OF A PUBLIC
HEARING BBFORE THE CITY COUNCIL TO MAKE NECESSARY FINDINC�S AND
DETERNffNATIONS AND TO AUTHORIZE PROCEEDING WITH ACQUISITION OF
SAID PROPERTIES THROUGH EMINENT DOMAIN,
SUMMIT-UNIVERSITY DISTRICT 8
WHEREAS, the City of Saint Paul recognizes the problems created by vacant housing units
and buildings in its neighborhoods, and also recognizes the need to take the initiative to
convert these units into safe, decent and affordable housing; and
WHEREAS, the City of Saint Paul supports increased volume in the treatment of vacant
buildings where possible by all developers, including for-profit and nonprofit entities, and
with these objectives in mind, the City needs to assist other potential developers of vacant
houses and take full advantage of the opportunity to rehabilitate vacant houses; and
WHEREAS, the Housing and Redevelopment Authority, by Resolution 91-4/9-3 adopted the
Houses to Homes - Vacant Housing Strategy by Resolution 92-12/14-3 Replacement Single
Family New Construction including program guidelines and budget amendments in order to
carry out the activities; and
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul has the
power to engage in development or redevelopment activities under Chapter 469 of the
Minnesota Statutes, Housing and Redevelopment Act, and by authority of said Act undertakes
activities relating to: i) housing projects and development, especially for low and moderate
�'income people; 2) removal and prevention of the spread of conditions of blight or
'deterioration; 3) bringing substandazd buildings and improvements into compliance with
public standards; 4) disposition of land for private development; and 5) improvin� the tax
base and the financial stability of the community; and engages in the aforementioned activities
when development and redevelopment needs cannot be met through reliance solely upon
private initiative, and may engage in said activities in targeted neighborhoods; and
WHEREAS, the Act gives a specific range of powers including the power to acquire land, sell
land, engage in planning, employ a variety of financing instruments, and establish land use
controls and additionally, it requires that activities be devised accordin� to a plan or program,
of which the Houses to Homes Program meets this criteria; and
WHEREAS, acquisition and redevelopment of the Parcels is being undertaken through the
Houses to Homes Program; and
WHEREAS, neighborhood residents believe 915-917 Ashland Avenue and 622 Aurora
Avenue are biighting properties in their respective neighborhoods, and requested the HRA to
consider acquisition of the properties for redevelopment as housing to be resold to a qualified
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homeowner; and
WHEREAS, it is estimated that 915-917 Ashland Avenue may be purchase for $45,000, and
622 Aurora Avenue may be purchased for $38,000; and
WHEREAS, in order to proceed with the acquisition of this pazcel, it may be necessary to
schedule a Public Hearing before the City Council to establish fmdings and determinations
necessary to acquire the Pazcels and to authorize acquisition of the Parcels through eminent
domain.
NOW, THEREFORE BE IT RESOLVED By the Housing and Redevelopment Authority of
the City of Saint Paul, that the public acquisition of the properties identified as:
915-917 Ashland Avenue, legally described as the North SO feet of Lot 15, Block 19,
Summit Park Addition to St. Paul, according to the recorded plat thereof, and situate
in Ramsey County, Minnesota, and
622 Aurora Avenue, legally described as Lot 1, Block 1, Butterfield Syndicate
Addition No. 1, according to the recorded plat thereof, and situate in Ramsey County,
Minnesota,
in the Summit-University District 8 area are hereby approved in accordance with the
following:
1. That 915-917 Ashland Avenue and 622 Aurora Avenue are vacant residential
structures which are a blighting influence on the neighborhoods in which they aze
located.
�`2. That the Houses to Homes and Replacement Single Family New Constnzction
� Progranis and the City Wide Redevelopment Plan together with Minnesota Statutes
469.012 (6)(7), which includes acquisition, clearance or rehabilitation of blighting
conditions to allow for housing for low/moderate income families together with
acquisition, demolition or rehabilitation providing improvements to afford maximum
opportunity, consistent with the sound needs of the community as a whole and
providing economic stability for the azea.
3. That Pazcels 915-917 Ashland Avenue and 622 Aurora Avenue would not be made
available for redevelopment without the undertaking of the Houses to Homes activities,
and were it not for said undertaking, the provision of the maximum housin;
opportunity and neighborhood stabilization would not be possible.
4. That in accordance with the Housing and Community Development Act of 1974 and
Minnesota Statute 117.52, in all acquisitions undertaken by an acquiring Authority,
said Authority shall provide all relocation assistance, services, payments, and benefits,
if required, in accordance with the Uniform Relocation Assistance and Real Property
Acquisition Act of 1970, as amended.
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5. That acquisition of the proper[ies identified as Pazcels 915-917 Ashland Avenue and
622 Aurora Avenue are hereby approved by direct purchase or exercise of the power
of eminent domain and quick-take, if necessary, subject to a Public Hearing before the
Saint Paul City Council.
6. That HRA staff is authorized to schedule a Public Heazing before the Ciry Council to
consider findings and authorize acquisition of the Parcels through eminent domain and
quick-take.
7. That subject to the Public Hearing and approval of findings by the City Council, the
HRA is hereby authorized to commence eminent domain and a ninety-day quick take
proceedings to acquire said Parcels.
8, That pursuant to Chapter 548, Laws of Minnesota 1984, it is hereby certified that said
Parcels meet the condition of Minnesota Statutes 272.02, Subdivision l, clause (7) and
469.040, Subdivision 1, that until sold for private redevelopment said Parcels are
exempt from property taxes.
9. That subsequent to a public hearing, the HRA will consider final Authorization of Sale
of Parcels 915-917 Ashland Avenue and 622 Aurora Avenue to a redeveloper for
redevelopment as housing to be resold to a qualified purchaser for home ownership.
FEB-11-1996 09�01 CITY OF ST PRUL CODE ENF
Memorandum
CITY OF SAINT PAUL
February 10, 1998
To: Charles Votel
Ftom_ Reneta Weiss
Re: 915-917 Ashland Avenue
612 228 3170 P.02i02
9 g-1 to
This is a four plex, wood frame structure which has suffered significant damage and
decay since the original Build'rng Deficiency Inspection was completed in July of 1994.
The interior of the dwelling is gutted. There aze numerous holes and weak spots in the
floor caused by rot and decay. The handiails and guardrails are missing, whicb
constitute a serious fiazard to anyone enteiing the dwelling.
This damage includes but is not liarited to: rotted fioor joists, subfloor and warped
flooring. There is extensive mold and znildew oa sheet rock installation. There is rust
and deterioration to the metal floor jacks and support beams. The entire plumbing
system has been stzipped and removed. The roof covering has lazge holes and is not
intact which allows the elements to enter causing snow and ice build up on the ftoors_
There is a pigeon infestation wtuch has resulted in an unsanitary condition of the attic
area, ie: feces and feathers.
It is our professional opinion that the above conditions constitute a serious health and
safety issue and have compromised it's structural integrity creating a nuisance condirion
which should be abated immediately.
Note: Photo�raphs aze available
RW:mI
TOTAL P.02
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1EPARiMEM/JFFICE/COUNpL
Police
bMqCT PERSON 8 PHONE
Chief Finney 29.
AUST BE ON COUNdL AGENDA BY (DATE)
TOTAL # OF SIGNATURE PAGES
✓�
N° 51750
c��.1�
� 12 29 9� GREEN SHEET
INITAVDAiE INITIAVDATE
� DEPARTMENT DIRECTOR � pTYCOUNCIL
ASSIGN �CITYATTORNEY OQTYCLERK
NIIMBER FON � BU�GET DIRECTOR � FIN. 8 MGT SERVICES DI ^
NOUTING
OPOER � y�AYOR (OR ASS�ST �
(CLIP ALL LOCATIONS FOR SIGNATURE)
Approval of the attached council resolution accepting a grant award for the
ECON Weed and Seed prograa in the amount of $280,000 for the period of
July 1, 1997 to June 30, 1999.
or
_ PLANNING CAMMISSION _ CIVIL SERVICE COMMISSION
_ CIBCOMMITTEE _
_ STAFF _
__ DISiRICTCOURT _
SUPPORTS WHICH COUNCILO&IECTIVE?
WhaC When.
PERSONAL SERVICE CONTRACTS MUST ANSWEP 7HE FOLLOWING QUESTIONS:
i. Has this person/fiim ever worketl under a cnntract for this department?
VES NO
2. Has this personttirm ever been a c�ry employee?
YES NO
3. Does this Oersonlfirm possess a skill not normally possessetl by any current city employea?
YES NO
Explai� a41 yes answers on aeperate aheet anA ettach to g�ean sheat
State legislative funding for the Weed and Seed program for the ECON neighborhood has been
awarded to the City of Saint Paul in the amount of $280,000. This resolution accepts the
grant.
The City would be able to access the grant award of $280,000.
DISADVANTAGES IFAPPROVED.
None
•L Nit Y
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'�Y�R'� Or�'`• ,
�������e
JAM 16 1998
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The City of Saint Paul would not be able to access the funding for the Weed and Seed
program in the ECON neighborhood.
$18,350 in 1997, $121 in 1998 and
TOTALAMOUNTOFTflANSACTION $ �����XX� �ri 1999 COST/REVENUEBUDGETED(CIHCIEONE)
VES NO
s
FUNDIWGSOURCE 436 — Poiice S�PClal PTO�gC�� ACTNITYNUMBEH 34141
FINANCIALINFORFfATION (EXPLAIN)
S v.�(JS}�'� y �� -- 3} 1\\�� Council File # 1 O l�
Green Sheet # �'� $3'-1 �
RESOLUTION
� CITY OF $AINT PAUL, MINNESOTA
Presented By
Referred To �i \( t"/ Committee: Date
RESOLUTION MAICING CERTAIN DETERMINATIONS AND FINDINGS
NECESSARY FOR ACQUISITION OF PROPERTY AT 915-917 ASfILAND AVENUE
UNDER MINNESOTA STATUTE CHAPTER 469,
SUNIMIT UNIVERSITY DISTRICT 8
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WHEREAS, 915-917 Ashland Avenue is a vacant �our-plex consisting of all 1-bedroom units,
initially noted by the neighborhood as vacant and condemned by Fire Prevention in 1992
and which building evaluation at that time indicated was a candidate for rehabilitation
and the owner encouraged to initiate improvements; and
WHEREAS, a review in 1993 showed no rehabilitation work had been done and, in July of
1994, an Order to abate a Nuisance Building was issued by Public Health and the nuisance
condition was not abated resulting in a legislative hearing after which further action
was considered by the City Council regarding an Order to repair or demolish in 15 days;
and
WHEREAS, the neighborhood raised concerns about demolition as the building is considered
a prominent structure on the northeast corner o£ Ashland and Milton and offers a
significant presence in the neighborhood; and
WHEREAS, on February 8, 1995, the HRA Board adopted by Resolution No- 95-2/8-3
authorization to acquire 915-917 Ashland Avenue and authorization to schedule a Public
Hearing before the City Council to establish findings and determinations necessary to
acquire the Property through eminent domain; and
WHEREAS, acquisition by eminent domain was delayed due to commitments of the owner
indicating an intent to rehabilitate the structure; and
WHEREAS, the owner posted bond and was issued a building permit in July of 1996; said
permit was ultimately invalid due to insufficient funds paid for bond and which
improvements were never completed; and
WHEREAS, the current owner has a Confession of Judgment for unpaid taxes with the Ramsey
County Tax Department in the amount of approximately $4,853.01 which is currently in
default for the amount of taxes due for the second half of 1997 which is approximately
$910.93. `Phe amount of unpaid taxes includes outstanding unpaid sewer and water bills
against the property; and
WHEREA5, there are significant title problems with the property and potential unrecorded
interests which may create problems in obtaining marketable title as well as judgments
and mechanic's liens £iled against the property potentially in excess of $80,000; and
WAEREAS, the current owner has not completed rehabilitation of the building and it
continues to remain a vacant and blighting influence in the neighborhood; and
WHEREAS, staff has been unsuccessful in the past in negotiating with the owner for
acquisition of the property and eminent domain will be necessary to clear out existing
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title problems and provide marketability, also a ninety (90) day quick take will be
necessary in order to secure possession of the property and minimize further
deterioration of the structure which may make it infeasible to rehab; and to minimize
further hardship to adjacent property owners and neighborhood residents as a whole; and
WI3EREA5, staff had the property appraised in May o£ 1995, which appraisal will be
updated for condemnation and which at that time showed an estimate o£ value of $45,000;
and
WHEREAS, the Housing and Redevelopment Authority recognizes the need for a continuous
commitment from the City to work with non-proPit and for-profit developers in an effort
to reduce the blighting effect of vacant residential structures in the City's
neighborhoods by expanding home ownership opportunities, stabilizing neighborhoods and
increasing the City's tax base; and
WHEREAS, under Chapter 469 of the Minnesota Statutes, the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota, is authorized to engage in activities
relating to:
1. Housing projects and development (especially for low and moderate income people);
2. Removal of or grevention of the spread of conditions of blight or deterioration;
3. Bringing substandard buildings and improvements into compliance with public
standards;
4. Disposition of land for private development; and
5. Improving the tax base and financial stability of the community, and engaging in the
aforementioned activities when these needs cannot be met through reliance solely upon
private initiative and which can also be undertaken in targeted neighborhoods; and
WHEREAS, Minnesota Statutes Chapter 469 gives a specific range of powers including the
power to acquire land by the exercise of the power of eminent domain, sell land, engage
in planning, employ a variety of financing instruments, and establish land use controls;
and
WHEREAS, HRA has been unsuccessful in negotiating purchase agreements or completing the
closing process with the owners of 915-917 Ashland Avenue; and
WHEREAS, on February 4, 1998, the City Council conducted a public hearing on the
proposed acquisition in order that the property owner may attend and indicate hisJher
opposition or support for this proposed acquisition.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul in view of the
foregoing hereby adopted as findings that the public acquisition by the Housing and
Redevelopment Authority of the City of Saint Paul, Minnesota (HRA) of the property
identified as follows:
915-917 Ashland Avenue - Lot 15, Block 19, "SUmmit Park Addition
to St. Paul" except the North 50 feet.
is hereby approved in accordance with the following:
1. The City Wide Redevelopment Plan together with Minnesota Statutes 469.012 (6) and
(7), which includes acquisition, clearance or rehabilitation of blighting conditions to
allow for housing for low/moderate income £amilies together with acquisition, demolition
or rehabilitation providing improvements to a£ford maximum opportunity, is consistent
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with the sound needs of the community as a whole and provides economic stability for the
area.
2_ That, in accordance with the Housing and Community Development Act of 1974 and
Minnesota Statutes 117.52, the acquiring authority shall provide all relocation
assistance services, payments and benefits required by the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 as amended.
3. That acquisition of the above described property is hereby approved to be undertaken
by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, by
direct purchase or by the exercise of the power o£ eminent domain including use of quick
take. Any actions previously taken by the HI2A in this regard are hereby ratified and
affirmed.
4. That after commencement of condemnation action but prior to final action under
eminent domain, staff will request court approval to enter property to evaluate
conditions with an appraiser and a construction specialist.
5. That after review of the conditions and prior to final action, staff will present
findings to the City Council for final approval.
6. Tkat pursuant to Chapter 548, Laws of Minnesota 1984, it is Ytereby certified that
said property meets the conditions of Minnesota Statutes Section 272.02, Subd. 1(7) and
469.040, Subd. 1 and is exempt from property taxes until sold for private redevelopment.
Requested by Department of:
By:
Adopted by Council: Date lv\ \\ �9�{�' Form Appro d by City Attorney
Adoption Certified by Council Secretary
By:
By: ,__ �
Approved by M r: Date I� � Approved by Mayor
Council
BY� ,I � g
for Submission to
PED
Cindy Carlson Heins 66608
2-4-98
TOTAL # OF SIGNATURE PAGES
GREEN ET
I TI ATE —
� DEPARTMENT �IqECS
ASSIGN � CIIYATTOFNEY 1 �
NUNBERFOH
HOUTING L7]� C ty Clexk
OADEN � MpyOF (OR AS$ISTANn
(CLIP ALL LOCATIONS FOR SIGNATURE)
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INITIAUDATE
C7TY COUNQL
�'�� S. Ki be
PW. R MGL SERVICES OIR.
Approval for public acquisition of 915-917 Ashland Avenue, Summit University District 8
Approve (A) or Reject (R)
__ PIANNING CAMMISSION _ G�VIL SERVICE COMMISSION
_ CIB COMMITTEE _
__ STAFF _
_ DISTRICTCqURT _
SUPPORTS WHICH COUNCIL O&IECTIVE7
PERSONAL SERVICE CONTRAC7S MUS7 ANSWER THE FOLLOWING QUESTIONS:
t. Has this person/tirm ever worketl under a contrect for this department?
YES NO
2. Has this personRirm ever been a ciry employee?
VES NO
3. Does this person/firm possess a skill not normally possessed by any curreM city employee?
YES NO
Explaln ell yes answers on separete sheet antl attach to 9�een sheet
INITIATING PROBLEM. ISSUE, OPPGIRTUNITV (Who. Whet. When, Where, Why):
915-917 Ashland Avenue is a vacant blighting property for which HRA adopted a
resolution in 1995 to acquire by eminent domain. The process was delayed when
the owner committed to making improvements. The improvements have not been completed
to date.
Acquisition of a vacant and blighting stxucture in a prominent location of the
Summit University District 8 area.
Owner has not completed the project improvements commited to and it is unlikely he
will do so. The property will remain a blighting influence and the condition of the
structure wi11 1ikely deteriorate.
TOTAL AMOUN7 OF7RANSACTION $ /✓ O�Q COS7/pEVENUE BUDGETED (CIRCLE ONE) YES NO
FUNDIfBG SOURCE �`-/�� � ��� �" ACTIVITY NUMBER ����OO �' 9�Q�oI —
FINANC�AL INFOHffATION: (EXPLAIN)
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Presented By
Referred To
Council File # ��
Green Sheet # � 3 �
Committee: Date
tL�
RESOLUTION MAICING CERTAIN DETERMINATIONS AND
NECESSARY FOR ACQUISITION OF PROPERTY AT 915-917 :
UNDER MINNESOTA STATUTE CHAPTER 469,
SiJMMIT UNIVERSITY DISTRZCT 8
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WHEREAS, 915-917 Ashland Avenue is a vacant four-plex consist' g of all 1-bedroom units,
initially noted by the neighborhood as vacant and condemned y Fire Prevention in 1992
and which building evaluation at that time indicated was a andidate Eor rehabilitation
and the owner encouraged to initiate improvements; and
WHEREAS, a review in 1993 showed no rehabilitation wor had been done and, in July of
1994, an Order to abate a 13uisance Building was issue by Public Health and the nuisance
condition was not abated resulting in a legislative earing after which further action
was considered by the City Council regarding an Or er to repair or demolish in 15 days;
and
WHEREAS, the neighborhood raised concerns abou demolition as the building is considered
a prominent structure on the northeast corne of Ashland and Milton and of£ers a
significant presence in the neighborhood; a d
WHEREAS, on February 8, 1995, the HRA Bo d adopted by Resolution No. 95-2(8-3
authorization to acquire 915-917 Ashlan Avenue and authorization to schedule a Public
Hearing before the City Council to esC blish findings and determinations necessary to
acquire the Property through eminent omain; and
WHEREAS, acquisition by eminent
indicating an intent to rehabili
WHEREAS, the owner posted bond
permit was ultimately invalid�
improvements were never compJ.'e
n was delayed due to commitments of the owner
the structure; and
was issued a building permit in July of 1996; said
to insufficient funds paid for bond and which
and
WHEREAS, the current owne has a Confession of .7udgment for unpaid taxes with the Ramsey
County Tax DepartmenC in he amount of approximately $4,853.01 which is currently in
default for the amount f taxes due for the second halE of 1997 which is approximately
$910.93. The amount unpaid taxes includes outstanding unpaid sewer and water bills
against the property� and
WHEREAS, there ar significant title problems with the property and potential unrecorded
interests which y create problems in obtaining marketable title as well as judgments
and mechanic's iens filed against the property potentially in excess of $80,000; and
WHEREAS, th�urrent owner has not completed rehabilitation of the building and it
continues t remain a vacant and blighting inEluence in the neighborhood; and
WHEREAS lstaff has been unsuccessful in the past in negotiating with the owner for
acquisition of the property and eminent domain will be necessary to clear out existing
RESOLUTION
CTTY OF SAINT PAUL, M
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title problems and provide marketability, also a ninety (901 day quick take w' 1 be
necessary in order to secure possession of the property and minimize further
deterioration of the structure which may make it infeasible to rehab; and o minimize
further hardship to adjacent property owners and neighborhood residents a whole; and
WHEREAS, staff had the property apgraised in May of 1995, which appra'sal wi11 be
updated for condemnation and which at that time showed an estimate value of $45,000;
and
WHEREAS, the I3ousing and Redevelopment Authority recognizes the eed for a continuous
commitment from the City to work with non-profit and for-prof' developers in an effort
to reduce the blighting effect of vacant residential structu es in the City's
neighborhoods by expanding home ownership opportunities, st ilizing neighborhoods and
increasing the City's tax base; and
WHEREAS, under Chapter 464 of the Minnesota Statutes
Authority of the City of Saint Paul, Minnesota, is a
relating to:
1. Housing projects and development (especially
2. Removal of or prevention of the spread of
3. Bringing substandard buildings and
standards;
4. Disposition of land for private
Housing and Redevelopment
zed to engage in activities
low and moderate income people);
tions o£ blight or deterioration;
s into compliance with public
; and
5. Improving Che tax base and financ� stability of the community, and engaging in the
aforementioned activities when these eeds cannot be met through reliance solely upon
private initiative and which can al be undertaken in targeted neighborhoods; and
WHEREAS, Minnesota Statutes Chapt 469 gives a specific range of powers including the
power to acquire land by the exe cise of the power of eminent domain, sell land, engage
in planning, employ a variety o financing instruments, and establish land use controls;
and
WHEREAS, HRA has been unsucc ssful in negotiating purchase agreements or completing the
closing process with the o ers of 915-917 Ashland Avenue; and
WHEREAS, on February 4�98, the City Council conducted a public hearing on the
proposed acquisition in rder that the property owner may attend and indicate his/her
opposition or support r this proposed acquisition.
NOW THEREFORE, BE IT ESOLVED by the Council of the City of Saint Paul in view o£ the
£oregoing hereby ad ted as findings that the public acquisition by the Housing and
Redevelopment Auth rity of the City of Saint Paul, Minnesota (HRA) of the property
identified as fol ows:
915-917
to St.
is hereby
.nd Avenue - Lot 15, Block 19, "SUmmit Park Addition
except the North 50 feet.
in accordance with the following:
1. The Ci�y Wide Redevelopment Plan together with Minnesota Statutes 469.012 (6) and
(7), whif h includes acquisition, clearance or rehabilitation of blighting conditions to
allow foY housing for low/moderate income families together with acquisition, demolition
or rehabilitation providing improvements to afford maximum opportunity, is consistent
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with the sound needs o£ the community as a whole and provides economic stability �or the
area. /
2_ That, in accordance with the Housing and Community Development Act of 197 and
Minnesota Statutes 117.52, the acquiring authority shall provide all reloc tion
assistance services, payments and benefits required by the Uniform Reloc ion Assistance
and Real Property Acquisition Policies Act of 1970 as amended.
3. That acquisition of the above described property is hereby a
by the Housing and Redevelopment Authority of the City of Saint
direct purchase or by the exercise of the power of eminent doma
take. Any actions previously taken by the HRA in this regard ar
affirmed. /
. to be undertaken
Minnesota, by
uding use of quick
v ratified and
4. ThaY pursuant to Chapter 548, Laws of Minnesota 1984, i is hereby certified that
said pxoperty meets the conditions of Minnesota Statutes ection 272.02, Subd. 1(7) and
469.040, Subd. 1 and is exempt from property taxes unti sold for private redevelopment.
Absent
Requested by Department of:
B a��-
Adopted by Cauncil:f Date
adoption CertiEie�CS by Council Secretary
By:
ORIGINAL
Approved by�Niayor: Date
By:
Form Appr ved by City Attorney
By:
Approved by Mayor for Submission to
Council
� �
� �
HOUS;NG AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA
—
REPORT TO THE COMMiSS10NERS DATE February 8, 1995
REGARDiNG Authorization to Acquire the Fottowing Properties under
the Houses to Homes Program:
1. 622 Aurora Avenue, Summit-University District 8
2. 915-917 Ashland Avenue, Summit-University District 8
and Authorization to Scheduie a Pubfic Hearing before the
City Council in Connection with the Acquisition of said
Parcels
Purpose
The purpose of this report is to request HRA Board approval of the following actions:
1. Authorize staff to acquire two vacant houses identified as Parcels 622 Aurora
Avenue and 915-917 Ashland Avenue under the Houses to Homes Program.
2. Authorize staff to schedule a Public Heazing before the City Council to
consider findings and make a determination necessary to acquire said Pazcels
through eminent domain; and
3. Authorize stafFto proceed with acquisition of said Pazcels throu�h eminent domain
� and a ninety-day quick take, subject to a Public Hearing and approva] by the City
Council of the necessary findings.
Background
On Pebruary 13, 1985 the HRA Board adopted by Resolution 85-2/13-1 a policy in which the FIIZA
acts as a pass-through for HUD/VA repossessed properties by acquiring such properties and
subsequently conveying them to local nonprofit developers for development to provide homeownership
oppominities. This policy was further encouraged by the Houses to Homes-Vacant Housing Strategy,
adopted by the HRA Boazd on April 9, 1991, by Resolution 91-4/9-3. The program recognizes the
need for a continuous commitment from the City to work with non-profit and for-profit developers in
an effort to reduce the blighting effect of vacant residentiai structures in the City's neighborhoods by
espanding homeownership opportunities, stabilizing neighborhoods and increasing the City's taY base.
Another direction identified in St. PauPs Housing Policies for the 1990's adopted by City Council
outlined the necessity to reduce unit density and increase the potential for homeownership. This was a
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priority point for smaller renial buildings where the units were efficiency or 1-bedroom and did not
mazket wetl or offer suitable housing for families where the market need exists. The size of the units
ofren limit the tenant selection opportunities and, to fill the buildings, o�mers overlooked problem
areas such as overcrowding and problem tenants. The result may be a constant tumover of tenants and
subsequent vacant buildings offering no stability for the neighborhood.
Project Description - 915-917 Ashland Avenue
915-417 Ashland is a vacant four-plex consistina of all 1-bedroom units. It was originally built in
1903 as a side-by-side duplex each unit having 3-bedrooms and about 1350 square feet for each unit.
415-917 Ashland Avenue was initially noted by the neighborhood as vacant in 1992, A vacant
building evaluation was done by PED staff on September 28, 1992 and indicated it was a candidate
for rehabilitation. Based on the evaluation information about City financing proo ams were sent to the
owner noted of record at that time. The property was again reviewed in September, 1993, no work
had been started. On July 20, 1994 an Order to Abate Nuisance Building was sent to the identified
property owners listing the deficiencies and noting they had until August 19, 1994 to conect the
problems. On August 26, 199A a Notice of Public Heazings was sent notifying the owners of the
Legislative Heazing on 5eptember 20, 1994 and subsequent City Council Hearing on September 28,
1994. Resolution for consideration was to repair or demolish within 15 days.
> A number of people within the neighborhood indicated that interest had been shown in purchasing and
rehabilitating the structure. It is a prominent building on the northeast corner of Ashland and Milton
and offers a significant presence for the neighborhood.
Neighborhood concerns were raised about this building being demolished. Council requested an
evaluation as to whether the property is in good structural condition and to evaluate whether or not it
is possible to be rehabbed. As a result of this concern, PED researched title and put some preliminary
numbers to�ether. These numbers are preliminary but aze based on a prior action that the Board
approved for a vacant four-plex at 420 North Lexina on.
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Comparison of Rehab and New Constncrion
Activities 915-417 Ashland New Construction
2 units-1350 sq/ft ea 1 houses-1400 sq/ft ea
New Construction - $70 sq/ft $ 98,OD0
(does not include garage)
Rehabilitation - $36 sq/ft $ 100,000
(does not include a garage)
Construction contingency 10,000 (10%) 4,900 (5%)
Total Construction Cost $ 110,000 $ 99,900
Soft Costs (holding costs, $ 27 (15%) $ 30,381 (19%)
construction interest, insur-
ance, taxes, developer fee,
etc)
Acquisition $ 45,000 $ 60,000
Total Development Costs $ 182,000 $ 190,281
915-919 Ashland Avenue
Possible Sources of Funds Amounts
Resale Proceeds $ 90,000 - $95,000
Family Housing Fund $ 10,000 (duplex)
Houses to Homes $ 6�,040 (duptes)
Additional Financing Gap $ 22,000 - $18,000
TOTAL $ 182,000
The demolition of the building could be from $15,000 plus resulting in a vaca�t piece of property.
The property would probably continue to remain vacant due to extensive title issues, tas liens, etc with
no potential benefit to the City or the neighborhood. In fact it is possible that the City would
continue to abate the property for clean-up. City's tax base would be greatly reduced since its current
tax value is noted as $65,700
l.) Title Search. The fee o�vners are Jo1�n A. and June M. Robinson. They sold the property
on a contract for deed to John Kratz and Bonita R. Akagawa on October 12, 1979. Kratz and
Aka�a�va sold the property on a contract for deed to Robert R. Henze and 7oann E. Rollings on
January 2, 1981. An amendment of the contract for deed between Kratz/Akagawa and Henze(Rollings
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was drafter June 30, 1989, extending the due date to 7une 30, 1992. We also understand that there
may be other outstanding interests through other unrecorded documents.
Taxes. There are delinquent taaces due for 1993 in the amount of $4,528 and 1994 in the
amount of $8,181.92, for a total of $13,433. The 1944 taYes are high because of an unpaid
water/sewer bill that was certified to the tazes in the amount of $4,447. The water department shows
that the plumbing leak and the water was shut-off on April I, 1993.
Project Description - 622 Aurora Avenue
Aurora-St. Anthony Area Block Club (ASAABC) and neighborhood residents request that the HRA
consider acquisition of 622 Aurora Avenue, a vacant single family house, to be rehabilitated and
resold for homeownership under the Houses to Homes Program. The property is located in the
UniversiTyJDale Redevelopment area where both private and City dollars have been heavily invested in
revitalization efforts and it is essential that these efforts continue.
622 Aurora Avenue is ad}acent to the UniversitylDale redevelopment effort and is a pivotal structure
for housing rehabilitation in the existing block. Property consists of a 2 1/2 story wood frame, large
4-bedroom single family home built in 1909 having 1700 square feet of living area.
Public Health has been working with the property owner since August, 1991. City Council passed a
Resolution in December, 1991, recommending the owner be granted six months to rehabilitate this
structure subject to posting a$2,000 bond (bond was submitted and forfeited).
On June 8, 1993, Councilmember Wilson introduced a resolution requesting further analysis of
remedial action to be taken on 622 Aurora. Staff proceeded to do the followin�:
I.) Aaalvze the condition of the propertv and feasibilitv of rehabilitation. Staff and ASAABC
contacted the owner and viewed the property. The o�mer had done some work on the property,
however, limited time and funds liindered progress. We worked with the owner for several months to
see if rehabilitation funds could be secured to finish the house. Due to title problems, numerous
judgements/liens, etc. the property owner was unable to qualify for assistance. Property currently has
delinquent tases of $15,739 which covers 1985-1994 (property is scheduled to be forfeited in August,
1995). The property has also been vacant during that same period.
2.) Prepare cost estimates for (al proceedina with demolition of the structure, and (b)
acguisition of the propertv and its rehabilitation. Demolition through the City under the Nuisance
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Ordinance is estimated at $9,000. These funds would then be assessed a�ainst a property already
encumbered with numerous liens. Current tax value is noted as $35,700 estimated rehabilitation cost
$60,000 ($35 sq/ft). Resale value is estimated at $6�,000. Based on these coststhe properry could be
done within the Houses to Homes Program guidelines.
3.) Make recommendation for remedial action respectina the orooertv. Proceed to acquire
and rehabilitate for homeownership. City/FIRA recognizes the problems created 6y vacant houses in
its neighborhoods, and also recognizes the need to take the initiative to convert these houses into safe,
decent and affordable housing for homeownership, thereby meetinb the objectives of the City
Council's St. Paul Housing Policies for the 1990s.
ASAABC and the neighborhood continues to indicate their desire to purchase and rehabilitate this
house which is located at a major gateway to the neighborhood. The owner had rejected all attempts
to allow the purchase of the property by ASAABC or other prospective purchasers, and continues to
allow the property to remain vacant with no additional improvements undenvay.
Transaction/Credit Information
ASAABC has been a significant partner in revitalizing their neighborhood and is very capable of
completing the rehabilitation providing the property for homeownership. They have undertaken the
rehabilitation of ten (10) properties and assisted in the demolition of five (5) others. Out of the ten
(10) properties, six (6) are sold, two (2) under construction and rivo (2) for sale. Final sale of 622
3 Aurora Avenue will need to be approved by the FII2.A Board.
915-917 Ashland also provides for the same type of housing undertaking. We will need to solicit
interest, the nei�hborhood non-profit and Habitat for Humanity has indicated some interest.
The general terms of funding provided under Houses to Homes include:
- Use of funds are structured as a grant to the project costs, and is made available only for the
cost differential between the after-reUab fair market value and the total development cost.
responsibility of Habitat.
- A second mortgage is placed a�ainst tlie property in the amount of City/I-IRA funds provided
to the project. The mortga�e requires rehabilitation and resale of the property to a homeowner
within one year. Mortgage is then passed on to the purchaser of the property which insures
homeownership for a period of ten (10) years. The loan is forgiven 1/10 each yeaz the
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properry is homesteaded.
Budget Information
622 Aurora and 915-917 Ashland: Funded from Vacant Building and Homestead Assistance Fund to
allow for acquisition, rehahilitation and/or demolition of vacant residential structures for resale for
homeownership under the Houses to Homes Program.
Vacant House/Homestead Fund
(CDBG 100-37801-xxxx-61283)
1994-1995 Budget
$1,140,000.00
Committed/Encumbered
Expended as of 1/31/95
In process (before committed)
Available for this action
Public Purpose
$ 493,317.56
$ 249,779.10
$ 240,000.00
$ 156,90334
To facilitate the removal of vacant and blighted buildings on the City and its neighborhoods. Create
quality, affordable housing, while stabilizing neighborhoods, increasing homeownership opportunities,
and increasing the City's tas base. The inadequate maintenance, physical damage and abandonment
of the house constitutes a fire hazud as well as a blight upon and detriment to the neighborhood.
j This negative influence affects the value of properties and creates a distraction from the positive
progress that has been made in rehabilitatin� vacant houses in the neiahborhood, requires remedial
public action.
Neighborhood Revie�v
The Aurora-St. Anthony Area Block Club, neighborhood residents and Summit-University District 8
members have indicated their support to undertake these activities.
Options
1. Acquire 622 Aurora and 915-917 Ashland for subsequent rehabilitation and resale for
homeownership undec This would further City's objectives of increasing
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homeownership, reducing unit density, removing vacanUblighting properties, stabilizing
neighborhoods, and increasing the City's tax base.
2. Allow the properties to be handled by the private market. This option will result in
the demolition of both properties creafing vacant lots that can not be developed
�vithout undertaking legal action to resolve the numerous title issues. Properties are
likely not to be developed because of the issues outlined which would be contrary to
the City's goal of increasing homeownership and tax base, etc.
Properties may continue to remain vacant with constant neighborhood complaints, City
involvement, time and funds related to complaints and potential abatement costs. This
has already been indicated by the previous non-performance of the property owners.
Recommendation
Staff recommends approval of proceeding with the acquisition of Parcels 622 Aurora Avenue and 915-
917 Ashland Avenue under the Houses to Homes Program. Staff also recommends approval of the
subsequent sale of 622 Aurora to Aurora-Saint Anthony Area Block for rehabilitation and resale for
homeownership. The acquisition of 915-917 Ashland Avenue for rehabilitation as a duplex or single
family home. To solicit developer through our for-profit or non-profit network for rehabilitation and
resale for homeownership. That subject to a public hearing before City Council these properties be
acquired through eminent domain by pursuing a ninety-day quick take, if necessary.
� Sheri Pemberton, 266-6615
""Housing Division
Sponsored By: Commissioner Blakey
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RESOLUTION NO. 95-2/8-
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RESOLUTION AUTHORIZING THE ACQUISITION OF PARCELS 915-917 ASIILAND
AVENUE AND 622 AURORA AVENUE, AND THE SCHEDULING OF A PUBLIC
HEARING BBFORE THE CITY COUNCIL TO MAKE NECESSARY FINDINC�S AND
DETERNffNATIONS AND TO AUTHORIZE PROCEEDING WITH ACQUISITION OF
SAID PROPERTIES THROUGH EMINENT DOMAIN,
SUMMIT-UNIVERSITY DISTRICT 8
WHEREAS, the City of Saint Paul recognizes the problems created by vacant housing units
and buildings in its neighborhoods, and also recognizes the need to take the initiative to
convert these units into safe, decent and affordable housing; and
WHEREAS, the City of Saint Paul supports increased volume in the treatment of vacant
buildings where possible by all developers, including for-profit and nonprofit entities, and
with these objectives in mind, the City needs to assist other potential developers of vacant
houses and take full advantage of the opportunity to rehabilitate vacant houses; and
WHEREAS, the Housing and Redevelopment Authority, by Resolution 91-4/9-3 adopted the
Houses to Homes - Vacant Housing Strategy by Resolution 92-12/14-3 Replacement Single
Family New Construction including program guidelines and budget amendments in order to
carry out the activities; and
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul has the
power to engage in development or redevelopment activities under Chapter 469 of the
Minnesota Statutes, Housing and Redevelopment Act, and by authority of said Act undertakes
activities relating to: i) housing projects and development, especially for low and moderate
�'income people; 2) removal and prevention of the spread of conditions of blight or
'deterioration; 3) bringing substandazd buildings and improvements into compliance with
public standards; 4) disposition of land for private development; and 5) improvin� the tax
base and the financial stability of the community; and engages in the aforementioned activities
when development and redevelopment needs cannot be met through reliance solely upon
private initiative, and may engage in said activities in targeted neighborhoods; and
WHEREAS, the Act gives a specific range of powers including the power to acquire land, sell
land, engage in planning, employ a variety of financing instruments, and establish land use
controls and additionally, it requires that activities be devised accordin� to a plan or program,
of which the Houses to Homes Program meets this criteria; and
WHEREAS, acquisition and redevelopment of the Parcels is being undertaken through the
Houses to Homes Program; and
WHEREAS, neighborhood residents believe 915-917 Ashland Avenue and 622 Aurora
Avenue are biighting properties in their respective neighborhoods, and requested the HRA to
consider acquisition of the properties for redevelopment as housing to be resold to a qualified
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homeowner; and
WHEREAS, it is estimated that 915-917 Ashland Avenue may be purchase for $45,000, and
622 Aurora Avenue may be purchased for $38,000; and
WHEREAS, in order to proceed with the acquisition of this pazcel, it may be necessary to
schedule a Public Hearing before the City Council to establish fmdings and determinations
necessary to acquire the Pazcels and to authorize acquisition of the Parcels through eminent
domain.
NOW, THEREFORE BE IT RESOLVED By the Housing and Redevelopment Authority of
the City of Saint Paul, that the public acquisition of the properties identified as:
915-917 Ashland Avenue, legally described as the North SO feet of Lot 15, Block 19,
Summit Park Addition to St. Paul, according to the recorded plat thereof, and situate
in Ramsey County, Minnesota, and
622 Aurora Avenue, legally described as Lot 1, Block 1, Butterfield Syndicate
Addition No. 1, according to the recorded plat thereof, and situate in Ramsey County,
Minnesota,
in the Summit-University District 8 area are hereby approved in accordance with the
following:
1. That 915-917 Ashland Avenue and 622 Aurora Avenue are vacant residential
structures which are a blighting influence on the neighborhoods in which they aze
located.
�`2. That the Houses to Homes and Replacement Single Family New Constnzction
� Progranis and the City Wide Redevelopment Plan together with Minnesota Statutes
469.012 (6)(7), which includes acquisition, clearance or rehabilitation of blighting
conditions to allow for housing for low/moderate income families together with
acquisition, demolition or rehabilitation providing improvements to afford maximum
opportunity, consistent with the sound needs of the community as a whole and
providing economic stability for the azea.
3. That Pazcels 915-917 Ashland Avenue and 622 Aurora Avenue would not be made
available for redevelopment without the undertaking of the Houses to Homes activities,
and were it not for said undertaking, the provision of the maximum housin;
opportunity and neighborhood stabilization would not be possible.
4. That in accordance with the Housing and Community Development Act of 1974 and
Minnesota Statute 117.52, in all acquisitions undertaken by an acquiring Authority,
said Authority shall provide all relocation assistance, services, payments, and benefits,
if required, in accordance with the Uniform Relocation Assistance and Real Property
Acquisition Act of 1970, as amended.
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5. That acquisition of the proper[ies identified as Pazcels 915-917 Ashland Avenue and
622 Aurora Avenue are hereby approved by direct purchase or exercise of the power
of eminent domain and quick-take, if necessary, subject to a Public Hearing before the
Saint Paul City Council.
6. That HRA staff is authorized to schedule a Public Heazing before the Ciry Council to
consider findings and authorize acquisition of the Parcels through eminent domain and
quick-take.
7. That subject to the Public Hearing and approval of findings by the City Council, the
HRA is hereby authorized to commence eminent domain and a ninety-day quick take
proceedings to acquire said Parcels.
8, That pursuant to Chapter 548, Laws of Minnesota 1984, it is hereby certified that said
Parcels meet the condition of Minnesota Statutes 272.02, Subdivision l, clause (7) and
469.040, Subdivision 1, that until sold for private redevelopment said Parcels are
exempt from property taxes.
9. That subsequent to a public hearing, the HRA will consider final Authorization of Sale
of Parcels 915-917 Ashland Avenue and 622 Aurora Avenue to a redeveloper for
redevelopment as housing to be resold to a qualified purchaser for home ownership.
FEB-11-1996 09�01 CITY OF ST PRUL CODE ENF
Memorandum
CITY OF SAINT PAUL
February 10, 1998
To: Charles Votel
Ftom_ Reneta Weiss
Re: 915-917 Ashland Avenue
612 228 3170 P.02i02
9 g-1 to
This is a four plex, wood frame structure which has suffered significant damage and
decay since the original Build'rng Deficiency Inspection was completed in July of 1994.
The interior of the dwelling is gutted. There aze numerous holes and weak spots in the
floor caused by rot and decay. The handiails and guardrails are missing, whicb
constitute a serious fiazard to anyone enteiing the dwelling.
This damage includes but is not liarited to: rotted fioor joists, subfloor and warped
flooring. There is extensive mold and znildew oa sheet rock installation. There is rust
and deterioration to the metal floor jacks and support beams. The entire plumbing
system has been stzipped and removed. The roof covering has lazge holes and is not
intact which allows the elements to enter causing snow and ice build up on the ftoors_
There is a pigeon infestation wtuch has resulted in an unsanitary condition of the attic
area, ie: feces and feathers.
It is our professional opinion that the above conditions constitute a serious health and
safety issue and have compromised it's structural integrity creating a nuisance condirion
which should be abated immediately.
Note: Photo�raphs aze available
RW:mI
TOTAL P.02
� .
1EPARiMEM/JFFICE/COUNpL
Police
bMqCT PERSON 8 PHONE
Chief Finney 29.
AUST BE ON COUNdL AGENDA BY (DATE)
TOTAL # OF SIGNATURE PAGES
✓�
N° 51750
c��.1�
� 12 29 9� GREEN SHEET
INITAVDAiE INITIAVDATE
� DEPARTMENT DIRECTOR � pTYCOUNCIL
ASSIGN �CITYATTORNEY OQTYCLERK
NIIMBER FON � BU�GET DIRECTOR � FIN. 8 MGT SERVICES DI ^
NOUTING
OPOER � y�AYOR (OR ASS�ST �
(CLIP ALL LOCATIONS FOR SIGNATURE)
Approval of the attached council resolution accepting a grant award for the
ECON Weed and Seed prograa in the amount of $280,000 for the period of
July 1, 1997 to June 30, 1999.
or
_ PLANNING CAMMISSION _ CIVIL SERVICE COMMISSION
_ CIBCOMMITTEE _
_ STAFF _
__ DISiRICTCOURT _
SUPPORTS WHICH COUNCILO&IECTIVE?
WhaC When.
PERSONAL SERVICE CONTRACTS MUST ANSWEP 7HE FOLLOWING QUESTIONS:
i. Has this person/fiim ever worketl under a cnntract for this department?
VES NO
2. Has this personttirm ever been a c�ry employee?
YES NO
3. Does this Oersonlfirm possess a skill not normally possessetl by any current city employea?
YES NO
Explai� a41 yes answers on aeperate aheet anA ettach to g�ean sheat
State legislative funding for the Weed and Seed program for the ECON neighborhood has been
awarded to the City of Saint Paul in the amount of $280,000. This resolution accepts the
grant.
The City would be able to access the grant award of $280,000.
DISADVANTAGES IFAPPROVED.
None
•L Nit Y
�.�;u 2 � �ss8
'�Y�R'� Or�'`• ,
�������e
JAM 16 1998
�p�� �� ��� �
The City of Saint Paul would not be able to access the funding for the Weed and Seed
program in the ECON neighborhood.
$18,350 in 1997, $121 in 1998 and
TOTALAMOUNTOFTflANSACTION $ �����XX� �ri 1999 COST/REVENUEBUDGETED(CIHCIEONE)
VES NO
s
FUNDIWGSOURCE 436 — Poiice S�PClal PTO�gC�� ACTNITYNUMBEH 34141
FINANCIALINFORFfATION (EXPLAIN)