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09-848Council File # 09-848 Green Sheet # 3073656 AMENDED 8/5/09 RESOLUTION CITY OF SAINT PAUL, MINNESOTA (p3 Presented by � �� �� Resolution to Stay Council File #OS-772, an Order to Remove or Repair 500 Sherburne Avenue within�5 Days of Adoption of Resolution 180 � WHEREAS, the Saint Paul City Council adopted C.F. #08-772 on September 17, 2008 an Order to z Remove or Repair the buildings known as 500 Sherburne Avenue within �days; and 3 180 a WHEREAS, in the legislative hearing process, as well as subsequently at the City Council public s hearing to consider this matter, Palmer Management and Black Sands failed to adequately complete 6 this rehabilitation and the $5,000 performance deposit required under Chapter 33 of the Legislative � Code went unattended by anyone in an ownership position or their representative; and 9 WHEREAS, Palmer Management and Black Sands has since provided all of the requisite information i o the Council normally requires when a request for time to complete a rehabilitation on a property with a � i substantial abatement order pending and have posted a$10,000 performance deposit; and �z �3 WHEREAS, this new information was reviewed by the Legislative Heazing Officer on July 14, 2009, ia per the request of Councilmember Carter, and the Legislative Hearing Officer believes Palmer �s Management and Black Sands can now successfully abate the nuisance condition and her �5 recommendation to the Council is that they grant a 180 day stay in the implementation of C.F. �� #08-772, thus allowing adequate time for the rehabilitation of this structure. ts �9 NOW, THEREFORE, BE IT RESOLVED, that the City Council grants a 180 stay in the 2o implementation of C.F. #08-772. Requested by Department oE AdoptedbyCouncil: Date � �5��� AdouYiexi certifie by unc' Secretary ( By: Approved n or Date p�0 By: � Form Approved by City Attorney By: Form Approved by Mayor for Submission to Council By: Approved by the Office of Financial Services By: � Green Sheet Green Sheet I' :•: Green Sheet Green Sheet Green Sheet Green Sheet � ; Departmentl�ce/CaunciL � Date lnitiated: � : CO—Council '� 30-JUL-09 ' Green Sheet NO: 3073656 � , i ' � Department Sent To Person InkiallDate � � ConWct Person & Phone: ' � Marcia Moermond ; � a Councit � I Council DeoarGnent Director , Assign � 2 Ciry Quk ' Ciri Clerk � I Must Be on Council Agenda by (Date): � Number � �� � For 3 � Routing j 4 ' I �, �� Doa Type: RESOLUTION '� Order i 5, ' ��, E-DOCUment Required: Y Document ConWM: ConWCt Phone: 7oWi # of Signature Pages _(Clip Ali Locations for Signature) Resolution to stay Council File #08-772, an order to remove or repair 500 Sherbume Avenue within I S days of adoption of resolution. Recommendations: Approve (A) or Reject (R): Planning Commission CIB Committee Civil Service Commission Personal Service Contracts Must Answer the Following Questions: 1. Has this person/firm ever worked under a contract for this department? Yes No 2. Has this person/frm ever been a city employee? Yes No 3. Does this person/firm possess a skill not normally possessed by any wrrenf city employee? Yes No Explain all yes answers on separete sheet and aHach to green sheet. Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Advantages If Approved: DisadvantageslfApproved: Disadvantages If Not Approved: Total Amount of Transaction: Funding Source: Fi nancial Information: (Explain) CostlRevenue Budgeted: Activity Number: July 30, 2009 10:14 AM Page 1 ' � • � � � 7uly 14, 2009 Legislative Hearing Minutes Page 2 2. Resolution — 08-772 — Ordering the owner to remove or repair the building(s) at 500 Sherburne Avenue within fifteen (15) days from adoption of resolution. [Adopted Sept. 17, 2008] Kevin Palmer, property owner, appeared with Michael Doody, representing Black Sands Corporation. Mr. Magner stated that on June 24, 2008, there was a legislative hearing regarding this matter. A representative of Anchor Bank appeared with Mr. Palmer and presented a purchase agreement, along wiTh a financial plan, and the number of units that would be occupied in the building was discussed. The matter was continued to the July 28, 20081egislative hearing in which Mr. Palmer appeared. Tait Danielson-Castillo also appeared representing Dish 7 and the neighbor, Lucy Passus, and expressed concern about the building being rehabilitated. There was discussion regarding the exterior fa9ade of the building as there was concern as to how the building was not going to continue to be a nuisance to the neighborhood. It was determined that the number of units in the building needed to be reduced from eight to six and it was suggested Mr. Palmer work with Historic St. Paul to see if there was not only funding available but also to assist with the exterior design of the building. The Council adopted the resolution on September 17, 2008 granting 180 days to remove or repair the building. The City, at this time, had the capacity to proceed with the demolition. Ms. Moermond asked whether the bond had been forfeited. Mr. Palmer responded that it had. He said he had run into financial difficulty when they had to convert the building into six units from eight. He said the historic rehabilitation to khe building also added additional costs. They had now recently come up with the financing to be able to complete the rehab in a short amount of time. He said the estimate he had received to complete the rehabilitation was $167,000. Mr. Doody stated that his company had loaned the money to Mr. Palmer to complete the rehabilitation. He said his company had rehabbed many category 1 and 2 vacant buildings across St. Paul and he had a very good track record of completing projects. He said the conversion of the building from eight units to six complicated the project and the financial ability to complete the repairs. He said he was committed to seeing this project to completion as he did not want to see the building demolished. Ms. Moermond stated that given the history of the nuisance problems at the property, the Council would not have recommended granting time to rehabilitate the building to eight units given the high density of the building and the long-term problems. Mr. Palmer stated that Historic St. Paul was still interested in providing a$10,000 grant in addition to a$20,000 loan to contribute to the financing of the project. Ms. Doody stated that MainStreet Bank had also committed to providing over $100,000 in financing to complete the project. Mr. Magner asked Mr. Palmer what circumstances had changed from the Council recommending the grant of time to complete the rehabilitation to now when he was requesting additional time. Mr. Palmer responded that since the plans for the layout of the building had changed from eight units to six units, he had to make up for the loss of those two units and had to hire an architect to draw up new plans. They then gutted the entire interior of the building when he realized that he did not have enough financing to complete the proj ect. July 14, 2009 Legislarive Hearing Minutes ( � � • � � • Ms. Moermond stated that the following must be submitted by July 21: 1) a new work plan including timelines for completing the work; 2) financial documentation indicating the financial ability to complete the repairs; 3) a signed contract with Michael Doody, Black Sands; 4) individual trade bids; 5) post a$10,000 performance bond by July 27; and 6) a progress report will need to be submitted every six weeks until completion of the rehabilitation.