CR 08-015 Habitat for Humanity BeardO`TY OF
NOPKINs
February 19, 2008
Council Report #2008-015
TWIN CITIES HABITAT FOR HUMANITY PROPOSAL TO PURCHASE 13 AND 15
HARRISON AVE
Proposed Action
Staff recommends approval of the following motion: Adopt resolution number 2008-016 in
support of Twin Cities Habitat for Humanities (TCHFH application to Hennepin Count
funding toward the purchase price of 13 and 15 Harrison Ave and authorizing the execution of a
Memorandum of Understanding with TCHFH for their purchase of 13 and 15 Harrison Ave from
the City of Hopkins.
With this motion, the City of Hopkins will be agreeing on a purchase price of $150,000 for the
properties at 13 and 15 Harrison Ave and adopting a resolution of support for a TCHFH
application for funding from Hennepin County for a portion of the purchase price.
Overview
The City of Hopkins purchased the property that is now 13 and 15 Harrison Ave after the
Excelsior Blvd expansion took place in 2006. The property was then replatted as two single-
family lots. The City hired a realtor to post the lots for sale in 2007 and by late 2007 TCHFH
had met with City staff and indicated interest in the lots.
After meetings with City staff and City Council, a purchase price of $75,000 per lot was
proposed. TCHFH indicated that a portion of the purchase price would be funded by a grant
from Hennepin County, if approved. TCHFH needs a letter of support from the City to apply for
the funding, and the City requires a commitment from TCHFH to purchase the property in the
form of a Memorandum of Understanding (MOU) prior to adopting a resolution of support. The
MOU will be reviewed by the City Attorney before execution -minor changes to the attached
draft may occur.
At the request of the City Council, TCHFH scheduled a neighborhood meeting for property
owners within '/4 of a mile of the subject lots. This meeting was an open-house style event held
at City Hall on Wednesday, February 13. Three residents in the area attended the open house,
saw a presentation made by TCHFH staff, and asked questions about the organization and the
proposal. TCHFH provided a proposed site plan and two housing designs being considered for
the lots. One design showed a 1 '/2 story home with four bedrooms and the other a single story
home with three bedrooms. Both homes would have full, unfinished basements with egress
windows and a detached two-car garage. All of the input at the meeting was supportive of
TCHFH's proposal.
Supporting Information
• Resolution 2008-016
• RAFT Memoran of Understanding
Tara Beard
Community Development Coordinator
Financial Impact: $ 0 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2008-016
RESOLUTION SUPPORTING TWIN CITIES HABITAT FOR HUMANITY
APPLICATION TO HENNEPIN COUNTY HOME INVESTMENT PARTNERSHIPS
PROGRAM FOR FUNDS TO PURCHASE 13 AND 15 HARRISON AVE FROM THE
CITY OF HOPKINS
WHEREAS Twin Cities Habitat for Humanity, Inc. (TCHFH) proposes to purchase two
lots on Harrison Avenue South from the City of Hopkins for $150,000; and,
WHEREAS TCHFH has hosted a public meeting at the City of Hopkins City Hall at
which members of the neighborhood supported the proposal; and,
WHEREAS TCHFH will request $100,000 of funding from the HOME Investment
Partnerships Program via Hennepin County for this project; and,
WHEREAS the City of Hopkins City Council supports this proposal to add to the
housing stock of Hopkins,
NOW, THEREFORE BE IT RESOLVED, that the City of Hopkins endorses both this
proposed project and TCHFH's application for HOME funds.
Adopted this 19th day of February 2008.
By
Eugene J. Maxwell, Mayor
Attest:
Terry Obermaier, City Clerk.
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (the "Memorandum") is entered into this day of
2008, by and between Twin Cities Habitat for Humanity, Inc., a Minnesota
Nonprofit Corporation (TCHFH) and the City of Hopkins, public body corporate and politic
under the laws of the State of Minnesota (City). The Memorandum describes the roles and
responsibilities regarding the acquisition of two (2) City-owned lots located at 13 and 15 Harrison
Avenue, Hopkins, Minnesota (the "Property").
Statement of Facts
A. Tl~e City has listed the Property on the Multiple Listing Service (MLS) for eighty
nine thousand and NO/100 dollars, $89,000, per lot ($] 78,000 total).
B. TCHFH desires to enter into a purchase agreement with the City to purchase the
Property at a per lot price of $75,000 ($ l 50,000 total).
NOW, THEREFORE, the City and TCHFH hereby agree that the acquisition and development of
the Property will be conducted in accordance with the following provisions. TCHFH and City
agree to uphold this agreement with agreed-to modification made in writing to either party.
Property Acquisition
TCHFH intends purchase the property using as-of--yet unsecured public and private funding
sources. TCHFH shall diligently pursue acquisition funding from the following sources, and
execution of a Purchase Agreement is contingent on successfully securing HOME and SHOP
funding:
1. Hennepin County HOME - $100,000
2. Housing and Urban Development SHOP - $30,000
3. Private Development Sponsor - $20,000
TCHFH New Construction Responsibilities
TCHFH shall be responsible for completion of the following and for any expense associated
therewith:
o Drawings and specifications for the new homes located on the Property.
o Permitting related to the new homes on the Property.
o All construction tasks.
o Landscaping, placement of sod and final grading as necessary or required by the city.
o Any and all inspections required by the city or others for the tasks outlined above.
o Obtaining Certificate of Occupancy from the City of Hopkins upon completion of the
homes on the Property.
Specifications
TCHFH will develop specifications for the interior and exterior of the single-family homes
located on the Property that are consistent with TCHFH's usual construction standards and that
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complement the surrounding neighborhood. TCHFH will ensure that all work is completed with
quality materials and workmanship.
Subcontractors
TCHFH and the City recognize that contractors and subcontractors will be utilized in the
development of the Property. TCHFH shall be responsible for selecting, hiring, compensating
and managing the performance of the contractor and subcontractors they hire.
Sale of the Property
TCHFH shall be responsible for selecting the qualified families to purchase the Property upon
completion of the homes and all tasks associated with the sale of the Property to the purchasing
family.
Assignment
Neither the City nor TCHFH shall assign their interest in this Agreement without the written
consent of the other party.
Insurance
TCHFH will be responsible for providing liability, property, builder's risk and warranty coverage
for construction on the Property.
Mutual Indemnification
TCHFH agrees to mutually indemnify, defend and hold harmless the City, and the City's
members, officers, employees and agents from all claims, causes of action, debts, judgments,
liens, attorney's fees, and costs for any personal injury or property damage caused by TCHFH's
activities with respect to the Property, including any mechanics' liens, warranty claims relating to
the residential TCHFH units, or any breach of this Memorandum by TCHFH.
The City hereby agrees to indemnify, defend and hold harmless TCHFH, and TCHFH's
members, officers, employees and agents from all claims, causes of action, debts, judgments,
liens, attorney's fees, and costs for any personal injury or property damage caused by the the
City's activities with respect to the Project, including any mechanics' liens, warranty claims
relating to the residential TCHFH units, or any breach of this Memorandum by the City.
Changes
Proposed changes to this document can be brought forward by the City or TCHFH.
All parties must agree in writing of any changes to this MOU. This MOU will be null and void
upon the later of one year or execution of a purchase agreement.
Non-Binding Offer
This MOU shall not be a binding legal agreement, and neither party shall have any liability to the
other until execution of the definitive Purchase Agreement.
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City of Hopkins
By:
Its:
Date:
TWIN CITIES HABITAT FOR HUMANITY, INC.
By:
Its:
Date:
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