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CR 08-107 Sale of 13 and 15 Harrison Ave to Twin Cities Habitat for Humanity and the designation of the Use of Proceeds• .:..:.:... NS December 2, 2008 OPKIN Council Report 2008 -107 SALE OF 13 AND 15 HARRISON AVE TO TWIN CITIES HABITAT FOR HUMANITY AND THE DESIGNATION OF THE USE OF PROCEEDS Proposed Action Staff recommends approval of the following motion: adopt Resolution 2008 -065 to sell 13 and 15 Harrison Ave to Twin Cities Habitat for Humanity ( TCHFH) for $140,000 and designate those proceeds to the Hopkins Center for the Arts. 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. A public meeting was held, and the City of Hopkins approved TCHFH's proposal and signed a Memorandum of Understanding (MOU) contingent on TCHFH receiving HOME funds from Hennepin County. TCHFH was unable to secure the HOME funding, voiding the terms of the MOU, but they continued to seek other sources of funding. Some funding was acquired through the Minnesota Housing Finance Agency's LAAND program, and TCHFH returned to the City of Hopkins in June with an offer of $70,000 per lot. Informal discussions with City Council indicated that this offer was acceptable, and a purchase agreement was signed in September 2008. Before closing on the properties a resolution approving the revised sale price of $140,000 for both lots is required. Several options for the use of the net proceeds were explored and a recommendation was made to use the funds for the Hopkins Center for the Arts. Supporting Information • Resolution 2008 -065 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 -065 RESOLUTION APPROVING THE SALE OF 13 AND 15 HARRISON AVE TO TWIN CITIES HABITAT FOR HUMANITY FOR $140,000 AND THE DESIGNATION OF THE NET PROCEEDS WHEREAS Twin Cities Habitat for Humanity, Inc. ( TCHFH) proposes to purchase two lots on Harrison Avenue South from the City of Hopkins for $140,000; WHEREAS TCHFH has hosted a public meeting at the City of Hopkins City Hall at which members of the neighborhood supported the proposal; WHEREAS the City of Hopkins City Council supports this proposal to add to the housing stock of Hopkins; and, WHEREAS, the Hopkins City Charter requires the City Council to designate by resolution the use of the proceeds from such sales. NOW, THEREFORE, it is hereby resolved by the City Council of the City of Hopkins as follows: the sale of 13 and 15 Harrison Ave for $140,000 is acceptable and the proceeds from the sale of these properties shall be used to retire the debt of Hopkins Center for the Arts. Adopted this 2nd day of December 2008. S Eugene J. Maxwell, Mayor Attest: Terry Obermaier, City Clerk