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CR 95-202 Extension Of Period To Complete Required ImprovementsNovember 6, 1995 Proposed Action Staff recommends approval of the following motion: Move to approve the extension of the period to complete the required improvements at the Pines Mobile Home Park in accordance with Hennepin County District Court File 93050019, for a period of 90 days following written notice to the property owner or June 1, 1996, whichever comes first. Overview The owner of the Pines Mobile Home Park is, by court order, being required to complete certain improvements to this property as required by local ordinance. In May, the City Council approved action extending the period for completion of these improvements to December 1, 1995. Staff is now requesting that this period be extended as detailed above. The purpose of the proposed action is to give Real Estate Equities more time to address issues concerning a possible townhouse redevelopment project for this property. Primary Issues to Consider. o What improvements are required to be completed? o What is the reason for the proposed action? o What are the specifics of the proposed development project? o What is the impact of this action? o What are the staff conditions? Supporting Documents ( o Letter from Real Estate Equities \ z v EXTENSION OF PERIOD TO COMPLETE REQUIRED IMPROVEMENTS TO PINES MOBILE HOME PARK Jams D. Kerrigan Director of- Planning a d Economic Development 0 Council Report 95 -202 Council Report 95 -202 Page 2 Background The Hopkins City Council passed an ordinance in 1990 requiring owners of manufactured home parks to take certain actions and make improvements to their park within a specified period. The owner of the Pines Mobile Home Park, Gerald Hartman, H & H Pines Park Partnership, was notified in February 1993 that he was not in compliance with this ordinance, as various required improvements had not been completed in the park. In July 1993, a criminal complaint was filed in Hennepin County District Court against Mr. Hartman. In May 1994, Mr. Hartman pleaded guilty and was required to take one of the following actions: • Provide a closure notice to the residents of the park by January 1, 1995 • Complete all required improvements as set forth in the Hopkins City ordinances by August 19, 1995 In October 1994, H & H Pines entered into a purchase agreement with the Oaks of Mainstreet, Inc., a prospective buyer interested in redeveloping the property with a townhouse project. On November 14, the HRA met to discuss this project and directed Real Estate Equities to continue to move forward in their efforts as relates to this project. Primary Issues to Consider o What improvements are required to be completed? • Upgrade electrical service to the park, including under - grounding to individual units • Prepare and submit to the City a plan detailing the size and location of the park's water and sewer piping system These improvements required under City ordinances are a health/safety concern, but to staff knowledge, none present an immediate danger to the public. o What is the reason for the proposed action? On October 30, 1994, the owner of the Pines executed a purchase agreement with a developer. Since that time, the developer has been exploring various alternatives to facilitate a residential project on this property. Since the purchase agreement was completed, the developer has been exploring various alternatives to facilitate a residential project on this property. The developer recently met with the HRA. Based on this discussion, the developer was directed to continue to move forward concerning this project. With the proposed action, Real Estate Equities will have additional time to continue to explore implementation of their project. By approximately February, a final decision should be able to be made on whether to proceed with the project, based on this schedule. If there is a decision not to move forward, the Pines owner will have approximately three months to complete required improvements. Council Report 95 -202 Page 3 o What are the specifics of the proposed development project? The proposed project is a 60 -unit townhouse project. The HRA would own and rent the project for the first three to five years. After that period, the units would be sold. o What is the impact of this action? The only impact of approving the proposed action is to extend the period for which the improvements, in accordance with City ordinance, are required to be completed by the park owner. o What are the staff conditions? Alternatives Staff would recommend that as a condition of approval, the owner of the Pines Mobile Home Park be required to complete the following by December 31, 1995: • Plan detailing existing sewer and water plans in the park in accordance with the applicable City ordinance • Removal of abandoned units • Payment to the City, in full, outstanding water bills • Agreement by the owner to cooperate with staff and resolve immediate health/safety issues if they come up over the course of the extension. It will be understood that if the owner does not comply with the above conditions within the defined period, action concerning the extension will be null and void, and all improvements in accordance with City ordinance will need to be completed immediately. The City Council has the following alternatives regarding this matter: 1. Approve the action as recommended by Staff. With this action, it is assumed that Real Estate Equities will continue to move forward with the necessary steps to determine the feasibility of their project. 2. Deny the request. With this action, the City would have the ability to ask the courts to enforce penalties for noncompliance anytime within a six -month period following December 1. 3. Extend time period to a date different than recommended by staff. • November 16, 1995 Mr. Jim Kerrigan City of Hopkins 1010 First Street South Hopkins, MN 55343 Re: The Pines Mobile Horne Park Dear Mr. Kerrigan, Our company, The Oaks of Main Street, has an agreement to purchase the above property from H &H Pines Mobile Home Park and its owner Gerald Leo Hartman. In order to complete negotiations to acquire and develop the property as Townhomes, we have • previously negotiated an extension of the purchase agreement which was forwarded to you in our May 6, 1995 correspondence. As a condition of granting that extension, the seller initially required that the City's requirement that certain improvements to the park be completed no later than August 19, 1995 be extended to December 1, 1995. In order for us to continue through the development process the seller will need an additional extension through June 1, 1996 We are writing to request that the City agree to forebear exercising any of its rights and remedies against the owner of the subject property relating to the condition of the operation of the subject property for a period of 90 days following written notice to the owner but in no case beyond June 1, 1995. The additional time is necessary to complete our negotiations to accomplish a townhouse redevelopment project on the site of the existing trailer park. We anticipate appearing before the City Council in December to discuss the specific details of the new project and to get approval for a Preliminary Development Agreement. Keith S. Yans Vice President /cw