Memo Handicapped Housing
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C I T Y o F HOP KIN S
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MEMORANDUM
DATE: April 9, 1992
TO: Honorable Mayor and City Council
FROM: ofic. Jim Kerrigan, Director of Planning and
Economic Development
SUBJECT: HANDICAPPED HOUSING INSTITUTE PROJECT
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I. Purpose of Discussion
At the April 14th meeting, the staff is proposing to discuss
the specifics of this project in more detail. The staff
would like to receive some direction regarding the Council's
interest in assisting the project, and in particular the
Council's interest in expanding the project boundaries to
facilitate other activities. This direction will allow
staff to provide input to the developer on how it should
proceed with the project.
II. Backqround/lssues
As the Council has been informed in a recent staff update,
the Handicapped Housing Institute has received approval from
HUD for financing a 24 unit handicapped housing project in
Hopkins. The site that was preliminarily identified for
this project is the northwest corner of County Road 3 and
5th Avenue South.
The site that was originally discussed would involve the
acquisition of three homes, a vacant parcel, and the use of
Second Street South (see site Alternative A and related site
plan) . The developer has secured purchase options on all of
this property except for the vacant parcel..
It appears that the above site would be able to accommodate
for the most part the density of the development as
proposed. However, staff has a concern that the project is
tightly fit on the site and there is very little area for
landscaping or other visual amenities. Staff feels this is
specifically important because of the location of this
project on a main roadway through the City.
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Honorable Mayor and city council
April 9, 1992
Page 2
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As a result of staff concerns, the developer has been asked
to look at expanding the project boundaries. This would
allow the project to be somewhat opened up on the site to
provide for more parking and significantly more landscaping.
By expanding project boundaries, staff is looking at the
possibility of acquiring the three additional homes between
Dow Towers and the original project (see site Alternative Bi
there is no site plan for this alternative) . Of these three
properties, one would be utilized to expand the green area
of the Handicapped Housing Institute project. The other two
properties adjacent to Dow Towers could potentially be
utilized for the following:
0 Provide for additional parking for Dow Towers. An
increasing number of the tenants that are occupying
this building have vehicles. It appears this trend
will continue into the future. The existing parking
lot for this building is inadequate to address the
parking needs. The HRA staff has talked about the
possibility of constructing additional family public
housing sometime in the future. These lots could be
utilized to construct a small number of units.
0 Create a greenway along 5th Avenue.
The problem with expanding the project's area to purchase
more property is that it significantly increases the overall
project cost. The following details the approximate cost of
both a smaller and larger project. Again, this would vary
somewhat with the number of properties acquired.
site Alternative A site Alternative B
Three Homes six Homes
One Vacant Parcel One Vacant Parcel
Acquisition $235,000 $510,000
Relocation 10,000 10,000
Demolition 21.000 42.000
Total $266,000 $562,000
In order to undertake the handicapped housing project, the
developer will need substantial tax increment land write-
down assistance. Again, this would vary depending on the
size of the project area. The larger the project, the more
assistance.
In order to off-set the public cost relating to land write-
down, the following sources of income would be available:
0 Tax increments generated from the project.
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Honorable Mayor and city Council
April 9, 1992
Page 3
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0 Public housing funds to pay for the land cost of the
property that would be used for a parking area for Dow
Towers.
0 Proceeds from the sale of the house south of Dow
Towers.
0 Land sale proceeds from the developer. It appears the
developer only has the capability within the HUD budget
for this project to pay approximately $50,000 for land.
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812~332-Sl:20 FAX 612.J~2.3r."