Loading...
VII.4. Resolution transferring the property at 101 Oakwood Road to the Hopkins Housing Redevelopment Authority; Imihy CITY OF HOPKINS City Council Report 2025-047 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Laila Imihy, AICP – Special Projects and Initiatives Manager Date: March 18, 2025 Subject: Transfer of the Property at 101 Oakwood Road to the Hopkins Housing and Redevelopment Authority _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve Resolution 2025-019 transferring the property at 101 Oakwood Road to the Hopkins Housing Redevelopment Authority. OVERVIEW In 2022, the City was approached by the property owner at 101 Oakwood Road in pursuit of a reasonable accommodation request to allow for a sober home of eight (8) individuals, where the City Code allows for no more than six (6) individuals to live in a sober home. The reasonable accommodation process allows for a property owner to seek relief from the City’s code when there may be a violation of the property owner’s access to housing under the Federal Fair Housing law. Staff processed this application over the course of 2022 and recommended denial. The property owner appealed this decision to the City Council who also recommended denial. Following these denials, the property owner sued the City of Hopkins alleging discrimination. Legal proceedings began in 2023, and the City was assigned a defense attorney through the League of Minnesota Cities Insurance Trust (LMCIT). It was ultimately advised by the City’s legal council to settle the matter through the purchase of the property in December 2024. The LMCIT incurred litigation costs and made settlement payments totaling $189,234.90 in relation to the negotiated settlement with the property owner. This was a covered claim under the City's insurance policy. The City was responsible for $41,415.42 of the total cost, which will be paid out of the insurance risk fund. The purchase of the home was made by the City’s Economic Development Authority for $618,500. The property is a two (2) story single family home, with 8 bedrooms, 2.5 baths, is 3166 finished square feet located in the Interlachen neighborhood and was used previously as housing for nuns who served the adjacent church. As of 2024, the taxable market value for the home was $528,300, and a notes from the Hennepin County Auditor describes the property as “Main floor poor layout. Functional depreciation. In need of repairs.” Upon taking ownership of the property, the City immediately repaired a dilapidated porch off and noted several issues with the home including extensive damage to the first-floor bathroom as well as needed repairs to the boiler. Administration The City has held two closed meetings to discuss options with the property. Under Minnesota State Statute 13D.05 subd. 03, cities may close a public meeting when discussing matters of real estate to: (1) to determine the asking price for real or personal property to be sold by the government entity; (2) to review confidential or protected nonpublic appraisal data under section 13.44, subdivision 3; and (3) to develop or consider offers or counter offers for the purchase or sale of real or personal property. An agreement reached that is based on an offer considered at a closed meeting is contingent on approval of the public body at an open meeting. The actual purchase or sale must be approved at an open meeting after the notice period required by statute or the governing body's internal procedures, and the purchase price or sale price is public data. In the two closed meetings in February and March, staff and the City attorney presented alternatives on how to best sell the home as well as market research from real estate agents and homebuilders on the value of the home. During those meetings, the Council determined the value of the property and selected a real estate agent to sell the home. To the sell the home, the City will need to transfer ownership of the property from the City of Hopkins to the Hopkins Housing and Redevelopment Authority as the regulations for home sale by the HRA are significantly more flexible than the rules of the City Charter. At a special HRA meeting following tonight’s council meeting, the HRA Board will review a seller’s agreement with Desroches Realty Group for the property sale. Tonight, staff will provide an overview of the timeline to sell the property including covering the restrictions which will be placed on the property including that: a. The Property can only be used as single-family residential housing with up to five bedrooms in the structure; and b. The Property will contain a restrictive covenant which will prohibit use as anything other than a single-family residential home. SUPPORTING INFORMATION • Resolution 2025-019 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2025-1225 RESOLUTION AUTHORIZING TRANSFER OF PROPERTY BY THE CITY OF HOPKINS TO THE HOPKINS HOUSING AND REDEVELOPMENT AUTHORITY WHEREAS, the City of Hopkins (the “City”) previously acquired property legally described as set forth in Exhibit A (the “Subject Property”); and WHEREAS, the Subject Property is presently occupied by a house ; and WHEREAS, the future use of the Subject Property is contemplated by the City to be as a redevelopment or rehabilitation of the existing home; and WHEREAS, the City desires to work in conjunction with the Hopkins Housing and Redevelopment Authority (the “HRA”) to oversee the sale and redevelopment of the Subject Property; and WHEREAS, the City is authorized to convey real property to the HRA pursuant to Minnesota Statutes, Sections 465.035 and 471.64; and WHEREAS, the City and HRA have followed applicable statutory provisions, including but not limited to, Minnesota Statutes, Section 465.035, Minnesota Statutes, Section 469.024 and Minnesota Statutes, Section 471.64, in authorizing the conveyance of the Subject Property; and WHEREAS, the City has determined it is most cost effective to convey the Subject Property to the HRA in consideration of one dollar ($1.00) and other good and valuable consideration pursuant to this Resolution and a standard quit claim deed; and WHEREAS, the Subject Property shall be subsequently conveyed by the HRA pursuant to Minnesota Statutes, Section 469.029 for redevelopment or rehabilitation purposes, as single-family residential housing; and WHEREAS, the City finds and determines that conveyance of the Subject Property as contemplated herein to the HRA is for a public purpose and is in the public interest. NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby: 1. The recitals set forth in the preamble to this Resolution and the exhibits, if any, attached to this Resolution are incorporated into this Resolution as if fully set forth herein. 2. The City Council finds and determines that the requirements of Minnesota Statutes, Section 462.356, Subdivision 2 are hereby satisfied, or alternatively, dispensed with based upon the findings of the City Council. 3. The City Council finds and determines that the transaction herein referenced and contemplated is for a public purpose and is in the public interest. 4. The City Council approves the conveyance of the Subject Property to the HRA pursuant to Minnesota Statutes, Section 465.035 and Minnesota Statutes Section 471.64, and authorizes and directs the Mayor and City Manager to execute the deed and related documents necessary to facilitate the transaction referenced herein and contemplated herein, with all such actions to be in accordance with the terms and conditions set forth in this Resolution. 5. The City shall convey the Subject Property to the HRA in consideration of one dollar ($1.00) and other good and valuable consideration pursuant to this Resolution and a standard quit claim deed, and the HRA shall subsequently sell and convey the Subject Property pursuant to Minnesota Statutes, Section 469.029 for redevelopment or rehabilitation purposes, as single -family residential housing. 6. The subsequent conveyance of the Subject Property by the HRA shall be subject to the following terms and conditions: a. The Subject Property shall obtain all applicable planning and zoning approvals and necessary building and other permits; and b. The Subject Property shall be single-family residential housing with up to five bedrooms in the structure; and c. The Subject Property shall contain a restrictive covenant setting forth the requirements contained in paragraph 6. 7. The Mayor and City Manager of the City are hereby authorized to execute all required documents necessary in furtherance of this property transfer. 8. The Mayor and City Manager, staff and City Attorney are hereby authorized and directed to take any and all additional steps and actions necessary or convenient in order to accomplish the intent of this Resolution. Adopted by the City Council of the City of Hopkins this 18 day of March, 2025. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk EXHIBIT A Legal Description of Subject Property Lots 1 and 2, Block 4, F.A. Savage's Interlachen Park, Hennepin County, Minnesota.