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CR 96-32 Completion Improvements - Pines Mobile Home ParkFebruary 15, 1996 • COMPLETION OF REQUIRED IMPROVEMENTS- -PINES MOBILE HOME PARK Pronosed Action Staff recommends adoption of the following motion: Move to authorize the City Attorney to undertake the following actions, subject to staff conditions: 1. Extend the period to complete the required improvements at the Pines Mobile Home Park in accordance with Hennepin County District Court File 93050019 for up to a 12 -month period or upon 90 days written notice by the City to the property owner, whichever comes first, subject to staff conditions. 2. If unsuccessful with the above, terminate any further action on enforcement of Hennepin Count District Court File 93050019, with the condition that the owner of the Pines Mobile Home Park agrees to enter a plea of guilty on identical new charges with establishment of up to a 12 -month probationary period for completion of required improvements or upon 90 days written notice, whichever comes first, subject to staff conditions. The City Attorney does not feel comfortable at this time that he will be able to accomplish number 1 above; therefore, number 2 is being provided as an alternative. Either alternative would have the effect of extending the period for completion of required improvements at the Pines Mobile Home Park by the owner of that property. Overview As a result of a misdemeanor code violation proceeding initiated by the City Attorney, the owner of the Pines Mobile Home Park was ordered to make certain improvements to the Park to comply with City ordinances. If the owner fails to complete these improvements, he is subject to a fine or jail sentence. However, the court's jurisdiction to impose a fine or jail sentence will expire June 1, 1996. Based on previous action by the City Council, completion of the improvements was delayed until May 1, 1996. The improvements need to be completed by this date, and if not, the City can ask the court to take legal action against the owner (this action needs to be taken by no later than June 1, 1996). The subject action is being requested in conjunction with a staff recommendation for approval of a proposed preliminary tax increment application and execution of a preliminary development agreement between the HRA and Real Estate Equities for the redevelopment of the subject property. Based on this action, it would seem reasonable to delay completion of the subject improvements until a determination is made whether this project will actually take place. 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 staff conditions? Supporting Documents o Letter from T dderson, chief building inspector vi / James D. Kerrigan, Director f Planning and Economic Development Council Report 96 -32 • Council Report 96 -32 - Page 2 Primary Issues to Consider What improvements are required to be completed? • Upgrade electrical service to the park, including undergrounding two individual units • Prepare and submit to the City a plan detailing the size and location of the park's water and sewer piping system Attached is a letter from Tom Anderson, chief building inspector, concerning these improvements. o What is the reason for the proposed action? On October 30, 1994, the owner of the Pines executed a purchase agreement with Real Estate Equities to undertake a redevelopment of this property. Since that time, the developer has been moving forward on this project, based on discussions with the HRA. In January the HRA authorized staff to prepare a preliminary development agreement for this project. The agreement is being considered as an HRA item on February 20. In accordance with that agreement, the developer will have five months to complete certain activities and enter into a development agreement. Following execution of the development agreement, the developer would work with the tenants to negotiate relocation benefits. This step would probably take 60 days. The 12 -month period for completing the required improvements is probably more time than is required to make a determination that the redevelopment project will take place or to complete the required improvements; however, staff feels it is probably appropriate to have such additional time if necessary. The developer is hopeful that he will be able to move through these steps in an expedient manner and actually be in a position to have the tenants relocated from the site and start construction yet this year, if the project continues to move forward. Based on the proposed action, the City Attorney would undertake the necessary steps to extend the period for completion of the required improvements by 12- months, or upon 90 days written notice by the City. This would allow the City to require the completion of improvements sooner if there was either a default on the preliminary development agreement or the development agreement was not executed. o What are the staff conditions? • Approval by the HRA to execute a preliminary development agreement with Real Estate Equities • The owner of the Pines provides written agreement to the City that he will not move any new manufactured homes into the park during the extension period Council Report 96 -32 - Page 3 Alternatives The City Council has the following alternatives regarding this matter: 1. Approve the action as recommended by staff. Continue for additional information. With this alternative, the Council needs to detail to staff what additional information is required to make a decision on this matter. Deny the request. With this action, the preliminary development agreement will not be executed and it will be understood that staff will terminate any further action on the project as proposed by Real Estate Equities. Authorize staff to solicit action which would require completion of the required improvements for a period different than what is being proposed by staff. It should be understood that there needs to be sufficient time to undertake the following: Complete the tasks as required in the preliminary development agreement. Negotiate relocation benefits with the existing residents of the Pines. Provide time for the owner to complete the required improvements if the redevelopment project does not take place. The building inspector has stated that the electrical work needs to be done when the ground is not frozen. To: Jim Kerrigan From: Tom Anderson Date: JANUARY 30, 1996 Subject: Pines Mobile Home Park In response to your request I continue to be concerned about extension of deadlines for compliance at the Pines Trailer Park however I understand that is the goal of the City staff and Council is to effect a redevelopment of the property as soon as possible. The items that still are in need of correction must be corrected as soon as possible. It is my opinion that correction will take approximately 90 -120 days in order to complete the outstanding orders at the Pines Mobile Home Park. This time estimate is assuming that all plans and specifications have been completed, bids taken, and the contractor has suitable weather for construction. Some of the work could still be done during the winter months, however, most will require a frost free ground condition. The most pressing hazard at the pines is the electrical system. The electrical lines have deteriorated insulation and are not located the required 10 feet above the roofs of some of the trailers. Although this does not pose an immediate threat to persons on the ground their is a possibility someone could clime on top of the trailers and come in contact with them. This maybe considered a remote possibility due to the length of time this condition has existed but it certainly is not without concern. I hope this information will help the Council determine whether an extension of the deadline is warranted based on the limited risk.