CR 88-244 Mobile Home Park First Right
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December 15, 1988 Council Report: 88-244
MOBILE HOME PARK FIRST RIGHT TO PURCHASE RESOLUTION
f.roJlosed Action.
Staff recommends adoption of the following motion: "Move that
Resolution No. 88-105 a re301ution 1n support of a bill whioh would
give manufactured home park reslden~s the fl:rat right to pu:rcbas8 th.!
parklt be received and referred to starr tor further inforllla~ion. -.
Adoption of this motion would delay a decision on a bill which would
require the owner of a mobile home park to sive the first right.of
refu8al to the residents of the mobile home park should it be put up
fol' sale.
Overview.
Residents ot the Pines Mobile Home Park and representatives from APAC
are requesting that tbe City Council adopt a resolution whioh would
support a bill requiring that mobile home park owners give the first
rigbt to purchase to tbe residents of tbe park in the event of a sale.
Staft bas not seen the legislation whioh 1s proposed to be supported
but have dis<;Hlssed the bill with APAC 1n order to understand its'
ramifications.
Staff is reoommending that the City Counoil receive the re801 ut.1on and
discuss its~ impaot, but delay a decision until further information
can be obtained on its' impaot.
Primary Issues to Consider.
0 What restrictions would apply to the current land owner?
0 What opportunities would exist for the residents?
0 What is the role of the City in government regulation of
this type
~up~or-ting Documentation.
0 BaCkground
0 Staff Analysis of Issues
0 Alternatives
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~teven C. Mielke
Community Development
Di rector'
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Background.
Members oft he All Park's Alliance For Change {APAC) are attempting
to have legislation pa~sed which would gi v~ residents of the mobile
home park the first right of re rusal in the purchage of the mobile
bome par-k in whioh they reside 1 fit should beoome available for sale..
In the past, mobile home parka have either been closed without the
OPPol"tunlty for residents to purchase the park or have been sold to
otber owners with positive or negative rami fications 0:1 the existing
mobile home owners.
The purpose of the bill is to allow for a mobile home park residents
group to organize and attempt to purchase the park should they desire
to do so, and the legislation apparently requires a 60 day period tOJ"
an association to be formed and an additional 60 days delay in order
to obtain financing for the purchase by the residents.
Although there are no cooperatively owned trailer parks in the twi.u :;.'
oities area, APAC is of the opinion that a cooperatively owned park
could financially exist and fee Is residents should be given the
opportunity to form a cooperative to purchase the park.
In the City of Hopkins, the Pines Trailer Park has sold during the
past year, and although the park has not been slated for closing, the
rental payments have increased substantially since the 8 a l<t .
Unfortunately the new owners have put Bome money into the parle but the
park continues to be less than adequate f'or park standards.
The City staff has just recently received a copy of the proposed
resolution and has some serious questions regarding the ramifications
of the bill on both the property owner and the Ci t Y8 ' role in
governmental regulation of this type.
Statt Analysis of Issues.
- What restrictions would apply to the current land owner?
It is the staffs understanding that a land owner wbo wishes to sell
the park must, at some point in his decision, make the parle 2vai lab Ie
to the residents for purchase. He could do thIs either prior to
arranging for a sale with another private individual or simply offer
the park for sale to the residents of the park. Once a price has been
determined for the la.nd , the residents of the park would have 60 days
in order to form an association whose pu.rpose would be t.o try and
secure financing for the sale. ASSuming an association is formed, the
park would then have to wait 60 days whi le the association attempts to
tind appl'opriate financing. This four month period may, in the mind
of t.he ow-ner, be too extensive a period of' time in order to wait for
~ the sale of the property, thus making it difficult fer a land owner to
readily dispose of his proper'ty.
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If' the park happens to be having difficulties this may be a great
burden on the our rent land owner.
It is staffs understanding that should the owner t'g d u c e the price at
any time during the stated period of notice to the residents, the t.ime
pe ri od for waiting until a sale can be consummated extends to a new
beginning date,
Historically, land owners of mobile home parks as well as other forms
of rental p rope rty , have had easy access to buy and sell property on a
frequent basis. The imposition of this law on the land owner would be
a giant step in government regulation over private propel"ty and the
regulation thereof,
- What opportunities would exit for the residents?
Residents of' a r.'obile home park would be given the opportunity to
purChase as a cooperative group the mobile home park in ~hich they
currently reside. Although they would have to set up administrative
prooed"ures and a financing mechanism, the purohase of a oooperative
park may offer tb.em long term security in a metropolitan environment
. which generally makes this type of houaing too expensive to maintain
jn its current form. Residents of the park who are of low and
moderate In~ome often times find the purchase of a mobile home to be
an exoellent investment on a moderate inooma. The seourity otre~ed by
the knowing that they reside in a cooperative park may eVe~ strengthen
their desire to in ves t and upgrade their mobile hOlllas in that park.
- What is the role of the City in government regulation of this type?
Typically, the role of a oity government in housing has been to try
and provide for lOll and moderate income housing within the community.
The City of Hopkins has a good background in llelping to provide low
and moderate income hOUSing; however low and moderate income housing
takes maDY forms and it ~8 also the role of a city to make sure that
the housing environment is adequate to provide a good living
environment for the residents.
It has generally not been the role of government agencies, and
especially cities, to regulate or interfere with the sale of private
property. The City Council has dist:u3sed involvement of this type
with Westbrooke Patio Homes and Condominiums as well as other types of
residential }'ental property and have dtlcided not to become involved
with thid type of activity. It. is generally more appropriate for
local government to become involved in the regulation and the
upgrading of low and moderate income housing stock to make 5ure that
it is safe and adequate of its residents. Simply by purchasing this
property as a cooperative would not ensure that residents receive good
low and moderate income housing environments. The City has had a role
in provlding for low and moderate income housing by working with
property owners on Section 8 Housing and by helping to build
properties designed for low and moderate income housing.
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Alternatives.
1- Adopt:. the resolution as ~equeated by APAC.
Adoption of this motion would lenti support to a bill raquirina
that mobile home park owners give the first right of' refusal
to the resident.s of the mobile home park when the park t.
ottered for sale. Staff is not ~ecommending this alternative
at this time.
2. Deny the request to approve the resolution as requested by
APAC.
Adoption of this alternative would indicate a desire OD the
City Councils part not to become involved ~ith this issue or
to not support the concepts behind it.
3 . Delay action on this item until more discussion is he ld .
Adoption of this option would result in a delay until at least
January 3 1n order to gather info!"Dl8It1on from the ourrent
property owner and staff on the implicatiQns ot this bill.
. Start is recommending that the Council delay action on this
item since we have not had time to receive input tro. the
current owner of the trailer park nor have we fUlly had a
ohanoe to d1scusa the ramifications or tbis bill. There are
certainly social implications as well as economic developaent
and property right implications to this bill. Sta1"t haa Dot
seen the bill and is always hesitant to give approval to
something without having seen the language.
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. APAC
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ALL PARK'S ALLIANCE FOR CHANGE
(AN ORGANIZATION OF MOBILE HOME RESIDENTS) 7671 Old Central Ave. N. E.
Suite 209
Fridley. MN 55432
786-2831
'lhe Pi.n?s/APl\C would like to rpquest JklI.idns city council to pass a
non-binding rer'..olution (see enclosure) suppartinga hill for rocbile lone
residents. We rope to be placed on the agen:1a for the Decerrber 20tl.
council ~ting to address the council on this issue.
The bill, llIhich we have deScribed for the COlUlCil in the past, would
give nd>ile heme residents the first option to purchase their park if it is
sold. In 1986 when we organized to stq> the park closing our goal had been
to form a cooperative and b.r.f the park. We had National Cooperative Bank
interested in financing the project and a lawyer who wrote much of the MN.
,.. statute r~arding Cooperatives the mly thing that stoFPErl us was the park
OWJ'lf"r refusing to even foc-et with us, if you will recall they gave the
option to purchc'1sc to em i.nvpr;1:or who tolrl park r('sidentr; thr,t ~ was going
to buy the park, fornl a cooperativ~ mod sell it b<lck to the T.f"shl~nts for
$600,000 profit. We called his bluff, contacted National Cooperative Bank
ana. €'~'CplainP.<1 tile situation and luckily the investor disa~ared. The
O\.-mers tll011 ~old thp. pc,rk to anotlrr g,..neral {Xlrtncrship th;,t shows no
signs of iJll'Toving the sihmtion at the Pires. W:-> !;ay the only chance our
ca'rmunity h,,"1.~ to survive is gain lor.Fll control over the piJrk, to awn the
l.~ oursp.lvp.~ dS a c~rati.ve. NPvf'r again do we want to f(lr.(-> the terror
we faaxl two Y0Rrs ago.
Your f:u[lX)rt in 1~87 was vital. The statistic.s have nm ch.-:mged since
then, tJ1(~re arp. still on the nverclge on ly 9 vacancies for older hares in
the metro arPa, out of 11,000 tot~l. l\t tJ-IJ.s JX>int a park dosing would
fprre Tn'flY of u::; cith01" PIlt"O gnv('n1m'nt-. sul:x;icrj progrmn nr nl1to thp
Rt_n'i:'t~!. C00l"'Y,"'ll. i ve c;ollv('rsion h"" m,ny long t('nn <tdvantugpf; for. both 'I'l~
Pines and the> city of IIP1,kin8. It H")1.11d give us 1"lIP local cf'tntrol we so
(10~ratply Jl<"('>d, it WC'111tl stnbili7.f' ("Iur rent which has lx>en ndsNl $25
every six tnOntJls for th.. last Yf>nr tlnd a half a!xl nrM stams ilt $250 per
Il'Onth. It is also a Wily for the city to maintain a significant sector of
law-inC'Cl1'e housing wi thOIlt-. using tilxpayerr s rronPY.
Ne hOF€ you will join other public officials i'lrrl civic leaders in
sllf'rort:lng thi s b.i 1 L S.....n"tor McQI.li1;(l ""5 mlfVlrf-rd our lpgi.sl<1tion in the
p,,~:l. (,t"d hilS jyv'n }:f>('nly inh'H'stNl in ollr work in t-hp pillf's. T.,,,t. year the
city of Spdll(] L""\ke PZlr-k ....ndorSNl tlv~ Jp.qislation il1\d allocilt.ed $10,000
tc........ard a c<X'pcrative effort in their ci ty. One of our rrenbers \....i.l1 call
. ']0U this Wf'd~ to MhWf'r (my quest i('n~, nr concerns you m:lY have.
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",werne Nichols, Pines/i\.PAC
(FOf1MFnL Y ^NOK^ PFOrl.E'S ALLIANCE FOR CHltNGE)
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co-operative Star Tribune/Thursday/Dee 15/1988 ws 5"(
. fJlabile homes Coatiaued rn. Pate IY
ownership bill ,
The alliance, formerly the Anoka ier citizens. They like the idea t>>-
to be revived PfJOpl6' Alliance for Change, began c:l11Se it would .turn their rent pay- \
about eight yeaB ago with a handful ments into eqwty bo.lildina mm1p&e
. .~~ of mobile home residents from payments, thus living them an OJ)-
By Den Freeborn IV'-J,t: southern Anoka County. Smce then ponunilY to buy land they wouldn't
StafT Writer .' r4'"1 ,...; the group has grown in size, political normally halfe, ~oya.: said.
') I c1ol~t and savvy.
Next week members of a mobile She said the alf~ rent in metro
home 3i.hocacy group will ask five In the past year !hl' organization area parks is about 25() a mon!h and
JTC3 ell)' cOLlncils to cndorK 3 bill mort than doubled !l~ mcmbcrl>hip Shl' predicled that under a co-op ar-
[hat would givc park residents first when it extended its services to mo- rangernent that amount would proba- .
crack al buying their park~ bile home rrsidents in Hcnnepin. bly stay about the same.
Ramsey, Dakota and Washington
Members of the All Park's Alliana counties. Now it includes about 450 RDyce described a typical co-op tCC-.
for Change (APAC) Monday wiU ask membel"$ and ! 5 T....;n Cities metro- nario like this: Under the proposed
the Fridley, Lakeville and Ham Lake polian area parks with chartel"$. Tbe lqislation, mobile bomr; residcaUs !
city co~ncils to adopt n:s!llutions group changed its name last summer are notified that tbcir part. is 'fOr sale
supponmg the "first right to pur- to reflect ihat expansion but retained and told its prke and We conditions.
c~ase" bill. On Tl.le$day the group tbe same initials so that it would be They decide to buy the land and then
Wllllobby the Rosemount and Hop. recog.nizabk to legislators. bave about twO months to wort cut
kins councils. the co-op dcUils and F1 money fou
"We're planning a iobby day for down payment. If the owner acceptS
The legim.tion would make mobile wmetime shonly aner Christmas the bid. the residents have anotbCr
home park owners tell their tenants and we'll be talking to legisialors who two months to oourt banks or Ocbu
~he pri~ and ronditioDs of impend- have parks in their districts," said lending in.o;titutions for a loan.
mg park. sales. Residents 'wuld have Royce. "We hope to have a good
60 days to organize cooperative own- number of people witb us represent- Tbe alliance. would offer its expertise
ersbip and try to ammge to buy the ing parks tbat day." Rep. Aiiee John- to parks ~in& such II coover-
pan. Then tbey would have 60 da~ son, DFL-Coon Rapids, and Sen. sioD. 'Yt-'heo residents of the Tcrr&:lC
. to get financing. Gene Merriam, DFL-Coon Rapids, Mobile Home Park in Sprina Lake
will introduce the bill. Park tried to buy their park last sum-
The bill was proposed in the laSt Although there are no cooperatively mer they bad bdp from the all.iance
legislative session. but was tabled in and nqotiatod for a loan with the
a housing subcommittee. "We owned mobile borne parks in the National OHlp Bank En W.sbi..cm.,
brought it in kind of Iatc and on state, three recent attempts to begin D.C. The part wasn't S(lId, but the
sh~n n~tic:e so it didn't &d very liar," co-()ps have encouraged alliance bank sbowed an interest in future
said Diane Benton, Alliance presi- leadership '0 pursue the idea. Many cooperative mobile bOme ventures.
dent. mobile home ruidents are low--in-
come $i. household heads or sen.
:rtis time the orp.nizatWn has done
lIS homewor\: preparina for the next
session, she said.
AII!ance !~en last week SOt a res0-
lutIOn baCk.lng the bili from the
Spring Lake Pa.rk Oty Council. Oth-
er endorsers include the $t&k Com-
munity Action Directors Association
and the Ano~ Community Action
Program. Petitions have been MU-
la!ing in member parks and resi-
dents' interest is growil1&, said Caty
Ro~ce. an Anoka County alliance or-
gaOlzer.
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