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Home My WebLink About7B - Habitat for Humanity 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT APRIL 20,2009 7B DANETTE M. PARR, COMMUNTIY DEVELOPMENT AND NATURAL RESOURCES DIRECTOR AND STEVE ALBRECHT, PUBLIC WORKS DIRECTOR/CITY ENGINEER A PRESENTATION REGARDING HABITAT FOR HUMANITY Introduction The purpose of this agenda item is to provide the City Council with background on the Habitat for Humanity organization. In addition, Staff would like to share with the Council information regarding a possible opportunity for the City to partner with Habitat for Humanity for the future construction of a residential home on City owned property located at 3631 170th Street (location exhibit attached). History In 2007 as part of the CR 12 project from TH 13 to Walnut Avenue the County acquired 3631 170th Street SW (CR 12) for the extension of Elm Avenue to the Stonebriar Development. The City and County previously approved an Access Management Plan with MNDOT that limits the access to the Stonebriar property. This Agreement was required in order to receive $850,000 in funding from MNDOT for the project. The total cost of acquisition including consultant fees was $375,000. After splitting the parcel to create the needed right-of-way for Elm Avenue there was still a 0.98 acre lot remaining on the corner of Elm Avenue and CR 12. As part of a Cooperative Agreement the County conveyed the property to the City. The County also deferred the City's contribution to the right of way acquisition detailed above until we sold the property or as part of the phase 2 CR 12 project scheduled to begin in 2010. The Cooperative Agreement details that the City will owe the County $100,000 at that time as the County paid 100% of the acquisition costs of the lot for right of way. Current Circumstances In the past, the City Council has discussed possible ways to increase attainable housing for Prior Lake residents. In acknowledgement of this fact, City staff has been looking for creative ways to support the 2030 Vision and Strategic Plan related to Housing Quality and Diversity. Particularly in respect to the following goals and objectives: . Work with the County Housing and Redevelopment Authority, other agencies, foundations and non-profit agencies to assist in meeting housing needs. www.cityofpriorlake.com F<c,uclrtu\o~~~i2!~~~1,g~Ql(~ tbffi~&l1~r7r1~~~I~ilY. DCIC . Identify and implement innovative strategies for meeting the needs of entry-level and median-income house buyers. . Achieve diverse housing. As the Council may recall, in the past the City has attempted to integrate attainable housing within PUD's (one example was in the Stonebriar development). However, no mechanism was found that would allow for reasonable measures to assure that the attainable housing pricing was not drastically impacted by elevated housing costs associated with construction upgrades or changes in ownership. Chad Dipman, Land Acquisition Project Manager for Habitat for Humanity, and Kristin Beckmann, Government and Community Relations Director for Habitat for Humanity, will make a presentation at the Council meeting, sharing information about the organization and the potential for a partnership with Habitat for Humanity to construct a future residential structure at 3631 170th Street. In addition, it should be noted that other partnerships could be established, such as with the Prior Lake-Spring Lake Watershed District to allow for the establishment of "green initiatives" (i.e.: rain garden, pervious pavers, etc), which could serve as an educational component for the City. ISSUES: Habitat for Humanity is a widely respected organization that has successfully completed residential sites in Scott County and throughout the metro, U.S., and abroad. Habitat for Humanity is an organization that has not previously built within Prior Lake, for that reason, Prior Lake citizens will likely have many questions, including the foltowmg: Who will pay the costs associated with the land and cost of the construction? The land was acquired as part of the CSAH 12 project and would be donated to Habitat for Humanity in exchange for their agreement to construct a house on the site meeting the need of entry level and median homebuyers. The previous residential structure had SAC, Park Support, City Sewer and Water Fees, and Water Tower credits associated with it from before it was raised from the site. As part of the above agreement, Habitat for Humanity would ask that the credits (estimated value of $5,350) be applied to this project. The following fees would be paid by Habitat for Humanity, in addition to any other costs associated with construction and inspections: FINANCIAL IMPACT: 2009 Charges Associated with Building Permits For a proposed single family dwelling at 3631 170th St. Building Permit Fee Plan Review Fee State Surcharge Motropoliton Se'.\lor N.'::il::13ititv-CharQo (S/\C) -Park €1::F'port Fee City Sowor and 'Note:- Fee Water TO'Aler Feo Water Meter - 5/8" Water Pressure Reducer - 5/8" Builder's Deposit (Refundable) Basic Plumbing Permit Fee Basic Heating Permit Fee (with AlC) Sewer and Water Permit Fee Gas Fireplace Permit Fee 8stirTl~J~cf\!alue= $250.000.00 $1,953.50 1,269.78 125.00 2000.00 850.00 1,500.00 1000.00 335.00 90.00 1,500.00 150.00 150.00 52.00 50.00 $5675.28 11500.00 refundable\ . $4175.28 (1 credit) (1 credit) (1 credit) (1 credit) TOTAL Who would be responsible for the future construction of the residential structure? Typically, construction is done in combination with volunteers, the future homeowners, community partners, and Habitat for Humanity staff. The Habitat for Humanity representatives will give more details about this at the Council meeting. What would the residential structure look like? The future house design has not been established. However, it would be designed to reflect the existing neighborhood and possess many of the architectural elements on the facades of the adjacent Stonebriar development. City staff would work with Habitat for Humanity to establish an acceptable design. There would be no long term distinctive features that would make the home distinguishable as a Habitat for Humanity home within the neighborhood. The Habitat for Humanity representatives will give more details about this at the Council meeting. As part of the 2010 CR 12 project, the City will be reimbursing the County for the right of way. The 2010 Project ha5 identified full funding for the $100,000 reimbursement. ALTERNATIVES: 1. Provide direction to the Staff regarding this proposal to partner with Habitat for Humanity, including identification of any concerns the Council may have. 2. Direct that the parcel to be sold to recoup a portion of the right of way investment cost (any recouped proceeds would be directed to the Street Oversize Fund). RECOMMENDED Alternative 1. The staff, with the assistance of the City Attorney, would MOTION: prepare the necessary documents for Council consideration. Reviewed by: Frank~L'l Manager UJ => z - UJ ~ - l- => Z ...J ~ f) I ! / r----, HABITAT FOR HUMANITY SUBJECT SITE ~ ( w => z w ~ :E ..J W UJ z :5 3: o .J .J i PROJECT SITE 170TH STREET .,,-- r STONEBRIAR Clf~ , \ , /:~ N -i~ _ _ Feet ./ 0 50 100 200 300 400