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REQUEST FOR HRA ACTION <br />Date: 8-19-14 <br />Item No: 9a. <br />Staff Approval: Agenda Section: <br /> Action Item <br />Item Description: Authorize entering into a development agreement for 1840 Hamline <br />Requested Action <br />1 <br />2Authorize staff to hold a public hearing for sale of 1840 Hamline and enter into a <br />3development agreement for the construction of a new home. <br />4 <br /> Background <br />5 <br />6The RHRA Lot Replacement Program removes substandard, functionally obsolete <br />7housing on scattered sites throughout the City and replaces them with new, higher- <br />8valued, sustainable housing. The HRA bought 1840 Hamline on January 27, 2014, for <br />9$98,000. The home and garage were demolished in the spring of 2014. The appraisal <br />10for resale that was completed after the removal of the buildings put the value of the lot at <br />11$98,000. <br />12The RHRA received two proposals to construct a new home at 1840 Hamline: one from <br />13Caldworks LLC, a new builder who sought to purchase the lot for $84,000; and one from <br />14Crandall Construction, a seasoned builder who offered to purchase the lot for the full <br />15asking price of $98,000. Caldworks LLC has, however, withdrawn their offer since they <br />16did not believe they could compete with the experience of Crandall Construction nor <br />17could they be competitive on the purchase price of the lot. <br />18Crandall Construction is proposing to pay the full asking price of $98,000 and to build a <br />19house with the following features: 2 stories, 4 bedrooms, 3 baths, and a 2-stall garage. <br />20Crandall Construction has provided a check for $500, letters of financing, a letter of <br />21intent with a contractor, house plans with elevations, and other information related to <br />22green and unique features. HRA staff has consulted with the city planners to verify that <br />23the proposed home is compatible with the housing in the existing neighborhood and that <br />24the house would be complimentary to the area. <br /> Staff Recommendation <br />25 <br />26Staff recommends working with Crandall Construction. The next steps are to hold a public <br />27hearing regarding the sale of the property to Crandall Construction and to prepare a mutually <br />28agreed upon development agreement to construct a new home at 1840 Hamline Avenue. <br /> Suggested RHRA action <br />29 <br />30The RHRA authorizes staff to bring forward a development agreement and to publish a <br />31notice for a public hearing regarding the sale of 1840 Hamline Avenue to Crandall <br />32Construction. <br />33 <br />34 <br /> Prepared by: Jeanne Kelsey: jeanne.kelsey@ci.roseville.mn.us; 651-792-7086 <br />35 <br /> Attachment: A: Crandall Construction <br />1840 Hamline Lot Replace Applications (08-19-14) - Page 1 of 1 <br /> <br />