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6.2A. SR 03-17-1997I'rE1-Y6.2.a. ity of iver MEMORANDUM TO: FROM: DATE: SUBJECT: Issue Consider Ordinance No. 97- Mayor and City Council Steve Ach, City Planner_~c/~ March 17, 1997 Consider Ordinance No. 97-__, Closure of Manufactured Home Park, Public Hearing Case No. OA 97-4 __., estabhshing an ordinance relating to the closure of manufactured home parks. Attachments · Ordinance No. 9%__ · Minutes from the February 18, 1997 City Council meeting · Letter from All Parks Alliance for Change dated February 28, 1997 Background At the February 18, 1997 City Council meeting, the City Council reviewed two alternative ordinances prepared by the City Attorney for the closure of mobile home parks. Each of the alternatives were similar in content with the exception, Alternative A, was drafted with additional compensation being based on the estimated market value of the mobile home park as determined by the City Assessor. On the other hand, Alternative B was set up with the additional compensation being determined by an independent appraiser to determine the value of the manufactured home. After discussing these two alternatives, the City Council voted 4-1 to consider Alternative B, which included the additional compensation being determined by an independent appraiser. Therefore, the attached ordinance is identical to the Alternative B that was presented to the City Council on February 18th. Letter from All Parks Alliance for Change (APAC) At the last City Council meeting, Beth Fraser, an organizer with APAC spoke before the Council regarding additional compensation paid to the residents in 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 Memo to the Mayor and City Council/OA 97-4 Page 2 March 17, 1997 the Hopkins and Bloomington parks when they were closed. Ms. Fraser indicated that the additional compensation was for the relocation of personal belongings to the residents who turned over their titles with the sale of their homes. In the attached letter from Ms. Fraser, she highlights the Hopkins Mobile Home Park closing and the additional compensation provided to the residents. In this particular situation, the residents of the park were entitled to an additional compensation of $1,950 in addition to the money they received for the purchase of their mobile home. Based on the additional compensation that was given in the Hopkins case, Ms. Fraser is requesting the Council consider including in the proposed ordinance awarding the residents of Elk Terrace Mobile Home Park an additional $900 for personal moving costs. Staffs understanding of the Hopkins park closing was a situation where the developer negotiated with each tenant of the park to arrive at an agreeable compensation. The City of Hopkins was not involved with these negotiations, but as Ms. Fraser points out in her letter, the City of Hopkins did ultimately accept the purchase agreements and rental waiver agreements as part of closing the mobile home park. However, the City of Hopkins did not require the additional compensation to be paid; this compensation package was "accepted" by the city as the developers negotiated compensation package for closing the park. The attached ordinance prepared by the City Attorney includes relocation costs for residents wishing to relocate their mobile home within the 25 mile radius. These reasonable relocation costs include the actual expenses in moving the displaced residents manufactured home and personal property. If the residents of the manufactured home park wish to tender title to the manufactured home, the additional compensation would be based on the estimated market value of the manufactured home as determined by an independent appraiser. This additional compensation would not include moving expenses of personal property. Conclusion The City Attorney will be in attendance Monday to give a brief overview of the ordinance. Recommendation It is recommended the City Council consider Ordinance No. 97- attached to this memo. , as s:\councilkoa97-4.doc CITY OF ELK RIVER, MINNESOTA ORDINANCE NO. SECTION 1010 MANUFACTURED HOME PARK CLOSINGS SEI~TION 1010.00. PURPOSE. In view of the peculiar nature and problems presented by the closure or conversion of manufactured home parks, the City Council finds that the public health, safety and general welfare will be promoted by requiting compensation to displaced residents of such parks. The purpose of this Section is to require park owners to pay displaced residents reasonable relocation costs and purchasers of manufactured home parks to pay additional compensation, pursuant to the authority granted under Minnesota Statutes, Section 327C.095. SECTION 1010.02. DEFINITIONS. The following words and terms when used in this Section shall have the following meanings unless the context clearly indicates otherwise: Closure statement - a statement prepared by the park owner clearly stating the park is closing, addressing the availability, location and potential costs of adequate replacement housing within a 25-mile radius of the park that is closing and the probable relocation costs of the manufactured homes located in the park. Displaced resident - a resident of an owner-occupied manufactured home who rents a lot in a manufactured home park, including the members of the resident's household, as of the date of park owner submits a closure statement to the City's Planning Commission. Lot - an area within a manufactured home park, designed and used for the accommodation of a manufactured home. Manufactured home - a structure, not affixed to or part of real estate, transportable in one or more sections, which in the traveling mode, is 8 feet or more in width or 40 feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical system contained in it. Park owner - the owner of a manufactured home park and any person acting on behalf of the owner in the operation or management of a park. Person - any individual, corporation, firm, partnership, incorporated and unincorporated association or any other legal or commercial entity. SECTION 1010,04. NOTICE OF CLOSING. If a manufactured home park is to be closed, converted in whole or part to another use or terminated as a use of the property, the park owner shall, at least nine (9) months prior to the closure, conversion to another use or termination of use, provide a copy of a closure statement to a resident of each manufactured home and to the City's Planning Commission. SECTION 1010.06. NOTICE OF PUBLIC HEARING. The Planning Commission shall submit the closure statement to the City Council and request the City Council to schedule a public heating. The City shall mail a notice at least ten (10) days prior to the public hearing to a resident of each manufactured home in the park stating the time, place and purpose of the heating. The park owner shall provide the City with a list of the names and addresses of at least one resident of each manufactured home in the park at the time the closure statement is submitted to the Planning Commission. SECTION 1010.08. PUBLIC HEARING. A public hearing shall be held before the City Council for the purpose of reviewing the closure statement and evaluating what impact the park closing may have on the displaced residents and the park owner. SECTION 1010.10. PAYMENT OF RELOCATION COSTS. After service of the closure statement by the park owner and upon submittal by the displaced resident of a contract or other verification of relocation expenses, the park owner shall pay to the displaced resident the reasonable cost of relocating the manufactured home to another manufactured home park located within a 25-mile radius of the park that is being closed, converted to another use, or ceasing operation. Reasonable relocation costs shall include: (1) The actual expenses incurred in moving the displaced resident's manufactured home and personal property, including the reasonable cost of dissembling, moving and reassembling any attached appurtenances, such as porches, decks, skirting and awnings, which were not acquired after notice of closure or conversion of the park, and utility "hook-up" charges. (2) The cost of insurance for the replacement value of the property being moved. (3) The cost of repairs or modifications that are required in order to take down, move, and set up the manufactured home. m) Ifa resident cannot relocate the manufactured home within a 25-mile radius of the park which is being closed or some other agreed upon distance, and the resident elects not to tender title to the manufactured home, the resident is entitled to relocation costs based upon an average of relocation costs awarded to other residents in the park. SELLED 508417.1 2 (c) A displaced resident compensated under this section shall retain title to the manufactured home and shall be responsible for its prompt removal from the manufactured home park. (D) The park owner shall make the payments under this section directly to the person performing the relocation services aRer performance thereof, or, upon submission of written evidence of payment of relocation costs by a displaced resident, shall reimburse the displaced resident for such costs. (E) The displaced resident must submit a contract or other verified cost estimate for relocating the manufactured home to the park owner as a condition to the park owner's liability to pay relocation expenses. SECTION 1010.12, PAYMENT OF ADDITIONAL COMPENSATION. Ifa resident cannot relocate the manufactured home within a 25-mile radius of the park that is being closed or some other agreed upon distance and tenders title to the manufactured home, the resident is entitled to additional compensation to be paid by the purchaser of the park in order to mitigate the adverse financial impact of the park closing. In such instance, the additional compensation shall be in an amount equal to the estimated market value of the manufactured home as determined by an independent appraiser experienced in mobile home appraisal approved by the City Administrator. The purchaser shall pay the cost of the appraisal. The purchaser shall pay such compensation into an escrow account, established by the park owner, for distribution upon transfer of title to the home. Such compensation shall be paid to the displaced residents no later than the earlier of thirty (30) days prior to the closing of the park or its conversion to another use. SECTION 1010.14. PENALTY. (A) Violation of any provision of this Section shall be a misdemeanor. (B) Any provisions of this Section may be enforced by injunction or other appropriate civil remedy. (c) The City shall not issue a building permit in conjunction with reuse of manufactured home park property unless the park owner has paid reasonable location costs and the purchaser of the park has provided additional compensation in accordance with the requirements of this Section. Approval of any application for rezoning, platting, conditional use permit, planned unit development or variance in conjunction with a park closing or conversion shall be conditional on compliance with the requirements of this Chapter. SECTION 1010,16, EFFECTIVE DATE. This ordinance shall be effective upon publication. SELLED 508417.1 3 Elk River City Council Meeting February' 18, 1997 7.3. Page 6 architect for the project, indicated that this could be changed if it were the Council's desire. COUNCILMEMBER DIETZ MOVED TO AUTHORIZE THE ADVERTISEMENT FOR BIDS FOR THE NORTHBOUND LIQUOR STORE PROJECT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Consider Closure Statement for Elk Park Terrace Mobile Home Court, Public .H. earinq Case No. GP 96-2 .Consider City of Elk River Request for Ordinance Closure of a Manufactured Home Park, Public Hearinq Case No. OA 97-4 The City Clerk entered the following letters into the record: Letter from Heather Bergmann dated February 12, 1997, to the Mayor & City Council Letter to Earl and Lorraine Hohlen from Heather Bergmann dated February 10, 1997. City Attorney Dave Sellergren reviewed the draft ordinances affecting mobile home park closures. Both draft ordinances (alternates A & B) address payment of relocation costs and payment of additional compensation. Additional compensation in Alternate A is determined by market value by the city assessor. Additional compensation in Alternate B is determined by market value by an independent appraiser. Alternate C can be added to either ordinance and impose a limit on the overall total costs of relocation and additional compensation. John MacGibbon, attorney for Earl and Lorraine Hohlen informed the Council that the park owner would prefer to use Alternate A which determines the market value by the city assessor. He indicated that the use of Alternate B could result in litigation. Mr. MacGibbon stated that he did not agree with Alternate C because of adding contiguous land to the equation. Mr. Macgibbon requested that the mobile home units be maintained in the same condition when they are assessed as when they are closed. Heather Bergmann, 203 Baldwin Avenue, requested that appraisals be made prior to the March 17th date. Heather Bergmann further questioned whether the city was considering the inclusion of additional relocation costs similar to the cities of Hopkins and Bloomington to cover items such as reconnecting utilities. City Attorney Dave Sellergren indicated that these additional relocation costs are covered in the proposed ordinance. Beth Frazier of APAC indicated that although the cities of Hopkins and Bloomington did not address the relocation costs within the ordinance, the residents were still paid between ,$900 and $1,950 in additional relocation costs. The City Council directed the city attorney to research these relocation costs. MAYOR DUITSMAN MOVED TO SUPPORT ALTERNATE B OF THE MANUFACTURED HOME PARK CLOSING ORDINANCE WITH THE UNDERSTANDING THAT THE CITY Elk River City Council Meeting February 18, 1997 7.5. 7.6. Page 7 AYI'ORNEY RESEARCH THE RELOCATION COSTS AND TO CALL FOR A PUBLIC HEARING ON THE PROPOSED ORDINANCE FOR MARCH 17. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councitmember Dietz opposed. Councilmember Dietz indicated that he preferred Alternate A. COUNCILMEMBER HOLMGREN MOVED TO CLOSE THE PUBLIC HEARING IN RELATION TO THE MOBILE HOME CLOSURE STATEMENT. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. .Request by Deana Larson for a Conditional Use Permit to Operate a Therapeutic. Massaqe Business, Waterfall Day Spa, Public Hearinq Case No. CU 96-29 Planning Assistant Scott Harlicker indicated that Deana Larson is requesting a conditional use permit to operate a therapeutic massage business at 705 Main Street. Scott Harlicker indicated that this is a temporary location as the building she was in experienced a fire. Scott Harlicker reviewed the staff report on this issue. Mayor Duitsman opened the public hearing. There being no one for or against the matter, Mayor Duitsman closed the public hearing. COUNCILMEMBER FARBER MOVED TO APPROVE A CONDITIONAL USE PERMIT FOR DEANA LARSON TO OPERATE A BUSINESS WHICH INCLUDES THERPEUTIC MASSAGE AT 705 MAIN STREET. COUNCILMEMBER THOMSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. It was the consensus of the Council that when Deana Larson moves her business to the new location, there be no charge for the conditional use permit. W.J.C. Development Corporation Request for Preliminary Plat Approval Oak Run, Public Hearinq P 96-15 Planning Assistant Scott Harlicker indicated that the W.J.C. Development Corporation is requesting a preliminary plat to subdivide approximately 9 acres into three lots. He explained that the project is located at the southeast corner of 211th Avenue and Ogden Street. Scott Harlicker reviewed the staff report on this issue. Mayor Duitsman opened the public hearing. Howard Hommes, resident adjacent to the subject property of Ogden Street indicated his concern regarding the proposed road. Mr. Holmes stated he is concerned that he may be assessed for the new road and indicated that he has spent approximately $8,000 on his private road during the last ten years. Mr. Hommes also indicated his concern regarding the removal of fully grown trees in order to construct the new road. He further indicated that he felt construction of the new road would cause drainage problems. City Engineer Terry Maurer responded to Mr. Hommes concerns regarding the trees and the drainage. He indicated that some trees would be removed, however the developer would try to save as many trees as possible. Terry Maurer also indicated that a culvert is being provided and stated that the culvert would improve the drainage situation from what it is at present. 2395 University Avenue West, Suite 202 St. Paul, MN 55114 Tel: (612) 644.5525 Fax: (612) 642-0060 February 28, 1997 Steve Ach Elk River City Planner 13065 Orono Parkway P.O. Box 490 Elk River, MN 55330 Dear Steve, At the last city council meeting, you were charged to research whether other cities who have had park closings have approved relocation money for personal belongings to residents who turned over their titles and took the value of their homes. I have looked through my information and found that the recent Hopkins park closing is one example of a case where residents did receive this money with the City Council's approval. Enclosed please find two documents fi.om the Hopkins mobile home park closing. First, the Purchase Agreement is the document that was signed by all of the homeowners in the park to sell their homes to the developer for the tax assessed value of their homes (although after signing this agreement, they still had the option to keep the title to their homes). Second, the Rental Waiver Agreement is a document that was signed by every resident of the park (renters included) which entitled them to the $1950 that they received in addition to the money they were awarded in the Purchase Agreement. Although the additional money to cover personal moving costs was not included in the Hopkins ordinance, the city was well aware of the relocation settlement that the residents did receive and did approve of these relocation monies. I would draw your attention to the line on both documents that states, "We understand that the City of Hopkins and the Hopkins Housing and Redevelopment Authority intend to rely on this Agreement and would not proceed to participate in the Purchaser's intended project ifI did not enter into this Agreement." Therefore, another city has approved money for moving personal belongings to residents who received the value of their homes in a previous park closing. I hope that this information might make the Elk River City Council more comfortable in similarly awarding $900 for personal moving costs to the residents of Elk Terrace Mobile Home Park who choose to turn over their titles and receive the appraised values for their homes. Thank you for your time and consideration. If you have any questions, please give me a call at 644-5525. Sincerely, Beth Fraser APAC O~~.~~er An Organization of Manufactured Home Residents WI[ q DEVL SVC 08/06/96 16 P~6 pURCHASB AGRBElV~NT Owncr(s)/$elicr Date Purchaser(s) Date Subject to thc t~rms and conditions set forth below, Owner/seller agrees to sell and Purchaser agrees to purchase the following described manufactured home/recreational vehicle for the price of: DOLLARS $ Location of Manufactured Home Mo~el Serial Number Lot Rent (tv~ only) 1.) pAYMENT 1: Purchaser has given to thc Owner/Seller a downpaymcnt in the amount of ~ receipt of which is hercby acknowledged by Owner/Seller. Purchaser agrees to usc best effort to secure a commitment for the necessary financing (the City bond financing) and to execute all documcnts this agreement shall become null and void, 'l'ne earnest moncy para by the Owner/Seller. Purchase~ and Owner/Seller agre~ to sign a Cancellation of Purchase Agreement. 2.) Payment 2; Purchaser shall give to the Owner/Seller an add_ itional downpayment in the Amount of ~ thirty (30) days prior to the Closing/Possession date. Ptrrchaser agrees to use best efforts to r, ocurc a commitment for the necessary financing (tho City bond financing) and to execute all documents required to consurnrrmte such financing. Il'Purchaser cannot secure a commitment for such financing, this agreement sh~il become null and void_ Thc came. st money paid by Purchaser herein shall ~ miainod by the Owner/Seller. Purchaser and Owner/Seller agree to sign a Cancellation of Pm-chase 3.) Payment ~: Purchaser shall pay the r~ronining balance of $ .... to Seller at the time of closing, providing that the commitment to finnnce has been s~eed by the htrchaser. 4.) lIENS AND TAXES: Owner/Seller agrees to deliver the manufactured homedrccreational vehicle to Purchar~r fr~c and clear of all liconse fees, ass~qments and other liens and encumbrances. Owner/Seller will pay this year' s taxes, licenses ~ fees. 612 448 4676 WI: ~N DEVL SVC 08/06/96 PO7 5.) NO WARRANTIES: The :nanufactured home/recreational vehicle is sold "as is" without any warranties or guaranties. Purchaser represents that he/she has examined the manufac'mred home/recreational vehicle and found it acceptable. 6.) ADDITIONAL PERSON PROPERTY: The following additional personal property is included wRh the manufactured homc./recreational vehicle: 0ist all appliances, furnishings, ~torage buitdingns, ex, riot improvements, etc. on an attachment to this Agreement). 7.) TRANSFER/TITLE FEES: Purchaser will pay all transfer and title fees involved in the 83 REMOVAL OF MANUFACTURED HOME/POSSESSIONS: The manufactured home and any personal property ren~ining after the date of closing/possession is the property of the Pttrchaser, if the Owner/Seller intends to removc the manufactured home or any of personal property described previously in this Ag~ment, thc Owner/Seller shall have made arrangements for the removal of the manufactured home and all personal property and shall have physically removed the manufactured home and all personal property on or before the closing/possession date listed below. 9.) CLOSII'qGfPOSSESSION: The parties contemplate that thc closing will take place on the later of September 30, 1996, or 30 days after receipt of Payment 2 (as outlined previous in this Agreement) and Owner/Seller agrees to deliver possession of the manufactured home/recreation vehicle to Purchaser on that date. 10_) DESTRUCTION OF UNIT: IN Tflx EVENT THIS PROPERTY IS DESTROYED OR SUBSTANTLII.!,Y DAMAGED BY FI. RE OR A_NY CAUSE BEFORE THZ CLOSING DATE, THIS AGREEM~h'I' b'HALL BECOMZ ~ AND VOID, AT ~ PURCHASER'S OPTION. (Owner~ll*r) (Pur~ha.~r) ',(l~t~) (Oxm~/f~ll~) (~) (I~) Hopkins Mil PA ~' 612 448 4676 WI~ JN DEVL SVC 08/06/96 1 RENTAL WAIVER AGREEMENT We the undersigned, tenant~ of the property located at Hopkins, l~nne$ota, the legal We certify that we are respons~le for thc rent payment at the above-referenced property and that we ar~ in good standing under our rental agreement. We certify tltat the information we hav~ provided to obtain the payment from the Oaks of Main Street, (Purchaser) is tnn and acc'ar/itc. We hereby agre~ to and request to divide any payments received from the Purchascr. We hereby certify tl~at wc arc the only persons eligible for paymenl at this property and there are no other previous or current occupants/tenants/owners of this propc~' that shall request paymenl from the purchaser or interfere with this Agreement. On .. we met with a representative of Wilson Dgv¢lopment Services (the "Relocation Consultant') to discuss with uS the relocation b~nefits available to us under lhe Ordinance. The Uniform Act was also explainexl to me. I understand that the relocation benefits available to displaced persons under thc Ordinance and the uniform Act are as lis'ted in Attachment 1 to fids Agreement, In consideration for the Purchaser's payment, als wc hereby waive any and all fights and claims to rights for relocation assi~, services, payments, benefits and notices that would ~v¢ b~n available to us, had a public avmcy acquired thc property. We understand that the City of Hopkins and the Hopkins Housing and Redevelopment Authority- intend to rely on this Agreement and would not proceed to participate ia the Purchaser's intended project ffI did not enter into this Agreement, TENANT PA~ Payment No. I $350.00 paymeni is hexdry ~l~,~wledsed by tenant. Paymcnt No, 2 $1600.00 is made upon notice to vacate thc property by thc tenant, but not hter than 9-30-96, and v.o sooner !h_9.n 9-15-96. (Paymcm No. 2 is contin8en! upon the Pine. hair securing proj~-t fimmcing by September 15, 19963 612 448 4676 WD~ ~N DEVL SVC ~8/06/96 POS Date Dat~ Dal~ Da~