Loading...
5.6. SR 04-21-1997'ity of iver FROM: DATE: SUBJECT: MEMORANDUM Mayor and City Council Steve Ach, City Planner April 21, 1997 Consider Ordinance No. 97- ., Amending Section 1010.12 (Manufactured Home Park Closings) of the City Code of Ordinances, Public Hearing Case No. OA 97-4 ITEM 5.6. Issue Consider Ordinance No. 97-__, amending the recently adopted ordinance relating to the closure of manufactured home parks. Attachments · Ordinance No. 97- (amendment) · Previously adopted ordinance No. 97-3 Overview At the direction of the City Council, staff has worked with the City Attorney's office to revise Section 1010.12 - Payment of Additional Compensation. These specific changes include: clarifying that residents of the manufactured home park have the choice whether to relocate their mobile home or choose to tender title upon compensation The ordinance amendment will also provide that the mobile home purchaser shall reimburse the city for any advances the city makes for appraisal costs. Recommendation It is recommended the City Council approve Ordinance No. 97- the recently adopted Ordinance No. 97-3. __, amending 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 ORDINANCE NO. 97- CITY OF ELK RIVER AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING SECTION 1010.12 (MANUFACTURED HOME PARK CLOSINGS) OF THE CITY CODE OF ORDINANCES The City Council of the City of Elk River does hereby ordain as follows: Section 1. That Section 1010.12 of the City of Elk River Code of Ordinances shall be amended by deleting existing Section 1010.12 and substituting new Section 1010.12 as follows: 1010.12 - PAYMENT OF ADDITIONAl_, COMPENSATION Ifa resident either cannot or chooses not to 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 or shall reimburse the City for any advances it makes to such appraiser for such cost. 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 sixty (60) days prior to the closing of the park or its conversion to another use. Section 2. This ordinance shall take effect upon publication as provided by law. Passed and adopted by the City Council of the City of Elk River this 21st day of April, 1997. Henry A. Duitsman, Mayor Sandra A. Thackeray, City Clerk SELLED 514146.1 CITY OF ELK RIVER, MINNESOTA ORDINANCE NO. 97-3 MANUFACTURED HOME PARK CLOSINGS SECTION 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 requiring 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 twenty-five (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 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 eight {8) feet or more in width or forty (40) feet or more in length, or, when erected on site, is three hundred twenty (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 termina5ion 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 hearing. 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 hearing. 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. 1. 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 twenty-five (25) mile radius of the park that is being closed, converted to another use, or ceasing operation. Reasonable relocation costs shall include: A. The actual expenses incurred in moving the displaced resident's manufactured home and personal property, including the reasonable cost of disassembling, 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. B. The cost of insurance for the replacement value of the property being moved. C. The cost of repairs or modifications that are required in order to take down, move and set up the manufactured home. 2. If a resident cannot relocate the manufactured home within a twenty-five (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. 3. 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. 4. The park owner shall make the payments under this section directly to the person performing the relocation services after 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. 5. 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. If a resident cannot relocate the manufactured home within a twenty-five (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 sixty (60) days prior to the closing of the park or its conversion to another use. SECTION 1010.14 PENALTY. 1. Violation of any provision of this Section shall be a misdemeanor. 2. Any provisions of this Section may be enforced by injunction or other appropriate civil remedy. 3. 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. 4 Passed and adopted by the City Council of the City of Elk River this 17th day of March, 1997. / Ma~6r Sandra A. Thackeray City Clerk [ty of iver MEMORANDUM Item 5.6. TO: FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, City Administrator April 21, 1997 Update on Appraisals by Credit Resource Management In addition to the material covered in Steve Ach's memo, please note that Dwight Poss of Credit Management Resource Corporation is scheduled to be in attendance at this Council meeting to update the City Council on the status of the appraisals and the work that he completed. I think that Dwight will want a few minutes with the City Council to explain the work that is involved in completing the appraisals and to answer any questions that the Council may have. \\elkriverXsys\shrdocXcouncilXmnfthome.doc 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 Credit Management Resource Corporation 7517 Washington Avenue South Edina, MN' 55439 (612) 828-9406 Fax (612) 941-9142 March 11, 1997 Mr. Patrick D. Klaers, City Administrator City of Elk River 13065 Orono Parkway Elk River, MN 55330 RE: Manufactured Housing Appraisals Dear Mr. Klaers: In response to your letter dated February 27, 1997, we respectfully submit our proposal, experience and qualifications for your review and consideration in anticipation of being selected as the appraiser for the manufactured homes in Elk Terrace Mobile Home Park. With over twenty years experience in finance and manufactured housing activities, and Board Certified in Manufactured Housing Valuation by the Real Estate Law Institute and the National Society of Appraiser Specialists, for which copies of my certifications are enclosed, we can provide a accurate and professional service to the City of Elk River. Please note that my Certificate in Manufactured Housing Valuation is a specific requirement in many cases for manufactured housing appraisals for the U.S. Department of Housing/Federal Housing Administration. My client base for manufactured housing appraisals include Green Tree Acceptance Corporation, Pacific Home Finance Corporation, Northgate Homes, Fridley Terrace Mobile Home Park, Landfall Terrace/Washington County HRA, and Homeowners Mortgage Corporation. Enclosed you will find a listing of names and telephone numbers of individuals you may contact concerning my qualifications and experience for reference purposes. In reference to possible conflicts with the interested parties, please be advise I have had no contact, or any personal or business relationship with Earl and Lorraine Hohlen or Elk Terrace Mobile Home Park. Should you have any questions, need further information, or wish to discuss this matter further, please no not hesitate to contact me. Dwight A. Poss President Real Estate Law Institute Inc. hereby certifies that Dwight A. Poss. has successfully completed the requirements and by the action of the Officers and Directors has been declared Board Certified In Manufactured Housing Valuation Certification Number: 2455 Date Joined: May 17, 1994 Executive OIficer This certificate remains the property of the Institute and must be returned on termination of certificat ion.