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6.6. SR 11-17-1997,_.,y of River TO: FROM: DATE: Item # 6.6. MEMORANDUM Mayor and City Council Steve Ach, City Planner.~-:'~,~ November 17, 1997 Issue SUBJECT: Consider Ordinance Amendment to the Manufactured Home Closing Section of the Ordinance, Public Hearing Case No. OA 97-14 Consider amending the City's manufactured home park closing ordinance. Attachments · Ordinance No. 97- · Minutes from the City Council meeting dated March 17, 1997 Overview On March 17, 1997, the City Council adopted an ordinance relating to the closing of manufactured home parks. The ordinance itself received much discussion by the Council as well as input from the residents and park owner. One section received a little more attention relating to the time in which residents should be paid prior to the actual closing of the park or its conversion to another use. Originally, the ordinance was prepared with a 30 day notice. This was modified at the request of the Council to 60 days. Since the adoption of that ordinance the Council has still expressed some concern with this time period and have requested that the ordinance be amended to reflect a 90 day time period. Therefore, the attached ordinance adjusts the current time period of 60 days to allow a time period of 90 days in which the residents must be compensated prior to closing of the park. Planning Commission Meeting The Planning Commission unanimously recommended approval of the ordinance amendment at their October 28, 1997 meeting. Recommendation It is recommended the City Council approve the ordinance amendment as drafted. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 ORDINANCE 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 CASE NO. OA 97-14 The City Council of the City of Elk River does hereby ordain as follows: Section 1. 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 - PAYMNET OF ADDITIONAL COMPENSATION If a 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 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, estabhshed 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 ninety (90) days prior to the closing of the park or its conversion to another use. Section 2. That 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 , 1997. day of Henry A. Duitsman Mayor Sandra A. Thackeray City Clerk kkelkriver\sys\shrdoc\documentkordinanckoa97-14.doc City Council Minutes March 17, 1997 Page 5 6.1b. [~ 6.2a. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Therapeutic Massaqe Establishment License for Salina's Salon COUNCIl. MEMBER FARBER MOVED TO APPROVE A THERAPEUTIC MASSAGE ESTABLISHMENT LICENSE FOR CYNTHIA SANBORN AT SALINA'S SALON, 19122 FREEPORT STREET. COUNClLMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. City of Elk River Request for Ordinance Amendment Reqardinq Closure of Manufactured Home Parks, Public Hearinq Case No. OA 97-4 City Attorney Dave Sellergren reviewed the proposed ordinance for manufactured home park closings. He indicated that the purpose of the ordinance is fo require park owners to pay displaced residents reasonable relocation costs and purchasers of manufactured home par~ to pay additional compensation. Dave Sellergren explained that mobile home owners would be entitled to actual relocation costs if homes are relocated within 25 miles~ if more than 25 miles then they would be entitled to the average relocation costs as compared to other owners. If mobile homes cannot be relocated then the owner is entitled to payment equaled to estimated market value by an independent appraiser. If payment is made, the mobile home owner must tender title. Mayor Duitsman opened the public hearing. Heczfher Berqman - 203 Baldwin Avenue addressed the issue of additional moving costs in the amount of $900. She indicated that many of the home owners are not certain that the appraised value will be the same as the amount owned on the mortgage. Councilmember Farber indicated his concern for those home owners who will fall short of paying off their mortgage. Beth Fraser of APAC indicated that the appraised value will not cover all of the mortgages and indicated she felt the Council should offer additional moving expenses. Councilmember Thompson indicated that his main concern is meeting the time frame requirement of 30 days. He indicated that the residents would not have enough time to have their homes appraised and receive compensation 30 days prior to the closing of the park. There being no further comments, Mayor Duitsman closed the public hearing. COUNClLMEMBER DIETZ MOVED TO ADOPT ORDINANCE 97-3 AN ORDINANCE FOR MANUFACTURED HOME PARKS CHANGING SECTION 1010.12 FROM 30 DAYS TO 60 DAYS. COUNClLMEMBER HOLMGREN SECONDED THE MOTION. City Council Minutes March 17, 1997 Page 6 6.2b 6.3. Councilmember Farber stated that there will still be some people who will not be compensated enough to pay off the mortgage. THE MOTION CARRIED 4-1. COUNClLMEMBER FARBER OPPOSED. Appraiser for Elk Terrace Mobile Home Court City Administrator Pat Klaers informed the Council that he has researched the market for independent appraisers who are qualified to appraise mobile homes. The City Administrator stated that he has selected Credit Management Resources Corporation fo do the appraisals of the mobile homes in the Elk Terrace Mobile Home Court. The City Council recessed at 7:45 p.m. and reconvened at 7:52 p.m. Preliminary Plot Request by Good Value Homes (Cherrvwood Hills), Public Hearinq Case No. P 96-3 City Planner Steve Ach indicated that Good Value Homes has requested a preliminary plat to subdivide approximately 38 acres info 79 single family residential lots. The property is located in the northwest corner of Proctor Road and 193,~ Avenue. Steve Ach presented the staff report reviewing the following issues of concern that were revealed by the Planning Commission and Staff. · The future of 193rd Avenue · Consideration of the physical characteristics · Grading and storm drainage · Consistency with adjacent development · Consistency with comprehensive plan Planning Commission Representative Judy Thompson indicated Planning Commission concerns of tree preservation, status of 193rd Avenue, improvements to internal traffic, lot depths being too shallow, drainage issues not being addressed and the elimination of the proposed park. She indicated that the Planning Commission voted to deny the plat. Mayor Duifsman opened the public hearing. Ran Bastier, developer of Lafc~yeffe Wood~ requested the Council to ensure the developer wor~ toward the same efforts that were worked on with Lafayette Woods. He requested the Council to consider preservation of trees, berming and planting, topography and the relationship of the homes to Proctor Avenue. Mike Miller - 13822 200th Avenue requested the Council to consider the natural environment of the area. There being no further comments, Mayor Duitsman closed the public hearing.