ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Housing Policy & Development Committee | Aug 8, 2018 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Land Sale | Passage of Resolution approving the land sale of the property at 1718 Fillmore St NE (Disposition Parcel No. MH-88), to PRG, Inc. for $80,000, subject to conditions. |
Previous Actions
On December 11, 2015, the City Council approved the Vacant Housing Recycling Program that defines the program guidelines for disposition of vacant buildings and lots for housing development (2015-01481).
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 1 | Northeast Park | 1718 Fillmore St NE, Minneapolis |
Background Analysis
PARCEL ADDRESS SALE PRICE
MH-88 1718 Fillmore St NE $80,000
PURCHASER
PRG, Inc.
2017 E 38th St
Minneapolis, MN 55407
PROPOSED DEVELOPMENT
The property was constructed in 1900 and is a 1,575 square foot, two-bedroom, two-bathroom two-unit home that will be rehabilitated to meet the program's rehabilitation standards.
The lot size is 35' x 76' = approximately 2,660 total square feet.
Purchaser proposes to invest $179,000 to rehabilitate 1718 Fillmore St NE as a three-bedroom, two-bathroom single family home to be sold exclusively to owner-occupant households at or below 80% area median income.
LAND DISPOSITION POLICY
The sale of this property is in compliance with the City’s Disposition Policy. The sales price of this property reflects the full re-use value.
FINANCING
Purchaser: Financing provided through the City of Minneapolis Home Ownership Works (HOW) Program and Neighborhood Stabilization Program (NSP).
COMMENTS:
On December 30, 2016, the City acquired this two-family home from Hennepin County as tax-forfeited land for $75,000.
The City advertised the property to all City Council-approved HOW developers to facilitate development of a housing unit affordable at 80% of area median income.
Staff recommends PRG Inc. as the Purchaser. PRG Inc. was the only offer received for the property. This offer was evaluated based on program criteria stated in the Minneapolis Homes manual, including: financial capacity, experience, responsibility, scope of work, subsidy request (if any), and occupancy intentions. To evaluate responsibility, we consulted with the Department of Regulatory Services staff to verify the status of vacant buildings, rental properties, or other properties owned by the applicant in the City of Minneapolis. The City is selling this property in its as-is condition. CPED construction management staff has reviewed the scope of work and construction estimate and confirmed it is sufficient to meet the program’s rehabilitation standards.
On April 17, 2018, notification was provided to the Northeast Park Neighborhood Association of the staff intent to sell the property for redevelopment.
FISCAL NOTE
- No fiscal impact anticipated