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HomeMy WebLinkAboutHousing & Redevelopment Authority - HRA-Packet-10-28-2025 Supporting Documents - 10/28/2025 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING AGENDA Government Services Center, Dead Lake Room 515 West Fir Avenue, Fergus Falls, MN October 28, 2025 | 7:45am Commissioners may participate in the meeting by interactive technology. 1. Call Meeting to Order and Roll Call – Chairperson 2. Approval of Agenda 3. New Business: A. Resolution No. 323 Accepting Donation of a Residential Structure at 41421 Greenwood Trail B. Resolution No. 324 Authorizing Acquisition of Property C. Authorize Engagement with Moving Companies and Enter into Necessary Agreements to Facilitate the Move 4. Adjourn OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION October 28, 2025 BOARD MEETING DATE AGENDA ITEM #3A Amy Baldwin 10/23/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Donation Agreement and Resolution No. 323 Accepting the Donation of a Residential Structure Peter Baker owns a cabin that is located at 41421 Greenwood Trail, Battle Lake, which he plans to reconstruct due to a failing foundation. He contacted staff on October 9th regarding the possibility of donating the structure to be repurposed as affordable housing. Staff reviewed pictures and information submitted by Mr. Baker and conducted a site visit on October 17th. The cabin is 28’ x 24’ (672 square feet) and consists of 2 bedrooms and 1 bathroom. Upon the site visit, the structure was found to be in great condition and suitable for providing an affordable homeownership opportunity. Mr. Baker reported that the exterior walls are 2x4 with minimal insulation. He had previously obtained a bid for new siding and blowing in additional insulation at a cost of $12,000. Mr. Baker also reported to staff that the following improvements have been made: Water Heater Replacement 2020 Roof Replacement 2022 Front Door, Front Windows & Kitchen update 2020 Elec. Heating Updated 2021 Based on the preliminary cost estimate, staff has assessed that the project is anticipated to be financially viable. More detail on the cost estimates will be reviewed in the following action item during the location assessment. Upon approval of the resolution by the HRA, a HRA legal representative will prepare a Donation Agreement to be executed with Mr. Baker. This agreement would further outline the responsibilities of each party in relation to the donation. Due diligence has also revealed that property taxes due in 2025 are outstanding. Staff recommends the approval of Resolution No. 323, contingent on property taxes due in 2025 being paid in full prior to property transfer, securing a house moving company that meets budgetary and timeline requirements and the HRA securing ownership of an acceptable lot for the structure’s placement. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 10/23/2025 ATTACHMENT LIST: Resolution No. 323 FINANCIAL IMPLICATIONS: BUDGETED: YES NO FUNDING: OTC Housing Trust Fund COMMENTS RESOLUTION NO. 323 RESOLUTION ACCEPTING DONATION OF RESIDENTIAL STRUCTURE AT 41421 GREENWOOD TRAIL WHEREAS, Minnesota Statutes, Sections 469.001 through 469.047, as amended (the “Act”), authorizes the Otter Tail County Housing & Redevepoment Authority (the “HRA”) to accept gifts of real or personal property, and to undertake certain projects that further the purpose of providing a sufficient supply of adequate, safe, and sanitary dwellings in order to protect the health, safety, morals, and welfare of the citizens of this state. WHEREAS, Jon Peter Baker (the “Donor”), has offered to donate to the HRA the following property: a one story, 2 bedroom, 1 bathroom residential structure, approximately 670 square feet appraised at or estimated to be a value of $___________) (the “Donation”). WHEREAS, The Donor wishes that the HRA use the offered Donation to provide an affordable homeownership opportunity to an eligible homebuyer, and that a plaque be placed on the home in recognition of his mother, the original owner of the cabin (the “Conditions”). WHEREAS, The Otter Tail County HRA Board of Commissioners (the “Board”) is grateful to the Donor for offering the Donation, and believes that it is in the best interests of the HRA and Otter Tail County, Minnesota (the “County”), and would further the purposes of the Act, to accept the Donation, subject to the Conditions, and the terms and conditions of this resolution. WHEREAS, Requirements of Donation. Given the nature of the Donation, the HRA hereby preliminarily accepts the offer of the Donation, subject to the Conditions, as well as the following requirements (the “Requirements”): WHEREAS, The Donor shall provide to the HRA an independent appraisal of the Donation, establishing the fair market value thereof. WHEREAS, The HRA and Donor shall agree on a reputable company capable of relocating the Donation (the “Moving Company”) to a destination chosen by the HRA in its sole discretion, and the cost to provide such service (the “Cost”). WHEREAS, The HRA and the Donor shall enter into an agreement, clearly establishing how and when the Donation will be relocated, the roles and responsibilities of each party regarding the foregoing, and any other items the Executive Director of the HRA and the HRA’s legal counsel determine are appropriate (the “Agreement”). WHEREAS, The Donation must be documented by, potentially among other things, a bill of sale (the “Bill of Sale”), clearly establishing the transfer of title to the Donation from the Donor to the HRA. WHEREAS, Any other requirements under the Act or other applicable state or federal law, or recommended by the Executive Director of the HRA or the HRA’s legal counsel. The foregoing Requirements must be met prior to the full acceptance of the Donation. The Donation will not be effective until the date of acceptance and transfer of title, which shall be evidenced by the executed Bill of Sale. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. The Executive Director and other HRA staff are hereby authorized and directed, with the advice and assistance of the HRA’s legal counsel, to perform any and all actions towards meeting the above Requirements, including, but not limited to, procuring a Moving Company, preparing the Agreement and Bill of Sale, and working with the Donor to implement the intent of the Board as stated in this resolution. 2. The Executive Director and other HRA staff are further authorized and directed, with the advice and assistance of the HRA’s legal counsel, to (i) designate and, if necessary, acquire, the land to which the Donation will be relocated to, (ii) make plans for any construction, rehabilitation, renovation, or other preparations necessary prior to reselling the Donation, and (iii) perform any and all actions, including those required by the Act or other applicable state or federal law, in anticipation of and preparation for using the Donation as intended by the Conditions. 3. The Executive Director and other HRA staff are further authorized and directed to use funds within the Otter Tail County Housing Trust Fund to pay any and all costs of the foregoing, subject to the eligibility and other requirements as contained in the County’s Ordinance Creating the Otter Tail County Housing Trust Fund and Minnesota Statutes, Section 462C.16. Upon the motion of ________________________, seconded by _________________________, and passed on a ___________________ vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 28th day of October 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION October 28, 2025 BOARD MEETING DATE AGENDA ITEM #3B Amy Baldwin 10/23/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Resolution No. 324 Authorizing Acquisition of Property The cities of Battle Lake and Ottertail were contacted to inquire about possible sites that could be utilized for this project given their proximity to the property’s location. There were no appropriate sites identified in either community. The pre 2016 tax forfeit property list was provided by the County Recorder and reviewed for location opportunities. A vacant lot located at 217 State Hwy 106 in Deer Creek was identified. The lot is 86 feet wide and 150 feet deep and is fairly level. City staff have been contacted about this potential project to review City development requirements and gain additional knowledge regarding utilities, etc. Staff was specifically asked to consider a privately owned lot located at 231 Park Circle in Ottertail as the cabin owner had previously identified as an option. However, the City of Ottertail has a minimum living space of 750 sq ft and the lot is listed for $60,000. A local realtor was present when staff conducted the site visit and expressed that the current owner may entertain a reduced offer of $50,000. There is a two-stall garage on this parcel, but it is not on a permanent foundation which would need to be corrected if this site was chosen. The estimated sale price listed on the cost comparison was provided by the local realtor with the assumption that the addition would be a third bedroom. An estimated cost comparison between the two locations identified above has been completed and is attached for your review. Staff recommends the approval of Resolution No. 324. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 10/23/2025 ATTACHMENT LIST: Estimated Cost Comparison Resolution No. 324 FINANCIAL IMPLICATIONS: None BUDGETED: YES NO FUNDING: OTC Housing Trust Fund COMMENTS OTTERTAIL Moving $15,000.00 Up to 15 miles, per original bid to cabin owner. Power Lines for Moving ? Unknown, this cost is established by the power company and is not included in cabin moving cost. Siding, Insulation, Gutters & Downspouts $13,500.00 Foundation $23,000.00 Est. crawlspace for original cabin, additional foundation needed for addition is included in addition price. Addition $20,670.00 $265/sq foot x 78 finished sq ft to get to 750 sq foot minimum requirement by City of Ottertail. Septic $7,500.00 Estimate, 1500 gallon plastic holding tank. Survey $2,000.00 Utility Connection $1,000.00 Realtor Fees $9,000.00 $150,000 sale price, 6% commission. Land Cost $60,000.00 Total $151,670.00 This cost does not include a contingency, nor does it include moving the garage to install a permanent foundation. DEER CREEK City Permits $50.00 Moving $20,000.00 Estimated using $1,000/mile in original bid to cabin owner, no written bids yet (10.22.2025). Power Lines $15,000.00 Estimated cost could be between $10k& $15k, but is unknown today. Siding, Insulation, Gutters & Down Spouts $15,000.00 Foundation $23,000.00 Estimate for shallow crawlspace. Garage $30,000.00 24 x 24,detached, uninsulated with loft storage. Land Cost $5,250.00 Maximum, would likely get a reduced cost. Utility Connection & Contingency $12,000.00 Realtor Fees $7,800.00 $130,000 sale price, 6% commission. Survey $2,000.00 Total $130,050.00 Estimated Cost Comparison &, OTTE:R TAIL ~, COUNTY-MINNESOTA 218-998-8730 @ HOUSING AND REDEVIELOPMENT .AU'THO·RITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Goivern ment Services Center 500 West Fi1r Avenue Ferg us Falls. MN 565 37 @ ottertailcounty.gov RESOLUTION NO. 324 RESOLUTION AUTHORIZING ACQUISITION OF A TAX FORFEIT PARCEL IN DEER CREEK, MINNESOTA WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) is the administrator the Otter Tail County Housing Trust Fund (the “Fund”); and WHEREAS, the Authority is empowered to conduct property acquisition and redevelopment for the purposes of creating affordable housing and to improve the condition of the county’s housing stock; and WHEREAS, State Statutes permit the Authority to acquire and redevelop properties that are in tax forfeit status; and WHEREAS, a suitable parcel option is located in Deer Creek at 217 State Highway 106 (the “Property”); and WHEREAS, adequate resources are available in the Fund to advance the project; and WHEREAS, the Authority has determined that the Authority staff carry out the procedures to bid and/or request the ownership of the Property through the statutory tax forfeiture process. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Authority offers to purchase the Property from the County for $_________ plus applicable fees. 2. That the Executive Director is hereby authorized to complete and file relevant documents to the County Auditor in relation to the Property for the tax forfeit process. Upon the motion of _______________________, seconded by ________________________, and passed on a ___________________ vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 28th day of October 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION October 28, 2025 BOARD MEETING DATE AGENDA ITEM #3C Amy Baldwin 10/24/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Authorize Engagement of House Moving Company and Enter into Necessary Agreements to Facilitate Move Staff has been reaching out to the two area house moving companies that the original cabin owner had received verbal bids from to obtain written proposals. The cabin is currently located on a common interest parcel. The cabin owner has an access agreement in place with the neighboring property owner in order to move materials and the structure. An agreement between the HRA and the neighboring owner will be needed to move the structure from its current location. As well, approval for the move will be needed from the homeowner’s association. Staff recommends obtaining bids from house moving companies and entering into the necessary agreements to move the structure. Consideration of a house moving bid that meets timeline and budgetary requirements, if received, would be anticipated on the November 5 regular HRA Board meeting. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 10/24/2025 ATTACHMENT LIST: FINANCIAL IMPLICATIONS: None BUDGETED: YES X NO FUNDING: Otter Tail County Housing Trust Fund COMMENTS