HomeMy WebLinkAboutResolution No. 074-06 w x w rM ti a i sx a
RESOLUTION
WHEREAS, on August 9, 2005, The Gardens Manufactured Home Community LLC,
submitted a Closure/Conversion Statement to the Rochester-Olmsted Planning Department;
and,
WHEREAS, the closure or conversion of a manufactured home park is regulated by
Minnesota Statutes Chapter 327C and Rochester Code of Ordinances Chapter 120; and,
WHEREAS, on September 23, 2005, the Rochester-Olmsted Planning Department sent
notice to the owner of each manufactured home located in The Gardens Manufactured Home
Community stating the hearing date, time, place and purpose. A public hearing was scheduled
for October 3, 2005, but, as requested by the applicant, was continued to October 17; 2005, and
then, as requested by the applicant, was continued to February 6, 2006. On January 27, 2006,
a new notice of the February 6, 2006, public hearing was sent to the owners of each
manufactured home in The Gardens; and,
WHEREAS, R.C.O. §120.05 states that a public hearing must be held before the City
Council for the purpose of reviewing the closure statement and evaluating the impact, if any, the
park closing may have on displaced residents and the park owner. The ordinance indicates that,
before any change in use or cessation of operation and as a condition of such change in use or
cessation of operation, the City Council may require the park owner to compensate the
displaced residents for their reasonable relocation costs; and,
WHEREAS, the "Closure/Conversion Statement" provided by the park owners included a
statement that it is anticipated that there will be no relocation costs payable to any Home Owner
since no home owner will be required to vacate his/her lot due to the conversion." The park
owners propose to offer lots for sale, but will continue to rent lots to the existing residents who do
not purchase their lot. The park owners recently provided a comparison of rent versus
ownership for the lots in The Gardens and associated costs to residents. The finance summary
suggested that there would be no cost increase to existing residents with the conversion of the
park to those who continue to rent lots, outside of lot rents increased annually by the Consumer
Price Index; and,
WHEREAS, the park owners have made a commitment that they will not rent any of the
vacant lots for the purpose of placement of a manufactured home. The vacant lots will only be
available for sale. Furthermore, the park owners have said that they will continue to rent lots to
existing residents only. Through attrition, the park would transition to a single family subdivision;
and,
WHEREAS, according to the Planning Department staff report, the issues before the
• Council are whether the information submitted by the park owners is sufficient to make a
decision on the potential financial impacts related to the park closure/conversion, whether the
OCouncil approves the proposed change in use of this property, whether there are potential
financial impacts to "displaced residents" and whether compensation will be required from the
park owners to the "displaced residents;" and,
WHEREAS, the Planning Department staff report recommended the finding that the
existing residents will not be forced to leave The Gardens as a result of this park
closure/conversion. The park owners have stated that they will continue to lease lots to
residents who wish to continue to lease and will offer lots for sale to those who wish to purchase
their lots. As such, the staff recommended the Council not require compensation to "displaced
residents;" and,
WHEREAS, the Council considered this matter at its February 6, 2006, meeting and,
using a public hearing process, allowed all interested parties to present information to the
Council for its consideration; and,
WHEREAS, at the February 6th public hearing, a representative of the park owners
testified that, since none of the existing park residents were required to move out of the park, no
relocation benefits should be required. The representative stated that the park owners were
agreeable to a condition of approval that indicated any change in that policy would require the
filing of a new park closure/conversion statement and a public hearing pursuant to Minn. Stat.
ch. 327C and R.C.O. ch. 120, and the possibility that the Council would then require the
payment of relocation benefits; and,
. WHEREAS, at the February 6th public hearing, a legal representative of several residents
of The Gardens appeared and gave testimony on the matter. The legal representative stated
that the Council should order relocation benefits to any resident who chooses to leave as a result
of the closure/conversion without regard to the policy that none of the current residents are being
required to leave the park; and,
WHEREAS, the Council considered all of the testimony provided at the hearing including
the written documentation that is attached hereto as Exhibit A and incorporated herein by
reference.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Rochester, Minnesota, that it makes the following determinations:
1. The information submitted by owners of The Gardens is sufficient to make a
decision on potential financial impacts related to the closure/conversion of The
Gardens;
2. The Council does approve the change in use for the park subject to the conditions
noted herein; and,
3. In light of the policy of the owners of The Gardens providing the current residents
of The Gardens the ability to continue leasing their lots despite the
• closure/conversion of this park, any financial impact upon the displaced residents
is not sufficient to warrant the required payment of financial compensation;
4. The representative of The Gardens indicated to the Council that the current
residents of The Gardens will be allowed to continue leasing their lots rather than
purchasing their lots. The City's approval of the closure/conversion statement and
the change in use without any requirement of relocation benefits is made, in part,
in reliance upon this representation. If the park owners wish to amend this policy
so that any of the current residents of The Gardens will not be allowed to lease
their lots, the park owners must submit its policy change to the Common Council
for approval, and the possible requirement of relocation benefits as part of that
approval, pursuant to the process provided by R.C.O. ch. 120, Minn. Stat. ch.
327C, or their successor provisions; and
5. The Gardens may not be closed or converted prior to May 9, 2006.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS OF 2006.
PRESIDENT OF SAID COMMON COUNCIL
•ATTEST:
CLERK
APPROVED THIS DAY OF , 2006.
'
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
Zone05W1 HPOose.Gardens
•
FE 06/2006i140N 07:22 P1:4 BIPBi LAV-1 Fr.a No. 507 282 7736 P. 002
• BIRD ACOBSEN & STEVENS '
� � 305.JRONv✓OOD SQUARE•300'ftiIRD A'VEI�'UE S.E.
Attorneys at Law RocxEsrr_R,M.UINESOTn 5590
(507)282-1503
FAX(507)282-7756
CHARLES A.BIRD"f www.birdjacobseo.com
VAN P.JACOBSEN
JERYTAY R.STEVENS
ANDREA B:NMSF'v"
February 6, 2006
via facsimile only: 285-8256
Rochester City Council
c/o Judy Scherr, City Clerk
Rochester City Clerk's Office '
2010 Street SE, Room 135
Rochester, MN 55904
RE: The Gardens'Manufactured Home Community
Dear City Council:
Our office represents numerous residents who will undoubtedly be displaced as a
result of the proposed closing/conversion of The Gardens Manufactured Home
• Community. These individuals include: Muriel A. Grant, Jane C. Rabine, Debra J.
McKnight, Curtis Ruhland, Julie Schultz, .Shawn M. Stewart, Bernard E. Williams,
Shirley Tikhomiroff,.Christopher M. Vail, Angi M. Vail, Gabriel J..Finseth, and Crystal
M. Finseth.'
The Rochester City Ordinance section 120.02, subd. 3, defines "displaced resident"
as follows:
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 the park owner submits a closure statement
to the City's Planning Commission.
It cannot be disputed that each of these individuals is therefore a displaced resident,
and-entitled-to protections of the ordinance. There is no requirement in the ordinance
that the displaced resident prove he/she is being forced to move. The displaced
resident can simply choose to move and be compensated.
The Planning Department staff indicates that the finance summary submitted with the
application for the closure suggests that there would be no increased cost to existing
residents with the conversion. The staff analysis is simplistic and not accurate. First,
owners of a manufactured home have legitimate reasons not to want to live in a
' Attached are letters of objection from the following individuals: Muriel A. Grant, Julie Schultz, and
• Shirley Tikhomiroff. These letters should be considered In conjunction with this letter on behaff of our
clients.
'ALSO ADMITTED TO PRACTICE IN WISCONSIN
10ERTIFIED TRIAL SPECIALIST BY M114NESOTA STATE BAR ASSOCIATIOI'VCERTIFIED BY NA BOARD OF TRIAL ADVOCACY
FEB/061200'6AIION 07:?? PM BIRD LAII,l FAX No. 507 ?$? 7736 F. 1103
• Page 2 February 6,2006
• common interest community. Second, the promises of the owners that they will
continue to lease is vague, indefinite and, frankly, legally unenforceable. The staff
analysis is based entirely upon the park owners' assertion that they will continue to
lease lots to residents for a period of time that is "unknown." There are several
problems with this.
The following are the most obvious reasons why our clients do, and others may,
chose not to live in a common interest community:
With the closing/conversion of The Gardens Manufactured Home
Community, the current residents will lose protections and benefits
they have under state and local laws and regulations pertaining to
manufactured home communities. They will also lose the
protections and benefits of the rules and regulations of The
Gardens which were in effect when the residents moved in, as well
as those protections as contained in the lease agreements.
Residents of the common interest community will have no
obligation to continue the current rules and regulations.
Nothing in the scheme of The Gardens Manufactured. Home
Community will guarantee the residents each previously promised
amenity. A common interest community association may vote to
discontinue an amenity at any time.
The scheme of The Gardens Manufactured Home Community will
not prevent subleases and absent owners. The current residents
that do not purchase their lots are guaranteed not to have a voice
in any association decisions as they will be at the merdy of their
landlords to vote on issues that may have direct harmful effects on
—.-------__---- the residents.
• The Gardens Manufactured Home Community has indicated that
offering property for ownership rather than renting will permit
residents to obtain financing for their homes. This,. too, is a
simplistic view. The financing option submitted to the residents
with a lot purchase agreement requires the owner to pay a three
percent down-payment of both the home and the lot. Many of the
current homeowners in The Gardens are of limited means, some
even with poor credit scores, are unable to produce such a down-
payment, simply precluding them from purchasing the land.
There is much concern regarding an increase in lot rent or an
unreasonable association fee. The Gardens Manufactured Home
Community has made no guarantees that lot rent will not increase
or that unreasonable association-fees will not be assessed at the
whim of the ownership majority.
FEB 0V2/00'6iM0N 07:22 PM BIPD LAIN FAX No, 507 282 7736 F. 004
• Page 3 February 6, 2006
• Questions remain with regard to maintenance and ownership of
such systems such as roadways and sewer lines. With the current
lack of upkeep of common areas in The Gardens, the .residents
remain skeptical about whether such systems will in fact be
maintained.
As such, in accordance with the Rochester City Ordinance, section 120.06, the City
should allocate relocation costs to each resident of The Gardens Manufactured
Home Community who chooses to leave as a result of the closure/conversion. By
requiring compensation in the fomn of reasonable relocation fees, the City will permit
each displaced resident to relocate to a new community and leave behind this
scheme which was never contemplated with the purchase of the home and the
signing of the lease. Further, the City should guarantee that each displaced resident
is provided adequate compensation, as this closure/conversion eliminates the very
reason each of these resident chose to reside at The Gardens. If the homes cannot
be moved due to poor structural condition, the City should require a payment in lieu
of the relocation costs or the amount equal to the estimated market value of the
home,whichever is greater.
On behalf of the above-named individuals, I thank you for your assistance and
understanding with in this matter.
Very truly yours,
Andrea B. Niesen
and rea@birdjacobsen.com
ABN/
•
FED/'06/20H A ON 07:22 PI4 BIPD LAW FAX No, 507 202 '1736 F, 005
This is to address the proposal that"The Gardens"be allowed to convert to owned lots.
I have been a resident of"The Gardens" since February of 2001. It has been a
complete disappointment. I was convinced that safety and quality of life in the
community would of utmost importance to the owners, however,this has proved to be
entirely false. The safety features have been completely abandoned and the living
conditions have been intolerable.
I am convinced that it is a ploy oni the part of.the owners of"The Gardens" and
"Windmill Homes"to offer the lots for sale and thus convert the park. There are a
number of homeowners who have a pending arbitration and class action suit, and I am in
that group. By converting the property, the owners will manage to avoid their
responsibility to satisfy these actions,thereby leaving a number of homeowners with
considerable financial burden.
I implore this board to suspend any judgment on the property conversion until sucb.
time that the homewxmers who would be so financially damaged have the necessary time
to settle the pending legal actions.
Thank you.
Sincerely,
. Muriel A Grant
FEBi O612O06iMON 07:22 P14 BIPD LAW FAX No. 507 282 7736 F. 006
I am not sure whether or not I will be able to make it to the meeting tonight, so please
accept this letter as my formal objection to the conversion of The Gardens Manufactured
Horne Community from a manufactured home park to a common interest community.
I own the home located at 4216 Daffodil Avenue S.E,Rochester,MN 55904.
I do not have the means to purchase the lot where my home is located. I•cwould not have
the desire to purchase the lot evea if I had the means to do so.
I have n'amerous concerns regarding the conversion which have not yet been addressed,
including: lack of maintenance of common areas,inability to sell my home,possibility
that my home could be next to more commercial development, etc.
Please accept this document as my formal objection to the conversion proposed by The
Gardens Manufactured Home Community.
Mot chultz
4216 Daffodil Avenue S.E.
Rochester,MN 55901
FEBi 06/2015VY10N 07:22 PIA BIPD LAW FA.X No, 507 282 7736 F, 007.
OCT 03,2005 12:06 S. Ti.khomi.roff 5075360991 Page 2
• Shirley Lou Tikhomiroff
4228 baffodil Avenue, S.E.
Rochester, MN 55904
October 3, 2005
Common Council of the City of Rochester
Council/Board Chambers
Government Center
151 Fourth Street S.E.
Rochester, MN 55904
Re: Common Council Meeting Monday, October 03, 2005
Ladies and Gentlemen:
If The Gardens plan to cease operation of this park is granted through the re-zoning of the park to
allow(or force)current resident home owners to become owners of the lots on which their homes are
located it will be a disastrous outcome for me and for the two disabled persons who live with me. An
alternative of negotiating a new lease with a Community Managerwill be equally disastrous. This
person also makes promises he has no intention of keeping and I have been seriously
inconvenienced in believing his statements in the past. I do not have the money to buy this lot and,
as I live on Social Security alone, do not expect to have more money in the future. The home is not
re-sellable, as its construction Is faulty. The lot's utility installations, waterlines, etc,are not what they
_..... . .. . . ..:should be.in this:climate...I.also do not.have funds to.move this home to another location, nor do.1 - -•-have another location where I could move it if it would survive the move. In short, I do not want to live
here but I have no other alternatives because I have lived here for more than two years.
As a senior citizen, I respectfully beg the City Council to deny the re-zoning requests, especially for
the occupied area of The Gardens and to help keep some.of us from being homeless.
Thank you,
S.Tikhomiroff '
REQUEST FOR COUNCIL ACTION MEETING
DATE: 2-6-06
AGENDA SECTION: ORIGINATING DEPT: ITEM NO.
PUBLIC HEARING PLANNING
ITEM DESCRIPTION: The Gardens Manufactured Home Park—Notice of Closing PREPARED BY:
Mitzi A.Baker,
Senior Planner
February 2, 2006
Planning Staff Review
See attached planning staff report.
Staff recommends accepting the"Notice of Closure/Conversion"for The Gardens Manufactured Home Park subject to the
following requirements:
1. The Park shall not be closed or converted prior to May 9, 2006
Council Action Requested:
The Council shall hold a public hearing. Following the hearing, the Council should direct the City
Attorney to prepare a Resolution supporting the Councils decision.
Attachments
1. Copy of staff report.
Distribution:
1. City Administrator
2. City Attorney
3. Planning Department File
COUNCIL ACTION: Motion by: Second by: to:
ROCHESTER-OLMSTED PLANNING DEPARTMENT )10LOCHESTE$.�yrNY��
2122 Campus Drive SE,Suite 100•Rochester,MN 55904-4744 ;•' o
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COUNTY OF www.olmstedcounty.com/planning moo•
02
�AORA TEI):Al1Gl)ST.S•P9•
DATE: February 2, 2006
TO: Rochester Common Council
FROM: Mitzi A. Baker, Senior Planner
RE: The Gardens Manufactured Home Community Park
Closure/Conversion Statement
Notice of Closing:
The Gardens Manufactured Home Community LLC, submitted a complete"Closure/Conversion
Statement'to the Rochester-Olmsted Planning Department on August 9, 2005. As stated in
Chapter 120, Section 120.03 of the Rochester Code of Ordinances, the"Closure Statement'shall •
be submitted nine (9) months prior to the closure of a Manufactured Home Park. Therefore, the
park owners will not be allowed to close or convert the park any earlier than May 9, 2006.
The closure or conversion of a manufactured home park is regulated by Chapter 327 Minnesota
Statues and Chapter 120 of the Rochester Code of Ordinances.
Notice of Public Hearing and Public Neighborhood Meeting:
The Rochester-Olmsted Planning Department sent notice to the owner of each manufactured
home located in The Gardens Manufactured Home Community on September 23, 2005 stating
the hearing date, time, place and purpose. A public hearing was scheduled for October 3, 2005,
but at the request of the applicant, was continued to October 17,2005 and later tabled to
February 6, 2006. A new notice of public hearing was sent to the owners of each manufactured
home in The Gardens on January 27, 2006.
Purpose of Public Hearing:
RCO 120.05. Public Hearing. A public hearing shall be held before the City Council for
the purpose of reviewing the closure statement and evaluating the impact, if any, the park closing
may have on the displaced residents and the park owner. Before any change of use or cessation
of operation, and as a condition of such change in use or cessation of operation, the City Council
may require the park owner to compensate the displaced residents for their reasonable relocation
costs or, if a manufactured home cannot be relocated, make a payment in lieu thereof.
BUILDING CODE 507/285-8345 • GIS/ADDRESSING/MAPPING 507/285-8232 • HOUSING/HRA 507/285-8224
w.awc. PLANNING/ZONING 507/285-8232 - WELL/SEPTIC 507/285-8345
FAX 507/287-2275
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
• Subd.3. "Displaced Resident" means 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 the park owner submits a closure statement to the City's Planning Commission.
Following the hearing the Council shall determine the amount of compensation to be paid,
if any, to the displaced residents.
According to Chapter 120, Section 120.06, Subd. 2, of the Rochester Code of Ordinances,
payment of relocation costs are as follows:
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
awning which were not acquired after notice of closure or conversion of the park, and
utility"hook-up"charges.
B. The cost of insurance for replacement value of the property being moved.
C. The total cost, not to exceed 15% of the County Assessor's estimated market value
of the structure, of minor repairs or modifications that are required in order to move
the manufactured home.
D. Required deposits at the relocation site in excess of any amount returned to the
manufactured home owner, up to a maximum of$250.00.
• Background Information:
The"Closure/Conversion Statement", provided by the Park owners, included a statement that"It
is anticipated that there will be no relocation costs payable to any Home Owner since no Home
Owner will be required to vacate his/her lot due to the conversion". The Park owners propose to
offer lots for sale, but will continue to rent lots to the existing residents who do not purchase their
lot. The Park owners recently provided a comparison of rent versus ownership for the lots in The
Gardens, and associated costs to residents. The finance summary suggests there would be no
cost increase to existing residents with the conversion of the park to those who continue to rent
lots, outside of lot rents increased annually by the Consumer Price Index.
Planning Staff met with the Park owners and their representatives along with representatives from
the Olmsted County Health Department, City Administration and City Attorney's office in October
2005 to discuss some of the anticipated outcomes of this closure/conversion as they relate to the
transition and application of regulations.
The Park owners have made a commitment that they will not rent any of the vacant lots for the
purpose of placement of a manufactured home. The vacant lots will only be available for sale.
Furthermore, the Park owners have said that they will continue to rent lots to existing residents
only. Through attrition, the Park would transition to a single family subdivision. The time over
which this transition would occur is unknown.
The State Health Department regulates Manufactured Home Parks, and locally this is
administered through the Olmsted County Public Health. The County Public Health Department
will continue to license those parts of The Gardens that will be operated as a Manufactured home
• Park, as addressed by Minnesota Statutes and Minnesota Rules.
The City Council will also need to determine whether the information submitted by the Park •
owners is sufficient to make a decision on potential financial impacts related to the Park
closure/conversion. The Council will need to determine whether there are potential financial
impacts to"displaced residents", and whether compensation will be required from the Park
owners to the"displaced residents".
Planning Staff Recommendation:
It appears that existing residents will not be forced to leave with this Park Closure/Conversion.
The Park owners have stated that they will continue to lease lots to residents who wish to
continue to lease, and will offer lots for sale to those who wish to purchase their lot. Considering
these unique circumstances, it does not appear that the City should require compensation to
"displaced residents", in this case.
Staff recommends accepting the "Notice of Closure/Conversion"for The Gardens Manufactured
Home Park subject to the following requirements:
I
1. The Park shall not be closed or converted prior to May 9,2006.
Attachments:
1) Closure Statement submitted by The Gardens Manufactured Home Community.
2) Copy of Chapter 120 Rochester Code of Ordinances. •
3) Financial information provided by The Gardens
4) Letter from Olmsted County Public Health
_I
'II
• MANUFACTURED HOME PARK CLOSINGS
120.01. Purpose. In view of the unique 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:
1. requiring compensation to displaced residents of such parks;
2. providing for proper disposal of potentially obsolete and dilapidated
manufactured homes; and
3. establishing the requirements for the closure of manufactured home parks
in the City of Rochester pursuant to Section 327C.095 of the Minnesota
Statutes.
120.02. Definitions. The following words and terms used in this chapter shall
have the following meanings unless the context clearly indicates otherwise.
Subdivision 1. "Closure Statement" means a statement prepared by the
park owner clearly stating that the park is closing, addressing the availability, location
and potential cost 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.
Subd. 2. "Department" means the Rochester Olmsted Planning Department.
• Subd. 3. "Displaced Resident" means 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 the park owner
submits a closure statement to the City's Planning Commission.
Subd.4. "Lot" means an area within a manufactured home park designed or
used for the accommodation of a manufactured home.
Subd. 5. "Manufactured Home" means a structure, not fixed to or part of real
estate, transportable in one or more sections,which in the traveling mode, is eight body
feet or more in width or 40 body 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.
Subd. 6. "Manufactured Home Park" means any site, lot,field or tract of land
upon which two or more occupied manufactured homes are located, either free of
charge or for compensation, and includes any building, structure, tent, vehicle or
enclosure used or intended for use as part of the equipment of the manufactured home
park. This definition does not include facilities which are open only during three or
fewer seasons of the year.
Subd. 7. "Park Owner" means the owner of a manufactured home park and
any person acting on behalf of the owner in the operation or management of a park.
• Subd. 8. "Person" means any individual, corporation, firm, partnership,
incorporated and unincorporated association, or any other legal or commercial entity.
i
i
120.03. Notice of Closing. If a manufactured home park is to be closed or •
converted in whole or in part to another use, or terminated as a use of the property,the
park owner shall, at least nine months prior to the closure or conversion to another use
or termination of use, provide a copy of a closure statement to a resident of each
manufactured home located in the manufactured home park and to the Department.
The Department shall charge a fee, in an amount determined by Council resolution, for
the cost incurred in processing the closure statements.
120.04. Notice of Public Hearing. The Department shall submit the closure
statement to the City Council at a public hearing. At least ten days prior to the public
hearing, the Department shall mail a notice to the owner of each manufactured home in
the park and to any resident paying rent to the park owner. The notice shall state the
hearing's time, place and purpose. The park owner shall provide the Department 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 Department.
120.05. Public Hearing. A public hearing shall be held before the City
Council for the purpose of reviewing the closure statement and evaluating the impact, if
any, the park closing may have on the displaced residents and the park owner. Before
any change of use or cessation of operation, and as a condition of such change in use
or cessation of operation,the City Council may require the park owner to compensate
the displaced residents for their reasonable relocation costs or, if a manufactured home
cannot be relocated, make a payment in lieu thereof.
120.06. Payment of Relocation Costs. Subdivision 1. Following the
submission of the closure statement and the public hearing, the park owner shall pay to •
each displaced resident the amount determined by the Council pursuant to Section
120.05 to be reasonable relocation costs.
Subd.2. Reasonable relocation costs may include:
A. The actual expense 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 total cost, not to exceed 15% of the County Assessor's estimated
market value of the structure, of minor repairs or modifications that are
required in order to move the manufactured home.
D. Required deposits at the relocation site in excess of any amount returned
to the manufactured home owner, up to a maximum of$250.00.
120.07. Payment In Lieu Of Relocation Cost. Subdivision 1. If a resident
cannot relocate the manufactured home with a 25-mile radius of the park that is being
closed, the Council may require the owner to make a payment to the resident in lieu of •
relocation costs in order to mitigate the adverse financial impact of the park closing.
The payment in lieu shall be an amount equal to the estimated market value of the
• I am not sure whether or not I will be able to make it to the meeting tonight, so please
accept this letter as my formal objection to the conversion of The Gardens Manufactured
Home Community from a manufactured home park to a common interest community.
I own the home located at 4216 Daffodil Avenue S.E, Rochester, MN 55904.
I do not have the means to purchase the lot where my home is located. I would not have
the desire to purchase the lot even if I had the means to do so.
I have numerous concerns regarding the conversion which have not yet been addressed,
including: lack of maintenance of common areas, inability to sell my home,possibility
that my home could be next to more commercial development, etc.
Please accept this document as my formal objection to the conversion proposed by The
Gardens Manufactured Home Community.
. eLa i
JuHTSchultz
4216 Daffodil Avenue S.E.
Rochester, MN 55901
•
i
manufactured home as determined by the County Assessor or the average relocation •
cost awarded to other park residents, whichever is greater.
Subd. 2. If it is not possible to fairly compute an average relocation cost, the
payment shall be based upon an estimate prepared by a qualified manufactured home
mover.
120.08. Verification of Cost and Distribution of Payments. The displaced
resident must submit a contract or other verified cost estimate for relocating the
manufactured home to the park owner for approval as a condition to the park owner's
liability to pay relocation expenses. If the park owner refuses to pay the contract or
other verified cost estimate, the park owner shall arrange for relocating the
manufactured home and pay the relocation costs identified in Section 120.06.
Relocation payments must be made no later than the date upon which the
manufactured home is removed from the park. In the case of manufactured homes that
cannot be removed, the in lieu payment shall be made at the time of, and shall be
contingent upon, the tendering of the manufactured home's title to the park owner. In
the event that the owner is unable to locate the title to the manufactured home, the
owner shall sign an affidavit setting forth: (1) the inability to locate the title; (2) the
home owner's desire to transfer ownership of the home to the park owner for disposal
purposes; and (3) the home owner's agreement to transfer ownership and releasing the
park owner from any liability for the home's eventual disposal.
120.09. Disposition of Manufactured Homes Not Capable of Being
Relocated. As a condition of the change in use or cessation of operation of the
manufactured home park, the City Council may require that any manufactured home not
capable of being relocated due to non-compliance with Rochester's Building Code shall •
be demolished and disposed in accordance with any and all applicable laws and
regulations. The park owner is responsible for the costs of demolition and disposal
120.10. Penalty. Subdivision 1. A violation of any provision of this chapter
shall be a misdemeanor. In addition,the City Attorney may enforce any provision of this
chapter by injunction or other appropriate civil remedy.
Subd.2. The City shall not issue a building permit or zoning certificate in
conjunction with reuse of manufactured home park property unless the park owner has
paid reasonable relocation costs or the in lieu payment as required by this chapter.
(3493, 6/17/02; 3496, 7/1/02)
CHAPTER 125
(Repealed by Ordinance No. 2546, 5/4/87; See Chapter 125A] •
. THE GARDENS MANUFACTURED HOME COMMUNITY
PARK CLOSURE/CONVERSION STATEMENT
TO: The City of Rochester and the Residents of The Gardens Manufactured Home Community
YOU ARE HEREBY NOTIFIED that The Gardens Manufactured Home Community
LLC, (the "Park Owner"),which owns and operates The Gardens Manufactured Home
Community, ("The Gardens"), plans to cease operation of The Gardens as a manufactured home
park effective no sooner than 9 months from the date you receive this notice. The purpose of the
cessation of The Gardens as a manufactured home park is to convert The Gardens from a
manufactured home park (in which all of the lots are under common ownership and each lot is
leased to the owner(s) of the home located on that lot) to a common interest community(in
• which a lot may be owned by the owner(s) of the home located on that lot). The conversion is
being done at the urging of residents of The Gardens.
Presently, the Park Owner owns all of the lots on which the homes in The Gardens are
located and the owners of the homes ("Home Owners")pay monthly lot rent to the Park Owner.
The conversion will create a "common interest community" in which each of the lots will be
platted as a separate lot that can be sold by the Park Owner to the Home Owner. The common
areas of The Gardens (such as the streets (if they remain private streets),the club house and the
other non-public amenities) will be owned and operated by a homeowners' association consisting
of the owners of all lots in The Gardens. Home Owners who purchase their lots will no longer
have to pay lot rent. It is felt that this will make it easier to obtain financing for homes located in
The Gardens. Home Owners who choose not to purchase their lots may continue to rent that lot
on terms that are mutually agreeable to the Park Owner and the Home Owner. All existing lot
leases with Home Owners will be honored.
Under Minnesota law, the Home Owners have the following rights:
1. A Home Owner may not be required to vacate the lot that he/she presently occupies •
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until 60 days after the City holds a public hearing to determine what relocation costs, if any,may
be payable by the Park Owner to the Home Owner. [It is anticipated that there will be no
relocation costs payable to any Home Owner since no Home Owner will be required to vacate
his/her lot due to the conversion.]
2. If a lot is available in another section of The Gardens that will continue to be
operated as a manufactured home park, the Home Owner shall be allowed to relocate the home
to that lot. [It is anticipated that all of The Gardens will be converted to the common interest
community.]
3. The terms of your present tenancy may not be altered during the notice period,
except that you may vacate and terminate your present occupancy upon one month's written
notice to the Park Owner. •
4. Notwithstanding paragraph 1, you maybe required to vacate your lot prior to the end
of the notice period by reason of non-payment of rent, utilities or other monetary obligations,
violations of law, waste, or conduct that disturbs other occupants'peaceful enjoyment of The
Gardens.
5. Nothing shall prevent the Park Owner and any Home Owner from agreeing to a right
of occupancy on a month-to-month basis beyond the notice period, or to an earlier termination of
the right of occupancy.
6. Not less than 120 days before the end of 9 months from the date you receive this
notice, the Park Owner will provide you with a form of purchase agreement setting forth the
terms of the sale of your lot. For 60 days after the mailing of that notice to you, you will have
2
• the option to purchase your lot on the terms contained in the purchase agreement. If you elect
not to exercise your option to purchase your lot within such 60 days, the Park Owner may not
offer to sell your lot during the following 180 days at a price or on terms more favorable than the
price or terms contained in the purchase agreement.
You may contact the Park Owner at 286-1177 if you have any questions about this
Statement.
Dated: THE GARDENS MANUFACTURED
HOME CO ITY LLC
By
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4325 Carden Court SE • Rochester,MN 55904 • (507) 286-9000 fax: 507
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RECEIVED
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ROCHESTER-GLYSTED
Pl `,NN'NG DEPART E:N'T
• 12 January 2006
PROPOSED CONVERSION OF THE GARDENS "land lease park"1.'O
THE GARDENS COMMON INTEREST COMMUNITY
All existing residents have the opportunity to purchase the lot that they currently rent,
convert their existing home from"chattel"to "real estate", and qualify.for additional
income tax deductions of.mortgage interest and tomes paid.
Residents who choose to continue renting rather then purchasing their home site may do
so, and will remain subject to the existing Home Lot Lease Agreement,Rules and
Regulations, and Covenants and Guidelines of The Gardens Community.
All residents of The Gardens Common Interest Community, whether they rent their.lot or
own their lot, will be subject to the new Common interest Community Declaration,
Restrictions, and Architectural Standards:for the Community.
Anticipated C.I.C.Association fee is$50/month, based on actual costs during 2004/2005.
2006 PROPOSED BUDGET:
Streets and grounds maintenance,mowing, and snow removal: $1800/nlo.
Street lights maintenance and electric: 450/mo.
Clubhouse cieanirig, electric, water, gas, and cable: 450/mo.
Office phone,supplies, and misc. e:cpenses: 200/mo.
• Accounting,management, and iiisurance: 1500/mo.
Misc. and reserve: 20Q/mo.
TOTAL MONTFILY BUDGET $4600/mo.
INCOME:
Mo.uthly fee from occupied lots: $50/lot x 82 lots= $41 Q0/mo.
Moutbly fee from-unsoldlots: $12.50/lot x 47 lots= 587/mo.
Monthly office rental and outside clubhouse use: 1500/ino.
TOTAL MONTHLY INCOME: $6187/mo.
WORKING CAPITAL FUND: ($100/sold lot x 82 lots) $SV00
LOT PURCHASE COST COMPARED TO CURRENT LOT RENTAL COST
Average lot price: $35,500 @ 6.5%,APR, 30 year Am...................$224/mo.*
Propertytax and C.I.C. fee...............................................................$80/mo.
Total monthly cost to own your lot:................................................S304/mo.
Currentaverage lot rent*..... ........................ . .................... ..........$311/mo.**
*Financing terms are based on proposals from Homestead Mortgage Corporation
*Lot rents will increase annually by the Conmimer Price Index
. CEIVED
j:�.+3 1 1 2u06
iER G^?,+SiED
JAN-01-1900 00:04 P.02/02
The proposed conversion of The Gardens Manufactured Home Community (a
land lease "park"), to a Common Interest Community where residents may •
purchase their lot rather than rent their lot, provides a unique opportunity to
all Gardens Community residents. For monthly payments of less than their
current lot rent and no down payment, existing residents can purchase their
lot and convert their home from"chattel" to "real estate", qualify for better
mortgage rates on their home, and qualify for additional income tax
deductions.
Azi resident who chooses to continue renting rather than purchasing their lot
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may do so. No existing resident will be required to purchase their lot or to
move from the community as a,result of the conversion.
The existing Lot Lease Agreements will stay in full force and affect for all
residents who choose to continue renting. Lot rents will not increase as a
result of the proposed conversion to a Common Interest Community. It is
anticipated that Rules & Regulations, and Covenants substantially similar to
those presently in affect will be adopted by the C. I. C. Association.
The owner of each lot will be assessed a Common Interest Community
Association fee. However, any resident who continues to rent their lot will •
not be assessed an Association fee in addition to their rent.
•
TOTAL P.[ice
r
•
January 31, 2006
Mitzi-
We continue to find The Gardens MH Park to be reasonably well designed and managed.The most
notable inconsistency, are several garages that were constructed in a way that are not fully compliant with
set back distances established in MN Manufactured Home Park Law. Interestingly, those setbacks may
be acceptable for local building and/or zoning codes applicable to MH Subdivisions.
The following observations are intended to clarify issues associated with the park owner's proposal to
convert the current MH Park into a MH subdivision where owners own and occupy properly recorded and
individually taxed"lots of record".
According to my notes from a meeting held at Planning Department a few months ago, every occupied
and un-occupied lot, will ultimately be sold. Existing occupants of the MH Park will be encouraged to
assume ownership of the lots they are now renting.
Public Health plans to continue to license those parts of The Gardens that will be operated as a
Manufactured Home Park, as addressed by MN Statutes Chapter 327, and MN Rules Chapter 4630.
The following factors are related to the licensing issue:
1. The Park currently has about 45 vacant lots. If these vacant lots are not occupied until they are
sold and occupied by individual lot owners,they do not need to be licensed as part of a MH Park;
2. Of the existing 82 occupied rental lots,the MH Park owners project that about Yz will be sold to
the current lot renters.When those lots are sold to the owners they will not be licensed;
3. However, the non-occupying owner of about 40 occupied lots will need to maintain MH Park
licensure.These may be scattered through out the current Park and intermingled with lots
becoming the proposed MH Subdivision.
4. In some cases, a party might purchase several lots and then proceed to rent each of the lots out
to people seeking a place to park their MH. In this scenario,the lot owner(s) will need to be
licensed as MH Park and the current"Gardens"will become the location of several licensed MH
Parks all located within the confines of the current"Gardens"MH Park.
It appears that parts of The Gardens will continue to be a licensed MH Park as it gradually converts to
becoming a MH Subdivision.
There were unresolved issues about ownership and maintenance of the sewage collection system
located in the streets and individual lots.All of the sewage collection system (located within the
perimeters of The Gardens) is reportedly owned and maintained by The Gardens MH Park. Reportedly,
Rochester City only owns and provides maintenance of sanitary sewer lines up to the perimeter of the
current park. At the time of our meeting, it was not yet clear how ownership and responsibility for the
sewage utility within the Park (but outside of the individual lots) will be addressed. Whatever
arrangements are made for the sanitary sewer will need to be workable and satisfactory to the owners
and to the City.
If you have further questions, please contact Steve Lackore or me.
Thanks
Rich Peter, Director of Environmental Health
Olmsted County Public Health
• 2100 Campus Drive SE
Rochester MN, 55904
507-285-8335, FAX 287-1492