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06-16-97 Regular HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting June 16, 1997 CALL TO ORDER The meeting was called to order by Chair Harms at 7:00 p.m. ROLL CALL HRA Members Present:Thomas Harms; Joan Helmberger; Kristal Stokes; Michael Sandahl and Russ Susag (arrived at 7:13 p.m.). Staff Present :James Prosser, Executive Director; Steven Devich, Acting City Clerk; and Bruce Palmborg, Community Development Director. APPROVAL OF MINUTES Commissioner Helmberger requested that the minutes of the regular HRA Meeting of May 19, 1997 be amended to reflect Acting Chair Helmberger calling the meeting to order. M/Helmberger, S/Stokes to approve the minutes of the regular HRA Meeting of May 19, 1997 as amended. Motion carried 4-0. HRA Meeting Minutes-2-June 16, 1997 Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA. Mark Nichols, Pawn & Gun, 7529 Lyndale Avenue, asked if his property was included for current redevelopment. Mr. Harms informed Mr. Nichols that this property was not under redevelopment consideration, though it was in the redevelopment district. Item #2PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 7600 EMERSON AVENUE TO ROCKPORT HOMES, INC. FOR RICHFIELD REDISCOVERED SINGLE FAMILY HOME HRA LETTER NO. 31 Executive Director Prosser reviewed HRA Letter No. 31 regarding the sale of 7600 Emerson Avenue to Rockport Homes, Inc. for the Richfield Rediscovered Program. Larry Wozniczka, 6744 Wentworth Avenue, asked if it would be a tax increment project. Community Development Director Palmborg stated that it was not a tax increment project. M/Sandahl, S/Helmberger to close the public hearing. Motion carried 4-0. M/Sandahl, S/Stokes that the following HRA resolution be adopted, that it be spread in the HRA resolution book and that it be made part of these minutes: HRA RESOLUTION NO. 633 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7600 EMERSON AVENUE TO ROCKPORT HOMES, INC. IN ACCORDANCE WITH A CONTRACT FOR PRIVATE DEVELOPMENT Motion carried 4-0. This resolution appears as HRA Resolution No. 633 in HRA Resolution Book No. 5. HRA Meeting Minutes-3-June 16, 1997 Item #3CONTINUATION OF PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 6629 WASHBURN AVENUE TO KEN AND REIDUN STACK OF HOPKINS FOR RICHFIELD REDISCOVERED SINGLE FAMILY HOME DEVELOPMENT. HRA LETTER NO. 32 Executive Director Prosser reviewed HRA Letter No. 32 regarding the sale of 6629 Washburn Avenue to Ken and Reidun Stack for the Richfield Rediscovered Program. M/Helmberger, S/Stokes to close the public hearing. Motion carried 4-0. M/Helmberger, S/Stokes that the following HRA resolution be adopted, that it be spread in the HRA resolution book and that it be made part of these minutes: HRA RESOLUTION NO. 634 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6629 WASHBURN AVENUE TO KEN AND REIDUN STACK, HUSBAND AND WIFE, IN ACCORDANCE WITH A CONTRACT FOR PRIVATE DEVELOPMENT Motion carried 4-0. This resolution appears as HRA Resolution No. 634 in HRA Resolution Book No. 5. Item #4CONSIDERATION OF PARTIAL FUNDING REQUEST FOR ENTERPRISE FACILITATION. HRA LETTER NO. 33 Executive Director Prosser reviewed HRA Letter No. 33 regarding a partial funding request for Enterprise Facilitation which is a community based process designed to strengthen the operation of existing small businesses and assist people who desire to establish a new business. Jay Stevens, Richfield Chamber of Commerce, spoke in support of this program. Chair Harms asked if this program had been done anywhere in Minnesota in the past. Community Development Director Palmborg stated that Hastings has a program that is about two months old and which is the first such program in Minnesota. He stated that Hennepin County and several other communities are considering it. Commissioner Susag arrived at this time (7:13 p.m.). HRA Meeting Minutes-4-June 16, 1997 Chair Harms said he was reluctant to invest $58,000 now to lead the program in Hennepin County. Commissioner Sandahl stated that he felt that $58,000 was an appropriate amount to invest in assisting small businesses in the community. Commissioner Helmberger asked if Community Development Director Palmborg was aware of any particular small businesses in the community who were interested in this program. Community Development Director Palmborg responded that he was and described an example. Commissioner Sandahl spoke in support of the program. Commissioner Helmberger requested that program results be reported in a checkpoint fashion so that program success may be monitored. M/Sandahl, S/Susag to include in the Revised 1997 and Proposed 1998 and 1999 budgets $58,000 of funding over 24 months to help support Enterprise Facilitation. Motion carried 3-2. (Harms and Stokes opposed) Item #5CONSIDERATION OF REDEVELOPMENT PROPOSAL AND REDEVELOPMENT AGREEMENT FOR 7600 BLOCK OF LYNDALE AVENUE. HRA LETTER NO. 34 Executive Director Prosser reviewed HRA Letter No. 34 regarding a redevelopment proposal and agreement for 7600 block of Lyndale Avenue. Bob Deike, Bradley & Dieke, PA, addressed the HRA to introduce the development proposal and team consisting of Patrick O’Brien, Fred Ryan and Steve Sawitzke. Gary Tushie, Tushie-Montgomery, architect for the project described the development area and proposed project. He stated the project includes four buildings which provide 48,000 square feet of new commercial and retail space, and 28,000 square feet of new office space. The project also includes 60 townhome units surrounding the commercial buildings. Commissioner Sandahl asked how pedestrians would get from the east to the west side of Lyndale Avenue on that block. Mr. Tushie responded that the project would modify the flow of traffic on the 7600 block and a mid-block pedestrian crossing would be installed. He acknowledged that the issue remains to be resolved. HRA Meeting Minutes-5-June 16, 1997 Chair Harms asked about the status of the development proposal submitted by the Laurent-Parks group last month. Executive Director Prosser responded that the current project is much more financially feasible than the previous proposal. Commissioner Susag asked if the office space would be competing with Meridian Crossings and what type of impact the heavier density of townhomes would produce in the area. Mr. Tushie stated that this was a different market than Meridian Crossings. He also stated while the traffic issue was not fully explored at this point, it may be that the impact could be minimal based on somewhat similar previous projects. Bob Deike further described the development proposal which would provide loans to the development partner to secure the properties. He stated the group will be speaking to the property owners in the area and would like an indication of support for the concept by the HRA. Chair Harms stated that he is supportive of continuing discussions with the group, but is not in a position to authorize the funds or approve the project at this time. Commissioner Sandahl stated that he was also not in a position to authorize the funds, but that he was very interested in this concept if the HRA is in a position to redevelop this block. Commissioner Susag stated that he was not supportive of acting on the project this evening. He stated that there is another group to propose a project for the area. Commissioners Stokes & Helmberger concurred with Commissioner Susag. Commissioner Sandahl stated that while he wanted to hear from other developers, he felt that the HRA can’t afford to wait too long because the businesses and property owners in the area need an answer. Larry Wozniczka, 6744 Wentworth Avenue, asked about the tax increment financing and its relationship to the ILN. Commissioner Harms stated that no details were available at this time. M/Harms, S/Helmberger to continue discussions and explore this concept, but that the HRA is still open to other concepts with some reasonable time limit. Motion carried 5-0. Item #6CONSIDERATION OF EXCLUSIVE DEVELOPMENT RIGHTS AGREEMENT WITH CSM, INC. FOR INTERCHANGE WEST AREA. HRA Meeting Minutes-6-June 16, 1997 HRA LETTER NO. 35 Executive Director Prosser reviewed HRA Letter No. 35 regarding an Exclusive Development Rights Agreement with CSM, Inc. for the Interchange West Area. Murray Kornberg, CSM, Inc., reviewed the terms of an Exclusive Development Rights Agreement requested. He stated that nothing in the proposal agreement requires the City to take any future action and the City can cancel the 2 year agreement with 30 days notice if CSM is not diligently pursuing the redevelopment. Commissioner Susag asked if the other terms of the agreement have ceased if the HRA canceled the agreement in one year. Mr. Kornberg responded that they would all cease. Commissioner Harms felt the agreement would be difficult to terminate with 30 days notice and that it really locks up the property for two years. He stated he opposes it. Commissioner Helmberger stated she could support the agreement for a term of six months. Commissioner Sandahl suggested the term be at least one year, since in his view little could be accomplished in six months. Chair Harms stated that he would make a motion that the term be six months and that it be renewable. General discussion took place regarding an appropriate term of the agreement. Executive Director Prosser stated that the term is one issue and the HRA must be comfortable with the length of it. He stated it is also important that this property not be developed on a piece meal basis. M/Harms, S/Helmberger to approve the Exclusive Development Rights Agreement with CSM, Inc. for the undertaking of a redevelopment feasibility study of the area lying north of I-494, south of 76th Street, east of Penn Avenue and west of Knox Avenue, known as the Interchange West Area for a term of six months which would be renewable. Motion carried 3-2. (Sandahl and Stokes opposed) Item #7CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7332 QUEEN AVENUE FOR RICHFIELD REDISCOVERED PROGRAM. HRA LETTER NO. 36 HRA Meeting Minutes-7-June 16, 1997 Executive Director Prosser reviewed HRA Letter No. 36 regarding the purchase of 7332 Queen Avenue for the Richfield Rediscovered Program. M/Helmberger, S/Susag that the following HRA resolution be adopted, that it be spread in the HRA resolution book and that it be made part of these minutes: HRA RESOLUTION NO. 635 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7332 QUEEN AVENUE FOR THE RICHFIELD REDISCOVERED PROGRAM Motion carried 5-0. This resolution appears as HRA Resolution No. 635 in HRA Resolution Book No. 5. Item #8CONSIDERATION OF APPROVAL OF RIGHT OF ENTRY AGREEMENT BETWEEN STEVEN MARLIN GRANT HOMES AND RICHFIELD HRA FOR 6633 WASHBURN AVENUE. HRA LETTER NO. 37 Executive Director Prosser reviewed HRA Letter No. 37 regarding a Right of Entry Agreement between Steven Marlin Grant Homes and Richfield Housing and Redevelopment Authority for 6633 Washburn Avenue. M/Susag, S/Helmberger to authorize execution of the Right of Entry Agreement between Steven Marlin Grant Homes and the Richfield Housing and Redevelopment Authority for 6633 Washburn Avenue. Motion carried 5-0. Item #9ACCEPTANCE OF “AWARD OF EXCELLENCE” FOR RICHFIELD REDISCOVERED PROGRAM. HRA LETTER NO. 38 Bruce Nordquist, President of National Association of Housing and Redevelopment Officials (NAHRO) presented the HRA with the 1997 Regional Award of Excellence for the Richfield Rediscovered Program. Item #10REPORT ON RICHFIELD REDISCOVERED REMODELING PROGRAM AND OTHER REHABILITATION LOAN PROGRAMS. HRA LETTER NO. 39 HRA Meeting Minutes-8-June 16, 1997 Pam Bookhout, Community Development Specialist, reviewed the housing programs provided for residents of the City of Richfield. Ms. Bookhout presented a brief synopsis of the program results. Dave Schaefer, Remodeling Advisor, made a brief presentation regarding the Remodeling Program and its success. Item #11 EXECUTIVE DIRECTOR REPORT None. Item #12CLAIMS AND PAYROLL M/Helmberger, S/Susag that the following claims and payrolls be approved: FIRSTAR BANK Section 8 Checks 11001-11105$136,882.64 HRA Checks: 17897-18297; 18361-18402$247,429.96 Motion carried 5-0. ADJOURNMENT The HRA meeting was adjourned by unanimous consent at 8:45 p.m. Date Approved: Thomas E. Harms Chair Steven L. DevichJames D. Prosser Acting City ClerkExecutive Director