07-21-97 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
July 21, 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.
Staff Present :James Prosser, Executive Director; Thomas Ferber, City Clerk;
Bruce Palmborg, Community Development Director; and John Melin,
Community Development Manager.
APPROVAL OF MINUTES
M/Sandahl, S/Susag to approve the minutes of the regular HRA Meeting of June
16, 1997.
Motion carried 5-0.
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
HRA Meeting Minutes-2-July 21, 1997
Item #2PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF 6637 WASHBURN AVENUE TO STEVEN MARLIN
GRANT HOMES, INC. AND 6415-14TH AVENUE TO AFFORDABLE
SUBURBAN HOUSING, INC. FOR RICHFIELD REDISCOVERED SINGLE
FAMILY HOME DEVELOPMENT.
HRA LETTER NO. 40
Executive Director Prosser reviewed HRA Letter No. 40 regarding the sale of 6637
Washburn Avenue to Steven Marlin Grant Homes, Inc. and 6415-14th Avenue to
Affordable Suburban Housing, Inc. for Richfield Rediscovered single family home
development.
M/Sandahl, S/Helmberger to close the public hearing.
Motion carried 5-0.
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. 636
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 6637 WASHBURN AVENUE TO STEVEN MARLIN GRANT HOMES, INC.
AND 6415-14TH AVENUE TO AFFORDABLE SUBURBAN HOUSING, INC.
IN ACCORDANCE WITH DEVELOPMENT AGREEMENTS
Motion carried 5-0. This resolution appears as HRA Resolution No. 636 in HRA
Resolution Book No. 5.
Item #3CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF
CONTRACT WITH HENNEPIN TECHNICAL COLLEGE TO INITIATE 1997-
98 NEW HOME PROGRAM PROJECT AT 7520 PORTLAND AVENUE.
HRA LETTER NO. 41
Executive Director Prosser reviewed HRA Letter No. 41 regarding the proposed
contract with Hennepin Technical College in the amount of $88,000 for a New Home
Program Project at 7520 Portland Avenue.
M/Sandahl, S/Helmberger to close the public hearing.
Motion carried 5-0.
HRA Meeting Minutes-3-July 21, 1997
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. 637
RESOLUTION AUTHORIZING EXECUTION OF A CONTRACT WITH
HENNEPIN TECHNICAL COLLEGE (HTC) FOR DEVELOPMENT OF
7520 PORTLAND AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 637 in HRA
Resolution Book No. 5.
Item #4CONSIDERATION OF RESOLUTION AUTHORIZING SECOND
REDUCTION TO LETTER OF CREDIT FOR SHOPS AT LYNDALE, PHASE
II. HRA LETTER NO. 42
Executive Director Prosser reviewed HRA Letter No. 42 regarding a proposed
resolution authorizing a $180,000 reduction in the Letter of Credit for the Shops at
Lyndale, Phase II and to extend the deadline for CSM to complete the remaining site work
outlined in the Letter of Undertaking, dated December 16, 1996.
Commissioner Sandahl discussed traffic concerns regarding exiting the Shops at
Lyndale to go west on 77th Street. He stated that CSM has not responded to the City’s
request to try using internal signage to encourage traffic to exit onto the frontage road to
Girard Avenue and then onto 76th Street. He stated he would be reluctant to support the
proposed resolution until CSM responds to this issue.
Dave Young, legal counsel representing CSM Corporation, stated that he was
unaware of this issue but would bring it back to the principals of the corporation so that
the issue can be resolved.
Chair Harms requested that staff provide a written response to this issue within 10
days.
Commissioner Sandahl suggested that the proposed resolution be amended to
make further reduction to the Letter of Credit contingent upon resolution of the traffic
issue.
M/Sandahl, S/Helmberger that the following HRA resolution be adopted as
amended, that it be spread in the HRA resolution book and that it be made part of these
minutes:
HRA RESOLUTION NO. 638
HRA Meeting Minutes-4-July 21, 1997
RESOLUTION AUTHORIZING A $180,000 REDUCTION IN IRREVOCABLE
STANDBY LETTER OF CREDIT ORIGINALLY DATED NOVEMBER 15, 1996
AND AMENDED APRIL 4, 1997, FOR THE ACCOUNT OF
CSM INVESTORS, INC. SHOPS AT LYNDALE, PHASE II
Motion carried 5-0. This resolution appears as HRA Resolution No. 638 in HRA
Resolution Book No. 5.
Item #5CONSIDERATION OF RESOLUTION SETTING AMOUNT OF REDUCTION
IN LETTERS OF CREDIT FOR MERIDIAN CROSSINGS. HRA LETTER
NO. 43
Executive Director Prosser reviewed HRA Letter No. 43 regarding a request by
Meridian Properties Real Estate Development LLC (TOLD Development Company) to
reduce the amounts of the Letters of Credit for Meridian Crossings. He presented a
memo from Corrine Thomson, Kennedy & Graven, recommending that the HRA authorize
a reduction in the Letter of Credit to $150,000 upon receipt of the Old Republic National
Title Insurance Company endorsement regarding the Phase II property.
M/Susag, S/Sandahl 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. 639
RESOLUTION AUTHORIZING EXTENSION OF LETTER OF CREDIT,
MERIDIAN CROSSINGS
Motion carried 5-0. This resolution appears as HRA Resolution No. 639 in HRA
Resolution Book No. 5.
Item #6PRESENTATION OF ANNUAL STATUS REPORT ON TAX INCREMENT
DISTRICTS. HRA LETTER NO. 44
Sid Inman, Ehlers/Publicorp, Inc., the HRA’s development consultant, presented
and answered questions on a report entitled “Richfield HRA Tax Increment District Status
Update, June, 1997.”
Larry Wozniczka, 6744 Wentworth Avenue, questioned why only two Richfield
Rediscovered Properties were listed on page 7 of the report.
HRA Meeting Minutes-5-July 21, 1997
Mr. Inman stated that the report listed only the only two Richfield Rediscovered
properties which have Assessment Agreements. He stated that there is a report on all of
the Rediscovered Properties, however, they are waiting for the information on the class
rate change to finalize that report.
M/Sandahl, S/Susag to accept the Richfield HRA Tax Increment District Status
Update, June, 1997 Report.
Motion carried 5-0.
Item #7CONSIDERATION OF PRIORITIZING DEVELOPMENT OPPORTUNITIES
UTILIZING PROCEEDS OF BONDS OF 1996. HRA LETTER NO. 45
Executive Director Prosser reviewed HRA Letter No. 45 regarding the Development
Investment Opportunities list and priority options to utilize the proceeds of the Bonds of
1996. He gave a status report on the VFW/American Legion merger indicating that it
appeared the merger would not occur. He stated that the VFW has indicated they are
reviewing options for a smaller site to relocate to on their own.
Commissioner Sandahl stated that the South Lyndale Avenue Project is one
priority. He stated that the HRA had supported and encouraged the VFW/American
Legion merger and joint facility on the Lampert site, but may need to move forward with
something else for the site.
Executive Director Prosser stated that the Lampert and Pillsbury Avenue City
garage sites would need to be marketed since the anticipated proceeds will be needed for
the new City Maintenance Facility. He stated the Pillsbury site would be looked at for
possible townhome development and the Lampert site could be looked at for a possible
banquet facility, either privately owned or HRA owned.
Mike Conlan, Housing Services, Inc., reviewed their proposal to construct a 150
unit limited equity coop housing project for seniors on the American Legion site. He
stated that there is a demand for this type of housing and that if the American Legion site
does not become available, they are still interested in building in Richfield if another site
becomes available.
Chair Harms stated that the HRA had encouraged the VFW/American Legion
merger and hoped that it still may occur. He encouraged staff to work with Housing
Services, Inc. to find a development site. He stated support for the South Lyndale Avenue
Project as a priority and stated that the 66th Street Penn Avenue area could also be a
priority area.
HRA Meeting Minutes-6-July 21, 1997
Commissioner Susag stated that he had been an advocate of the VFW/American
Legion merger and that the studies demonstrated the need for such action which should
continue to be encouraged. He stated support for the South Lyndale Avenue Project as a
priority. He stated opposition to a HRA owned banquet facility at the Lampert site stating
the HRA should encourage development of such a facility and not operation of it.
Commissioner Helmberger stated that she still had hoped that the VFW/American
Legion merger would occur. She stated support for the highest and best use for the
Lampert Site and for the South Lyndale Avenue Project as a priority.
Item #8CONSIDERATION OF VARIOUS REDEVELOPMENT PROPOSALS FOR
7600 BLOCK OF LYNDALE AVENUE AND ADJACENT RESIDENTIAL
HALF BLOCKS. HRA LETTER NO. 46
Executive Director Prosser reviewed HRA Letter No. 46 regarding the
redevelopment proposals for the 7600 block of Lyndale Avenue and adjacent residential
half blocks.
Dr. Jack Torvick, Torvick Chiropractic, presented a redevelopment concept called
Lyndale Park Plaza which envisioned the phased demolition and reconstruction of the
area to provide four, two story buildings totaling 132,000 square feet. He stated there
would be 528 parking spaces with half of those underground. He stated he envisioned a
200 foot enclosed span pedestrian bridge over Lyndale Avenue connecting the east and
west portions of the project at 76th Street. Dr. Torvick stated all current businesses have
been invited into the project with a goal of retaining at least 50% or more. He stated the
businesses between 74th Street and 75th Street would be encouraged to relocate to the
project and then townhomes could be built on their sites except that the Transmission
Shop would remain. He stated that Richfield Bank would serve as financial facilitator for
the project. Dr. Torvick indicated the plan would propose an “s” curve in the Lyndale
Avenue roadway in this area. He reviewed slides of the existing conditions while
presenting the Lyndale Park Plaza concept.
Chair Harms asked if Dr. Torvick had financial data and if he had approached a
developer with this concept.
Dr. Torvick stated he had not had time to put together the financial data. He stated
he would facilitate the project with Richfield Bank. He indicated he thought of the City as
the developer. He stated he anticipated the gap to be less than the other proposals if
most of the existing tenants participate, which would lower the cost of acquisition.
Commissioner Stokes asked how the project would integrate with the
neighborhood.
HRA Meeting Minutes-7-July 21, 1997
Dr. Torvick stated that the neighborhood is looking for a gathering place and that
some prefer not to have townhomes.
Executive Director Prosser stated that the HRA may wish to assist in putting the
financial information together for the concept if they want to consider all aspects of each
proposal with similar comparative information.
Commissioner Sandahl stated all three concepts look good. He discussed the
relative importance of the financial aspects and stated support for staff helping to prepare
the comparative financial data for presentation to the HRA.
Chair Harms stated that the HRA was not prepared to chose a developer tonight.
He stated that the HRA needs to know for each concept the preliminary design, the actual
participation not just interest in the project, the use mix, the costs, and how the project will
be financed so that the proposals can be evaluated. He stated that the developers need
to know the criteria and timeframes. He suggested that staff can provide some help in
putting the information together so that the HRA can proceed to compare and evaluate the
concepts.
Commissioner Susag requested that information on the existing square footage mix
of uses and parking also be provided for comparative purposes.
Gary Tushie, Tushie Montgomery Associates, Inc., representing the Local
Partnership Group including himself, Fred Ryan, and Steve Sawitzke, reviewed the recent
revisions to their Mainstreet Shops on Lyndale Concept Proposal. He stated that
DataSource Hagen Company would like to consolidate their Edina and Richfield facilities.
Mr. Tushie stated that to accommodate DataSource Hagen Company, the revised plan
would provide for one 80,000 square foot three story building on the block between
Lyndale Avenue and Garfield Avenue. DataSource Hagen would initially occupy about
40,000 square feet with possible phased future occupancy by them of the whole building.
He stated the building would be built with the potential for a fourth floor if needed in the
future. He stated that another new element of the plan would be the possible addition of
townhome units in place of the existing single family homes along the east side of Garfield
Avenue. He stated the plan remained the same for the west side of Lyndale Avenue as
presented previously.
Richard Palmiter, Rottlund Homes, made a presentation regarding the type of
townhomes which would be included in the Mainstreet project and showed slides of similar
projects in other communities.
Mr. Tushie presented a proposed development schedule for the Mainstreet Shops
on Lyndale project, which showed building occupancy for DataSource Hagen Company in
June 1998. He stated timing is important for this tenant because of existing leases.
HRA Meeting Minutes-8-July 21, 1997
John Laurent and Bill Schatzlein reviewed the Laurent Parks Development Group
concept proposal. Mr. Laurent presented a concept drawing indicating that the concept
was meant to be a dramatic gateway to Richfield. He stated that they have increased the
number of apartment units from 150 to 256, and increased the per unit value. He stated
there would be two, four story buildings on either side of Lyndale Avenue, with three floors
of apartments above level retail space. He indicated that the financial gap had been
reduced to approximately $470,000 with the revisions. He asked if the HRA was still
interested in the plan given the two local group proposals.
Chair Harms stated that all three proposals have merit. He requested staff to meet
with Dr. Torvick to see how much time is needed to gather the additional information. He
stated the HRA would like a timeframe to make the decision in a timely manner.
Discussion followed regarding when the information would be ready for the HRA to
review and make a decision. The Commissioners indicated they were not opposed to
scheduling a special meeting if necessary.
Commissioner Susag indicated to Mr. Laurent that if all things were equal in the
proposals, he would favor a local group.
Item #11 EXECUTIVE DIRECTOR REPORT
There was no discussion regarding the Executive Director’s report.
Item #12CLAIMS AND PAYROLL
M/Susag, S/Stokes that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks 11107-11216$143,254.08
HRA Checks: 18298-18324; 18404-18450$485,688.17
Motion carried 5-0.
ADJOURNMENT
The HRA meeting was adjourned by unanimous consent at 8:45 p.m.
HRA Meeting Minutes-9-July 21, 1997
Date Approved:
Thomas E. Harms
Chair
Thomas P. FerberJames D. Prosser
City ClerkExecutive Director