09-15-97 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
September 15, 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; Steven Devich, Acting City
Clerk; Bruce Palmborg, Community Development Director; and
Marnie McGrath, Administrative Aide.
APPROVAL OF MINUTES
M/Sandahl, S/Susag to approve the minutes of the Regular HRA Meeting of August
18, 1997.
Motion carried 5-0.
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
HRA Meeting Minutes-2-September 15, 1997
Item #2CONSIDERATION OF RESOLUTION AUTHORIZING ISSUANCE OF
COMPLETION CERTIFICATES FOR RICHFIELD REDISCOVERED
PROPERTIES TO STEVEN MARLIN GRANT HOMES, INC. FOR 7424
FIFTH AND 7421 EMERSON AVENUES; SHADE TREE CONSTRUCTION
FOR 6205 MORGAN AVENUE; AND ROCKPORT HOMES FOR 7625
EMERSON AVENUE. HRA LETTER NO. 54
Executive Director Prosser reviewed HRA Letter No. 54 regarding consideration of
authorization to issue completion certificates to Steven Marlin Grant Homes, Inc. for 7424
Fifth and 7421 Emerson Avenues; Shade Tree Construction for 6205 Morgan Avenue;
and Rockport Homes for 7625 Emerson Avenue.
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. 643
RESOLUTION AUTHORIZING THE ISSUANCE OF COMPLETION CERTIFICATES FOR
RICHFIELD REDISCOVERED PROPERTIES AT 7424 FIFTH AVENUE, 7421 EMERSON
AVENUE, 6205 MORGAN AVENUE AND 7625 EMERSON AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 643 in HRA
Resolution Book No. 5.
Item #3CONSIDERATION OF AUTHORIZING RELEASE OF $105,000 CASH
PERFORMANCE SECURITY, MERIDIAN CROSSINGS.
HRA LETTER NO. 55
Executive Director Prosser reviewed HRA Letter No. 55 regarding consideration of
authorizing release of $105,000 performance security, Meridian Crossings.
Commissioner Sandahl asked if staff believes this to be a reasonable request and
that it would not put the HRA in financial jeopardy.
Community Development Director Palmborg responded that this should pose no
financial problem for the HRA.
M/Sandahl, S/Susag to authorize the release of $105,000 cash performance
security for Meridian Crossings.
Motion carried 5-0.
HRA Meeting Minutes-3-September 15, 1997
Item #4CONSIDERATION OF REQUEST FROM RICHFIELD FLORAL AND
NURSERY FOR REDUCTION IN SALE PRICE OF 817 EAST 66TH STREET
AND WAIVER OF CERTAIN DEVELOPMENT REQUIREMENTS. HRA
LETTER NO. 56
Executive Director Prosser reviewed HRA Letter No. 56 regarding a request from
Richfield Floral and Nursery for reduction in sale price of 817 East 66th Street and a
waiver of certain development requirements.
Pat Harris and Nancy Griemann, Richfield Floral and Nursery, addressed the HRA
to request a series of modifications for the development of the property at 817 East 66th
Street. Those requested modifications are as follows:
1.The new facade for the existing building will not be required at this time.
(However, staff would still like to see it done in the future if possible.)
2.A new sign will not be required.
3.The existing parking lot need not be completely reconstructed as shown on the
approved plans. Instead, the only thing required is the closing of the two curb
cuts to 66th Street and the installation of a catch basin and storm sewer pipe.
(With the curb cut to 66th Street closed, the parking lot would flood without the
catch basin.)
4.No blacktop on the parking lot behind the new building.All parking and driving
areas are required by City code to be hard surfaced.
5.No storm sewer in the new parking lots.All new development and
redevelopment is required under the Storm Water Management Plan to provide
on-site storm water collection.
6.Maintain the existing curb cuts to 66th Street. (The approved plan shows
closing all access to 66th Street.) Closing the curb cuts is being requested in
the interest of safety and traffic management and also to increase the amount of
available on-site parking.
Commissioner Sandahl asked specifically what they were asking for with respect to
the land.
Pat Harris asked that the land be sold for a down payment now and payment for the
property in ten years.
Chair Harms asked if the sole reason for asking for these reductions was due to the
loan to value ratio. He stated that under this analysis he had a difficulty in financing an
improvement that will enhance their profitability.
Nancy Griemann responded that their project was an effort on their part to enhance
the east end of Richfield by improving their property.
Commissioner Harms stated that the HRA turned away another developer who
would have developed the site without these concessions.
HRA Meeting Minutes-4-September 15, 1997
Commissioner Susag reviewed the request by Richfield Floral and Nursery and
stated that he did not see where their request resulted in a subsidy.
Commissioner Sandahl stated that the issue of subsidy comes in when one
compares the price of land today in comparison to the price in the future. It is a matter of
present value of the land paid at future value dollars. He said he would not be supportive
of giving Richfield Floral and Nursery a deal on the property or project that the HRA would
not give to any other potential developer.
Chair Harms asked if this issue was one of whether Richfield Floral and Nursery
can get a loan on this project or that they can’t afford to pay the costs of this project.
Pat Harris stated that they did not want to build a project that was over valued for
the neighborhood.
Commissioner Susag said that all he can deal with is the issues before the HRA,
namely the modifications to the project and the delayed payment for the land.
Executive Director Prosser stated that staff was unable to ascertain from Richfield
Floral and Nursery exactly what terms they were seeking for the payment for the land.
M/Sandahl, S/Susag to authorize staff to negotiate with Richfield Floral and
Nursery a new development with the first three modifications, with a strong preference that
the facade be completed at a future date, if possible; and that no deferred payment plan
for the land will be accepted that sells the property for less than $65,200 in present value
dollars. Staff and developer will come up with an alternate plan to include the following:
x
What it will look like, its staging, and what length of time
x
A plan for what subsidy they want providing the HRA gets the present value of
$65,200 for the land (terms and full recovery)
x
That the alternate plan be brought to the HRA
Motion carried 5-0.
The Executive Director stated that this is to be included on the October agenda,
then Richfield Floral and Nursery must present the plan to staff for review two weeks from
today.
Commissioner Susag wants the record to reflect that the HRA bought the property
for $117,000 and put another $10,000 into the property in demolition costs and is offering
to sell it to Richfield Floral for $65,200.
Item #5 EXECUTIVE DIRECTOR REPORT
HRA Meeting Minutes-5-September 15, 1997
Executive Director Prosser stated that the City received a proposal from Data
Source Hagen to purchase the Lambert site. Mr. Prosser stated that Data Source Hagen
is in a time bind and is requesting some financial assistance. He stated that we have not
been able to test the market on the sale of the property, but it appears that the property
may bring between $500,000 - $750,000 on the open market with no subsidy.
Commissioner Sandahl stated that he empathized with Hagen, but the same
argument about giving away property and money that applies to the property on 66th
Street also applies here.
Commissioner Susag stated that he thought that Data Source Hagen was a major
tenant in the Lyndale South development.
Executive Director Prosser explained that the time pressures of the Data Source
Hagen decision complicated the negotiations for that development. However, the Lyndale
Avenue South project is still viable without Data Source Hagen as a major tenant.
Commissioner Harms stated that if we can’t pass a “but for” analysis, we can’t give
Data Source Hagen Tax Increment Financing assistance. He stated that the site doesn’t
pass the “but for” analysis at this time.
Item #6CLAIMS AND PAYROLL
M/Helmberger, S/Stokes that the following claims and payrolls be approved:
FIRSTAR BANK
Checks: 11217 - 11321$140,720.12
HRA Checks: 18347 - 18359; 18561 - 18619$626,147.44
Motion carried 5-0.
ADJOURNMENT
HRA Meeting Minutes-6-September 15, 1997
The meeting was adjourned by unanimous consent at 7:58 p.m.
Date Approved:
Thomas E. Harms
Chair
Steven L. DevichJames D. Prosser
Acting City ClerkExecutive Director