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03-16-98 Regular HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting March 16, 1998 CALL TO ORDER The meeting was called to order by Chair Harms at 8:00 p.m. ROLL CALL HRA Members Present:Thomas Harms, Joan Helmberger, Michael Sandahl, Kristal Stokes and Russ Susag. Staff Present :James D. Prosser, Executive Director; Thomas Ferber, City Clerk; and Bruce Palmborg, Community Development Director. APPROVAL OF MINUTES M/Sandahl, S/Stokes to approve the minutes of the Regular HRA Meeting of February 17, 1998. Motion carried 5-0. Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA. Susan Rosenberg, 6633 Thomas Avenue, acknowledged Chair Harms for the thorough letter to the editor explaining tax increment financing. She stated concerns about the empty storefronts on Penn Avenue and the potential that a pawn shop business may be looking at locating in the old Color Tile location. She requested that the HRA look at action regarding this area. HRA Meeting Minutes-2-March 16, 1998 Executive Director Prosser stated that Community Development Director Palmborg has been in contact with the property owner regarding possible redevelopment or cooperative effort to address improving the area. He stated that the new zoning ordinance related to pawn shop businesses would make it difficult to locate there. Chair Harms stated the HRA’s interest in seeing the Penn Avenue area redeveloped and encouraged staff’s continued efforts in that direction. Tom Burke, TOLD Development Company, stated that TOLD is ready to proceed to closing on Friday for Phase II of the Meridian Crossings office development project. He requested special consideration of the HRA to approve the following three legal documents required for the closing: x Consent to Assignment, Estoppel and Agreement x Assignment and Assumption Agreement x Amendment to Right of Entry Agreement He indicated that they were documents similar to those that were required at the closing for Phase I. Chair Harms stated that he had concerns about approving these agreements because the HRA had not been given them ahead of time to review. He indicated displeasure with TOLD for not bringing this to the HRA in a more timely manner. Executive Director Prosser suggested that the HRA could consider approval contingent upon the review and approval of HRA Attorney John Dean. M/Sandahl, S/Susag to approve and to authorize the HRA Chair and HRA Executive Director to execute the following documents regarding Phase II of the Meridian Crossings project: x Consent to Assignment, Estoppel and Agreement x Assignment and Assumption Agreement x Amendment to Right of Entry Agreement Subject to the following stipulation: 1.That HRA Attorney John Dean review the agreements and notify the HRA that they are acceptable for the HRA, that they are substantially similar to the documents which were prepared in connection with the Phase I closing, and that they do not have a negative impact on the HRA or the City. 2.That HRA Attorney John Dean recommends that the HRA Chair and Executive Director execute the agreements. Motion carried 5-0. Commissioner Sandahl stated dissatisfaction with the fact that TOLD did not present their request in a more timely manner. HRA Meeting Minutes-3-March 16, 1998 Chair Harms stated he would not sign the agreement unless all the HRA Members were satisfied upon receipt of the HRA Attorney’s review and recommendation. He requested the Commissioners to call him if they had any concerns or questions. Item #2PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 6820 PORTLAND AVENUE TO TWIN CITIES HABITAT FOR HUMANITY FOR SINGLE FAMILY HOME DEVELOPMENT. HRA LETTER NO. 16 Executive Director Prosser reviewed HRA Letter No. 16 regarding the proposed sale of 6820 Portland Avenue to Twin Cities Habitat for Humanity for a single family home development. Larry Wozniczka, 6744 Wentworth Avenue, questioned the source of write down, funding for the project, and what the purchase cost was for the HRA to acquire the property. Executive Director Prosser stated the purchase price was $55,000 and that the HRA is responsible for demolition. He stated the funding is from the Richfield Rediscovered Program. Mr. Wozniczka questioned the $20,000 second mortgage. Chair Harms explained that the buyer must execute a $20,000 second mortgage to the HRA to secure the land value. Commissioner Susag noted that previous Habitat for Humanity projects had been constructed in the community through this same program. M/Sandahl, S/Harms to close the public hearing. Motion carried 5-0. M/Sandahl, S/Susag that the following resolution be adopted, that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION NO. 660 RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6820 PORTLAND AVENUE TO TWIN CITIES HABITAT FOR HUMANITY IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT Motion carried 5-0. This resolution appears as HRA Resolution No. 660 in HRA Resolution Book No. 5. HRA Meeting Minutes-4-March 16, 1998 Item #3PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 250 WEST 78TH STREET TO CANDLEWOOD HOTEL CO. HRA LETTER NO. 17 Executive Director Prosser reviewed HRA Letter No. 17 regarding the proposed sale of the property located at 250 West 78th Street to Candlewood Hotel Company. He stated that as part of its development of the adjacent City owned, former Lampert Lumber property, Candlewood Hotel Co. will subsequently purchase approximately two-thirds of the CP railroad property from the HRA. He stated the HRA will retain the remainder of the CP property which will then be combined with that portion of the former Lampert property which is not being purchased by Candlewood. He indicated the new parcel is being marketed to the restaurant industry. He described the current site plan along with a graphic representing the progression of site configurations. Larry Wozniczka, 6744 Wentworth Avenue, stated concerns about the change in the site configuration and possible reduced revenue from the sale of the property. Executive Director Prosser reviewed the issues regarding the preferred site configuration and potential for a restaurant development. He indicated that the HRA would control the site and what may go there, which is a trade off for the risk of achieving or not achieving the same revenue. Mr. Wozniczka questioned the hotel site access. Executive Director Prosser stated shared parking and access agreements are required as part of the sale for both properties. Mr. Wozniczka stated his opinion that he would have preferred the land be kept as one parcel and sold as originally proposed. M/Sandahl, S/Helmberger to close the public hearing. Motion carried 5-0. M/Sandahl, 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. 661 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY AT 250 WEST 78TH STREET Motion carried 5-0. This resolution appears as HRA Resolution No. 661 in HRA Resolution Book No. 5. Item #4PUBLIC HEARING AND CONSIDERATION OF RESOLUTION HRA Meeting Minutes-5-March 16, 1998 AUTHORIZING PURCHASE OF 300 WEST 78TH STREET FROM CITY OF RICHFIELD. HRA LETTER NO. 18 Executive Director Prosser reviewed HRA Letter No. 18 regarding the proposed purchase by the HRA of property located at 300 West 78th Street from the City of Richfield. He stated that the purchase of the subject property and the subsequent joining of that property with the adjacent CP railroad property will result in the creation of a marketable commercial development site. 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. 662 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 300 WEST 78TH STREET IN THE ILN REDEVELOPMENT PROJECT AREA Motion carried 5-0. This resolution appears as HRA Resolution No. 662 in HRA Resolution Book No. 5. Item #5DISCUSSION AND REVIEW OF REMODELING ADVISOR SERVICES AND RECOMMENDATION TO INCREASE COMPENSATION. HRA LETTER NO. 19. Executive Director Prosser reviewed HRA Letter No.19 proposing that the Remodeling Advisor’s hourly rate for services be increased from $35 per hour to $40 per hour in 1998. He stated that the rate had last been adjusted two years ago. Commissioner Helmberger asked if these services are available for apartment properties. Community Development Director Palmborg stated that a proposal regarding apartments is scheduled for consideration by the HRA in April. Chair Harms asked about the evaluation of the Remodeling Advisor. Community Development Director Palmborg summarized the HRA Memorandum regarding the evaluation of the Remodeling Advisor services. Larry Wozniczka questioned the funding source for the Remodeling Advisor services. HRA Meeting Minutes-6-March 16, 1998 Community Development Director Palmborg stated it was funded from the HRA general fund. M/Sandahl, S/Helmberger to approve the increase in compensation for Remodeling Advisor services making the new rate $40 per hour. Motion carried 5-0. Item #6CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 6241 14TH AVENUE WITH CDBG FUNDS FOR NEW HOME PROGRAM, 6224 BLOOMINGTON AVENUE AND 7204 FIRST AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM. HRA LETTER NO. 20. Executive Director Prosser reviewed HRA Letter No. 20 regarding the proposed purchase of 6241-14th Avenue with CDBG funds for the New Home Program; and 6224 Bloomington Avenue and 7204 First Avenue under the Richfield Rediscovered Program. 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. 663 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6241-14TH AVENUE FOR THE NEW HOME PROGRAM, AND 6224 BLOOMINGTON AND 7204 FIRST AVENUES FOR THE RICHFIELD REDISCOVERED PROGRAM Motion carried 5-0. This resolution appears as HRA Resolution No. 663 in HRA Resolution Book No. 5. Item #7EXECUTIVE DIRECTOR REPORT The HRA had no further questions regarding the Executive Director’s report memorandum. Item #8CLAIMS AND PAYROLL The claims and payroll reports were not available for review, therefore the HRA did not take action on this item. HRA Meeting Minutes-7-March 16, 1998 ADJOURNMENT The meeting was adjourned by unanimous consent at 8:40 p.m. Date Approved: Thomas E. Harms Chair Thomas P. FerberJames D. Prosser City ClerkExecutive Director