07-20-98 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
July 20, 1998
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; and Russ Susag.
HRA Members
Not Present:Michael Sandahl.
Staff Present :James Prosser, Executive Director; Thomas Ferber, City Clerk;
Bruce Palmborg, Community Development Director; Chris Regis,
Finance Manager; and John Dean, HRA Attorney.
APPROVAL OF MINUTES
M/Susag, S/Helmberger to approve the minutes of the Special Joint HRA/City
Council/Planning Commission/Community Services Commission Meeting of June 15, 1998
and the minutes of the regular HRA Meeting of June 15, 1998.
Motion carried 4-0.
HRA Meeting Minutes-2-July 20, 1998
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
Item #2CONSIDERATION OF AUTHORIZATION TO REMOVE EMERSON AVENUE
64TH TO 68TH STREETS FROM RICHFIELD LAKE AREA MASTER
PLANNING PROCESS. HRA LETTER NO. 42
Executive Director Prosser reviewed HRA Letter No. 42 recommending that
Emerson Avenue from 64th to 66th Streets be removed from the Richfield Lake Area
master planning process and that no redevelopment be initiated in this area.
M/Stokes, S/Helmberger to remove Emerson Avenue from 64th to 66th Streets from
the Richfield Lake Area Draft Master Plan and to not initiate redevelopment of the area.
Motion carried 4-0.
Item #3CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR
PRIVATE DEVELOPMENT BETWEEN HRA AND GRAMERCY PARK
COOPERATIVE AT LAKE SHORE DRIVE; GRAMERCY TIF DISTRICT.
HRA LETTER NO. 43
Executive Director Prosser reviewed HRA Letter No. 43 regarding a proposed
Contract for Private Development between the Housing and Redevelopment Authority and
Gramercy Park Cooperative at Lake Shore Drive. He stated Gramercy is proposing to
construct a 16 story, 218 unit senior cooperative housing building along with a 8,000
square foot space to be occupied by VFW Post 5555. He stated the project would be built
on the current VFW site and the adjacent commercial property to the east. He stated
Gramercy is requesting $3 million in tax increment financing (T.I.F.) assistance.
HRA Chair Harms stated he supported the project but had concerns that the
amount of T.I.F. assistance was disportionate to the community need for this project. He
questioned whether the project could be done with less T.I.F. assistance.
Sid Inman, Ehlers & Associates, reviewed a comparative analysis of the impact of
various levels of T.I.F. on equity share investment and monthly fees for cooperative
purchasers. He stated Ehlers had discussed these results with the marketing consultants
to assist in determining how these differences in equity and monthly rents might impact a
purchase decision. He indicated due to the lack of historical data they were unable to
determine the impact of these charts. He stated they did indicate that small amounts of
HRA Meeting Minutes-3-July 20, 1998
rent differences have a major impact of these charts. He stated they did indicate that
small amounts of rent differences have a major impact on seniors’ decisions where to rent
and they felt it was reasonable to assume the same impact with cooperatives.
Michael W. Conlan, President, Gramercy Corporation, described how this was not
the usual type of cooperative project which normally would mean a three-story wood frame
building. He stated that land acquisition along with the high rise building with parking
structure on an urban site is much more expensive than building on raw land in areas like
Inver Grove Heights. He stated this was about a $38 million project. He stated the
increased costs amounted to about 30% more ($10.9 million) than a project in the outer
suburbs. He indicated the request for $3 million in T.I.F. assistance amounted to about
28% of those additional costs. He discussed the issue of maintaining the affordability for
purchasers and maximizing the number of Richfield residents who will purchase a unit in
the building. He indicated that the lender will not increase the loan and that 90% of the
units must be pre-sold. He indicated that the project could not be built without the T.I.F.
assistance.
Chair Harms stated the HRA desired to be judicious in using T.I.F. He asked if
Gramercy would abandon the project if $3 million in T.I.F. was not provided and whether
the project could proceed with less in T.I.F. assistance.
Mr. Conlan stated that Gramercy would not build the project without the requested
level of T.I.F. He stated Gramercy had been consistent with this number over the years
and that because of financing requirements and the impact on purchasers equity
investments, anything less would mean Gramercy would not build the project.
Chair Harms stated concern that Gramercy may have promised potential
purchasers a price level based on the T.I.F.
Mr. Conlan stated that potential purchasers were told the project was dependent on
obtaining T.I.F. assistance and that Gramercy was consistent from the beginning in asking
for this level of T.I.F.
Commissioner Stokes asked questions regarding the F.H.A. approval.
Mr. Conlan reviewed pre-sale requirements and deadlines.
Chair Harms stated his frustration in determining from the information available
whether this was the right amount of T.I.F. assistance.
Mr. Conlan stated that 30 - 40% of the market would be lost if costs increase and
discussed the timeline and presale issues.
Mr. Inman indicated that Gramercy had been consistent in their request for $3
million in T.I.F. assistance. He stated he did not know of any market data that shows the
impact of the increased equity for the purchasers.
HRA Meeting Minutes-4-July 20, 1998
Commissioner Susag stated he was satisfied with the information from Mr. Inman.
He also indicated he talked to a couple of people who had explored purchasing at
Gramercy.
Commissioner Helmberger stated that even at the current costs some seniors felt
the cost was too high.
M/Susag, 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. 671
RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH
GRAMERCY PARK COOPERATIVE OF RICHFIELD
Motion carried 3-1. (Harms opposed) This resolution appears as HRA Resolution
No. 671 in HRA Resolution Book No. 5.
Item #4CONSIDERATION OF RESOLUTION AUTHORIZING CONDEMNATION
AND QUICK TAKE FOR SIX, REAL PROPERTY INTERESTS; GRAMERCY
PARK COOPERATIVE AT LAKE SHORE DRIVE. HRA LETTER NO. 44
Executive Director Prosser reviewed HRA Letter No. 44 regarding acquiring six real
property interests related to the Gramercy Park Cooperative at Lake Shore Drive.
Jean Davis Danielson, 6639 Lake Shore Drive, stated concern about the impact of
the temporary construction easement over the 10 foot public right-of-way between the
VFW property and her home. She stated there were 31 trees on this property that served
as a buffer and she did not want to see the trees cut down.
Mr. Conlan stated it was not their intent to take down the trees. He indicated it was
only to have space for construction mobilization.
Chair Harms suggested that part of Lake Shore Drive could possibly be used for
mobilization and that the HRA did not want to see the trees cut down.
HRA Attorney John Dean indicated there were provisions in the contract regarding
protection of public right-of-way and that the trees were on public right-of-way.
Chair Harms explained he would support this item. He indicated he had voted in
opposition to the previous item only because he felt he had inadequate information to
determine whether the $3 million T.I.F. assistance was the correct amount for this project.
HRA Meeting Minutes-5-July 20, 1998
M/Susag, S/Helmberger that the following HRA resolution be adopted, that it be
spread in the HRA resolution book, that it be made part of these minutes; and, that staff
work with the developer to maximize the protection and saving of the existing trees:
HRA RESOLUTION NO. 672
RESOLUTION AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTY
Chair Harms suggested a friendly amendment to the motion: that staff work with the
developer to maximize the protection and saving of the existing trees.
The amendment was accepted by unanimous consent and incorporated into the
motion as shown above.
Motion carried 4-0. This resolution appears as HRA Resolution No. 672 in HRA
Resolution Book No. 5.
Item #5CONSIDERATION OF STIPULATION OF SETTLEMENT FOR 6724
LYNDALE AVENUE; GRAMERCY PARK COOPERATIVE AT LAKE SHORE
DRIVE. HRA LETTER NO. 45
Executive Director Prosser reviewed HRA Letter No. 45 regarding consideration of
the proposed Stipulation of Settlement for 6724 Lyndale Avenue related to the Gramercy
Park Cooperative at Lake Shore Drive.
M/Helmberger, S/Susag that the HRA approve the Stipulation of Settlement, Parcel
1, 6724 Lyndale Avenue and authorize the Chair and Executive Director to execute same
in substantially the form as that attached to HRA Letter No. 45.
Motion carried 4-0.
Item #6CONSIDERATION OF SELECTION OF DEVELOPER AND
AUTHORIZATION TO NEGOTIATE AGREEMENTS FOR 6901 PENN
AVENUE DEVELOPMENT SITE. HRA LETTER NO. 46
Executive Director Prosser reviewed HRA Letter No. 46 recommended the
selection of Alan Chazin Homes as the developer for vacant land in the 6901 block of
Penn Avenue.
CommissionerSusag asked questions regarding the configuration of the “dry”
stormwater pond, maintenance, and liability issues.
HRA Meeting Minutes-6-July 20, 1998
Community Development Director Palmborg stated that two acre feet of stormwater
ponding area was required. He noted that the developers had responded in a different
manner to this requirement. He stated the other developer indicated a deeper smaller
coverage pond area. He stated that the developers’ agreement would address the issues
of maintenance. He stated the Chazin proposal with a shallower ponding area with sloped
sides may be safer.
HRA Attorney Dean discussed maintenance and liability issues as they relate to
ownership.
Chair Harms stated the design was important for the future maintenance of the
pond.
Alan Chazin, Alan Chazin Homes, reviewed the configuration of the proposed
stormwater pond and town home project. He stated that there will be a homeowners
association and that if done right the pond area should be an attractive part of the project.
He stated he is working with staff on the maintenance and liability issues.
Larry Wozniczka, 6744 Wentworth Avenue, noted the City sale of the property to
the HRA for one $1 and that Chazin is proposing to pay $80,000 for the land. He asked
about reimbursement to the storm sewer fund for the original cost of acquisition of the
properties.
Executive Director Prosser indicated that the design costs will have to be
determined for designation of credit to stormwater costs.
M/Helmberger, S/Stokes to select Alan Chazin Homes as the developer for vacant
land in the 6901 block of Penn Avenue and direct staff to negotiate the appropriate
agreements.
Motion carried 4-0.
Item #7CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF
CERTIFICATE OF COMPLETION FOR MERIDIAN CROSSINGS, PHASE I.
HRA LETTER NO. 47
Executive Director Prosser reviewed HRA Letter No. 47 regarding issuance of a
certificate of Completion for Meridian Crossings, Phase I.
M/Susag, 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. 673
HRA Meeting Minutes-7-July 20, 1998
RESOLUTION AUTHORIZING EXECUTION OF A CERTIFICATE OF COMPLETION FOR
MERIDIAN CROSSINGS, PHASE I
Motion carried 4-0. This resolution appears as HRA Resolution No. 673 in HRA
Resolution Book No. 68.
Item #8CONSIDERATION OF ACKNOWLEDGMENT AND CONSENT TO
TRANSFER PROPERTY FROM MERIDIAN PROPERTIES REAL ESTATE
DEVELOPMENT L.L.C., D/B/A TOLD DEVELOPMENT COMPANY TO THE
STATE TEACHERS RETIREMENT SYSTEM OF OHIO; MERIDIAN
CROSSINGS OFFICE REDEVELOPMENT PROJECT, PHASE I.
HRA LETTER NO. 48
HRA Attorney John Dean reviewed and answered questions regarding approval of
documents regarding the proposed sale of Meridian Crossings, Phase I, by Meridian
Properties Real Estate Development L.L.C., d/b/a TOLD Development Company (TOLD)
to The State Teachers Retirement System of Ohio.
M/Susag, S/Stokes to approve the following actions regarding the transfer of
property from Meridian Properties Real Estate Development L.L.C., d/b/a TOLD
Development Company to The State Teachers Retirement System of Ohio, Meridian
Crossings Office Redevelopment Project, Phase I:
1.Approve the Consent to Assignment;
2.Approve the Certification And Estoppel Certificate;
3.Consent to the General Warranty Assignment of Project Contracts and
Assumption Agreement; and
4.Authorize the Chairperson and Executive Director to take any and all actions
necessary to execute the agreements in order to carry out the implementation of
the actions requested by TOLD.
Motion carried 4-0.
Item #9CONTINUATION OF PUBLIC HEARING AND CONSIDERATION OF
RESOLUTION AUTHORIZING ACQUISITION AND DISPOSITION OF
RESIDUAL PARCEL AT 76TH STREET AND PENN AVENUE. HRA LETTER
NO. 49
HRA Meeting Minutes-8-July 20, 1998
Executive Director Prosser reviewed HRA Letter No. 49 recommending
continuation of the public hearing and consideration of a resolution authorizing the
acquisition and disposition of the residual parcel located at 76th Street and Penn Avenue.
The HRA continued the public hearing and consideration of this issue to the August
17, 1998 HRA meeting by unanimous consent.
Item #10CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF
CONTRACT WITH HENNEPIN TECHNICAL COLLEGE TO INITIATE 1998-
99 NEW HOME PROJECT AT 6241-14TH AVENUE. HRA LETTER NO. 50
Executive Director Prosser reviewed HRA Letter No. 50 regarding a proposed
contract with Hennepin Technical College to initiate a 1998-1999 New Home Project at
6241-14th Avenue.
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. 674
RESOLUTION AUTHORIZING EXECUTION OF A CONTRACT WITH
HENNEPIN TECHNICAL COLLEGE (HTC) FOR DEVELOPMENT
OF 6241-14TH AVENUE
Motion carried 4-0. This resolution appears as HRA Resolution No. 674 in HRA
Resolution Book No. 5.
Item #11CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 6820
RUSSELL AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM.
HRA LETTER NO. 51
Executive Director Prosser reviewed HRA Letter No. 51 regarding the proposed
purchase of 6820 Russell Avenue under the Richfield Rediscovered Program.
M/Susag, S/Helmberger 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. 675
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6820 RUSSELL AVENUE
FOR THE RICHFIELD REDISCOVERED PROGRAM
HRA Meeting Minutes-9-July 20, 1998
Motion carried 4-0. This resolution appears as HRA Resolution No. 675 in HRA
Resolution Book No. 5.
Item #12CONSIDERATION OF RESOLUTION AFFIRMING MUNICIPAL TORT
LIABILITY LIMITS ESTABLISHED BY MINNESOTA STATUTES 466.04.
HRA LETTER NO. 52
Executive Director Prosser reviewed HRA Letter No. 52 regarding consideration of
a resolution affirming municipal tort liability limits established by Minnesota Statutes
466.04.
M/Stokes, 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. 676
RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY
MINNESOTA STATUTES 466.04
Motion carried 4-0. This resolution appears as HRA Resolution No. 676 in HRA
Resolution Book No. 5.
Item #13EXECUTIVE DIRECTOR REPORT
Executive Director Prosser indicated that the HRA Comprehensive Annual
Financial Report (CAFR) had been provided to the HRA Commissioners. He stated that
the HRA financial information (in a summary format) was contained in the City CAFR
presented to the City Council in June. He stated the HRA CAFR is a more detailed
presentation of the same data.
He suggested that the HRA review this information for a month and forward any
questions to staff or the auditors, then officially accept the report at the August regular
HRA meeting if they wish to do so.
Item #14CLAIMS AND PAYROLL
M/Susag, S/Stokes that the following claims and payrolls be approved:
FIRSTAR BANK
HRA Meeting Minutes-10-July 20, 1998
Section 8 Checks: 12520-12622$115,676.18
HRA Checks: 18986-19213; 19251-19327$387,476.17
Motion carried 4-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:20 p.m.
Date Approved:
Thomas E. Harms
Chair
Thomas P. FerberJames D. Prosser
City ClerkExecutive Director