08-17-98 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 17, 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; Michael Sandahl
and Russ Susag.
Staff Present :James Prosser, Executive Director; Steven Devich, Acting City
Clerk; Bruce Palmborg, Community Development Director; and
Corrine Thomson, City Attorney.
APPROVAL OF MINUTES
M/Susag, S/Helmberger to approve the minutes of the Regular HRA Meeting of
July 20, 1998
Motion carried 5-0.
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
HRA Meeting Minutes-2-August 17, 1998
Item #2PUBLIC HEARING AND CONSIDERATION OF RESOLUTION APPROVING
SALE OF CERTAIN LAND TO GRAMERCY PARK COOPERATIVE AT
LAKE SHORE DRIVE FOR GRAMERCY SENIOR HOUSING COOPERATIVE
PROJECT. HRA LETTER NO. 53
Executive Director Prosser reviewed HRA Letter No. 53 regarding consideration of
a resolution approving the sale of certain land to Gramercy Park Cooperative at Lake
Shore Drive for the Gramercy Senior Housing Cooperative Project.
Commissioner Susag asked about the Tax Increment Financing (TIF) assistance.
Executive Director Prosser responded with the TIF information.
Larry Wozniczka, 6744 Wentworth Avenue, asked if the alley was vacated.
Chair Harms responded that the alley does not need to be vacated because the
alley would still be used and continue to be a public easement.
Larry Wozniczka, 6744 Wentworth Avenue, asked when the interest begins on the
$3 million.
Community Development Director Palmborg responded that it would be
approximately two to three years in the future.
M/Susag, S/Helmberger to close the public hearing.
Motion carried 5-0.
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. 677
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY AT
NORTHWEST QUADRANT OF LAKE SHORE DRIVE AND LYNDALE AVENUE
(GRAMERCY SENIOR HOUSING COOPERATIVE PROJECT)
Motion carried 5-0. This resolution appears as HRA Resolution No. 677 in HRA
Resolution Book No. 5.
Item #3CONSIDERATION OF VARIOUS REDEVELOPMENT CONCEPTS FOR 7600
BLOCKS OF LYNDALE AVENUE. C.L. NO. 54
HRA Meeting Minutes-3-August 17, 1998
Executive Director Prosser reviewed HRA Letter No. 54 regarding consideration of
various redevelopment concepts for 7600 blocks of Lyndale Avenue.
Murray Kornberg, Vice President of CSM Corporation, presented the following
development option concepts for the 7600 block of Lyndale Avenue:
Option A - West Side Development Only
Includes a Marriot extended stay facility and some office retail on the west side of
Lyndale Avenue and also includes 32 townhomes west of Aldrich Avenue. The
east side of Lyndale is unaffected.
Option B - Commercial Redevelopment on west side of Lyndale with limited
commercial development on east side of Lyndale
Contains the same Marriot Suites and office retail but no townhomes on the west
side. The east side would feature office development and residential.
Option C - Commercial development on west side of Lyndale with senior
housing and office on east side of Lyndale
This is the original concept proposed to the HRA in January 1998. It provided for
congregate living accommodations on the east side of Lyndale and commercial
development on the west side.
Mr. Kornberg stated that he believes that Concept C is still the best option for the
area both from a market and financial feasibility perspective.
Commissioners asked why market rate apartment development would not work in
the area.
Mr. Kornberg stated that their analysis of the cost of construction versus the rent
necessary to make it work simply doesn’t work. He stated that market rate apartment
buildings are not being built aggressively anywhere in Minnesota.
Commissioner Sandahl asked what the TIF deficit in Option B was.
Community Development Director Palmborg responded that it would be at least
$500,000 but may be more than that. This is due to the lack of density.
Commissioner Sandahl stated that he was not in favor of adding more senior
housing.
Chair Harms asked if there was more that could be done to make the office retail
feasible in the area.
Mr. Kornberg responded that perhaps there was, however he still feels that housing
is the best option for the area. He felt that even with buying down leases for office, the
office option would not work in the long run.
Commissioner Susag asked if townhomes could be included in Option C.
HRA Meeting Minutes-4-August 17, 1998
Mr. Kornberg stated that it could and that 32 townhomes could be included on each
side of the project.
Christy Olson, Twin City Christian Homes addressed the HRA regarding their
proposal. She explained how the proposed 150 unit project would fit into the community
and address a community need.
Commissioner Helmberger asked if Richfield would have a larger than proportional
segment of seniors in our community than other surrounding communities.
Ms. Olson stated that other cities are also looking at such facilities. She stated
Bloomington is building a number of projects this year and Edina is heavily built.
Commissioner Helmberger asked if the housing project is exempt from property
taxes.
Ms. Olson stated that they do pay taxes.
Chair Harms asked if another developer would do the north-east corner, would
CSM still do the rest of the development minus congregate housing.
Mr. Kornberg responded that he was not sure.
Commissioner Susag stated that with consideration of including the townhomes he
would support Option C.
John Walsh, 7633 Garfield stated that he felt Option C would be a viable project if
the townhouse buffer was included.
Steven Knutson, 7626 Garfield, stated he was concerned about how long this
project was going to get stretched out.
Fred Ryan, 7633-39 Lyndale, stated he is interested in dressing up the existing
properties if they get a moratorium for the area.
Russ Walzer, Property owner on 7600 block of Lyndale Avenue, spoke to the issue
of displacing existing businesses. He also wants to put up new facades on the building if
they know how long they would be able to stay there.
Commissioner Sandahl stated that he does not support the senior housing
component. He would support this concept as a last resort at some later date. He is also
not opposed to using development funds to close the financial gap for a good project.
Commissioner Helmberger stated she supports senior housing.
Mayor Kirsch, 6725 Penn Avenue, stated that he understands that the neighbors
want a decision and spoke in support of development in the area.
HRA Meeting Minutes-5-August 17, 1998
Commissioner Sandahl asked how the townhouses would affect Option C.
Mr. Kornberg responded that it would add to the density but could work.
M/Harms, S/Stokes to direct staff to do the following for consideration of
redevelopment for the 7600 blocks of Lyndale Avenue:
1.To set up a 45 day period to survey other developers to see if they would be
interested in the northeast corner.
2.To survey neighbors on Aldrich and Garfield and ask them what type of
development they want.
3.To get the number for the townhouses to be added.
4.That a final vote by the HRA on this development to be taken in 60 days.
Motion carried 5-0.
Item #4CANCELLATION OF PUBLIC HEARING AUTHORIZING DISPOSITION OF
RESIDUAL PARCEL AT 76TH STREET AND PENN AVENUE.
HRA LETTER NO. 55
Executive Director Prosser reviewed HRA Letter No. 55 regarding canceling the
public hearing authorizing the disposition of a vacant parcel at the corner of 76th Street
and Penn Avenue. He stated cancellation of the public hearing is needed until the work
with Hennepin County and adjacent apartment owners is finalized.
M/Sandahl, S/Susag to cancel the public hearing authorizing disposition of residual
property at 76th Street and Penn Avenue.
Motion carried 5-0.
Item #5CONSIDERATION OF RESOLUTIONS APPROVING PROPOSED 1999
HRA BUDGET AND CERTIFYING 1999 TAX LEVY AND AUTHORIZING
REVISION OF 1998 HRA BUDGET; AND SETTING NOVEMBER 16, 1998
FOR PUBLIC BUDGET HEARING. HRA LETTER NO. 56
Executive Director Prosser reviewed HRA Letter No. 56 regarding consideration of
approval of proposed property tax levy for payable year 1999 for certification to Hennepin
County and setting date for optional public budget hearing for the 1998 Revised/1999
Proposed budget and tax levy.
M/Susag, S/Sandahl that the following HRA resolutions be adopted, that they be
spread in the HRA resolution book and that they be made part of these minutes:
HRA Meeting Minutes-6-August 17, 1998
HRA RESOLUTION NO. 678
RESOLUTION APPROVING PROPOSED 1999 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 1999 TAX LEVY
HRA RESOLUTION NO. 679
RESOLUTION AUTHORIZING REVISION OF THE 1998 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
Motion carried 5-0. These resolutions appear as HRA Resolution No.’s 678 and
679 in HRA Resolution Book No. 5.
Item #6 EXECUTIVE DIRECTOR REPORT
None.
Commissioner Helmberger asked if there was any accommodations made for local
contractors to bid on the projects.
Executive Director Prosser stated no.
Item #7CLAIMS AND PAYROLL
M/Stokes, S/Susag that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks: 12623-12725$116,772.85
HRA Checks: 19214-19243; 19394-19457$280,921.41
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:30 p.m.
HRA Meeting Minutes-7-August 17, 1998
Date Approved:
Thomas E. Harms
Chair
Steven L. DevichJames D. Prosser
Acting City ClerkExecutive Director