10-19-98 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
October 19, 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; Bruce Palmborg, Community
Development Director; Thomas Ferber, City Clerk; and John Dean,
City Attorney.
APPROVAL OF MINUTES
M/Susag, S/Helmberger to approve the minutes of the regular HRA Meeting of
September 21, 1998.
Motion carried 5-0.
Item #1OATH OF OFFICE TO HRA COMMISSIONER MIKE SANDAHL
City Clerk Ferber administered the oath of office to HRA Commissioner Mike
Sandahl commencing an appointment for a five year term.
HRA Meeting Minutes-2-October 19, 1998
Item #2OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT
ON THE AGENDA.
No one wished to address the HRA.
Item #3CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR
PRIVATE DEVELOPMENT WITH CSM PROPERTIES, INC.; INTERCHANGE
WEST. HRA LETTER NO. 60
Executive Director Prosser reviewed HRA Letter No. 60 regarding a proposed
contract for private development with CSM Properties, Inc. for the Interchange West Area.
Murray Kornberg, CSM Properties, Inc., reviewed a site plan drawing depicting a
mixed use office/hotel/housing/restaurant redevelopment concept for the area bounded by
Knox Avenue, 76th Street, Penn Avenue and 78th Street. He reviewed the status of
preliminary acquisition discussions with landowners in the area. He stated if the contract
is approved a residential specialist would be utilized to assist residents in the negotiation
and relocation process. He stated that the developer would strive to deal with the
individual circumstances as best they can. He stated negotiations continue with the major
commercial landowners and businesses but there is no agreement at this time.
HRA Attorney Dean reviewed the contract provisions and preconditions that must
be met for the development to go forward. He outlined some of the significant contract
timeframes as follows:
x
The redeveloper must complete a concept plan within 45 days.
x
Preconditions to acquisition must be completed with 60 days including the
determination of the level of public assistance necessary to facilitate the
development.
x
Within 120 days the developer must provide information on site assembly status
items.
Mr. Kornberg answered questions regarding the status of acquisition negotiations
with landowners, process, and relocation benefits. He reviewed the importance of timing
for the redevelopment including acquisition, infrastructure, and construction time.
Chairperson Harms stated that the HRA would hold a public hearing on the concept
plan and tax increment financing at the December 21 HRA meeting. He stated that
individual landowners would have better information by then as to their situation.
HRA Attorney Dean submitted and reviewed minor modifications to the contract
documents on pages 26, B-2, and E-3. The HRA accepted the changes.
HRA Meeting Minutes-3-October 19, 1998
M/Sandahl, S/Stokesthat 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. 682
RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT
WITH CSM PROPERTIES, INC.
Motion carried 5-0. This resolution appears as HRA Resolution No. 682 in HRA
Resolution Book No. 5.
Item #4CONSIDERATION OF PROSPECTIVE DEVELOPERS OF PROPERTY
BOUNDED BY 76TH AND 77TH STREETS BETWEEN ALDRICH AND
GARFIELD AVENUES. HRA LETTER NO. 61
Executive Director Prosser reviewed HRA Letter No. 61 regarding redevelopment
proposals for the area bounded by 76th Street and 77th Street between Aldrich Avenue
and Garfield Avenue.
Bob Boisclair, the Boisclair Corporation, developer of many housing projects in the
metropolitan area, evaluated the site and proposed a mixed unit development concept of
150 market rate apartment units and 26,000 sq. ft. of retail use on the two blocks from
Lyndale to Harriet.
Gary Dreyer, The TOLD Company, developer of Meridian Crossings, reviewed a
proposal for the block east of Lyndale Avenue consisting of mixed use development of
office and retail use; a 14,000 sq. ft. one story freestanding retail building on the south
half of the block and a three story office building of 44,400 sq. ft. on the north half of the
block. He responded to questions regarding traffic access points to the site.
Murray Kornberg, CSM Properties Inc., reviewed a proposal that envisions a
Marriott extended stay hotel of 98 units and 22,000 sq. ft. of retail and office space on the
west side of Lyndale Avenue; and 150 senior apartments and 27,000 sq. ft. of office on
the east side of Lyndale Avenue.
Discussion followed regarding how to distinguish between the proposals, whether
more senior housing is needed in the community, determination of the tax increment
financing requirements and gaps, and the desire to make a final decision to settle the
issue.
The HRA Commissioners ranked the proposals for the east side of Lyndale Avenue
as follows:
Commissioner Helmberger1. CSM2. Boisclair3. TOLD
HRA Meeting Minutes-4-October 19, 1998
Commissioner Susag1. CSM2. TOLD3. Boisclair
Commissioner Harms1. TOLD2. CSM3. Boisclair
Commissioner Stokes1. Boisclair
Commissioner Sandahl1. TOLD2. CSM3. Boisclair
Discussion followed regarding economics, timing, financial analysis, and TIF
requirements. It was the consensus of the HRA that the financial analysis be performed
so that the HRA can be in a position to choose a developer at the next HRA meeting.
Item #5PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF 7532 GIRARD AVENUE TO KARLA K.
DAGNAULT AND 7615 NICOLLET AVENUE TO MAHONEY
CONSTRUCTION FOR RESIDENTIAL DEVELOPMENT.
HRA LETTER NO. 59
Executive Director Prosser reviewed HRA Letter No. 62 regarding a proposed
resolution authorizing the sale of 7532 Girard Avenue to Karla K. Dagnault and 7615
Nicollet Avenue to Mahoney Construction for residential development.
Larry Wozniczka, 6744 Wentworth Avenue, questioned the land sale price for 7532
Girard Avenue.
Community Development Director Palmborg stated that the appraiser valued it at
$27,000.
Commissioner Helmberger noted that it was an irregularly shaped lot.
M/Sandahl, S/Helmberger to close the public hearing.
Motion carried 5-0.
M/Sandahl, 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:
HRA RESOLUTION NO. 683
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 7532 GIRARD AVENUE TO KARLA K. DAGNAULT
AND 7615 NICOLLET AVENUE TO MAHONEY CONSTRUCTION
Motion carried 5-0. This resolution appears as HRA Resolution No. 683 in HRA
Resolution Book No. 5.
Item #6PUBLIC HEARING AND CONSIDERATION OF RESOLUTION REGARDING
HRA Meeting Minutes-5-October 19, 1998
SALE OF 7520 PORTLAND AVENUE. HRA LETTER NO. 63
Executive Director Prosser reviewed HRA Letter No. regarding consideration of a
resolution to authorize the sale of HRA property located at 7520 Portland Avenue.
M/Sandahl, S/Helmberger to close the public hearing.
Motion carried 5-0.
M/Helmberger, 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. 684
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
7520 PORTLAND AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 684 in HRA
Resolution Book No. 5.
Item #7CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 6228
PLEASANT, 6833 PENN AND 6855 PENN AVENUES UNDER RICHFIELD
REDISCOVERED PROGRAM. HRA LETTER NO. 64
Executive Director Prosser reviewed HRA Letter No. 64 regarding a resolution to
authorize the purchase of 6228 Pleasant Avenue, 6833 Penn Avenue and 6855 Penn
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. 685
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6228
PLEASANT AVENUE, 6833 PENN AVENUE AND 6855 PENN AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 685 in HRA
Resolution Book No. 5.
Item #8CONSIDERATION OF RESOLUTION AUTHORIZING ISSUANCE OF
CERTIFICATE OF COMPLETION TO KEY LAND HOMES, INC. FOR 6921
HRA Meeting Minutes-6-October 19, 1998
12TH AVENUE; RICHFIELD REDISCOVERED. HRA LETTER NO. 65
Executive Director Prosser reviewed HRA Letter No. 65 regarding a resolution
authorizing issuance of a certificate of completion to Key Land Homes, Inc. for the
Richfield Rediscovered house at 6921 12th Avenue.
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. 686
RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATE OF COMPLETION FOR
RICHFIELD REDISCOVERED PROPERTY AT 6921-12TH AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 686 in HRA
Resolution Book No. 5.
Item #9CONSIDERATION OF RESOLUTION AUTHORIZING TEMPORARY
EASEMENT ON HRA-OWNED PROPERTY FOR GRAMERCY SENIOR
COOPERATIVE HOUSING PROJECT. HRA LETTER NO. 66
Executive Director Prosser reviewed HRA Letter No. 66 regarding a resolution to
authorize a temporary easement on HRA owned property for the Gramercy Senior
Cooperative Housing Project.
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. 687
RESOLUTION AUTHORIZING TEMPORARY EASEMENT
Motion carried 5-0. This resolution appears as HRA Resolution No. 687 in HRA
Resolution Book No. 5.
Item #10CONSIDERATION OF APPROVAL OF CONTRACT WITH HENNEPIN
COUNTY FOR $100,000 HOME FUNDS TO PURCHASE AND
REHABILITATE ONE HOME IN RICHFIELD IN COOPERATIVE WITH
CORNERSTONE ADVOCACY SERVICES. HRA LETTER NO. 67
Executive Director Prosser reviewed HRA Letter No. 67 regarding a proposed
contract with Hennepin County for $100,000 in HOME funds to purchase and rehabilitate
one home in Richfield in cooperation with Cornerstone Advocacy Services. He stated that
HRA Meeting Minutes-7-October 19, 1998
the site being considered is 6600 Oakland Avenue, previously the site of Hat Trick
Hockey.
M/Stokes, S/Helmberger to approve execution of the contract with Hennepin
County for $100,000 in HOME funds to purchase and rehabilitate one home in Richfield in
cooperation with Cornerstone Advocacy Services.
Motion carried 5-0.
Item #11CONSIDERATION OF RESOLUTION REGARDING PROPOSED APPROVAL
OF MODIFICATION TO RICHFIELD REDEVELOPMENT PROJECT AREA
REDEVELOPMENT PLAN AND INTERSTATE-LYNDALE-NICOLLET TAX
INCREMENT FINANCING PLAN. HRA LETTERS NO. 68
Executive Director Prosser reviewed HRA Letter No. 68 regarding the proposed
Modification to the Richfield Redevelopment Project Area Redevelopment Plan and
Interstate-Lyndale-Nicollet Tax Increment Financing Plan.
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. 688
RESOLUTION MODIFYING THE INTERSTATE-LYNDALE-NICOLLET (ILN) TAX
INCREMENT FINANCING DISTRICT WITHIN THE RICHFIELD REDEVELOPMENT
PROJECT AREA AND ADOPTING THE MODIFICATION TO THE TAX INCREMENT
FINANCING PLAN RELATED THERETO
Motion carried 5-0. This resolution appears as HRA Resolution No. 688 in HRA
Resolution Book No. 5.
Item #12CONSIDERATION OF POTENTIAL ELEMENTS WITH RYAN COMPANIES
TO REDEVELOP PROPERTY IN CEDAR AVENUE CORRIDOR (AIRPORT
MITIGATION AREA). HRA LETTER NO. 69
Executive Director Prosser reviewed HRA Letter No. 69 regarding discussion of
potential elements that should be considered for an agreement with the Ryan Companies
regarding potential redevelopment of property in the Cedar Avenue Corridor.
Commissioner Stokes stated concerns about the potential for miscommunication
and whether residents would interpret this action as meaning the airport mitigation
redevelopment is a “done deal”, when it has not been determined yet. She also asked if
this could preclude MAC from relocating hotels to this area.
HRA Meeting Minutes-8-October 19, 1998
Executive Director Prosser indicated it would be beneficial in planning ahead to
respond to the new development issues such as the new 66th Street/Highway 77
interchange MAC has proposed, interest in redevelopment near I-494 east of 12th
Avenue, and airport mitigation redevelopment issues including the potential of the
relocation of the hotels.
Commissioner Sandahl stated some people may misinterpret that this would mean
redevelopment, it is important that the HRA and City have realistic information to flesh out
airport mitigation alternatives and options of such a plan.
Chair Harms discussed the importance of criteria being developed and
demonstrated that will help the HRA determine feasibility of mitigation possibilities.
Executive Director Prosser indicated that a proposed Letter of Understanding
would be drafted by staff.
It was the consensus of the HRA that staff move forward with the process keeping
in mind the importance of communication regarding this action.
Item #13CONSIDERATION OF GRANTING UTILITY EASEMENT RUNNING IN
FAVOR OF CANDLEWOOD HOTEL COMPANY. HRA LETTER NO. 70
Executive Director Prosser reviewed HRA Letter No. 70 regarding consideration of
granting a utility easement across the western edge of the restaurant site in favor of
Candlewood Hotel Company.
Larry Wozniczka, 6744 Wentworth Avenue, stated concerns that the utility
easement would deter placement of a restaurant on the site and that no compensation is
being given for the easement.
Executive Director Prosser stated the easement would not be detrimental to
development of the restaurant site.
M/Sandahl, S/Stokes to approve a utility easement across the western edge of the
restaurant site in favor of Candlewood Hotel Company at 351 West 77th Street.
Motion carried 5-0.
Item #14EXECUTIVE DIRECTOR REPORT
No discussion.
HRA Meeting Minutes-9-October 19, 1998
Item #15CLAIMS AND PAYROLL
M/Sandahl, S/Stokes that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks: 12830-13002$118,796.45
HRA Checks: 19467-19486; 19560-19613$728,231.56
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 9:03 p.m.
Date Approved:
Thomas E. Harms
Chair
Thomas P. FerberJames D. Prosser
City ClerkExecutive Director