11-16-98 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
November 16, 1998
CALL TO ORDER
The meeting was called to order by Chair Pro Tempore Helmberger at 7:33 p.m.
ROLL CALL
HRA Members
Present:Joan Helmberger; Kristal Stokes; Michael Sandahl and Russ Susag.
HRA Members
Not Present:Thomas Harms
Staff Present :James Prosser, Executive Director; Steven Devich, Acting City
Clerk; Bruce Palmborg, Community Development Director; and
Bruce Nordquist, Housing & Redevelopment Manager.
APPROVAL OF MINUTES
M/Sandahl, S/Stokes to approve the minutes of the HRA Meeting of October 19,
1998.
Motion carried 4-0.
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
HRA Meeting Minutes-2-November 16, 1998
Noone wished to address the HRA.
Item #2CONSIDERATION OF ANALYSIS OF CONCEPTS FOR PRIVATE
REDEVELOPMENT OF LYNDALE AVENUE SOUTH. HRA LETTER NO. 72
Executive Director Prosser reviewed HRA Letter No. 72 regarding consideration of
analysis of concepts for private redevelopment of Lyndale Avenue South.
Community Development Director Palmborg provided the HRA with an analysis of
the two proposed projects for the Lyndale Avenue South Area between 76th and 77th
Streets. The two developers submitting plans for the project area were CSM and TOLD.
Gary Dreher, TOLD Development, addressed the HRA with recent revisions to their
plan and the HRA letter prepared by staff. He described TOLD’s project concept which
includes the east side of Lyndale Avenue to consist of a 14,000 sq. ft. single user retail
building on the southern half of the block; a three story, 44,000 sq. ft. office building to its
north; and would be anchored by a large Walgreens store. Mr. Dreher stated that TOLD
was not asked to look at the west side of Lyndale Avenue.
HRA Commissioner Susag asked Mr. Dreher why he referenced the fact that he
wasn’t asked to look at the west side of Lyndale Avenue, when his initial proposal in
September also included only the east side of Lyndale Avenue.
Mr. Dreher responded that staff had talked only with him about the interest of TOLD
in the east side of Lyndale Avenue.
Chair Pro Tempore Helmberger asked if CSM stated previously that they would
develop the west side without the east side of Lyndale.
Murray Kornberg, Vice President of CSM Corporation, stated that CSM has always
seen this project area as both sides of the street. He stated that they felt strongly about
developing both sides of the street.
Commissioner Susag asked if CSM thought their proposal for the west side was
incompatible with TOLD’s project on the east side.
Mr. Kornberg responded that CSM does not want to bifurcate the project.
Executive Director Prosser stated that while the staff felt that any combination of
the two proposals could be viable, it would be more challenging from a financial
perspective to blend the two developments together.
M/Sandahl, S/Stokes to approve the CSM development proposal on both sides of
Lyndale Avenue with the following provisions:
HRA Meeting Minutes-3-November 16, 1998
1.The homeowners on the east side of Garfield Avenue should be given the
choice of either remaining or having their property acquired by the developer.
2.Explore the necessity of improvements to Garfield Avenue to accommodate
traffic growth.
3.The development shall not include access onto Aldrich Avenue.
4.The project shall not include development on the west side of Aldrich Avenue.
5.The developer should work with staff to eliminate or improve some of the design
characteristics, which are inconsistent with the Lyndale Gateway Plan.
6.Staff shall work with the developer to identify sources for the necessary gap
financing.
Community Development Director Palmborg stated that #1 of the conditions of the
motion be modified to say “homeowners on the east side of Garfield Avenue”.
Motion carried 4-0 with the modified condition #1.
Commissioner Sandahl stated that while he might desire some better pieces of the
overall CSM Development for the area, he feels that we need to either proceed now or tell
the neighbors we’re not going to develop the area. He stated he feels CSM is the best
total project available for the area.
Chair Pro Tempore Helmberger asked that the building facades be attractively
designed.
The HRA stated that the neighbors on the east side of Garfield Avenue would be
given the option to be bought out if they find the new development not to their liking.
There was a question about the timing of the project and the developer’s
agreement.
Executive Director Prosser stated that the developer’s agreement should be ready
within 60 days. He also asked the neighbors to inform staff or the HRA about the timing
concerns they may have for purchasing their homes so that those issues can be
considered.
Item #3CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR
PRIVATE REDEVELOPMENT WITH RICHFIELD STATE AGENCY, INC.;
URBAN VILLAGE. HRA LETTER NO. 73
Executive Director Prosser reviewed HRA Letter No. 73 regarding consideration of
a resolution approving contract for private redevelopment with Richfield State Agency
(RSA) Inc., Urban Village.
HRA Meeting Minutes-4-November 16, 1998
Jan Susee, Richfield State Agency, presented a brief summary and update of the
Urban Village proposal.
Commissioner Sandahl stated that he has received many positive comments about
the project.
Commissioner Susag stated that he got two calls regarding the project, one
regarding traffic which appears to be resolved, and the other regarding McDonalds. Mr.
Susag addressed the modifications to McDonalds. He asked that artist renderings be
done for the whole block from both the Lyndale Avenue and 66th Street perspectives.
Grace Lund, 6721 Harriet Avenue, stated a concern with the McDonalds and traffic
down her alley. She also stated that she was opposed to tax increment financing for this
project. She questioned who would pay to move the brick house and for the
improvements to the bank.
Jan Susee stated that the bank would pay for moving of a brick house and
improvements to the bank building.
Commissioner Susag briefly explained the tax increment financing program.
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. 689
APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH
RICHFIELD STATE AGENCY, INC. (RSA)
Motion carried 4-0. This resolution appears as HRA Resolution No. 689 in HRA
Resolution Book No. 5.
Item #4CONSIDERATION OF RESOLUTION REGARDING APPROVAL OF
MODIFICATION TO REDEVELOPMENT PLAN FOR RICHFIELD
REDEVELOPMENT PROJECT AREA; ESTABLISHMENT OF URBAN
VILLAGE TAX INCREMENT FINANCING DISTRICT; AND ADOPTION OF
URBAN VILLAGE TAX INCREMENT FINANCING PLAN RELATED
THERETO. HRA LETTER NO. 74
Executive Director Prosser reviewed HRA Letter No. 74 regarding consideration of
a resolution regarding approval of a Modification to the Redevelopment Plan for the
Richfield Redevelopment Project Area; establishing of the Urban Village Tax Increment
Financing District; and adoption of the Urban Village Tax Increment Financing Plan
related thereto.
HRA Meeting Minutes-5-November 16, 1998
Commissioner Sandahl asked Mark Ruff, Ehlers/Public Corporation, to explain the
line item “Housing Trust Fund” from the plan.
Mark Ruff, Ehlers/Public Corporation, responded that funds from that line item
could be used for other housing projects in the City. He stated that use of those funds
would not affect the financial viability of the project.
Larry Wozniczka, 6744 Wentworth Avenue, asked if the tax increment financing
approved for the project tonight would decertify the Richfield Bank & Trust and Medical
Clinic portions of the plan and if the HRA understood that.
HRA Commissioners stated that they fully understood this tax increment financing
plan.
Commissioner Susag responded that if this portion is decertified the City would
realize the tax benefit of this portion of the original tax increment financing in 1999 instead
of 2001, before the expiration of the district.
Larry Wozniczka, 6744 Wentworth Avenue, stated that while he liked the project he
feels that the developer should bear a portion of the additional cost of the City services
the project will require.
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. 690
RESOLUTION APPROVING THE MODIFIED REDEVELOPMENT PLAN FOR THE
RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING THE TAX
INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT
FINANCING DISTRICT; REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT
A PUBLIC HEARING THEREON; AND RECOMMENDING APPROVAL OF THE PLANS
Motion carried 4-0. This resolution appears as HRA Resolution No. 690 in HRA
Resolution Book No. 5.
Item #5PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF 6820 RUSSELL AVENUE TO THOMAS J. MAUER
CONSTRUCTION, INC. FOR RESIDENTIAL DEVELOPMENT
HRA LETTER NO. 75
Executive Director Prosser reviewed HRA Letter No. 75 regarding authorization to
sell 6820 Russell Avenue to Thomas J. Mauer Construction, Inc. for residential
development.
M/Susag, S/Sandahl to close the public hearing.
Motion carried 4-0.
HRA Meeting Minutes-6-November 16, 1998
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. 691
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6820
RUSSELL AVENUE TO THOMAS J. MAUER CONSTRUCTION, INC.
Motion carried 4-0. This resolution appears as HRA Resolution No. 691 in HRA
Resolution Book No. 5.
Item #6CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7529
HUMBOLDT AVENUE AND ADJACENT PARCEL UNDER RICHFIELD
REDISCOVERED PROGRAM. HRA LETTER NO. 76
Executive Director Prosser reviewed HRA Letter No. 76 regarding a resolution
authorizing the purchase of 7529 Humboldt Avenue and an adjacent parcel under
Richfield Rediscovered Program.
Larry Wozniczka, 6744 Wentworth Avenue, asked whom the land was being
bought from and if it will be given to adjacent property owners at no cost.
Community Development Director Palmborg responded that the land would be sold
to the adjacent property owners.
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. 692
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7529
HUMBOLDT AVENUE FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carried 4-0. This resolution appears as HRA Resolution No. 692 in HRA
Resolution Book No. 5.
Item #7CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7133
LYNDALE AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM
HRA LETTER NO. 77
HRA Meeting Minutes-7-November 16, 1998
Executive Director Prosser reviewed HRA Letter No. 77 regarding adopting a
resolution authorizing the purchase of 7133 Lyndale 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. 693
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7133
LYNDALE AVENUE FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carried 4-0. This resolution appears as HRA Resolution No. 693 in HRA
Resolution Book No. 5.
Item #8CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF
CANDLEWOOD HOTEL ADDITION PLAT. HRA LETTER NO. 78
Executive Director Prosser reviewed HRA Letter No. 78 regarding authorization to
execute the Candlewood Hotel Addition plat.
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. 694
RESOLUTION AUTHORIZING EXECUTION OF
CANDLEWOOD HOTEL ADDITION PLAT
Motion carried 4-0. This resolution appears as HRA Resolution No. 694 in HRA
Resolution Book No. 5.
Item #9PUBLIC HEARING AND CONSIDERATION OF RESOLUTION ADOPTING
1999 HRA BUDGET AND CERTIFYING 1999 TAX LEVY.
HRA LETTER NO. 79
Executive Director Prosser reviewed HRA Letter No. 79 regarding the 1999 HRA
proposed property tax levy and 1999 HRA budget.
Larry Wozniczka, 6744 Wentworth Avenue, stated concerns regarding continuation
of Tax Increment Financing projects, consultant costs, airport costs, and certain
continuing projects. He stated that he wanted the HRA to improve the City’s real tax base.
HRA Meeting Minutes-8-November 16, 1998
M/Sandahl, S/Susag to close the public hearing.
Motion carried 4-0.
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. 695
RESOLUTION ADOPTING 1999 HOUSING AND REDEVELOPMENT AUTHORITY
BUDGET AND CERTIFYING THE 1999 TAX LEVY
Motion carried 4-0. This resolution appears as HRA Resolution No. 695 in HRA
Resolution Book No. 5.
Commissioner Sandahl stated that he has an ongoing concern regarding the HRA
allowing individuals to give testimony.
Item #10 EXECUTIVE DIRECTOR REPORT
None.
Item #11CLAIMS AND PAYROLL
M/Sandahl, S/Stokes that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks 13003-13101$121,907.77
HRA Checks: 19488-20215: 20251-20309$398,379.17
Motion carried 4-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:50 p.m.
HRA Meeting Minutes-9-November 16, 1998
Date Approved:
Joan Helmberger
Chair Pro Tempore
Steven L. DevichJames D. Prosser
Acting City ClerkExecutive Director