01-19-99 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 19, 1999
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; Michael Sandahl and Russ
Susag.
HRA Members
Absent:Kristal Stokes.
Staff Present :James Prosser, Executive Director; Steven Devich, Acting City
Clerk; Bruce Palmborg, Community Development Director; and
Bruce Norquist, Housing & Redevelopment Manager.
APPROVAL OF MINUTES
M/Susag, S/Helmberger to approve the minutes of the Regular HRA Meeting of
December 21, 1998.
Motion carried 4-0.
HRA Meeting Minutes-2-January 19, 1999
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
Item #2ELECTION OF HRA OFFICERS FOR 1999. HRA LETTER NO. 1
M/Susag, S/Helmberger that Tom Harms be elected as Chair of the HRA for
1999.
Motion carried 4-0.
M/Susag, S/Sandahl that Joan Helmberger be elected as Vice-Chair of the HRA
for 1999.
Motion carried 4-0.
M/Helmberger, S/Harms that Michael Sandahl be elected as Secretary of the
HRA for 1999.
Motion carried 4-0.
Item #3DESIGNATION OF HRA ACTING EXECUTIVE DIRECTOR FOR 1999. HRA
LETTER NO. 2
M/Sandahl, S/Helmbergerthat Steven L. Devich, Administrative Services
Director, be designated as Acting Executive Director of the HRA for 1999.
Motion carried 4-0.
Item #4DESIGNATION OF HRA OFFICIAL NEWSPAPER FOR 1999. HRA LETTER
NO. 3
M/Susag, S/Helmbergerthat the Richfield Sun-Current be designated as the
official newspaper of the Richfield HRA for 1999.
Motion carried 4-0.
HRA Meeting Minutes-3-January 19, 1999
Item #5CONSIDERATION OF PROPOSAL TO CONTINUE COMMUNITY
APARTMENT PROGRAM FOR 1999. HRA LETTER NO. 4
Executive Director Prosser reviewed HRA Letter No. 4 regarding consideration
of proposal to continue Community Apartment Program for 1999.
Julianne Manship, Community Apartment Program, made a brief presentation
highlighting accomplishments of the program for 1998.
Jennifer Verbrugge, Public Safety, talked about programs and the team effort
involved in working with "Livable Communities" (focusing on problem apartment
properties).
Prudence Meyer, RAMA Board, spoke to the leadership and success of the
current program under Julianne’s guidance.
Julianne Manship stated the program’s major goals for 1999. Ms. Manship
reviewed five areas of strategic goals.
Commissioner Susag asked what percentage of rental units in the City are
represented by RAMA.
Ms. Manship responded that the participation varies per event depending upon
the event. She stated that the program reaches out to all apartment complexes in the
City.
Commissioner Helmberger asked if sized complexes participate in the program.
Ms. Manship responded that units as small as duplexes participate.
Chair Harms asked if the program would focus on upgrading some of the
properties in the City.
Ms. Manship described the “three L’s” grants for lighting, locks and landscape
improvements and an apartment remodeling program.
Housing and Redevelopment Manager Bruce Nordquist described a block of
grant funds available through the Livable Communities Act to improve complexes.
The Interfaith Action group has also provided some funds for apartment
communities.
M/Sandahl, S/Susag to approve the execution of a contract with Julianne
Manship for the Community Apartment Program beginning February 1, 1999 for 12
months.
HRA Meeting Minutes-4-January 19, 1999
Motion carried 4-0.
Item #6CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7315
THOMAS AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM. HRA
LETTER NO. 5
Executive Director Prosser reviewed HRA Letter No. 5 regarding consideration
of a resolution authorizing purchase of 7315 Thomas Avenue under the Richfield
Rediscovered Program.
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. 701
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 7315 THOMAS AVENUE
FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carried 4-0. This resolution appears as HRA Resolution No. 701 in HRA
Resolution Book No. 5.
Item #7DISCUSSION OF PLANNING PROCESS IN PENN AND SIXTY-SIXTH
STREET AREA. HRA LETTER NO. 6
Executive Director Prosser reviewed HRA Letter No. 6 regarding discussion of
planning process in the Penn and Sixty-Sixth Street area.
Kent Carlson, Ryan Companies, addressed the HRA regarding the exploration
and public discussion of potential redevelopment in the Penn and 66th Street area. He
stated that Ryan Companies would be back to the HRA to report on progress in the
spring.
The HRA received the report. No action was taken.
Item #8CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR
HRA Meeting Minutes-5-January 19, 1999
PRIVATE DEVELOPMENT WITH CSM PROPERTIES, INC. FOR
REDEVELOPMENT OF 7600-01 BLOCK OF LYNDALE AVENUE SOUTH.
HRA LETTER NO. 7
Executive Director Prosser reviewed HRA Letter No. 7 regarding consideration
of a resolution approving contract for private development with CSM Properties, Inc. for
redevelopment of 7600-01 block of Lyndale Avenue South. Mr. Prosser described the
major portions of the agreement including the “pay-as-you-go” Tax Increment Financing
assistance.
Commissioner Susag asked about the project timetable.
Murray Kornberg, CSM, stated that there is a total 150-day period to acquire
properties. Within 90 days, CSM would come back to the HRA with the finalized project
concept and “but-for” analysis so that the financing gap can be addressed among other
issues. Within 150 days, CSM will report on the status of property acquisition.
Community Development Director Bruce Palmborg stated that the HRA Letter
incorrectly describes the time period in Article 2.5 of the agreement as 60 days instead
of the correct period of 90 days.
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. 702
RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT
WITH CSM PROPERTIES, INC.
Motion carried 4-0. This resolution appears as HRA Resolution No. 702 in HRA
Resolution Book No. 5.
Item #9UPDATE ON STATUS OF PRECONDITIONS TO DEVELOPMENT OF
URBAN VILLAGE. HRA LETTER NO. 8
Executive Director Prosser introduced the topic and representatives of Richfield
State Agency.
Jan Susee, RSA, presented an update of the Urban Village project. He stated
that all preconditions have been met except that RSA was seeking an extension of 30
days on items “i” and “m”, the form and level of public assistance.
HRA Meeting Minutes-6-January 19, 1999
M/Helmberger, S/Sandahl to authorize the Executive Director to forward a letter
to Richfield State Agency which confirms the basis for completion of preconditions and
extend for 30 days the preconditions of “form and level of public assistance.”
Motion passed 4-0.
Item #10STATUS REPORT ON ACQUISITION OF PROPERTY FOR URBAN
VILLAGE DEVELOPMENT. HRA LETTER NO. 9
Jan Susee, RSA, stated that they fully support the concept of a mediation
process for the homes that remain to be acquired. He stated that one or two
homeowners seem headed to mediation and that in total six properties remain to be
acquired.
Mr. Susee stated that because of the timing of construction of the parking ramp,
which must begin in early March, it is necessary for RSA to request that the 90 day
“quick take” period be initiated as soon as possible.
Chair Harms explained the eminent domain process to the homeowners present.
Sandy Forsman, speaking on behalf of Bonnie Alema, addressed the HRA. Ms.
Forsman stated that Ms. Alema cannot deal with the issue.
Mr. Susee stated that an offer has been made to Ms. Alema. He also stated that
he had been contacted by an attorney who stated they were representing Ms. Alema.
Commissioner Sandahl and Chair Harms explained in detail the process of
setting fair values for the homes to be acquired.
Sandy Forsman stated that they are not anxious to move and don’t feel that they
have to follow the HRA’s timeframe.
James Vargo, 6630 Pleasant Avenue, said that he was very upset over this
taking. He stated that they are at an impasse with the bank because he cannot replace
his home and garage for the money he has been offered.
Grace Lund, 6721 Harriet Avenue, spoke to the unfairness of the process.
James Vargo, 6630 Pleasant Avenue, spoke again to the unfairness of the
process.
Chair Harms stated that he sees three options:
1.do nothing;
2.conditionally approve eminent domain; or
HRA Meeting Minutes-7-January 19, 1999
3.defer to another date.
M/Susag, S/Sandahl to initiate eminent domain proceedings effective February
1, 1999 with a stipulation that the developer meet with the owners of the following six
properties in either direct negotiations or mediation from now until February 1, 1999:
x
307 West 66th Street
x
6630 Pleasant Avenue
x
6640 Pleasant Avenue
x
6607 Grand Avenue
x
6615 Grand Avenue
x
6621 Grand Avenue
Motion passed 4-0.
The HRA directed staff to monitor this process and to make periodic reports
back to the HRA.
Executive Director Prosser stated that the action taken tonight would have to be
reviewed by the Attorney for the HRA to ensure its legality.
Item #11EXECUTIVE DIRECTOR REPORT
None.
Item #7CLAIMS AND PAYROLL
M/Susag, S/Helmberger that the following claims and payrolls be approved:
FIRSTAR BANK
HRA Checks: 20237-20372; 20471-20522$159,354.02
Section 8 Checks: 13199-13298$126,681.73
Motion carried 4-0.
ADJOURNMENT
HRA Meeting Minutes-8-January 19, 1999
The meeting was adjourned by unanimous consent at 8:30 p.m.
Date Approved:
Thomas E. Harms
Chair
Steven L. DevichJames D. Prosser
Acting City ClerkExecutive Director