05-17-99 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
May 17, 1999
CALL TO ORDER
The meeting was called to order by Vice Chair Helmberger at 7:00 p.m.
ROLL CALL
HRA Members
Present:Joan Helmberger, Vice Chair; Kristal Stokes; Michael Sandahl; and
Russ Susag.
HRA Members
Not Present:Thomas Harms.
Chair Harms was unable to attend this meeting. Vice Chair Helmberger served as
Chair.
Community Development Director Palmborg served as the Acting Executive
Director for this meeting.
StaffPresent :Bruce Palmborg, Acting Executive Director; Thomas Ferber, City
Clerk; and John Dean, City Attorney.
APPROVAL OF MINUTES
M/Sandahl, S/Susag to approve the minutes of the Regular HRA Meeting of April
19, 1999.
Motion carried 4-0.
HRA Meeting Minutes-2-May 17, 1999
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
Item #2CONSIDERATION OF RESOLUTION REGARDING APPROVAL OF
MODIFICATION TO REDEVELOPMENT PLAN FOR RICHFIELD
REDEVELOPMENT PROJECT AREA; AND ESTABLISHMENT OF
INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT
FINANCING DISTRICT AND TAX INCREMENT FINANCING PLAN.
HRA LETTER NO. 24
Acting Executive Director Palmborg reviewed HRA Letter No. 24 regarding a
proposedresolution which would do the following:
x
Approve a modification to the Richfield Redevelopment Project Area
Redevelopment Plan;
x
Establish the Interchange West and Lyndale Gateway Tax Increment Financing
District;
x
Approve the Interchange West and Lyndale Gateway Tax Increment Financing
Plan; and
x
Request the City Council to hold a public hearing and approve the modified
Redevelopment Plan and new Tax Increment Financing Plans.
Larry Wozniczka, 6744 Wentworth Avenue, questioned why 7608 Pillsbury Avenue
was included in the Richfield Redevelopment Project Area by itself and why the whole
block was not also included.
Acting Executive Director Palmborg stated that a willing seller had approached the
City to purchase 7608 Pillsbury Avenue and the purchase was approved due to the
possibility of redevelopment if the City garage is relocated or expanded. He stated the
modifications to the Richfield Redevelopment Project area were to expand the boundary
so that it corresponds to the redevelopment planning areas within the City.
Commissioner Sandahl asked about the boundaries of the Lyndale gateway TIF
District.
Acting Executive Director Palmborg stated the boundaries are the alley east of
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Garfield Avenue and Aldrich Avenue, between 76 Street and 77 Street. He stated that
the east side of Garfield Avenue was included in the TIF District to allow for development
to occur if the majority of homeowners in that area demonstrate a preference to sell their
homes. Commission Sandahl suggested a deadline for that determination. Mr. Palmborg
stated it should be determined by the June HRA meeting.
Commissioner Susag asked what the next step would be in the process after HRA
approval of the resolution.
HRA Meeting Minutes-3-May 17, 1999
Acting Executive Director Palmborg stated that the City Council will conduct a public
hearing on the plans on June 14.
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. 710
RESOLUTION MODIFYING THE RICHFIELD REVELOPMENT PROJECT AREA AND
ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN RELATING
THERETO; AND ESTABLISHING THE INTERCHANGE WEST AND LYNDALE
GATEWAY TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING THE
RELATED TAX INCREMENT FINANCING PLAN
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 710 in
HRA Resolution Book No. 6.
Item #3CONSIDERATION OF REQUEST FROM CSM PROPERTIES TO AMEND
THE CONTRACT FOR PRIVATE DEVELOPMENT FOR INTERCHANGE
WEST AREA. HRA LETTER NO. 25
Acting Executive Director Palmborg reviewed HRA Letter No. 25 regarding a
request from CSM Properties, Inc. to amend the Contract for Private Development for the
Interchange West area to allow the project to be completed in two phases. He stated the
first phase would be the residential portion of the project and the second phase would be
the commercial portion.
Murray Kornberg, Vice President of CSM Properties, Inc., discussed the status of
site assembly activities indicating the following:
Residential Properties:61 of 68 signed purchase agreements
5 verbal agreements
2 remain without agreement
Commercial Properties:Negotiations continue and issues are more complex
6 of 15 properties have agreement on price and basic terms
Mr. Kornberg stated that because acquisition of the residential properties has
proceeded faster that the acquisition of the commercial property, CSM is requesting that
the HRA authorize staff to prepare an amendment to the contract for development to
provide for the commencement of condemnation on the existing residential property
separate from the ahead of condemnation of the existing commercial property. He stated
CSM continue to remain hopeful that we will not require condemnation on any property in
the project area, but such an amendment would recognize the differences in timing
between the two types of acquisition and development activities. He indicated in the future
if CSM were to request condemnation, such an amendment could also facilitate an earlier
commencement to portions of the project if required.
HRA Meeting Minutes-4-May 17, 1999
Larry Wozniczka, 6744 Wentworth Avenue, stated it was not clear what action was
being requested of the HRA.
Vice Chair Helmberger read the recommended motion.
Mr. Wozniczka stated concern that the residential portion of the project would be
developed before the commercial portion.
Acting Executive Director Palmborg stated that the proposed amendment was
responsive to the residential property owners in order to meet the scheduled September 1
closing date on their homes while the total project also continues to move forward.
M/Susag, S/Stokes to direct staff to prepare an amendment to the contract to
provide for the commencement of condemnation on the existing residential property
separate from and ahead of condemnation of the existing commercial property and to
submit the amendment to the HRA for consideration at their June 21, 1999 meeting.
Motion carried 4-0.
Item #4PRESENTATION OF ANNUAL STATUS REPORT ON TAX INCREMENT
DISTRICTS HRA LETTER NO. 26
Acting Executive Director Palmborg reviewed HRA Letter No. 26 regarding
presentation of the annual status report on tax increment districts as prepared by Sid
Inman of Ehlers & Associates, Inc., financial consultant to the City and HRA.
Sid Inman, Ehlers & Associates, Inc. reviewed and answered questions regarding
the Richfield HRA Tax Increment District Status Update Report.
Commissioner Susag requested that future reports include the district's market
value at inception and current market value.
Larry Wozniczka, 6744 Wentworth Avenue, stated he wanted to see a complete list
of the Richfield Rediscovered properties and their increments. He questioned why only
two Richfield Rediscovered properties were listed in the report.
Commissioner Sandahl asked why Mr. Wozniczka needed this information stating
the HRA was satisfied with what was presented and he didn't want staff taking a lot of time
compiling additional information for Mr. Wozniczka unless there was a good reason.
Mr. Wozniczka questioned the greater than inflation increases in City property taxes
since 1992 and questioned the reporting of T.I.F. receipts for the program.
Mr. Inman stated the T.I.F. receipts for the program were $30,000 per year as noted
on page 4 of the tax increment district projections in the report.
HRA Meeting Minutes-5-May 17, 1999
Acting Executive Director Palmborg stated that two Richfield Rediscovered
properties are listed in the report separately because they are subject to assessment
agreements while none of the others required assessment agreements.
Mr. Inman stated that Ehlers is doing a complete audit of T.I.F. programs and a
separate listing for each property will be compiled in this process. He stated it should be
available in approximately one month.
M/Helmberger, S/Sandahl to accept the 1999 Richfield HRA Tax Increment District
Status Update, dated May 1999, prepared by Ehlers & Associates, Inc.
Motion carried 4-0.
Item #5CONSIDERATION OF KEY PROVISIONS OF PROPOSED MASTER
DEVELOPMENT AGREEMENT BETWEEN CITY OF RICHFIELD,
RICHFIELD HRA AND RYAN COMPANIES US, INC. HRA LETTER NO. 27
Acting Executive Director Palmborg reviewed HRA Letter No. 27 regarding a
proposed master development agreement between the City of Richfield, the Richfield
HRA, and Ryan Companies US, Inc.
Commissioner Sandahl noted that the mitigation plan which envisions the
redevelopment of east Richfield near the airport is necessary because existing buildings
and homes cannot be retrofitted to mitigate the impacts of the low frequency noise.
HRA Attorney John Dean reviewed the legislation that authorized $30 million for
airport mitigation in Richfield. He summarized and answered questions regarding the key
provisions of the proposed master agreement with Ryan Companies and the role of Ryan
Companies as a project coordinator and potential developer.
Discussion followed regarding provisions for reimbursement of costs if a third party
developer is chosen and how reimbursable costs would be determined. HRA Attorney
Dean stated these issues would be clarified in the final agreement.
Larry Wozniczka, 6744 Wentworth Avenue, suggested that if tax increment
financing is used that values increase by inflation and the cost for increased services
rather than being frozen.
HRA Attorney Dean stated it will be at least one to two years before it will be known
what will occur and it is unknown at this time if tax increment financing will be utilized.
M/Sandahl, S/Stokes to approve the key provisions as presented by HRA Attorney
John Dean and summarized in the agenda packet and direct staff to negotiate the final
terms of a master agreement with Ryan Companies US, Inc. for subsequent presentation
to the HRA for approval.
HRA Meeting Minutes-6-May 17, 1999
Motion carried 4-0.
Item #6PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF 6824 PARK AND 6805 IRVING AVENUES TO
WINDWOOD HOMES INC. AND 7315 THOMAS AVENUE TO STEVE
MARLIN GRANT HOMES, INC. HRA LETTER NO. 28
Acting Executive Director Palmborg reviewed HRA Letter No. 28 regarding
authorization to sell the Richfield Rediscovered Program properties at 6824 Park Avenue
and 6805 Irving Avenue to Windwood Homes, Inc. and 7315 Thomas Avenue to Steve
Marlin Grant Homes, Inc.
Don Gallos, 6801 Irving Avenue, requested information regarding the concept and
site plan for 6805 Irving Avenue.
Phil Mortenson, 7221 Thomas Avenue, former tenant at 7315 Thomas Avenue,
requested that he be allowed to remove three pine trees that he had planted at 7315
Thomas Avenue.
It was consensus of the HRA that this would be acceptable and they instructed Mr.
Mortenson to contact Pam Bookhout regarding this issue.
M/Sandahl, S/Stokes to close the public hearing.
Motion carried 4-0.
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. 711
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 6824 PARK AND 6805 IRVING AVENUES TO WINDWOOD HOMES INC.
AND 7315 THOMAS AVENUE TO STEVEN MARLIN GRANT HOMES, INC.
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 711 in
HRA Resolution Book No. 6
Item #7CONSIDERATION OF RESOLUTION AUTHORIZING HRA TO ACQUIRE
7545 PENN AVENUE FROM CITY FOR APARTMENT REMODELING
PROGRAM, AND CONDUCT PUBLIC HEARING AND CONSIDERATION OF
RESOLUTION AUTHORIZING SALE OF REMNANT PARCEL AT 7545
PENN AVENUE TO FLOYD SJOSTRAND. HRA LETTER NO. 28
HRA Meeting Minutes-7-May 17, 1999
Acting Executive Director Palmborg reviewed HRA Letter No. 28 regarding
authorization for the HRA to acquire property at 7545 Penn Avenue and to sell the property
to Floyd Sjostrand as part of the HRA Apartment Remodeling 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. 712
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7545
PENN AVENUE FOR THE APARTMENT REMODELING PROGRAM
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 712 in
HRA Resolution Book No. 6.
Larry Wozniczka, 6744 Wentworth Avenue, asked about the cost and funding
source.
Acting Executive Director Palmborg stated that a Metropolitan Council Livable
Communities Grant will pay the $25,196 value of the parcel with $12,598 going to
Hennepin County and $12,598 to reimburse the City's MSA fund.
M/Sandahl, S/Susag to close the public hearing.
Motion carried 4-0.
M/Susag, S/Stokes that the following HRA resolution be adopted, that it be spread
in the HRA resolution book and that it be made part of these minutes:
HRA RESOLUTION NO. 713
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED
AT 7545 PENN AVENUE TO FLOYD SJOSTRAND
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 713 in
HRA Resolution Book No. 6
Item #8 EXECUTIVE DIRECTOR REPORT
Commissioner Sandahl gave a status report on the work of the Low Frequency
Noise Policy Committee.
Acting Executive Director Palmborg discussed legislative action regarding funding
for airport impact mitigation and the FFA "funding diversion" policy.
HRA Meeting Minutes-8-May 17, 1999
Item #9CLAIMS AND PAYROLL
M/Sandahl, S/Susag that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks: 13655-13767$ 116,950.68
HRA Checks: 20425-20458; 20694-20747$ 533,041.94
Motion carried 4-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:37 p.m.
Date Approved:
Joan Helmberger
Vice Chair
Thomas P. FerberBruce Palmborg
City ClerkActing Executive Director