08-16-99 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 16, 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; Kristal Stokes; Michael Sandahl
and Russ Susag.
Staff Present:Steven Devich, Acting City Manager; Bruce Palmborg, Community
Development Director; and John Dean, HRA Attorney.
APPROVAL OF MINUTES
M/Susag, S/Helmbergerto approve the minutes of the July 27, 1999 HRA Meeting.
Motion carried 5-0.
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
HRA Meeting Minutes-2-August 16, 1999
Item #2CONSIDERATION OF AMENDMENT TO CONTRACT FOR PRIVATE
REDEVELOPMENT WITH CSM PROPERTIES, INC. FOR DEVELOPMENT
OF INTERCHANGE WEST AND ASSOCIATED "BUT FOR" ANALYSIS.
HRA LETTER NO. 46
Acting Executive Director Devich stated Murray Kornberg of CSM wished to
address the HRA regarding recent events that affect consideration of this item.
Murray Kornberg, Vice President of CSM Properties, Inc., stated that there had
been new and exciting developments regarding the potential redevelopment of the
Interchange West area. He stated a single corporate user has expressed interest in the
site for their headquarters. He stated this use would provide a significant increased tax
base and denser development than the current proposal. Mr. Kornberg stated that this
potential use would require possible changes to the timeline, necessary government
approvals and that the user would not be a tenant, but instead an owner. He requested
that staff be given time to analyze this possibility and changes in order to present
information to the HRA at their next meeting.
Chair Harms asked how real the possibility was for this use.
Community Development Director Palmborg stated that he had talked to
representatives of the company in the last few weeks and the situation is competitive, but
they appear to have a strong interest in the site.
Commissioner Susag expressed concern about the impact of the schedule.
Mr. Kornberg indicated it was unclear at this time, but it would likely take longer with
the new use.
Commissioner Stokes stated concern as to what would happen if this option does
not occur.
Mr. Kornberg stated that he thought it was best to take the time to pursue this
possibility.
Chair Harms stated that it would be worth the time to look at this possibility because
of the potential for significant tax base and jobs for the community associated with such a
corporate use.
M/Harms, S/Sandahl to authorize and direct staff to do the following:
1.To review and analyze the issues related to the interest and possibility of a single
corporate headquarters use for the Interchange West Redevelopment Project.
2.To work on the amendments to the contract for private redevelopment with CSM
Properties, Inc. for the Interchange West area.
HRA Meeting Minutes-3-August 16, 1999
Motion carried 5-0.
Discussion followed regarding communication to the Interchange West area
regarding these new developments.
Item #3CONSIDERATION OF AMOUNT AND FORM OF PUBLIC ASSISTANCE TO
BE USED FOR COMPLETION OF LYNDALE GATEWAY DEVELOPMENT.
HRA LETTER NO. 47
Acting Executive Director Devich reviewed HRA Letter No. 47 recommending the
following action by the HRA:
1.Approve assistance only for the senior apartment and attached office
development which is proposed for the east side of Lyndale Avenue and for the
commercial development which is proposed for the west side of Lyndale
Avenue;
2.Approve the use of tax increment financing (TIF) for the development in the
approximate amount of $3,930,000 in the form of a pay-as-you-go note issued to
the developer(s) as reimbursement for eligible redevelopment costs;
3.Stipulate that the tax increment assigned to the Twin City Christian Homes
component of the development be reduced proportionately in any year that the
debt service coverage exceeds 130%;
4.Request that the City Council issue general obligation tax increment bonds in
the approximate amount of $1,250,000 to be retired from the tax increment
generated by the Candlewood Tax Increment Financing District, the proceeds of
which would be reimbursed to the developer(s) for eligible redevelopment costs;
and
5.Approve the use of development account funds of up to $100,000 for
reimbursement to the developer(s) for eligible redevelopment costs which
exceed the amount of TIF and bond proceeds which are to be provided.
Sid Inman, Ehlers and Associates, Inc. responded to questions regarding the
potential use of the tax increment generated by the Candlewood Hotel site.
Commissioner Susag stated that in his judgement the development on the east side
of Lyndale Avenue with the Twin City Christian Homes Senior Apartments must include the
townhomes as part of the development because of the negative impacts on the
homeowners on Garfield Avenue. He stated his motion would be to amend the
recommended action by deleting the commercial development proposed for the west side
of Lyndale Avenue, adding the townhome development on the east side of Garfield
Avenue and deleting number 5.
HRA Meeting Minutes-4-August 16, 1999
Heidi Kurtz, representing Ron Clark Construction, discussed and responded to
questions regarding the townhome market, price and density issues related to the site.
Mr. Kornberg discussed density issues related to townhouse price point and market
evaluation. He indicated his interest that the commercial portion on the west side of
Lyndale Avenue be approved although it was only one component. He discussed the
financing gap issue.
Commissioner Sandahl stated concerns about the financing gap and the desire that
all three components be built.
Commissioner Helmberger stated she supports doing both sides of Lyndale Avenue
and building the townhomes later if financing becomes available.
Discussion followed regarding various financing and funding sources including the
impact on the development account fund, which would hinder future opportunities and
projects throughout the City.
M/Susag, S/Stokes to take the following action:
1.Approve the use of tax increment financing only for the senior apartment and
attached office development which is proposed for the east side of Lyndale
Avenue and for the townhome development proposed for Garfield Avenue. This
would require approximately $621,000 in additional assistance beyond the tax
increment which would be generated by the development;
2.Approve the use of tax increment financing (TIF) for the development in the
approximate amount of $3,930,000 in the form of a pay-as-you-go note issued to
the developer(s) as reimbursement for eligible redevelopment costs;
3.Stipulate that the tax increment assigned to the Twin City Christian Homes
component of the development be reduced proportionately in any year that the
debt service coverage exceeds 130%; and
4.Requests that the City Council issue general obligation tax increment bonds in
the approximate amount of $1,250,000 to be retired from the tax increment
generated by the Candlewood Tax Increment Financing District, the proceeds of
which would be reimbursed to the developer(s) for eligible redevelopment costs.
Motion carried 3-2. (Helmberger and Harms opposed)
Commissioner Sandahl stated that he wanted to see the west side of Lyndale
Avenue redevelopment be a top priority for staff.
HRA Meeting Minutes-5-August 16, 1999
Item #4PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF 7520 COLFAX AVENUE TO STEVEN MARLIN
GRANT HOMES, INC. HRA LETTER NO. 48
Acting Executive Director Devich reviewed HRA Letter No. 48 regarding the
proposed sale of 7520 Colfax Avenue to Steven Marlin Grant Homes, Inc.
M/Stokes, S/Sandahl to close the public hearing.
Motion carried 5-0.
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. 721
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 7520 COLFAX AVENUE
TO STEVEN MARLIN GRANT HOMES, INC.
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 721 in
HRA Resolution Book No. 6.
Item #5PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF 6600 OAKLAND AVENUE TO CORNERSTONE
ADVOCACY SERVICE FOR TRANSITIONAL HOUSING PROGRAM.
HRA LETTER NO. 49
Acting Executive Director Devich reviewed HRA Letter No. 49 regarding the
proposed sale of 6600 Oakland Avenue to Cornerstone Advocacy Service for its
Transitional Housing Program.
Community Development Director Palmborg responded to questions regarding the
Cornerstone Advocacy Service Transitional Housing Program.
Chad Sharkey, 6637 Park Avenue, asked if the retail space in the building would be
occupied.
Community Development Director Palmborg stated that the retail portion will be
removed from the structure and only the living spaces will be retained.
M/Helmberger, S/Stokes to close the public hearing.
Motion carried 5-0.
HRA Meeting Minutes-6-August 16, 1999
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. 722
RESOLUTION AUTHORIZING THE SALE OF
6600 OAKLAND AVENUE TO CORNERSTONE ADVOCACY SERVICE
FOR ITS TRANSITIONAL HOUSING PROGRAM
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 722 in
HRA Resolution Book No. 6.
Item #6CONSIDERATION OF RESOLUTION AUTHORIZING ACQUISITION OF
6901 12TH AVENUE, 6929 QUEEN AVENUE AND 6933 QUEEN AVENUE
UNDER RICHFIELD REDISCOVERED PROGRAM AND RESOLUTION
AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE 6933
QUEEN AVENUE. HRA LETTER NO. 50
Acting Executive Director Devich reviewed HRA Letter No. 50 regarding
consideration of authorization to purchase the properties at 6901 12th Avenue, 6929
Queen Avenue and 6933 Queen Avenue under the Richfield Rediscovered Program and
to authorize eminent domain proceedings to acquire 6933 Queen Avenue.
Community Development Director Palmborg discussed the status of the property at
6933 Queen Avenue. He stated that the Community Development staff would meet with
the owner to see if their current plans to improve the property are feasible and eminent
domain would only be used if necessary.
Chair Harms directed staff to meet with homeowner and if there is significant
progress to delay the eminent domain process and report back to the HRA at the next
meeting.
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. 723
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6901-
12TH, 6929 QUEEN AND 6933 QUEEN AVENUES
FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 723 in
HRA Resolution Book No. 6.
HRA Meeting Minutes-7-August 16, 1999
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. 724
RESOLUTION AUTHORIZING EMINENT DOMAIN
PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTY
LOCATED AT 6933 QUEEN AVENUE
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 724 in
HRA Resolution Book No. 6.
Item #7CONSIDERATION OF AUTHORIZATION OF FOUR YEAR FUNDING PLAN
FOR RICHFIELD REDISCOVERED AND TRANSFORMATION HOMES
PROGRAMS AND REQUEST FOR CITY COUNCIL TO AUTHORIZE SALE
OF GENERAL OBLIGATION TAX INCREMENT REVENUE BONDS.
HRA LETTER NO. 51
Acting Executive Director Devich reviewed HRA Letter No. 51 regarding
authorization of a four year funding plan for the Richfield Rediscovered and Transformation
Homes Programs and a request to the City Council to authorize the sale of general
obligation tax increment revenue bonds.
M/Sandahl, S/Susag to authorize a four year funding plan for the Richfield
Rediscovered and Transformation Homes Programs; to request the City Council to
authorize the sale of general obligation tax increment revenue bonds; and to authorize the
HRA Chair and Acting Executive Director to execute agreements related to the funding
plan for the Richfield Rediscovered Transformation Homes Program.
Motion carried 5-0.
Item #8CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF
CERTIFICATE OF COMPLETION FOR MERIDIAN CROSSINGS, PHASE II.
HRA LETTER NO. 52
Acting Executive Director Devich reviewed HRA Letter No. 52 regarding execution
of the Certificate of Completion for Meridian Crossings, Phase II.
HRA Meeting Minutes-8-August 16, 1999
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. 725
RESOLUTION AUTHORIZING EXECUTION OF A
CERTIFICATE OF COMPLETION FOR
MERIDIAN CROSSINGS, PHASE II
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 725 in
HRA Resolution Book No. 6.
Item #9CONSIDERATION OF ACKNOWLEDGEMENT AND CONSENT TO
TRANSFER PROPERTY FROM MERIDIAN PROPERTIES REAL ESTATE
DEVELOPMENT L.L.C. D/B/A TOLD DEVELOPMENT COMPANY TO THE
STATE TEACHERS RETIREMENT SYSTEM OF OHIO; MERIDIAN
CROSSINGS OFFICE REDEVELOPMENT PROJECT, PHASE II.
HRA LETTER NO. 53
Acting Executive Director Devich reviewed HRA Letter No. 53 regarding the request
of Meridian Properties Real Estate Development L.L.C., d/b/a TOLD Development
Company for the required approvals and consent to transfer the property to The State
Teachers Retirement System of Ohio.
Chair Harms read the stipulations.
M/Sandahl, S/Stokes that the HRA take the following actions:
1.Approval of the CONSENT TO ASSIGNMENT agreement which assigns
Meridian Crossings, Phase II, property to Purchaser does not constitute a
default under the Redevelopment Contract nor does it alter or affect any
payment due under the Limited Tax Increment Note to TOLD;
2.Approval of the CERTIFICATION AND ESTOPPEL CERTIFICATE which (a.)
acknowledges the HRA's consent of the transfer of property; (b.) acknowledges
compliance with the Redevelopment Contract except for provisions relating to
Land Sale, Construction of Minimum Improvements, and Wage and Job
Covenants; (c.) acknowledges that there are no outstanding defaults or claims;
and (d.) verifies outstanding special assessments, balance due under the
Limited Tax Increment Note, and current market value of property; and
2a.The execution and delivery of the Estopel certificate by the HRA is
conditioned on the following:
1.Issuance of the certificate of completion in accordance with the terms of
the contract
HRA Meeting Minutes-9-August 16, 1999
2.Any amount due and owed the HRA and/or City must be paid in full
3.HRA consent to the GENERAL WARRANTY ASSIGNMENT OF PROJECT
CONTRACTS AND ASSUMPTION AGREEMENT which assigns all of TOLD's
project contracts, representations, warranties, covenants, and agreements
relating thereto for Phase II to Purchaser.
4.Authorizes the Chairperson and Acting Executive Director to take any and all
actions necessary to execute the agreements in order to carry out the
implementation of the actions requested by TOLD.
Motion carried 5-0.
Item #10CONSIDERATION OF RESOLUTION APPROVING PROPOSED 2000 HRA
BUDGET AND CERTIFYING 2000 TAX LEVY RESOLUTION REVISING
1999 HRA BUDGET. HRA LETTER NO. 54
Acting Executive Director Devich reviewed HRA Letter No. 54 regarding approval of
the proposed 2000 HRA Budget, certification of the proposed 2000 Tax Levy, approval of
authorization to revise the 1999 HRA Budget and scheduling of a public hearing for 7:00
p.m. on November 15, 1999 regarding the HRA budget and final tax levy.
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. 726
RESOLUTION APPROVING PROPOSED 2000 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2000 TAX LEVY
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 726 in
HRA Resolution Book No. 6.
M/Sandahl, 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. 727
RESOLUTION AUTHORIZING REVISION OF THE 1999 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 727 in
HRA Resolution Book No. 6.
HRA Meeting Minutes-10-August 16, 1999
Item #11 EXECUTIVE DIRECTOR REPORT
Community Development Director Palmborg discussed HRA representation on the
Affordable Housing Committee. By the unanimous consent of the HRA, Commissioner
Stokes agreed to be the HRA representative if the scheduling is feasible.
Item #12CLAIMS AND PAYROLL
M/Sandahl, S/Harms that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks: 13991 - 14102$129,879.06
HRA Checks: 20767 - 20777; 20940 - 20995$638,084.83
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:22 p.m.
Date Approved:
Thomas E. Harms
Chair
Thomas P. FerberSteven L. Devich
City ClerkActing Executive Director