01-18-00 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 18, 2000
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:Samantha Orduno, Executive Director; Steven Devich, Acting City
Clerk; Bruce Palmborg, Community Development Director; John
Stark, Community Development Manager; and John Dean, HRA
Attorney.
APPROVAL OF MINUTES
M/Susag, S/Helmberger to approve the minutes of the regular HRA Meeting of
November 15, 1999 and the Special HRA Meeting of November 22, 1999.
Motion carried 5-0.
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
HRA Meeting Minutes-2-January 18, 2000
Item #2ELECTION OF HOUSING AND REDEVELOPMENT AUTHORITY OFFICERS
FOR 2000. HRA LETTER NO. 1
M/Susag, S/Stokes that the following be elected as officers of the HRA for 2000:
Thomas Harms, Chair
Joan Helmberger, Vice-Chair
Michael Sandahl, Secretary
Motion carried 5-0.
HRA APPROVAL OF AGENDA
Item #3
M/Susag, S/Stokes to approve the agenda.
Motion carried 5-0.
Item #4CONSENT CALENDAR
A.APPROVED DESIGNATION OF STEVEN L. DEVICH AS HRA ACTING EXECUTIVE
DIRECTOR FOR 2000 DURING ABSENCES OF EXECUTIVE DIRECTOR ORDUNO
HRA L. 2
B.APPROVED DESIGNATION OF RICHFIELD SUN CURRENT AS HRA OFFICIAL
NEWSPAPER FOR 2000 HRA L. 3
C.APPROVED RESOLUTIONS DESIGNATING HRA OFFICIAL DEPOSITORIES FOR
2000, INCLUDING APPROVAL OF COLLATERAL HRA L. 4
HRA RESOLUTION NO. 748
RESOLUTION DESIGNATING THE RICHFIELD BANK AND TRUST COMPANY
A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY
OF RICHFIELD FOR THE YEAR 2000 AND APPROVING COLLATERAL
HRA RESOLUTION NO. 749
RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN
ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT
OF THE HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 2000
HRA Meeting Minutes-3-January 18, 2000
HRA RESOLUTION NO. 750
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2000
HRA RESOLUTION NO. 751
RESOLUTION DESIGNATING THE FIRSTAR BANK A DEPOSITORY
OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY FOR
RICHFIELD FOR THE YEAR 2000 AND APPROVING COLLATERAL
These HRA Resolutions appear as HRA Resolution No.’s 748 - 751 in HRA
Resolution Book No. 6.
D.APPROVED MODIFICATION TO SOUTH HENNEPIN HUMAN SERVICE PLANNING
AGENCY CONTRACT TO INCLUDE PAYMENT OF ADDITIONAL $1500 HRA L. 5
E.APPROVED RESOLUTION RATIFYING PAST ACTIONS TAKEN BY RICHFIELD CITY
COUNCIL RELATING TO TAX INCREMENT FUND ACCOUNTS HRA L. 6
HRA RESOLUTION NO. 752
RESOLUTION APPROVING AND RATIFYING ACTIONS
TAKEN BY THE RICHFIELD CITY COUNCIL;
RELATING TO TAX INCREMENT FUND ACCOUNTS
This HRA Resolution appears as HRA Resolution No. 752 in HRA Resolution Book
No. 6.
F.CONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING $300,000
REDUCTION IN IRREVOCABLE STANDBY LETTER OF CREDIT DATED OCTOBER
13, 1999 FOR ACCOUNT OF CSM INVESTORS, INC.; SHOPS AT LYNDALE, PHASE II
HRA L. 7
HRA RESOLUTION NO. 753
RESOLUTION AUTHORIZING A $300,000 REDUCTION IN
IRREVOCABLE STANDBY LETTER OF CREDIT
DATED OCTOBER 13, 1999 FOR THE ACCOUNT OF CSM INVESTORS, INC.
SHOPS AT LYNDALE, PHASE II
This HRA Resolution appears as HRA Resolution No. 753 in HRA Resolution Book
No. 6.
G.APPROVED CONTINUATION OF COMMUNITY APARTMENT PROGRAM FOR 2000
HRA L. 8
M/Susag, S/ Stokes to approve the consent calendar.
Motion carried 5-0.
HRA Meeting Minutes-4-January 18, 2000
Item #5CONSIDERATION OF “CITY BELLA” DEVELOPMENT CONCEPT AND
AGREEMENT WITH GRAMERCY CORPORATION FOR EXCLUSIVE
COOPERATION WITH HRA IN EXPLORING FEASIBILITY OF
REDEVELOPING SOUTHWEST QUADRANT OF LYNDALE AVENUE AND
66TH STREET; GRAMERCY REDEVELOPMENT PROJECT AREA. HRA
LETTER NO. 9
Executive Director Orduno reviewed HRA Letter No. 9 regarding consideration of
the “City Bella” development concept and agreement with Gramercy Corporation for
exclusive cooperation with HRA in exploring redeveloping the southwest quadrant of
Lyndale Avenue and 66th Street.
Mike Conlan, President of Gramercy Corporation, addressed the HRA concerning
the proposed project. The project, which is in the concept phase, includes a central plaza,
a tiered apartment building with first floor commercial space and some townhomes.
Chair Harms asked if a timetable has been determined for the development.
Mr. Conlan stated they are going to proceed with soil sampling, surveys and
marketing analysis.
Commissioner Susag asked for a description of the property to be included in the
project.
Mr. Conlan responded by showing each lot to be acquired on a site plan. He stated
that the proposed developer has talked to the property owners in the affected area. Mr.
Conlan said the plaza would be open to the public.
Ernie Lindstrom, representing John Sieff, Lyndale Hardware, stated that Mr. Sieff
has received another offer, but will work with Gramercy on the project before looking at
other offers. However, Mr. Lindstrom stated that Mr. Sieff and the Gramercy Corporation
have some unresolved issues to complete. He asked that the HRA not select the
Gramercy Corporation as the developer until the next HRA meeting to allow the
negotiations to continue.
Commissioner Sandahl asked if it would be helpful to separate the Lyndale
Hardware property out of the project at this time.
Community Development Director Palmborg stated that it may be advantageous to
keep the project together.
Mr. Conlan stated that it would be acceptable with them to separate the Lyndale
Hardware property, but they would eventually like to include that parcel in the future.
Commissioner Susag stated that he understood the action tonight to have the
developer continue to work on the concept, but to give no approval or authority for design,
tax increment or any other matter.
HRA Meeting Minutes-5-January 18, 2000
Executive Director Orduno stated that this is correct.
M/Sandahl, S/Stokes to execute the Agreement with Gramercy Corporation without
including the Lyndale Hardware property, following payment of $25,000 by Gramercy
Corporation.
Motion carried 5-0.
Item #6CONSIDERATION OF REPORT AND RECOMMENDATIONS OF
AFFORDABLE HOUSING REPLACEMENT POLICY ADVISORY
COMMITTEE; MITIGATIVE AREA. HRA LETTER NO. 10
Executive Director Orduno reviewed HRA Letter No. 10 regarding reports and
recommendations of the Affordable Housing Replacement Policy Advisory Committee.
Jeanne Massey addressed the HRA with a summary of key facts and issues
discussed by the Affordable Replacement Housing Policy Advisory Committee. She
summarized a report that was published on January 10, 2000.
M/Susag, S/Helmberger to receive the report and recommendations from the
Affordable Replacement Housing Advisory Committee with acknowledgement to the
committee members for their time and effort and to:
1.Direct staff to:
a.Use the guideline ratio in considering program ideas that the committee
introduced and redevelopment opportunities in general
b.Utilize the guiding values and principals in applications for Livable
Communities resources from the Metropolitan Council
c.Actively pursue affordable housing resources, which keep available existing
housing affordable
d.Continue to emphasize communication strategies concerning the mitigative
area, redevelopment and affordable housing.
2.Request the Richfield Community Council to consider the role of a “Support
System Task Force” to develop a livability plan for the mitigative area.
3.Prepare correspondence from the HRA, which thanks Committee Members for
their time and effort.
Motion carried 5-0.
HRA Meeting Minutes-6-January 18, 2000
Item #7CONSIDERATION OF CONTRACT FOR PRIVATE REDEVELOPMENT
WITH CSM INVESTORS II FOR REDEVELOPMENT OF WEST SIDE OF
LYNDALE AVENUE AND EAST SIDE OF ALDRICH AVENUE WITHIN
LYNDALE GATEWAY REDEVELOPMENT AREA. HRA LETTER NO. 11
HRA Attorney John Dean reviewed HRA Letter No. 11 regarding private
redevelopment with CSM Investors II for redevelopment of the west side of Lyndale
Avenue and the east side of Aldrich Avenue within the Lyndale Gateway Redevelopment
area and presented the latest changes to the CSM Agreement which included:
x
Recharacterized prepayment wording
x
Rewording of relocation benefits section – including hold harmless of
HRA
John Dean summarized the key points of the CSM Agreement:
45,000 sq. ft. commercial area
$685,000 cash payment by the HRA to the developer at closing
$1,240,000 limited revenue note to developer
$525,000 for public improvement costs is a separate issue and covered in all
three agreements
He stated the CSM contract contains a guarantee for performance from the parent
company, CSM Investors that obligates CSM Investors to repay the $685,000 to HRA for
non-performance. CSM also must bring $2.5 million to the closing.
Commissioner Susag asked if future proposed reductions in the Commercial –
Industrial property tax class rates were considered in these calculations.
Sid Inman, Ehlers & Associates, stated that they did consider such reductions.
M/Sandahl, S/Susag to approve the Contract for Private Redevelopment with CSM
Investors II for the redevelopment of the west side of Lyndale Avenue and the east side of
Aldrich Avenue within the Lyndale Gateway Redevelopment area and direct staff to
investigate the financial data and net worth and guarantee of CSM Investors to ensure
they can cover the guarantee in the agreement.
Motion carried 5-0.
Item #8CONSIDERATION OF CONTRACT FOR PRIVATE REDEVELOPMENT
WITH MINNSTAR BUILDERS FOR REDEVELOPMENT OF EAST SIDE OF
GARFIELD AVENUE WITHIN LYNDALE GATEWAY REDEVELOPMENT
AREA. HRA LETTER NO. 12
HRA Meeting Minutes-7-January 18, 2000
HRA Attorney John Dean reviewed HRA Letter No. 12 regarding a contract for
private redevelopment with Minnstarr Builders for redevelopment of the east side of
Garfield Avenue within the Lyndale Gateway Redevelopment area.
Mr. Dean passed out a new draft of the Minnstar Agreement replacing the current
draft as well as distributed a new page 11 with a change in 3.6 (a) (ii).
Mr. Dean stated that this agreement is similar to the CSM Agreement although the
guarantee is not as strong.
M/Sandahl, S/Helmberger to approve the Contract for Private Redevelopment with
Minnstar Builders for the redevelopment of the east side of Garfield Avenue within the
Lyndale Gateway Redevelopment area.
Motion carried 5-0.
Item #9CONSIDERATION OF SECOND SUPPLEMENT TO CONTRACT FOR
PRIVATE REDEVELOPMENT WITH RICHFIELD SENIOR HOUSING, INC.
FOR REDEVELOPMENT OF PORTION OF LYNDALE GATEWAY AREA.
HRA LETTER NO. 13
HRA Attorney John Dean reviewed HRA Letter No. 13 regarding a second
supplement to a contract for private redevelopment with Richfield Senior Housing, Inc. for
redevelopment of a portion of Lyndale Gateway area.
He stated the HRA approved this contract in October, 1999 and that the Second
Supplement to the contract amends the original contract. The key points were
summarized as follows:
x
Spells out the conveyance process for the City property to the developer
x
$37,100 is the price the developer will pay for the parcels
x
Recalculates the limited revenue note to be used
x
Recalculated principal balance and debt service
x
The project could be broken into counterparts for assessment agreement
purposes
x
Provides a new Access Agreement with new dates
Commissioner Susag asked about the schedule for the projects including purchase
of the residential properties and the timing for the issuance of the bonds.
Community Development Manager John Stark responded to the residential
properties purchase schedule.
Sid Inman, Ehlers & Associates, responded that the bonds were being marketed at
this time.
HRA Meeting Minutes-8-January 18, 2000
M/Sandahl, S/Susag to approve a second supplement to the contract for Private
Redevelopment with Richfield Senior Housing, Inc. for redevelopment of portions of the
Lyndale Gateway area.
Motion carried 5-0.
Item #10CONSIDERATION OF EXTENSION OF AGREEMENT WITH RYAN
COMPANIES, US, INC. TO PROVIDE PLANNING AND DEVELOPMENT
ASSISTANCE IN PENN AND 66TH STREET AREA. HRA LETTER NO. 14
Executive Director Orduno reviewed HRA Letter No. 14 regarding an Extension of
Agreement with Ryan Companies, US, Inc. to provide planning and development
assistance in the Penn and 66th Street area.
M/Helmberger, S/Susag to approve an Extension of Agreement with Ryan
Companies, US, Inc. to provide planning and development assistance in the Penn and
66th Street area.
Motion carried 5-0
Item #11CONSIDERATION OF MARKETING CANDLEWOOD RESTAURANT
PARCEL TO CEDAR AVENUE BRIDGE PROJECT BUSINESS
RELOCATEES. HRA LETTER NO. 15
Executive Director Orduno reviewed HRA Letter No. 15 regarding the marketing of
Candlewood Restaurant parcel to Cedar Avenue Bridge Project business relocatees.
Commissioner Sandahl asked if the Candlewood Hotel would have any say in what
the use would be for this parcel.
Community Development Director Palmborg replied they have no legal right, but
they have contacted Candlewood Hotel and staff will look at uses that are compatible with
the Candlewood Hotel property. He stated the final judgement of which business goes
there, if any, would be decided by the HRA.
Commissioner Susag asked why the relocated Lyndale Gateway businesses were
not included in this area, especially since the Gateway Project appears to be farther ahead
than the Cedar Avenue Project.
Community Development Director Palmborg responded that the Cedar Avenue
Project is ahead of the overall Gateway Project. However, the east side of the Lyndale
Gateway area already has relocation projects in process.
HRA Meeting Minutes-9-January 18, 2000
M/Stokes, S/Sandahl of marketing Candlewood Restaurant parcel to the Cedar
Avenue Bridge Project business relocatees.
Motion carried 5-0.
Item #12 EXECUTIVE DIRECTOR REPORT
Chair Harms reported that the Governor’s Airport Community Stabilization Funding
Task Force work is done and a report is due out soon.
Commissioner Susag stated that this was his last HRA meeting.
Chair Harms commended Commissioner Susag for his years of service on the HRA.
Item #12CLAIMS AND PAYROLL
M/Sandahl, S/Susag that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks: 14438 - 14556$125,725.49
HRA Checks: 21181 – 21405; 21449 – 21511$404,655.16
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 9:05 p.m.
Date Approved:
Thomas E. Harms
Chair
Steven L. DevichSamantha Orduno
Acting City ClerkExecutive Director