07-17-00 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
July 17, 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; and Dan Linnihan.
HRA Members
Not Present:Kristal Stokes; and Michael Sandahl.
Staff Present:Steven Devich, Acting Executive Director and Acting City Clerk;
Bruce Palmborg, Community Development Director; Bruce
Nordquist, Housing and Redevelopment Manager; and Corrine
Thomson, City Attorney.
APPROVAL OF MINUTES
M/Linnihan, S/Helmberger to approve the minutes of the Regular HRA Meeting of
June 19, 2000 and the Special Joint City Council/HRA Study Session of June 29, 2000.
Motion carried 3-0.
HRA Meeting Minutes-2-July 17, 2000
Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
Betty Carr, 6633 Lynnwood Boulevard, spoke to the issue of the Wood Lake Nature
Center parking lot used by Gramercy. She also requested that the HRA look to provide
more single family housing in Richfield.
Larry Wozniczka, 6744 Wentworth Avenue, addressed the issue of the project
approval process between HRA and City Council review.
Chair Harms addressed Mr. Wozniczka’s questions regarding the process.
City Attorney Thomson responded with a summary of the legal process for
governing the HRA and City Council.
HRA APPROVAL OF AGENDA
Item #2
The agenda was amended to add Item #4A (consideration of a Resolution
approving clarifications to the Richfield Redevelopment Project area) and it was stated that
the staff report letter in Item #6 goes with Item #5 and the staff report letter in Item #5 goes
with Item #6. The agenda was approved as amended by unanimous consent.
Item #3CONSENT CALENDAR
A.Approved resolution authorizing HRA not to waive monetary limits on statutory
municipality tort liability established by Minnesota Statutes 466.04 S.R. No. 41
HRA RESOLUTION NO. 768
RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY
MINNESOTA STATUTES 466.04
This HRA Resolution appears as HRA Resolution No. 768 in HRA Resolution Book
No. 6.
B.Approved resolution authorizing acquisition of 1015 East 69th Street under Richfield
Rediscovered Program S.R. No. 42
HRA Meeting Minutes-3-July 17, 2000
HRA RESOLUTION NO. 769
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED
AT 1015 EAST 69TH STREET FOR THE RICHFIELD REDISCOVERED PROGRAM
This HRA Resolution appears as HRA Resolution No. 769 in HRA Resolution Book
No. 6.
M/Linnihan, S/Helmberger to approve the consent calendar.
Motion carried 3-0.
Item #4CONSIDERATION OF CONTRACT FOR PRIVATE REDEVELOPMENT
BETWEEN GRAMERCY CORPORATION AND HRA FOR CITY BELLA
PROJECT, 66TH STREET AND LYNDALE AVENUE. S. R. NO. 43
Community Development Manager Bruce Nordquist reviewed Staff Report No. 43
concerning the consideration of a contract for private redevelopment between Gramercy
Corporation and HRA for the City Bella project. Mr. Nordquist presented the site plan and
identified the significant issues associated with the plan including green space, views and
traffic.
Mike Conlan, President of Gramercy Corporation, addressed a number of issues
and general perspective of the City Bella Plan. Mr. Conlan stated that there is a great deal
of lender interest in the project now that they intend to proceed with environmental and
style design steps.
Commissioner Linnihan asked if there might be music such as a small chamber
orchestra in the plaza from time to time.
Mr. Conlan responded that such entertainment was in their concept design.
Chair Harms stated a series of questions regarding the roof height of the three-story
building, the retail portions of the project, and related matters.
Mr. Conlan responded to Chair Harm’s questions.
Carl Cornell, 6615 Lakeshore Drive, spoke in opposition to the project. He stated
that he did not represent the Board of Lakeshore Drive Condominium Association.
Ray Johnson, 6615 Lakeshore Drive, Lakeshore Drive Condominium Association
Task Force, stated that the task force is concerned that people who frequent the City Bella
project will encroach on their parking ramp and park in front of the Lakeshore Drive
building.
HRA Meeting Minutes-4-July 17, 2000
Chair Harms suggested that the developer might be able to provide a gated access
for the Lakeshore Drive parking ramp and supply the first set of magnetic keys for tenants.
Mike Conlan stated that Gramercy was sensitive to this issue and felt that they
could respond to the task force’s concerns
M/Helmberger, S/Linnihan to execute a Contract for Private Redevelopment
between Gramercy Corporation and the Housing and Redevelopment Authority (HRA) for
“City Bella” at 66th Street and Lyndale Avenue.
Motion carried 3-0.
Item #4ACONSIDERATION OF A RESOLUTION APPROVING CLARIFICATIONS
TO THE RICHFIELD REDEVELOPMENT PROJECT AREA. S. R. NO. 46
Community Development Director Palmborg reviewed Staff Report No. 46 regarding
consideration of a resolution approving clarifications to the Richfield Redevelopment
Project Area.
M/Linnihan, S/Helmberger that the following HRA resolution be adopted, that it be
spread in the resolution book and that it be made part of these minutes:
HRA RESOLUTION NO. 770
RESOLUTION APPROVING CLARIFICATIONS TO
MODIFICATIONS OF THE REDEVELOPMENT
PLAN FOR THE RICHFIELD REDEVELOPMENT
PROJECT AREA
Motion carried 3-0. This HRA Resolution appears as HRA Resolution No. 770 in
HRA Resolution Book No. 6.
Item #5CONSIDERATION OF RESOLUTION AUTHORIZING EMINENT DOMAIN
PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTIES WITHIN
INTERCHANGE WEST AREA LOCATED AT AND ADJACENT TO 2100
WEST 78TH STREET. S. R. No. 44
Acting Executive Director Devich reminded the HRA that in the agenda packets, the
materials for items 5 and 6 should be reversed.
Community Development Director Palmborg reviewed Staff Report No. 44 regarding
a resolution authorizing eminent domain proceedings to acquire certain real properties
within Interchange West Area located at and adjacent to 2100 West 78th Street.
HRA Meeting Minutes-5-July 17, 2000
Chair Harms summarized a letter from Walser Attorney Bruce Malkerson to the
HRA regarding the current points of issue.
Tim Murnane, 9913 Lee Drive, Eden Prairie, Opus, addressed the HRA. He stated
that in early April they held a series of neighborhood meetings. He stated that with respect
to the residential and business properties in the Interchange West area, 46 residential
property agreements are fully executed, 22 are in negotiations, 6 are expected this week
and 7 are represented by a neighbor in the project area and remain uncompleted. With
respect to businesses in the area, offers and verbal contacts have been tendered to all 22
of them. To date, 4 agreements are executed, 4 are pending, and 5 are in negotiations.
He further stated the McCarthy automobile dealership negotiations are complete.
Mr. Murnane listed a number of dates where meetings or calls were made to the
Walser group.
Chair Harms asked if a hang-up was that Mr. Walser wants to meet with Richard
Schultz, President of Best Buy.
Mr. Murnane stated that George Lopuch and Al Lenzmeier of Best Buy were
authorized to negotiate an agreement with Paul Walser.
City Attorney Thomason stated the legal basis for the advanced condemnation in
this matter.
Barbara Jerich, 3948 West 50th Street, Edina, Walser General Counsel, stated that
the Walser purchase of the Lincoln Del site was not for the dealerships in Richfield. She
said no site had been identified. She stated that the issue is that the offer is not near
enough to cover the cost of relocation. Ms. Jerich stated that the cost to reconstruct the
dealerships would be $18 million as compared to the $8 million offered. She stated that
Mr. Walser wants a meeting with Richard Schultz.
Chair Harms stated while the HRA wants the parties to proceed on their own to
reach an agreement, passing the resolution provides an opportunity for the HRA to
establish a point where action may be commenced if the parties fail to come to a timely
agreement.
Ernie Lindstrom, 7406 Fremont Avenue, stated that he represents the Diplomat
Apartments. He stated that he felt the process has been a good one so far and expects to
be able to reach an agreement for his client.
Commissioner Linnihan stated he wants Walser and Best Buy to get together and
come to an agreement.
Commissioner Helmberger and Chair Harms concluded with those perspectives.
Chair Harms stated that he wanted staff to keep the HRA updated in these negotiations by
weekly updates.
Community Development Director Palmborg stated that they would make such
updates.
HRA Meeting Minutes-6-July 17, 2000
M/Linnihan, 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:
RESOLUTION NO. 771
RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTIES
Motion carried 3-0. This HRA Resolution appears as HRA Resolution No. 771 in
HRA Resolution Book No. 6.
Item #6CONSIDERATION OF RESOLUTION CONSENTING TO TIME EXTENSION
TO REQUEST EMINENT DOMAIN PROCEEDINGS WITHIN INTERCHANGE
WEST AREA. S. R. NO. 45
Community Development Director Palmborg reviewed Staff Report No. 45 to
consider a resolution consenting to time extension to request eminent domain proceedings
with the Interchange West Area.
M/Helmberger, S/Linnihan 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:
RESOLUTION NO. 772
RESOLUTION CONSENTING TO TIME EXTENSION TO REQUEST
EMINENT DOMAIN PROCEEDINGS
Motion carried 3-0. This HRA Resolution appears as HRA Resolution No. 772 in
HRA Resolution Book No. 6.
Item #7 EXECUTIVE DIRECTOR REPORT
None.
HRA Meeting Minutes-7-July 17, 2000
Item #8CLAIMS AND PAYROLL
M/Linnihan, S/Helmberger that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks: 100595 - 100724$134,072.23
HRA Checks: 24493 – 24509; 24682 – 24721$73,809.67
Motion carried 3-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:35 p.m.
Date Approved:
Thomas E. Harms
Chair
Steven L. DevichSteven L. Devich
Acting City ClerkActing Executive Director