06-26-06 Special
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Meeting
June 26, 2006
The meeting was called to order by Chair Sandahl at 7:00 p.m.
HRA Members
Present:
Sue Sandahl; Martin Kirsch; Joan Heimberger; David Gepner; and Donna
Drummond.
Staff Present:
Steve Devich, Executive Director; Bruce Palmborg, Community
Development Director; Pat Smith, Community Development Manager;
Bruce Nordquist, Housing & Redevelopment Manager; Nancy Gibbs, City
Clerk; and John Dean, HRA Attorney.
Item #1
M/Kirsch, S/Helmberger to approve the minutes of (1) ReQular HRA MeetinQ of April 17.
2006; (2) Special Concurrent HRA/Citv Council/PlanninQ Commission Worksession of April 24.
2006; (3) Special HRA MeetinQ of Mav 2. 2006: and (4) Special HRA MeetinQ of Mav 30. 2006.
Motion carried 5-0.
Item #2
M/Gepner, S/Drummond to approve the aQenda.
Motion carried 5-0.
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June 26, 2006
Item #3
A. Approved bid minutes/tabulation and award of contract for demolition of 6400, 6520 and 6528
Cedar Avenue; Cedar Point project, to Michael Scott Construction, including identifying award of
contract to alternate bidder #1 to Doboszenski & Sons, Inc., and alternate bid #2 to Carl Bolander
& Sons Co. should Michael Scott Construction not be able to perform S.R. No. 21
B. Approved execution of professional services agreement with Cornejo Consulting to conduct
analyses of Richfield Redevelopment Project Area related to proposed establishment of Cedar
Corridor Tax Increment Financing District S.R. No. 22
M/Kirsch, S/Gepner to approve the Consent Calendar.
Motion carried 5-0.
Item #4
Community Development Director Palmborg presented Staff Report No. 23.
Jim Bernklau, an acquisition specialist of the Velmeir Companies representing CVS, stated
CVS would be willing to work with a developer to put a CVS in this area.
M/Helmberger, S/Kirsch to delav action tonight and direct staff to come back next month
with more options and continue with the 1996 multi-use plan.
Motion carried 5-0.
Dick Franzmeier, 7532 Garfield Avenue, asked if there are any development plans for the
west side of Lyndale Avenue.
Community Development Director Palmborg responded no, there are no redevelopment
plans at this time.
Mr. Franzmeier commented that parking is almost always a concern and please keep that
in mind.
M/Kirsch, S/Sandahl for the City Council to rezone the area to be consistent with the
comprehensive plan.
Motion carried 5-0.
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June 26, 2006
Item #5
Commissioner Gepner recused himself from comment and vote.
Housing & Redevelopment Manager Nordquist presented Staff Report No. 24.
M/Kirsch, SlDrummond that the followinQ 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. 976
RESOLUTION AUTHORIZING THE REPLACEMENT OF PENN PLACE LETTER OF CREDIT
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 976
Item #6
Housing & Redevelopment Manager Nordquist presented Staff Report No. 25 and the City's
response to the Met Council's Summary Report.
Commissioner Gepner responded that staff has done a terrific job on this report.
M/Gepner, S/Drummond to invite Russ SusaQ of the Met Council to a Worksession with the
City Council.
Motion carried 5-0.
Item #7
Community Development Manager Smith presented Staff Report No. 26 and 27 and
reported that changes were made to Items 7,9 and 10 of tonight's agenda.
(
HRA Attorney Dean explained changes to the First Amendment to Contract for Private
Development Agreement. Mr. Dean also explained changes to the Business Subsidy Agreement.
Among the changes to the Contract and Business Subsidy Agreement described were the
following:
. Established a six-month time period for the commencement of construction of the project.
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June 26, 2006
. Provided for the issuance of separate Certificates of Completion for the various portions of the
project.
. Limited the personal obligation of Developer to pay taxes to payment of special assessments
only. Obligation to pay taxes remains as an obligation against the property.
. Clarified that breach of obligations created under the Contract as to portions of the property do
not constitute cross-breaches as to other portions of the property.
. Provided that the obligation to make any "look-back" payment remains an obligation of
Developer, and does not pass to any successor in the property.
. Required the HRA to assume the developer's obligation with respect to the purchase of certain
property in the event that the HRA or the City fail to take certain actions within the timelines
contained in the amendment.
. Attachment of the documents that will be used to split the Ryan Business Subsidy Agreement
into two separate agreements which will be assigned to successor users. The Ryan Business
Subsidy Agreement being substantially unchanged from the previous version.
HRA Attorney Dean stated that he anticipated more terms and conditions to the contract
that may require additional changes to the contract. He then requested that the HRA continue this
meeting until Friday, June 30 at 8:30 a.m.
Commissioner Kirsch stated he would be at the League of Minnesota Cities Conference
and would not be present at the June 30 meeting.
M/Kirsch, S/Gepner that the followina 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. 977
RESOLUTION APPROVING FIRST AMENDMENT TO
CONTRACT FOR PRIVATE .DEVELOPMENT
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 977.
Item #8
HRA Attorney Dean discussed Staff Report 27 during the discussion of Item 7.
M/Helmberger, S/Kirsch that the followino HRA resolution be adopted. that it be spread in
the HRA resolution book and that it be made part of these minutes:
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June 26, 2006
HRA RESOLUTION NO. 978
RESOLUTION APPROVING BUSINESS SUBSIDY AGREEMENT
CEDAR POI NT-TARGET CORPORATION
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 978.
M/Gepner, S/Drummond that the followino 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. 979
RESOLUTION APPROVING BUSINESS SUBSIDY AGREEMENT
CEDAR POINT-HOME DEPOT
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 979.
Item #9
Community Development Manager Smith presented Staff Report No. 28.
HRA Attorney Dean explained the changes to the Escrow Agreement. The changes
included:
· Changes in numerous performance dates for actions to be taken in accordance with the terms
of the Escrow Agreement.
· Revised descriptions of the rights of the parties to terminate the Escrow Agreement, and the
consequences of such termination.
· Establishment of a timeframe for closing.
M/Gepner, S/Helmberger that the followino 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. 980
RESOLUTION APPROVING ESCROW AGREEMENT
WITH RYAN COMPANIES US, INC.
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 980.
Item #10
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June 26, 2006
Community Development Manager Smith presented Staff Report No. 29.
HRA Attorney Dean explained changes to the Waiver Agreement. Those changes
included:
. Conditioning Ryan's approval of title upon acceptable deed restrictions.
. Moving the list of required City and HRA approvals from the Waiver Agreement to the Escrow
Agreement.
M/Kirsch, S/Drummond that the followinQ 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. 981
RESOLUTION APPROVING WAIVER AGREEMENT WITH RYAN COMPANIES US, INC.
FOR CEDAR POINT COMMONS
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 981.
Item #11
Community Development Manager Smith presented Staff Report No. 30.
M/Kirsch, S/Gepner that the followino 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. 982
RESOLUTION AUTHORIZING PURCHASE AGREEMENT WITH
THE CITY OF RICHFIELD FOR THE PURCHASE OF LAND
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 982.
Commissioner Kirsch thanked HRA Attorney John Dean, City Attorney Thomson and
Community Development Manager Pat Smith for all their long hard work. He also thanked all his
colleagues for all their hard work and also a thank you to Ryan Companies.
Item #12
None.
Item #13
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June 26, 2006
M/Kirsch, S/Drummond that the followinQ claims and pavroll be approved.
U.S. Bank (5-15-06)
Section 8 Checks: 109999 - 110148
HRA Checks: 29474 - 29500
TOTAL
U.S. Bank (6-19-06)
Section 8 Checks: 110149 - 110300
HRA Checks: 29501 - 29537
TOTAL
Motion carried 5-0.
$187,368.50
$ 63,667.86
$ 251,036.36
$191,558.12
$ 70,342.82
$ 261,900.94
At 9:05 p.m., by unanimous consent, the meeting was continued to Friday June 30 at 8:30
a.m. in the Richfield City Hall Council Chambers.
Date Approved: July 17. 2006
~~
Nancy Gibbs
City Clerk
if
CITY OF RICHFIELD, MINNESOTA
Bid Opening
May 25, 2006
11 :00 a.m.
2006 Demolition of Cedar Avenue-
Apartment Properties
Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff
was called by Nancy Gibbs, City Clerk, who announced that the purpose of the meeting
was to receive, open and read aloud bids for 2006 Demolition of Cedar Avenue
Apartment Properties, as advertised in the official newspaper on May 4 & 11, 2006 and
the Construction Bulletin on May 5 & 12, 2006.
Nancy Gibbs, City Clerk
Katia Medvetski, Community Development Representative
Cheryl Krumholz, City Manager Representative
The following bids were submitted and read aloud:
Present:
Bidder's Name Bid Security Lump Sum Bid Price
Carl Bolander & Sons Co. Provided $93,210.00
Doboszenski & Sons, Inc. Provided $85,425.00
Ginther Excavating, Inc. Provided $89,000.00
Max Steninger, Inc. Provided $126,850.00
Rachel Contracting Provided $119,113.00
Ramsey Excavating Co., Inc. Provided $147,210.00
Veit & Company, Inc. Provided $110,530.00
Wickenhauser Excavating, Inc. Provided $135,750.00
C & H Excavating Co. Provided $92,000.00
Michael Scott Construction Provided $83,279.00
The City Clerk announced that the bids would be tabulated and considered at the June 26,
2006 Special HRA Meeting.
\~.......~..,.
City Clerk