07-19-04 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
July 19, 2004
The meeting was called to order by Chair Harms at 7:00 p.m.
HRA Members
Present:
Thomas Harms; Joan Heimberger; Martin Kirsch; Dan Linnihan; and Kristal
Stokes.
Staff Present:
Steve Devich, Acting Executive Director/Acting City Clerk; Bruce
Palmborg, Community Development Director; and Bruce Nordquist,
Housing and Redevelopment Manager.
Item #1
M/Helmberger, S/Stokes to approve the minutes of ReQular HRA MeetinQ of June 21, 2004.
Motion carried 5-0.
Item #2
The agenda was approved by unanimous consent.
Item #3
HRA Meeting Minutes
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July 19, 2004
A. Approved contract with Julianne Schwietz to work with Livable Communities Team beginning
July 220,2004 for 12 months S.R. No. 28
B. Approved continuing public hearing to August 16, 2004 authorizing sale of 6805-12th Avenue
to Twin Cities Habitat for Humanity for single family home development S.R. No. 29
C. Commissioner Stokes requested this item be removed from the consent calendar for
discussion.
D. Approved resolution approving the first amendment to the Amended and Restated Contract
for Private Redevelopment by and between the Housing and Redevelopment Authority in and
for the City of Richfield and Richfield State Agency S. R. No. 31
HRA RESOLUTION NO. 927
RESOLUTION APPROVING FIRST AMENDMENT TO
AMENDED AND RESTATED CONTRACT FOR PRIVATE
REDEVELOPMENT BY AND BETWEEN THE HOUSING
AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD AND RICHFIELD STATE AGENCY, INC.
This HRA Resolution appears as HRA Resolution No. 927 in HRA Resolution Book NO.7.
MIStokes, S/Helmberger to approve the Consent Calendar as amended.
Motion carried 5-0.
3C. Consideration of approval of resolution accepting service, waiving timeliness of
service of land title summons, and consenting to land registration proceedings for the Best
Buy Campus S.R. No. 30
Community Development Director Palmborg reviewed Staff Report No. 30 regarding a
resolution accepting service, waiving timeliness of service of land title summons, and consenting to
land registration proceedings for the Best Buy Campus.
MIStokes, S/Helmberger 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. 926
RESOLUTION AUTHORIZING ACCEPTING SERVICE, WAIVING
TIMELINESS OF SERVICE OF LAND TITLE SUMMONS,
AND CONSENTING TO LAND REGISTRATION PROCEEDING
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 926 in HRA
Resolution Book NO.7.
Item #4
:-
HRA Meeting Minutes
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July 19, 2004
Housing and Redevelopment rv1~~C3ger Nordquist reviewed Staff Report No. 32 regarding a
Richfield HRA revised Administrative prah 'fofSection 8 Housing Assistance Program.
Commissioner Heimberger asked if this would place an undo burden on existing clients.
Housing and Redevelopment Manager Nordquist stated after a review of files that it
shouldn't place a hardship on any of our clients.
Chair Harms asked if the reduced funding from HUD is covered in the budget.
Mr. Nordquist responded that Richfield is receiving less from HUD for clients, but that with
the Fair Market Rent Adjustment by the HRA in June in combination with the requested action,
sufficient rent assistance would be available.
M/Linnihan, S/Stokes to close the public hearina.
Motion carried 5-0.
M/Linnihan, S/Stokes to approve the Housina and Redevelopment Authoritv's revised
Administrative Plan for the Section 8 Housina Assistance Proaram.
Motion carried 5-0.
Item #5
Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 33 regarding
consideration of a third amendment to the Purchase and Private Redevelopment Agreement with
the Penn Place Townhouse development.
Commissioner Stokes asked who should have made the disclosure regarding the soil
conditions.
Housing and Redevelopment Manager Nordquist responded that early in the 1990's when
the Richfield Rediscovered program began, we would routinely evaluate soil conditions. Poor soils
never occurred and the evaluation was expensive and eventually dropped from procedures.
Chair Linnihan asked if it is generally the buyer or seller's responsibility to find the soil
condition.
Mr. Nordquist responded that the property was sold as is, but that both parties assumed the
soils were buildable.
Chair Harms said what staff is really asking is to change the development agreement and
accept a financial obligation that is not the HRA's. Chair Harms then asked what is the cost.
David Gepner, the developer, stated the cost is $45,767.
Commissioner Linnihan stated that he is uncomfortable with just paying a portion of this
cost because it is the developer's responsibility.
HRA Meeting Minutes
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July 19, 2004
Mr. Nordquist responded that staff went to other sources, but because there was no soil
contamination, other funding was not available.
Chair Harms asked if Mr. Gepner would have gone ahead with the project but for the
$45,000.
Mr. Gepner said a neighbor may have observed that fill soils were brought in by the
demolition contractor hired by the HRA.
Mr. Gepner also stated that they would probably go ahead with the project because it was
important to stay on schedule.
Chair Harms stated that he is concerned about the policy and precedent in going back on a
closed deal. Mr. Harms wants staff to go back and look at other sources of funding including the
demolition contractor and carefully look at the bills being brought here.
Commissioner Linnihan stated that he agreed and asked if staff could look at some
alternative to keep the project cash flow going pending a final determination.
Mr. Gepner stated that the problem was discovered before the closing, but that it wasn't
handled at the June HRA meeting.
Chair Harms stated that he understood, but that he still had concern about the precedent
setting impact of this decision.
The item was tabled to a future meeting by unanimous consent.
Item #6
No report.
Item #7
MIStokes, S/Kirsch that the followina claims and pavroll be approved.
FIRSTAR BANK
Section 8 Checks: 106469 - 106601
HRA Checks: 27196 - 27228
$189,172.58
$222,298.80
Motion carried 5-0.
The meeting was adjourned by unanimous consent at 7:30 p.m.
HRA Meeting Minutes
Au~ust
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July 19, 2004
en L. Devich
Acting Executive Director