10-18-04 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
October 18, 2004
The meeting was called to order by Chair Harms at 7:00 p.m.
HRA Members
Present:
Thomas Harms; Martin Kirsch; Dan Linnihan; and Kristal Stokes.
HRA Members
Not Present:
Joan Heimberger.
Staff Present:
Bruce Palmborg, Acting Executive Director; John Stark, Assistant
Community Development Director; Bruce Nordquist, Housing and
Redevelopment Manager; and Cheryl Krumholz, Recording Secretary.
Item #1
MIStokes, S/Linnihan to approve the minutes of the Special Housino and Redevelopment
Closed Executive Session of September 20. 2004 and the Reoular HRA Meetino of September 20,
2004.
Motion carried 4-0.
Item #2
The agenda was approved by unanimous consent.
HRA Meeting Minutes
-2-
October 18, 2004
Item #3
A. Approved motion in support of the Cedar Corridor Plan S.R. No. 45
B. Approved authorization to purchase real property located at 6405 Vincent Avenue S.R. No.
46
C. Approved continuation to November 15, 2004 of the public hearing regarding sale of 6329-
14th Avenue to Greater Metropolitan Housing Corporation for single family home development
S.R. No. 47
M/Stokes, S/Kirsch to approve the Consent Calendar.
Motion carried 4-0.
Item #4
Acting Executive Director Palmborg presented Staff Report No. 48 regarding consideration
of an approval of a resolution authorizing the sale of real property at Emerson Avenue between
78th Street and vacated 77th Street to CSM Corporation.
Larry Wozniczka, 6744 Wentworth Avenue, questioned how the HRA got ownership of this
property when typically, vacated land goes to the adjoining property owner.
Acting Executive Director Palmborg explained the HRA came into ownership because the
HRA owns the adjoining property.
Mr. Wozniczka encouraged the HRA to delay action until the Lyndale Avenue bridge
reconstruction design is finalized because slivers of land may be required to be traded between
CSM and public needs.
Acting Executive Director Palmborg stated Public Works indicates the property would not
be needed for transportation purposes.
Chair Harms asked if the sale was at fair market value.
Acting Executive Director Palmborg said yes.
M/Kirsch, S/Stokes to close the public hearinQ.
Motion carried 4-0.
M/Stokes, S/Linnihan 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 Meeting Minutes
-3-
October 18, 2004
.>~~&-RESOLUTION NO. 933
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
EMERSON AVENUE BETWEEN 78TH AND OLD 77TH STREETS
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 933 in HRA
Resolution Book NO.7.
Item #5
Assistant Community Development Director Stark presented Staff Report No. 49 regarding
consideration of an approval of contract for private redevelopment with the Ryan Companies, Inc.
for redevelopment of the Cedar Point Area.
Chair Harms stated the proposed tax abatement is not like tax increment financing. He
added the HRA and City are not at risk for payment of funds if taxes are not received.
Chair Harms asked about the court status of the relocation benefit issue and who bears the
relocation risk.
Mr. Stark explained time is needed to understand the decision and how to best address it.
It is hoped the City and developer can come to an agreement regarding the 66th Street
improvements and their funding.
Chair Harms stated Ryan Companies needs to understand they are not indemnified on
relocation benefits; the developer bears the risk in the structure of the contract with the
homeowners.
Commissioner Linnihan asked about the projected tax capacity of the development upon
completion.
Sid Inman, Ehlers & Associates, explained the tax capacity.
Commissioner Linnihan asked about the length of the abatement period.
Mr. Inman stated the maximum length is 15 years.
Commissioner Linnihan asked what happens to the project if the Hennepin County grant
does not happen.
Mr. Stark explained if the grant is not received, Ryan says the project is not feasible. Other
financing options could include Hennepin County tax abatement or returning to the State or
Metropolitan Airports Commission. If no options are available, there is no project.
Commissioner Kirsch stated Randy Johnson, Hennepin County Commissioner representing
Richfield, supports the Hennepin County grant.
Acting Executive Director Palmborg added that Hennepin County is incredibly supportive of
this effort.
HRA Meeting Minutes
-4-
October 18,2004
Mr. Stark said the timing is to have an approved contract, receive the grant and proceed
with the project.
Chair Harms stated this is a great development.
M/Kirsch, S/Stokes to approve a Contract for Private Redevelopment with the Rvan
Companies, Inc. for redevelopment of the Cedar Point area pendino minor modifications bv
Housino and Redevelopment Authoritv leoal counsel.
Motion carried 4-0.
Commissioner Stokes asked about the noise impacts on the buildings.
Mr. Stark explained Ryan Companies has agreed to work cooperatively with Orfield Labs
regarding airport noise impacts.
Commissioner Kirsch stated this begins the process to redevelop the east side.
The HRA thanked staff for their efforts on this challenging area,
Item #6
None.
Item #9
M/Stokes, S/Linnihan that the followino claims and pavroll be approved.
FIRSTAR BANK
Section 8 Checks: 106884 - 107019
HRA Checks: 27289 - 27322
$ 215,931.86
$ 54,337.77
Motion carried 4-0.
The meeting was adjourned by unanimous conse
Date Approved: November 15" 2004
~~
Cheryl rumholz
Recording Secretary