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01-21-03 Regular HOUSING AND RED.EVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting January 21, 2003 The meeting was called to order by Chair Harms at 7:00 p.m. HRA Members Present: Thomas Harms; Joan Heimberger; Kristal Stokes; and Dan Linnihan. HRA Members Not Present: Michael Sandahl. Staff Present: Samantha Orduno, Executive Director; Steven Devich, Acting City Clerk; Bruce Palmborg, Community Development Director; Bruce Nordquist, Housing and Redevelopment Manager; and John Dean, City Attorney. Item #1 M/Helmberger, S/Stokes that Thomas Harms be elected as Chair of the HRA for 2003. M/Harms, S/Stokes that Joan Helmberoer be elected as Vice-Chair of the HRA for 2003. M/Linnihan, S/Stokes that Michael Sandahl be elected as Secretary of the HRA for 2003. Motions carried bv unanimous consent. HRA Meeting Minutes -2- January 21, 2003 2002. M/Stokes, S/Linnihan to approve the minutes of Reqular HRA Meetinq of December 16. Motion carried 4-0. Item #3 M/Linnihan, S/Stokes to approve the aqenda. Motion carried 4-0. Item #4 A. Approved Apartment Remodeling Program expenditure of $5,000 at 7544 Oliver Avenue S.R. NO.2 B. Approved resolution authorizing purchase of 6945 Clinton Avenue for rehabilitation under New Home Program S.R. NO.3 HRA RESOLUTION NO. 877 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6945 CLINTON AVENUE FOR THE NEW HOME PROGRAM This HRA Resolution appears as HRA Resolution No. 877 in HRA Resolution Book NO.7. C. Approved of resolutions designating official depositories of HRA for 2003, including collateral S.R. NO.4 RESOLUTION NO. 878 RESOLUTION DESIGNATING THE M&I MARSHALL & ILLSLEY BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2003 AND APPROVING COLLATERAL RESOLUTION NO. 879 RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2003 RESOLUTION NO. 880 RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2003 These HRA Resolutions appear as HRA Resolution No.'s 878, 879 and 880 in HRA Resolution Book NO.7. HRA Meeting Minutes -3- January 21, 2003 D. Approved resolution designatin~LRictlfield Sun-Current as official newspaper and Star Tribune as second official newspaper ofHRAfor 2003S.R. NO.5 HRA RESOLUTION NO. 881 RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2003 This HRA Resolution appears as HRA Resolution No. 881 in HRA Resolution Sook NO.7. E. Approved designating Steven L. Devich, Administrative Services Director, as Acting Executive Director of HRA for 2003 S.R. NO.6 M/Stokes, S/Helmberger to approve the Consent Calendar. Motion carried 4-0. Item #5 Housing and Redevelopment Manager Nordquist reviewed Staff Report NO.7 regarding consideration of a Family Affordable Housing Program in cooperation with the Metropolitan Council. Commissioner Stokes asked about the "shelter rent" as described in the Cooperation Agreement. Housing and Redevelopment Manager Nordquist stated that they are paying property taxes like any homeowner. Commissioner Linnihan asked what the source of income was to constitute the 30% requirement. Cecile Sedor, Metropolitan Council, stated that this preference would be that the income criteria be fulfilled by work income. Commissioner Heimberger asked what happens if their income equals the maximum limit after they've been renting through the program. Cecile Sedor responded that the rent would be adjusted accordingly. Chair Harms asked if the program is in jeopardy with state cuts. Cecile Sedor responded no, it is not and there are other sources of revenue for the program if short falls occur. M/Helmberger, S/Stokes to recommend that the Citv Council support the implementation of the Metropolitan Council Familv Affordable Housina Proaram. Motion carried 4-0. HRA Meeting Minutes -4- January 21, 2003 Item #6 City Attorney Dean reviewed Staff Report No. 8 regarding a resolution approving a second amendment and restated contract for private redevelopment between HRA and the Gramercy Corporation and a resolution declaring officiai intent of HRA to reimburse certain expenditures from proceeds of bonds to be issued by the HRA. Mr. Dean first highlighted the housekeeping changes to the agreement. Mr. Dean then focused on the primary amendment which is a change in the form of financial assistance. The taxable note of $8,473,460 may be replaced with a tax-exempt note upon their satisfactory fulfillment of certain conditions. These conditions are: . The TIF Note will be i~sued initially as a taxable pay-as-you-go note similar to the Original Contract. . When the Redeveloper has sufficiently completed the new development to provide a secure flow of tax increment revenues, the HRA will refinance the original TIF Note through issuance of a tax-exempt TIF Note to R~developer's lender (or another purchaser arranged by Redeveloper). . Upon issuance of the tax-exempt TIF Note, covenants of the Redeveloper that create "private security" or "private payments" under federal tax law are removed. . The qualified costs to be reimbursed with proceeds of the TIF Note are revised and specified. Under the Original Contract, the TIF Note was to be issued as reimbursement for land acquisition costs; under the Amended Contract, proceeds of the TIF Note will be used to pay for parking and site costs. Mr. Dean stated that the developer has intended from the onset that they have the ability to convert the tax-increment revenue note with a tax-exempt note. Mr. Dean stated that the amended contract is consistent with the financial plan for City Bella as previously approved by the HRA. MIStakes, 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. 882 RESOLUTION APPROVING SECOND AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT WITH GRAMERCY CORPORATION Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 882 in HRA Resolution Book NO.7. MIStakes, S/Linnihan that the followinq resolution be adopted. that it be spread in the resolution book and that it be made part of these minutes: . HRA Meeting Minutes -5- January 21, 2003 HRARESOLUTION NO. 883 DECLARING THE OFFICIAL INTENT OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE AUTHORITY Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 883 in HRA Resolution Book NO.7. Item #7 Executive Director Orduno distributed copies of the City's Annual Report. Item #8 M/Linnihan, S/Helmberger that the followinq claims and pavroll be approved: FIRSTAR BANK Section 8 Checks: 104147 - 104255 HRA Checks: 26436 - 26480 $171,900.98 $177,244.62 Motion carried 4-0.