10-25-06 Special
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Meeting
October 25, 2006
The meeting was called to order by Chair Sandahl at 7:01 p.m. at the Water Plant
Conference Room.
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;
Cheryl Krumholz, Recording Secretary; and John Dean, HRA Attorney.
Item #1
Community Development Manager Smith presented Staff Report No. 79.
HRA Attorney Dean reviewed proposed changes to the resolution. He also discussed the
four different groups of property owned by the HRA or City, which were acquired under different
funding sources.
Commissioner Heimberger said this appears to be very creative financing.
HRA Attorney Dean explained it is a way to deal with this matter or repaying the MAC
funds.
Commissioner Gepner asked about the cost if the fourth amendment is not approved.
HRA Attorney Dean explained there could be a cost to the City but there is still a dispute
with MAC to determine if repayment is necessary.
HRA Special Meeting Minutes
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October 25, 2006
Commissioner Drummond asked about the closing date.
Molly Carson, Ryan Companies US, Inc. representative, said the anticipated date is
November 10, 2006.
M/Kirsch, SlDrummond that the followina amended 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. 1001
RESOLUTION APPROVING FOURTH AMENDMENT TO
CONTRACT FOR PRIVATE DEVELOPMENT
Motion carried 5-0. This HRA Resolution appears as HRA Resolution NO.1 001.
Item #2
Community Development Manager Smith presented Staff Report No. 80. He also
explained the proposed changes to the resolution.
MlDrummond, S/Gepner that the followina amended 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.1 002
RESOLUTION APPROVING
ASSIGNMENT AND SUBORDINATION OF CONTRACT FOR PRIVATE DEVELOPMENT
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 1002.
Item #3
HRA Attorney Dean presented Staff Report No. 81. The First Amendment to the Contract
previously approved by the HRA authorized reimbursement to Ryan for certain increased costs
resulting from a delay in the HRA's ability to negotiate deed restrictions with the MAC applicable to
certain parcels that are to be conveyed to Ryan, up to a maximum reimbursement of $500,000.
State law requires tax increment derived funds, which may ultimately be in the form of a loan, be
adopted by an interfund loan resolution. Any unpaid portion would be returned to the HRA. The
resolution fixes the interest rate on an annual basis based upon Statute and provides a mechanism
for tracking the use of tax increment.
Commissioner Drummond asked about there being any cost over runs associated with the
delay.
HRA Special Meeting Minutes
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October 25, 2006
HRA Attorney Dean replied that is anticipated, but none has been seen. The
reimbursement amount is capped at $500,000.
HRA Attorney Dean explained the early incentive concept remains in the Fourth
Amendment.
Molly Carson, Ryan Companies US, Inc. representative, provided an update on the last two
remaining properties.
Commissioner Drummond asked about the source of the interfund loan.
HRA Attorney Dean explained there are a number of sources in the HRA account and will
be determined by what is most liquid and available.
M/Helmberger, SlDrummond 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.1 003
RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN
COSTS IN CONNECTION WITH CEDAR POINT PROJECT AREA
Motion carried 5-0. This HRA Resolution appears as HRA Resolution NO.1 003.
Item #4
None.
The meeting was adjourned by unanimous consent at 7:27 p.m.
~J,~
Cheryl ~umh z
Recording Secretary
teven Ii. Devich
Executive Director
Date Approved: December 18. 2006