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04-15-02 Regular I I I 1_ HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting April 15, 2002 The meeting was called to order by Chair Harms at 7:00 p.m. HRA Members Present: Thomas Harms; Dan Linnihan; Kristal Stokes; Joan Heimberger; and Michael Sandahl (arrived at 7:02 p.m.). Staff Present: Samantha Orduno, Executive Director; Bruce Palmborg, Community Development Director; Bruce Nordquist, Housing and Redevelopment Manager; Steven Devich, Acting City Clerk; and John Dean, City Attorney. M/Helmberger, S/Stokes to approve the minutes of the (1) Reqular HRA Meetinq of March 18, 2002 and (2) Special Concurrent HRA City CouncillPlanninq Commission Meetinq of March 19, 2002. Motion carried 4-0. Item #1 No one wished to address the HRA. HRA Meeting Minutes -2- April 15, 2002 Item #2 M/Stokes, S/Helmberger to approve the aqenda. Motion carried 4-0. Item #3 A. Approved resolutions (1) calling for public hearing by HRA for May 20, 2002 on proposed modification of policies and criteria for awarding business subsidies; (2) requesting City Council call for public hearing on modification to redevelopment plan for Richfield Redevelopment Project Area and establishment of City Bella Tax Increment Financing District; and (3) calling for public hearing by HRA for June 17, 2002 on approval of business subsidy to Gramercy Corporation S.R. No. 14 HRA RESOLUTION NO. 848 RESOLUTION CALLING FOR A PUBLIC HEARING BY THE RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY ON THE PROPOSED MODIFICATION OF POLICIES AND CRITERIA FOR AWARDING BUSINESS SUBSIDIES HRA RESOLUTION NO. 849 RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF RICHFIELD CALL FOR A PUBLIC HEARING ON A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE ESTABLISHMENT OF THE CITY BELLA TAX INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT) HRA RESOLUTION NO. 850 RESOLUTION CALLING FOR A PUBLIC HEARING BY THE RICHFIELD HOUSING AND REDEVELOPMEt--H AUTHORITY ON THE APPROVAL OF A BUSINESS SUBSIDY TO GRAMERCY CORPORATION These HRA Resolutions appear as HRA Resolution No.'s 848, 849 and 850 in HRA Resolution Book No.7. B. Approved environmental response fund grant agreement between HRA and Hennepin County's Department of Environmental Services S. R. No. 15 M/Helmberger, S/Stokes to approve the consent calendar. Motion carried 5-0. I I I I I I HRA Meeting Minutes -3- April 15, 2002 Item #4 Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 16 regarding consideration of receiving concept plans submitted by Gramercy Corporation and a resolution approving the amended and restated contract for private redevelopment between HRA and the Gramercy Corporation. Mr. Nordquist described the project components of the revised City Bella project. The major components of the project are: . The Gramercy Club will have 117 cooperative units instead of the 251 rental apartments that were originally planned; . The tower and apartment include approximately 10,100 square feet of retail space that will be at street level; . An office/retail building has been changed to a 38 unit rental apartment building; . The 34-unit villa has been downsized and reconfigured as 14 townhomes; and . The plaza space will remain approximately one acre in size Mr. Nordquist stated that City Attorney John Dean was available for questions regarding the legal aspects of the project, and Sid Inman of Ehlers and Associates, Inc. was available to answer financial questions. Mr. Nordquist stated that parking is another issue that needed to be carefully reviewed. He recited the parking standards used by the City of Richfield, then compared each appropriate portion of the City Bella project with the corresponding standard. He stated that the minimum parking spaces needed for the tower, retail and apartment was 320 spaces, while the project provides for 389 spaces for these uses. He stated that the town home component requires 28 spaces, while 43 are provided; 28 of which are underground. Chair Harms asked if staff had adequately covered planning for a 5,000 square foot restaurant, a VFW and all the housing units being used at the same time with respect to parking. Mr. Nordquist responded that the parking consultant, Walker Parking Systems, had reviewed the proposal and determined parking was adequate. Commissioner Sandahl stated that in his experience while the parking may seem short when a project first opens, after a year or so and the parking levels off to normal, the parking appears to be more than adequate. Mr. Nordquist also reviewed the housing component of this project. He stated that while there is a great range in price range in this project, there is an adequate amount of affordable housing for seniors in this project. Mr. Nordquist then presented an overall inventory of housing units in the Lakes at Lyndale/City Bella downtown area. Mike Conlan, Gramercy Corporation, distributed the latest drawings of the proposed City Bella project. The corner at 66th Street and Lyndale Avenue would feature the Gramercy Club component, which would be 15 stories. The ground floor would feature retail and a 5,000 square foot restaurant. He stated that next to the Gramercy Club would be a 38-unit apartment building. HRA Meeting Minutes -4- April 15, 2002 Mr. Conlan stated that revised plans to be presented next week would include showing an opportunity for a skyway across Lyndale Avenue. Mr. Conlan stated that the third component of the project would be the townhouse condominium project featured along Lake Shore Drive. He said the fourth component of the project would be the plaza area. Mr. Conlan stated that this area would contain a great deal of open space with a tree canopied path connecting to the Wood Lake Nature Center. Mr. Conlan reported that the 117 unit Gramercy Park project had approximately 80 units of the 117 units pre-leased. He stated that the project is drawing from Richfield, Edina, Bloomington, Eden Prairie and folks who have relatives in Richfield. He stated that he would anticipate completing the entire project from start to finish in 18 to 20 months. Chair Harms asked about the skyway provision in the contract. He asked if it was to be the City's responsibility to construct and maintain it. City Attorney Dean responded that the details had not been worked out yet, but it was not the City's intention to build and/or maintain a skyway. Mr. Nordquist stated that this project may be a future project request for livable communities funding. Chair Harms asked if Mr. Conlan was comfortable with the parking. Mr. Conlan stated that he is comfortable with the parking and he concurred with Commissioner Sandahl's opinion of parking concerns. Sid Inman, Ehlers and Associates, Inc., reviewed the financial feasibility of the project. He described the "look back" provision in the contract. Chair Harms asked what should be included in the calculation of the "but for" test. He stated that he was interested in how the HRA would handle the town homes. Mr. Inman said that since the value of the town homes was adding to the available Tax Increment assistance, staff was not reviewing them at their future time of safe. Chair Harms suggested that the town homes be included in the over all "but for" test. Mr. Inman agreed and said they would try to incorporate them. John Dean stated that a separate "look back" for the third component might create timing problems to the extent that the economic performance of that component might impact on the component one note. Mr. Dean further stated that the agreement, as drafted, does permit the HRA to take into consideration all available economic data for the entire development at the time of the "look back" on the first component; and this will likely provide the HRA with all of the information needed. Commissioner Sandahl did not wish to second-guess the staff in restructuring. Mr. Inman stated that he felt that we should look at the portions of the project being assisted, but they could look at the issue further. I I I HRA Meeting Minutes -5- April 15, 2002 I Chair Harms stated that he wants staff to have the right to look back at whatever they see as appropriate in the "look back". Mr. Harms stated that he is satisfied that John Dean make the final decision. Mr. Dean stated if the change is substantive, staff would return the agreement to the HRA for further consideration. Commissioner Linnihan stated that he agreed that it was necessary to keep the options open in the "look back". M/Sandahl, S/Stokes to receive the concept plan submitted by Gramercy Corporation and direct staff to review the plan and by resolution, approve the amended and restated Contract for Private Redevelopment between the Housinq and Redevelopment Authority and Gramercy Corporation and 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. 851 RESOLUTION APPROVING AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT WITH GRAMERCY CORPORATION Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 851 in HRA Resolution Book No.7. I Item #5 M/Linnihan, S/Helmberger that the followinq claims and payrolls be approved: FIRSTAR BANK Section 8 Checks: 103119 - 103234 HRA Checks: 25329 - 25340; 26075 - 26096 $171,241.06 $37,378.41 Motion carried 5-0. I The meeting was adjourned by unanimous con{ Date Approved: May 20, 2002 d Tom H::lrms \ .",Af':..- -, /7 c~~ JI ~ . /'" v- '________.. ~lcL / ~ ')1/f,~\ 1"1...1.. Steven Devich I Samantha o rdu nO v ,I / Acting City Clerk Executive Director x Q~<1Q '-..