08-19-02 Regular
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HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 19, 2002
The meeting was called to order by Chair Harms at 7:00 p.m.
HRA Members
Present:
Thomas Harms; Kristal Stokes; Joan Heimberger; and Dan Linnihan.
HRA Members
Not Present:
Michael Sandahl.
Staff Present:
Steven Devich, Acting Executive Director; Bruce Palmborg, Community
Development Director; Bruce Nordquist, Housing and Redevelopment
Manager; Chris Regis, Finance Manager; and Deborah Guiher, Deputy
City Clerk.
M/Helmberger, S/Stokes to approve the minutes of the Reqular HRA Meetinq of July 15,
2002.
Motion carried 4-0.
Item #1
No one wished to address the HRA,
HRA Meeting Minutes
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August 19, 2002
Item #2
The agenda was approved by unanimous consent.
Item #3
Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 32 regarding a
resolution approving a Business Subsidy Agreement between the HRA and Gramercy Corporation
for the City Bella project.
Mr. Nordquist reviewed a memorandum from James B. McComb, McComb Group, Ltd.,
regarding why redevelopment assistance is necessary.
Larry Wozniczka, 6744 Wentworth Avenue, asked if there is a sale price for the land after
the subsidy or will the subsidy cover all the acquisition costs.
Sid Inman, Ehlers and Associates, Inc., answered that under the current assumptions, the
assumed total cost of land will be $7.4 million. The developer pays $3.3 million of the cost, or
$20,000 per unit, which is similar to other communities, leaving a new subsidy of $4 million.
Mr. Wozniczka asked what the rate of interest is on the assumed business subsidy on a 25-
year tax increment financing (TI F) project.
Mr. Inman answered 7.5%.
Mr. Wozniczka stated the rate of interest is too high in today's market and that the HRA
should reconsider that number. He encouraged the HRA to reach a shorter term than 25 years.
He also asked why the Villa is included in the TIF project if the two lots have been cleared and
belong to the HRA. These lots appear on the tax records as zero based. The Villa isn't
appropriate for TIF and shouldn't be a part of the project. Again he asked the HRA to reconsider
shortening the term of TIF and to exclude the Villa from the TIF.
Chair Harms clarified that 25-years is the appropriate time frame for the TIF requirements.
Housing and Redevelopment Manager Nordquist responded to Mr. Wozniczka that the
vacant land does have a base value. One lot is owned by the HRA and the other by Lakeshore
Condominiums. A tax value cannot be determined until it has been separated from the Lake Shore
Drive Condominium property. The other lot is privately owned.
MIStokes, S/Helmberger to close the public hearinq.
Motion carried 4-0.
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:
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HRA Meeting Minutes
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August 19, 2002
HR~ RES<OLUTION NO. 857
RESOLUTION APPROVING A BUSINESS SUBSIDY
AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND
GRAMERCY CORPORATION
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 857 in HRA
Resolution Book NO.7.
Item #4
Community Development Director Palmborg reviewed Staff Report No. 33 regarding a
resolution approving the 2003 Proposed HRA Budget and Tax Levy and the 2002 Revised HRA
Budget.
Mr. Palmborg also reviewed the overall programmatic and financial aspects of the proposed
budget with special attention to the major revenue and expenditure portions.
Commissioner Linnihan asked if other communities are also running into problems with
financing.
Mr. Palmborg answered yes.
Commissioner Heimberger said she had discussed the City's bond rating with Mr. Inman
before the start of this evening's meeting. She was pleased to report the bond rating as AA-3.
Chair Harms stated that aid is needed in order to compete with larger cities. Richfield was
a leader in the Twin Cities area and this can be seen in the value of our homes and in our schools.
He stated his appreciation to those that have made this happen.
M/Helmberger, S/Stokes 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. 858
RESOLUTION APPROVING PROPOSED 2003 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2003 TAX LEVY
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 858 in HRA
Resolution Book NO.7.
M/Stokes, S/Linnihan 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. 859
RESOLUTION AUTHORIZING REVISION OF THE 2002 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
HRA Meeting Minutes
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August 19, 2002
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 859 in HRA
Resolution Book NO.7.
Item #5
No report.
Item #6
M/Helmberger, S/Stokes that the followinq claims and pavroll be approved:
FIRSTAR BANK
Section 8 Checks: 103582 - 103694
HRA Checks: 25375 - 26225; 26240 - 26272
$167,840.42
$261,362.18
Motion carried 4-0.
Community Development Director Palmborg stated that in 1999 the HRA and City Council
authorized the sale of temporary financing for Richfield Rediscovered. It is time to convert the
financing to a fixed rate. Ehlers and Associates, Inc. will be converting this financing to a fixed rate
with actions by the HRA and City Council required.
Acting Executive Director Devich distributed a preliminary Lyndale Gateway schedule and
said that this schedule would be sent to all property owners in the Lyndale Gateway project area
this week.
Date Approved: September 16. 2002
The meeting was adjourned by unanimous consent
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Deborah Guiher
Deputy City Clerk
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