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10-21-02 Regular I I HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting October 21, 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/Acting City Clerk; Bruce Palm borg, Community Development Director; and Bruce Nordquist, Community Development Manager. M/Helmberger, S/Stokes to approve the minutes of (1) Special Concurrent Meetinq of the HRA/Citv Council/Planninq Commission of September 16,2002; (2) Reqular HRA Meetinq of September 16, 2002; and (3) Special Concurrent Worksession of the HRA/Citv Council/Planninq Commission of September 16, 2002. Motion carried 4-0. I Item #1 No one wished to address the HRA. HRA Meeting Minutes -2- October 21, 2002 Item #2 I The agenda was approved by unanimous consent. Item #3 A. Approved resolution authorizing the issuance of Certificates of Completion to KEY -LAND HOMES for 7241 Second Avenue and 6929 Queen Avenue, Spencer Dahl & Rachelle A. Reynolds for 6856 Park Avenue, Twin Cities Habitat for Humanity for 7039 Fifth Avenue, and Affordable Suburban Housing, Inc. for 6444 Clinton Avenue S.R. No. 36 HRA RESOLUTION NO. 861 RESOLUTION AUTHORIZING ISSUANCE OF A CERTIFICATE OF COMPLETION FOR THE NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT 7241 SECOND AVENUE, 6929 QUEEN AVENUE, 6856 PARK AVENUE, 7039 FIFTH AVENUE, AND FOR THE REMODELING IMPROVEMENTS AT 6444 CLINTON AVENUE This HRA Resolution appears as HRA Resolution No. 861 in HRA Resolution Book NO.7. B. Approved resolution authorizing the use of fees for services provided under the Housing and I Redevelopment Authority Programs S.R. No. 37 HRA RESOLUTION NO. 862 RESOLUTION AUTHORIZING THE USE OF FEES FOR SERVICES PROVIDED UNDER HOUSING AND REDEVELOPMENT AUTHORITY PROGRAMS This HRA Resolution appears as HRA Resolution No. 862 in HRA Resolution Book NO.7. C. Approved proposed adjustment of payment standard for the Section 8 rent assistance program S.R. 38 D. Approved proposal for services with LHB Engineers and Architects for the planning and design of a new home at 6819 Oliver Avenue S.R. 39 E. Approved resolution calling for a public hearing eliminating parcels from the Interchange West and Lyndale Gateway Tax Increment Financing District within the Richfield Redevelopment Project Area S.R. No. 40 HRA RESOLUTION NO. 863 RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ELIMINATION OF PARCELS FROM THE INTERCHANGE WEST AND L YNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT WITHIN THE RICHFIELD REDEVELOPMENT PROJECT AREA IN THE CITY OF RICHFIELD I This HRA Resolution appears as HRA Resolution No. 863 in HRA Resolution Book NO.7. - ------ ---- --- ----- - --- ~- -~---~ -~-- I I I HRA Meeting Minutes -3- October 21, 2002 F. Approved resolution requesting the City Council to call a public hearing on the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and the establishment of the Lyndale Gateway West Tax Increment financing District for December 10, 2002 S.R. NO.41 HRA RESOLUTION NO. 864 RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF RICHFIELD CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF RICHFIELD REDEVELOPMENT PROJECT AREA AND THE ESTABLISHMENT OF THE L YNDALE GATEWAY WEST TAX INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT) This HRA Resolution appears as HRA Resolution No. 864 in HRA Resolution Book NO.7. MIStokes, S/Linnihan to approve the consent calendar. Motion carried 4-0. Item #4 Acting Executive Director Devich introduced Community Development Manager Bruce Nordquist who was presenting this item. Mr. Nordquist reviewed Staff Report No. 42 regarding a public hearing and consideration of resolution approving a Business Subsidy Agreement between the Housing and Redevelopment Authority and Gramercy Corporation for the City Bella Project. MIStokes, S/Helmberger to close the public hearinq. Motion carried 4-0. Sid Inman, Ehlers & Associates, Inc., summarized the criteria and financial considerations used in the "but for" test and basis for the Business Subsidy Agreement. 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: HRA RESOLUTION NO. 865 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. 865 in HRA Resolution Book NO.7. HRA Meeting Minutes -4- October 21, 2002 Item #5 I Community Development Manager Nordquist reviewed Staff Report No. 43 regarding consideration of a resolution authorizing the sale of real property within City Bella: Lot 3, 4, 5, and 18, Block 3, "Fairwood Shores," Hennepin County. Mr. Nordquist summarized the property acquisitions to date and the status of the properties yet to be acquired. Larry Wozniczka, 6744 Wentworth Avenue, asked what the sale prices of the lots were. Mr. Nordquist reported that the value of the lots is $450,000. M/Helmberger, S/Stokes to close the public hearinQ. Motion carried 4-0. M/Linnihan, 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. 866 I RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY WITHIN THE CITY BELLA PROJECT AREA AND IDENTIFIED AS: LOT 3,4,5, AND 18, BLOCK 3, "FAIRWOOD SHORES," HENNEPIN COUNTY Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 866 in HRA Resolution Book NO.7. Item #6 Community Development Director Palmborg reviewed Staff Report 44 regarding consideration of appropriate uses for the Candlewood outlot site. Mr. Palmborg reviewed past marketing attempts made by HRA staff for the property. The initial idea of a "sit-down" restaurant on the site has not materialized. Mr. Palmborg stated that staff is comfortable with waiting for the right development to happen, especially when one anticipates the upgrade of the Lyndale Avenue bridge over 1-494. Commissioner Stokes asked about the 1-494 improvements slated for the future and the I potential reorientation of the business to front 77th Street. Commissioner Stokes stated that she still feels a restaurant is a good choice for the site and she is willing to wait. Commissioner Heimberger agreed with Commissioner Stokes. I I I -. ."""f,:; >~---... -.:..... --~~~~-_.- HRA Meeting Minutes -5- October 21, 2002 Mr. Palmborg stated that the staff perspective was to keep the vision broad but be patient for the right development, not necessarily"',i restaurant. There was a general consensus to continue to hold the property for the right development opportunity. Item #7 Acting Executive Director Devich requested that the HRA consider Items 7 and 8 concurrently. Finance Manager Regis reviewed Staff Reports No. 45 and 46 regarding consideration of a resolution authorizing the refunding of the $5,075,000 G. O. Taxable Tax Increment Bonds, Series 1996, dated December 1, 1996, with the $2,495,000 Taxable G. O. Tax Increment Refunding Bonds, Series 2002B; and consideration of a resolution authorizing the refunding of the $1,570,000 Taxable Variable Rate Demand G.O. Bonds, Series 1999, dated November 1, 1999, with the $1,065,000 Taxable G. O. Tax Increment Refunding Bonds, Series 2002C. Commissioner Heimberger asked about the timetable for the bond sale in light of the interest rates changing. Mr. Regis responded with the projected timetable. 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. 867 RESOLUTION AUTHORIZING EXECUTION OF TAX INCREMENT PLEDGE AGREEMENTS WITH THE CITY OF RICHFIELD RELATING TO $2,495,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2002B AND $1,065,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2002C Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 867 in HRA Resolution Book NO.7. Item #8 M/Linnihan, 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 Meeting Minutes -6- October 21, 2002 HRA RESOLUTION NO. 868 RESOLUTION AUTHORIZING EXECUTION OF TAX INCREMENT PLEDGE AGREEMENTS WITH THE CITY OF RICHFIELD RELATING TO $2,495,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2002B AND $1,065,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2002C Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 868 in HRA Resolution Book NO.7. Item #9 Community Development Director Palmborg reported that the Metropolitan Council recently awarded Richfield $20,000 to research building materials to be used in the Cedar Avenue Redevelopment area. Mr. Palmborg stated that to work on the issue an Oversight Committee would be established and asked if any HRA Commissioners would like to be on the committee. Commissioner Stokes volunteered to be on the committee. Item #6 MIStokes, S/Helmberger that the followinq claims and pavroll be approved: FIRSTAR BANK Section 8 Checks: 103807 - 103927 HRA Checks: 26309 - 26363 $177,443.60 $154,025.03 Motion carried 4-0. The meeting was adjourned by unanimous co e.ven L. Devlch Acting Executive Director , Steven L. Devich Acting City Clerk I I I