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01-16-01 Regular ------r- I I I HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting January 16, 2001 The meeting was called to order by Vice Chair Heimberger at 7:00 p.m. HRA Members Present: Thomas Harms (arrived at 7:05); Joan Heimberger; Michael Sandahl; Kristal Stokes, and Dan Linnihan. Staff Present: Samantha Orduno, Executive Director; Steven Devich, Acting Deputy City Clerk; Bruce Palmborg, Community Development Director; and John Stark, Community Development Manager. Item #1 M/Sandahl, S/Stokes that the followinq be elected as officers of the HRA for 2001: Thomas Harms, Chair Joan Heimberger, Vice-Chair Michael Sandahl, Secretary Motion carried 5-0. HRA Meeting Minutes -2- January 16, 2001 Item #2 M/Linnihan, S/Stokes to approve the minutes of the Reqular HRA Meetinq of December 18. 2000. Motion carried 5-0. Item #3 Carl Cornell, 6615 Lake Shore Drive #807, addressed the HRA regarding the City Bella proposal to build on lots 16,17 and 18. He suggested that the Gramercy Corporation purchase the Lynch property and trade it for lot 16 and use it as a gardening plot. Mr. Cornell distributed a summary of his position to the HRA. Item #4 Commissioner Linnihan requested that Item 51 be removed from the Consent Calendar and be placed on the agenda for consideration as Item 5K. Item #5 A. Approved designating Steven L. Devich, Administrative Services Director, as HRA Acting Executive Director for 2001 SR. NO.2 B. Approved resolutions designating HRA official depositories for 2001 SR. NO.3 HRA RESOLUTION NO. 798 RESOLUTION DESIGNATING THE RICHFIELD BANK AND TRUST COMPANY A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2001 AND APPROVING COLLATERAL HRA RESOLUTION NO. 799 RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2001 I I II I I II I I I I HRA Meeting Minutes -3- January 16, 2001 HRA RESOLUTION NO. SOO RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2001 These HRA Resolutions appear as HRA Resolution No.'s 79S, 799 & SOO in HRA Resolution Book No.6. C. Approved designating Richfield Sun-Current as HRA official newspaper for 2001 S.R. No.4 HRA RESOLUTION NO. S01 RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2001 This HRA Resolution appears as HRA Resolution No. S01 in HRA Resolution Book NO.6. D. Approved Department of Housing and Urban Development's proposed payment standards, effective February 1, 2001 S.R. NO.5 E. Approved motion ratifying staff action for settlement of condemnation proceedings pertaining to property at 7621 Lyndale Avenue S.R. NO.6 F. Approved motion ratifying staff action for settlement of condemnation proceedings pertaining to property at 7601 Lyndale Avenue SR. NO.7 G. Approved resolution authorizing issuance of Certificates of Completion to John B. Mahoney Construction Inc. for 7613, 7619 and 7623 Nicollet Avenue; Karla K. Dagnault for 7532 Girard Avenue; and Spencer Dahl Construction, Peter C. Brandt and Lisa M. Bystedt for 6901-12th Avenue S.R. No. S HRA RESOLUTION NO. S02 RESOLUTION AUTHORIZING ISSUANCE OF A CERTIFICATE OF COMPLETION FOR THE NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT 7613,7619,7623 NICOLLET AVENUE SOUTH, 7532 GIRARD AVENUE SOUTH, AND 6901-12th AVENUE SOUTH This HRA Resolution appears as HRA Resolution No. S02 in HRA Resolution Book NO.6. H. Approved execution of contract with Julianne Schwietz for Community Apartment Program beginning February 1, 2001 for 12 months S.R. NO.9 I. Removed from the consent calendar and placed on the regular agenda for consideration as Item 5K. HRA Meeting Minutes -4- January 16, 2001 J. Approved resolution modifying redevelopment plan for Richfield Redevelopment Project Area and modifying tax increment financing plans for Gramercy tax increment I financing district, Urban Village tax increment financing district, Richfield Rediscovered 1999 tax increment financing district, A-5 tax increment financing district, and B-5 tax increment financing district S.R. No. 11 HRA RESOLUTION NO. 803 RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND MODIFYING THE TAX INCREMENT FINANCING PLANS FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT; THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT; THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT; THE A-5 TAX INCREMENT FINANCING DISTRICT; AND THE B-5 TAX INCREMENT FINANCING DISTRICT This HRA Resolution appears as HRA Resolution No. 803 in HRA Resolution Book NO.6. Commissioner Linnihan requested Item I be placed on the regular agenda as 5K. M/Sandahl, S/Helmberger to approve the consent calendar as amended. Motion carried 5-0. I Item #5K Executive Director Orduno briefly introduced this item and asked Community Development Manager Stark to review the Staff Report. Community Development Manager Stark reviewed revised Staff Report NO.1 0 regarding consideration of a request for a 75 day extension for removal of closing contingencies from CSM Investors II, Inc. with the stipulation that CSM enter into an agreement with the City of Richfield addressing the schedule and cost allocation of public improvements as defined in Article 6 of the Contract for Private Redevelopment. Absent such an agreement within 30 days of this approval, the extension shall be deemed null and void. Commissioner Sandahl asked when the 30-day period would start. I Mr. Stark responded that it starts today. Within 30 days of today CSM must enter into an agreement with the City for public works improvements for a cost allocation. I I I .;c:' :J.. .._---_."~ . - HRA Meeting Minutes -5- January 16, 2001 Commissioner Sandahl asked for further clarifications. Community Development Manager Stark explained the three potential contingency provIsions. Chair Harms stated that he is concerned now, as he was this past summer, that CSM is making progress in getting a major tenant. Mr. Stark stated that staff has checked with Walgreen as to their position in this matter. Mr. Stark stated that Walgreen told him that they open about 300 new stores per year, and they'll get to it when they get to it. Commissioner Linnihan stated that he was concerned about the lack of progress in the project and the appropriate course of action needed at this point. Commissioner Sandahl stated that this seems to be in a darned if you do, darned if you don't position. The issue is to move this project along and not leave the businesses in that area hanging on longer. Mr. Stark reviewed the following three significant issues: 1. February 1 date and condemnation timetable 2. Street work 3. Tenants Chair Harms asked Mr. Kornberg of CSM to address the HRA on this project. Murray Kornberg, Vice President of CSM, addressed the HRA regarding this item. Mr. Kornberg stated that it was necessary to get this entire project leased up before making purchase offers and giving non-refundable earnest deposits. He stated that CSM was anxious to avoid the pitfalls they incurred on the Interchange West project. Mr. Kornberg stated that CSM's ability to proceed with this project is contingent upon leasing this major tenant, and that they have no incentive to delay this project. Mr. Kornberg also stated this proposed store is scheduled for the fiscal year of 2002 on Walgreen's timetable. He said Walgreen would not accept delivery of this store any earlier than October 1, 2001. However, Mr. Kornberg believes that Walgreen still desires this site. Mr. Harms asked Mr. Kornberg why the HRA shouldn't just defer this item until CSM comes back with a lease. Mr. Kornberg stated that this option is certainly available to the HRA. He also stated that CSM will not be ready to ask for condemnation on February 1, 2001. He concluded that he did not know what impact deferring this decision would have on the negotiations with Walgreen. Chair Harms stated that an alternative motion would be to table this action because there appears to be more questions than answers regarding this project. HRA Meeting Minutes -6- January 16, 2001 Commissioner Sandahl stated that he did not agree with that concept. He felt that tabling it would only increase the cloud of uncertainty for the business owners in the area. Mr. Sandahl feels that the staff alternate recommendation would be an action he could support. Commissioner Linnihan stated that he could support the alternate recommendation with the added stipulation that CSM immediately (after February 15 signed lease is delivered) begin talking to business owners to find if there are hardship needs. Chair Harms and Commissioner Linnihan both felt that during this 30 day period, CSM should start to informally begin talking to property owners. M/Linnihan, S/Stokes that a 7S-dav extension for removal of Closing Continqencies from CSM Investors II, Inc. with the stipulation that CSM enter into an aqreement with the City of Richfield addressinq the schedule and cost allocation of public improvements as defined in Article 6 of the Contract for Private Redevelopment. Absent such an aqreement within 30 days of this approval, the extension shall be deemed null and void, and to approve the recommended action with the added stipulation that CSM must provide staff with a COpy of a lease with their primary tenant within 30 days without which the extension is to become null and void and expression of intent to beqin preliminarv discussion with the property owners affected. . Motion carried 5-0. Item #6 Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 12 considering resolutions regarding a second amendment to a contract for private redevelopment and the issuance of limited revenue tax increment notes related to Gramercy Park Cooperative at Lake Shore Drive. Commissioner Sandahl asked if this had any potential financial negative impact on the HRA? Mr. Nordquist stated that there is no impact. Chair Harms asked about the structure of the bond issues and the adjusted interest rate. Dan Greensweig, Kennedy & Graven, stated that the notes are structured with a not to exceed amount. He stated that there is no credit risk to the HRA. II I I I I I ~~,,,,,,,,,,,,---7'- HRA Meeting Minutes -7- January 16, 2001 Dick Ward, John G. Kinnard & Company, stated that both notes cannot exceed the ~.... .. ," 9.95 rate and have a neutral credit affect on the HRA. M/Sandahl, S/Helmberger that the followinq HRA resolutions be adopted. that they be spread in the HRA resolution book and they be made part of these minutes: HRA RESOLUTION NO. 804 RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS LIMITED REVENUE TAX INCREMENT NOTE, SERIES 2001A; APPROVING AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT HRA RESOLUTION NO. 805 RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS LIMITED REVENUE TAX INCREMENT NOTE, SERIES 2001 B Motion carried 5-0. These HRA Resolutions appears as HRA Resolution No.'s 804 and 805 in HRA Resolution Book No.6. Item #7 Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 13 regarding the issuance of a Certificate of Completion for Gramercy Park Cooperative at Lake Shore Drive. M/Sandahl, S/Linnihan to authorize the issuance of a Certificate of Completion for Lot 1. Block 1, Gramercy Park. Richfield - the Gramercy Park Cooperative. Motion carried 5-0. Item #8 Chair Harms cancelled this item without objection. Housing and Redevelopment Manager Nordquist reported on the City Bella project. _J HRA Meeting Minutes -8- January 16, 2001 Ernie Lindstrom, 7406 Fremont Avenue, representing Lyndale Hardware, addressed the HRA regarding the expiration of the option of Gramercy Corporation with respect to the I purchase of Lyndale Hardware. He stated that Lyndale Hardware will go dark on or about June 1, 2001. Mr. Lindstrom stated he was asked by Lyndale Hardware owner, John Sief, to make sure that the HRA was fully aware of this situation. Item #9 Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 15 regarding the issuance of a Certificate of Completion for Urban Village (also known as Wood lake Centre) in accordance with a contract for private redevelopment between HRA and Richfield State Agency. M/Sandahl/ S/Stokes to authorize the issuance of a Certificate of Completion for Richfield Urban Village accordinq to the plat thereof and in accordance with the Contract for Private Redevelopment between the.Housing and Redevelopment Authoritv and Richfield State Aqency, Inc. Item #10 II I Motion carried 5-0. Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 16 regarding a resolution recognizing the Termination of Assessment Agreement for Richfield Medical Clinic project. M/Helmberger, S/Stokes that the following 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. 806 RESOLUTION RECOGNIZING TERMINATION OF ASSESSMENT AGREEMENT I Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 806 in HRA Resolution Book NO.6. -",":~'--~'~-""-"4,~ . ~. "'i,:'-'f"'---; HRA Meeting Minutes -9- January 16, 2001 I Item #11 None. Item #12 M/Sandahl, S/Stokes that the followinq claims and payrolls be approved: FIRST AR BANK Section 8 Checks: 101417-101533 HRA Checks: 24502-24610; 25019-25056 $ 138,483.10 $ 203,522.65 Motion carried 5-0. I The meeting was adjourned by unanimous C~8 ~ proved:Februar 20. 2001 ~/ T~S rcL. !~. \~am tha r uno ~e utive Director I I ~