03-19-01 Regular
I
I
I
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
March 19, 2001
The meeting was called to order by Chair Harms at 7:00 p.m.
HRA Members
Present:
Thomas Harms; Joan Heimberger; Kristal Stokes, Michael Sandahl;
and Dan Linnihan.
Staff Present:
Samantha Orduno, Executive Director; Steven Devich, Acting City
Clerk; and Bruce Palmborg, Community Development Director.
Item #1
M/Linnihan, S/Stokes to approve the minutes of the (1) Reqular HRA Meetinq of
Februarv 20,2001; and (2) Special HRA Meeting of March 5. 2001.
Motion carried 5-0.
Item #2
8
ill
..~
NiTYEbR.CITIZENsT0 ADDRESS THE HRA
Ernie Lindstrom, 7406 Fremont Avenue, appeared representing Lyndale Hardware.
Mr. Lindstrom reviewed the contents of a letter sent to the HRA and City concerning the
problems with closing the purchase of Lyndale Hardware by the Gramercy Corporation.
He stated his concern that the developer has not followed through with the purchase of the
HRA Meeting Minutes
-2-
March 19, 2001
property. Mr. Lindstrom urged the HRA to acquire the Lyndale Hardware property to
ensure that the project or any new project to proceed. Mr. Lindstrom stated that by the I
next time the HRA meets, Mr. Sieff will likely be in negotiations with another potential
buyer. He further stated that the April 30th closing date is imperative to Mr. Sieff and his
cash flow situation. Mr. Lindstrom stated Mr. Sieff wished to address the HRA and City
Council in the near future.
Commissioner Linnihan asked why this situation was different from a sale of
property between a willing buyer and seller that falls through.
Mr. Lindstrom stated that in this case Mr. Sieff talked to the City and was informed
the site was part of a project area.
Chair Harms stated that he felt Mr. Sieff could have hired legal help sooner to
protect his interests in the transaction. He felt that it was not appropriate to spend
taxpayers' money to purchase Mr. Sieff's property now.
Carl Cornell, 6615 Lakeshore Drive, presented his plan that the Gramercy
Corporation purchase the Lynch property and it be traded for another adjacent lot. He
wants the Lynch property kept as green or garden space.
Jeanne Kauth, 6615 Lakeshore Drive, asked if condemnation was possible.
Chair Harms responded that it was.
I
Larry Wozniczka, 6744 Wentworth Avenue, stated that the $7.2 million tax is in
jeopardy if the City uses only an assessment agreement which establishes the minimum
market value for Best Buy at $148 million. Mr. Wozniczka referred to miscellaneous tax
valuations and that he feels they do not produce the needed increment.
Item #3
Chair Harms requested that the Agreement regarding the Conveyance of Land be
added to the Agenda as 6B. He also requested that items 8 and 9 be removed from the
Agenda.
Item #4
A. Approved resolution for Gramercy Park Cooperative; second amendment to Contract for I
Private Redevelopment; sale of and providing form, terms, covenants and directions for,
issuance of limited revenue tax increment note, Series 2001; and Estoppel Certificate
S.R. No. 27
I
I
I
HRA Meeting Minutes
-3-
March 19, 2001
HRA RESOLUTION NO. 809
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; APPROVING AMENDMENT TO CONTRACT FOR
PRIVATE REDEVELOPMENT AND ESTOPPEL CERTIFICATE;
RESCINDING RESOLUTION NO. 804 AND RESOLUTION NO. 805
This HRA Resolution appears as HRA Resolution No. 809 in HRA Resolution Book
NO.6.
M/Sandahl, S/Helmberger to approve the consent calendar.
Motion carried 5-0.
Item #5
Community Development Director Palmborg reviewed Staff Report No. 28 regarding
a resolution authorizing the sale of property at 6852 Park Avenue to Steven Marlin Grant
Homes for new construction of a single family home.
M/Stokes, S/Helmberger to close the public hearinq.
Motion carried 5-0.
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. 810
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
6852 PARK AVENUE SOUTH TO STEVEN MARLIN GRANT HOMES
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 810 in
HRA Resolution Book NO.6.
-,
HRA Meeting Minutes
-4-
March 19, 2001
Item #6
I
Community Development Director Palmborg reviewed Staff Report No. 29 regarding
options for continuation of the redevelopment process for the Lyndale Gateway Area. Mr.
Palmborg presented five options to deal with this development contract.
Mark Nordland, CSM, stated that on March 2, 2001, CSM and Walgreens have
come to the terms of the lease.
Commissioner Sandahl stated that he would be more comfortable if Walgreens
would state on paper that they are going to go ahead with the project, even more than he
wants a lease.
Chair Harms concluded with Commissioner Sandahl.
M/Harms, S/Sandahl if no lease is delivered by the next HRA Meetinq, the followinq
options are to be brouqht back to the HRA for consideration: Option B. Approve a motion
to terminate the Contract for Private Redevelopment with CSM upon the execution of an
aqreement by both parties whereby each party acknowledqes the termination of the
Contract and releases one another of all claims pursuant to the Contract with the I
stipulation that issues related to any tax increment financing aqreement between CSM and
Minnstar Builder first be resolved and Option D. In addition to recommendation B, direct
staff to pursue discussions with other developers reqardinq the area.
Motion carried 5-0.
Item #6A
Chair Harms adjourned the meeting at 7:52 p.m. to continue with the Closed
Executive Session. The Chair noted that the HRA would reconvene in the Council
Chambers after the Closed Executive Session concluded.
Item #68
II
The Regular HRA Meeting reconvened at 8:17 p.m.
Executive Director Orduno reviewed the Agreement regarding the Conveyance of
Land to Best Buy.
I
I
I
HRA Meeting Minutes
-5-
March 19, 2001
M/Sandahl, S/Stokes to approve the Agreement reqarding Conveyance of Land to
Best Buy. ;"1 ""., ." ,
Motion carried 5-0.
Item #7
Community Development Director Palmborg reviewed Staff Report No. 30 regarding
the execution of the Tax Increment Pledge Agreement with the City of Richfield relating to
$8,350,000 General Obligation Tax Increment Bonds, Series 2001A.
Chair Harms asked Sid Inman of Ehlers and Associates if the financing structure for
the Penn Avenue Bridge was still in place.
Mr. Inman stated that it was.
M/Sandahl, 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. 811
RESOLUTION AUTHORIZING EXECUTION OF A
TAX INCREMENT PLEDGE AGREEMENT WITH THE
CITY OF RICHFIELD RELATING TO $8,350,000 GENERAL
OBLIGATION TAX INCREMENT BONDS, SERIES 2001A
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 811 in
HRA Resolution Book NO.6.
Item #8
Removed from the Agenda.
HRA Meeting Minutes
-6-
March 19, 2001
Item #9
Removed from the Agenda.
Item #10
Executive Director Orduno reviewed Staff Report No. 33 regarding proceeding with
eminent domain activities required to acquire real properties identified as Remnant Parcels
NO.4 and 6 within the Interchange West Redevelopment Area.
M/Sandahl, S/Helmberger 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. 812
RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTIES
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 812 in
HRA Resolution Book NO.6.
Item #8
M/Stokes, S/Helmberger that the followinq claims and pavrolls be approved:
FIRSTAR BANK
Section 8 Checks: 101661-101788
HRA Checks: 25377-25414; 24628-24638; 25104 - 25110
$147,929.88
$463,870.51
Motion carried 5-0.
I
I
I
HRA Meeting Minutes
-7-
March 19, 2001
I
The meeting was adjourned by unanimous c~ e
Date Approved: April 16. 2001
')
. :~-41c1 ~I~A
--Steven L. Devich 1
Acting City Clerk
.~
I
I