05-21-01 Regular
I
I
I
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
May 21, 2001
The meeting was called to order by Vice Chair Heimberger at 7:00 p.m.
HRA Members
Present:
Joan Heimberger; Dan Linnihan; Michael Sandahl; and Kristal
Stokes.
HRA Members
Not Present:
Thomas Harms.
Staff Present:
Samantha Orduno, Executive Director; Steven Devich, Acting City
Clerk; Bruce Palmborg, Community Development Director; John
Stark, Community Development Manager; Bruce Nordquist, Housing
and Redevelopment Manager; and John Dean, City Attorney
(arrived at 7:23 p.m.).
MIStakes, S/Linnihan to approve the minutes of the (1) Special HRA Closed
Executive Session of March 19, 2001; (2) Special Concurrent Meetinq of HRA and City
Council of April 1 0, 2001; (3) Reqular HRA Meetinq of April 16, 2001: and (4) Special HRA
Meetinq of April 23, 2001.
Motion carried 4-0.
___I
HRA Meeting Minutes
-2-
May 21,2001
Item #1
John Sieff, owner of the former Lyndale Hardware property, reported on the status
of his property and the City Bella project. Mr. Sieff indicated that a new contract has been
signed between the City Bella developers and himself. He thanked the HRA and staff for
all their assistance in this matter.
Mike Conlan, Gramercy Corporation, expressed his delight that an agreement
between his firm and John Sieff was concluded for the City Bella project.
Item #2
M/Sandahl, S/Stokes to approve the agenda.
Motion carried 4-0.
Item #3
A. Approved purchase of 7039 Fifth Avenue with Community Development Block Grant
funds for 2001-2002 New Home Program SR. No. 41
HRA RESOLUTION NO. 818
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 7039 FIFTH AVENUE SOUTH FOR THE
2001-2002 NEW HOME PROGRAM
This HRA Resolution appears as HRA Resolution No. 818 in HRA Resolution Book
NO.6.
B. Approved resolution authorizing release of $920,000 Irrevocable Standby Letter of
Credit dated October 30, 2000 for account of CSM Investors, Inc. for Shops at
Lyndale, Phase" SR. No. 42
HRA RESOLUTION NO. 819
RESOLUTION AUTHORIZING THE RELEASE OF THE
IRREVOCABLE STANDBY LETTER OF CREDIT
DATED OCTOBER 30, 2000 FOR THE ACCOUNT OF
CSM INVESTORS, INC. FOR SHOPS AT L YNDALE, PHASE II
I
I
I
I
I
I
- - -- ,-- -- - ~ - - -~'~,I: --:t~V,.ilt}- --Jt,~'11~r":"J'''~' -
. ,
Rr '.
HRA Meeting Minutes
-3-
May 21,2001
This HRA Resolution appears as HRA Resolution No. 819 in HRA Resolution Book
NO.6. ). "'C' ,H .."
M/Sandahl, S/Linnihan to approve the consent calendar.
Motion carried 4-0.
Item #4
Community Development Manager Stark reviewed Staff Report 43 regarding
consideration of options for continuation of the redevelopment process for Lyndale
Gateway area.
Mr. Stark stated that CSM has still not concluded a lease agreement with
Walgreens. He added that in the absence of such a signed lease, staff is recommending
that the exclusive contract for redevelopment with CSM be terminated.
Murray Kornberg, President of CSM, stated that as of today the lease with
Walgreens is still not signed. He stated that he took offense with the information in the
staff report that CSM is in default. He feels they are not, and that after February 1, 2001
the contract was void. Mr. Kornberg stated that CSM was working diligently to get the
lease signed. He said that while CSM has done everything they could to get the lease
done, he understands the HRA's frustration.
Commissioner Sandahl asked Mr. Kornberg if CSM would suspend pursuit of the
lease with Walgreens once the HRA terminates this agreement.
Mr. Kornberg responded that he wasn't sure how Walgreens would respond to
finding out that the agreement with CSM has been terminated. He said that CSM will
continue to work with Walgreens, but can't predict how Walgreens will respond.
City Attorney Dean stated that the resolution terminating the Exclusive Rights
Agreement with CSM doesn't mention breach or failure to perform.
Commissioner Sandahl asked if anyone on staff was aware of alternative
development proposals, and if so, how long before a project could go forward.
Executive Director Orduno responded that others have expressed interest in this
area in the past and so another project could be a reality. However, she added that it
would likely take between 12 to 18 months before another project would get underway.
Steve Sawitzke, A-1 Foam, stated that he has sent a letter about this matter for the
record. He stated that he has lost $50,000 so far this year and he feels it is due to the
current situation. Mr. Sawitzke stated that firm contracts with developers are needed in the
future if the HRA is involved in redevelopment efforts.
H RA Meeting Minutes
-4-
May 21, 2001
MIStokes, S/Linnihan to approve the Aqreement Terminatinq Contract for Private
Redevelopment between HRA and CSM Investors II, Inc. for Lyndale Gateway
redevelopment.
I
Commissioner Linnihan stated that he is extremely frustrated with the process.
However, he indicated his desire that CSM still pursue the lease with Walgreens and
subsequently adopt a new contract.
Vice Chair Heimberger agreed with Commissioners Sandahl and Linnihan in that
this situation has gone on for too long, even though she feels CSM has a good project.
Motion carried 4-0.
Item #5
Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 44
regarding consideration of a temporary lease for HRA owned unimproved property at 709 I
Graham Avenue for parking and execution of an agreement with Gramercy Corporation
and Gramercy Park.
Mr. Nordquist stated that the temporary parking would provide for 16 parking
spaces and upgraded north entrances to the Gramercy building and VFW.
Commissioner Linnihan asked Mr. Conlan if the majority of people parking in the
Nature Center lot are for the VFW or Gramercy.
Mike Conlan responded that the parking at the Nature Center was mainly for visitors
to Gramercy. He said a new upgraded side entrance to Gramercy will make the parking
on the north side much more convenient.
Vice Chair Heimberger asked if there is going to be a problem with stairs.
Mr. Conlan said there would be a problem for some people and an education
process will be needed to instruct people to be dropped off in front.
Vern Luettinger, 6711 Lakeshore Drive, stated that visitor parking is still a big
problem for residents of the Gramercy building. He stated that handicapped parking on
the rear entrance is needed.
Vice Chair Heimberger stated that this parking issue could be addressed as a part
of the specifics of the lease agreement.
I
I
I
I
~~'.tr~t~-,:~ ,!~- {frh~-~~;:-;t7,~
r "",. i
;~ -'.
HRA Meeting Minutes
-5-
May 21,2001
Mr. Luettinger stated that parking is a very serious concern for visitors at Gramercy,
especially for the handicapped. He""statea that even' 1 0 spaces on the west of the building
would help.
Carl Cornell, 6615 Lakeshore Drive #807, wanted to know how Gramercy got a
permit for their building without visitor parking. He stated that he didn't feel it was legal to
use the Nature Center parking lot without compensation. He said mistakes in the past are
coming home to roost.
Gertrude Ulrich, 7601 Aldrich Avenue, asked if the west side of Gramercy could be
used for some parking.
Commissioner Stokes stated that she's not familiar with any plans, but there are
some problems to be addressed like the topography of the area if parking on the west side
of Gramercy is pursued.
Commissioner Sandahl asked that staff explore discussions about the Davis
property on the west side in addressing this parking matter with Gramercy.
Commissioner Linnihan asked Executive Director Orduno to explore speed control
and traffic calming measures on Lakeshore Drive, such as a crosswalk.
Vern Luettinger asked about crosswalks and signage on Lakeshore Drive.
Executive Director Orduno cautioned everyone about the potential hazards
associated with crosswalks. She added that the City could use some enforcement
measures to address speeding on Lakeshore Drive.
M/Sandahl, S/Helmberger to approve the temporary leasinq of property at 709
Graham Avenue and the execution of an aqreement with Gramercy Corporation and
Gramercy Park by the Chair and Executive Director.
Motion carried 4-0.
Item #6
Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 45
regarding consideration of three resolutions related to HRA's contract for private
development with Richfield State Agency for Urban Village (AKA Woodlake Centre) and to
authorize issuance of tax increment notes related to the project.
Executive Director Orduno advised the HRA that a memorandum containing
additional provisions to the Richfield State Agency contract for private development was
HRA Meeting Minutes
-6-
May 21,2001
distributed to the HRA this evening and is before them. It should be added to the
resolutions for consideration on this item.
The HRA Commissioners acknowledged the additional language.
M/Sandahl, S/Stokes that the following HRA resolutions be adopted. that they be
spread in the HRA resolution book and that they be made part of these minutes and the
amendment to the contract be included:
HRA RESOLUTION NO. 820
RESOLUTION APPROVING AN AMENDED AND RESTATED CONTRACT FOR PRIVATE
REDEVELOPMENT BETWEEN THE HRA AND
RICHFIELD STATE AGENCY, INC.
RESOLUTION NO. 821
RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS,
COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAX INCREMENT
REVENUE NOTE, SERIES 2001A.
RESOLUTION NO. 822
RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS,
COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAXABLE TAX
INCREMENT REVENUE NOTE, SERIES 2001 B
Motion carried 4-0. These HRA Resolutions appear as HRA Resolutions No.'s 820,
821 and 822 in HRA Resolution Book NO.6.
Item #7
M/Stokes, S/Linnihan that the followinq claims and payrolls be approved:
FIRST AR BANK
Section 8 Checks: 101909-102022
HRA Checks: 25131-25142; 25460 - 25511
$149,715.39
$268,259.13
Motion carried 4-0.
I
II
I
HRA Meeting Minutes
-7-
May 21, 2001
I
~.. .~
The meeting was adjourned by unanimous consent at 8:05 p.m.
L. Oevich
Acting City Clerk
I
I