12-17-01 Regular
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HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 17,2001
The meeting was called to order by Chair Harms at 7:00 p.m.
HRA Members
Present:
Thomas Harms; Kristal Stokes; Michael Sandahl; Joan Heimberger;
and Dan Linnihan.
Staff Present:
Samantha Orduno, Executive Director; Bruce Palmborg, Community
Development Director; John Stark, Community Development
Manager; and Deborah Guiher, Deputy City Clerk.
M/Sandahl, S/Stokes to approve the of minutes of (1) Special HRA and City Council
Closed Executive Session of November 19. 2001; (2) Reqular HRA Meeting of November
19. 2001: and (3) Special HRA Meetinq of December 3, 2001.
Motion carried 5-0.
Item #1
No one wished to address the HRA.
HRA Meeting Minutes
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December 17,2001
Item #2
Deputy City Clerk Guiher administered the oath of office to Commissioner Joan
Heimberger.
Item #3
The agenda was approved by unanimous consent.
Item #4
A. Approved relocation assistance appeal policy S.R. No. 69
M/Sandahl, S/Stokes to approve the consent calendar.
Motion carried 5-0.
Item #5
Executive Director Orduno reviewed Staff Report No. 70 regarding a resolution
authorizing the sale of property at 6812 Queen Avenue to first-time buyers under the New
Home Program.
M/Sandahl, S/Stokes to close the public hearing.
Motion carried 5-0.
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. 842
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 6812 QUEEN AVENUE SOUTH
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 842 in
HRA Resolution Book NO.7.
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HRA Meeting Minutes
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December 17, 2001
Item #6
Community Development Manager Stark reviewed Staff Report No. 71 regarding a
development proposal by The Cornerstone Group for Phase III of the Lyndale Gateway
Redevelopment Area. He listed the following as summary points:
. Twenty thousand square feet of retail space with surface parking.
. Eighty-one for-sale lofts/condominiums above the commercial space along
Lyndale Avenue with underground parking.
. Twenty for-sale townhomes with tuck-under double garages along Aldrich
Avenue.
. Total development cost of approximately $25.6 million.
. Requested public assistance of approximately $2.1 million.
. Currently, a financing "gap" of $400,000 is identified.
Heidi Kurtze, a representative of the Cornerstone Group, was present for questions.
Commissioner Sandahl stated his concern about this proposal and the last one. He
believes the City isn't aiming high enough. Townhomes are aimed at an average or below
average market. The City needs to raise the community standard. Our sights have been
set too low.
Commissioner Linnihan discussed the sale price of the town homes.
Commissioner Sandahl said he had misunderstood the figures.
Commissioner Linnihan stated the prices were attractive. He feels this will give
empty nesters and seniors a place to go to stay in Richfield.
Commissioner Sandahl stated the City should be looking at prices of $400,000.
The City has plenty of places for seniors. The City needs to offer upper scale housing and
look at upgrading our community, not just look out for empty nesters.
Chair Harms agreed with Commissioner Sandahl that the City has done a lot for
senior housing. He does have a concern with the prices. With Best Buy, there will be
tremendous demand. He questioned if the loft sizes would be large enough for new
families. He feels they are not designed for target families. He suggested the size be
bigger with larger prices. He likes the idea of the loft, but suggests thinking about what the
target population is.
Commissioner Heimberger stated that the town homes on Garfield Avenue were
sold before they were built. This shows there is a desire for this type of living.
Heidi Kurtze said the demand is outstanding. She agrees with looking at the size
and price. They will look at the market to maximize the value.
HRA Meeting Minutes
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December 17, 2001
Commissioner Linnihan questioned whether lenders have been approached
regarding the funding. When this comes back before the HRA, there should be a pre-
approval from a lender.
Commissioner Stokes stated that she likes what she sees. Young professional
people could be interested in lofts.
Steve Sawitzke, A-1 Foam and Fabrics, reminded the City to close loopholes this
time. He also questioned the estimated site assembly cost of $4.9 million. He said that
two years ago CSM estimated site assembly cost was $6 million for the site. This would
mean that the gap is more than $400,000 and needs serious looking at. He feels the site
assembly cost needs to remain conservative.
Community Development Manager Stark stated that he doesn't recall what the CSM
site assembly budget was, but based on the actual site assembly for Richfield senior
housing for the Mainstreet Village, site assembly numbers are reasonable from the
Cornerstone Group.
Chair Harms has requested that this be referred back to staff for evaluation,
including the evaluating of the $400,000 and the HRA comments regarding the concept.
Item #7
The regular January 2002 HRA meeting is to be held on January 23, 2002 at 7:00
p.m.
Item #8
M/Helmberger, S/Stokes that the followinq claims and pavrolls be approved:
FIRST AR BANK
Section 8 Checks: 102670 - 102774
HRA Checks: 25264 - 25280; 25919 - 25953
$159,197.16
$217,191.65
Motion carried 5-0.
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HRA Meeting Minutes
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December 17,2001
The meeting was adjourned by unanimous consent at 7:28 p.m.
Date Approved: January 23. 2002
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Deborah J. Guiheft
Deputy City Clerk \J