05-08-07 Special
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RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Meeting
May 8, 2007
CALL TO ORDER I
The meeting was called to order by Chair Sandahl at 8:02 a.m.
ROLL CALL
HRA Members
Present:
Sue Sandahl; Martin Kirsch; Joan Heimberger; and David Gepner.
HRA Members
Not Present:
Donna Drummond.
Staff Present:
Steve Devich, Executive Director; Bruce Palmborg, Community
Development Director; and Nancy Gibbs, City Clerk.
Item #1
CONSIDERATION OF FORMER OWNER'S REQUEST TO RENT AND
PURCHASE 7422 FOURTH AVENUE FROM THE HRA S.R. NO. 16
Community Development Director Palmborg presented Staff Report No. 16.
Executive Director Devich expressed concerns regarding this issue. He stated if the HRA
should sell the property to the former owner (Ms. Stertz) for less than its current value, this could
open the HRA up to criticism - others may have bid more money if given the opportunity. Others
may ask why they were not given the opportunity to bid. Mr. Devich also stated that the HRA has
not collected or been offered any monies from Ms. Stertz for the time she has lived in the property
since the end of February when the HRA purchased it. Mr. Devich also stated that the HRA
attorney recommended not to lease the property to the former owner and that the HRA should
order the Sheriffs Writ.
Ms. Stertz's attorney Joe Ryan explained that Ms. Stertz is not in a position to pay
$190,000 for the property. Mr. Ryan stated that they have a minimum proposal of $4800 for four
HRA Special Meeting Minutes
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May 8, 2007
months rental and that the HRA offer a purchase agreement of $130,000 to $140,000 to Ms. Stertz
because she cannot afford $190,000.
Ms. Stertz explained why she was unemployed and could not make her payments and that
she was settling a work compensation case with her previous employer.
Chair Sandahl stated she agreed with HRA attorneys not to lease or rent the property to
Ms. Stertz.
Commissioner Gepner expressed his concerns to do anything other than what was
recommended by HRA attorneys.
Commissioner Heimberger agreed. She stated it is the responsibility to stay with HRA
Plan.
Commissioner Kirsch agreed with other Chair Members.
M/Sandahl, S/Gepner to obtain the Writ bv Mav 30 and hold off on delivery to Sheriff until
June 15.
Motion carried 4-0.
I ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:50 a.m.
Date Approved: May 21, 2007
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Nancy Gibbs ~
City Clerk
n L. Devich
Executive Director