09-16-13 Regular HRA HOUSING AND REDEVELOPMENT
/ AUTHORITY MEETING MINUTES
GC �L�� Richfield, Minnesota
Regular Meeting
September 16, 2013
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:51 p.m.
ROLL CALL
HRA Members Sue Sandahl, Chair; Doris Rubenstein; David Gepner; Steven J. Quam;
Present: and Debbie Goettel
Staff Present: Steven L. Devich, Executive Director; John Stark, Community
Development Director; Karen Barton, Assistant Community Development
Director; and Cheryl Krumholz, Executive Coordinator.
Item #1 APPROVAL OF MINUTES OF THE (1) SPECIAL CONCURRENT HRA AND CITY
COUNCIL WORKSESSION OF AUGUST 19, 2013; AND (2) REGULAR HRA
MEETING OF AUGUST 19, 2013.
M/Gepner, S/Rubenstein to approve the minutes.
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Gepner, S/Quam to approve the agenda.
Motion carried 5-0.
Item #3 CONSIDERATION OF A PROPOSAL MADE BY THE OWNERS OF 6844-10TH
AVENUE FOR A SETTLEMENT OF A $30,000 DEFERRED LOAN IN THE
AMOUNT OF $26,094.28 S.R. NO. 45
Assistant Community Development Director Barton presented HRA Staff Report no. 45.
M/Sandahl, S/Quam to approve the proposal made by the owners of 6844-10th Avenue for a
settlement of a $30,000 deferred loan in the amount of$26,094.28.
HRA Meeting -2- September 16,2013
Motion carried 5-0.
Item #4 CONSIDERATION OF A RESOLUTION ALLOWING THE ACCEPTANCE OF
MONETARY SUPPORT SOLICITED FOR THE 2013 LANDSCAPING GOOD
NEIGHBOR AWARD S.R. NO. 46
Assistant Community Development Director Barton presented HRA Staff Report No. 43.
M/Gepner, S/Goettel that the following resolution be adopted and that it be made part of
these minutes:
HRA RESOLUTION NO. 1164
RESOLUTION AUTHORIZING RICHFIELD COMMUNITY DEVELOPMENT DEPARTMENT
TO ACCEPT DONATIONS FROM THE LISTED BUSINESSES FOR DESIGNATED USES
Motion carried 5-0. This resolution appears as HRA Resolution No. 1164.
Item #5 CONSIDERATION OF GIVING STAFF FORMAL DIRECTION ON SEEKING
PROPOSALS FOR THE CEDAR POINT II DEVELOPMENT AREA S.R. NO. 47
Executive Director Devich stated that during this evening's earlier HRA Worksession there
was discussion regarding development proposals for the Cedar Point II development area. At the
worksession, a developer made a presentation on their development proposal.
Mr. Devich stated that staff is seeking further policy-level direction to establish a process for
seeking and accepting development proposals in this area.
HRA Chair Sandahl stated previous worksession discussions have included how to handle
development proposals resulting in a good project that is financially responsible. She stated she
liked the proposal presented at the worksession because it included a mixed range of housing
affordability.
HRA Commissioner Rubenstein stated she was impressed with the proposed project
because of the urban village concept.
HRA Commissioner Goettel stated she liked the design because sound abatement was
addressed and the affordability aspect. She said she did not want a lost opportunity due to a
potential increase in interest rates.
Community Development Director Stark stated that not all of the Request for
Proposals/Request for Qualifications information has been received from Projectus International.
HRA Commissioner Quam suggested negotiating an exclusive agreement with Projectus
International that included milestones or benchmarks as part of the terms of the agreement.
Community Development Director Stark stated the HRA could consider an exclusive rights
agreement of short duration with benchmarks and returning to the HRA to determine if they've been
met.
HRA Commissioner Gepner stated it is nice to have choices and suggested a delay of a
month or two. He questioned site assembly and homeowner resistance to acquisition.
HRA Meeting -3- September 16,2013
Tim Nichols, Projectus International, explained they have the resources to acquire and
assemble the site. He also discussed their proposed project, including financing.
HRA Commissioner Rubenstein agreed with establishing benchmarks.
HRA Commissioner Goettel suggested the due diligence be completed and then staff return
to the HRA with a recommendation on proceeding.
HRA Commissioner Quam stated that he understands the HRA has a disinclination for
senior housing on this site. He suggested staff contact United Properties to see what they would be
proposing, and if it is senior housing, not consider their proposal.
Community Development Director Stark stated that United Propoerties' proposal contained
a certain predominance of senior housing.
Mr. Stark stated that the HRA Attorney suggested due diligence be part of the exclusive
agreement.
M/Rubenstein to grant Projectus International an exclusive rights agreement to explore the
possible construction of a housing development at Cedar Point II subject to timelines developed by
staff and the completion of due diligence.
Community Development Director Stark suggested the HRA consider a motion directing
staff and HRA legal counsel to draft an exclusive rights agreement with Projectus International and
return to a subsequent meeting for HRA consideration of the agreement. This would be a de facto
exclusive agreement that would include not entertaining discussions with other developers and the
completion of due diligence.
HRA Commissioner Rubenstein withdrew the original motion.
M/Rubenstein, S/Quam to direct staff and HRA legal counsel to draft an exclusive rights
agreement with the development team of Projectus International and in the interim, continue the
due diligence and not entertain other proposals.
Motion carried 5-0.
Item #6 HRA DISCUSSION ITEMS
HRA Commissioner Goettel requested staff review the City of Bloomington policy on height
requirement for development projects by residential properties.
Item #7 EXECUTIVE DIRECTOR REPORT
None.
Item #8 CLAIMS AND PAYROLL
M/Goettel, S/Quam that the following claims and payrolls be approved:
U.S. BANK 09/16/13
Section 8 Checks: 123919 - 124027 $ 162,558.36
HRA Meeting -4- September 16,2013
HRA Checks: 31833 - 31856 $ 28,952.39
TOTAL $ 191,510.75
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:29 p.m.
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Date Approved: October 21, 2013 d `z ` „Ve'°""r 1,
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Su f•- M Sandahl ,
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Cheryl 'rum • z i - en L. Devich
Executive Coordinator Executive Director