11-19-07 Agenda
CITY OF RICHFIELD, MINNESOTA
MONDAY, NOVEMBER 19, 2007
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
1. Oath of Office to HRA Commissioner Doris Rubenstein
2. Roll call
3. Appointment of interim HRA Secretary
4. Approval of minutes of Regular HRA Meeting of October 15, 2007
5. HRA approval of agenda
6. Consent Calendar contains several separate items which are acted upon by the HRA
in one motion. Once the Consent Calendar has been approved, the individual items
and recommended actions have also been approved. No further HRA action is
necessary. However, any HRA Commissioner may request that an item be removed
from the Consent Calendar and placed on the regular agenda for HRA discussion
and action. All items listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of designating Monday, January 14, 2008 as date for
January Regular HRA meeting S.R. No. 44
B. Consideration of approval of agreement with HLB Tautges Redpath, Ltd. to provide tax
increment accounting and advisory services for HRA S.R. No. 45
C. Consideration of approval of revised program guidelines for Energy Advantage
Program S.R. No. 46
Notes:
7. Consideration of resolution extending preliminary development agreement for 36
days or until February 20, 2008 with TOLD Development Company for exploring
feasibility of redevelopment of 30-acre area in Cedar Avenue
Staff Report No. 47
Notes:
8. Consideration of resolution extending preliminary development agreement for 36
days or until February 20, 2008 with United Banker's Bank for exploring feasibility of
redevelopment of 2.5 acre area in Cedar Avenue
Staff Report No. 48
Notes:
9. Executive Director report
10. Claims and payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
AGENDA ITEM # 6A
REpORT # 44
........
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2007
REpORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTWE DIRECTOR:
1;},
ITEM FOR HRA CONSIDERATION:
Designate Monday, January 14, 2008 as the date for the January Housing and
Redevelopment Authority meeting.
I. RECOMMENDED ACTION:
By Motion: Designate Monday, January 14,2008 as the date for the
Janua Housin and Redevelo ment Authorit meetin .
I II. BACKGROUND I
The Housing and Redevelopment Authority's (HRA's) regularly scheduled January
meeting on Monday, January 21,2008 falls on the Martin Luther King Jr. holiday.
Typically the HRA would meet Tuesday, January 22 however, in 2008 this is the
fourth Tuesday and is the date the Richfield City Council meets; therefore, it is
proposed to schedule the meeting for Monday, January 14 at 7:00 p.m.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The HRA's regularly scheduled meetings are held the third Monday of
the month.
111907 Meeting Dates 2008
I B. CRITICAL ISSUES I
. Establishing the January 2008 meeting date now will be very helpful to
staff in scheduling items for consideration by the HRA.
I C. FINANCIAL
. N/A
I D. LEGAL I
. The meeting date and time change will be posted in accordance to
Minnesota laws governing open meetings.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Select an alternative day.
I V. ATTACHMENTS
. N/A
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
AGENDA ITEM # 6B
REpORT # 45
.........
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2007
REpORT PREPARED By:
MYRT LINK, COMMUNITY DEVELOPMENT
ACCOUNTANT
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Approve an agreement with HLB Tautges Redpath, Ltd. to provide Tax Increment accounting
and advisory services for the Richfield HousinQ and Redevelopment Authoritv.
1. RECOMMENDED ACTION:
By Motion: Approve an agreement with HLB Tautges Redpath, Ltd. to
provide Tax Increment accounting and advisory services for the
Richfield Housing and Redevelopment Authoritv.
I II. BACKGROUND I
For the past nine years, the City of Richfield has used the auditing firm of HLB
Tautges Redpath, Ltd. (Tautges) to perform the annual City and Housing and
Redevelopment Authority (HRA) audit. In addition, Tautges also assisted HRA staff
in preparing the annual Tax Increment reporting forms which are submitted to the
Office of the State Auditor (OSA) and provided advisory services on Tax Increment
matters.
It has been the practice of the City to periodically seek proposals from a number of
auditing firms to ensure the City retains quality auditing services at competitive
prices. In July of this year, City staff initiated an auditor proposal process to select
an audit firm for the next three-year period. At the October 9, 2007 meeting, the
111907 HLB Tautges Redpath
City Council appointed the firm of Malloy, Montague, Karnowski, Radosevich & Co.,
P.A. to perform these services.
Due to the complexity of reporting requirements and work that Tautges has
performed in the past, it would be very desirable to continue to retain their services
for Tax Increment accounting and related advisory services.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The policy of the HRA has been to maintain conformance of all TIF
projects and related matters with rules and regulations of the OSA.
I B. CRITICAL ISSUES I
. The HRA's TIF projects date from 1975. Although Tautges has not
been involved since 1975 they have a knowledge base which
effectively includes the entire time period TIF has been utilized in
Richfield.
I C. FINANCIAL I
. Costs are paid from the 10% of Tax I ncrement receipts allowed for
administrative fees for each project. Continuing the Tautges
relationship is both cost effective and an efficient use of time.
I D. LEGAL
. N/A
I IV. ALTERNATIVE RECOMMENDATION(S)
. Do not approve agreement.
I V. ATTACHMENTS
. Agreement
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
CoB -I
l1li Tautges Redpath. Ltd.
Certified Public Accountants and Consultants
October 30, 2007
Richfield HRA
6700 Portland Ave. South
Richfield, MN 55423
RE: TIP Accounting and Advisory Services - Tax Increment Financing (TIF)
We are pleased to confirm our understanding of the accounting and advisory services we
are to provide.
Specific Services
We will assist Richfield HRA with its annual TIP reporting requirements for the ILN and
all Richfield Rediscovered districts. The services are expected to be similar to what we have
provided in past years and include gathering financial information from the City's audited
financial statements and other information provided by the City and HRA. We will reconcile
the financial information and put it in a format for the HRA to use for inclusion in its annual
TIP reporting forms.
We will not audit the financial information or issue a report or any other form of
assurance. It is important that Richfield HRA review the information we provide and to ask
us for clarification if any information is not clear.
Other Services
Weare available to assist with related TIP or other services as requested by the HRA. In
prior years, such assistance has included periodic TIP-related meetings, special projects, and
assistance with other districts.
Administration. Fees and Other
Our fee for these services will be at our standard hourly rates. These rates currently
range from $68 - $294 per hour and are adjusted annually on October 1. Fees for the specific
services listed above depend on the volume of activity and specific circumstances and have
ranged from $2,500 - $4,100 the prior two years.
Term of EnQaQement
For the specific services, this engagement includes assistance with the 2007 reporting
forms. This engagement letter will remain in effect until terminated by either party.
4810 White Bear Parkway White Bear Lake, Minnesota 55110 I 651 426 7000
HLB Tautges Redpath. Ltd. is a member of II International. a world-wide organization of accounting firms and business advisors.
651 426 5004 Fax I www.hlbtr.com
{p8-d.-
Richfield HRA
Contract for Advisory Services
Page 2
ClosinQ
We appreciate the opportunity to be of service to Richfield HRA and believe this letter
accurately summarizes the significant terms of our engagement. If you have any questions,
please let us know. If you agree with the terms of our engagement as described in this letter,
please sign the enclosed copy and return it to us.
Very truly yours,
HLB TAUTGES REDPATH, LTD.
~~
Thomas W. Hodnefield, CPA
TWH:clg
Response
This letter correctly sets f0l1h the understanding of the'Richfield HRA:
By:
Title:
Date:
AGENDA ITEM # 6C
REpORT # 46
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2007
REpORT PREPARED By:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR.prY
~
ITEM FOR HRA CONSIDERATION:
Consider approval of revised program guidelines for Energy Advantage Program.
I. RECOMMENDED ACTION:
By Motion: Approve revised program guidelines for the Energy
Advantage Program such that eligible income limits would be
increased from less than 80 percent of area median to 115 percent of
area median and by increasing the percentage of eligible project
costs from 10 percent to 25 percent.
I II. BACKGROUND I
In June 2007 the Housing and Redevelopment Authority (HRA) approved an
agreement with the Center for Energy and Environment (CEE) to administer the
Energy Advantage Program. As approved the Energy Advantage Program offers a
deferred loan for energy-related improvements such as the replacement of
windows, doors, furnaces, air conditioning, insulation, and built in appliances. The
deferred loan, zero interest and no monthly payments, covers ten percent. of the
total project cost up to $1,500 for as long as the applicant owns the home. If the
applicant makes more than $2,999 in improvements, the HRA using local funds
contributes $250 more to the project. Households with incomes less than 80% of
area median income ($59,600 for a family of four) are eligible.
111907 Revised Energy Advantage Guidelines
Despite an aggressive marketing plan (including postcards mailed to all Richfield
single-family homes), no applications have been made. GEE attributes the lack of
interest to the amount of paperwork involved for a small loan (10% of project costs)
and the income restrictions. Staff sought approval from Minnesota Housing (the
source of the funding) to increase the percentage of project costs to 25% and raise
the income limit to 115% of area median income ($89,500). Minnesota Housing
agreed to make these changes to ensure the funds are utilized.
HRA staff and GEE hopes that with these changes, the interest in the Energy
Advantage loan will increase and loans will be issued. Together, staff and GEE will
aggressively market the revised program to contractors and Richfield residents.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The HRA has secured funding from Minnesota Housing to provide an
incentive for homeowners to make energy conservation
improvements.
. In June of 2007 the HRA approved an agreement with GEE to
administer the Energy Advantage Program.
I B. CRITICAL ISSUES I
. GEE will continue to administer the loan.
. As the program is currently designed, the amount of paperwork
required for a relatively small loan makes the program unattractive.
Increasing the percentage of total project costs and increasing the
income limit will make the program more attractive to a greater
number of residents.
IC. FrnANC~L I
. The HRA was awarded $30,000 in funding from Minnesota Housing to
implement the Energy Advantage Program. The funds should be
spent by July 2008 but an extension may be possible.
I D. LEGAL
. N/A
I IV. ALTERNATIVE RECOMMENDATION(S)
. Do not authorize the revisions.
I V. ATTACHMENTS
. N/A
I VI. PRrnCIP AL PARTIES EXPECTED AT MEETrnG
. N/A
AGENDA ITEM # 7
REpORT # 47
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2006
REpORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR.
ITEM FOR HRA CONSIDERATION:
Consideration of a proposed extension to the Preliminary Development Agreement with TOLD
Development Company for exploring the feasibility of redevelopment of a 30-acre area in the
Cedar Avenue Corridor.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution, which extends the
Preliminary Agreement with TOLD Development Company for 36-days
or until February 20, 2008.
III. BACKGROUND I
On April 16, 2007 the Housing and Redevelopment Authority (HRA) authorized an
Agreement with TOLD Development Company (TOLD) to study the development
feasibility for the 30-acre area between 66th and 69th Streets and between 17th
Avenue and TH 77. (The United Bankers' Bank (UBB) site is within the TOLD site.)
The Agreement is set to expire January 15, 2008. The HRA agenda for the January
meeting includes several matters already. It is appropriate to consider a report from
the UBB and TOLD representatives at the February 2008 meeting.
111907 TOLD Preliminary Agreement
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The Agreement should note be allowed to expire.
. The area under consideration is included in the Cedar Avenue
Corridor Redevelopment Concept Master Plan.
I B. CRITICAL ISSUES I
. TOLD representatives are agreeable to the extension.
. The City Council will be requested to extend the Right-of-Entry
Agreement until February 20, 2008.
. TOLD will report on the status of their feasibility work at the February
meeting and if and how they may wish to continue their relationship
with the H RA.
Ic. FmANc~L I
. The Agreement requires TOLD to reimburse the HRA for expenses
including staff and consultan.ts.
I D. LEGAL I
. HRA legal counsel reviewed the proposed resolution.
I IV. ALTERNATNE RECOMMENDATION(S)
. Do not approve the extension.
. Continue the consideration of the extension to a later meeting date.
I V. ATTACHMENTS
. Resolution
. Map
I VI. PRINCIPAL PARTIES EXPECTED AT MEETmG
. N/A
1-1
HRA RESOLUTION NO.
EXTENDING THE PRELIMINARY AGREEMENT
WITH TOLD DEVELOPMENT COMPANY
WHEREAS, TOLD Development Company (TOLD) and the Richfield Housing
and Redevelopment Authority (HRA) entered into a Preliminary Agreement
(Agreement), April 16, 2007; and
WHEREAS, the Agreement is set to expire January 15, 2008; and
WHEREAS, in paragraph 4 of the Agreement provision is made for extension of
the Agreement; and
WHEREAS, TOLD and the HRA desire to extend the Agreement for an additional
36-days or until February 20, 2008; and
WHEREAS, the purpose of the extension is for the parties to evaluate the status
of activities, and report to the HRA at its February 2008 meeting regarding the
appropriateness of any further extensions.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority that the Agreement is hereby extended until February 20, 2008.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of November, 2007.
Suzanne Sandahl, Chair
ATTEST:
Acting Secretary
AGENDA ITEM # 8
REpORT # 48
......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 19, 2006
REpORT PREPARED By:
BRUCEPALMBORG,COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a proposed extension to the Preliminary Development Agreement with United
Banker's Bank for exploring the feasibility of redevelopment of a 2.5-acre area in the Cedar
Avenue Corridor.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution, which extends the
Preliminary Agreement with United Banker's Bank for 36-days or until
February 20, 2008.
I II. BACKGROUND I
. On April 16, 2007 the Housing and Redevelopment Authority (HRA)
authorized an Preliminary Development Agreement (Agreement) with United
Banker's Bank (UBB) to study the development feasibility for the 2.5-acre
area south of the Decision One building.
. The Agreement is set to expire January 15, 2008. The HRA agenda for the
January meeting includes several matters already. It is appropriate to
111907 UBB Preliminary Agreement
consider a report from the UBB and TOLD representatives at the February
2008 meeting.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The Agreement should note be allowed to expire.
. The area under consideration is included in the Cedar Avenue Corridor
Redevelopment Concept Master Plan.
I B. CRITICAL ISSUES .1
. UBB representatives are agreeable to the extension.
. The City Council will be requested to extend the Right-of-Entry
Agreement until February 20, 2008.
. UBB will report on the status of their feasibility work at the February
meeting and if and how they may wish to continue their relationship
with the H RA.
I C. FINANCIAL I
. The Agreement requires UBB to reimburse the HRA for expenses
including staff and consultants.
I D. LEGAL I
. HRA legal counsel reviewed the proposed resolution.
I IV.
ALTERNATIVE RECOMMENDATlON(S)
. Do not approve the extension.
. Continue the consideration of the extension to a later meeting date.
Iv.
ATTACHMENTS
. Resolution
. Map
I VI.
PRINCIPAL PARTIES EXPECTED AT
MEETING
. N/A
111907 UBB Preliminary Agreement
consider a report from the UBB and TOLD representatives at the February
2008 meeting.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The Agreement should note be allowed to expire.
. The area under consideration is included in the Cedar Avenue Corridor
Redevelopment Concept Master Plan.
I B.o CRITICAL ISSUES I
. UBB representatives are agreeable to the extension.
. The City Council will be requested to extend the Right-of-Entry
Agreement until February 20, 2008.
. UBB will report on the status of their feasibility work at the February
meeting and if and how they may wish to continue their relationship
with the HRA.
I C. FINANCIAL I
. The Agreement requires UBB to reimburse the HRA for expenses
including staff and consultants.
I D. LEGAL I
. HRA legal counsel reviewed the proposed resolution.
I IV.
Iv.
ALTERNATIVE RECOMMENDATION(S)
. Do not approve the extension.
. Continue the consideration of the extension to a later meeting date.
ATTACHMENTS
. . Resolution
. Map
I VI.
PRINCIPAL PARTIES EXPECTED AT
MEETING
. N/A
111907 UBB Preliminary Agreement
N
A
1:\GIS\Community Development\Staff\Christine\Cedar Corridor\South of 66th Street\Prelim Agreement.mxd
3-{
BRA RESOLUTION NO.
EXTENDING THE PRELIMINARY AGREEMENT
WITH UNITED BANKER'S BANK
WHEREAS, United Banker's Bank (UBB) and the Richfield Housing and
Redevelopment Authority (HRA) entered into a Preliminary Agreement (Agreement),
April 16, 2007; and
WHEREAS, the Agreement is set to expire January 15, 2008; and
WHEREAS, in paragraph 4 of the Agreement provision is made for extension of
the Agreement; and
WHEREAS, UBB and the HRA desire to extend the Agreement for an additional
36-days or until February 20, 2008; and
WHEREAS, the purpose of the extension is for the parties to evaluate the status
of activities, and report to the HRA at its February 2008 meeting regarding the
appropriateness of any further extensions.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority that the Agreement is hereby extended until February 20, 2008.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of November, 2007.
Suzanne Sandahl, Chair
ATTEST:
Acting Secretary
111907 UBB Preliminary Agreement
Exhibit A
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