01-14-08 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 14, 2008
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:07 p.m.
ROLL CALL
HRA Members
Present: Sue Sandahl Chair; Martin Kirsch; Joan Helmberger; Doris Rubenstein;
and David Gepner.
Staff Present: Steven Devich, Executive Director; Bruce Palmborg, Community
Development Director; John Stark, Assistant Community Development
Director/HRA Manager; John Dean, HRA Attorney; and Nancy Gibbs, City
Clerk.
Item #1 PRESENTATION OF CERTIFICATE OF APPRECIATION TO FORMER HRA
COMMISSIONER DONNA DRUMMOND
Chair Sandahl presented a certificate of appreciation to former HRA Commissioner Donna
Drummond.
Item #2 CONSIDERATION OF ELECTION OF HRA OFFICERS FOR 2008 (S.R. NO. 1)
Chair Sandahl presented Staff Report No. 1 which stated the HRA needs to elect a Chair,
Vice Chair, and Secretary of the HRA for 2008.
Chair Sandahl opened nominations for Chair.
M/Helmberger, S/Gepner to approve the appointment of Sue Sandahl as Chair of the HRA
for 2008.
HRA Meeting January 14, 2008
Chair Sandahl opened nominations for Vice Chair.
M/Gepner, S/Rubenstein to approve the appointment of Martin Kirsch as Vice Chair of the
HRA for 2008.
Chair Sandahl opened nominations for Secretary.
M/Sandahl, S/Gepner to approve the appointment of Joan Helmberger as HRA Secretary
for 2008.
Motion carried 5-0.
HRA APPROVAL OF MINUTES
Item #3
M/Kirsch, S/Gepner to approve the minutes of the (1) Regular HRA Meeting of November
19, 2007 and (2) Special HRA Meeting of December 3, 2007.
Motion carried 5-0.
Item #4 HRA APPROVAL OF AGENDA
M/Gepner, S/Rubenstein to approve the agenda.
Motion carried 5-0.
CONSENT CALENDAR
Item #5
Executive Director Devich presented the Consent Calendar.
Commissioner Rubenstein removed Item 5B. She requested that all financial institution
names listed on Item 5B be corrected if necessary.
M/Rubenstein, S/Gepner to amend the consent calendar by removing Item 5B.
Motion carried 5-0.
A. Consideration of approval of designating Community Development Director as Acting
Executive Director of HRA in event Executive Director is absent from City for 2008 S.R. No.
2
B. Consideration of approval of resolutions designating official depositories for HRA, including
collateral, for 2008 S.R .No. 3
C. Consideration of approval of resolution designating Richfield Sun-Current as official
newspaper for 2008 S.R. No. 4
D. Consideration of approval of continuing contract with Greater Metropolitan Housing
Corporation to deliver housing programs and services S.R. No. 5
HRA Meeting January 14, 2008
E. Consideration of approval of resolution authorizing certificate of completion for Kensington
Park, 76th Street and Lyndale Avenue S.R. No. 6
F. Consideration of approval of resolution authorizing termination of option agreement for
Kensington Park, 76th Street and Lyndale Avenue S.R. No. 7
G. Consideration of approval of mortgage satisfaction in substantially the form as provided and
its execution for Kensington Park; 76th Street and Lyndale Avenue S.R. No. 8
H. Consideration of approval of contract with Frattalone Companies for demolition at 6744
Blaisdell Avenue S.R. No. 9
M/Kirsch, S/Gepner to approve the consent calendar as amended.
Motion carried 5-0.
Item #6 CONSIDERATION OF SUBORDINATION REQUEST FOR HRA DEFERRED LOAN
AT 7433 PARK AVENUE S.R. NO. 10
Chair Sandahl presented Staff Report No. 10.
Kathryn Graeve, homeowner at 7433 Park Avenue, stated reasons for her subordination
request. Ms. Graeve stated she would use some of the money to pay credit cards.
Executive Director Devich stated subordination guidelines of the HRA do not meet this
request; based on those guidelines staff denied subordination request.
Assistant Community Development Director Stark stated that staff was following HRA
guidelines on subordination.
Commissioner Rubenstein asked if Ms. Graeve has exhausted all other resources before
approaching the HRA.
HRA Attorney Dean stated the HRA needed to subordinate this loan before Ms. Graeve
could receive a new loan.
M/Gepner, S/Helmberger to deny the subordination request for the HRA Deferred Loan for
7433 Park Avenue.
After further discussion the motion was amended to read: to approve subordination request
for HRA Deferred Loan for 7433 Park Avenue but only to the extent that the principal amount of the
new loan does not exceed: (i) an amount needed to pay off the existing contract for deed; (ii) the
amount of any credit card expenditures made for improvements to 7433 Park Avenue; and (iii) the
costs to close the new loan, and staff to determine that the amount subordinated meets these
criteria.
The amended motion was accepted by the seconder.
Amended motion carried 5-0.
HRA Meeting January 14, 2008
Item #7 CONSIDERATION OF DEVELOPMENT PROPOSAL BY SHERMAN AND
ASSOCIATES FOR RENTAL HOUSING DEVELOPMENT AT FORMER
TH
BRIDGEMAN’S RESTAURANT SITE, 800 WEST 66 STREET S.R. NO. 11
Assistant Community Development Director Stark presented Staff Report No. 11.
Ryan Sailes of Sherman and Associates presented a report on a proposed development of
the former Bridgeman’s site.
Commissioner Rubenstein stated she has some concerns regarding traffic and parking at
the site area.
Mr. Sailes stated that they were taking the traffic and parking concerns very seriously.
Commissioner Kirsch stated he was pleased to hear that this site is being looked at,
especially due to the deterioration of the present structure’s appearance.
Chair Sandahl stated she is pleased that this proposal is not for senior housing.
M/Gepner, S/Rubenstein to approve the consideration of the development proposal by
Sherman and Associates for a rental housing development at the former Bridgeman’s Restaurant
th
site, 800 West 66 Street.
Motion carried 5-0.
Item #8 CONSIDERATION OF PRELIMINARY PROPOSALS FOR CEDAR POINT PHASE II
AREA STAFF REPORT NO. 12
Assistant Community Development Director Stark presented Staff Report No. 12.
Jan Susse of LaNel Financial Group presented a summary of a proposal for development in
the Cedar Point Phase II area.
George Sherman of Sherman and Associates summarized their proposal would be for the
Cedar Point Phase II area.
Assistant Community Development Director Stark stated that this is a low airport frequency
noise area, therefore construction cost could be higher. He said he believes senior housing is a
good choice because most activity takes place inside.
Chair Sandahl suggested designing units to block sound to the neighborhood.
Commissioner Gepner asked about eminent domain.
Assistant Community Development Director Stark stated that Richfield is grandfathered in
under old rules, and it is hoped eminent domain will not need to be used.
Commissioner Kirsch stated that the HRA needs to act on this development because
Richfield has 29 families that have been waiting and expect something to happen. He said he
believes that the HRA needs to get the families relocated.
HRA Meeting January 14, 2008
Chair Sandahl asked how the HRA should proceed.
Assistant Community Development Director Stark suggested that staff look at the financial
documents of both developers and report back to the HRA.
Mr. Susse and Mr. Sherman both agreed that a decision needs to be made quickly.
Executive Director Devich stated that the staff would return in February with a
recommendation.
M/Sandahl, S/Kirsch, to direct staff to work with both developers, Sherman and Associates
and LaNel Financial Group, and report back to the HRA in February.
Motion carried 5-0.
Item #9 EXECUTIVE DIRECTOR REPORT
Executive Director Devich announced that Community Development Director Palmborg
would be retiring later this month and suggested that he be recognized at a future HRA Meeting.
Item #10 CLAIMS AND PAYROLL
M/Rubenstein, S/Helmberger that the following claims and payrolls be approved.
U.S. Bank 12-17-2007
Section 8 Checks: 112890 - 113037 $ 174,553.88
HRA Checks: 30096 - 30126 $ 87,991.50
TOTAL $ 262,545.38
U.S. Bank 01-21-2008
Section 8 Checks: 113040 - 113190 $ 187,937.32
HRA Checks: 30127 - 30152 $ 74,043.72
TOTAL $ 261,981.04
Motion carried 5-0.
HRA Meeting
January 14, 2008
I ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:45 p.m.
Date Approved: February 19, 2008
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Nancy Gibbs
City Clerk