08-18-08 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 18, 2008
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:00 p.m.
ROLL CALL
HRA Members
Present: Sue Sandahl Chair; Martin Kirsch; Joan Helmberger; Doris Rubenstein;
and David Gepner.
Staff Present: Steven L. Devich, Executive Director; John Stark, Interim Community
Development Director/HRA Manager; Chris Regis, Finance Manager;
Karen Barton, Community Development Manager; Christine Costello,
Community Development Coordinator; and Cheryl Krumholz, Recording
Secretary.
Item #1 HRA APPROVAL OF MINUTES
M/Kirsch, S/Gepner to approve the minutes of the (1) Regular HRA Meeting of July 21,
2008.
Motion carried 5-0.
HRA APPROVAL OF AGENDA
Item #2
Chair Sandahl removed Item #5 from the agenda.
M/Gepner, S/Rubenstein to approve the agenda as amended.
Motion carried 5-0.
2-
HRA Meeting - August 18, 2008
Item #3 PRESENTATION FROM RICHFIELD RESIDENT JACK SWAN REGARDING HUB
SHOPPING CENTER S.R. NO. 35
Jack Swan, 6409 2nd Avenue, made a presentation, “A Piazza for Richfield”, related to the
HUB at 66th Street and Nicollet Avenue.
Item #4 CONSENT CALENDAR
A. Consideration of approval of resolution accepting Urban Land Institute Housing Initiative
Grant, authorizing matching funds of $5,000 and executing contract S.R. No. 36
HRA RESOLUTION NO. 1038
RESOLUTION ACCEPTING URBAN LAND INSTITUTE HOUSING
INITIATIVE GRANT AND AUTHORIZING MATCHING FUNDING
This resolution appears as HRA Resolution No. 1038.
M/Helmberger, S/Sandahl to approve the Consent Calendar.
Motion carried 5-0.
Item #5 CONSIDERATION OF DENYING RENT-TO-OWN MANAGEMENT PROPOSAL BY
THIRD WAY NETWORK FOR PROPERTY AT 7422 FOURTH AVENUE S.R. NO. 37
This item was removed from the agenda.
Item #6 CONSIDERATION OF ACCEPTING PENN CORRIDOR MASTER REVITALIZATION
PLAN S.R. NO. 38
Community Development Manager Barton presented Staff Report No. 38.
Bruce Chamberlain, Hoisington Koegler Group, provided an update on the revitalization
study, including project purpose, guiding principles, draft design guidelines, land use guidance, and
key components.
Commissioner Helmberger asked about the comments received from the public.
Mr. Chamberlain responded there are overwhelmingly positive comments to “get moving”.
3-
HRA Meeting - August 18, 2008
Commissioner Rubenstein expressed her concern regarding options for partners with
revitalization because the same developer appears to do projects that are not particularly friendly
to retaining small businesses. She suggested national chains be kept to a minimum.
Mr. Chamberlain explained those comments have been echoed throughout the process and
that is the reason the Penn Avenue project is a revitalization not redevelopment area. He added
the financing tools typically used for redevelopment may be used to address rent increase costs.
M/Gepner, S/Helmberger to approve acceptance of Penn Corridor Master Revitalization
Plan.
Motion carried 5-0.
Item #7 UPDATE REGARDING TOLD CEDAR CORRIDOR REDEVELOPMENT
Community Development Coordinator Costello stated this is the second update from TOLD
Development Company.
Trent Mayberry, TOLD Development Company, provided an update on the feasibility of the
project for the southwest quadrant of 66th Street and Cedar Avenue despite significant challenges
including site specific issues, Minnesota’s economy, the commercial real estate market, and the
upside down capital marketing (financing).
Mr. Mayberry discussed a staged or phased approach to development with the more
accessible sites, probably the north portion first. The next step is finalizing a development
agreement.
Commissioner Rubenstein asked about potential uses.
Mr. Mayberry responded that users could include free-standing retailers, build to suit or a
potential hotel.
Community Development Coordinator Costello added that neighborhood-oriented
businesses would be emphasized.
Interim Community Development Director Stark discussed the phasing approach for
development of this area, giving the developer what is needed but also giving the City and
residents security.
Mr. Mayberry stated no specific timeline has been established.
Interim Community Development Director Stark explained that the exclusive rights
agreement expires in November 2008.
Item #8 UPDATE REGARDING CEDAR POINT II
Interim Community Development Director Stark stated the last update to the HRA was in
June and the conceptual deal points to addressing financing gaps were approved by the City
4-
HRA Meeting - August 18, 2008
Council. The structure of those deal points but not the amounts have been modified. The
developer has secured preliminary cost estimates from the builder, with higher than projected costs
resulting in an increased financing gap. Now staff and the developer are working to find financial
solutions and hope to make a recommendation at a future meeting.
Greg Bronk, Susee/Lang Nelson representative, expressed their disappointment in the
higher cost estimates and unexpected challenging development market. He added the developer
believes the project can still be accomplished but there is no timeline yet.
Executive Director Devich stated he hoped the residents understand that the City is trying
to put together a project that works and is acceptable to the HRA and the developer to address the
financial gap.
Item #9 CONSIDERATION OF RESOLUTION APPROVING 2009 PROPOSED HRA
BUDGET AND TAX LEVY AND 2008 REVISED HRA BUDGET S.R. NO. 39
Interim Community Development Director Stark presented Staff Report No. 39; including
Community Development 2008 accomplishments and key goals for 2009, and the levy history.
Commissioner Rubenstein asked about the ability to have public comment.
Executive Director Devich explained, though not statutorily required, the HRA, at their
discretion, could request their own budget hearing in November.
Finance Manager Regis stated the levy must be certified to Hennepin County by September
15. The levy can be reduced after that date but not increased.
Commissioner Kirsch asked about the tax impact on residents.
Finance Manager Regis explained the staff recommended 3% increase ($14,250) over last
year’s budget is approximately $0.10 per month tax impact and meets the minimum budget needs.
If the HRA approves the maximum levy ($107,000), it is approximately $0.87 per month tax impact.
Chair Sandahl asked where the additional funds, if approved, would be used.
Interim Community Development Director Stark explained they would be used primarily in
housing programs, including Transformation Loans, New Home, Richfield Rediscovered, and
marketing.
M/Kirsch, S/Gepner that the following HRA resolution be amended to adopt the maximum
levy that is allowed under law and direct staff to provide a report at the next HRA Meeting on the
proposed use of the additional funds:
HRA RESOLUTION NO. 1039
RESOLUTION APPROVING PROPOSED 2009 HOUSING AND
REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE
2009 TAX LEVY
Motion carried 5-0. This resolution appears as HRA Resolution No. 1039.
HRA Meeting -5- August 18, 2008
M/Kirsch, S/Sandahl that the following resolution be adopted and be made part of these
minutes:
HRA RESOLUTION NO. 1040
RESOLUTION AUTHORIZING REVISION OF THE 2008 BUDGET OF
THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
Motion carried 5-0. This resolution appears as HRA Resolution No. 104.0.
Item #10 EXECUTIVE DIRECTOR REPORT
Executive Director Devich reported on a recent discussion with a Richfield resident
interested in the Transformation Loan Program and -the possible need to consider reevaluating that
program's funding guidelines.
Item #11 CLAIMS AND PAYROLL
M/Helmberger, S/Gepner that the following claims and payrolls be approved:
U.S. Bank 07-21-2008
Section 8 Checks: 114275 - 115741 $ 173,757.76
HRA Checks: 30325 - 30346 $ 172,880.19
TOTAL $ 346,637.95
Motion carried 5-0.
ADJOURNMENT
The. meeting was adjourned by unanimous consent at 8:30 p.m.
Date Approved:~ptember is . 2008
S e Sandahl A
Cheryl Krumholz n . Devic
Recording Secretary Executive Director