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11-17-08 Regular HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting November 17, 2008 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:03 p.m. Item #1 OATH OF OFFICE TO HRA COMMISSIONER STEVEN QUAM City Clerk Gibbs administered the oath of office to HRA Commissioner Steven Quam. Item #2 ROLL CALL HRA Members Present: Sue Sandahl, Chair; Doris Rubenstein; David Gepner; and Steven Quam. HRA Members Absent: Joan Helmberger. Staff Present: Steven L. Devich, Executive Director; John Stark, Community Development Director; and Nancy Gibbs, City Clerk. Item #3 APPOINTMENT OF INTERIM HRA VICE CHAIR M/Rubenstein, S/Sandahl to appoint Commissioner Gepner as Interim HRA Vice Chair. Motion carried 3-0. (Gepner abstain) 2- HRA Meeting - November 17, 2008 Item #4 RECOGNITION OF FORMER HRA COMMISSIONER MARTIN J. KIRSCH Chair Sandahl presented former HRA Commissioner Martin J. Kirsch with a plaque of recognition for his years of service. Item #5 HRA APPROVAL OF MINUTES M/Gepner, S/Rubenstein to approve the minutes of the Regular HRA Meeting of October 20, 2008. Motion carried 4-0. HRA APPROVAL OF AGENDA Item #6 M/Rubenstein, S/Gepner to approve the agenda. Motion carried 4-0. Item #7 CONSIDERATION OF CONTRACT WITH DOBOSZENSKI & SONS, INC. FOR DEMOLITION OF 7316 CLINTON AVENUE S.R. NO. 49 Executive Director Stark presented Staff Report No. 49. M/Gepner, S/Quam to approve the contract with Doboszenski & Sons, Inc. for demolition of 7316 Clinton Avenue. Motion carried 4-0. Item #8 CONSIDERATION OF REVISED SUBORDINATION POLICY FOR HRA LOANS S.R. NO. 50 Community Development Director Stark presented Staff Report No. 50. Commissioner Gepner stated he would like to see more stringent rules on these loans. Commissioner Quam agreed with Commissioner Gepner. He stated he would not be comfortable with more than an 80% loan to value ratio. 3- HRA Meeting - November 17, 2008 Commissioner Quam continued that he was uncomfortable with the HRA in third position for payment on a loan. He also stated the HRA should be looking at the ability of the borrower to pay the loan. If these issues are covered a homeowner should be able to use equity in their home if they are able to pay loan. Commissioner Rubenstein agreed with Commissioners Gepner and Quam. Executive Director Stark stated that it is not imperative to revise policy tonight. The HRA consensus was to leave the current policy in place for now. Executive Director Stark stated he would provide a monthly memo with basic facts on these loans. Commissioner Quam stated he would like a study session to revisit this issue at a later date. Item #9 CONSIDERATION OF SUBORDINATION REQUEST FOR HRA TRANSFORMATION HOMES INCENTIVE LOAN AT 7144 PARK AVENUE S.R. NO. 51 Community Development Director Stark presented Staff Report No. 51. M/Rubenstein, S/Gepner to deny subordination request for HRA Transformation Homes Incentive Loan at 7144 Park Avenue. Motion carried 4-0. Item #10 EXECUTIVE DIRECTOR REPORT None. Gary Dreher, TOLD, presented status report on Cedar Grove Development Area. Item #11 CLAIMS AND PAYROLL M/Gepner, S/Quam that the following claims and payrolls be approved: U.S. Bank 11-17-2008 Section 8 Checks: 116031 – 116170 $ 171,798.96 HRA Checks: 30409 - 30427 $ 34,231.32 TOTAL $ 206,030.28 HRA Meeting -4- November 17, 2008 Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 8:54 p.m. A: 'r. Date Approved: December 15, 2008 "~~~~~~~~ a M. Sandahl n Nancy Gibbs ~„ __!--~t~en L'.' Devich City Clerk Executive Director