07-08-03 agendaCITY OF RICHFIELD, MINNESOTA
TUESDAY, JULY 8, 2003
SPECIAL CONCURRENT CITY COUNCIL AND
HOUSING AND REDEVELOPMENT AUTHORITY WORKSESSION
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
5:45 P.M.
Call to order
Discussion of Cornerstone agreement revisions; Lyndale Gateway West project
Adjournment
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
IMMEDIATELY FOLLOWS CONCURRENT CITY COUNCIL/HRA WORKSESSION
AGENDA
Call to order
1. Consideration of acceptance of delegation of authority for administration of $500,000
Metropolitan Council Livable Communities Grant; Lyndale Gateway. West project
Staff Report No. 39
Notes:
2. Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the Administrative Services Director at 612-861-
9702.
AGENDA ITEM # j
REPORT # 39
~~ STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
SPECIAL MEETING JULY 8, 2003
REPORT PREPARED BY:
REPORT PRESENTER:
JOHN STARK, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
JOHN STARK, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
SIGNATURE
REVIEWED BY EXECUTIVE DIRECTOR: 1~i
ITEM FOR HRA CONSIDERATION:
Consideration of acceptance of the Delegation of Authority for the administration of a $500,000
Metro olitan Council Livable Communities Grant.
I. RECOMMENDED ACTION:
By Motion: Accept the delegation of authority for the administration
of Metropolitan Council Grant No. SG-02-162 and direct the Executive
Director to take all necessary actions for the administration. of the
grant including, where appropriate, taking title to individual parcels
with the arant funds.
II. BACKGROUND
On February 25, 2003, the City of Richfield received a $500,000 Livable
Communities Grant (Grant No. SG-02-162) from the Metropolitan Council. The
stated purpose of this grant was for "land acquisition and assembly." Activities such
as land acquisition and assembly for redevelopment are more commonly performed
by housing and redevelopment authorities than city councils.
A situation has arisen in which grant funds are needed for advanced purchase of a
property located at 7639 Aldrich Avenue. A primary reason for the early acquisition
0708LGW
of this site would be to provide the developer with an on-site location for their
marketing/sales trailer.
Under the City Council's administration of the grant funds, a number of time
consuming steps (such as two readings, a transitory ordinance and a public
hearing) would be required for the advance purchase of the property, which would
render early acquisition impractical. If the Housing and Redevelopment Authority
(HRA) were to administer the grant funds, however, the acquisition of the property
would occur in a more timely fashion because the acquisition has already been
contemplated in the Contract for Private Development and all required public
approvals have been made. The City Council is, therefore, considering an action at
their July 8, 2003 meeting to assign administration of the grant to the HRA.
As with all land acquisition and disposition matters, the HRA Executive Director and
staff would make all efforts to ensure a proper amount of security (such as a
primary mortgage), before transferring title of a property that was acquired with
grant funds to a developer.
III. BASIS OF RECOMMENDATION
A. POLICY
• On February 25, 2003, the City of Richfield received a $500,000
Livable Communities Grant (Grant No. SG-02-162) from the
Metropolitan Council.
• The intended purpose of the grant funds are for redevelopment site
assembly.
• Staff has determined that the HRA would be able to administer
redevelopment site assembly activities more efficiently than the City
Council.
The City Council is considering an action at their July 8, 2003 meeting
to assign administration of the grant to the HRA.
B. CRITICAL ISSUES
• A primary purpose for the funds at issue is for the early acquisition of
the property located at 7639 Aldrich Avenue prior to July 16, 2003. If
the City were to administer the grant funds instead of the HRA, it
would be impossible to accomplish all the needed activities by that
time.
The City of Richfield would continue to be the grantee from the
perspective of the Metropolitan Council.
There does not appear to be any "downside" of having the HRA
administer the grant funds.
C. FINANCIAL
• The intended purpose of the grant funds are for the acquisition of
properties. Under normal circumstances, there is no obligation to
repay such grant funds. Legal counsel and staff, however, are
requiring the developer to provide security to the HRA for the property
(such as a first position mortgage), so that if the Metropolitan Council
were to recall the grant funds, the developer would either have to
provide the funds or title to the property (at a discounted price) so that
the HRA could sell the property to reimburse such a recall.
D. LEGAL
• Legal Counsel made the suggestion that staff recommend that the
City Council assign administration of the grant funds to the HRA.
• The Metropolitan Council staff agrees that the City can assign the
administration of the grant to the HRA.
IV. ALTERNATIVE RECOMMENDATION(S~
• Deny the delegation of authority for the administration of a $500,000
Metropolitan Council Livable Communities Grant; which would result in the
inability to acquire the property at 7639 Aldrich Avenue prior to July 16, 2003
(as needed in order to acquire this property early).
V. ATTACHMENTS
• N/A
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Legal Counsel