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01-23-02 agendaCITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY WEDNESDAY, JANUARY 23, 2002 RICHFIELD CITY HALL 6700 PORTLAND AVENUE COUNCIL CHAMBERS 7 P.M. AGENDA Call to order Approval of minutes of Regular HRA Meeting of December 17, 2001 1. Opportunity for citizens to address the HRA on items not on the agenda Notes: 2. Election of HRA officers for 2002 Staff Report No. 1 Notes: 3. HRA approval of agenda 4. Presentation of 2001 Outstanding Planning Award for Project Implementation to HRA and developer, Richfield State Agency, for development of Woodlake Centre by Minnesota Chapter of American Planning Association Staff Report No. 2 Notes: 5. 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 Steven L. Devich as HRA Acting Executive Director for 2002 during absence of .Executive Director Orduno S.R. No. 3 B. Consideration of approval of resolution designating Richfield Sun as HRA official newspaper and Star Tribune as HRA secondary official newspaper for 2002 S.R. No. 4 C. Consideration of approval of resolutions designating HRA official depositories for 2002, including collateral S.R. No. 5 D. Consideration of approval of application for funding for single family and multi-family affordable housing programs from Minnesota Housing Finance Agency S.R. No. 6 Notes: 6. Consideration of extension for development planning agreement with David Gepner for adjacent residential sites at 6833 and 6855 Penn Avenue Staff Report No. 7 Notes: 7. 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 Administrative Services Director at 612-861-9702. AGENDA ITEM # 6 REPORT # 7 ~' STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2002 REPORT PREPARED BY: PAM BOOKHOUT, REHABILITATION SPECIALIST NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of an extension for the development planning agreement with David Gepner for the ad'acent residential sites at 6833 and 6855 Penn Avenue South. I. RECOMMENDED ACTION: By Motion: Authorize the Chairperson and Executive Director to extend the development planning opportunity with David Gepner for the sites at 6833 and 6855 Penn Avenue. II. BACKGROUND In October 2001, the Richfield Housing and Redevelopment Authority (HRA) approved an agreement with David Gepner to explore the development of the two single-family parcels at 6833 and 6855 Penn Avenue. The City's Comprehensive Plan calls for higher density residential development along Penn Avenue, and David Gepner expressed interest in developing the site with a higher density development. _ Gepner would like to build seven attached single-family homes on the site. Each unit would have a double car garage with access off 69th Street, eliminating the - need for curb cuts on Penn Avenue. Garages would be detached, creating a protected courtyard area for the townhome residents. Each townhome unit would three levels of 704 sq. ft. each, for a total floor area of 2,112 sq. ft. The proposed plan also includes 470 sq. ft. of studio space above the garages. 0123extend dev planning Although the Comprehensive Plan calls for higher density housing on arterial streets, the zoning code does not currently allow for such developments without applications for a variety of zoning changes. The Planning Commission hopes to address this with some future code changes by using Mr. Gepner's proposal as an example. Extending the development planning opportunity would give Mr. Gepner time to submit a zoning application for changes needed for his development under current zoning code, which most notably pertains to setbacks and height. The proposed elevations have some unique features that the developer will get neighborhood feedback on within the next several weeks. It is the goal of the developer to provide a unique product for buyers who might be looking for a live/work environment for their home, or might be seeking a totally different product than what Richfield generally provides. David Gepner and his builder, Harold Teasdale, will present the concept plan. III. BASIS OF RECOMMENDATION A. POLICY • The HRA purchased the sites for housing redevelopment and approved the developer to explore the development planning opportunity at its October meeting. • The agreement with the developer expires in January. The developer would like to extend the agreement to June 30,2002 to take the planning to the next level, which would include meeting with the neighborhood and completing a comprehensive zoning application. B. CRITICAL ISSUES • N/A C. FINANCIAL • Gepner has provided a $2,000 participation fee to be able to examine the development opportunity. D. LEGAL • Gepner is the chairperson of the Planning Commission. He would not participate in any decisions related to a proposed development which the Planning Commission would need to consider, to prevent conflict of interest. TERNATIVE RECOMMENDATION(S) Do not allow Gepner to work further on a development concept for the site. V. ATTACPIlVIENTS • Development concept: elevations, site p • Proposed agreement extension. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • David Gepner AGREEMENT THIS AGREEMENT is made and entered into this 23rd day of January, 2002, by and between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic ("HRA") and David Gepner, 7503 18th Avenue South, Richfield, Minnesota, and Harold Teasdale, 5407 Excelsior Boulevard, Suite B, St. Louis Park, MN 55416 (collectively the "Redeveloper"). I. RECITALS Whereas, Redeveloper is interested in pursuing the redevelopment of that certain area identified on Attachment A (hereinafter the "Project Area"); and Whereas, Redeveloper is proposing development within the Project Area which will be for residential use ("Redevelopment"); and Whereas, the parties acknowledge that Redeveloper may expend substantial time and effort, and incur substantial expense in pursuing plans for the Redevelopment; and Whereas, Redeveloper is willing to undertake the Redevelopment with the reasonable assurance from .the HRA that it will support and cooperate with Redeveloper in its Redevelopment efforts; and Whereas, the HRA wishes to cooperate with Redeveloper's efforts with the Redevelopment and is willing to proceed as described in this Agreement; and Whereas, HRA and Redeveloper have executed this Agreement to document their understanding with respect to the proposed Redevelopment. II. AGREEMENTS NOW THEREFORE, in consideration of the premises and mutual obligation of the parties contained herein, each of them does hereby represent, covenant and agree with the other as follows: 1. Statement of Intent. It is the intention of the parties that Redeveloper will proceed with the development activities necessary to permit Redevelopment in a manner, and on terms and conditions, which are mutually acceptable to Redeveloper and the HRA. This Agreement does not, however, constitute any type of plan approval nor agreement to provide financial assistance, nor does it obligate the HRA to provide plan approval or financial assistance. Any such requests are independent. of this Agreement. 2. Undertaking and Aareement by Redeveloper. During the term of this Agreement, Redeveloper intends to undertake and pursue certain activities with respect to the Redevelopment. Redeveloper's activities will include the following: site planning feasibility, the development of plans for the Redevelopment, application for necessary government approvals, and such other activities as would be customary and necessary to permit the Redevelopment. 3. Undertaking and Agreement by HRA. The HRA agrees to cooperate with Redeveloper in Redeveloper's undertakings, and specifically agrees that during the term of this Agreement, the HRA will not assist nor facilitate development by any third party within the Project Area, nor enter into an agreement with any third party in connection with Redevelopment within the Project Area. 4. Term. The term of this Agreement shall be until July 15, 2002, provided that, either party may terminate this Agreement upon thirty (30) days written notice to the other, in the event that: (a) the HRA determines, in good faith, that Redeveloper is not diligently pursuing the Redevelopment, or (b) Redeveloper determines, in good faith, that the Redevelopment is not feasible. The HRA may also terminate the Agreement for failure of Redeveloper to meet its obligations under paragraphs 5D or 5E. Redeveloper will provide the HRA, on the first business day of each month or as requested, written reports regarding the status of its activities related to the Redevelopment. Any notices shall be deemed delivered if either actually delivered, or if faxed and mailed to the parties at the following addresses: David Gepner Harold Teasdale 7503 18th Avenue South 5407 Excelsior Boulevard, Suite B Richfield, MN 55423 St. Louis Park, MN 55416 Phone: (612) 861-1703 Phone: (952) 922-4405 Richfield Housing and Redevelopment Authority Attn: Executive Director 6700 Portland Avenue South Richfield, MN 55423 Phone: (612) 861-9760 Fax: (612) 861-8974 5. Miscellaneous. A. This Agreement constitutes the entire agreement between the parties relative to the proposed Redevelopment. Unless specifically described herein, no obligation shall be inferred or construed. B. Redeveloper understands that further and separate action, for which no obligation is created hereunder, will be required before the HRA is obligated to take various actions with respect to the Redevelopment. Those actions may include, but are not limited to, negotiation and approval of the Contract for Private Development and the sale of publicly owned land. C. Redeveloper further understands that many of the actions which the HRA may be called upon to take require the reasonable discretion and in some instances the legislative judgement of the HRA and City Council; such actions may be made only following established procedures, and the HRA may not, by agreement, agree in advance to any specific decision in such matters. D. Ultimate approval of the Redevelopment is subject to approvals by the Planning Commission, City Council, Building Official. Those actions and/or approvals are independent and separate from the HRA. E. Redeveloper hereby indemnifies, holds harmless and agrees to defend the HRA, its officers, agents and employees from any claim or cause of action of whatever nature occasioned by or arising out of this Agreement or the HRA's performance thereunder. F. Redeveloper agrees that it will pay anon-refundable $2,000 payment upon. signing of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement effective the date and year first above written. THE HOUSING AND REDEVELOPMENT DAVID GEPNER AUTHORITY IN AND FOR THE CITY OF RICHFIELD By: By: Its: Chairperson HAROLD TEASDALE By: By: Its: Executive Director ATTACHMENT A "Project Area" STREET ADDRESSES The site consists of three platted lots, often collectively referenced as 6855 Penn Avenue South: 6833 Penn Avenue South, Richfield (one lots) 6855 Penn Avenue South, Richfield (two lots) Legal Descriptions Legal 6833 Penn Avenue: Lot 11, Block 9, Tingdale Bros.' Lincoln Hills Addn Descriptions North parcel of 6855 Penn Avenue: Lot 11 Subject to road, Block 9, Wood Lake Highlands Addn South parcel of 6855 Penn Avenue: Lot 10 Subject to road, Block 9, Wood Lake Highlands Addn PIN 6833 Penn Avenue: 28-028-24-33-0045 6855 Penn Avenue: 28-028-24-33-0146 Parcel Size 184' x 133' m N 0 Q N -~ rn -~ z N Z O z z rn G7 O s O O v n O z 0 rn C7 -i Z S :,; . ~ • e townhouses for David Ge ner & Harold Teasdale ° ~ ~ " a' ~ ~ P ~-= ~~ rno a =_ m~ . ~ •~... ,.. r erg ..,. ~ PENN PLACE ~ '~ _ ° ~ °° ~ m L"J ~ ~~ N 69th & Penn Avenue w u ~ „ ~ $ Richfield, Minnesota 55423 ' " == f .I V II II I ~~ III, I I ~~iI I I I fl ~IIII~ I I I I a x s 4 0 F ~~ . a townhouses for David Gepner & Harold Teasdale PENN PLACE ~ 69th & Penn Avenue Richfield, Minnesota 55423 ~e :~ s. ~~ = Y == F as S7~O '» s ns w ss « ~ O w s v ~ W v m ea . ,~ ~ .. w a..- ~ ~1 ~~ i !11{'^. ~~ ~ .'T..,,~:i:- ` `!b a ~ M' !~ townhouses for David Gepner & Harold Teasdale a ~ PENN PLACE A N 69th & Penn Avenue g T!_LG _1J ll!_____a~ CCA71 r~~ _ Y.~~ u? ~.. ;7i~ c ~ 'e ;~ ~~ CLOD ~» as ... _~_ m es_ ~O p=v~W '~ s ~^' r~ .... _ : m a~ SOD r ~ AGENDA ITEM # 5D REPORT # ~~ STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2002 BRUCE NORDQUIST, REPORT PREPARED BY: HOUSING & REDEVELOPMENT MANAGER BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR NAME, TLTLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Authorization to apply for funding for single family and multi-family affordable housing programs from the Minnesota Housing Finance Agency. I. RECOMMENDED ACTION: By Motion: Authorize the Executive Director to apply for funding for a land trust single family program and for State rent assistance vouchers and new construction tax credit multi-family programs. III. BACKGROUND ~ Minnesota Housing Finance Agency (MHFA) is accepting proposals from, Housing and Redevelopment Authorities for year 2002 state housing program funding. The deadline for applications is February 7, for multi-family applications and February 14 for single family applications. The Richfield Housing and Redevelopment Authority (HRA) has successfully secured funds in the past: first time. buyer mortgages, home improvement loans, and apartment remodeling loans. The program application summarizes the program concept, both procedural and financial that matches multiple sources of funds/program categories of MHFA. If funding for a concept is approved, program details would be finalized and contracts with MHFA would be prepared for HRA consideration. Each program includes funding for administration or leverages other funding to cover administrative costs. 012302MHFA The program concept descriptions are included in the attachment section of the Staff Report. III. BASIS OF RECOMMENDATION A. POLICY • The HRA secures funds and administers state and federal affordable housing programs. MHFA funds are presently available to match local needs. • Affordable housing needs have been outlined in the work of the Affordable Housing Task Force and reaffirmed in the 2020 visioning process. The programs being proposed are consistent with identified needs. B. CRITICAL ISSUES • The application for funding is simply that, and it is not a commitment to administer a program. If funded, a contract would be drafted and presented to the HRA for approval. • Competition for funding may be heightened by the state economic conditions. • Funding opportunities only come once or twice a year for state resources. C. FINANCIAL • The land trust concept would use MHFA, CDBG and West Hennepin land trust funds for project activities. Proceeds of sale of property and .CDBG would cover the cost of administration. • The rent assistance vouchers and administration would be fully funded by MHFA. • Housing tax credits and administration would be funded by MHFA and the developer. D. LEGAL • The HRA is authorized by law to submit applications for funding. IV. ALTERNATIVE RECOMMENDATION~S~ • Decide not to apply for one or more of the program concepts being developed by staff. V. ATTACHMENTS • Attachment A: Program description; Affordable Housing Land Trust • Attachment B: Program description; Rent Assistance Voucher • Attachment C: Program description; Housing Tax Credit VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A Attachment A Affordable Housing Land Trust The Housing and Redevelopment Authority (HRA) has had a housing development program with both Hennepin Technical College and Habitat for Humanity. The homes that are sold always have a deferred loan for a portion of the sale price. that can be attributed to the land value. Although the deferred loan matches the term of a permanent mortgage and reduces the purchase price for a qualifying buyer, it has never been a permanent affordable housing solution for Richfield. In recent years, lenders have become more receptive to allowing the land value to be held "in trust", never being conveyed to the buyer. Minnetonka is a local community that has explored and implemented the concept. West Hennepin Affordable Housing Land Trust (WHAHLT) was initiated by staff and policy makers in the City of Minnetonka. It was incorporated as a 501©(3) in May 2001. WHAALT is willing to include Richfield HRA as a partner. MHFA funds would be used for property acquisition and rehabilitation for affordable housing opportunities. Specifically, a below average valued property would be acquired which needs rehabilitation but would not qualify as a candidate for demolition. The property would be rehabilitated and sold to WHAHLT. WHAHLT, in cooperation with the Richfield HRA, would find an eligible buyer, and would sell the property to the buyer. The following conditions described the land trust model: • The buyer purchases the home but not the land. This creates an affordable opportunity because down payment, closing costs and the first mortgage are all less than in a traditional transaction. • The land is leased from WHAHLT. WHAHLT, and other land trusts like it, are nonprofits in the business of providing affordable housing by making these transactions work. The lease is a 99-year .renewable lease. The long term benefit is that if the owner/occupant sells, the next buyer will also be able to participate in the land trust model and the house continues to be affordable. • Buyers need to have income at or below 80 percent of the median income ($52,500). This is the same income limit used for homes developed in Richfield with Hennepin Technical College or nonprofit developers. • The buyer builds equity in the home, pays property taxes, and is able to deduct mortgage interest from federal income taxes. • Part of the property's appreciation upon sale goes to the land trust, and part goes to the seller. No properties have been identified yet. Having funds available would provide a quicker response to opportunities that may arise. The request to MHFA would be to provide funds for the acquisition and rehabilitation of two single-family properties. Attachment B Rent Assistance Vouchers The purpose of the Richfield Housing and Redevelopment Authority's (HRA) Section 8 program is to provide rent assistance to lower income resident renters. ,Most of these resources come from the federal government. MHFA has also developed state funded rent assistance programs for meeting housing/employment needs. The rent assistance vouchers help current residents become more economically self-sufficient. A focus of welfare reform has been providing opportunities for recipients to become economically self-sufficient. Barriers to self-sufficiency are housing, daycare and transportation costs. There are approximately 2,700 Minnesota Family Investment Program (MFIP) clients living in the southwestern suburban Hennepin County area. Approximately 240 MFIP clients are participating in self-sufficiency program with Minnesota Workforce Center (Bloomington). It is anticipated that the Workforce Center will serve 700 MFP clients during 2002. Of the 240 MFIP clients currently in the program, approximately 45 clients live in Richfield. The majority of them are not receiving any housing assistance. Some of them are on a waiting list for Section 8, but will have a three to four year wait. The Housing Trust Fund (Tenant Based Assistance) was established this year and is funded by the State of Minnesota. The program allows for agencies to create an individualized housing program based on the community needs and rental market. Richfield HRA is proposing a 42-month transitional rental assistance program. During the first year on the program, participants will receive rental assistance similar to the Section 8 program and the rental assistance will decrease each year the participant is on the program. The HRA's application will request an administrative fee of $42 per unit for each family that participates in the Voucher Program. This per unit fee will cover all administrative costs. This would potentially increase Section 8 funding by $10,080 per year. Present staff could administer the program. Attachment C Housing Tax Credits The proposed City Bella development was approved in 2000. Difficulty in securing the permanent financing and- changing marketplace conditions have delayed the project. As 2002 begins, the developer is preparing to move ahead with the .project, purchase Lyndale Hardware, and submit revised plans to the Housing and Redevelopment Authority (HRA). Housing tax credits attract investors to invest in housing development. The resulting public purpose is money that helps supply affordable housing for lower income households. In a tax credit project, 20% of the units must be occupied by residents with incomes at 50 percent of the metropolitan median income (below $37,350 in Minneapolis/St. Paul). The revised plans include a 118-unit non-age restricted cooperative at the corner of 66th Street and Lyndale Avenue and a 40 unit rental apartment building running north and south along the Lyndale Avenue frontage. The developer is exploring the role of non-profit ownership and the use of tax credits for the rental apartment building. The use of housing tax credits is being explored to determine if a portion of the rental housing could be made more affordable. Staff is presently evaluating with the developer where the tax credit assistance would match the proposed ownership structure and other financing sources being considered. The cost of preparing the detailed financial application would be the developers. AGENDA ITEM # REPORT # STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2002 REPORT PREPARED BY: REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER NAME, TITLE CHRIS REGIS, FINANCE MANAGER TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolutions designating official depositories for the Housing and Redevelo ment for 2002, includin the a royal of collateral I. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions designating official depositories, with the understanding that the HRA could not invest in any of the depositories beyond the level of insurance coverage of the pledaed collateral II. BACKGROUND N/A III. BASIS OF RECOMMENDATION A. POLICY - • In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must designate financial institutions annually. The institutions must pledge the collateral over and above the amount of federal insurance, as public depositories. 0123deposits • Richfield Bank & Trust Company, pledging $6,000,000 of collateral, has fulfilled this requirement and should be considered as a depository for the HRA's vendor accounts and all savings deposits in excess of $100,000. • The HRA must also designate annually, certain savings and loan associations and banks as official depositories for investment of certain HRA funds. With approval of these official depositories, the HRA will be able to invest funds in these institutions, not exceeding the federal insurance of $100,000. • Finally, a designation must be made for certain financial institutions as depositories for the investment of HRA funds for 2002. These institutions, such as investment brokerage firms, offer government securities in the manner required by law. These financial institutions include Richfield Bank & Trust Co., Piper Jaffray Inc., Dain Rauscher, Wells Fargo Brokerage Services, Morgan Stanley Dean Witter, Miller, Johnson & Kuehn, Inc., Morgan Keegan and N.A. Investment Services, Inc. B. CRITICAL ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an assignment pledged to the HRA in the amount specified in the attached resolutions. IV. ALTERNATIVE RECOMMENDATION~S~ • The HRA could solicit other financial. institutions for official depositories, but past relationships with the depositories recommended have proven satisfactory for the City. V. ATTACHMENTS • Resolution designating the Richfield Bank & Trust Company a depository of funds of the HRA of Richfield for the year 2002 and approving collateral. • Resolution designating certain savings and loan associations and banks as depositories for the investment of HRA funds in 2002. • Resolution designating certain financial institutions as depositories for the investment of HRA of Richfield funds in 2002. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None RESOLUTION NO. RESOLUTION DESIGNATING THE RICHFIELD BANK AND TRUST COMPANY A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2002 AND APPROVING COLLATERAL BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, the Richfield Bank and Trust Company be, and hereby is designated a depository of the funds of the Housing and Redevelopment of Richfield, subject to modification and revocation at any time by said Housing and Redevelopment Authority, and subject to the following terms and conditions The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield.. That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on demand. BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. The following officers or their facsimile signatures shall sign checks on this account; THOMAS E. HARMS, CHAIR SAMANTHA ORDUNO, EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that there shall be a daily interest savings account. All withdrawals from said account will be for transfers to the general checking account. BE IT FURTHER RESOLVED, that collateral in the amount of $6,000,000 in the form of a Bank. Deposit Guaranty Bond, deposited for safekeeping at the Kansas Bankers Surety Company, is hereby approved. Passed by the City Council of the City of Richfield, Minnesota this 23rd day. of January, 2002. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS - AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2002 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota: WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 - 118A.06, municipal funds may be deposited in any Savings and Loan Association or Bank which has its deposits insured by the Federal Savings and Loan Insurance Corporation (FSLIC) or the Federal Deposit Insurance Corporation: (FDIC); and WHEREAS, the amount of said deposits may not exceed the FSLIC/FDIC insurance covering such deposits which insurance amount is presently $100,000; and WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Housing and Redevelopment Authority's investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority funds that certain Savings and Loan Association and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 2002. 2. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Housing and Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. 3. The Treasurer and Finance Manager are hereby authorized to deposit Housing and Redevelopment Authority funds in various depositories up to the amount of $100,000, or such other amount as may be subsequently permitted by law, such deposits to be in the form of demand accounts for Public Unit Savings Certificates purchased by the City, payable to the Housing and Redevelopment Authority of Richfield on the signatures of the Housing and Redevelopment Authority Treasurer or Finance Manager. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager as his best judgment and the interests of the Housing and Redevelopment Authority dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies of the Housing and. Redevelopment Authority regarding the investment of Housing and Redevelopment Authority funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 23rd day of January, 2002. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2002 WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for investment; and and WHEREAS, different financial institutions offer different rates of return on investments; WHEREAS, the Housing and Redevelopment Authority-of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the Housing and Redevelopment Authority of Richfield providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections 118A.01 - 118A.06, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority of Richfield funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority of Richfield funds for 2002. 2. The following financial institutions designated as depositories for the Housing and Redevelopment Authority of Richfield funds: Dain Rauscher, Inc. Wells Fargo Brokerage Services Piper, Jaffray, Inc. N.A. Investment Services, Inc. Miller, Johnson & Kuehn, Inc Morgan Stanley Dean Witter Morgan Keegan 3. The Treasurer and Finance Manager are hereby authorized to deposit the Housing and Redevelopment Authority of Richfield funds. in any or all of the depositories herein designated. Such deposits may be made and withdrawn . from time to time by the Treasurer or Finance Manager's judgment and as the interest of the Housing and Redevelopment Authority of Richfield dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the investment of these funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 23rd day of January, 2002. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary AGENDA ITEM # 5$ REPORT # LF STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2002 REPORT PREPARED BY: STEVEN L. DEVICH, ADMINISTRATIVE SERVICES DIRECTOR NAME, TITLE REPORT PRESENTER: STEVEN L. DEVICH, ADMINISTRATIVE SERVICES DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~~~ ~ ~~/~ SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolution designating an official newspaper for 2002 for the Richfield Housin and Redevelo ment Authorit . I. RECOMMENDED ACTION: By Motion: Approve the resolution designating for 2002 the Richfield Sun-Current as the primary official newspaper and the Minneapolis Star Tribune as the secondary official newspaper for the Richfield Housina and Redevelopment Authority. II. BACKGROUND The Richfield Sun-Current, published by Minnesota Sun Publications, has been the City's and HRA's official newspaper for many years. Attached is a copy of a letter from Minnesota Sun Publications requesting that they be designated the official newspaper for the City of Richfield for 2002. The 2002 advertising rate structure for legal notices is as follows: 1 Column width $14.30 per inch $7.15 per subsequent inch 0123newspaper There are 11 lines per inch. The 2001 rate was $14.30 per inch and $7.15 per subsequent inch. For 2002, the staff recommends that the Minneapolis Star Tribune be considered as a secondary official newspaper. Legal notices would be published in the Minneapolis Star Tribune only when publication in the Richfield Sun-Current cannot be accomplished within required legal deadlines. The 2002 advertising rate structure for legal notices in the Sunday and week day, metro and statewide, issues is $3.78 per line. III. BASIS OF RECOMMENDATION A. POLICY • The Sun-Current has expressed an interest in continuing to serve as the official newspaper of the City and HRA. • The Sun-Current has served well as the official paper for many years. • The Sun-Current is delivered to nearly all residences in the City. B. CRITICAL ISSUES • The designation must be made at the first meeting of the new year. C. FINANCIAL • The cost for the official publications is reasonable. D. LEGAL • A newspaper must be designated each year by the City for publication of all official and legal City and HRA business. IV. ALTERNATIVE RECOMMENDATION(S~ • Not make a designation and request the City Clerk's office to check into using another publication. V. ATTACHMENTS • Resolution • Letter from Minnesota Sun Publications • Fax from Star Tribune VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None HRA RESOLUTION NO. RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2002 WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is designated the official legal newspaper for the Richfield Housing and Redevelopment Authority for 2002 for all publications required to be published therein. BE IT FURTHER RESOLVED that the Minneapolis Star Tribune is designated as the Richfield Housing and Redevelopment Authority's secondary official newspaper for 2002. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 23rd day of January, 2002. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary ~~ ~~ December 7, 200, ~ newspapers City of Richfield City Council 6700 Portland Avenue Richfield, MIV 55423-2599 Dear City Cour ~cil Members: The Richfield Sun Current would like to be considered for designation as the legal newspaper for the City of Richfi~d for the year 2002. All published -egal notices are posted on our website (www.mnsun.com) at no additional charge. This is an eni-ancement to the local news coverage already available on the Internet and will broad- en the readea :,hip of your legal notices. One of the main benefits of publishing your legal notices with the Sun Current is our home delivery. Sun Newspapers h2is become the primary source of community news in the suburbs. Your notices in our paper have the best chance of being seen. and read. Despite rising costs of operating our newspapers, there will be no .rate increase during the calendar year 2002.Our legal prices will remain the same. The rate structure for legals effective January 1, 2002 will be: 1 column width: $14.30 per inch for first insertion $ 7.15 per inch for subsequent insertions There are 11 lines per inch Two notarized affidavits on each of your publications will be provided with no additional charge. The deadline for regular length notices is 2:00 pm the Wednesday prior to publication. E-mailing the legal notices is an efficient and accurate way of getting the notices to us. The a-mail address for the legal department is IegalsC~mnsunpub.com. We still accept. notices on disk, faxed or through the mail. If you require more information to make your decision, please contact me or Meridel Hedblom, our Legal Representative, at 952-392-6880. Thank you for considering the Sun Current as the official newspaper for the City of Richfield in 2002. We appreciate the opportunity to serve the needs of your community. Sincerely, Gene Carr President and Publisher 10917 ~Tait,~ ViEw Roan ~ EDEN PxuxiE ~ hTiNNESOTA 55344 ~ 952-829-0797 ~ Fax: 952-941-3588 iL/ 1Y/ LVV1 Vf . vt i.•]..2 vim vi ~ -iv..~ .++.++~ ~~~+~~~-~~- ----~-- ---- .+ -- w 425 Poit(atid Ate. l+ipis. MN `Stiff; fax 612-673-4884 ~~~ ~~ . Tfia ~~ 1~JI G~ ~J' • From .h~dy _ _ Fa~a Pf~ono~ 612-673-7061, ext 5415 . p}~~ ~ ~ 1ar: 800-927-9233, ext 541$ (fdl Free] . o v~e»t a For R~,- ~ .o r~ eomnknt a waass eeph~ o rtease Recycle .~ _ . ~~ ~ .t e Q/ /Voz" . . C1 v ~ . . - ~Ot.rt c.tAry ~ t off. o~.. .. AGENDA ITEM # 5A REPORT # 3 STAFF REPORT r HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2002 REPORT PREPARED BY: CHERYL KRUMHOLZ, ADMIN. ASSISTANT NAME, TITLE REPORT PRESENTER: SAMANTHA ORDUNO, EXECUTNE DIRECTOR NAME, TITLE REVIEWED BY EXECUTNE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of designating Steven L. Devich, Administrative Services Director, as the Acting Executive Director of the HRA for 2002. I. RECOMMENDED ACTION: By Motion: Designate Steven L. Devich, Administrative Services Director, as the Actin Executive Director of the HRA for 2002. II. BACKGROUND On January 8, 2002, the City Council appointed the Administrative Services Director to serve as the Acting City Manager in the absence of the City Manager. Since the City Manager also serves as the Executive Director of the HRA, it is recommended that the Administrative Services Director, Steven L. Devich, be designated by the HRA as the Acting Executive Director of the HRA to serve in that capacity during the absence of the Executive Director. III. BASIS OF RECOMMENDATION A. POLICY • Designation of an Acting Executive Director is a normal business action of the HRA similar to the designation of depositories and the official newspaper. 0123director The Administrative Services Director has been designated as the Acting Executive Director in the past. The Administrative Services Director serves as the Acting City Manager, filling other similar responsibilities for the City Manager in the Manager's absence. B. CRITICAL ISSUES It is necessary to designate a person to serve as the Acting Executive Director to ensure continuation of HRA operations during an absence of the Executive Director. C. FINANCIAL • N/A D. LEGAL • N/A/ IV. ALTERNATIVE RECOMMENDATION(S~ • Defer this designation to another HRA meeting. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. AGENDA ITEM # [~ REPORT ~ ~' STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2002 JULIE URBAN, REPORT PREPARED BY: COMMUNITY DEVELOPMENT SPECIALIST NAME, TITLE SAMANTHA ORDUNO, REPORT PRESENTER: EXECUTIVE DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: The 2001 Outstanding Planning Award for Project Implementation was awarded to the Housing and Redevelopment Authority and the developer, Richfield State .Agency, for the development of Woodlake Centre by the Minnesota Chapter of the American Planning Association. I. RECOMMENDED ACTION: By Motion: No formal action is required. The Housing and Redevelopment Authority and Richfield State Agency received a planning award for Woodlake Centre, and the plaque will be presented to the Housing and Redevelopment Authority at the meeting. II. BACKGROUND The Minnesota Chapter of the American Planning Association (MnAPA) issues annual awards to recognize excellence in planning. MnAPA awarded the 2001 Outstanding Planning Award for Project Implementation to the Housing and Redevelopment Authority (HRA) and Richfield State Agency (RSA) for the development of Woodlake Centre. HRA staff accepted the award on behalf of the HRA and RSA at the MnAPA annual conference in September. Staff gave a presentation on the development to the several hundred planners in attendance. 0123WLCaward The award recognizes Woodlake Centre as a dramatic first step in the implementation of the City's downtown vision. III. BASIS OF RECOMMENDATION A. POLICY The development of Woodlake Centre was a significant achievement for the City and HRA, and the MnAPA award honors this achievement. B. CRITICAL ISSUES • The HRA and RSA worked in partnership to develop Woodlake Centre, and its efforts are recognized by the broader planning community. C. FINANCIAL • N/A D. LEGAL N/A IV. ALTERNATIVE RECOMMENDATION(S~ • N/A V. ATTACHMENTS • Attachment A: excerpts from the award application VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Steve Kirchner and Jan Susee of Richfield State Agency are invited. Attachment A SUMMARY Woodlake Centre, a mixed use development located in the center of the Richfield downtown area at 66th Street and Lyndale Avenue, is a dramatic first step in the implementation of the City of Richfield's downtown vision. In 1997, the City of Richfield undertook a community planning process to define and create a vision for its downtown. The resulting plan, the Lakes atLynda/e, was completed in 1999 and provides a framework for the transformation of the suburban style shopping area into a thriving urban center. The plan calls for a rediscovered downtown that is a community focal point and provides a variety of housing opportunities, upgraded business properties, pedestrian friendliness and community green space. Woodlake Centre, a 14.4-acre "urban village", was planned and constructed between 1999 and 2001 in response to the vision laid out for the Lakes atLynda/e area. The redevelopment project integrates the following components with an existing bank and clinic: Oaks at Pleasant: 138 units of townhome and flat style apartments nestled among mature oak trees providing a contemporary rental option and a mix of market-rate and affordable rents. The Pines: 78 units of assisted living offering a new type of life-cycle housing in a community with a significant number of senior adults. Woodlake Centre (commercial space): 90,000 square feet of office and retail space located in a former McDonald's parking lot. Design features include a central atrium bisecting the building and building placement close to the street, offering outdoor dining areas and pleasant walkways for pedestrians along 66th Street and Lyndale Avenue. Plaza and Sculpture Garden: A central plaza connects the uses and offers a natural space to be enjoyed by the project residents, commercial employees and customers, and the community at large. Sculpture by Twin Cities artists can be discovered throughout the plaza. Parking: A 600 car parking structure replaces a former surface parking lot in the center of the development. An attractive exterior design makes it a visual amenity as well as a practical requirement. McDonald's: Relocated from the basement of the bank building to a site in the Southwest corner of the development, the stand-alone McDonald's building abandons franchise architecture in favor of an understated design that compliments the remaining development. Woodlake Centre reflects the themes of the. Lakes atLynda/e vision through its new housing choices; natural amenities; accessibility for people; distinctive look and identity; new standard for architectural design within the community; and investment in the business community that offers residents and businesses new opportunities for shopping, restaurants, office and retail space. Woodlake Centre is the first step towards recreating Richfield's downtown. EXPLANATION OF PROJECT AND AWARD CRITERIA Ori ig'nnlitY/Innovation M 1 Richfield is a first-ring community with a suburban style downtown at its center, surrounded by 1950s/1960s era single family homes and apartments and physically dysfunctional business areas. The Lakes at Lyndo% (see Attachment A) plan provides a vision for addressing several of the needs of the community, and Richfield State Agency (RSA) took a significant step towards implementing the vision by developing Woodlake Centre. Woodlake Centre is an urban village that incorporates multiple features important to the long-range goals of the City. The new housing choices fill missing niches in the City's housing market while adding density to a community that has, over time, lost housing units and population to regional forces such as freeways and the metropolitan international airport. New commercial space offers contemporary restaurant opportunities for residents while providing new, quality office space for local businesses, and an opportunity for expansion of Richfield Bank & Trust (RB&T), a long-time member of the community. Tronsferobility On a regional level, Woodlake Centre carries out regional goals for compact growth and renewal in the inner ring. On a local level, Woodlake Centre sets the standard for design and livability for other development within the downtown. The development serves as a model for other projects in Richfield and throughout the metro area through its development process, project layout and project design. The process involved a local business owner working as the developer in partnership with the City's HRA and with extensive feedback from the neighborhood to create a development plan. Motives beyond merely profit drove the developer to create a project that benefits the community on a variety of levels. The project layout fills in new commercial and housing uses around existing commercial buildings, converts surface parking to a parking structure and public plaza, and increases housing densities. The project design offers a multitude of smart growth and livable community features that can be transferred to other projects: (See Attochments B and C) • pedestrian accessibility via buildings that address the street and sidewalks that connect uses; • public plaza and sculpture garden that serves as a connecting element; • thoughtful architectural design that utilizes classical lines and quality finishes creating a distinctive look for the new buildings but still blending the new with the existing commercial buildings and adjacent single family neighborhood; • a unique departure from franchise prototype design (Mc~onald's); • visually appealing parking structure; • accommodation for future skyways over busy streets to connect to future development on the other three quadrants, and • an internal street with parallel parking to meet a practical need for guest parking for - the housing. unli RSA went the "extra mile" to create a pro ject that not only meets the goals of the Lakes at Lynda/e plan but goes beyond that vision and sets a standard for quality development in the downtown area. Quality was chosen over fiscal considerations in countless ways: • central parking structure and underground parking rather than surface parking; • brick and stucco building materials; • high quality apartment living with numerous interior and exterior amenities; • central atrium in the commercial building (design coming before leasable space); • central plaza and sculpture garden; • adjustments made to the plans based on neighborhood input, and • buildings designed around existing mature trees and considerable effort made to preserve the trees in the midst of construction activity. Comprehensiveness Woodlnke Centre was designed to meet the goals and objectives of the Lakes atLynda/e plan, which was developed with extensive community input and intended to address several community needs: • Contemporary housing choices are provided at higher densities, meeting the City's life cycle housing needs to provide greater variety in housing type and price. • New retail and office space is provided. • Parking is hidden, allowing the building design to be the primary focus. • Pedestrian connections are made by bringing the commercial buildings close to the street and interconnecting residents (both within and outside the development), employees, customers and visitors through sidewalks and minimized automobile presence. • The plaza creates a natural setting for a community gathering space. Public Pnrticipotion • Development of the Lakes atLynda/e plan involved a visioning process, open house design sessions, and a quarterly newsletter sent to 1400 property owners and occupants in the area. • Building on this process, RSA continued to seek feedback from the adjacent neighborhood to create a Woodlake Centre development that integrates well with the existing neighborhood, enhancing the area while eliminating or minimizing any negative impacts (e.g. traffic, lighting, transition to single family). • A committee of community representatives, project stakeholders and RB&T family members (providing private funding for the sculptures) developed plans and solicited artwork for the sculpture garden. The support and acceptance from the public sector was attained through a partnership between RSA and the City's HRA to develop the project. Role of Plonners Planners, financial, design and development consultants formed the team that facilitated the Lakes atLynda/e planning process and approached RSA to consider developing the first implementation step of the vision. RSA then formed a team of architects, builders, planning consultants and City planning staff to create the Woodlake Centre development plan. Effectiveness/Results The Lokes of Lyndo% vision provided a framework for RSA to meet the expansion needs of RB&T, create needed opportunities for office and retail space, and address land use conflicts between the bank/clinic area and the single family homes that were located on a busy 66th Street. With the completion of Woodlake Centre, new housing choices and new business opportunities are now available and contemporary restaurants and retail provide services to residents. Woodlake- Centre has had an immediate impact on the visual landscape of the area, setting the stage for future development on the remaining three quadrants of the central downtown intersection and throughout Richfield's new downtown. AGENDA ITEM # 2 REPORT # 1 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2002 REPORT PREPARED BY: CHERYL KRUMHOLZ, ADMIN. ASSISTANT NAME, TITLE REPORT PRESENTER: SAMANTHA ORDUNO, EXECUTIVE DIRECTOR NAME, TITLE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of the election of officers for the Housing and Redevelopment Authority for 2002. I. RECOMMENDED ACTION: By Motion: Elect officers. for the Richfield Housing and Redevelo ment Authorit for 2002. II. BACKGROUND The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. Officers for 2001 were: Thomas Harms, Chair Joan Helmberger, Vice Chair Mike Sandahl, Secretary III. BASIS OF RECOMMENDATION _ A. POLICY • The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. 0123officers • The bylaws further provide that the Chair, Vice Chair and Secretary of - the HRA be elected at this meeting. B. CRITICAL ISSUES • The bylaws of the Richfield Housing and Redevelopment require that an election of officers for the HRA be held at the annual meeting in January. C. FINANCIAL • N/A D. LEGAL • N/A IV. ALTERNATNE RECOMMENDATION(S~ • Do not hold the election. However, this would be in contradiction of the HRA bylaws. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None.