04-10-01 agenda1~
CITY OF RICHFIELD, MINNESOTA
TUESDAY, APRIL 10, 2001
SPECIAL CONCURRENT MEETING OF
HOUSING AND REDEVELOPMENT AUTHORITY AND CITY COUNCIL
5:30 P.M.
COUNCIL CHAMBERS
AGENDA
Call to order
I. Status report on City Bella by developer, Gramercy Corporation
Council Staff Report No. 97
HRA Staff Report No. 34
Notes:
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 #
COUNCIL REPORT #
HRA REPORT #
STAFF REPORT
~ CONCURRENT MEETING OF
CITY COUNCIL
97
34
AND
HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 10, 2001
REPORT PREPARED BY:
REPORT PRESENTER:
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER AND
HRA EXECUTIVE DIRECTOR
BRUCE NORDQUIST,
HOUSING AND REDEVELOPMENT MANAGER
NAME, TITLE
BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
SIGNATURE
ITEM FOR COUNCIL/HRA CONSIDERATION:
Status report on City Bella by the developer, Gramercy Corporation.
I. RECOMMENDED ACTION:
No action is being requested. The City Council may have questions
for the developer and comments for the Housing and Redevelopment
Authority. The Housing and Redevelopment Authority will participate
concurrently with the City Council
II. BACKGROUND
The City Council at their March 26 meeting requested a status report on the City
Bella project.. A concurrent meeting of the City Council and Housing and.
Redevelopment Authority (HRA) has been scheduled for 5:30 p.m., Tuesday, April
10 in the Council Chambers.
Gramercy Corporation, the City Bella developer, will provide the status report.
0410CityBella
The City Council requested the status report after hearing concerns from
representatives of Lyndale Hardware. While the developer's private financial
commitments for the project are still pending, the concern by Lyndale Hardware is
that the developer has not acted to acquire its property. The Lyndale Hardware
representative even speculated that the City Bella development is "dead".
The project approvals by the City Council and HRA have been based on Gramercy
and Lyndale Hardware cooperatively acting to proceed with the purchase/sale of the
Lyndale Hardware site. The option agreement between Lyndale. Hardware and
Gramercy Corporation expired at the end of December 2000. Lyndale Hardware
proceeded to take those steps necessary to close the store by selling inventory and
selling the business and relocating employees to a replacement hardware store,
which has been combined with Lyndale Garden Center. Lyndale Hardware has
also indicated that it has, or anticipates, third party offers to purchase it property;
and that such purchase may not be consistent with the community vision for
redevelopment in the area. The HRA most recently reviewed the project status on
February 20; discussing early acquisition by the HRA or abridge loan to Gramercy
to support the purchase.
At the March 26 Council meeting a representative for Jan Nelson of Nelson's Hair
Complete also expressed concern with the redevelopment process at Lyndale
Hardware. A copy of the most recent letter sent by staff is attached. Jan Nelson
can .relocate, but to do so in advance of a Gramercy/Lyndale Hardware purchase
agreement may affect her eligibility for relocation benefits.
III. BASIS OF RECOMMENDATION
A. POLICY
• The. HRA's and developer's actions are guided by a Contract for
Private Redevelopment between the HRA and the developer.
• The City Council is guided by land use regulations and the
Comprehensive Plan and may advise the HRA on matters of mutual
interest.
B. CRITICAL ISSUES
• Lyndale Hardware needs to sell now and has pointed out that they are
at significant financial risk to delay the sale.
• The developer is waiting for private financial commitments and will
need the HRA's "but-for" finding completed. Ehlers is available to
perform this analysis once the developer's financial commitments are
in place.
C. FINANCIAL
• To be performed by the HRA's financial consultant, Ehlers, at the
appropriate time.
D. LEGAL , ,
• The project and contract performance is monitored by legal counsel,
Kennedy and Graven.
IV. ALTERNATIVE RECOMMENDATION~S~
• The City Council and HRA may determine topics for discussion.
• No action is being requested. This concurrent meeting has been arranged to
hear Gramercy Corporation provide a status report.
V. ATTACHMENTS
• Summary of City Bella facts (Attachment A)
• City Bella Key Actions (Attachment B)
• Excerpt from Redevelopment-Contract between the HRA and Gramercy
Corporation: "Timelines and Deadlines" (Attachment C)
• Letter to Jan Nelson from staff, March 15, 2001 (Attachment D)
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• Mike Conlan, Gramercy Corporation
Attachment A
Summary of Facts
City Bella Project
April 10, 2001
• The HRA has had an interest in the comprehensive redevelopment of the SW
quadrant of 66th Street and Lyndale Avenue since 1975.
• The proposed project is consistent with the City's Comprehensive Plan.
• In 1999, the "Lakes at Lyndale" master plan was completed. Lyndale Hardware was
designated as a key area in the plan. 1t was represented that between 1.999 and
2002, a plan for this area would be developed with construction to follow.
• The project is guided by a Contract for Private Redevelopment between the Housing
and Redevelopment Authority (HRA) and Gramercy. The performance deadlines are
included as an attachment.
• All land use approvals have been secured.
• An environmental assessment has been perfprmed and np significant impact
determined.
• The City Council adopted a preliminary plat for City Bella on December 11, 2000.
State Statute prohibits consideration of alternative plats for one year following
approval of a preliminary plat.
• The Developer has diligently worked to secure the cooperation of Lake Shore Drive
Condominium residents to initiate the project; including drafting agreements to
acquire property and make lot line improvements.
• A majority of Gramercy Park Cooperative residents have expressed suppprt of the
project to the Developer.
• Condemnation actions may be required due to ownership, or lease restrictions, or a
reluctance to voluntarily sell.
• Formal mediation, arranged by the Mediation Center and Aimee Gourlay, may be
useful to this impasse and has been successful in the past in other projects.
• Gramercy Corporation is awaiting detailed financial commitments, is making weekly
progress in that regard, and strongly believes there are no obstacles to project
success.
• The financial hardship of not having an unconditional purchase agreement and
immediate compensation is real and significant to Lyndale Hardware. Lyndale
Hardware believes it can't wait.
• The HRA evaluated an early acquisition response in February 2001. Although willing
to explore options and promote the development, the HRA expressed concern about
precedence and funding the Lyndale Hardware need while not responding to similar
situations in other projects.
• There are insufficient resources available to the HRA to pay Lyndale Hardware the
asking price of $3.5 million.
Attachment 6-1
C
CITY BELLA KEY ACTIONS
2000, 2001
C
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1/18/00 HRA: Consideration of "City Bella" development concept and agreement
with Gramercy corporation for exclusive cooperation with HRA in explorin~q
feasibility of redeveloping southwest quadrant of Lyndale Avenue and 66t
Street; Gramerc redevelo ment ro'ect area
2/26/00 O tion a reement between L ndale Hardware and Gramerc Cor oration
6/19/00 HRA:. Consideration of presentation by Lake Shore Drive Condominium
Association concerning goals, objectives and concerns about proposed
Cit Bella Redevelo ment Conce t
7/17/00 HRA: Approval of contract for private redevelopment between Gramercy
Cor oration and HRA for Cit Bella ro'ect, 66th Street and L ndale Avenue
8/8/00 Planning Commission: Study session discussing project and responding
to uestions.
8/21/00 HRA: Cit Bella site Ian u date
9/18/00 HRA: U date on Cit Bella and reconditions to develo ment
10/16/00 HRA: U date on Cit Bella and review of revised tans.
10/18/00 Public Open House at Woodlake nature Center; developer, plans, and
EAW available for uestions and comments.
10/24/00 Planning Commission: City Bella, CUP to allow a mixed use development
of rental housin ,coo erative housin ,retail and offices ace
10/24/00 Planning Commission: Final development plan to allow mixed use
develo ment of rental housin ,coo erative housin ,retail and offices ace
10/24/00 Planning Commission: City Bella, PUD and rezoning request to develop
mixed use development of rental housing, co-op ownership housing, retail
and offices ace
11/13/00 City Council: Consideration of first reading of ordinance amendment
rezoning land located in southwest quadrant of 66th Street and Lyndale
Avenue from single family residential and general commercial to planned
eneral commercial for Cit Bella ro'ect
Attachment B-2
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11/13/00 City Council: Consideration of first reading of transitory ordinance
vacatin ri ht-of-wa in Cit Bella ro'ect area
11/20/00 HRA: Consideration of modified preconditions and 30-day extension to
respond to HRA on modified preconditions and continue public hearing for
business subsid a reement for Cit Bella to December 18, 2000
12/11/00 City Council: Consideration of resolution...approving negative declaration
and Record of Decision for Environmental Assessment Worksheet for City
Bella ro'ect
12/11/00 City Council: Public hearing and consideration of resolution approving
final development plan and conditional use permit for City Bella project to
allow construction of mixed use residential/retail/office complex in
southwest uadrant of 66th Street and L ndale Avenue
12/11/00 City Council: Public hearing and second reading of transitory ordinance
vacatin ri ht-of-wa in Cit Bella ro'ect area
12/11/00 City Council: Public hearing and consideration of resolution granting
relimina a royal of Cit Bella subdivision for Gramerc Cor oration
12/18/00 HRA: Consideration of Contract for Private Redevelopment and continue to
January 16, 2001 the public hearing on Business Subsidy Agreement for
Cit Bella ro'ect
12/31/00 O tion a reement with L ndale Hardware ex fires.
1/16/01 HRA: Cancellation of public hearing on Business Subsidy Agreement for
Ci Bella ro'ect; ro'ect u date rovided
2/20/01 HRA: Consideration of early acquisition strategy for Lyndale Hardware
store and update. of project by developer of City Bella, Gramercy
Cor oration
3/26/01 City Council: Consideration of approval of resolution authorizing submittal
of request to Department of Trade and Economic Development for funding
ortion of redevelo ment costs of Cit Bella
4/10/01 HRA/City Council: Concurrent session to receive project status reports
from develo er.
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Attachment C
Excerpt from the Redevelppment Contract Between the HRA and Gramercy
Corporation
Section 10.8. "Time lines and Deadlines. The time in which various actions must
be taken pursuant to this. Redevelopment Agreement are as follows:
a) Approval of the Concept Plan (Article 11.5): on or before March 31, 2001.
b) Compliance with land acquisition requirements.(Section.3.2 (a)-(g)_on or before.May
1, 2001.
c) Continuance of condemnation triggered by final financing commitment Section.
3.2(i)(6): on or before June 30, 2001.
d) Voluntary Termination (Section 3.2(0): August 31, 2001.
Ift he Redeveloper is making substantial progress with respect to the redevelopment
project, and is unable to meet one or more of he above-referenced deadlines, the HRA
and the Redeveloper shall negotiate in good faith for a reasonable period to extend the
time in which necessary action(s) must be taken or occur."
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ATTACHMENT D
Community Development Department
MAYOR
MARTIN J. KIRSCH
CITY COUNCIL
JOHNENGER
SUSAN ROSENBERG
SUZANNE M.SANDAHL
GERTRUDE ULRICH
March 15, 2001
Ms. Jan Nelson
Nelson's Hair Complete
6606 Lyndale Avenue South
Richfield, MN 55423
Subject: City Bella -Lyndale Hardware Building
Dear Ms. Nelson:
CITY MANAGER This letter is to clarify to you the status of the City Bella Project and how it affects your
SAMANTHA ORDUNO
business from a relocation perspective. The project has received necessary approvals
from the Housing and Redevelopment Authority (HRA) and City. However, the project
still has some approvals pending.
At this time, the developer is negotiating the purchase of the building your business
occupies. Until these negotiations are completed and confirmed, the HRA can .not
confirm to you that you would be eligible for relocation benefits or should commit to a
new space because the Lyndale Hardware business is ending.
I greatly appreciate your patience and understanding as this project moves forward.
Please feel free to give me a call with any questions. I can be reached at 612/861-
9777.
Sincerely,
B uce Nordquist
Housing and Redevelopment anager
BN:js
Copy: Ken Helvey, Conworth, Inc.
Greg Bistrom, Briggs and Morgan
The Urban Hometown
6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423 612.881.9780 FAX: 612.861.8974
www.ci.richfield.mn.us AN EQUAL OPPORTUNITY EMPLOYER