10-16-00 agendai ._ ._
CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, OCTOBER 16, 2000
RICHFIELD CITY HALL
6700 PORTLAND AVENUE
COUNCIL CHAMBERS
7 P.M.
AGENDA
Call to order
Approval of minutes of (1) Regular HRA Meeting of September 18, 2000; (2) Special HRA
Meeting of September 25, 2000; and (3) Special HRA Meeting of September 27, 2000
1. Opportunity for citizens to address the HRA on items not on the agenda
Notes:
2. HRA approval of agenda
3. 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 resolution authorizing. issuance of Certificate of
Completion to Asche and Associates for 6915-13th Avenue, under Richfield
Rediscovered Program S.R. No. 61
B. Consideration of approval of resolution consenting to time extension to request
eminent domain proceedings within Interchange West area S.R. No. 62
•
Notes:
ADMINISTRATIVE REPORTS AND OTHER BUSINESS
4. Update on City Bella
Staff Report No. 63
Notes:
PUBLIC HEARING
5. Public hearing regarding HRA's annual Public_.Housing Authority Plan for Richfield's
Section 8 Housing Assistance Program
Staff Report No. 64
Notes:
• RESOLUTIONS
6. Consideration of resolution modifying Richfield Redevelopment Project Area and
modifying Gramercy Tax Increment Financing District, Urban Village Tax Increment
Financing District, Richfield Rediscovered 1999 Tax Increment Financing District, A-5
Tax Increment Financing District, and B-5 Tax Increment Financing District
Staff Report No. 65
Notes:
7. Consideration of resolution authorizing eminent domain proceedings to acquire certain
real properties located within Interchange West area
Staff Report No. 66
Notes:
8. Consideration. of resolution authorizing use of quick take procedure in pending
• condemnation actions within Interchange West area
Staff Report No. 67
Notes:
ADMINISTRATIVE REPORTS AND OTHER BUSLNESS
9. Redevelopment status update
Notes:
10. Executive Director report
Notes:
11. Claims and payroll
12.Oath of office to HRA Commissioner Kristal Stokes
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.
•
i
•
AGENDA SECTION:. _ R snl i ions
AGENDA ITEM # 8
REPORT # h ~
REPORT PREPARED BY: JOHN STARK,
COMMUNITY DEVELOPMENT MANAGER
NAME, TLTLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME, T[TLE
DEPARTMENT DIRECTOR REVIEW: ~ ~~ ~ ~
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the use of the "quick take" procedure in pending
condemnation actions in the Interchange West area.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution authorizing the use of the "quick
take" procedure in pending condemnation actions in the Interchange
West area.-
III. BACKGROUND ~
On July 17, 2000 and September 18, 2000 the Richfield Housing and
Redevelopment Authority (HRA) approved resolutions allowing condemnation
activities to begin on several properties in the Interchange West area. The
approved condemnation was for properties generally known as Walser Auto Sales.,
Canine College, the Masonic Temple and two properties owned by Leaseback
Properties.
At the time, condemnation was initially requested and approved for these properties
for traditional condemnation proceedings, which typically takes twelve months to
resolve. The schedule for the redevelopment of the Interchange West area,
1016quic
however, warrants the use of "quick take" condemnation proceedings, which can be
resolved in three to four months.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA entered into a Contract for Private Development (Contract)
with Best Buy Co., Inc. on March 20, 2000.
• Section 3.2 of the Contract allows Best Buy to request that the HRA
acquire those properties for which Best Buy has been unable to reach
a negotiated agreement through eminent domain.
• On July 17, 2000 and September 18, 2000, the HRA approved
condemnation for several properties in the Interchange West area.
The Contract, and redevelopment law, permit the use of "quick take"
.condemnation proceedings.
B. CRITICAL ISSUES
• The schedule for the redevelopment of the Interchange West area,
however, warrants the use of "quick take" condemnation proceedings.
C. FINANCIAL
• In accordance with the Contract, Best Buy will be responsible for all the
HRA costs associated with this condemnation action.
D. LEGAL
HRA legal counsel drafted the attached resolution.
IV. ALTERNATIVE RECOMMENDATION~S~
Do not approve the conversion of the existing condemnation actions in the
Interchange West area to "quick take" actions; this would have an adverse
affect on the overall schedule of the redevelopment.
V. ATTACHMENTS
Draft of resolution (A final draft of the resolution will be distributed prior to the
HRA meeting)
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• HRA legal counsel
Mr. Dave Menke and Ms. Laura Ramme Giertsen from Opus Northwest, LLC
DRAT
RESOLUTION NO.
RESOLUTION AUTHORIZING AND DIRECTING THE USE OF
"QUICK-TAKE" PROCEEDINGS IN PENDING
CONDEMNATIONACTIONS
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "HRA") is a housing and redevelopment authority duly constituted and
organized under law, with all of the powers enumerated in Minnesota Statutes, Sections
469.001 to 469.047 (the "Act"); and
WHEREAS, the HRA is authorized to develop and carry out redevelopment plans and
redevelopment projects, as those terms are respectively defined in Minnesota Statutes,
Section 469.002, subdivisions 16 and 14; and
WHEREAS, the City of Richfield on June 14, 1993 adopted a redevelopment plan (the
"Redevelopment Plan") for the Richfield Redevelopment Project Area (the "Project .Area"),
and on June 14, 1999 adopted a modification to the Redevelopment Plan and established the
Interchange West and Lyndale Gateway Tax Increment Financing District (the "TIF District").
WHEREAS, the Plans, as modified, contemplate the acquisition of certain real
properties which are located in the Project Area; and
WHEREAS, the HRA has entered into a contract for private redevelopment (the
"Contract") of land lying within the TIF District portion of the Project Area and
WHEREAS, by Resolution No. 771, adopted on July 17, 2000 and Resolution No.
adopted September 18, 2000, the HRA has authorized the acquisition of certain
properties in the Project Area by eminent domain (the "Properties");and
WHEREAS, the Contract contemplates acquisition of all of the properties necessary
for the project, including those properties identified in Resolution Nos. 771 and ,by
February 1, 2001; and
WHEREAS., in order to meet completion deadlines set forth in the Contract,
construction on the project is scheduled to commence on or about April 30,-2001; and
WHEREAS, in order to meet the construction deadlines for the redevelopment project
contemplated by the Contract, it is necessary for the HRA to acquire title to and possession
of the Properties in accordance with Minnesota Statutes, 117.042; and
WHEREAS, the HRA desires that property owners and tenants be given as much
advance notice of the so-called "quick-take" date as possible.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The HRA deems it necessary, in order to meet anticipated construction schedules, to
acquire title to and possession of the Properties prior to the filing of a final report of
commissioners, in accordance with Minnesota Statutes, Section 117.042.
Z. The HRA's attorney and staff are authorized and directed to take all necessary and
appropriate actions to acquire title to,and possession of the Properties in accordance
with Minnesota Statutes, Section 117.042. The HRA's attorney and staff are
authorized to establish the so-called "quick-take date" at the latest date that can be
negotiated with the developer. The date of possession shall be not earlier than
February 1, 2001 (as contemplated by the Contract) and shall not be later than April
30, 2001. (the construction commencement date necessary to complete the required
improvements by the deadline established in the Contract).
3. The Properties to be acquired are described on the attached Exhibit A.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 16th day of October, 2000.
ATTEST:
Thomas E. Harms, Chairperson
Mike Sandahl, Secretary
r:
FINAL
AGENDA SECTION: RESOLIITION
AGENDA ITEHI. 8
REPORT ~: 67
RESOLUTION NO.
RESOLUTION AUTHORIZING AND DIRECTING THE USE OF
"QUICK-TAKE" PROCEEDINGS IN PENDING
CONDEMNATION ACTIONS
_ WHEREAS,, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "HRA") is a housing and redevelopment authority duly constituted and
organized under law, with all of the powers enumerated in Minnesota Statutes, Sections
469.001 to 469.047 (the "Act"); and
WHEREAS, the HRA is authorized to develop and carryout redevelopment plans and
redevelopment projects, as those terms are respectively defined in Minnesota Statutes,
Section 469.002, subdivisions 16 and 14; and
WHEREAS, the City of Richfield on June 14, 1993 adopted a redevelopment plan (the
"Redevelopment Plan") for the Richfield Redevelopment Project Area (the "Project Area"),
and on June 14, 1999 adopted a modification to the Redevelopment Plan and established the
Interchange West and Lyndale Gateway Tax Increment Financing District (the "TIF District").
WHEREAS, the Plans, as modified, contemplate the acquisition of certain real
properties which are located in the Project Area; and
WHEREAS, the HRA has entered into a contract for private redevelopment (the
"Contract") of land lying within the TIF District portion of the Project Area and
WHEREAS, by Resolution No. .771, adopted on July 17, 2000 and Resolution No.
781, adopted September 18, 2000, the HRA has authorized the acquisition of certain
properties in the Project Area by eminent domain (the "Properties"); and
WHEREAS, the Contract contemplates acquisition of all of the properties necessary
for the project, including those properties identified in Resolution Nos. 771 and 781 ,by
February 1, 2001; and
WHEREAS, in order to meet completion deadlines set forth in the Contract,
construction on the project is scheduled to commence on or about April 30, 2001; and
WHEREAS, in order to meet the construction deadlines for the redevelopment project
contemplated by the Contract, it is necessary for the HRA to acquire title to and possession
of the Properties in accordance with Minnesota Statutes, 117.042; and
WHEREAS, the HRA desires that property owners and tenants be given as much
advance notice of the so-called "quick-take" date as possible; and
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The HRA deems it necessary, in order to meet anticipated construction schedules, to
acquire title to and possession of the Properties prior to the filing of a final report of
commissioners, in accordance with Minnesota Statutes, Section 117.042.
2. The HRA's attorney and staff are authorized and directed. to take all necessary and
appropriate actions to acquire title to and possession of the Properties in accordance
with Minnesota Statutes, Section 117.042. The HRA's attorney and staff are
authorized to establish the so-called "quick-take date" at the latest date that can be
negotiated with the developer. The date of possession shall be not .earlier than
February 1, 2001 (as contemplated by the Contract) and shall not be later than April
30, 2001 (the construction commencement date necessary to complete the required
improvements by the deadline established in the Contract).
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 16th day of October, 2000.
ATTEST: Thomas E. Harms, Chairperson
Mike Sandahl, Secretary
•
•
•
AGENDA SECTION: Resolutions
AGENDA ITEM # ~
REPORT # 6 6
STAFF REPORT
~ HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
OCTOBER 16,.2000
REPORT PREPARED BY: JOHN STARK,
COMMUNITY DEVELOPMENT MANAGER
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW: ~~/~~~_
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing eminent domain proceedings to acquire certain real
properties located within the Interchange West area.
I. RECOMMENDED ACTION:
By Motion: Adopt a resolution authorizing eminent domain
proceedings to acquire certain real properties within the Interchange
West area.
II. BACKGROUND
On March 20, 2000, the Richfield Housing and Redevelopment Authority (HRA)
adopted, and entered into a Contract for Private Development (Contract) with
Best Buy for the redevelopment of the Interchange West area. The Contract
contemplates the private acquisition of properties by Best Buy wherever possible.
Section 3.2 of the Contract, however, allows Best Buy to request that properties
be acquired through condemnation. The Contract stipulates that this request can
1016 Cond
• come only after Best Buy has taken reasonable steps to acquire property for
which the request is being made.
Best Buy has demonstrated that they have made diligent efforts to negotiate the
purchase of the properties in the Interchange West area. Most of these
negotiations have resulted in the execution of private purchase agreements
between Best Buy and property owners, including agreements with all 68
homeowners, eight commercial property owners and the owners of two
apartment complexes..
On July 17, 2000, the HRA authorized condemnation of six properties owned by
Walser Auto Sales and related entities located within. the Interchange West area.
On September 18, 2000, the HRA authorized condemnation on four additional
non-residential properties in the area.
Best Buy's attached correspondence contains a request that the HRA acquire
the remaining two apartment complex properties through condemnation. These
properties are ..located at 2015 West 77th Street (South Court Apartments) and
7601 Logan Avenue South (Logan Manor Apartments). Best Buy reports that
purchase offers were initially made on these properties in early June and that
further efforts to reach a negotiated purchase agreement with the property
owners. have been unsuccessful. Exhibit A of the attached resolution gives the
full address, parcel identification number and owners of these properties.
Mr. Dave Menke and Ms. Laura Ramme Giertsen of-Opus will be available to
report on property acquisition.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA entered into a Contract for Private Development with Best
Buy Co., Inc. on March 20, 2000.
• Section 3.2 of the Contract allows Best Buy to request that the HRA
acquire those properties, for which Best Buy has been unable to reach
a negotiated agreement, through eminent domain.
• Under the Contract, Best Buy has until November 15, 2000 to request
condemnation.
• Best Buy has submitted a Request for Condemnation for certain
properties.
B. CRITICAL ISSUES
• The timely acquisition of properties is critical to the schedule of this
project.
•
• • The objective will be to continue negotiations on all parcels for which
HRA condemnation proceedings has been sought.
C. FINANCIAL
• In accordance with the Contract, Best Buy will be responsible for all the
HRA costs associated with this eminent domain action.
D. LEGAL
• Legal counsel has reviewed the Request for Condemnation and has
found that Best Buy has satisfied the requirements set forth in Section
3.2 of the Contract.
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not approve the resolution authorizing the use of eminent domain for the
acquisition of the identified properties. To approve this at a later date may
have an adverse impact on the overall schedule.
V. ATTACHMENTS
• Resolution authorizing eminent domain proceedings to acquire certain real
properties
• Best Buy letter regarding request for condemnation
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• Mr. Dave Menke and Ms. Laura Ramme Giertsen of Opus Northwest, LLC
• HRA legal counsel Corrine Thomson
C
RESOLUTION NO.
• RESOLUTION AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTIES
WHEREAS, the Housing and Redevelopment Authority in and for the. City of
Richfield, Minnesota (the "HRA") is a housing and redevelopment authority duly
constituted and organized under law, with all of the powers enumerated in .Minnesota
Statutes, Sections 469.001 to 469.047 (the "Act"); and
WHEREAS, the HRA is authorized to develop and carry out redevelopment plans
and redevelopment projects, as those terms are respectively defined in Minnesota
Statutes, Section 469.002, subdivisions 16 and 14; and
WHEREAS, the City of Richfield on June 14, 1993 adopted a redevelopment plan
(the "Redevelopment Plan") for the Richfield Redevelopment Project Area (the "Project
Area"), and on June 14, 1999 adopted a modification to the Redevelopment Plan .and
established the Interchange West and Lyndale Gateway Tax Increment Financing District
(the "TIF District").
WHEREAS, the Plans, as modified, contemplate the acquisition of certain real
properties (the "Properties") which are located in the Project. Area and which are more
particularly described below in this resolution; and
• WHEREAS, the HRA has entered into a contract for private redevelopment (the-
- "Contract") of land lying within the TIF District portion of the Project Area (including; but not
limited to the Properties); and
WHEREAS, the Developer under the Contract is not in default of any of its
obligations thereunder, and the HRA is satisfied that the Developer has endeavored
reasonably, but without success, to negotiate the acquisition of the Properties; and
WHEREAS, the Developer has informed the HRA of the status of such efforts and
has established, to the satisfaction of the HRA, that there is no substantial likelihood that
further negotiations would be productive; and
WHEREAS, the Developer has requested that, in accordance with the terms of the
contract, the HRA commence eminent domain proceedings, and that such proceedings be
undertaken as soon as possible so as to assure that the Properties will be available for
development when needed; and
WHEREAS, the HRA is satisfied that the Developer has complied with the
requirements of the Contract concerning such request; and
WHEREAS, the HRA has retained a qualified independent appraiser to estimate
the market value of the Properties; and
WHEREAS, the HRA wishes to ensure that the owners of the Properties are
allowed a reasonable period of time to respond to said offer; and
WHEREAS, the Contract contemplates acquisition of all properties necessary for
the project, including the Properties, by February 1, 2001; and
WHEREAS, in order to meet completion deadlines set forth in the Contract,
construction on the Project is scheduled to commence on or about April 30, 2001; and
WHEREAS, in order to the construction deadlines for the redevelopment project
contemplated by the Contract, it is necessary for the HRA to acquire title to and
possession of the Properties in accordance with Minnesota Statutes,.117.042; and
WHEREAS, the HRA desires that property owners and tenants be given as .much
advance notice of the so-called "quick-take".
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
It is necessary to acquire the Properties as described below in this resolution in
order for the HRA to carry out the purposes of the Plans, as modified, and the Act,
to deal with properties that are structurally substandard and. to eliminate and
prevent the development or spread of conditions of blight found to exist by the City
and the HRA.
2. Acquisition of the Properties by eminent domain, in the manner provided by
Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public
purpose and is hereby authorized.
3. The HRA deems it necessary for the reasons set forth in the Plans, as modified, to
commence condemnation of the Properties.
4. The HRA's staff is authorized to review and approve the appraisal reports prepared
by the independent appraiser and to make offers to the property owners based
upon the appraised values of the properties as approved by staff.
5. The HRA deems it necessary, in order to meet anticipated construction schedules,
to acquire title to and possession of the Properties prior to the filing of a final report
of commissioners, in accordance with Minnesota Statutes, Section 117..042.
6. The HRA's attorney and staff are authorized to commence and prosecute to
completion eminent domain proceedings to acquire fee simple absolute title to the
Properties, pursuant to Minnesota Statutes, Section 117.042 and to pay to the
owner(s) or into court a sum of money equal to the HRA's approved appraisal of
value for the Properties, as determined by staff. Provided, however, that eminent
• domain proceedings shall not be commenced until at least 14 days after the HRA's
attorney or staff has mailed offers to purchase the Properties to the fee owners of
the Properties. The HRA's attorney and staff are authorized to delay
commencement of proceedings beyond said 14-day period if they deem it to be in
the HRA's interests or in the interests of facilitating a negotiated settlement of the
Properties between the properly owners and the developer.
•
7. The HRA's attorney and staff are authorized to establish the so-called "quick-take"
date at the latest date that can be negotiated with the developer. The date of
possession shall be not earlier than February 1, 2001 (as contemplated by the
Contract) and shall not be later than April .30, 2001 (the construction
commencement date necessary to complete the required improvements by the
deadline established in the Contract).
8. The Properties to be acquired are described on the attached Exhibit A.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of October, 2000.
ATTEST:
Mike Sandahl, Secretary
Thomas E. Harms, Chairperson
•
EXHIBIT A
Legal Descriptions of Properties to be Acquired
Parcel 1:
Tax record owner: South Court, L.L.C.
Street address: 2015 West 77th Street
Tax parcel PID: 33-028-24 33 0008
Legal Description: The South half of the following described premises: Beginning at a
point on the South line of said sections 656 feet East of the Southwest
corner of Section 33, Township 28, Range 24; thence running North
1312.96 feet; thence East 163.8 feet; thence South 1312.77 feet;
thence West 164 feet to the point of beginning, except the South
328.4 feet thereof, and except the North 166 feet of the East 59 feet,
according to the United States Government Survey thereof and
situated in Hennepin County, Minnesota.
Parcel 2:
Tax record owner: Klos Family Limited Partnership
Street address: 7601 Logan Avenue South
Tax parcel PID: 33-028-24 34 0006
Legal Description: The North 173.00 feet of the North half of the West 5 acres of the
Southeast Quarter of the Southwest Quarter, Section 33, Township
28, Range 24, according to the United States Government Survey
thereof, Hennepin County, Minnesota
•
•
October 10, 2000
VIA MESSENGER
Ph.: (612) 861-9705
Richfield Housing and Redevelopment Authority
Attn: Samantha Orduno, Executive Director
6700 Portland Avenue South
Richfield, MN 55423
RE: Contract for Private Development by and between the HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD
AND BEST BUY CO., INC., -Request for Condemnation
Dear Samantha:.
In accordance with Article III of the Contract for Private Development by and between
the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD AND BEST BLTY' CO:, INC., .Best Buy hereby requests condemnation of
that portion of the Development Property attached to this letter as Exhibit A
("Condemnation Property"). ..Best 'Buy hereby submits the following as part of this
request.
1. That Best Buy has taken all reasonable steps to acquire the Condemnation
Property, including making offers to the owners with purchase prices at or better
.than fair market value, including relocation expenses, based upon information
furnished to us by qualified appraisers and a qualified relocation consultant.
2. That Best Buy has the financial ability to acquire the Development Property and
construct the Development. A copy of Best Buy's most recent annual report and
10-K has been previously provided to the Authority.
3. That based on preliminary investigations Best Buy is not aware of any conditions
that would prevent Best Buy from proceeding with the acquisition and
development of the Development Property.
4. That attached to this letter as Exhibit B is a list of all residential properties within
the Development Property. As indicated on the exhibit, Best Buy now has fully
executed purchase agreements on all sixty-eight (68) residential properties.
5. That attached to this letter as Exhibit C is a list of all commercial properties
within the Development Property .showing the properties where purchase
`~d~~n~~a8°t~~1~5~'f~.~ying Cloud Drive. ~ -Eden Prairie, MN 55344 • 612/947-2000
Mailing Address: P.O. Box 9312 • Minneapolis, MN 55440 • NYSE Symbol: BBY
Richfield Housing and Redevelopment Authority
October 10, 2000
Page 1 of 2
agreements or options to .purchase have been executed and the properties where
no purchase agreements or options to purchase have been executed.
At this time, Best Buy has executed purchase agreements with most of the property
owners and has requested condemnation on the balance of the property identified.
Despite this effort, however, it is possible that property exists which has not been.
identified. In view of this possibility, Best Buy requests that the deadline for
requesting condemnation for any remaining property or property interests necessary
for the Best Buy project be extended until January 31, 2001.
If there is any other information you need, please advise.
Thank you.
Sincerely,
'Pwr~ ~• `c~~_
James E. Istas
Associate General Counsel
Ph.:612/995-7082
w/ enc.
cc: George Lopuch (w/o enc.)
Joe Joyce (w/o enc.)
Pat Matre (w/o enc.)
Della Kolpin (w/o enc.)
Kennedy & Graven, Chartered (Via Messenger)
470 Pillsbury Center
Minneapolis, MN 55402
Attention: John B. Dean
Ph.: (612) 336-9207
Opus Northwest, LLC (Via Messenger)
Opus Corporate Center
10350 Bren Road West
Minnetonka, MN 55343
Attn: Timothy W. Murnane
Ph: (952) 656-4568
Faegre & Benson (Via Messenger)
2200 Norwest Center
90 South 7`~ Street
Minneapolis, MN 55402
Attn:. Mark Savin
•
EXHIBIT A
Property Owners and Legal Description of Condemnation Properties
L>/.9/.~/.~/.~/69/a4/~A/sY/O/.m'/.!?'IM/~/.M/d`Y.dV.~/.~Y.q/.W/.~/.~'/.~/~/.~/N'/B/O/df/.P/~/.£9/~Yw9hB/~/tlw/A/~'/.~/i•/.~/m'/p/®'/®/,S~/'IM/N/~/.A/A./.e~'/.w'/.~Y..~/..E'/.1!/ /aY/.l//d.'iP'/R.'.~/®/~/CS:-.~, ~1~/a*/O/,.dV.!
Property Owner:
Property Address:
Richfield, Minnesota
The land referred to is situated in the State of Minnesota, County of Hennepin, and is
described as follows:
The South half of the. following described premises: Beginning at a point on
the South line of said sections 656 feet East of the Southwest corner of
Section 33, Township 28, Range 24; thence running North 1312.96 feet;
thence East 163.8 feet; thence South 1312.77 feet; thence. West 164 feet to
the point of beginning, except the South 328.4 feet thereof, and except the
North 1.66 feet of the East 59 feet, according to the United States
Government Survey thereof and. situated in Hennepin County, Minnesota.
Property Owner: Klos Family Limited Partnership
Property Address: Logan Manor Apartments
South Court, L.L.C.
2015 West 77~' Street
7601 Logan Avenue South
Richfield, Minnesota
The land referred to is situated in the State of Minnesota, County of Hennepin, and is
described as follows:
The North 173.00 feet of the North half of the West 5 acres of the Southeast
Quarter of the Southwest Quarter, Section 33, Township 28, Range 24,
according to the United States Government Survey thereof, Hennepin
County, Minnesota.
•
EXHIBIT B
SUMMARY ANALYSIS
Residential Site Acquisitions -Best Buy Headquarters
•
Map
~~~
Numtter
roperly Owner
Pr.~r.~,
Address
treet Name Purchase
Agreement
Si ned
1 Church of St. Richard 7601 Penn Ave. South X
2 Churoh of St. Richard (Greg Esly) 7 Penn Ave. South X
3 Mohamed 8 Bashes Sharief 761 Penn Ave. South X
4 Gladys H. Jensen 7621 Penn Ave. South X
5 James Lang 762 Penn Ave. South X
6 Somboun & Vy Voresane 7 Penn Ave. South X
7 Cynthia 8 Michael Triggs 763 Penn Ave. South X
8 Ronald & Hellen Matheson 764 Penn Ave. South X
9 Syewart & Alice Stotesbery 7 Oliver Ave. South X
10 John & Helen Cretzmeyer 7 Oliver Ave. South X
11 Christopher M. Hankins 761 Oliver Ave. South X
12 Ann Louise Strub Trustee (Joseph) 761 Oliver Ave. South X
13 Esther L Link (Esther 8 Thomas Haley) 762 Oliver Ave. South X
14 Paul F. & Louise J. Ragatz 762 Oliver Ave. South X
15 Bankers Trust Co. of CA (Lucretia Smith & Thomas Brothen) 762 Oliver Ave. South X
16 Robert & Loraine Guthe 7 Oliver Ave. South X
17 Jason & Demina Popowski 7 Oliver Ave. South X
18 Vuthy & Ra Kour 7 Oliver Ave. South X
19 Rt Selloff & M Selloff 7601 Oliver Ave. South X
20 Barbara L Gresbrink 7 Oliver Ave. South X
21 Guy S Julie Astell 761 Oliver Ave. South X
22 Elizabeth and Wendy Adams 7621 Oliver Ave. South X
23 James & Catherine Bergin 762 Oliver Ave. South X
24 Tracy and Kenneth Tracy 7 Oliver Ave. South X
25 Florence Laverne Smith 7 Oliver Ave. South X
26 William & Mary Topero 764 Oliver Ave. South X
27 Todd W. Anondson 7 Newton Ave. South X
28 Gisela & Leonard Hardie Jr. 760 Newton Ave. South X
29 Rueban & Carol Tulikangas 761 Newton Ave. South X
30 Levine J. Eischen 762 Newton Ave. South X
31 John& Lavone Tinker - 762 Newton Ave. South X
32 L. Abrahamson (James Tripp & Margaret Knutson) Newton Ave. South X
33 Joan M. Fuller 7 Newton Ave. South X
34 Lois A. Lovdal 7 Newton Ave. South X
35 John & Leone Grady 7601 Newton Ave. South X
36 TL 8 DL Nelson (Daretta Honer) 7 Newton Ave. South X
37 MJ Miller & PJ Miller (Mark Miller) 7611 Newton Ave. South X
36 Hans Van Schagen 761 Newton Ave. South X
39 Stan Thompson & Diana Thompson 762 Newton Ave. South X
40 Charles Beaty 762 Newton Ave. South X
41 Gary & Patricia Hughes 7 Newton Ave. South X
42 Elmer R. Seaberg (Mary Seaberg) 7639 & 7641 Newton Ave. South X
43 Kenneth & Louise Neslund (Sheri Keep) 7643 8 7 Newton Ave. South X
44 Terry & Debbie Ahlstrom 7 Morgan Ave. South X
45 Thomas 8 Lynn Penney 7 Morgan Ave. South X
46 Bruce 8 Diane Wettemach 761 Morgan Ave. South X
47 Thomas Mead & Donna Kupfer-Mead 762 Morgan Ave. South X
48 Mary Ellen Mathieu 762 Morgan Ave. South X
49 Roper & lone Rolstad 762 Morgan Ave.. South X
50 Sandra Adelmann 7 Morgan Ave. South X
51 Margareta E Lagemieier 7 Morgan Ave. South X
52 Nimtella & Doodnauth Dial 7 Morgan Ave. South X
53 David Bakke & Lydia Bakke 7601 Morgan Ave. South X
54 Chris & Chnisse Bomeman 7 Morgan Ave. South X
55 John McCune 761 Morgan Ave. South X
56 Maurice & Sandra Engen 7621 Morgan Ave. South X
57 Donna & Daniel Koch 762 Morgan Ave. South X
58 Helen Anderson 762 Morgan Ave. South X
59 Genet 8 Roman Abebe 763 Morgan Ave. South X
60 Frances 8 George Demont 7645 & 764 Morgan Ave. South X
61 Thomas K. Satre 191 76th Street West X
62 Paul D. Kachelmeier 7608 & 761 Logan Ave. South X
63 Wayne Peterson 8 Trent McKay 761 Logan Ave. South X
64 Delaine Curtis Rud 762 Logan Ave. South X
65 Jon & Mary Jo Straub 7626 &'762 Logan Ave. South X
66 Martin SChroepfer 7 Logan Ave. South X
67 David Workman & Catherine Workman 7636 & 7 Logan Ave. South X
68 Kevin L Anderson Et al 7 Logan Ave. South X
TD7ALS: - 06
EXHIBIT C
Summary Analysis
Commercial Site Acquisitions -Best Buy Headquarters
Property Owner (Use)
Property
Address
Street Name Purchase
Agreement
Signed
7601 Company (Logan Manor Apartments) 7601 Logan Ave. South (3)
Century Lodge No 338 (Masonic Lodge) 761 Logan Ave. South (1)
Pioneer Plastics 762 Logan Ave. South x
Ed Cirkl (ASAP Mailing Services) 763 Logan Ave. South x
Dall Foods Inc (Tom Thumb) 7600 Knox Ave. South x
William Stiles (Nichol's Electric) 7608 Knox Ave. South x
Leaseback Prop. Ltd. Partner 7626 Knox Ave. South (1)
The Diplomats 2101 77th Street West x
South Court LLC 201 77th Street West 3)
Leaseback Prop. Ltd. Partner 7701 Morgan Ave. South 1
Jon & Sandra Lonneman 770 Morgan Ave. South x
Mary L. Whiting 771 Morgan Ave. South 1)
Milton Westlund (Westlund Associates) 7700 Logan Ave. South x
Holmes Limited Partnership (Outdoors Again) 7701 Logan Ave. South x
Wall MCCarth 1900 West 78th Street x
Walser 2100 West 78th Street 2)
•
TOtal: 9
I (1) On September 18,:2000 the HRA authorized eminent domain on these properties.
(2) On July 17,.2000 the HRA authorized eminent domain on this property.
(3) Subject properties requesting eminent domain authorization at October 16, 2000 HRA meeting.
•
AGENDA SECTION:
AGENDA ITEM #
REPORT #
J STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
~ OCTOBER 16, 2000
Resolutions
65
SID INMAN AND REBECCA KURTZ,
FREERS BL ASSOCIATES, INC.
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 a resolution modifying the Richfield Redevelopment Project Area and
modifying the Gramercy Tax Increment Financing District, Urban Village Tax Increment
Financing District, Richfield Rediscovered 1999 Tax Increment Financing District, A-5 Tax
Increment Financing District, and B-5 Tax Increment Financing District.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution modifying the Redevelopment Plan
for the Richfield Redevelopment Project Area and modifying the
Gramercy Tax Increment Financing Plan, Urban Village Tax Increment
Financing Plan, Richfield Rediscovered 1999 Tax Increment Financing
Plan, A-5 Tax Increment Financing Plan, and B-5 Tax Increment
Financing Plan.
1016 TIF Modifications
II. BACKGROUND
Since 1990, the Richfield Rediscovered New Construction Program has provided
the vehicle for the purchase and clearance of small, substandard houses and the
availability of vacant lots for the construction of larger, single family homes, The
demand for this new housing continues. Over time, however, the dynamics of the
program have changed such that a new approach to funding was required in order
to sustain the program.. To that end, in 1999 the City of Richfield sold General
Obligation Bonds to provide funding for the 2000 Richfield Rediscovered Program.
These bonds are paid for utilizing the 15 percent trust fund revenue source from the
Gramercy and Urban Village tax increment projects. The Housing and
Redevelopment Authority (HRA) and City Council. have. recently completed actions
to expand the property to be acquired and to provide funding for the next several
years. The proposed modifications herein account for those payments from the
Gramercy and Urban Village tax increment projects and add an additional 11
parcels that will be available for acquisition.
The modifications are specifically aimed at the following:
Modification of Richfield Redevelopment Projec# Area Plan:
• Modification to the parcels to be acquired in the Gramercy Tax Increment Financing
(TIF) District, Urban Village TIF District and Richfield Rediscovered TIF District;
• .Modification to the Sources of Funds to include interfund loans in the Gramercy TIF
District and Urban Village TIF District;
• Modification to the Original Tax Capacity and Tax Rate, the Estimated Captured Net
Tax Capacity Value/Increment, and the Estimated Impact on Other Taxing
Jurisdictions of the Gramercy TIF District to include current values;
• Modification to the Uses of Funds to include City Bella in the Gramercy TIF District;
• Modification to the Sources of Revenue/Bonded Indebtedness to increase the total
to $63,000,000 in the Gramercy TIF District; and
• Modification to the Statement of Goals and Objectives and the Legal Description of
Property for the A-5 and B-5 TIF Districts.
Modification to the Gramercy Tax Increment Financing Plan:
• Modification to incorporate the list of 28 acquisition parcels from. the Richfield
Rediscovered 1999 Tax Increment Financing (TIF) Plan;
•
• Modification to incorporate the new list of 11 additional acquisition parcels currently
under the Richfield Rediscovered 1999 TIF Plan:
Address Parcel Numbers
6856 Park Avenue 26-028-24-33-0103
1015 East 69th Street 26-028-24-34-0050
6616 Second Avenue 27-028-24-42-0064
7232 Second Avenue 34-028-24-13-0121
6620 Fifth Avenue 27-028-24-41-0028
6309 Bryant Avenue 28-028-24-11-0049
6440 Humboldt Avenue 28-028-24-24-0009
7515 Humboldt Avenue 33-028-24-42-0077
6919 Logan Avenue 28-028-24-34-0064
6856 Park Avenue 26-028-24-33-0094
6539 Oliver Avenue 28-028-24-23-0092
• Modification to allow the use of Gramercy TIF District increment for eligible project
costs on Richfield Rediscovered 1999 TIF Plan acquisition parcels and new
acquisition parcels;
• Modification to include the current Impact on the Tax Base, Impact on the Tax
Rates, and Estimated Captured Tax Capacity Upon Project Completion;
• Modification to recognize the possibility of future modifications to the Richfield
Rediscovered 1999 TIF Plan and list of acquisition parcels and the need to
simultaneously modify the Gramercy TIF Plan to continue to allow the use of
Gramercy increment to pay eligible project costs for the Richfield Rediscovered
acquisition parcels;
• Modification to allow for interfund loans to cover project expenses and to include
language stating the City's intention to pay back the interfund loans with tax
increment funds; and
• Modification of the Sources and Uses of Revenue/Bonded Indebtedness and the
Uses of Funds to include an increase to a total of $63,000,000 due to the addition
and identification of the construction of a mixed-use commercial/housing component
referred to as City Bella.
Modification to the Urban Village Tax Increment Financing Plan:
• Modification to incorporate the list of 28 acquisition parcels from the Richfield
Rediscovered 1999 TIF Plan;
• Modification to incorporate the new list of 11 additional acquisition parcels currently
under the Richfield Rediscovered 1999 TIF Plan:
Address Parcel Numbers
6856 Park Avenue 26-028-24-33-0103
1015 East 69th Street 26-028-24-34-0050
6616 Second Avenue 27-028-24-42-0064
7232 Second Avenue 34-028-24-13-0121
6620 Fifth Avenue 27-028-24-41-0028
6309 Bryant Avenue 28-028-24-11-0049
6440 Humboldt Avenue 28-028-24-24-0009
7515 Humboldt Avenue 33-028-24-42-0077
6919 Logan Avenue 28-028-24-34-0064
6856 Park Avenue 26-028-24-33-0094
6539 Oliver Avenue 28-028-24-23-0092
• Modification to allow the use of Urban Village TIF District increment for eligible
project costs on Richfield Rediscovered 1999 TIF Plan acquisition parcels and new
acquisition parcels;
• Modification to allow for interfund loans to cover project expenses and to include
language stating the City's intention to pay back the interfund loans with tax
increment funds; and
• Modification to recognize the possibility of future modifications to the Richfield
Rediscovered 1999 TIF Plan and list of acquisition parcels and the need to
simultaneously modify the Urban Village TIF Plan to continue to allow the use of
Urban Village increment to pay eligible project costs for the Richfield Rediscovered
. acquisition parcels.
•
Modification to the Richfield Rediscovered 1999 Tax Increment Financing Plan:
• Modification to incorporate the new list of 11 additional acquisition parcels currently
under the Richfield Rediscovered 1999 TIF Plan:
Address Parcel Numbers
6856 Park Avenue 26-028-24-33-0103
1015 East 69th Street 26-028-24-34-0050
6616 Second Avenue 27-028-24-42-0064
7232 Second Avenue 34-028-24-13-0121
6620 Fifth Avenue 27-028-24-41-0028
6309 Bryant Avenue 28-028-24-11-0049
6440 Humboldt Avenue 28-028-24-24-0009
7515 Humboldt Avenue 33-028-24-42-0077
6919 Logan Avenue 28-028-24-34-0064
6856 Park Avenue 26-028-24-33-0094
6539 Oliver Avenue 28-028-24-23-0092
• Modification to allow the use of Richfield Rediscovered 1999 TIF District increment
for eligible project costs on Richfield Rediscovered 1999 TIF Plan acquisition
parcels and new acquisition parcels;
• Modification to recognize the possibility of future modifications to the Richfield
Rediscovered 1999 TIF Plan and list of acquisition parcels and the need to
simultaneously modify the Richfield Rediscovered 1999 TIF Plan to continue to
allow the use of Richfield Rediscovered 1999 increment to pay eligible project costs
for the Richfield Rediscovered acquisition parcels.
Modification to the A-5 Tax Increment Financing Plan:
• Modification to remove two parcels from the A-5 TIF District and include them in the
Richfield Rediscovered 1999 TIF District
Modification to the B-5 Tax Increment Financing Plan:
• Modification to remove one parcel from the B-5 TIF District and include it in the
Richfield Rediscovered 1999 TIF District
III. BASIS OF RECOMMENDATION
A. POLICY
• It is the City's policy to comply with the State of ,Minnesota's Tax
Increment Financing Act and the administrative rules issued from time
to time by the Office of the State Auditor.
B. CRITICAL ISSUES
• The Richfield Rediscovered New Construction Program continues to
be a successful program which clears small, substandard houses and
provides vacant lots for the construction of larger single family homes
in the community.
Richfield Rediscovered is a proven redevelopment program yet
requires the modification of its plans from time to time in order to
provide updated lists of qualifying properties to comply with tax
increment budgetary considerations and to maintain funding
opportunities.
C. FINANCIAL
• The HRA's development consultant, Ehlers and Associates, Inc., has
prepared the modifications in conjunction with legal counsel's review
and found them to be in compliance with existing law.
D. LEGAL
• The HRA's development consultant, Ehlers and Associates, Inc., has
prepared the modifications in conjunction with legal counsel's review
and found them to be in compliance with existing law.
IV. ALTERNATIVE RECOMMENDATION(S~
• The HRA may choose to delay approval of the modification or not approve
them at this time. However, that would provide an interruption to the
continuity the Richfield Rediscovered Program, delay the removal of
substandard properties, and delay the .construction of new single family
homes.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Sid Inman of Ehlers and Associates will be in attendance at the meeting to
answer any questions.
r~
•
HRA RESOLUTION NO.
RESOLUTION MODIFYING THE RICHFIELD REDEVELOPMENT PROJECT AREA
AND ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN RELATING
THERETO; MODIFYING THE TAX INCREMENT FINANCING PLAN FOR THE
GRAMERCY TAX INCREMENT FINANCING DISTRICT; MODIFYING THE TAX
INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT
FINANCING DISTRICT; MODIFYING THE TAX INCREMENT FINANCING PLAN FOR
THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT;
MODIFYING THE TAX INCREMENT FINANCING PLAN FOR THE A-5 TAX
INCREMENT FINANCING DISTRICT; AND MODIFYING THE TAX INCREMENT
FINANCING PLAN FOR THE B-5 TAX INCREMENT FINANCING DISTRICT
WHEREAS, it has been proposed that the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota (the "HRA") adopt the Modification to the
Redevelopment Plan for the Richfield Redevelopment Project Area, Modification. to the Tax
Increment Financing Plan for the Gramercy Tax Increment Financing District, Modification
to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing
District, Modification to the Tax Increment Financing Plan fqr Richfield Rediscovered 1999
District; Modification to the Tax Increment Financing Plan for the A-5 District; and
Modification to the Tax Increment Financing Plan for the B-5 District (collectively, the
"Modifications"), all pursuant to and in conformity with existing law, including Minnesota
Statutes, Sections 469.00.1 through 469.047, and Sections 469.174 to 469.179, inclusive,
as amended, all as reflected in the Modifications and presented for the HRA's
consideration; and
WHEREAS, the HRA has investigated the facts relating to the Modifications and
has caused the Modifications to be prepared; and
WHEREAS, the proposed developments as described in the Modifications, in the
opinion of the HRA, would not reasonably be expected to occur solely through private
investment within the reasonable foreseeable future, and therefore the use of tax
increment financing is deemed necessary; and
WHEREAS, the HRA has performed all actions required by law to be performed
prior to the adoption of the Modifications, but not limited to, notification of Hennepin. County
and School District No. 280 having taxing jurisdiction over the property to be included in
Gramercy, Urban Village, and Richfield Rediscovered 1999, A-5 and B-5 Tax Increment
Financing (TIF) Districts, notice of the modifications to the local county commissioner, a
request for review of and written comment on the Plans by the City Planning Commission,
and a request that the City Council schedule a public hearing on the Plans upon published
notice as required by law; and
WHEREAS, the HRA is not modifying the boundaries of the Richfield
Redevelopment Project Area; and
WHEREAS, the HRA is not modifying the boundaries of the Gramercy TIF District,
the Urban Village TIF District, the Richfield Rediscovered 1999 TIF District, the A-5 TIF
District nor the B-5 TIF District,
NOW, THEREFORE, BE IT RESOLVED by the Housing anal Redevelopment
Authority in and for the City of Richfield as follows:
1) The HRA hereby approves the modification tQ the Richfield Redevelopment Project
Area Plan.
2) The HRA is modifying the list of parcels to be acquired in the Gramercy TIF District,
the Urban Village TIF District and the Richfield Rediscovered 1999 TIF District to
include 11 additional parcels and state the City's intent to acquire additional parcels
when necessary.
3) The HRA is modifying the sources of funds to include an interfund loan to cover
project expenses in the Gramercy TIF District and a second loan to purchase certain
properties, and to include language stating the City's intention to pay back the
interfund loans with tax increment funds.
4) The HRA is modifying the Original Tax Capacity and Tax Rate, the Estimated
Captured Net Tax Capacity Value/Increment, and the Estimated Impact on Other
Taxing Jurisdictions of the Gramercy TIF District to include current values.
5) The HRA is modifying the Sources of Revenue/Bonded Indebtedness and the Uses
of Funds in the Gramercy TIF District to include an increase budget due to the
addition and identification of the construction of a mixed-use commercial/housing
component referred to as City Bella.
6) The HRA is modifying the sources of funds in the Urban Village TIF District to allow
for interfund loans to cover project expenses and to include language stating the
City's intention to pay back the interfund loans with tax increment funds.
7) The HRA is modifying the Statement of Goals and Objectives and the Legal
Description of Property for the A-5 TIF District and the B-5 TIF District to remove
parcels from the Districts and identifying them as parcels to be acquired using tax
increment from the Richfield Rediscovered 1999 TIF District.
8) The HRA hereby approves the modifications to the Tax Increment Financing Plans
for the Gramercy TIF District, Urban Village TIF District, Richfield Rediscovered TIF
District, the A-5 TIF District, and B-5 TIF District.,
9) Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Modifications, as presented to the HRA on this date, are hereby
approved, established and adopted and shall be placed on file in the Community
Development Department at the City of Richfield.
10) City staff, the HRA's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Modifications upon approval of the
Modifications by the City Council and for this purpose to negotiate, draft, prepare and
present to the HRA for its consideration all further plans, resolutions, documents and
contracts necessary for this purpose. Approval of the Plans does not constitute
approval of any project or any Development Agreement with any developer.
11) Upon approval of the Plans by the City Council, the Executive Director is authorized
to forward a copy of the Plans to the Hennepin County Auditor and the Minnesota
Department of Revenue pursuant to Minnesota Statutes 469.175, subdivision 2.
Approved by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of October, 2000.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•
AGENDA SECTION:.. public Hearing
AGENDA ITEM # 5
REPORT # ( 4
•
STAFF REPORT
HRA MEETING DATE:
OCTOBER 16, 2000.
REPORT PREPARED BY:
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE
DIRECTOR:
LYNNETTE CHAMBERS,
LEASED HOUSING SPECIALIST
NAME, TITLE
BRUCE NORDQUIST,
ca'
ITEM FOR HRA CONSIDERATION:
Conduct a public hearing and approval of the Richfield-Housing and Redevelopment
Authority's annual Public Housing Authority Plan.
~~ I. RECOMMENDED ACTION: ~~
Conduct and close the public hearing and by motion: Approve the
.Housing and Redevelopment Authority's annual Public Housing
Authority Plan for the Richfield's Section 8 Housing Assistance
Program and authorize the Chair anal Executive Director to execute
ram documents.
•
II. BACKGROUND
The Quality Housing and Work Responsibility Act of 1998 (QHWRA) created by Congress the
requirement to provide a Public Housing Agency (PHA) Plan on an annual basis. The annual
plan provides details about the Agency's immediate operations, program participants, and
programs and services, and the Agency's strategy for addressing the needs of the community
in the upcoming fiscal year. Staff has developed a plan in proper form and content.
In addition, QHWRA requires the Richfield HRA to create a "Resident Advisory Board" to make
comments on the Plan. Every Section 8 household in Richfield (there are 350) was invited to
1016phahra
HOUSING & REDEVELOPMENT MANAGER
NAME, TITLE
join the Advisory Board. Two volunteered to participate. The Advisory Board then met after
each member had an opportunity to review the Plan. The Resident Advisory Board made no
additional comments to the plan other than to ask for points of clarification.
III. BASIS OF RECOMMENDATION
A. POLICY
• The Housing and Redevelopment Authority's (HRA) Board of Commissioners
must formally adopt the PHA Plan following a public hearing. The
Department of Housing and Urban Development (HUD) requires the HRA
Chair and Executive Director to execute documents.
B. CRITICAL ISSUES
• Failure to approve the PHA Plan will result in receiving anon-compliance
status with HUD. "Non-compliance" violates the contracts the HRA has with
HUD and results in a loss of administrative and assistance funds.
C. FINANCIAL
• .Richfield HRA has four contracts for administrative and rent assistance funds
with HUD. Annually, the Richfield HRA receives $1,124,436.00 for rental
assistance payments and $160,664.00 for administrative payments. A
current PHA Plan is a requirement of these contracts.
D. LEGAL
• The Housing Assistance Program (HAP) contracts that the HRA has-with
HUD have been previously reviewed and approved by legal counsel. Proper
notice was published on August 23, 2000 in the Sun Current of the
availability to review the Plan and of the public hearing to be held concerning
plan approval. The publication schedule is in compliance with HUD
regulations.
IV. ALTERNATIVE RECOMMENDATION~S~
• Do not approve the PHA Plan at this time (the Richfield HRA would not be in
compliance with HUD).
V. ATTACHMENTS
• Proposed policy changes (Attachment A)
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
C~
Attachment A
S Summa
ry
Richfield HRA Annual Plan, Year 2001
October 16, 2000
The annual PHA plan is a 47-page document. Known as HUD Form #50075, this plan
provides astandard way for all Public Housing Authorities (PHA) and the Richfield .Housing
and Redevelopment Authority (HRA) to report in checklist form that the PHA complies with all
federal regulations.
To summarize:
^ The mission of the Richfield HRA is the same as HUD's: to promote adequate and
affordable housing, economic opportunity and a suitable living environment free from
discrimination.
^ The Richfield HRA goals are to:
- Secure more rental vouchers when available (In July 2000, Richfield applied for funding
for 20 additional vouchers, the HRA is currently awaiting the results of this application.)
- Acquire and/or build affordable housing
- Improve program administration (Richfield is already a high performer.)
- .Increase program participation by landlords.
- Promote client self sufficiency
- Ensure equal opportunity and fair housing standards are achieved.
The plan document then provides a checklist that over several pages, reports to"HUD
Richfield's:
- Housing needs;
- Financial resources;
Policies on program eligibility, selection, and admission;
- Rent determination policies;
- Operation and management policies;
- Grievance procedures; and
any other topics that have relevance to the administration of a Section 8 voucher program only.
(PHA's that own and manage public housing have additional parts of the checklist to
complete.)
The plan document ends with drug-free certification form and a three page certification form
that the Richfield HRA does and will comply with all applicable federal regulations as listed on
the certification and signed by the HRA Chair.
The annual plan in its entirety is always available to the HRA Board and the public, and the
plan is available in the Community Development Department.
•
AGENDA SECTION: Admin.- Reports
AGENDA ITEM # 4
REPORT # 63
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
OCTOBER 16, 2000
BRUCE NORDQUIST,
REPORT PREPARED BY: HOUSING & REDEVELOPMENT MANAGER
Nav~c, Ti~~r,r•
BRUCE NORDQUIST,
REPORT PRESENTER: HOUSING & REDEVELOPMENT MANAGER
Nanac, Tizce
DEPARTMENT DIRECTOR REVIEW: ~/~/i' /,. , _
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Update on City Bella.
I. RECOMMENDED ACTION:
By Motion: None, discussion purposes only.
TI. BACKGROUND
During the week of October 9 to 13, Gramercy Corporation is finalizing the revised
concept plans for City Bella, the redevelopment of the southwest quadrant of 66th
Street. The concept was originally introduced in January 2000 and the Housing and
Redevelopment Authority (HRA) authorized a development agreement in July 2000.
Feedback from staff and residents has lead to significant plan changes during this
period while also retaining the essential mixed-use housing, office, service retail,
public plaza, underground parking, and pedestrian connections.
At the October 16 HRA meeting, staff and the HRA will be receiving the most
complete updated site .plan and elevations for the first time. The plans presented to
the HRA will be the basis for all subsequent city meetings, which are scheduled
between now and the end of the year. The complete schedule is provided as an
attachment.
III. BASIS OF RECOMMENDATION
Although the plans could not be ready in advance of the HRA meeting to include
with the staff report, the developer wanted the HRA to receive them first before
further public review.
A. .POLICY
• The HRA will consider the preconditions to development and the
financial aspects of the project at their November meeting.
• The Planning Commission (October) and City Council (November and
December) meetings provide for project review and consideration.
B. CRITICAL ISSUES
• The Environmental Assessment Worksheet (EAW) has been prepared
for release on October 13. Comments and questions are anticipated.
• To ensure broad participation in the review of the plans, a public open
.house is scheduled for October 18 at Wood Lake Nature Center.
Again comments and questions are anticipated.
• Gramercy met with Lake Shore Drive Condominium owners about the
landscaping priorities along the proposed joint property line. A letter
from Gramercy is attached to summarize that contact.
C. FINANCIAL
• The analysis of the request for tax increment (TIF) assistance will be
reported to the HRA in November. The present Gramercy TIF District
plan will also have to be amended to accommodate the proposed
development.
D. LEGAL
• Legal counsel is reviewing Gramercy's responses to preconditions as
they are received by staff.
IV. ALTERNATIVE RECOMMENDATION(S~
• The HRA can choose to delay the status report. However, the information is
most timely now.
V. ATTACI-IMENTS
• City Bella schedule (Attachment A)
• Letter from Gramercy Corporation reporting status on landscaping
collaboration with Lake Shore Drive Condominium (Attachment B)
• Gramercy Corporation will provide copies of the plans on Monday, October
16 for the HRA
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Mike Conlan and Lou Stucco of Gramercy Corporation
•
•
ATTACHMENT :A
,;,;
Anticipated Schedule
For
City Bella Project
(as of October 9, 2000)
Date Item
October 16, 2000
7:00 p.m., City Hall • Project status report to HRA, no actions
being requested
HRA meeting HRA considers modifications to
Gramercy Tax Increment Financing Plan.
to accommodate City Bella
October 18, 2000
6:30 to 8:00 p.m.
Woodlake Nature Center • Open house for City Bella at Woodlake
Nature Center. Concept drawings,
developer representatives,
environmental .assessment study are
available for comments and questions
October 24, 2000
7:00 p.m., City Hall Planning Commission meeting to review
project plans and consider zoning and
Planning Commission meeting use changes. Modifications to Gramercy
Tax Increment Financing Plan also
considered.
November 13, 20000
7:00 p.m., City .Hall • City Council considers zoning changes;
first reading of rezoning
City Council meeting City Council considers modifications to
Gramercy Tax Increment Financing Plan
to accommodate City Bella
November 20, 2000
7:00 p:m., City Hall • HRA considers all project elements
including financial assistance (TIF)
HRA meeting • Public hearing on Business Subsidy
Agreement
December 11, 2000
7:00 p.m., City Hall • City Council considers if Environmental
Assessment Worksheet is adequate,
City Council meeting considers final development plan, and
plat, conditional use permit, rezoning -
second reading, right-of-way vacation,
and Business Subsidy Agreement
December 18, 2000
7:00 p.m., City Hall • Project status report to HRA
HRA Meeting
" ~ -;
.. •
•. - , .. euutiz~ .coo~~~E~~E ~om~~~~E i.~o~ dEr;~oZ~. ` : ~ - ,
" ~ October 1~ 1;; 2000• ~ ~ • .. . , ;
Mr, Bruce Nordq~~ist'.. ,
•. ~ CityoflZichfield -, ~ - ~ - : ..
6700. Portland f~~~e1
. ~ - Richfield, M1V.SK423 ~. .. ~ ~~ ; •
,.
R~ Cite J~felki • . :., ,. . ' .: ~"' :. ~ .
• , " .Dear Bruce,. ' . , , ~ ' .
" ~ .lv~onday, ~~ctober 9th. we met at. Lake Shore Drive Condominiums wi th fhe LSD
Corrunittee' and interested members ofthe I:SD Association. . , . :.. ~ "
(hir architects made`a~ full proposal-tin t~he,pioposeid•Pla?a and sharei(tlieu ideas;, . ~ •
. and contleptual d~~awings for the area:.Qne afther•ideas; namely, creating a, i ree"canopy ,
adjoining the Pla;~:~hich=would be~locat,~`on.land ownedby I;SA; was• dis~;ussed at. . • ". "
length. ~JVe,also discussed fencing along the entiie LSD/City .Bella 6oundarv • "~ ~ . "
• •. "Che LSD rteexpressed their.appreciation:far. ffie'opportunity, .o be part of- •. ..
•.
., the conce ua~' de'-i ocess and . • ' ; , ,
ln'. , gn pr again: stated;their z~iterest in haviYig:a " ate gate. ...
" •.' ~ anto.the Plaza froia tbefr giouuds. They~did have'an~intiaiconcern about`gi~ o~~lic
. access to the cane+py area that: would •be"in theii.property,~even with a fe~ace t~ zhind..it •
• ' " They felt they woullil pre#irfio keep this area as it,is.evenifGramercywere i~'illing•to pay
focat~-o>Pthe landi:;ncements... ; ~ ~ . ~ ~ -
.: tNe, also discussed:~our intention to eliminate' ericmachment;on all ear :ment lines
whenevE:r possiblr~:_ V~e-reiterated our inteirtioit to.ieviise.the' elevation":ofthe .mall ." • " - .
. " . cooperative' building and lower'the ~rciofline_ • We aro still working on the issu~: s but the ~ ~ . '
• ~ architec.~s expect ~ko-rESOXve, what.ihey.can by Friday., .
` . ~1Ne felt,thret the rneetintg was very positive; our design team gently Er }oyed ~ ' , ~ -
' ~ interacting with'tlue LSi7 residents:- We expect our ongoing.'dialogue~to contu .ue in•.this ,. = . • ' .. .
.,
spir~t•of cooperati~>i~. ,._
~Ve have,attached •'foii your:reference; two. sketches ~of the design for tI~ e:area along ~ ~"
. .
• the; propt.rty line_ .. .. ~ ...
• , ..
. •" .. .. -heel W.' Con1 tn, . " •
. •. - .... - President. .. .
N _ ` .l~evc~i1 mint°~ au~~Ei :..- '
ational ,~. ~ n ~arrcz itnsrtE
Awociationof ,' ~ •.. ,: 9 ••. ~ , . • : ~ ,. c~MUirrr. • .
. .: aYiOGwt~onn .
Hous~ny 79'~p 1oi~rriatiortil Dr;vr_, cfiuil,~ t035 ~ Bloo,ni tcirt,,14(d 55427 ~ 300-85Z•OC19,`3.61Z~t354=0467 •~ ~"°~""'°
.. 000poretivr~,' R5:., PMi '6T,Z,576-415 -auNrxeorn. '
CFW%Tri i
~:
~•.
1 '•~ ~.
~•,.~.i
R~~
~./
7
w
~+-
•
~~
~~
»r
ti
.`
i
` i.
1-
'Y
i
~i ~
};
4
2!
~u _ _ .%
,/
~~~.
~~
~ ~ E' .' ~
.~
.~
7f
....a~ ass.~.xv wde~svae'i asr~t~ 1tOt ZZZ T9A Yy3 ZO-At 3t1L
600 f,~ 'I~,L,LIAISU82I,L %V3 88T6 9L8 ZS6 Xd3 ZT ~ 9T Q3M
_~
00lOT/OT
00lTTlOT
~<;; ..
f
I ..
j
::
~l :;
I ~ _
1 -_ ,.
~-
i
~ _
~ ' ~ __
--r .. ~_;
C/~ -~
~~ _ f
~~ `~
0 .Y
V r
"J
1 ~
~~ ~
~~ ~
~ .~ ~ =:~
~ ~~~
~ ~.
~~~
~a
. _ - .; .,
COOS + a~11.;CJ.(~ Ad8~5nT[B'7 a4t1T~ ltnr x7.7 Tr+a Ova ~n nT znT nn.~T.nr
S00~ 'td,L,LIAtSIQd2I,L Xd,~ 88T6 9L9 ZS$ 7id3 CT~9T Q3M 00/TT/OT
•
AGENDA SECTION: CONSENT
AGENDA ITEM # 3B
REPORT # ( 2
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
OCTOBER 16, 2000
JOHN STARK,
REPORT PREPARED BY: COMMUNITY DEVELOPMENT MANAGER
NAME; TLTLE
BRUCE PALMBORG,
REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW: ~/~~~
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution consenting to a time extension to request eminent domain
proceedings within the Interchange West area.
I. RECOMMENDED ACTION:
By Motion: Adopt a ,resolution consenting to a time extension to
request eminent domain proceedings within the Interchange West
area.
II. BACKGROUND
On March 20, 2000, the Richfield Housing and Redevelopment Authority (HRA)
adopted, and entered into, a Contract for Private Development (Contract) with Best
Buy for the redevelopment of the Interchange West area. The Contract
contemplates the private acquisition of properties by Best Buy wherever possible.
Section 3.2 of the Contract, however, allows Best Buy to request that properties be
acquired through condemnation. The Contract specified that this request would
come within 120 days of execution of the Contract (by July 18, 2000). On July 17,
2000 the HRA approved a resolution granting a 120 day time extension for Best
1016exten
Buy's request for condemnation; this extension is set to expire on November 15,
2000.
r
Best Buy has now either entered into a negotiated purchase agreement or
requested condemnation on all known properties in the Interchange West area (the
last request is found in another agenda item for the October 16, 2000 HRA
meeting). Best Buy is, however, requesting an additional extension until January
31, 2001 to request condemnation in the area. The purpose of this request would
be to request condemnation on "sliver" or remnant lots which-may exist in the area
but have not yet been identified and on leasehold interests and to clear up potential
title issues.
III. BASIS OF RECOMMENDATION
A. POLICY
• The Contract for Private. Development stipulates, in subdivision 1 of
section 3.2, that the developer's request for condemnation must be made
within 120 days of the execution of the agreement.
• .That 120-day period was extended by an additional 120 days by the HRA
through the approval of a resolution on July 17, 2000.
• Best Buy has reached private purchase agreements or has requested
condemnation proceedings for all known properties in the area.
B. CRITICAL ISSUES
• Unidentified remnant parcels, leasehold interests and title issues may
exist which may require condemnation proceedings as a resolution:
• This extension,. if approved, is not expected to negatively impact the
overall acquisition and development schedule.
C. FINANCIAL
• There are no significant financial impacts of this action.
D. LEGAL
• Legal counsel has reviewed this request and found it to be an acceptable
request under the terms of the Contract.
IV. ALTERNATIVE RECOMMENDATION(S)
• Do not adopt the attached resolution consenting to a time extension to request
eminent domain proceedings.
• Modify the resolution to consent to a time extension of a lesser or greater period
than is being requested by Best Buy.
~ V . ATTACFIMENTS ~
• Resolution
PRINCIPAL PARTIES r;XPECTED AT MEETING ~
• A representative of Best Buy, or their developer Opus
• HRA legal counsel Corrine Thomson
•
RESOLUTION NO.
RESOLUTION CONSENTING TO TIME EXTENSION TO REQUEST
.EMINENT DOMAIN PROCEEDINGS
WHEREAS, the Housing and .Redevelopment Authority in and for the City of
Richfield, Minnesota (the "HRA") and Best Buy Co., Inc., ("Developer") did on or about
March 20, 2000 enter into an agreement entitled Contract for Private Development
("Contract")providing for the development of land within the City of Richfield subject to all
the terms and conditions contained in the Contract; and
WHEREAS, the Contract provides for the exercise by the HRA of its power of
eminent domain upon a qualifying request by the Developer; and
WHEREAS, Section 3.2. Subd. 1 of the Contract provides that such request is to be
made not later that 120 days following the execution of the Contract unless extended by
the parties; and
WHEREAS, on July 17, 2000, the HRA approved a resolution extending the date to
request eminent domain to November 1"5,-2000; and
WHEREAS, the Developer either has entered into purchase agreements with
property owners or has requested the HRA to commence eminent domain proceedings for
all of the properties included in the project; and
WHEREAS, as the project proceeds, it is possible that the Developer may become
aware of other interests (such as leaseholds or interests that cloud title) that. can only be
eliminated by eminent domain; and
WHEREAS, the Developer desires to have additional opportunity to investigate the
status of title to the property, to obtain and examine leases for properties under purchase
agreement, to identify and negotiate with persons who may have property interests in the
properties under purchase agreement; and
WHEREAS, the HRA has received a request from the Developer to further extend
the date to request eminent domain until January 31, 2001; and
.WHEREAS, the HRA has considered the request and the recommendation of its
staff.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and-for the City of Richfield, Minnesota that the time period for requesting
eminent domain is extended to January 31, 2001.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of October, 2000.
Thomas E. Harms, Chairperson
ATTEST:
Mike Sandahl, Secretary
AGENDA SECTION: CONSENT
AGENDA ITEM # 3A
REPORT # 61
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
OCTOBER 16, 2000
PAM BOOKHOUT
REPORT PREPARED BY: REHABILITATION SPECIALIST
NAME, TITLE
BRUCE PALMBORG
REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
SIGNATURE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of resolution regarding authorization to issue a Certificate of Completion to
Asche and Associates for 6915 13th Avenue, under the Richfield Rediscovered Program.
I. RECOMMENDED ACTION:
By Motion: Authorize the Chair and Executive Director to execute the
Certificate of Completion in accordance with the attached resolution.
II. BACKGROUND
The HRA authorized development of the above referenced property in November
1999 under the Richfield Rediscovered Program. Sale and construction
commenced in 2000. The development agreement provides for the issuance of a
Certificate of Completion when construction is completed. (A sample certificate is
attached.) The home has been completed and a temporary Certificate of
Occupancy has been issued by the Inspections Division. Therefore authorization
for a Certificate of Completion is requested at this time in anticipation of the
builder's request. An escrow has been withheld to cover completion of landscaping.
III. BASIS OF RECOMMENDATION
1016ComplCert 6915 13th
A. POLICY
• The HRA must authorize the issuance of Certificates of Completion.
B. CRITICAL ISSUES
• Construction has been completed and the Inspections Division has
issued a temporary Certificate of Occupancy.
• The issuance of a Certificate of Completion is required to properly
close the sale of the home.
C. FINANCIAL
• N/A
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not issue a Certificate of Completion at this time.
V. ATTACHMENTS
• HRA Resolution
• Sample Certificate of Completion
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING ISSUANCE OF A CERTIFICATE OF C
OMPLETION FOR
THE NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT
6915 13TH AVENUE UNDER THE
RICHFIELD REDISCOVERED PROGRAM
WHEREAS, the Richfield Housing and Redevelopment Authority in and for the City
of Richfield, Minnesota (HRA) entered into contract with Clinton Asche and Associates;
and
WHEREAS, the new home located at 6915 13th Avenue is completed.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, the Certificate of Completion for 6915 13th
Avenue can be issued.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of October, 2000.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that has fully and
completely complied with its obligations under Article IV of that document entitled "Contract
for Private Development", between the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota and dated ,
filed as Document No. with respect to the construction of the
approved construction plans at legally described as
and is released and forever discharged from its obligations to construct under such above-
referenced Article.
DATED:
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY RICHFIELD, MN
By
Its Chairperson.
By
Its Executive Director
STATE OF MINNESOTA )
SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
2000, by Thomas E. Harms and Samantha Orduno the Chairperson
and Executive Director of the Housing and Redevelopment Authority in and for the City of
Richfield, a public body corporate and politic under the laws of the State of Minnesota on
behalf of the public body corporate and politic.
Notary Public
This instrument was drafted by:
The Housing and Redevelopment Authority
in and for the City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
612-861-9760