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08-21-00 agendaCITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY MONDAY, AUGUST 21, 2000 RICHFIELD CITY HALL 6700 PORTLAND AVENUE COUNCIL CHAMBERS 7 P.M. AGENDA Call to order Approval of minutes of Regular HRA Meeting of July 17, 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 adjustment of payment standard for Section 8 Program S.R. No. 47 B. Consideration of approval of issuance of certificate of completion for Oaks on Pleasant at Urban Village (Woodlake Centre) S.R. No. 48 Notes: ADMINISTRATIVE REPORTS AND OTHER BUSINESS 4. City Bella site plan update Staff Report No. 49 Notes: 5. Best Buy project update and site plan review • Staff Report No. 50 Notes: RESOLUTIONS 6. Consideration of resolution authorizing entry to 7626-7644 Knox Avenue for environmental testing prior to commencement of eminent domain proceedings Staff Report No. 51 Notes: 7. Consideration of resolution authorizing acquisition of Gleason Mortuary, 7601 Pleasant Avenue • Staff Report No. 52 Notes: 8. Consideration of resolution authorizing prepayment of limited revenue tax increment note with Richfield State Agency, Inc. Staff Report No. 53 • Notes: 9. Consideration of resolution approving first amendment to Contract for Private Redevelopment with CSM Investors II for development in Lyndale Gateway area Staff Report No. 54 Notes: 10. Consideration of resolution authorizing acquisition of 7241 Second Avenue at modified purchase price under Richfield Rediscovered Program Staff Report No. 55 Notes: 11. Consideration of resolution approving proposed 2001 HRA budget and certifying 2001 tax levy; resolution authorizing revisions of 2000 budget of HRA; and setting public hearing for 2000Revised/20001 Proposed .budget and -tax'levy orr'November~20, 2000 Staff Report No. 56 Notes: ADMINISTRATIVE REPORTS AND OTHER BUSINESS 12. Discussion of cable casting of HRA meetings Notes: 13. Redevelopment Status Update Notes: 14. Executive Director report Notes: 15. 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 SECTION: AGENDA ITEM # REPORT # I ~ STAFF REPORT ,x F,.. «.. U..:. Resolutions 11 56 HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 21, 2000 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, TITLE REPORT PRESENTER: STEVEN L. DEVICH, ADMINISTRATIVE SERVICES IRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: d `~ _ ,, O .~._ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolutions approving proposed property tax levy for payable 2001 for certification to Hennepin County and set optional date for public budget hearing for the 2000 Revised/2001 Proposed budget and tax levy. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution approving the 2001 Proposed and 2000 Revised Housing and Redevelopment Authority and seta .public budget hearing for 7:00 p.m. on November 20, 2000. II. BACKGROUND III. BASIS OF RECOMMENDATION A. POLICY • The Minnesota Truth in Taxation law requires adoption of a preliminary levy from each taxing authority. • The budget and accompanying proposed levy for 2001 are ready for consideration. 0821 budget • Even though a Truth in Taxation hearing is not required by the State Statute, it would still be appropriate for the HRA to hold a public hearing on the budget and adopt a final levy sometime in November prior to the City's consideration of a final levy if the HRA desired to do so. B. CRITICAL ISSUES • As required by the Truth in Taxation legislation, each taxing authority must certify its proposed tax levy for the payable year 2001 to the County Auditor on or before September 15, 2000. - • _ In addition, certain. taxing-authorities.must.ce.rtify.to the County Auditor the dates that have been selected for a Truth in Taxation hearing and for a continuation hearing (if necessary) by September 15. • Such hearings must be scheduled between November 29 and December 20, 2000 and must not conflict with hearing dates of the county or school district in which that taxing authority is located. C. FINANCIAL • The Proposed 2001 HRA levy represents a 6.5% increase from the previous year's levy and is approximately $35,000 less than the maximum HRA levy established by law of .0144% of the City's total market value. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • The HRA could adopt a preliminary levy less than the one proposed herein. However, that would not provide for programs which are recommended in the 2000 Revised/2001 Proposed budget. • The HRA could select a different date other than November 20 (regular November meeting) to conduct a public hearing and adopt a final levy. • The HRA could simply. proceed at a future date to adopt the budget and levy without holding any public budget meeting. V. ATTACHMENTS • Resolution Approving Proposed 2001 Housing and Redevelopment Authority Budget and Certifying the 2001 Tax Levy • Resolution Authorizing Revision of the 2000 Budget of the Housing and Redevelopment Authority of Richfield VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A HRA RESOLUTION NO. RESOLUTION APPROVING PROPOSED 2001. HOUSING AND REDEVELOPMENT AUTHORITY BUDGET-AND CERTIFYING THE 2001 TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. The budget for the Housing and Redevelopment Authority General Fund of Richfield for the year 2001 in the amount of $723,820 is hereby ratified. Section 2. The estimated gross revenue of the Housing and Redevelopment Authority General Fund of Richfield from all sources, including general ad valorem-tax levies-as hereinafter set forth for the year 2001, and as the same are more fully detailed in the Executive Director's official copy of the budget for the year 2001, in the amount of $652,680 are hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 2000, payable in 2001 for the following purposes: Housing and Redevelopment Authority $208,000 Section 4. A certified copy of this resolution shall be transmitted to the County Auditor. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21 st day of August, 2000. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • HRA RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF THE 2000 BUDGET OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. 746 appropriated funds for personal services and other expenses and capital outlay for the Housing and Redevelopment Authority for the year 2000, and WHEREAS, The Acting Executive Director has requested a revision of the 2000 budget as detailed in the 2001 budget document. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota as follows: Section 1. That the 2000 appropriation for the" Housing and Redevelopment Authority General Fund be revised as follows: $171,630 Decrease Section 2. Estimated 2000 gross revenue of the Housing and Redevelopment Authority General Fund from all sources, as the same are more fully detailed in the Executive Director's official copy of the 2000 budget document, are hereby revised as follows: $128, 840 Decrease Section 3. That the Executive Director bring into effect the provisions of this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of August, 2000. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 21, 2000 Resolutions 10 55 REPORT PREPARED BY: PAM BOOKHOUT, REHABILITATION SPECIALIST NAME; TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR N.~ME TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~i~~ REVIEWED BY EXECUTIVE DIRECTOR: ~+ ITEM FOR HIZA CONSIDERATION: Consideration of resolution regarding authorization to acquire 7241 Second Avenue at a modified purchase price under the Richfield Rediscovered Program. I. RECOMMENDED ACTION: By Motion: Authorize the Chair and Executive Director to execute a Purchase Agreement and other required documents to purchase 7241 Second Avenue in accordance with the attached resolution. III. BACKGROUND ~ The owner of the property at 7241 Second Avenue agreed to sell to the HRA for $70,000 last year. In September 1999, the HRA approved the purchase. They were unwilling to sign a purchase agreement until they found a replacement home. In the search for a replacement home there were a variety of issues, which needed to be dealt with. The property owner then requested a new appraisal of their property. In August 2000, the property was reevaluated by BCL Appraisals, and its value was estimated at $90,000. The owner is willing to sell at $85,000. The property consists of a small 560 sq. ft. house with no basement, and a detached single car garage. Although the property has been well maintained, it is extremely small and has limited opportunity for remodeling. The lot's dimensions are 50 feet x 127 feet. The property is included in the Richfield Rediscovered plan. 0821 park&logan • III. BASIS OF RECOMMENDATION A. POLICY • The property meets the physical program requirements for acquisition. The,property is voluntarily for sale by the owner-occupant. Funding is available under the Richfield Rediscovered Program, and the property is certified to the tax increment district. • The purchase price of 7241 Second Avenue is recommended at $85,000. B. CRITICAL ISSUES N/A C. FINANCIAL • Funds are available from the 1999 Richfield Rediscovered bond sale for program expenditures in 2000 and 2001. D. LEGAL • N/A IV. .ALTERNATIVE RECOMMENDATION(S~ • Do not authorize purchase. V. ATTACHMENTS HRA Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • HRA RESOLUTION NO. . RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7241 SECOND AVENUE FOR THE RICHFIELD REDISCOVERED PROGRAM WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to purchase certain real property pursuant to and in furtherance of the Richfield Rediscovered Redevelopment project (Project) heretofore adopted by the City of Richfield (City). and the HRA, said real property being described as: Lot 14, Block 6, Wooddale Second Addition, whose street address is 7241 Second Avenue; and WHEREAS, the HRA-is authorized by Minnesota Statues Section 469:D12 to acquire real property within its area of operation; and WHEREAS, the property meets all program requirements for acquisition; and WHEREAS, the negotiated purchase price of 7241 Second Avenue is based on its appraised value; and WHEREAS, 1999 Richfield Rediscovered bond funds are available for program acquisition. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. 1. Resolution No. 732 is hereby rescinded. 2. The purchase price of 7241 Second Avenue is .approved at $85,000. 3. The Chairperson and Executive Director are authorized to execute a Purchase Agreement or other documents to allow purchase for the amount set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21 st day of August, 2000. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • • AGENDA SECTION AGENDA ITEM # REPORT # STAFF REPORT Resolutions 54 NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR Na,~, TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~~ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a Resolution Approving the First Amendment to the Contract for Private Redevelopment with CSM Investors II for a portion of the Lyndale Gateway Development. I. RECOMMENDED ACTION: By Motion: Adopt the resolution approving the First Amendment to the Contract for Private Redevelopment with CSM Investors II for their development in the Lyndale Gateway area. II. BACKGROUND The Richfield Housing and Redevelopment Authority (HRA) approved a Contract for Private Redevelopment (Contract) with CSM Investors II, Inc. (CSM) on January 18, 2000. Section 3.1 of the Contract specified certain "Closing Contingencies" which CSM was to have completed by September 1, 2000. The Closing Contingencies include: completion of a landscape plan; a tree protection plan; the commitment of construction financing; the execution of purchase agreements with all property owners; and an agreement with Minnstar Builders establishing performance security for a separate phase of the development. 0821Lynd Section 6.1 of the Contract discusses the construction of public improvements. Many of the public improvements are to be completed by the City and/or the HRA. The most notable City/HRA improvement is the reconstruction of Lyndale Avenue between 76th and 77th Streets. The Contract specifies that all public improvements are to be complete by November 1, 2000. The reconstruction of this portion of Lyndale Avenue cannot be completed in accordance with the timeframe set forth in the Contract. It is estimated that the reconstruction of Lyndale will begin as soon as the weather allows in 2001 (estimated as May 1) and will take approximately six months to fully construct. The First Amendment is necessary;'therefore, to`keep'the` HRA in compliance with the terms of-the Contract asthey relate#o the construction of public. improvements. The developer has claimed, and staff has agreed, that the. Lyndale reconstruction is necessary before the site can be occupied. Therefore, CSM would not intend on completion of their construction until the completion of the roadway construction is finished near November 2001. CSM has stated that the construction period for their development will take no more than nine months; which would result in the commencement of their construction in February or March of 2001. The change in CSM's construction dates, which are necessitated by the change in the completion date for public improvements, will then affect the -dates by which CSM can meet the Closing Contingencies set forth in Section 3.1 of the Contract. The First Amendment to the Contract indicates the following revised dates for CSM's performance: satisfaction of Closing Contingencies by February 1, 2001; Commencement of Construction by May 1, 2001; and Completion of Construction by December 31, 2001. III. BASIS OF RECOMMENDATION A. POLICY • The Contract for Private Redevelopment specifies that public improvements, including the City/HRA reconstruction of Lyndale Avenue, are to be complete by November 15, 2000. • City Public Works staff have indicated that the reconstruction of Lyndale Avenue cannot be commenced until approximately May 1, 2001. CSM's development cannot be occupied until the completion of the reconstruction of Lyndale Avenue. The change in the date by which CSM's tenants could occupy the development affects the dates for CSM's completion of the Closing Contingencies and commencement and completion of construction as specified in the Contract. B. CRITICAL ISSUES ._ • CSM,. and the developers of the other two phases of the Lyndale Gateway development are aware of the change in the date for the Lyndale Avenue reconstruction. C. FINANCIAL • N/A D. LEGAL • Legal Counsel drafted the resolution and First.Amendment to the Contract. . _ IV. ALTERNATIVE RECOMMENDATION~S~ • Adopt the First Amendment to the Contract with modified, performance dates. • Do not adopt the First Amendment to the Contract; this action would excuse the developer from the obligation to complete the development. V. ATTACHMENTS • A Resolution approving the First Amendment to the Contract for Private Redevelopment with CSM Investors II, Inc. (distributed at meeting) • The proposed First Amendment to the Contract for Private Redevelopment with CSM Investors II, Inc. (distributed at meeting) VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A HRA RESOLUTION NO. RESOLUTION APPROVING FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT (CSM /Gateway) WHEREAS, the HRA and CSM Investors II, Inc. (the "Redeveloper") did on or about April 10, 2000 enter into an agreement entitled, Contract for Private Redevelopment, (the "Contract"), calling for the redevelopment of an area of land (the "Property") lying within the City of Richfield; and WHEREAS, a number of the timelines for performance by the Redeveloper contained in the Contract were based upon the anticipated schedule for work on the roadways abutting and serving the Property; and WHEREAS, it has become necessary to delay the commencement and completion of the .roadway work for periods of time that will not permit the Redeveloper to comply with certain of the timelines contained in the Contract; and WHEREAS, the Redeveloper is willing to accept the deferral of the schedule for the roadway work, but has requested that certain of the timelines contained in the Contract be adjusted to reflect the new schedule for the roadway work; and • WHEREAS, the HRA has been presented a proposed First Amendment to the Contract designed to .accomplish those objectives, and has received the recommendation of its staff that the First Amendment be approved. NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota that the First Amendment to the Contract is hereby approved in all respects, and the Chair and Executive Director are hereby authorized to execute and deliver said First Amendment to the Redeveloper. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this day of August, 2000. Thomas E Harms, Chair. ATTEST: Michael Sandahl, Secretary • FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made and entered into as of the day of August., 2000,. by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic (the "HRA"), and CSM INVESTORS II, INC., a Minnesota corporation (the "Redeveloper"). WITNESSETH: WHEREAS, the parties hereto did on or about April 10, 2000 enter into an agreement entitled, Contract for Private Redevelopment, (the "Contract"), calling for the redevelopment of an area of land (the "Property") lying within the City of Richfield; and WHEREAS, a number of the timelines for performance by the Redeveloper- contained in the Contract were based upon the anticipated schedule for work on the roadways abutting and serving the Property; and WHEREAS, it has become necessary to delay the commencement and completion of the roadway work for periods of time that will not permit the Redeveloper to comply with certain of the timelines contained in the Contract; and WHEREAS, the Redeveloper is willing to accept the deferral of the schedule for the roadway work, but has requested that certain of the timelines contained in the Contract be adjusted to reflect the new schedule for the roadway work. NOW, THEREFORE, based upon the mutual covenants and undertakings hereinafter, and in the Contract provided, the parties hereto stipulate and agree as follows: 1. The Contract is hereby amended in the following respects: (New material underlined and deleted material stricken through) Section 3.1 is hereby ,amended to read as follows: Section 3.1. Closing Contingencies. The Redeveloper shall not be obligated to proceed to Closing unless, on or before ,February 1, 2001, the HRA and the Redeveloper certify to each other in writing that the following "Closing Contingencies" have been satisfied or waived: (a) A landscape plan in connection with the Minimum Improvements and the timing of installation thereof shall be agreed upon by the Parties; (b) A construction period tree protection plan shall be agreed upon by the Parties, it being agreed that the Redeveloper shall be responsible for the cost of developing and implementing such plan. (c) An agreement between the Redeveloper and Minnstar consented to by the HRA, shall be entered into establishing security for Minnstar's performance under the Minnstar Development Agreement and remedies available to Redeveloper upon an Event of Default on the part of Minnstar and failure to cure within the period allotted in the Minnstar Development Agreement, including without limitation, the right to take title to the Minnstar Property and complete the Minimum Improvements in accordance with this Agreement and the Minnstar Development Agreement. (d) The Redeveloper shall have secured (i) Construction Financing in an amount sufficient to pay the costs of constructing the Minimum Improvements and upon the terms reasonably acceptable to the Redeveloper, and (ii) all permits and approvals necessary for construction of the Minimum Improvements. (e) Except as is qualified by any agreement of the parties pursuant to section 3.2, the Redeveloper has obtained valid and bindirig purchase agreements for all of the Redevelopment Property at a cost of $3,450,000, or less. (f) The Redeveloper has entered into valid and binding leases for at least. 66% of the net rentable area of the Minimum Improvements. If the HRA and the Redeveloper have not delivered such written certification to each other on or before ,February 1, 2001, the Redeveloper shall not be obligated to proceed to Closing, and this agreement shall terminate. If such certification is delivered on or before ,February 1, 2001, the Redeveloper shall be obligated to schedule the Closing by no later than , February 15, 2001, and notwithstanding any contrary terms herein or Event of Default hereunder, the HRA shall be irrevocably obligated to deliver the Public Assistance at Closing in accordance with Sections 3.3 and 3.4 below. The Redeveloper shall be required to provide the HRA at least ten (10) days advance written notice of any closing Date finally determined pursuant to this Section 3.1. The HRA and the Redeveloper agree not to unreasonably withhold or delay their certification of the Closing Contingencies as provided in this Section 3.1. 2. Section 4.2 is hereby amended to read as follows: Section 4.2. Assessment Agreement. Within ten (10) days after Commencement of Construction pursuant to Section 4.1 above, the Redeveloper shall execute and deliver to the HRA an Assessment Agreement in the form attached hereto as Exhibit D, which Assessment Agreement shall establish a minimum Assessed Market Value as of January 2, 2002 for each Building to be constructed as a part of the Minimum Improvements. The Redeveloper understands and agrees that the minimum Assessed Market Values established in the Assessment Agreement shall be binding upon the Redevelopment Property and/or each subdivided portion thereof, notwithstanding any failure by the Redeveloper to complete the Minimum Improvements by such date. The Assessment Agreement shall terminate on the date that the HRA is no longer entitled to receive tax increment generated as a result of the Minimum Improvements, and shall thereafter not be binding with respect to the Redevelopment Property and/or each subdivided portion thereof. 3. Section 5.5 is hereby amended to read as follows: Section 5.5. Commencement and Completion of Construction. Subject to the terms -and conditions of this Agreement, the Redeveloper shall commence construction of the Minimum Improvements in accordance with Section 4.1 above and shall complete construction thereof on or before December 31, 2001. The Redeveloper shall not be considered in breach of, or default in its obligations with respect to the commencement and completion of construction of the Minimum Improvements, if the occurrence of an Unavoidable Delays requires extension of the. time or times for performance of the Redeveloper with respect to construction of the Minimum Improvements provided, that the Redeveloper shall, within fifteen (15) days after the beginning of any such Unavoidable Delay, have notified the HRA thereof in writing, and of the cause or causes thereof, and further provided that the excused delay in performance may not exceed the duration of the Unavoidable Delay. 4. Section 6.4 is hereby amended to read as follows: Section 6.4. Completion of Construction. Subject to Unavoidable Delays, and unless as further agreed by the parties, the HRA shall substantially complete all of the Public Improvements on or before November 15, x.2001. The HRA shall be liable to the Redeveloper for any damages that it suffers as a result of the failure of the HRA to so complete. II. In all other respects, the Contract remains in full force and effect and enforceable according to its terms. IN WITNESS WHEREOF, the parties have set their hands as of the day and year first above written. HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF RICHFIELD, MINNESOTA By: Its Chairperson Its Executive Director By: STATE OF MINNESOTA } ss.: COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of by and ,the Chairperson and Executive Director, respectively, of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota,. a public body corporate and politic, on behalf of such public body. Notary Public CSM INVESTORS II, INC. By~- Its STATE OF MINNESOTA } COUNTY OF HENNEPIN ss.: The foregoing instrument was acknowledged before me this 1999, by ,the Investors II, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public day of of CSM • • AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING . _ AUGUST.2.1, 2.000 • • Resolutions 8 53 REPORT PREPARED BY: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~~~_ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Authorizing the prepayment of a limited revenue tax increment note with Richfield State Agency, Inc. for the medical clinic project. I. RECOMMENDED ACTION: By Motion: Approve a resolution authorizing prepayment of a limited revenue tax increment note with Richfield State Agency, Inc. II. BACKGROUND The. Housing and Redevelopment Authority (HRA) authorized providing economic assistance to Richfield State Agency, Inc. (RSA) for development of the medical clinic project and adjacent parking at 66th Street and Grand Avenue. RSA has completed its obligations according to the December 1.993 Contract for Private Redevelopment with the HRA. Legal counsel and Ehlers, the HRA's financial consultant, have proposed prepaying the remaining HRA obligations due to RSA in 2000 and 2001 totaling $66,706. As a result, project monitoring 0821 RSA and financial management of the .RBA's Urban Village Tax Increment District as it proceeds and Medical Clinic District as it is closed out will be distinctly separate. III. BASIS OF RECOMMENDATION A. POLICY • RSA has fully completed its obligation. • Ehlers, the HRA's financial consultant, has confirmed there are sufficient funds available to prepay the note from the Lyndale-Hub- Nicollet (LHN). Further, the prepayment does not harm the other obligations of the LHN or the timing of.the end of the LHN district. • Legal counsel has confirmed that this `is `a lawful :use bf-LHN tax increment. B. CRITICAL ISSUES • The HRA is obligated to satisfy„the.-.note. • RSA concurs in the proposed prepayment. C. FINANCIAL • There is no significant economic impact to the City or HRA in prepaying the note and it completes the HRA's obligation to RBA's Medical Clinic note in anticipation of beginning payments to RBA's Urban Village note. • The opinion of the financial consultant is attached. D. LEGAL • The opinion of legal counsel is attached. • The resolution has been drafted by legal counsel. E. TIMING • Prepayment to RSA will coincide with completing modification to the existing tax increment district, the establishment of separate tax parcels between the medical clinic and Urban Village, and a subdivision waiver, which is being requested. IV. ALTERNATIVE RECOMMENDATION(S~ • Delay consideration of the final note payment or choose not to prepay. V. ATTACHMENTS • Resolution • Certificate of Completion • Attachment A, letter from legal counsel • Attachment B, letter from Ehlers VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • HRA RESOLUTION NO. RESOLUTION AUTHORIZING. PREPAYMENT. OF LIMITED REVENUE TAX INCREMENT NOTE (RICHFIELD STATE AGENCY, INC.) WHEREAS, The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA"), and Richfield State Agency, Inc. ("RSA") did on or about December 20, 1993 entered into an agreement entitled: Contract for Private Redevelopment (the "Contract"), calling for the redevelopment of-certain property (the "Property")lying-within the area of operation of the HRA all subject#o the terms and conditions contained in the Contract; and WHEREAS, the Contract provided for the furnishing of economic assistance by the HRA to RSA in order to make the development contemplated in the Contract economically feasible; and WHEREAS, such economic assistance was to be paid to RSA solely out of tax increment, and in accordance with the terms of a limited revenue tax increment note ("Note"), which Note was executed and delivered to RSA; and WHEREAS, .RSA has fully completed its obligations under the Contract with respect to construction of the improvements described in the Contract; and WHEREAS, two payments of $33,353 each remain due and payable under the Note; and WHEREAS, staff has recommended that the balance due on the Note be prepaid as soon as possible once the Property has been divided into a separate parcel of record; and WHEREAS, the HRA has received the opinion from its financial consultant that there is adequate tax increment in the LHN District that is not otherwise committed or allocated elsewhere available to prepay the Note; and WHEREAS, the HRA has received the opinion from its legal consultant that the use of such funds to prepay the, Note is authorized by law. NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. Prepayment of the remaining principal balance of the Note ($66,706) is hereby authorized to be made as soon as possible after the Property has been divided into a separate parcel of record. 2. The Executive Director and Chair are authorized to take all actions and do all things necessary to carry out the intent of this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of August, 2000. Thomas E. Harms, Chair. ATTEST: Michael Sandahl, Secretary r CERTIFICATE OF COMPLETION The undersigned hereby certifies that RICHFIELD STATE AGENCY, INC., a Minnesota corporation, has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Redevelopment," .dated November 16, 1998, between THE HOUSING AND REDEVELOPMENT IN AND FOR THE CITY OF RICHFIELD and RICHFIELD .STATE.: AGENCY, INC...,,,.. a Minnesota corporation, .with respect to .construction of the Minimum ..Improvements located on the tract of land described as: Lot 1, Block 3, Richfield Urban Village in accordance with the requirements of such document and is released and forever discharged from its obligations to construct the Minimum Improvements under such above-referenced Article on the above-referenced tract. DATED: August 3, 2000- HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF .RICHFIELD By By Its Chairperson Its Acting Executive Director STATE OF MINNESOTA ss.. COUNTY OF The foregoing instrument was acknowledged before me this day of 2000, by the Chairperson and by ,the Acting Executive Director of the Housing- and Redevelopment: Authority.: in:.and-:for the-:City of Richfield, Minnesota,- a public body corporate and politic under Minnesota law, on behalf of such public body. Notary Public • This document drafted by: Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 (JBD) • ATTACHMENT A ~~~ ~ ~~L~ I>• C H A R T E R E D 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http://vvwv/.kennedy-graven. com JOHN B. DEAN Attorney at Law Direct Dial (6] 2) 337-9207 Email: jdean@kennedy-graven.com August 16, 2000 Samantha Orduno Executive Director Richfield Housing and Redevelopment Authority 6700 Portland Avenue South Richfield, MN. 55423 Re: Prepayment of Limited Revenue Tax Increment Note-Richfield State Agency. Dear Ms Orduno: I have been informed that the HRA is considering the prepayment of the- remaining balance due on the Limited Revenue Tax Increment Note issued to the Richfield State Agency in connection. with its development of the medical clinic facility on its property in Richfield. The remaining principal balance on the note is $66,706. Tax Increment from the LHN Tax Increment District would be used to make the payment. I have reviewed the proposed transaction, and it is my opinion that the HRA has the authority to prepay the note using tax increment from the LHN district. Please advise if you have further questions. Respectfu ours, Jo B. Dean :gak JBD-184729v1 RC125-182 E~L~RS QRA~~I~N! & AS50CIATES INC Tp: Bruce Nordquist -City of Richfield John Dean -Kennedy and Graven F)[tOM: Sid Ynman -Ehlers & Associates DATE: August 16, 2004 RE; Prepayment of Medical Clinic Limited Revenue Note Asper your ireq~iest, i have reviewed the LHN tax increment district to determine if it has sufficient funds to make a pre-payment of the pay as you go payment to the Richfield State Agency. Please be advised that tiye L~ tax increment district has sufficient funds for the pre-payment. Alease contact the with any questions you may have. • horn the desk of. sid roman FYnanciel i1Clvlsor Ehlers m associates. JnG. Soso Centre Pont ,privC Roseville, MN S5 J /3 Phone: (651) 697-fS5o7 F~xr /6S J) 8978555 N:tMinnsoiaUtithf cldWrbanYitlAKeU~Sw•MEMO.wpd • AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 21, 2000. Resolutions 7 52 REPORT PREPARED BY: NAME, TITLE • REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW REVIEWED BY EXECUTIVE DIRECTOR: .BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE L.~1 SIGNATURE ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the acquisition of Gleason Mortuary, 7601 Pleasant Avenue. I. RECOMMENDED ACTION: By Motion: Approve a resolution authorizing the acquisition of Gleason Mortuary, 7601 Pleasant Avenue. II. BACKGROUND ~ Whenever the future of the Clty garage area at 77th Street has been discussed for redevelopment, the area immediately adjacent and north of the garage has been included in those discussions. Accordingly, in April 1999, the Housing and Redevelopment Authority (HRA) authorized the acquisition of the single family home at 7608 Pillsbury Avenue when the owner expressed interest in selling. This summer, after occasional contact with staff over athree-year period, Tim Gleason, owner of Gleason Mortuary has concluded he wants to sell to the HRA. BCL Appraisal, Inc. performed an appraisal and determined a market value of $630,000. Mr. Gleason has accepted this amount as the sale price subject to HRA concurrence. The mortuary business has been removed from the premises. No relocation claims are anticipated. However, there are four apartments on the 0821 Gleason premises. Under the relocation regulations the HRA would be responsible for .relocating these tenants and compensating Mr. Gleason should he decide to • reestablish his rental business. The property is approximately 34,200 sq. ft. (152 x 225) with a 9,843 sq. ft. building. III. BASIS OF RECOMMENDATION A. POLICY • The owner of Gleason Mortuary, 7601 Pleasant Avenue, desires to sell. • Redevelopment of this area is desirable in the future. B. CRITICAL ISSUES • Three years. of discussion about the potential acquisition have often been hampered by a request for a purchase price in excess of the appraised value and a variety of competing potential buyer/users. • The HRA-has the opportunity to acquire at the appraised value and with no competing buyers. C. FINANCIAL • The bonds of 1996 have been designated as the funding source. D. LEGAL • The form of purchase agreement was prepared by legal counsel and patterned after the commercial property acquisitions presently underway at 66th Street and- Cedar Avenue. • The Planning Commission found the acquisition to be consistent with the Comprehensive Plan in 1999. E. TIMING • A closing for the end of September is proposed. • Relocation would not occur until the end of the year. • Staff will work with a property management company to find a suitable interim tenant. ~ IV. ALTERNATIVE RECOMMENDATION(S) ~ • uelay acquisition autnonzation. • Choose not to acquire the property. V . ATTACHMENTS ~ • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING ~ N/A • HRA RESOLUTION NO. RESOLUTION AUTHORIZING. PURCHASE OF REAL PROPERTY LOCATED AT 7601 PLEASANT AVENUE FOR REDEVELOPMENT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to purchase certain real property pursuant to and in furtherance of the Richfield Redevelopment Project Area heretofore adopted by the City of Richfield (City) and. the HRA said real property being described as follows: 760.1 Pleasant Avenue: "Lot 1, 2; 3, Block `4 Soens Addition except the East 121.99, Hennepin County WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; sand WHEREAS, the property meets requirements for acquisition; and WHEREAS, the purchase price is based on an appraisal; and WHEREAS, funds are available for acquisition from .the Bonds of 1996. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, 1. The purchase price of 7601 Pleasant Avenue is approved at $630,000. 2. Relocation benefits be made available according to state Statute. 3. That the Chairperson and Executive Director are authorized to execute a purchase agreement and other documents to effectuate purchase for the amount set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of August, 2000. Thomas E. Harms,. Chair ATTEST: Michael Sandahl, Secretary AGENDA SECTION: AGENDA ITEM # REPORT # Resolutions 6 51 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 21, .2000 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: JOHN STARK, COMMUNITY DEVELOPMENT MANAGER Nance, TITLE ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing entry to 7626-7644 Knox Avenue South for environmental testing prior to commencement of eminent domain proceedings. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution authorizing entry to 7626-7644 Knox Avenue South for environmental testing prior to commencement of eminent domain proceedings. III. BACKGROUND The property located at 7626-7644 Knox Avenue South is located within the Interchange West Redevelopment Area. The owners of the property, Leaseback Property Limited Partnership, have not yet reached a purchase agreement with Best Buy for the sale of the property. In the event that the two parties are unable to reach a negotiated purchase agreement, it is anticipated that Best Buy will request that the Richfield Housing and Redevelopment Authority (HRA) acquire the property 0821envi BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE through eminent domain. If this property is to be acquired through eminent domain, appraisals of the property will be required. An environmental assessment is a necessary component of determination of value. in an appraisal In the event that Best Buy reaches a purchase agreement with the property owner, thus mitigating the need for acquisition through eminent domain, the environmental assessment process would be halted. III. BASIS OF RECOMMENDATION. A. POLICY • On March 20, 2000 the Richfield HRA entered into a Contract for Private Redevelopment with the Best Buy Co., Inc. for the redevelopment of the. Interchange West area. • The Contract includes stipulations which allow Best`Buy to request HRA acquisition of properties through eminent domain in the event that private purchase agreements cannot be reached. • Best Buy has not yet reached a purchase agreement with Leaseback Properties for the purchase of 7626-7644 Knox Avenue and may request HRA acquisition of this property within the next 90 days. • If the HRA is to acquire the property through eminent domain, an environmental assessment of the property will be necessary. • B. CRITICAL ISSUES • The environmental assessment process should begin quickly to ensure that acquisition activities continue as scheduled. • The current owners have indicated that in the past a metal finishing business operated from the site. • The current owner has refused to grant access to the site for purposes of soil borings. • -The HRA could incur liability if it does not attempt to gain access to the site for environmental evaluation. C. FINANCIAL • Best Buy is obligated, through the terms of the Contract, to pay for costs directly related to acquisition through eminent domain. D. LEGAL • Legal Counsel drafted the attached resolution. TERNATIVE Do not adopt the resolution authorizing access for environmental assessment. I V . ATTACHMENTS I Resolution authorizing entry for environmental testing prior to commencement of eminent domain proceedings. Legal description. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A ~' HRA RESOLUTION NO. AUTHORIZING ENTRY FOR ENVIRONMENTAL TESTING PRIOR TO COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS 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 City of Richfield has adopted a redevelopment plan for the Richfield Redevelopment Project Area which _includes a. project area known as ,the Interchange West project area; and WHEREAS, the HRA has entered into a contract for private redevelopment of land lying within the Interchange West project area, which requires that either the developer of the HRA acquire certain lands for redevelopment; and WHEREAS, the real estate located at 7626-7644 Knox Avenue South and which is legally described on the attached Exhibit A ("Subject Property") is one of the parcels of real estate that must be acquired for the redevelopment project contemplated by the contract for private redevelopment; and WHEREAS, Minnesota Statutes, Section 117.041, subdivision 2 authorizes the • HRA to enter onto property for purposes of conducting certain environmental investigation prior to the commencement of eminent domain proceedings, if (a) the HRA has reason to believe that acquisition of the property may be required pursuant to eminent domain proceedings, (b) the HRA has reason to believe that a hazardous substance, pollutant or contaminant is present on the property or that a release of a hazardous substance, pollutant or contaminant may have occurred or is likely to occur; and (c) entry on the property for environmental testing is rationally related to health, safety, or welfare concerns of the HRA in connection with eminent domain proceedings;-and WHEREAS, the HRA's developer has been unable to reach a negotiated agreement for the purchase of the Subject Property, and it appears that the HRA may need to acquire the Subject Property by eminent domain proceedings; and WHEREAS, a portion of the Subject Property previously was occupied by a chrome-plating business; and WHEREAS, the owner of the Subject Property has verified that the Subject Property was contaminated with chromium, which is a hazardous substance; and WHEREAS, metal finishing businesses are commonly associated with the presence of other hazardous substances, including trichloroethene (TCE), mercury, barium, silver, cadmium, lead, nickel, arsenic and selenium; and . WHEREAS, HRA staff has requested that the owner of the Subject Property permit the HRA and its consultants to enter the Subject Property for the purpose of performing soil borings and .related sampling and testing to attempt to determine whether any contamination continues to exist and the extent. of any such contamination; and WHEREAS, as of the date of this resolution the owner of the Subject Property has not granted permission to the HRA and its consultants to undertake such activities upon • the Subject Property; .and WHEREAS, the HRA may incur liability under state or federal law for conditions of contamination present on the Subject Property if the HRA does not attempt in a reasonably prudent manner to investigate the environmental condition of the Subject Property; and WHEREAS, the HRA desires to be as well informed as possible concerning the extent of any possible contamination present on the Subject Property prior to negotiations concerning the possible purchase price for the Subject :Property and prior to commencement of eminent domain proceedings. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, as follows: 1. The HRA Commission hereby finds that acquisition of the Subject Property in eminent domain proceedings may be required. 2. The HRA Commission finds that the Subject Property was the site of chromium contamination, according to the property owner, and the HRA further has reason to believe that one or more additional hazardous substances be present on the Subject Property, based upon the past usage of the Subject Property. • 3. The HRA Commission finds that entry upon the Subject Property for environmental testing is rationally related to health, safety, or welfare concerns of the HRA in connection with possible eminent domain proceedings. 4. The HRA ratifies the actions of the HRA staff in serving notice upon the owner of the Subject Property requesting permission to enter, as required by law. If the property owner refuses to consent to the entry within the time provided in the notice, the HRA attorney is authorized to apply for a court order authorizing the entry and the removal of any sample or portion from the Subject Property as provided by law. 5. The HRA staff, consultants and attorney are directed to require that any HRA employees or consultants who enter the Subject Property do no unnecessary damage to the Subject Property and comply with applicable requirements of Minnesota Statutes, Section 117.041, subdivision 2. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of August, 2000. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary EXHIBIT A • Legal Description of Subject Property 'The North 124.00 feet of the South 302.00 feet of Tract A, Registered Land Survey No. 618, County of Hennepin And The South 178.00 feet of Tract A, Registered Land Survey No. 618, County of Hennepin. • • AGENDA SECTION: AGENDA ITEM # REPORT # D Admin. Reports 50 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 21, 2000 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: BRUCE PALMBORG; COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME; TITLE ITEM FOR HRA CONSIDERATION: .Best Buy project update and. site plan review. I. RECOMMENDED ACTION: None. Discussion only. III. BACKGROUND In March 2000, the Housing and Redevelopment Authority (HRA) entered into a Contract for Private Development for the Interchange West area. It is appropriate for the HRA to receive an update on the Best Buy project and site plan. -Tim Murnane, Vice President of Real Estate Development for Opus and the overall project manager, will present an update with assistance from others. They will report on the status of acquisition of the site and review the site plan, which has progressed significantly the last several months. C III. BASIS OF RECOMMENDATION A. POLICY 0821 BestBuyupdate • It is appropriate for the HRA to be informed of the project status and view the site plan. • The Planning Commission reviewed the site plan and related matters at a study session on August 8, 2000. . • The draft of the Draft EIS will be available to the public Monday, August 21, 2000. B. CRITICAL ISSUES • Critical issues at this time are the site planning, Penn Avenue Bridge and property acquisition. C. FINANCIAL • N/A D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • N/A V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Tim Murnane, Opus Northwest, L.L.C. AGENDA SECTION: Admin . Report s AGENDA ITEM # 4 REPORT # 49 J STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 21, 2000 REPORT PREPARED BY: REPORT PRESENTER: BRUCE NORDQUIST, I-IOUSING AND REDEVELOPMENT MANAGER NAME, TITLE BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE • DEPARTMENT DIRECTOR REVIEW: `~ REVIEWED BY EXECUTIVE DIRECTOR: Y~ ITEM FOR HRA CONSIDERATION: City Bella site plan update. I. RECOMMENDED ACTION: None. Discussion only. III. BACKGROUND On July 17, 2000 the Housing and Redevelopment Authority (HRA) entered into a development agreement with Gramercy Corporation to proceed with the City Bella proposal at the southwest quadrant of Lyndale Avenue and 66th Street. Since then, Gramercy has been working on the site plan further and has made the following modifications: 1. Two plaza areas have been created; one a more passive garden-like area and the other a more active area that is hard surfaced with fountains. 2. The office building along Lyndale Avenue has been reoriented to provide for improved traffic access at 67th Streef. 3. The ramp and site access at 67th Street now coordinates with the traffic signals at this intersection. 0821 CityBella 4. The 17-story apartment/retailing building at the corner of 66th Street and Lyndale Avenue has been increased to a 21-story building based on favorable marketing reports to the developer. Gramercy wanted to update the HRA so as to stay current with the redesign. III. BASIS OF RECOMMENDATION A. POLICY • Plan changes have been ongoing in response to adjacent residents and site constraints: It is important to stay current with the latest concept. • The Planning Commission received the modified plan at their study session on August 8. B. CRITICAL ISSUES • Gramercy is being responsive to requests by Lake Shore Drive condominium owners and City staff. C. FINANCIAL • N/A D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • N/A V. ATTACHMENTS • Revised site plan for City Bella. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Mike Conlan and Lou Stocco of Gramercy, Inc. ti y ~C bC O f ~,.~+ 1 b r a ~~ r~-S ~~99 ~ ~-- C] J STAFF REPORT Consent 3B 48 AGENDA SECTION: AGENDA ITEM # REPORT # HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 21, 2000 • REPORT PREPARED BY: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~/~~ ~ , REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Issuance of a Certificate of Completion for Oaks on Pleasant at Urban Village (Woodlake Centre). I. RECOMMENDED ACTION: By Motion: Authorize the issuance of a Certificate of Completion for Lot 1, Block 3, Richfield Urban Village (aka The Oaks on Pleasant). III. BACKGROUND Richfield State Agency (RSA) the developer of Woodlake Centre has completed and leased up the project element known as "Oaks on Pleasant". The Oaks on Pleasant consists of 138 rental townhomes and apartment flats that replaced 14 single family homes. The November 16, 1998 Contract for Private Redevelopment between RSA and the Housing and Redevelopment Authority (HRA) requires a completion certificate in a recordable form once construction is completed. In this instance, the certificate is also needed by RSA's lender to close on the financing for the project. Inspections and the Community Development staff have issued the Certificate of Occupancy with a short list of miscellaneous items that require attention related to 0821 Oaks landscaping and finishes. (Staff work orders attached.) There are no life-safety issues that need to be addressed and the building is essentially complete. III. BASIS OF RECOMMENDATION A. POLICY • The HRA has a Contract for Private Redevelopment that requires a response and action by the HRA when requested by the developer. • The HRA cannot unreasonably withhold a Certificate of Completion. B. CRITICAL ISSUES • It would not be .appropriate to issue a Certificate of Completion prior to completion of work. • The project is essentiallydone with minor items related to landscaping and finishing underway and agreed to by the developer. C. FINANCIAL • The Contract for Private Redevelopment requires the HRA to respond to requests of the developer and lender in support of arranging project financing. This request has been made by the developer. D. LEGAL • The Certificate of Completion has been drafted in proper form by the HRA's legal counsel IV. ALTERNATIVE RECOMMENDATION(S~ • Delay approval of the Certificate of Completion. However, staff believes the remaining items are being promptly dealt with, are of a relatively minor nature, and the HRA still has the Completion of Certificate for the entire project to consider in the future and could review issues if they were not resolved. V. ATTACHMENTS • Certificate of Completion • Attachment A, staff work orders VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • CERTIFICATE OF COMPLETION The undersigned hereby certifies that RICHFIELD STATE AGENCY, INC., a Minnesota corporation, has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Redevelopment," dated November 16, 1998, between THE HOUSING AND REDEVELOPMENT IN AND FOR' THE CITY OF RICHFIELD and . RICHFIELD STATE AGENCY.,INC., a Minnesota corporation, with respect to construction of the Minimum Improvements located on the tract of land described as: Lot 1, Block 3; Richfield Urban Village in accordance with the requirements of such document and is released and forever discharged from its obligations to construct the Minimum Improvements under such above- referenced Article on the above-referenced tract. s DATED: August 3, 2000 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chairperson By Its Acting Executive Director JBD-184106v1 RC125-182 STATE OF MINNESOTA ss.. COUNTY OF The foregoing instrument was acknowledged before me this day of 2000, by ,the Chairperson and by ,the Acting Executive Director of the Housing and Redevelopment..Authority in and forahe_City of Richfield,.:Minnesota, a_public..:body_corporate and politic under Minnesota law, on behalf of such public body.. Notary Public • This document drafted by: Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 (JBD) Attachment A Oaks on Pleasant Work Orders Inspections 8/1/00 Items to be completed: • Submit test from an approved testing agency on C.O. monitoring in the underground parking. • No occupancy permits will be granted for the assisted care building until all site work--including but not limited to lighting, sidewalks, permanent guardrails and handrails, stairways and landscaping--is completed at the Oaks on Pleasant. Community Development 7/31/00 Items to be completed: • Complete landscaping around retaining walls. • Repair landscaping where erosion has occurred. • Complete installation of site and building lighting. The temporary wall lighting has impacted the residences located to the south of the development. Permanent lighting should be designed and installed so as not to negatively impact these residences. It is expected that any planting material that does not survive for one year will be replaced. It is also anticipated that a professional lawn service will maintain the landscaping. Comments: • The retaining wall around the walnut tree doesn't appear to be complete. Is this complete? (see picture) • The City continues to encourage you to provide access from the neighborhood to the development on Pleasant Avenue. People are likely to cut through this area and a dirt path will soon appear and/or plantings may be damaged. • PVC pipes providing drainage from AC units look temporary and unfinished. Some still drain on the patio/deck (see picture). Recommend painting the pipes to match the brick or the concrete. • There are numerous stainless steel vents on west side of building. Consider painting to match the building. • The revised plan for the guardrail was received and is in the process of being reviewed. Comments will be forwarded when the review is complete. • Approximately 33 parking stalls were lost with the restriping of the underground garage and the requirement by the Fire Marshall to provide an adequate fire lane in front of the building. The Ciry reserves the right to monitor the parking situation and work with the developer to find ways to provide additional parking if it is needed. Public Works 7/31/00 Items to be completed: • Complete final lift of bituminous and striping of parking lot. • Repair any cracked concrete curb and sidewalk on site. • Replace any cracked curb and sidewalk on City property, add expansion joints and adjust poorly placed hand holes as identified. • Southeast corner at 66th and Pleasant entrance: replace dead sod in the boulevard with concrete. • Clean out all catch basins and storm lines. • Install knock-down bollard at sidewalk north of 67th Street cul-de-sac. • Complete irrigation to center island in 66th Street per approval of Operations Coordinator. AGENDA SECTION: Consent AGENDA ITEM # 3A REPORT # 4 STAFF REPORT r HOUSING AND REDEVELOPMENT AUTHORITY MEETING - AUGUST 21, 2000 LYNNETTE CHAMBERS, LEASED HOUSING REPORT PREPARED BY: SPECIALIST NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ~ ~. /~ ~, ITEM FOR HRA CONSIDERATION: ~ Adjustment of payment standard for the Section 8 program. L RECOMMENDED ACTION: By Motion: Approve the adjustment of payment standard for the Section 8 program. III. BACKGROUND. The Section 8 program is administered in accordance with the Housing and Redevelopment Authority's (HRA) Administrative Plan. According to the plan and the Department of Housing and Urban Redevelopment (HUD) regulation, the voucher program provides financial assistance based on unit bedroom size. Clients pay a minimum of 30 percent of their income towards rent. HUD, through the HRA also allows a larger payment than the minimum based on a standard which reflects a survey of local rents. This is called the "payment standard". New HUD regulations allow the HRA to increase the payment standard to 110 percent of the area Fair Market Rent (FMR). HUD determines the FMR on an annual basis for the Twin City Metropolitan area. The Richfield HRA may increase the payment standard above 110 percent of this amount but not to exceed 120 082100section8 percent of the area FMR without approval from HUD. However, results from a rental survey conducted by staff have indicated that rental rates in Richfield were above 120 percent of the area norm and would need HUD approval to raise the payment standard on some of the bedroom sizes. The results of-the survey were submitted end approved by HUD. There is a two tiered payment standard increase proposed based on the results. One, effective September 1, 2000, would provide rent relief for the month of September and two, effective October 1, 2000, would be used in HUD's fiscal year October 2000 to September 2001 program budget. The attached table (Attachment A) clarifies the changes being proposed. III. BASIS OF RECOMMENDATION • Due to the low vacancy rate. and increased demand, apartment rents are increasing significantly. • HUD provides sufficient federal assistance to cover these adjustments in the payment standards and has approved the increase. • Section 8 participants will be able to choose from a larger selection of affordable housing units and receive some immediate rent relief. A. POLICY • The HRA must approve increases in the payment standard for the Section 8 program. B. CRITICAL ISSUES • Without an increase in the payment standard many Section 8 participants will be unable to find housing and keep up with rent increases. C. .FINANCIAL • An increase in the payment standard will decrease the rent burden for Section 8 participants. • HUD provides sufficient funding to cover the increase. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Do not change the payment standard at this time. However, HUD guidelines suggest an adjustment is needed. V. ATTACI-IMENTS • Attachment A, proposed modifications to voucher program. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A a z w ~~ v H Q Q _ ~ z ~~ w ~, aW. 0 ~ 07 N 07 N LM O~ d' 00 O r O.a ~ ~ ~ D ~a 0 z = F"' cn Z F. O O WZ W ~ r ~ ~ ~ O r W O O O u. w a W V Z W ~ O ~ ~ ~ ~ N N 0 ~ ~ ~ ~ O Z m m m m m ~ a ~ O r N M d' ~. Q 2~ z W~ ~N aw ~ O Q~ d7 d0' 0~0 O a[! 00 O r da ~ ~ i ~ ~ O ~° z = H N Z 00 W Z ~ ~ ~ O ~ ~ M ~D r O ~ r N C7 N O w W V Z D W ~ O rL O rL O ~ O .rte O N N N ~ p ~ ~ ~ ~ G. H W m W m W W W a ~ O N M et