04-19-99 agendaCITY OF RICHFIELD
MONDAY, APRIL 19, 1999
• REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
7 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF REGULAR HRA MEETING
OF MARCH 15, 1999
OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE
AGENDA
2. CONSIDERATION OF EXTENDING AGREEMENT WITH RYAN COMPANIES US,
INC. TO DECEMBER 30, 1999 TO CONTINUE STUDY OF PENN AND SIXTY-
SIXTH STREET AREA TO DETERMINE REDEVELOPMENT FEASIBILITY AND
PREPARE REDEVELOPMENT PLAN OPTIONS
HRA LETTER NO. 19
3. CONSIDERATION OF CSM'S COMPLETION OF 120 DAY PRECONDITIONS FOR
REDEVELOPMENT OF LYNDALE GATEWAY AREA IN ACCORDANCE WITH
• CONTRACT FOR PRIVATE REDEVELOPMENT
HRA LETTER NO. 20
4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE
OF 6512 BLOOMINGTON AVENUE TO JOHN B. MAHONEY CONSTRUCTION
INC., AND CANCELLATION OF PUBLIC HEARING TO SELL OF 7520 COLFAX
AVENUE
HRA LETTER NO. 21
5. CONSIDERATION OF RESOLUTION AUTHORIZING ISSUANCE OF COMPLETION
CERTIFICATES TO TWIN CITIES HABITAT FOR HUMANITY, INC. FOR 6820
PORTLAND AVENUE AND THOMAS J. MAURER CONSTRUCTION, INC. FOR
6820 RUSSELL AVENUE
HRA LETTER NO. 22
6. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7608
PILLSBURY AVENUE AS EARLY ACQUISITION FOR FUTURE REDEVELOPMENT
HRA LETTER NO. 23
7. EXECUTIVE DIRECTOR REPORT
8. 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.
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 23
Agenda April 19, 1999
Issue Statement:
Authorization to purchase 7608 Pillsbury Avenue as an "early acquisition" for future
redevelopment.
Background:
The area north of the existing City garage has been identified as a potential expansion
space for the City garage or for townhouse redevelopment should the garage relocate
to another site. In this area are three single family homes and the Gleason Mortuary.
The homeowner at 7608 Pillsbury Avenue plans to move for personal reasons, and has
made her home available for purchase. Buying from a willing seller creates less
disruption, and prevents a potential buyer from settling in fora .relatively short period of
time.
The agreed upon purchase price of $109,000 is based on an appraisal report.
Recommended Motion:
Adopt the attached resolution-which authorizes the purchase of 7608 Pillsbury Avenue
at $109,000.
Basis of Recommendation:
1. The owner of 7608 Pillsbury Avenue desires to sell and has voluntarily offered her
property for purchase.
2. Redevelopment of this area will be a reality in the future.
3. Funds are available for the purchase.
Alternative Recommendation:
1. Delay authorization of an early purchase option.
2. Reject the purchaseproposal.
Discussion/Decision Mode:
Staff will explore the feasibility of renting the property. Items to be evaluated would
include the length of time before property would be needed for new development and
the cost to bring house into code compliance for rental.
Res c Ily submitted,
~j/r'
eve .Devi
Acting Executive Director
SLD:ds
HRA RESOLUTION NO.
. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT
7608 PILLSBURY 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:
7608 Pillsbury Avenue: The east 121.99 feet of Lot 2, Block 4 R.C.Soens Addn.;
and
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, the property meets requirements for acquisition; and
WHEREAS, the purchase price is based on an appraisal; and
WHEREAS, funds are available for acquisition.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota.
1. The purchase price of 7608 Pillsbury Avenue is approved at $109,000.
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 19th day of April, 1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•
50 0 50 100 150 200-Feet
414-99 ~
^~
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 22
Agenda April 19,1999
Issue Statement:
Authorization to issue Completion Certificates to Twin Cities Habitat for Humanity, Inc.
for 6820 Portland Avenue and Thomas J. Maurer Construction, Inc. for 6820 Russell
Avenue.
Background:
The HRA authorized development of the above referenced properties. The
development agreements provide for the issuance of a Certificate of Completion when
construction is completed. (A sample certificate is attached.) The homes have been
completed. Escrows for finish landscaping and driveways will be retained as necessary
for each site. The builders have requested the release of the Letters of Credit and the
Completion Certificates upon completion and closing. Staff is anticipating these
requests and wants to respond in a timely manner upon verification of completion.
Recommended Motion:
Authorize the Chair and Acting Executive Director to execute the Completion
Certificates in accordance with the attached resolution.
Basis of Recommendation:
1. Construction has been completed and the Inspections Division is prepared to issue
the Certificates of Occupancy.
2. The builders have performed in accordance with construction agreements and will
seek the issuance of Completion Certificates.
Alternative Recommendation:
Do not issue Certificates of Completion at this time.
Discussion/Decision Mode:
This matter will be presented at the April 19, 1999 HRA meeting.
R ctfully submi ted,
- /GbV` s~ij
n . Devich
Acting Executive Director
SLD:ds
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATES OF COMPLETION
FOR NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT 6820 PORTLAND
AND 6820 RUSSELL AVENUES
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) entered into contracts with Twin Cities Habitat for Humanity,
Inc. and Thomas J. Maurer Construction, Inc.; and
WHEREAS, the new homes are located at 6820 Portland and 6820 Russell
Avenues respectively; and
WHEREAS, performance securities in the amount of $20,000 can be released to
Twin Cities Habitat for Humanity, Inc. and $33,000 can be released to Thomas J.
Maurer Construction, Inc.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield,
1. The Certificates of Completion for 6820 Portland and 6820 Russell
Avenues can be issued.
2. The.performance securities can be released when the Completion
Certificates are issued.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of April,1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that (Builder) 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 (Builder) dated (Dated filed
(Date) as Document No. (Number) with respect to construction of
the Improvements at (Address) ,legally described as (Legal
Description) , in accordance with the approved construction plans 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 OF RICHFIELD
By
Its Chairperson
By
Its Executive Director
STATE OF MINNESOTA }
SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
19 , by
and 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
• [H:CdAdmin:Housing:Form:Cert-Comj
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 21
Agenda April 19,1999
Issue Statement:
Public hearing and authorization to sell 6512 Bloomington Avenue to John B. Mahoney
Construction, Inc. Cancellation of the public hearing to sell 7520 Colfax Avenue.
Background:
6512 Bloomington Avenue
The HRA acquired the two properties under the Richfield Rediscovered Program. It is
proposed that the HRA sell 6512 Bloomington Avenue to John B. Mahoney
Construction, Inc. for development of a single family home. The home at 6512
Bloomington Avenue will have three bedrooms, an attached double garage and an end
value of approximately $130,000. The house will also incorporate certain low-frequency
sound insulation efforts, recently demonstrated in Maryland for pre-existing houses near
the Baltimore airport. The efforts will include storm doors, sound board on the exterior
walls and ceiling, insulation values higher than is standard, and insulation board on
walls and ceiling. (Staff is not aware of any newly constructed homes, which have been
built to deal with low-frequency noise.) The project would be conducted in accordance
with a development agreement.
S 7520 Colfax Avenue
A buyer/builder team had been identified for the lot at 7520 Colfax Avenue. The buyers
have completely withdrawn as of April 5. The public hearing notice had already gone to
press.
Recommended Motion:
Following a public hearing, adopt the resolution authorizing the sale of 6512
Bloomington Avenue to John B. Mahoney Construction, Inc. Cancel the hearing to sell
7520 Colfax Avenue.
Basis of Recommendation:
1. John B. Mahoney Construction, Inc. has recently completed a twin home project and
is currently constructing anthree-unit townhome development in Richfield. The
company has provided evidence of experience, capability and financial security.
2. The HRA acquired 6512 Bloomington Avenue for the Richfield Rediscovered
Program.
3. The terms of the development agreement have been negotiated and are in
conformance with program guidelines.
4. Notice of public hearing on sale of the properties was published on April 7, 1999 in
the Sun-Current.
Alternative Recommendation:
Do not proceed with the development agreement, and direct staff to find another
builder/buyer team.
Discussion/Decision Mode:
Closing would occur in late April or early May with construction starting soon
afterwards.
Respectfully submitted,
~~
ven L. Devich
Acting Executive Director
SLD:cak
•
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6512
BLOOMINGTON AVENUE TO JOHN B. MAHONEY CONSTRUCTION, INC.
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in
furtherance of the Richfield Rediscovered Program adopted by the HRA, said real
property being described as follows:
Address
6512 Bloomington Avenue
Legal Description
Lot 4, Block 5, Nokomis Gardens
Rearrangement of
Blocks 1, 2, 3, 4, and 5 Girard Parkview
Addition;
and
WHEREAS, the HRA is authorized to sell real property within its area of
operation after a public hearing; and
WHEREAS, the purchaser of the described property has been identified and a
development agreement negotiated as follows:
Performance
Address Sale Price Securi Builder
• 6512 Bloomington $27,000 $27,000 John B. Mahoney
Avenue Construction, Inc.;
and
WHEREAS, a public hearing has been held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. A public hearing has been held and 6512 Bloomington Avenue is
authorized to be sold for $27,000 to John B. Mahoney Construction, Inc.
2. The Chairperson and Acting Executive Director are authorized to execute
a Contract for Private Development and other agreements necessary to
effectuate the purchase.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of April, 1999.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
3
HOUSING AND REDEVELOPMENT AUTHORITY
+~ HRA Letter No. 20
Agenda April 19, 1999
Issue Statement:
CSM's completion of the 120 day preconditions for the redevelopment of the Lyndale
Gateway area in accordance with the Contract for Private Redevelopment.
Background:
On January 19, 1999, the HRA entered into a Contract for Private Redevelopment with
CSM Properties, Inc. for the Lyndale Gateway area. This area includes Lyndale
Avenue, as well as the east side of Aldrich Avenue and west side of Garfield Avenue,
between 76th and 77th Streets.
The contract specifies a number of preconditions to be fulfilled within 120 days of its
execution. CSM has provided a site plan and letter (attached as Exhibit A) which
addresses many of the preconditions. Among the preconditions which CSM has
submitted as fully completed are: the concept plan; the location and nature of public
improvements; the location of interior traffic circulation systems; the landscape plan; the
schedule for beginning and completing construction, and; the mediation process for the
purchase of property.
The preconditions which are not fully addressed by CSM include: the tree protection
strategy; the assessment of the environmental condition of the property; the number
..and average wages for new jobs to be created; the form of the Tax Increment Plan; the
necessary amount of public assistance; and the strategy for dealing with homeowners
on the east side of Garfield Avenue.
Each of the preconditions has been reviewed, point by point, in a letter addressed to
CSM Properties, Inc: (attached as Exhibit B). In particular, the letter indicates the
manner in which each of the uncompleted preconditions are to be met.
The concept plan that has been submitted differs from the original proposal in that retail
uses have replaced the extended stay hotel on the west side of Lyndale Avenue.
Recommended Motion:
Adopt a motion which:
Acknowledges the completion of the preconditions as submitted in Exhibit A,
identified as items a, c, d, f, I and o of Article 11.5 in the Contract for Private
Development; and
2. Accepts the manner for completion of the outstanding preconditions (items b, e, g,
h, i, j, k, m and n of Article 11.5 of the contract) as indicated in Exhibit B.
•
Basis of Recommendation:
1. The HRA entered into a Contract for Private Redevelopment with CSM Properties,
Inc. on January 19, 1999 for the redevelopment of the Lyndale Gateway Area.
2. The contract states that the "preconditions" should be fully addressed within 120
days of the execution of that contract.
3. CSM Properties, Inc. has fully addressed many of the preconditions in Exhibit A.
4. Exhibit B establishes a manner for addressing the uncompleted preconditions.
Alternative Recommendation:
Terminate the contract with CSM for non-compliance.
Discussion/Decision Mode:
Property owners and tenants in the. Lyndale Gateway area were sent an update on the
status of the redevelopment project last week. The update stressed that it is still early in
the process and that property may not be acquired for some time, therefore, discussions
regarding. relocation may be premature. This update also served as a notice of tonight's
meeting.
Mr. Kornberg will be present to provide an update on CSM's redevelopment activities in
the Lyndale Gateway area including a schedule for acquiring property and completing
site clearance activities.
Respe tfully submitted,
Steven L. Devich
Acting Executive Director
SLD:cak
•
EXHIBIT A
April 12, 1999
Mr. John Stark By Fax & First Class Mail
City of Richfield 612.861.8974
6700 Portland Avenue South
Richfield, Minnesota 55423
Re: Lyndale Gateway
Status of Initial Preconditions to Acquisition
Dear John:
Enclosed herewith please find our Concept Plan for our proposed redevelopment at Lyndale
Gateway. A summary of the development and its components are set forth below:
West Side of Lyndale
1. Free standing drug store of approximately 15,120 square feet;
• 2. Retail space of 30,880 square feet including a second story mezzanine of 4,000
square feet;
3. 14,500 square feet of office space on two stories contiguous to the retail space;
and
4. 107 underground and 115 surface parking stalls.
East Side of Lyndale
1. 145 unit, four story senior apartment building;
2. 35,000 square foot (rentable) office located within the apartment building; and
3. 133 underground and 119 surface parking stalls.
We propose to have project elements platted separately. The Concept Plan contemplates two
separate lots for the West Side of Lyndale, and two separate lots for the East Side of Lyndale.
As shown on the enclosed Concept Plan, the improvement of Lyndale Avenue and the
completion of the entry monuments and project streetscape would be public improvements,
completed by the City. The Concept Plan contemplates the dedication of sufficient right of way
• by the Developer to provide for two lanes on Lyndale in each direction plus a turning lane for
. south bound Lyndale to east bound 77th Street. The Plan also contemplates the vacation of
existing public rights of way at the alleys for Garfield and Aldrich to be vacated in connection
with our land acquisition activity, but not prior to the time that we have provided sufficient
evidence to the City that we are prepared to proceed with the development and construction of
the project.
Interior traffic for the development is handled through the parking lots with limited access from
Lyndale Avenue and 77th Street (west side only). We will continue to work with staff, its traffic
consultant, and other traffic experts to ensure that our proposed internal road system functions
properly, and can coordinate with the traffic immediately adjacent to the development, and
outside the project area. As indicated above, the Plan contemplates necessary widening to the
Lyndale Avenue improvements.
The enclosed Concept Plan shows our preliminary plan with regards to landscaping for the
Project. As individual project elements are presented to the Planning Commission and City
Council for PUD approval, more detailed landscaping plans will be submitted, in order to
address concerns regarding screening, buffering, etc. It is our expectation that as each of the
project elements is developed, the approved landscaping will be implemented as part of the
construction.
With our proposed redevelopment, and as indicated on the preliminary landscaping plan shown
on the Concept Plan, we anticipate a substantial amount of landscaping along the perimeter of
the development. We believe that this landscaping will be substantially in excess of the existing
landscaping, particularly for the current commercial land uses. Because the scope of the
redevelopment contemplates removal of all of the existing improvements located on site, it is
unlikely that any of the existing vegetation (which is primarily located on existing residential
uses) will be able to be saved, however we will make every reasonable effort to try and preserve
mature landscaping, where possible. Tree preservation measures we will undertake during
construction include clearly identifying tree preservation areas prior to any activity on site,
fencing off of any tree preservation areas to prevent accidental construction damage, and attempt
to implement creative site planning techniques, where possible to try and preserve existing
mature vegetation.
A schedule for the proposed commencement and completion dates for each of the project
elements is set forth on Exhibit A attached hereto. Our expectation is that public improvements,
including utilities, if any, will be constructed in conjunction with each of the project elements, so
as to minimize the negative impact of the redevelopment on other areas of the City, and to ensure
that access and utilities are available to each of the project elements as they are completed.
We have not yet completed our environmental review of the property, and therefore are unable to
provide any significant discussion regarding on site contamination or pollutants. It is our
expectation that to the extent any such contamination is found, as between Developer and the
I3RA, any remediation or mitigation of that contamination would not be the responsibility of the
HRA.
With respect to utilities currently located on the redevelopment property, it is our expectation
that to the extent that these utilities are no longer required to service the new uses, that these
would be abandoned in accordance with City standards. Relocation and/or the installation of
new utilities would similarly be completed in accordance with City standards, and in such a
manner as to minimize the impact of such relocation on the balance of the City's utility system.
A final plan for utility abandonment, relocation, and reconstruction will be submitted to the City
for its review and approval prior to the issuance of a grading permit for the Project. Utility
improvements in Lyndale Avenue axe expected to be completed by the City.
We are prepared to undertake a mediation program as required by the terms of our Contract for
Redevelopment, in the form of the Mediation Program currently implemented for Interchange
West.
We are currently in the process of finalizing our But-For Analysis for the enclosed Concept Plan,
and will have that Analysis complete prior to our request to the HRA (if necessary) to have it
undertake condemnation proceedings, or prior to the commencement of construction, whichever
comes first.
Based on direction from the HRA, the Concept Plan does not contemplate the expansion of the
project area east of Garfield Avenue. It is our understanding that unless unanimous consent from
the homeowners east of Garfield is obtained, no such development will occur. Accordingly, it is
our expectation that City staff will undertake the necessary survey to determine the desires of the
• homeowners. Once such a survey has been completed, we will work with staff to resolve
whatever issues may arise.
Sincerely yours,
Murray Kornberg
Acquisitions & Financing
Enclosures
cc: Kristi Olson
Gary Tushie
U
EXHIBIT A-1
Preliminary Commencement and Completion Schedule
Project Elements
Lyndale Gateway
April 12, 1999
Element Commencement Date Completion Date
WEST SIDE
Drug Store September 1, 2000 December 31; 2001
Retail September 1, 2000 December 31, 2001
Office September 1, 2000 December 31, 2001
EAST SIDE
Apartments June 1, 2000 December 31, 2001
Office June 1, 2000
•
•
EXHIBIT B
Apri120, 1999
CSM Properties, Inc.
Mr. Murray Kornberg, President
2575 University Avenue West, Suite 150
St. Paul, MN 55114-1024
Subject: Contract for Private Redevelopment; Lyndale Gateway/Preconditions
Dear Mr. Kornberg:
I am writing this letter to confirm the understanding of the parties with respect to the status of compliance
with the conditions contained in Section 2.5.1 of the referenced agreement. In the text the specific
condition is recited followed by the statement of status.
(a) the Concept Plans, which will include agreement relative to the proposed
subdivision of the Redevelopment Property and creation of the Elements of
the Development;
Your submittal dated April 12, 1999 (attached as Exhibit A) satisfies the requirements of this
paragraph.
(b) the location and nature of all public improvements to be constructed to serve
. and benefit the Development, together with the timing and responsibility for
their construction and the phase out of existing public improvements;
The improvements of Lyndale Avenue will be a public improvement completed by the City.
Other elements of the development include completion of entry monuments and project
streetscape; the funding for which will be addressed prior to a request for the authorization of
condemnation. Otherwise, the information contained in Exhibit A satisfies this paragraph.
(c) the location, layout and design of any interior traffic circulation systems,
including their interface with adjacent roadways, and the timing for
construction of the same;
The information contained In Exhibit A satisfies this paragraph.
(d) the landscape plan and the timing for installation of the same;
The information contained in Exhibit A satisfies this paragraph. Detail on the plan and timing
will be required as part of the PUD Plan submittals for the development.
(e) tree protection during construction (redeveloper to be responsible for the
cost of a survey and protection plan);
You have agreed to continue to work with the HRA staff and/or its consultants to formulate the
specifics of the actions to be taken on site during construction to protect those trees which will be
designated for protection in your landscape plan. The form of those actions is to be agreed to
prior to the issuance of any grading or building permits.
(f) a schedule for commencemen
Element of the Development,
Development;
t and completion of construction of each
and all public improvements to serve the
The material contained in Exhibit A-1 satisfies this paragraph.
(g) the condition of the Redevelopment Property with respect to environmental
contamination and pollution; and the obligations and responsibilities of the
parties with respect to remediation, if any;
You will continue to determine the condition of the Redevelopment Property, and will have done
so prior to any authorization of condemnation. The cost of any remediation as well as the cost of
any studies will not be borne by the HRA.
(h) the nature, location and cost of removal or relocation of any utilities
currently located on the redevelopment Property which are required to be
removed or relocated due to construction of the minimum improvements and
the allocation and financing of the cost of such activities; and
Based on the information supplied in Exhibit A, the HRA concludes that you have presented an
acceptable mechanism to resolve this matter. The final resolution will be agreed to prior to the
issuance of any grading or building permits, and that the cost of any relocations will be borne by
the Redeveloper.
(i) the conditions for the release of redeveloper following the assignment of an
Element described in Section 9.4(b).
Release will be granted on any Element upon the delivery to the HRA of a letter of credit in an
amount equal to the remaining unfunded potential liability of the HRA for all of its obligations
under the Agreement multiplied by the percentage of development-wide tax increment coming
from such Element.
(j) to the extent required by law, the number of new jobs and the average wages
for the new jobs created by the Development.
Agreement on this matter is to be reached prior to the authorization of condemnation by the
HRA.
(k) the form of the Tax Increment Plan, which plan, following agreement as to
form, shall have been considered and adopted by the City.
Agreement on this matter is to be reached prior to the authorization of condemnation by the
HRA.
(1) the program of mediation of matters described in Section 3.2(b).
The material contained in Exhibit A satisfies this paragraph.
(m) the level of public assistance which is necessary in order to facilitate the
development contemplated in the Concept Plan (The "But For" Analysis).
Agreement on this matter is to be reached prior to the authorization of condemnation by the
HRA.
(n) the means and responsibility for addressing requests from property owners
of land on the east side of Garfield Avenue.
Agreement on this matter is to be reached prior to a request for the authorization of
condemnation.
(o) how the design of the project will accommodate the anticipated future
widening of Lyndale Avenue; and the method for calculating the payment to
the redeveloper for the subsequent acquisition of right-of--way for that
project.
The material supplied in Exhibit A satisfies this paragraph.
Except as stated above, all of the preconditions contained in Section 2.5.1 of the Agreement have
been satisfied, and with respect to those which have not been fully satisfied, such preconditions
are to be satisfied within the time periods stated herein.
Please advise if you have any concerns or additions to the terms of this letter. If not, would you
please provide me with a written confirmation of agreement.
Respectfully yours,
Steven L. Devich
Acting Executive Director
SLD:js
Attachment
s
• • •
s
v
R
1~
IIIJIIJII ~
I
I
~
I
~
~
~
:
_~ e
>~
-: o
~ a y
c~
~n 'L y ~
~ s ~
.a.. ~ ~:
N O O
Wy
a `~ ~
~.
O ~
~ et.
"!
~~ ~~ ~ ~.
~.
BRl'ANT AVE
I.IGRRIFT D\/F
.__ ~
_~
r
~ L
~ _
' ~l
= 0
...y
i
1
1
I
I
I
I ~`
1
I
I
I
I
I
I
I
I
I
1
I _
I
I
I
I
i
I
I
I
I
I x
I
I
I
~.
i~
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. i9
Agenda April 19, 1999
Issue Statement:
Consideration of the extension of the agreement with Ryan Companies US, Inc. for the
Penn Avenue and Sixty-Sixth Street (PASSS) area.
Background:
The Penn and Sixty-Sixth Street area has been an area where redevelopment was
proposed ten years ago. However, there was no interest by a developer in this area
before Ryan offered to explore redevelopment feasibility.
On May 26, 1998, the Ryan Companies US, Inc., the City of Richfield, and the Richfield
Housing and Redevelopment Authority agreed to cooperate in a study of the PASSS
area to determine redevelopment feasibility and prepare redevelopment plan options.
The term of the agreement was for one year. That agreement will expire on May 26,
1999 unless an extension is granted. The consideration is granting an extension until
December 30, 1999.
Ryan has been pursuing their responsibilities in the agreement. The need for the
extension is because the planning process has progressed more slowly than anticipated
a year ago simply because this is a complex area in which to pursue redevelopment.
• Items such as identifying potential uses and the appropriate location for them, as well as
which buildings would be removed and which would be retained, have to be considered.
Three meetings with the Planning Commission Community Advisory Team have been
held. Ryan is using the input of the team to identify redevelopment options. It is
expected that they will release these options in June or July. It will take the late
summer and fall for the community, Planning Commission, HRA, and City Council to
review the plans. Therefore, an extension is warranted and should be granted.
Recommended Motion:
Extend the agreement with Ryan Companies US, Inc. to December 30, 1999 and
request the City Council to concur in that extension.
Basis of Recommendation:
1. Ryan is making progress exploring the feasibility of redevelopment and preparing
redevelopment options for the PASSS area.
2. The complexities require additional attention and time before a final concept can be
formulated.
Alternative Recommendation:
1. Do not extend the agreement with Ryan.
2. Extend the agreement with Ryan for a shorter period.
Discussion/Decision Mode:
• If the planning process is discontinued, the progress made to this point could be lost.
By continuing the agreement, Ryan will continue to work with the staff, Planning
Commission Community Advisory Team, Planning Commission, HRA, and City Council
to determine redevelopment feasibility in the study area.
Res ectfully submitted,
tev n L. Devich
Acting Executive Director
SLD:cak
U
n
LJ
~,
AGREEMENT
THIS AGREEMENT is made and entered into this 26TH day of /'~~ Y ,
1998, by and between the City of Richfield, Minnesota, a Minnesota municipal
corporation ("City") and the Housing and Redevelopment Authority in and for the
City of Richfield, Minnesota a Minnesota public body corporate and politic
("HRA") (City and HRA hereinafter collectively referred to as "First Parties") and
Ryan Companies US, Inc., a Minnesota corporation (hereinafter."Ryan").
RECITALS
First: Ryan is interested in pursuing the redevelopment of that certain area
identified on Appendix A (hereinafter the_"Redevelopment Area");
Second: Ryan is proposing redevelopment within the Redevelopment Area
which may include office, restaurant, limited retail, office showroom and
residential uses (hereinafter the "Redevelopment°)'
Third: The First Parties wish to cooperate with Ryan's efforts with
Redevelopment and are willing to proceed as described in this Agreement;
Fourth: -The parties acknowledge that Ryan will expend substantial time and
effort, and incur substantial expense in pursuing the Redevelopment;
• Fifth: Ryan is willing to undertake the above described activities with the
reasonable assurance from the First Parties that they will support and cooperate
-with Ryan in its Redevelopment efforts.
Sixth: The First Parties and Ryan have executed this Agreement to document
their understanding with respect to the proposed Redevelopment.
AGREEMENT
NOW THEREFORE, in consideration of the premises and mutual
obligation of the parties contained herein, each of them does hereby represent,
covenant and agree with the other as follows:
1. Statement of Intent.
It is the intention of the parties that Ryan will proceed with the
development activities necessary to permit Redevelopment in a manner,
and on terms and conditions, which are mutually acceptable to Ryan and
the First Parties. The parties acknowledge that in order for
Redevelopment to be constructed, Ryan may at some point need financial
and/or site assembly assistance from the First Parties. This Agreement
i does not, however, constitute either approval of such financial or site
assembly assistance, nor does it obligate the First Parties to provide such
assistance.
2. Undertaking by Ryan.
Ryan intends to undertake and pursue certain activities with respect to
the Redevelopment. generally as outlined in the attached site analysis
study schedule. Ryan's activities will include the following: site .planning
feasibility, development of plans for the Redevelopment, application for
necessary government approvals, and such other activities as would be
customary and necessary to permit the Redevelopment.
3. First Parties' Undertaking and Agreement.
The First Parties agree to cooperate with Ryan in Ryan's undertakings,
and specifically agree that during the term of this Agreement the First
Parties will not (i) provide or enter into an agreement for provision of
financial assistance to any third party in connection with any proposed
development within the Redevelopment Area, or {ii) except as may be
necessary in connection with the provision of public improvements,
condemn or agree to proceed with the condemnation of any property
within the Redevelopment Area to assist or facilitate development within
such area by any third party.
4. Term.
The term of this Agreement shall be for a period of one (1) year, provided
that, either party may terminate this Agreement as to all or any portion of
the Redevelopment Area upon thirty (30) days written notice to the other,
in the event that: (a) the City determines, in good faith, that Ryan is not
diligently pursuing the Redevelopment with respect to the portions
terminated, or (b) -Ryan determines, in good faith, that the Redevelopment
is not feasible with respect to the portions terminated. First Parties may
also terminate the Agreement for failure of Ryan to meet its obligations
under paragraphs 5D or 5E. Ryan will provide the First Parties with
written reports at least quarterly regarding the status of its activities
hereunder.
Any such notice shall be deemed delivered if either actually delivered, or
if faxed and mailed to the parties at the following addressees:
Ryan Companies US, Inc.
Attn: Kent Carlson
700 International Centre
900 Second Avenue South
Minneapolis, MN 55402-3387
Phone: (612) 336-1200
Fax: (612) 337-5552
2
City of,Richfield
6700 Portland Avenue South
Richfield, MN 55423
Attn: City Manager
Phone: (612) 861-9760
Fax: (612) 8618974
Richfield Housing and Redevelopment Authority
6700 Portland Avenue South
Richfield, MN 55423
Attn: Executive Director
Phone: (612) 861-9760
Fax: (612) 8618974
5. Miscellaneous.
A. This Agreement constitutes the entire agreement between the
.parties relative to the proposed Redevelopment. Unless
spec~cally described herein, no obligation shall be inferred or
construed.
B. As expansion of the foregoing, Ryan understands that further and
separate action, for which no obligation is created hereunder, will
be required before the First Parties are obligated to take various
actions with respect to the Redevelopment. Those actions may
include, without limitation:
a) establishment of Project Area and Tax Increment District;
b) agreement to provide tax increment or other financial
assistance to the Redevelopment;
c) zoning and subdivision approvals;
d) acquisition of land within the Redevelopment Area by either
voluntary purchase or condemnation (or both); and
e) .construction of public improvements to serve the
Redevelopment.
C. Ryan further understands that many of the actions which the First
Parties may be called upon to take require the reasonable
discretion and in some instances the legislative judgment of the
First Parties, such actions may be made only following established
procedures; and First Parties may not, by agreement, agree in
advance to any specific decision in such matters.
D. Ryan hereby indemnifies, holds harmless and agrees to defend,
the First Parties, their officers agents and employees from any
3
. i
claim or cause of action of whatever nature occasioned by or
arising out of this Agreement or the first Parties performance
thereunder.
•
E. Ryan agrees that it will pay all reasonable costs and expenses
incurred by the First Parties relating to the preparation of this
Agreement and all actions taken by the First Parties in furtherance
of their obligations hereunder. Such payment shall be made to
,First Parties not later than 30 days following each request for
payment accompanied with detail necessary to support such
request.
IN WITNESS WHEREOF, the parties have executed this Agreement
effective the date and year first above written.
CITY OF RICHFIELD- ~ - --
By:
ey:
•
RICHFIEL USING AND REDEVELOPMENT AUTHORITY
By:
Its:
By:
RYA
ay:
IH:CdAdmin:HRALTR:Att Ryan]
4
~~
Its: ~G ~[/,~ G it ~1 I/ ~ ~ i v' L C~v'
APPENDIX A
PASSS AREA BOUNDARY
~~~ ~.
I~L1
~~
N
200 0 200 400 600 800 1000 Feet
414.89