08-17-98 agenda• CITY OF RICHFIELD
MONDAY, AUGUST 17, 1998
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
7 P.M.
AGENDA
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF JULY 20, 1998
OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION APPROVING
SALE OF CERTAIN LAND TO GRAMERCY PARK COOPERATIVE AT LAKE
SHORE DRIVE FOR GRAMERCY SENIOR HOUSING COOPERATIVE
PROJECT
HRA LETTER NO. 53
3. CONSIDERATION OF VARIOUS REDEVELOPMENT CONCEPTS FOR 7600
BLOCKS OF LYNDALE AVENUE
• HRA LETTER NO. 54
4. CANCELLATION OF PUBLIC HEARING AUTHORIZING DISPOSITION OF
RESIDUAL PARCEL AT 76TH STREET AND PENN AVENUE
HRA LETTER NO. 55
5. CONSIDERATION OF RESOLUTIONS APPROVING PROPOSED 1999 HRA
BUDGET AND CERTIFYING 1999 TAX LEVY AND AUTHORIZING REVISION
OF 1998 HRA BUDGET; AND SETTING NOVEMBER 16, 1998 FOR PUBLIC
BUDGET HEARING
HRA LETTER NO. 56
6. EXECUTIVE DIRECTOR REPORT
7. CLAIMS AND PAYROLL
ADJOURNMENT
AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON
REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO THE
ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702.
•
5 ,1
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 56
Agenda August 17, 1998
Issue Statement:
Approval of proposed property tax levy for payable year 1999 for certification to
Hennepin County and set optional date for public budget hearing for the 1998
Revised/1999 Proposed budget and tax levy.
Background:
As required by the Truth in Taxation legislation, each taxing authority must certify its
proposed tax levy for the payable year 1999 to the County Auditor on or before
September 15, 1998. Taxing authority for the purpose of this requirement includes all
counties, school districts, cities, towns and special taxing districts such as an HRA. No
local unit of government is exempt from this requirement. In addition, certain taxing
authorities must certify 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, 1998. In those instances, the dates must not conflict with hearing dates of the
county or the school district in which that taxing authority is located. Such hearings
must be scheduled between November 29 and December 20, 1998.
. However, the Truth in Taxation law does not require the HRA to hold a Truth in
Taxation hearing prior to adoption of a final levy. Instead, the final levy is adopted as
part of the City's final certification process.
The HRA could, however, decide to hold a public hearing on the HRA budget and levy
at some point in the future prior to the City's adoption of a final levy. It is currently
anticipated that the City will hold a Truth in Taxation hearing in early December. The
HRA could hold a public hearing at its regular November meeting.
The Proposed 1999 HRA levy represents a 3.15% increase from the previous year's
levy and is approximately $14,500 less than the maximum HRA levy established by law
of .0144% of the City's total market value.
Recommended Motion:
1. Adopt the attached resolutions approving the 1999 Proposed and 1998 Revised
Housing and Redevelopment Authority budget and 1999 tax levy.
2. Set a public budget hearing for 7:00 p.m. on November 16, 1998.
Basis of Recommendation:
1. The Minnesota Truth in Taxation law requires adoption of a preliminary levy from
each taxing authority.
0
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02. The recommended levy is allowed under Minnesota levy limits, which are still in
effect for housing and redevelopment authorities.
3. The budget and accompanying proposed levy for 1999 are ready for
consideration.
4. There is adequate time to meet the deadline for submission to Hennepin County.
5. 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.
Alternative Recommendation:
1. 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
1998 Revised/1999 Proposed budget.
2. The HRA could select a different date other than November 16 (regular November
meeting) to conduct a public hearing and adopt a final levy.
3. The HRA could simply proceed at a future date to adopt the budget and levy
• without holding any public budget meeting.
Discussion/Decision Mode:
Action by the HRA on August 17 is necessary to certify a preliminary levy to the County
within the Truth in Taxation statute time frame.
Respectfully submitted,
James. Prosser
Execut a Director
JDP:cak
0
5'3
0 HRA RESOLUTION NO.
RESOLUTION APPROVING PROPOSED 1999 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 1999 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 1999 in the amount of
$1,111,250 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
1999, and as the same are more fully detailed in the Executive
Director's official copy of the budget for the year 1999, in the
amount of $823,530 are hereby approved.
Section 3. There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 1998, payable in 1999 for the
following purposes:
Housing and Redevelopment Authority $185,000
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 17th day of August, 1998.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
0
5-1
0 HRA RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF THE 1998 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No. 641 appropriated funds for personal services and
other expenses and capital outlay for the Housing and Redevelopment Authority for the
year 1998, and
WHEREAS, the Executive Director has requested a revision of the 1998 budget
as detailed in the 1999 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
Section 1. That the 1998 appropriation for the Housing and Redevelopment
Authority General Fund be revised as follows:
$324,570 Increase
Section 2. Estimated 1998 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 1999 budget
document, are hereby revised as follows:
$239,580 Increase
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 17th day of August, 1998.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
. HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 55
Agenda August 17, 1998
Issue Statement:
Cancellation of public hearing authorizing disposition of the residual parcel at 76th
Street and Penn Avenue.
Background:
A public hearing for the disposition of a vacant parcel at the corner of 76th Street and
Penn Avenue is scheduled for the August 17 HRA Meeting. However, the time
consuming process of working with all the parties involved is taking more time than
anticipated.
Approximately four years ago, Hennepin County and the City jointly acquired the
northeast corner parcel at 76th and Penn to make traffic improvements at this
intersection. Two apartment buildings were razed and the right-of-way was expanded.
Vacant parcels remain. One parcel is owned privately and a four unit apartment
building is proposed. The other parcel is owned by Hennepin County.
Recommended Motion:
Cancel the public hearing authorizing disposition of residual property at 76th
Street and Penn Avenue.
Basis of Recommendation:
Cancellation of the public hearing is needed until the work with Hennepin County and
adjacent apartment owners is finalized.
Alternative Recommendation:
Discontinue the process.
Discussion/Decision Mode:
The tasks involving this parcel will be finalized and the item returned to the HRA for
consideration at that time.
Respectfully submitted,
James D. Prosser
Executive Director
JDP:cak
3
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 54
Agenda August 17, 1998
Issue Statement:
Consideration of various redevelopment concepts for the 7600 blocks of Lyndale
Avenue.
Background:
In January of this year, Gary Tushie presented a concept plan to the HRA. That plan
included an extended stay hotel; 27,000 sq. ft. of retail space; and a 150 unit senior
apartment building with first floor office space. CSM and Twin City Christian Homes
were involved in that proposal. The HRA expressed reservations about the proposal
and asked the developer to pursue other options.
The developer has now prepared two new concepts. In addition, they are presenting
the above mentioned plan. The options are described in the attached letter from
Murray Kornberg of CSM. A matrix comparing the concepts is also attached as are site
plans.
Recommended Motion:
• Select one of the three development options and direct staff to work with the developer
to refine the proposal and present the financial details to the HRA in October.
Basis of Recommendation:
1. The area in question has been identified for redevelopment.
2. The proposals would achieve many of the goals of the Lyndale Gateway study.
3. The proposals are preliminary and have not been fully evaluated; therefore it would
be appropriate for the HRA to direct staff to work with the developer to evaluate
financial feasibility and other factors of the preferred option.
Alternative Recommendation:
Direct staff to seek concepts from other developers (this should be expected to take
four to six months).
Discussion/Decision Mode:
Prior to the January 1998 presentation, the HRA had reviewed several different
proposals for the area. Potential developers have included a coalition of property
owners from the affected blocks, John Laurent, a commercial developer from Wayzata
and Jack Torvick, a business operator from the area. Of these, only one was
economically feasible without additional participation - beyond tax increment - from the
i HRA. That proposal involved Datasource Hagen. Because of several factors, that plan
! never materialized.
3,11
On a related note, it has been anticipated that the Lyndale Avenue bridge over 1-494
would be reconstructed in 1999. However, due to uncertainties about the ultimate
design of the 1-35W/1-494 interchange, the bridge will not be built until 2000.
Nonetheless, staff will be pursuing the "official mapping" of Lyndale Avenue between
76th and 77th Streets. (This section can be mapped with certainty. The section
between the bridge and 77th Street may change.) Having this section mapped would
allow the City to access recently approved funding to acquire right-of-way in this area.
An additional funding source would reduce project costs and would help facilitate
redevelopment on both sides of the street.
Respectfully submitted,
Ja D. Prosser
Executive Director
JDP:cak
n
U
0
Celebrating 20 c?s? Serving You
C IM Corporation
2575 University Ave. W., Suite 150 • St. Paul, MN 55114-1024
August 7, 1998
Mr. John Melin
City of Richfield
6700 Portland Avenue
Richfield, Minnesota 55423
Re: South Lyndale
Dear John:
3-3
6121646-1717 • FAX 6121646-2404
By Fax & Messenger
861-9749
Further to our recent discussions regarding the Main Street Shops at Lyndale, enclosed please
find site plans for three possible development scenarios for Lyndale Avenue between 76th and
77th Street.
10 Option A - West Side Development Only
This option contemplates the redevelopment of the west side of Lyndale Avenue only, and
includes a 98 room Marriott TownePlace Suites (with 98 parking stalls, and an outdoor pool),
commercial buildings of approximately 22,000 square feet (which could be configured as a
combination of retail and office) with a total of 102 parking spaces. The configuration of the
commercial buildings on the property have been designed to allow for pedestrian access from 77th
Street through the site to the parking area. All the buildings are to be located directly on Lyndale,
creating an urban feeling, with the parking screened from Lyndale Avenue by the buildings. The
enclosed Option A also anticipates residential redevelopment west of Aldrich Avenue, with 32
townhomes in a combination of 4 unit and 8 unit buildings.
An alternative variation on this plan would be to complete the commercial redevelopment only as
shown, with no redevelopment west of Aldrich Avenue.
Option A contemplates leaving the east side of Lyndale Avenue undeveloped at this time,
assuming that redevelopment would not occur there until an appropriate use was identified for the
east side.
Option B - Commercial Redevelopment on the west side of Lyndale Avenue with limited
commercial development on the east side of Lyndale Avenue
This option has the same commercial components on the west side of Lyndale Avenue (Marriott
TownePlace Suites and 22,000 square feet of commercial development), and proposes
k:\homeyniscdata\carolyn\wordpro\corresp\tnurray\I998\melin2.iwp
3-3 redeveloping the east side of Lyndale Avenue with a total of 26,000 square feet of office space,
and 64 townhomes in a combination of 4 unit and 8 unit buildings, which residential development
would extend east of Garfield Avenue. The office development is located at the northeast comer
of Lyndale and 77th Street, providing building massing on the corner with a total of 107 surface
parking stalls, most of which would be blocked from view by the one and two story office
building. Residential redevelopment is proposed in a townhomes configuration in order to
maximize density on the site.
This option does not contemplate any residential redevelopment west of Aldrich Avenue, however
a vari ation on this option would be to include the 32 townhome units west of Aldrich Avenue as
shown on Option A.
Option C - Commercial velo2me Lit west i of L dale Avenue with senior housing and
office on the east side of.Lvndaie
This option is the option that was previously presented to the KE A. Highlights of this option
include the same configuration of hotel and commercial uses on the west side of Lyndale Avenue,
with an 150 unit senior building, and approximately 26,700 square feet of office space. Parking
for the east side development would be accommodated with 120 underground parking spaces, and
65 surface parking stalls.
The three story senior housing project (designed as a congregate care facility, addressing a need
within the spectrum of senior housing options that is not currently being fulfilled in Richfield) is
. designed to front on Lyndale Avenue, providing a similar urban context to the building massing
on the west side of the street. The configuration of senior housing and office completely screens
the surface parking on the east side of Lyndale.
A variation of this plan could include residential development in a townhome configuration either
west of Aldrich Avenue, east of Garfield, or in both locations.
The foregoing options represent our evaluation as to the potential development scenarios for the
south Lyndale area. Our preferred development option is Option C, which is ready to proceed
subject to the completion of a development agreement, and the commencement of land
acquisition.
Option B is more speculative. Because no tenants have been identified from the office
component. Given the current market for office space, we do not believe that a more intensive
office use is warranted at this location.
Option A would allow for the commencement of redevelopment, and still provide the flexibility
for future development on the east side of Lyndale Avenue, once a potential use was identified
and approved. However, it has been our experience that piecemeal redevelopment is often not as
successful as an overall approach.
•
O.UIOMEIMISCDATAICAROLYMWORDPROICORPESPLMURRAY%199$1Malin2.lwp
Pending further direction from the HRA, we have not conducted a thorough economic analysis on
these options, nor have we completed elevation studies. An economic analysis of Option C was
previously reviewed, and I believe presented a viable development alternative. We have
completed a preliminary economic review of Option A without townhome development, and
found that even with the full amount of TIF assistance that could be generated, the project still
had a substantial funding gap.
I look forward fro discussing these options with the HRA at its meeting on August 17, 1998.
yours,
Acquisitions
Enclosure
cc: Bruce Palmborg
Gary Tushie (By fax)
•
•
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. HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 53
Agenda August 17, 1998
Issue Statement:
Public hearing and consideration of a resolution approving the sale of certain land to
Gramercy Park Cooperative at Lake Shore Drive for the Gramercy Senior Housing
Cooperative Project.
Background:
On July 20, 1998, the HRA approved a Contract for Private Redevelopment (Contract)
with Gramercy Park Cooperative at Lake Shore Drive (Developer) for the Gramercy
Senior Housing Cooperative Project (Project). The contract provides for the
construction of a 16 story, 218 unit senior cooperative housing building along with a
8,000 sq. ft. space to be occupied by the VFW Post 5555 in addition to an underground
parking structure.
Article III of the contract addresses the acquisition and conveyance of property to the
Developer. It is through the conveyance process that the tax increment assistance is
provided. The tax increment assistance was contemplated in the contract. The
Developer will purchase the VFW property at 710 Lake Shore Drive (Parcel A) and
• convey it to the HRA by quit claim deed. The HRA would then quit claim Parcel A back
to the Developer along with 6724 Lyndale Avenue (Parcel B) and a portion of the alley
adjacent to Parcels A and B. (Parcel C). Currently, Parcels B and C are part of the
Eminent Domain Proceedings authorized by the HRA on July 20, 1998. Also, per the
contract, the HRA shall pay the Developer as purchase price for Parcel A the aggregate
principal amount in the Note which is $3,000,000. The $3,000,000 will be paid to the
Developer over time with tax increments generated from the project.
The sale is contingent upon successful completion of the condemnation action as well
as the granting of the necessary zoning and conditional use permit by the City Council.
Recommended Motion:
Adopt the attached resolution which authorizes the sale of Parcels A, B, and C to
Gramercy Park Cooperative Lake Shore Drive.
Basis of Recommendation:
1. The approved contract calls for the sale of the subject property to the Developer.
2. The legal notice of public hearing was published August 5, 1998 in the Sun Current
newspaper.
3. The conveyance of Parcels A, B, and C from the HRA to the Developer will occur
• shortly after the HRA acquires title and possession to Parcels B and C through
eminent domain proceedings.
?.I
• Alternative Recommendation:
1. Delay approval.
2. Propose modifications.
Discussion/Decision Mode:
Action on August 17, 1998 is appropriate.
Respectfully submitted,
Jam tProsser
Executive Director
JDP:cak
•
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY AT
NORTHWEST QUADRANT OF LAKE SHORE DRIVE AND LYNDALE AVENUE
(GRAMERCY SENIOR HOUSING COOPERATIVE PROJECT)
WHEREAS, on May 18, 1998, the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota (the "HRA") approved the Modified Redevelopment
Plan for the Richfield Redevelopment Project Area, established the Gramercy Tax
Increment Financing District and adopted the Tax Increment Financing Plan relating
thereto (collectively, the "Plans"); and
WHEREAS, on June 22, 1998, the City of Richfield, Minnesota (the "City"), after
public hearing, approved the Plans; and
WHEREAS, on July 20, 1998, the HRA approved a Contract for Private
Redevelopment (the "Contract") with Gramercy Park Cooperative Lake Shore Drive (the
"Developer") for the Gramercy Senior Housing Cooperative (the "Project"); and
WHEREAS, the Plans and Contract call for the HRA to assist the Developer
through the redevelopment process; and
WHEREAS, the HRA has authorized condemnation to take certain real estate
interests; and
WHEREAS, the City Council must take actions related to the zoning ordinance;
and
WHEREAS, the HRA is authorized to sell real property within its area of
operation after public hearing; and
WHEREAS, said real property (the "Property") to be sold to the Developer is
described in Attachment A; and
WHEREAS, the public hearing has been held after proper public notice; and
WHEREAS, the Planning Commission has found the disposition of the Property
consistent with the Comprehensive Plan.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. A public hearing has been held on the sale of the real property described in
Attachment A.
0
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2. That sale is subject to obtaining all the real estate interests necessary for the project
to proceed and the granting by the City Council of the appropriate zoning and
conditional use permit.
3. That the Chairperson and Executive Director are authorized to execute any and all
agreements required to effectuate this resolution.
4. That the Contract contains terms and conditions of the sale.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of August, 1998.
Thomas E. Harms, Chair
•
ATTEST:
Michael Sandahl, Secretary
)-y
A
ATTACHMENT A
Parcel A
Property Address: 710 Lake Shore Drive
Legal Description:
Lots 19, 20, 21, 22 and that part of Lot 23 described as follows: Commencing at a
point in the South line of Lot 23, distant 75 feet westerly from Southeast corner
thereof; thence West to Southwest comer thereof, thence North to Northwest
corner thereof; thence easterly to Northeast corner thereof; thence southerly
along the southeasterly line thereof to a point 44 feet northerly from Southeast
corner thereof; thence northwesterly 64 4/10 feet to a point 78 4/10 feet
northeasterly from beginning; thence southwesterly to beginning.
Parcel B
0 Property Address: 6724 Lyndale Avenue South
Legal Description:
That part of Lot 23, Block 3, Fairwood Shores, according to the plat thereof on
file in the office of the Registrar of Titles; Hennepin County, Minnesota,
described as follows:
Beginning at a point on the Southerly line of said Lot 23, at a point 75.00
feet West, measured along the South line of said Lot 23, from the southeast
corner thereof; thence East along the South line of said Lot 23, a distance
of 75.00 feet to the Southeast corner thereof; thence Northeasterly along the
East line of said Lot 23, a distance of 44.00 feet; thence Northwesterly a
distance of 64.40 feet to a point distant 78.40 feet Northeasterly from the
point of beginning; thence Southwesterly a distance of 78.40 feet to the
point of beginning.
Together with all rights in and to any and all streets and alleys adjacent thereto,
vacated or to be vacated, and together with any and all appurtenant easements.
it
A-1
a'5
Parcel C
Property Address: Unassigned
Legal Description:
That part of the full width of the alley (labeled Auto Lane on the herein described
plat) lying in Block 3, Fairwood Shores, according to the recorded plat thereof on
file in the office of the Registrar of Titles; Hennepin County, Minnesota,
described as follows:
That part of said alley in Block 3 lying northeasterly of Lots 19, 20, 21, 22
and 23, said Block 3, lying southwesterly of Lots 1, 2, 3, 4 and 5, said Block
3, lying southeasterly of the northeasterly production of the northwest line
of said Lot 19 and lying northwesterly of the northeasterly production of the
southeast line of said Lot 23.
Subject to continued use for public alley.
•
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