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10-20-97 agaendaCITY OF RICHFIELD REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS MONDAY, OCTOBER 20, 1997 7:00 P.M. AGENDA CALL TO ORDER APPROVAL OF MINUTES OF REGULAR HRA MEETING OF SEPTEMBER 15, 1997 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATION OF STATUS REPORT BY MAIN STREET SHOPS PARTNERS RELATIVE TO THEIR PROPOSED REDEVELOPMENT OF 7600 BLOCK OF LYNDALE AVENUE HRA LETTER NO. 57 3. CONTINUED CONSIDERATION OF REQUEST BY RICHFIELD FLORAL AND NURSERY TO WAIVE CERTAIN DEVELOPMENT REQUIREMENTS AND DEFER PAYMENT OF SALE PRICE OF 817 EAST 66TH STREET HRA LETTER NO. 58 4. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 6820 PORTLAND AND 7025 NICOLLET AVENUES UNDER RICHFIELD REDISCOVERED PROGRAM HRA LETTER NO. 59 5. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION REGARDING SALE OF 6432-15TH AVENUE HRA LETTER NO. 60 6. CONSIDERATION OF RESOLUTION AUTHORIZING EARLY CONSTRUCTION ACTIVITY FOR PHASE II PROPERTY AND REDUCTION IN LETTER OF CREDIT; MERIDIAN CROSSINGS PROJECT HRA LETTER NO. 61 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 861-9702. ~N~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 61 Agenda October 20, 1997 Issue Statement: Consideration of a request by Meridian Properties Real Estate Development LLC (TOLD Development Company) to allow- certain construction activity on Phase I I property and reduce the amount of its Letter of Credit by $89,626 for the Meridian Crossings Office Project. Background: Ralph Robinson, President of TOLD Development Company, recently met with staff and legal counsel to indicate that. he is ready to proceed with footings and foundation work for the Phase II office building and parking ramp. TOLD is progressing in its leasing efforts and currently is negotiating with a potential tenant for Phase II. Final closing issues for the Phase II land sale are still being reviewed by staff, legal counsel, and TOLD. Closing could occur within the next several weeks. Until that time, TOLD would like to undertake the proposed site work as soon as possible. The attached letter from TOLD outlines the current outstanding costs of the Phase II construction activity that may be potential liens against the Phase II property. Please note that the total cost of $405,667 includes the curb, gutter, and paving work related to the construction of the driveway to the CSM site through Phase I of Meridian Crossings. Recommended Motion: Adopt a resolution authorizing a reduction in the Letter of Credit by $89,626 and the Executive Director to enter into an agreement with TOLD to allow footings and foundation work to commence on Phase II property prior to the land sale closing. The HRA continues to hold a $495,293 Letter of Credit as performance and payment security to cover possible liens against Phase II. Since the Letter of Credit exceeds the amount of security necessary to protect the. HRA, TOLD is requesting that the Letter of Credit be reduced by the difference, or $89,626. The proposed, reduced Letter of Credit in the amount of $405,667 would continue to provide adequate security to the HRA for Phase II site work until time of closing. Basis of Recommendation: 1. TOLD Development has requested a reduction in the Letter of Credit based on additional, pre-closing construction activity for Phase II, Meridian Crossings. 2. Staff has reviewed the request and is of the opinion that TOLD's request to reduce the Letter of Credit by $89,626 and begin pre-closing construction activities is reasonable. • 3. The new Letter of Credit in the amount of $405,667 is sufficient to secure the HRA's interests prior to the Phase II land sale. Alternative Recommendation: 1. Delay consideration of the reduction in the Letter of Credit. 2. Deny the release reduction in the Letter of Credit. 3. Propose an alternative to TOLD's request. Discussion/Decision Mode: HRA support will facilitate TOLD's construction schedule of the Phase II office building and parking ramp prior to the Phase I I land sale closing. Respectfully submitted, Jame .Prosser Executive Director JDP:cak • • HRA RESOLUTION NO. RESOLUTION AUTHORIZING EARLY CONSTRUCTION ACTIVITY FOR PHASE II PROPERTY AND A $89,626 REDUCTION IN LETTER OF CREDIT, MERIDIAN CROSSINGS PROJECT WHEREAS, Meridian Properties Real Estate Development LLC (Meridian) is the developer under the Contract for Private Development with the HRA dated November 6, 1.995 and subsequently amended; and WHEREAS, pursuant to the Third Amendment to the Contract for Private Development dated April 21, 1997 and the Right of Entry Agreement dated February 18, 1997, Meridian provided the HRA with two letters of credit in the aggregate amount of $600,000; and WHEREAS, on or about July 30, 1997, Meridian extended one Letter of Credit (in the face amount of $495,293) to November 30, 1997 and further has authorized the HRA to withhold $105,000 of the funds due Meridian as additional security; and WHEREAS, on September 15, 1997, the HRA authorized release of the $105,000 due Meridian as additional security based on construction activity progress; • and WHEREAS, on or about October 13, 1997, Meridian requested that footings and foundation work commence on the Phase II property prior to a land sale closing and conditioned upon the HRA continuing to retain proper performance and payment security for any and all lienable work to be performed on Phase II property prior to a land sale closing; and WHEREAS, Meridian acknowledges that the Letter of Credit now on file with the HRA exceeds the revised list of costs that could be potential liens against the Phase II property; and WHEREAS, Meridian requests that the Letter of Credit be reduced by $89,626 to properly reflect the amount of performance and payment security necessary to undertake pre-closing construction activity limited footings and foundation work, and remaining curb, gutter, and paving work. NOW, THEREFORE, BE IT RESOLVED by the HRA as follows: 1. The Letter of Credit in the face amount of $495,293 with an expiration date of November 30, 1997 is hereby reduced by $89,626 for a new face amount of $405,667 and is accepted as full and adequate security for the obligations described in the Third Amendment and the Right of Entry Agreement, and for the additional footings and foundation work on Phase II property and are available for use by the HRA in the same manner as the security described therein. . 2. Meridian shall continue to extend the Letter of Credit beyond the current expiration date until relieved of the obligations by proper action of the HRA or until a closing on the Phase II land sale is completed. 3. The Executive Director is authorized to enter into an agreement with Meridian in order to effectuate the limited, pre-closing construction activity for Phase I I. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of October 1997. Thomas E. Harms, Chair • ATTEST: Michael Sandahl, Secretary • 1 1 L.L I V'J . La_ i 1 1 i v v l 1 +J ' ~~ 1/ I V:.~L' L~ ~ ._a_.v~ ~ ~ ~~~ DEYELpPMElY7 COMF''11YY Ocwber 13, 1.997 Ms. Katia Medvetski Redevelopment Spec:iatist City of Richfictd Community uevelapment 6700 Portland Avenue Richfield, MlV 55423-2599 Rc: Letter of Credit VIA FACSlMlLE+~Bd1-897.1 Dear Katia: Below is a summary of tl>e costs we discussed with John Dean relative to Phase ft at Meridian Crossings: Curti, Cutter & Paving 6] ,667 Excavaticm, Grading 59,000* Foundation Wnrk ~$~9~ 405,667 Existing Letter of Credit q3 Requested Reduction 89,626 # (re~nuinc cif ter current puy applicutivn) It will be appreciated if you can request the HRA to reduce our existing Lette r of Credit by the $89,626.00 at their next regularly schedated meeting. Please cast me if you have any questions. Sincerely, alph ~. obinson Chairman ItUR:djm • M~N1YlrwPOLIS • MILWAUKEE • CMIC1lG0 WEUGWUC~D CilMMERCE Ck1YTRE • hgUO Wetlpwood Ruad. Suite IOR. Maple Grovt, MN 35311 • (6!2? 420.9000 Fax (5121420.7574 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 60 Agenda October 20, 1997 Issue Statement• Public hearing and consideration of resolution regarding the sale of 6432-15th Avenue. Background: The construction project at 6432-15th Avenue was authorized by the HRA as a cooperative project with Hennepin Technical College (HTC). The project is completed, and a sale is anticipated by the end of October. The selected purchaser is a three member, income qualified family seeking to live in Richfield. Presently, the family is renting an apartment in Burnsville. They meet the requirements stated in Attachment A. A public hearing and HRA authorization for the sale of the property are required prior to closing. The purchaser has applied for an FHA mortgage. The difference between the estimated market value of $120,000, and the initial purchase price of $95,000 ($25,000) is provided by the HRA as a second mortgage. Project costs are covered by the buyer's down payment and first mortgage. The second mortgage accomplishes the following: 1. Makes the initial purchase price affordable. 2. Prevents a speculative purchase in which the buyer might benefit from selling the home quickly. The HRA will not need to pay any points for mortgage discounting since the buyer will have a reasonable interest rate of 7.7 percent. The HRA will pay the cost of title insurance (approximately $200) at closing. After closing, the HTC contract of $83,025 will be paid. These costs have been anticipated in the budget and will be paid from the proceeds of sale. If, during final qualifying, the family is found ineligible by the lender, the purchase agreement is void, and earnest money will be released. At this time, however, the lender has qualified the purchaser through preliminary processing. Recommended Motion: It is recommended that following the public hearing, the HRA adopt the attached resolution which authorizes the disposition of the HRA owned property at 6432 - 15th Avenue. • Basis of Recommendation: 1. A qualified family has been identified as a purchaser and meets program requirements. 2. A purchase agreement cannot be processed further by the lender without HRA authorization of sale. 3. A public hearing notice has been published in the Sun-Current which allows the HRA to consider the sale at the October meeting. 4. The Planning Commission has determined that the sale for residential purposes is consistent with the Comprehensive Plan. 5. The house is completely finished. The HRA had an opportunity to inspect the completed work during an open house that was held on July 21, 1997. Alternative Recommendation: Do not adopt the resolution. However, this would cause a delay in the sale of the property, be confusing to the buyer, and would increase HRA holding costs. Discussion/Decision Mode: Authorization of the sale is required at the October 20, 1997 meeting so that the buyer can finalize mortgage financing for a prompt closing. • Respectfully submitted, James .Prosser Executive Director JDP:cak I"~ HRA RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6432-15TH AVENUE WHEREAS, the Housing and Redevelopment Authority (HRA), owns certain real property located~at 6432-15th Avenue, legally described as Lot 9, Block 3, .Nokomis Gardens Rearrangement of Blocks 1, 2, 3, 4, and 5 Girard Parkview; and WHEREAS, the HRA acquired the property so that Hennepin Technical College (HTC) could construct a new single family home at 6432-15th Avenue, to be sold by the HRA to a moderate income family; and WHEREAS, the Crawford family has been identified as qualified purchasers for 6432-15th Avenue; and WHEREAS, the conditions of the sale include a total sales price of $120,000; an FHA first mortgage of payable to the lender; a lien of $25,000 payable to the HRA and $2,000 earnest money; and WHEREAS, the sale of 6432-15th Avenue may be authorized by the HRA following a public hearing which considers the disposition of the property; and WHEREAS, that hearing has been held following proper publication of notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota that the HRA Chairperson and Executive Director are authorized to execute the purchase agreement and other required documents so that the disposition of HRA owned property at 6432-15th Avenue occurs as presented herein. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of October, 1997. Thomas E. Harms, Chair ATTEST: .Michael Sandahl, Secretary ATTACHMENT A 6432-15th Avenue New Home Program Eligibility Requirements for Home Buyers • Have a three to six member family (a family is defined as person related by blood, marriage or operation of law). • Be a first time buyer (or not having owned in three years). • Have the following maximum annual income depending upon family size: Family Size Maximum Income 3 $39,150 4 $43,500 5 $47,000 6 $50,450 This income is 80% of the metropolitan area median income -- an accepted CDBG program income level. Have the ability to make monthly payments on a mortgage, pay down and pay closing costs required of the buyer. • Agree to be subject to a lien by the HRA for the difference between the initial sales price and the actual value. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 59 Agenda October 20, 1997 Issue Statement: Adoption of a resolution authorizing the purchase of 6820 Portland and 7025 Nicollet Avenues under the Richfield Rediscovered Program. Background: The property at 6820 Portland Avenue is a small house that the owner has tried unsuccessfully to sell on contract for deed on more than one occasion. The house is in severe need of interior repairs and updating. The plumbing,- electrical and heating systems are all old and substandard. A rear porch, converted to a den, is not habitable because of poor construction and no heat. This property was appraised at $67,000; however, the owner is willing to sell for $60,000 due to the extensive repairs. The house is currently vacant. The property at 7025 Nicollet Avenue is a 660 square foot house in need of significant updating. It has been well maintained as a rental property for some time. However, all systems are in need of updating, including heating and electrical systems. Due to the increasing property values in Richfield, even the small, outdated properties command a higher value. The property was appraised at $68,000. by BCL Appraisals. The owner had previously secured an appraisal from Newcombe and Hansen Appraisals, Inc., which determined the property's market value to be $.70,000. The average value of $69,000 was agreed upon as a sale price. This house is also vacant. Recommended Motion: Adopt the resolution authorizing: 1. The purchase of the property at 6820 Portland Avenue for $60,000. 2. The purchase of the property at 7025 Nicollet Avenue for $69,000. 3. The HRA Chairperson and Executive Director to execute purchase agreements and other documents to effectuate the purchases. Basis of Recommendation: 1. The properties meet program requirements for acquisition. 2. Funding for Richfield Rediscovered acquisition is available. 3. The owners have voluntarily expressed interest in selling the properties to the HRA, and the properties are vacant. 4. The purchases have been negotiated relative to appraised values. Alternative Recommendation: Do not authorize acquisition. Discussion/Decision. Mode: The purchase agreements are ready to be prepared in final form. Respectfully submitted, James .Prosser Executive Director JDP:cak HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6820 PORTLAND AND 7025 NICOLLET AVENUES 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 attached; 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 all program requirements for acquisition; and WHEREAS, the HRA has caused an appraisal of the subject property to be made by a qualified, independent professional real estate appraiser and has a negotiated purchase price with the owner based on stated values; and WHEREAS, funds have been provided by the HRA and are available for acquisition. NOW, THEREFORE, BE IT RESOLVED, by the Richfield Housing and Redevelopment Authority: 1. The purchase price for 6820 Portland Avenue is approved at $60,000. 2. The purchase price for 7025 Nicollet Avenue is approved at $69,000: 3. The Chairperson and Executive Director are authorized to execute a Purchase Agreement or other documents to allow purchase for the amounts set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of October,. 1997. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • LEGAL DESCRIPTIONS 6820 Portland Avenue The East %2 of the following described tract: That part of the Northeast 1/4 of the Southeast'/4 of the Southeast 1/4 of Section 27, Township 28 North, Range 24 West of the 4th Principal Meridian described as follows: Beginning at a point on the East line of said tract 278.15 feet South of the Northeast corner thereof; thence West parallel to the North line of said Northeast I/4 a distance of 330.92 feet; thence South parallel to the East line of said Northeast'/4 a distance of 49.58 feet; thence East to a point in said East line a distance of 49.63 feet South of the point of beginning; thence North along said East line a distance of 49.63 feet to the point of beginning except the Easterly 33 feet thereof. 7025 Nicollet Avenue The North 58 feet of -South 268 feet of East 148.8 feet of West 181.8 feet of Northwest'/4 of Northwest 1/4 of Northeast 1/a except alley, Section 34 Township 028 Range 24 • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 58 Agenda October 20, 1997 Issue Statement: Continued consideration of a request by Richfield Floral and Nursery to waive certain development requirements and to defer payment of the sale price of 817 East 66th Street. Background: In September, representatives of Richfield Floral- and Nursery made a presentation to the HRA regarding the status of their proposal and their concerns about higher than anticipated construction costs. Richfield Floral and Nursery was looking for a reduction in land price, possibly a complete write down, and was also requesting that certain proposed improvements be deleted from their plans. The HRA indicated that there would be no reduction in the land price but that a deferral of payment would be considered. Richfield Floral and Nursery was then directed to come back in October and present a specific request to the HRA. Staff has since had discussions with Richfield Floral and Nursery about the deferral option and other possible changes to .their plans. At this writing, the details of the deferral plan are not available. Also, they are seeking additional bids and contacting other possible lenders. As a result, they are not in a position to present a specific request at this time. Recommended Motion: Direct staff to continue to work with Richfield Floral and Nursery on a payment deferral plan along with other possible plan modifications, and to present to the HRA in the form of a specific request no later than the December 15, 1997 HRA meeting. Basis of Recommendation: 1. The HRA had previously directed staff to work with Richfield Floral and Nursery on a payment deferral agreement. 2. Richfield Floral and Nursery is currently seeking new bids and further cost reductions for their project but will not receive the new bids until sometime in November. 3. Richfield Floral and Nursery is exploring financing options with various lenders. Alternative Recommendation: Direct staff to begin seeking alternate developers for the site. Discussion/Decision Mode: The HRA's selection of Richfield Floral and Nursery as possible developers for this site was open-ended and did not include a specific performance schedule or deadline for closing on the property. Should the HRA choose to provide Richfield Floral and Nursery with additional time to prepare a proposal, the inclusion of a specific stipulation regarding a performance schedule or a deadline for reaching an agreement may be warranted. Respectfully submitted, Jame .Prosser Executive Director JDP:cak HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 57 Agenda October 20, 1997 Issue Statement: Consideration of a status report by the Main Street Shops Partners relative to their proposed redevelopment of the 7600 block of Lyndale Avenue. Background: In August, the HRA directed staff to work exclusively with the Main Street Shops Partners to refine their plan and negotiate a redevelopment agreement. Of the three competing proposals, the Main Street Shops Partners' plan was considered to be the one that best met the City's objectives and visions for the area. Among other components, the plan included amulti-story retail and office building which was to be occupied by DataSource Hagen. The inclusion of this large building is what made the plan work economically. The Main Street Shops Partners also had an alternate plan which the HRA did not support due to the large amount of additional funding (over and above the available TIF) that it would have required. Because it has now been nearly two months since the HRA directed staff to work exclusively with this group, Main Street Shops Partners, has been requested to provide • a written status report and present it to the HRA at the October meeting. A copy of the report is attached. Recommended Motion: Direct staff to continue working with the Main Street Shops Partners for three more months in an effort to refine their development plan and negotiate a redevelopment agreement. (If, at the end of that period, a redevelopment agreement is not in place, the HRA may provide additional time to negotiate an agreement, or it may direct staff to discontinue discussions with the Main Street Shop Partners and seek alternate development proposals). Basis of Recommendation: 1. Of the three development proposals which were previously presented to the HRA, the Main Street Shops Partners' plan would best meet the City's development objectives for the area and would be, based on preliminary financial analysis, economically viable. 2. With DataSource Hagen no longer involved in the project, the developer needs time to pursue other tenants or buyers. 3. The Main Street Shops Partners appear to be making a good faith effort to advance their project. Alternative Recommendation: Direct staff to discontinue discussions with the Main Street Shops Partners and to establish a set of development criteria based on the most desirable elements of the various development proposals and to seek other developers for this area. Discussion/Decision Mode: Representatives of the Main Street Shops Partners will be in attendance at the October 20 HRA meeting to review and discuss the status of their project. Respectfully submitted, Jame .Prosser Executive Director JDP:cak • Tushie Montgomery Associates Inca Archit¢ets o Landscape Architects Interior Designers o Space Planners 3300 Edinborough Way, #601 Minneapolis, Minnesota 55435 612-830-8208 ~ Fax: 830-8215 ~ ~ 3 ~ ~ ! l y t ~ Se 'embe r 30, 199 ~ ~ i ~ ~ - ~ ~~_~ n: _~~ j Me m i I ~ $ ~ 1 ` ~ ~ ~ 1 o~ C~`o;inmu~i _ ~'I7~veropm ~ ~l' M~a n~g r ~ ~ ~ i ~ ~ ~- - ~ ~ Eity-o1`l~i chfiel ,. i i I! I i t f ~ ~ 1 ~.~- ~ `' ?-OQ-Por-t ± ~and Avenue I ' , ~ ~ ~ ; j i I ~ i .off ~ ~ , , RE Mai n S reet Sho s o f dal e ~ ~ ~ ~ i i i ' I 1 1 ~ i ~ ~ ? ~ ~ ~ ~ ~ ~ ~ ~ ! ~ ~ ~ D.e Ia~..JQ_ _ ' l I ~ i 1 I ~ ? ~ ~ I I f i ~ ~ ~ i a ~ I I . ~~ ~ '•: ! ~ ; ~ I As you requesters l etter s hall pr ovi de y oui.with an upd ate of t he acti vities the, parlnershp li ar I '. ~ i - 1 ~ F ~eeninvolved miover t ie fas 3(~ ~ay;. s f ©r t he a oye yefecen ced pro ~ect. I ~ # i I _ Y f ~ ' ~ i I ~ ~ ~ 1 ! i OrrSeptember9 •199- e"partnerslup f ~ ~ ~ ~ ~ i ~ I et"tordYSCUSS-the-staters- Ji i ~ 1 } ~ ~ i i ~ ofData-SourcefE3agen-and-th ~' 1 I I ~ I ~ involvemen~in-the- ro ee~--Data}. Sourc P a e err-wa ~-unable-tct-ex ~ tend-tleir current-lease; in-th ~~ I I eir I ~ e i ~ . .Edina-fac.~it}~past.the=~xpiratron-date-o ; t ~, - f-March-3-~)`998-J')'he3~-o ~ .;. + I rrgrnall-y=though~tle} ;might-fi b ~ I i i i , - 3 , 1 .~.lzle~o~.ez~ea~.d.~tbe 1.eas~.untiLiune 1_f 1. ~ I I 1 1 1~ mutuall eed~ we could not meet th 9 :etang~titlith ! 1 ! eir schedule loch now l~ elZata~ourceQ3agen~peop~e I I l I! I ad~become excelerated. In an i effortto kee them in Riclif~eld, we;pu w -p sued putti w n ng; em qn the ~ .ampbprt~,umber site. We met d tit i i S ff h e - ~ ~ iand ro osed asite 1, sh with F ~ p, P; P F~A a d ~ e ~ i" i proposa witlthe lio i g eer they could ertili ~ ~ ha~' ey ; r ~ro ewe re ~ rev ta e s te. ze t j wan ~ o pursue a use o # ~ ~ ~ I ~ # f , i ancrng"ori"this-sr~ 'nczerrr'ent~f sta~? ~p~ored-sellmg-r t"w~ tlrout{city'~as~rstance~Da i , ~ 1 ~ ~ n 5ource/PIageu-is~ cuirentlypursuing-opt ions-rn-thr ee~otliercmes:-l Bloomington; Eden-Prairie-and ; !( i i I j s ( I I Bd' I i . j ~ ~ ~ ~ i Based _a Op tr fii1S, th would remain retai e p at~ fer the fir ecide t st level a o p~r~ue nd a Med r d ical al: rn Offic ~te,~.R1_3 e Build rr fir t~e~. _ _F~tBuildi.*eg,~!~ich in { above. ,aVe have received - fairly strong res ons es forthis use fro real estat e br okers and potential tenants. ~ ~ { ~ I j ' ~ - I " ~ 1~._ ~ i v ~ I ~, i i ~ 1 I ' i ed ~ cond"uct e wo r h / lo I i s_,_. j arso decided; to obtam the services The paid rs ; o ; a de e o o p e w per # ~ i -~ --y ~ --~ S I ; ~ i C ! clay; totday-activities-of the-develflpment-process -aa I though s ( ; -tlie-partners-woul$-remaw-active-: ~; 1 - 9 i ~ ~ ~ I t --vuell ~~e .sen~.;outi-development=requests-foi;-p ~ ' ~ 1. rop i~ osals-t i i o-seven-potential-developers-=-Their ~ _ r ~ i i proposals Oar due Selztemt ~ ~ i I ~ i ~ ~ i 1 I ; ~ ~ ~ ~ ~! ~ I ~.~ ! I - j ' We;have also; requested and. receved.proposals fr om appraisers... ' e ntend;to fiire ani appraiser to i O dal A e e f L t ~ 1 j ~ ,~ I , I t place a value on a1F the parcels on bot, .the ~ ~? __.t~- ~ an nce we, nu e v .. ~ yn sides o d Wes ~ , • ~ I ~ 7 " _ ~ -have received the property va ues~ we p arn: i 1 ! i ~ ~ ap 1 owners a; ou signing i proac a prope ! ' ~ ~ i ~ T I _ --purchase-agreemen 11 i i i! I i ?' I ! 1 1 ~~ t i?~~ ~ ~ .~ i ` ; ~~ ~ i ; 7 } I i ,' ~ 9 i ; ~ ~ ~ i i } t ' I i i i i 3 " - i { ' f i ~ ! } ~ ~ I I i . ~ ~ ~ 1 ~ i ~ f r I 1 ~ -----^----•• i i ~ ~ i ~ I ~ I ~ ~ ` f ~,- .._ __ _ - f I I i i i k 1 y ~ ~ i - ~ ...._._ -_.... ~_.... .~~~-a..-__.__..~. ~ { ...-..._ i - ' ~ + I I r __ lin John Me City of Richfield Main Street-Shops of Lyndale September 30,199T page 2 of 2 The partners are meeting on_,September 30 to discuss all of these. items as well as our upcoming 'development activities. We would be happy to update the HRA on all of these activities at the October 20, 1997 HRA meeting.. Sincerely, . TUSHIE-MONTGOMERY & ASSOCIATES, INC. Gary Tushie, President CC: Bob Dieke Pat O'Brien Fred Ryan Steve Sawitske