01-21-97 agenda~w
CITY OF RICHFIELD, MINNESOTA
TUESDAY, JANUARY 21, 1997
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF DECEMBER 16, 1996
1. OATH OF OFFICE TO HRA COMMISSIONER KRISTAL STOKES
2. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE
AGENDA
3. ELECTION OF OFFICERS FOR HOUSING AND REDEVELOPMENT AUTHORITY
FOR 1997
HRA LETTER NO. 1
4. DESIGNATION OF ACTING EXECUTIVE DIRECTOR FOR 1997
HRA LETTER NO. 2
5. CONSIDERATION OF RESOLUTIONS DESIGNATING OFFICIAL DEPOSITORIES
FOR HRA FOR 1997, INCLUDING APPROVAL OF COLLATERAL
HRA LETTER NO. 3
6. DESIGNATION OF OFFICIAL NEWSPAPER FOR 1997
HRA LETTER NO.4
7. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7415 THIRD
AVENUE AND 6633 WASHBURN AVENUE UNDER THE RICHFIELD
REDISCOVERED PROGRAM
HRA LETTER NO. 5
8. EXECUTIVE DIRECTOR REPORT
9. 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.
HOUSING AND. REDEVELOPMENT AUTHORITY
HRA Letter No. 1
Agenda January 21, 1997
Issue Statement:
Election of officers for the Housing and Redevelopment Authority for 1997.
Background:
The bylaws of the Richfield Housing and Redevelopment Authority provide that the
HRA hold an annual meeting in January of each year. The bylaws further provide that
the Chair, Vice Chair and Secretary of the. HRA be elected at this meeting.
Officers for the years 1995 and 1996 are as follows:
1995
Thomas Harms, Chair
Joan Helmberger, Vice Chair
Vern Luettinger, Secretary
1996
Thomas Harms, Chair
Joan Helmberger, Vice Chair
Vern Luettinger, Secretary
Recommended Motion:
Elect officers for the HRA for 1997.
Basis of Recommendation:
The bylaws of the HRA require that such an election be held at the annual meeting in
January of each year.
Alternative Recommendation:
Do not hold the election. However, this would be in contradiction to the HRA bylaws.
Discussion/Decision Mode:
This item has been scheduled for the January 21, 1997 HRA meeting in accordance
with the HRA bylaws.
Respectfu submitted,
Jams .Prosser
Exec ve Director
JDP:cak
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No.2
Agenda January 21, 1997
Issue Statement:
Designation of Acting Executive Director of the HRA for 1997.
Background:
On January 2, 1997, the City Council appointed the Director of Administrative Services
to serve as the Acting City Manager in the absence of the City Manager.
Since the City Manager also serves as the Executive Director of the HRA, it is
recommended that the Administrative Services Director, Steven, Devich,. be designated
by the HRA as the Acting Executive Director of the HRA to serve in that capacity during
the absence of the Executive Director.
Recommended Motion:
The HRA designate Steven L. Devich, Administrative Services Director, as the Acting
Executive Director of the HRA for 1997.
Basis of Recommendation:
1. Designation of an Acting Executive Director is a normal business action of the
HRA similar to the designation of depositories and the official newspaper.
2. The Administrative Services Director has been designated as the Acting Executive
Director in the past.
3. The Administrative Services Director serves as the Acting City Manager, filling
other similar responsibilities for the City Manager in the Manager's absence.
Alternative Recommendation:
1. Make no designation of Acting Executive Director.
2. Make the designation of Acting Executive Director to another individual or
position.
Discussion/Decision Mode:
Designation of the Acting Executive Director is a matter that would normally be
considered at the first business meeting of each year.
Respe tfully submitted,
Jam D. Prosser
Executive Director
JDP:cak
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 3
Agenda January 21, 1997
Issue Statement:
Resolutions designating official depositories for the HRA of Richfield for 1997, including
the approval of collateral.
Background:
In accordance with Minnesota Statutes Section 475.66-and 118.005, the. HRA of
Richfield must annually establish financial institutions which. have pledged the
necessary collateral over and above the amount of federal insurance, as public
depositories. The Firstar Bank is pledging collateral in the amount of $1,625,000. This
collateral pledge means that the HRA's deposits up to this amount are secured with the
depository. In addition to this collateral pledge, HRA funds are protected by the Federal
Deposit Insurance Corporation in the amount of $100,000, making the total protection
afforded by this depository for HRA funds equal to $1,725,000. A resolution naming the
Firstar Bank as the 1997 official depository for the Richfield Housing and
Redevelopment Authority is attached to this letter.
In 1996, Firstar Bank has a community reinvestment rating of "satisfactory." Within
Richfield, Firstar Bank has supported remodeling programs and made various cash
.donations in support of City and HRA programs.
A resolution must be provided annually, designating certain savings and loan
associations and banks as official depositories for investment of certain HRA funds.
With approval of these official depositories, the HRA will be able to invest funds in these
institutions, not exceeding the federal insurance of $100,000. All designated
depositories have received a community reinvestment rating of "satisfactory" or better in
1996.
Finally, a resolution is also attached which designates certain financial institutions as
depositories for the investment of HRA Funds for 1997. These institutions, such as
investment brokerage firms offer government securities in the manner required by law.
These financial institutions include Richfield Bank and Trust Co., FBS Investment
Services Inc., Dain Bosworth, Norwest Investment Services, and Juran & Moody, Inc.
Recommended Motion:
It is recommended that the HRA adopt the attached resolutions designating official
depositories, with the understanding that the HRA could not invest in any of the
depositories beyond the level of insurance coverage of the pledged collateral.
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Basis for Recommendation:
1. It is recommended that the HRA adopt the attached resolutions designating official
depositories, with the understanding that the HRA could not invest in any of the
depositories beyond the level of insurance coverage of the pledged collateral.
2. The HRA has worked with the institutions recommended in the past and has found
to have a good working relationship with these institutions.
Alternative Recommendation:
The HRA could solicit other financial institutions for official depositories, but past
relationships with the depositories recommended have proven satisfactory for the HRA.
Discussions/Decision Mode:
Action of the HRA is desirable at January 21, 1997, HRA meeting so that the HRA may
invest funds in the approved financial institutions for the year 1997 immediately.
Respectfully submitted,
Ja ' s D. Prosser
City anager
JDP:cak
HRA RESOLUTION NO.
RESOLUTION DESIGNATING THE FIRSTAR BANK A DEPOSITORY
OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY FOR
RICHFIELD FOR THE YEAR 1997 AND APPROVING COLLATERAL
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
follows:
That, in accordance with law, the Firstar Bank be, and hereby is designated a
depository of the funds of the Housing and Redevelopment Authority, and subject to the
following terms and conditions:
The said depository shall not be required to give bonds or other securities for such
deposits provided that the total sum thereof shall not at any time exceed in any
depository the sums for which its deposits are insured under the Acts of Congress of the
United States relating to insurance of bank deposits; but not in case such deposits in any
such depository shall at any time exceed such insured sum, said depository shall
immediately furnish bonds or other security for such excess according to law, approved
by the Housing and Redevelopment of Richfield.
That said depository shall pay on demand all deposits therein; and shall pay all
time deposits, at or after the end of the period for which the same shall be deposited, on
demand.
BE IT FURTHER RESOLVED, that there shall be maintained a general account in
which shall be deposited all monies. Checks on this account shall be signed by the
following officers or their facsimile signatures:
THOMAS E. HARMS, CHAIRMAN
JAMES D. PROSSER, EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that there shall be a daily interest savings account.
All withdrawals from said account will be for transfers to the general checking account.
BE IT FURTHER RESOLVED, that collateral in the amount of $1,625,000,
deposited for safekeeping at the Firstar Bank -Milwaukee, Wisconsin is hereby
approved.
Passed by the Housing and Redevelopment Authority of Richfield, Minnesota this
21st day of January, 1997.
Thomas E. Harms, Chairman
ATTEST:
Vern Luettinger, Secretary
HRA RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1997
WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for
investment; and
WHEREAS, different financial institutions offer different rates of return on investments; and
WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase U. S. Treasury
Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the
institution offering the highest rate to the Housing and Redevelopment Authority providing greater
flexibility in the investment program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield,
Minnesota, as follows:
It is hereby found and determined that it is in the best interest of the proper management of
Housing and Redevelopment Authority funds that certain financial institutions be designated as
additional depositories for Housing and Redevelopment Authority funds for 1997.
2. The following financial institutions designated as depositories for Housing and Redevelopment
Authority funds:
FBS Investment Service, Inc.
Richfield Bank and Trust Company
Dain Bosworth, Inc.
Norwest Investment Services
Piper, Jaffrey & Hopwood
Juran & Moody, Inc.
3. The Treasurer and Finance Manager are hereby authorized to deposit Housing and
Redevelopment Authority funds in any or all of the depositories herein designated.
Such deposits may be made and withdrawn from time to time by the Treasurer or
Finance Manager s his best judgment and the interests of the Housing and
Redevelopment Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution shall
be conducted in accordance with established policies regarding the investment of
these funds.
Passed by the Housing and Redevelopment of Richfield, Minnesota this 21st day of January, 1997.
Thomas E. Harms, Chairman
ATTEST:
Van Luettinger, Secretary
HRA RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN
ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT
OF THE HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1997
WHEREAS, pursuant to Minnesota Statutes, Section 475.66 and 118.005,
municipal funds may be deposited in any Savings and Loan Association which has its
deposits insured by the Federal Savings and Loan Insurance Corporation; and
WHEREAS, the amount of said deposits may not exceed the Federal Savings
and Loan Insurance Corporation insurance covering such deposits which insurance
amount is presently $100,000; and
WHEREAS, the deposit of Housing and Redevelopment Authority funds in
Savings and Loan Associations and Banks would provide greater flexibility in the
Housing and Redevelopment Authority's investment program. and maximize interest
income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
Savings and Loan Association and Banks be designated as additional
depositories for Housing and Redevelopment Authority funds for 1997.
2. The following Savings and Loan Associations and Banks are hereby
designated as additional depositories for Housing and Redevelopment
Authority funds:
Norwest Bank Minnesota, NA
6445 Nicollet Avenue South
Richfield, Minnesota 55423
Richfield Bank & Trust Company
6625 Lyndale Avenue South
Richfield, Minnesota 55423
Twin City Federal Banking and Savings
3330 West 66th Street
Edina, Minnesota 55435
3. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investment of the
Housing and Redevelopment Authority funds and that such designation is not
exclusive nor does it preclude the deposit of any Housing and
Redevelopment Authority funds in other officially designated depositories aof
Housing and Redevelopment Authority.
4. The Treasurer and Finance Manager are hereby authorized to deposit
Housing and Redevelopment Authority funds in any or all of the depositories
herein designated up to the amount of $100,000, or such other amount as
may be subsequently permitted by law, such deposits to be in the form of
demand accounts for Public Unit Savings Certificates purchased by the
Housing and Redevelopment Authority of Richfield, payable to the Housing
and Redevelopment Authority of Richfield on the signatures of the Treasurer
or Finance Manager.
Passed buy the Housing and Redevelopment Authority of Richfield, Minnesota this 21st
day of January, 1997.
Thomas E. Harms, Chairman
ATTEST:
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Vern Luettinger, Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 4
January 21, 1997
Issue Statement:
Designation of official newspaper for 1997.
Background:
The Richfield Sun-Current, published by Minnesota Sun Publications, has been the
.City's and HRA's official newspaper for many years.
Attached is a copy of a letter from Minnesota Sun Publications requesting that they be
designated the official newspaper for the City of Richfield for 1997. The 1997 legal
advertising rate is approximately 10% higher than the 1996 rate.
1 Column width
$1.20 per line for first insertion
$0.60 per line for subsequent insertions
The City will submit legal notices to the Sun Newspaper via modem, therefore qualifying
fora 10% rate discount.
Recommended Motion:
Designate the Richfield Sun-Current as the official newspaper of the Richfield HRA for
the year 1997.
Basis for Recommendation:
1. The paper is delivered to nearly all residences in the City, thereby providing City-
wide coverage of legal notices to residents.
2. The paper has served well as the official newspaper for many years.
3. The paper has expressed a desire to continue to provide this service.
4. The cost for legal publications is reasonable
Alternative Recommendation:
Not make a designation and request the City Clerk's office to check into using- another
publication, such as the Minneapolis StarTribune, however, this would be much more
costly.
Discussion/Decision Mode:
The HRA publishes legal notices on a frequent basis; therefore, this item has been
placed on the January 21, 1997 HRA agenda so that a designation can be made for
1997.
Respectfully submitted,
Ja es Prosser
Exe uti Director
JDP:cak
MINNESOTA
N
U
S
PUBLICATIONS
Sun•Current _ Sun•Post Sun•Sailor
December 11, 1996
Thomas Ferber
City Clerk
6700 Portland Ave. S.
Richfield, MN 55423
Dear City Council Members;
The Richfield Sun-Current would like to be considered for designation as the legal newspaper for the City
of Richfield for the year 1997.
We know that readership and price are two important factors you consider. Please note that no one else
reports local community news stories that directly affect peoples' lives like Minnesota Sun Publications.
Every week, we cover local community events, politics, sports, business, police reports, religion, as well
as arts and entertainment. Within our coverage area, our readership tops all other newspapers in market
penetration with 77% of all adults saying they have read the publication sometime during the past four
weeks.*.
The rate structure for legals effective January 1, 1997 will be:
1 column width - $1.20 per line for first insertion
$ .60 per line for subsequent insertions
Discounts are available depending on format sent.
Notarized affidavits on each of your publications will be provided with no additional charge. The
deadline for regular length notices is 2:00 p.m. the Wednesday prior to publication. For notices that are
six pages or more, the copy must be submitted an additiona124 hrs in advance.
Please no`afy us of your decision, and. we will send you details on deadlines, discounts and transmissicn
specifications. If you require more information to make your decision, please contact me or Meridel
Hedblom, our Legal Representative, at 896-4809.
We appreciate your considering the Sun-Current as the official newspaper for Richfield in 1997. It has
been a pleasure serving you and we look forward to a mutually beneficial working relationship in the
coming year.
Sincerely,
~~
L. M
Publisher and Chief Operating Officer
*Source: Suburban Mpls. Readership Study, Urban & Associates
69o®mingt®n Office: 7831 East Bush Lake Road • Bloomington, MN 55439 • Ph: (612) 896-4700
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 5
.Agenda January 21, 1997
Issue Statement:
Authorization of purchase of 7415 Third Avenue and 6633 Washburn Avenue under the
Richfield Rediscovered Program.
Backaround:
The property at 7415 Third Avenue has been identified for some time as a potential
purchase under Richfield Rediscovered. The 118.90 foot lot has a small substandard
house structure on it. The lot was purchased by a real estate agent who had the lot
divided into two 59 foot lots. The agent will sell the north lot to Steven Marlin Grant
Homes. The substandard house sits entirely on the south lot, which is being offered to
the HRA. The existing garage is primarily on the north lot, and removal will be the
responsibility of Steven Grant. The appraisal value of the 59 foot south lot is $59,000.
The property at 6633 Washburn Avenue is aone-and-a-half story house on a triple lot
with a potential for three 50 foot lots: The house and attached garage appear to
straddle the north two lots. The third lotlhaobso eter Doorways arehvery'narrow~the
has been well cared for, but is functiona y
half story has limited head room, and extensive updating would be required throughout
.the house. The owner is interested in selling and moving into a senior housing
development. This provides an opportunity for development of the three standard-sized
lots. The full property was appraised at $110,000. Based on acquisition and demolition
costs, this would result in a cost of less than $40,000 per lot.
The lots merit a market value of $30,000 each. Since the lots are on an alley, every
attempt should be made for garagh teach bulder/buyeh team would oeentlthfe garage
$28,000, with the understanding
to the alley without exception.
Recommended Motion:
Adopt the resolution authorizing:
1. The purchase of the properties at 7415 Third Avenue for $59,000 and 6633
Washburn Avenue for $110,000.
2. 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 acquisitions is available.
3. The owners have voluntarily expressed interest. in selling their properties to the
HRA.
4. Purchases have been negotiated at the appraised values.
Alternative Recommendation:
Do not authorize acquisitions.
Discussion/Decision Mode:
Agreements to purchase are ready to be prepared in final form.
Respe submitted,
;'
James D. osser
Executive irector
JDP:cak
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HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE
OF REAL PROPERTIES LOCATED AT
7415 THIRD AVENUE AND
6633 WASHBURN 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 properties being
described as follows:
7415 Third Avenue
The West 1 /2 of the South 59.45 feet of the North 267.8 feet of the West 1 /2 of
the Northwest quarter of the Northeast quarter of the Southeast quarter of
Section 34, Township 28, Range 24, Hennepin County, Minnesota. Subject to
an easement for road purposes over the West 30 feet of the above land as
shown Deed Document No. 945672.
6633 Washburn Avenue
Lots 17, 18 and 19, Block 7, Tingdale Bros. Lincoln Hills Addition
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, the properties meet all program requirements for acquisition; and
WHEREAS, the HRA has caused appraisals of the subject properties to be
made by a qualified independent professional real estate appraiser and has negotiated
purchase prices with the owners 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 prices are approved as follows:
Address Purchase Price
7415 Third Ave. $ 59,000
~~ 6633 Washburn Ave. $110,000
2. That the HRA Chairperson and Executive Director are authorized to
execute a Purchase Agreement and other documents to effectuate
purchases for the amounts set forth in this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 21st day of January, 1997.
Thomas E. Harms, Chair
ATTEST:
Secretary.
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