05-16-05 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
May 16, 2005
The meeting was called to order by Chair Harms at 7:00 p.m.
HRA Members
Present:
Thomas Harms; Sue Sandahl; Martin Kirsch; and Kristal Stokes.
HRA Members
Not Present:
Joan Heimberger.
Staff Present:
Steve Devich, Executive Director/Acting City Clerk; Bruce Palmborg,
Community Development Director; Bruce Nordquist, Housing and
Redevelopment Manager; John Stark, Assistant Community Development
Director; and John Dean, HRA Attorney.
Item 1
M/Kirsch, S/Sandahl that the followina HRA resolution be adopted. that it be spread in the
HRA resolution book and that it be made part of these minutes:
HRA RESOLUTION NO. 943
RESOLUTION APPOINTING CITY MANAGER STEVEN L. DEVICH
AS EXECUTIVE DIRECTOR OF THE HOUSING
AND REDEVELOPMENT AUTHORITY
Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 943 in HRA
Resolution Book NO.7.
HRA Meeting Minutes
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May 16, 2005
Item #2
The minutes of (1) Special Concurrent HRAlCity Council/Planning Commission
Worksession of March 21, 2005 and (2) Regular HRA Meeting of March 21, 2005 were approved
by unanimous consent.
Chair Harms thanked Assistant Community Development Director John Stark for all of his
service with the HRA and named the several significant redevelopment projects that Mr. Stark was
responsible for managing including the Best Buy Campus.
Commissioners Kirsch, Sandahl and Stokes all individually thanked Mr. Stark for his
excellent work with the HRA.
Item #3
M/Stokes, S/Kirsch to approve the aaenda.
Motion carried 4-0.
Item #4
A. Approved designating Bruce Palmborg, Community Development Director, as Acting HRA
Executive Director for 2005 S.R. No. 15
B. Approved resolution accepting assignment of Professional Services Agreement with
Conworth, Inc. from City of Richfield for land acquisition services in connection with Cedar
Point Project S.R. No. 16
HRA RESOLUTION NO. 944
A RESOLUTION ACCEPTING ASSIGNMENT OF A
CERTAIN CONTRACT FROM THE CITY OF RICHFIELD
This HRA Resolution appears as HRA Resolution No. 944 in HRA Resolution Book NO.7.
C. Approved resolution requesting City Council to call for public hearing on modification to
redevelopment plan for Richfield Redevelopment Project Area and referring modified plan to
Planning Commission S.R. No. 17
HRA RESOLUTION NO. 945
RESOLUTION APPLYING TO THE CITY COUNCIL
OF THE CITY OF RICHFIELD TO TAKE CERTAIN ACTIONS
WITH RESPECT TO THE MODIFICATION OF A REDEVELOPMENT
PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA
HRA Meeting Minutes
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May 16, 2005
This HRA Resolution appears as HRA Resolution No. 945 in HRA Resolution Book NO.7.
D. Approved Professional Services Agreement with Cornejo Consulting to conduct analyses of
Richfield Redevelopment Project Area S. R. No. 18
M/Sandahl, S/Stokes to approve the Consent Calendar.
Motion carried 4-0.
Item #5
Assistant Community Development Director Stark reviewed Staff Report No. 19 regarding
consideration of a Contract for Private Development with Ryan Companies, Inc. for redevelopment
of Cedar Point area. Mr. Stark described the major provisions of the development agreement and
specifically noted items that were changed from the previous agreement.
Mr. Stark stated that the major changes to the contract include:
. If closing on HRA property doesn't take place before July 1, 2006 then are-approval
may be done.
. Language clarifying how D.E.E.D. (Department of Employment and Economic
Development) funds would be used by Ryan Companies for the redevelopment.
City Attorney Dean stated that an entire Agreement Clause would be added.
Commissioner Sandahl asked about right of first refusal language.
Mr. Stark stated that the reason Ryan Companies requested the right of first refusal was
because a portion of their contribution to fund the intersection would be used to acquire right of
way. They were concerned that any remnant right of way that they partially funded would be sold
to a different developer, which they felt was unfair. He stated that this right of first refusal,
therefore, would apply to all of the right of way remnant parcels that Ryan Companies would
contribute to; these are both north and south of 66th Street.
Commissioner Sandahl asked about the project time line.
Mr. Stark responded that the City Council on Tuesday, May 24, 2005 will vote on the tax
abatement and a redevelopment plan approval in about 30 days.
Kent Carlson, Ryan Companies, will need to contact homeowners to acquire properties and
actual construction will likely not take place until early 2006.
Chair Harms stated that he believed that the contract before the HRA this evening is much
improved over the previous agreement and represents the best deal available.
Commissioner Kirsch stated that he supported the project and felt it was time to implement
this project, especially in light of the pending opening of the new runway at the Minneapolis-St.
Paul International Airport.
HRA Meeting Minutes
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May 16, 2005
MIStokes, SIKirsch to approve and authorize execution of Contract for Private Development
with Ryan Companies. Inc.. for redevelopment of the Cedar Point area pendinq minor
modifications by the HousinQ and Redevelopment Authority's leQal counsel.
Motion carried 4-0.
Item #6
Assistant Community Development Director Stark reviewed Staff Report No. 20 regarding
consideration of staff conducting a tax increment financing analysis for west side of Lyndale
Avenue and east side of Garfield Avenue north of 76th Street and draft Contract for Private
Development with developers John Laurent and Bill Schatzlein for consideration at a future HRA
meeting.
Bill Schatzlien development partner introduced the project concept being proposed for the
west side of Lyndale Avenue and east side of Garfield Avenue north of 76th Street. The project
anticipates three levels of condominiums over a level of retail. The condominiums would be more
of a traditional type rather than the loft type. The parking for residents would be under the building,
while surface parking will serve the retail portion.
Chair Harms asked what type of retail was envisioned.
John Laurent, development partner, responded that retail that supports the resident base
similar to a Cost Cutters or Starbucks would be envisioned.
Chair Harms asked what type of condo mix would be included.
Mr. Laurent stated that the cost would be $232/square foot, 18 one bedroom units, 18 one
bedroom plus den, 43 two bedroom units, and 6 three bedroom units. He stated the typical one
bedroom would be $225,000, a one bedroom plus den would be $260,000, a two bedroom would
be $275,000 to $300,000, and a three bedroom would be high $300,000s.
Chair Harms stated his concern for one-bedroom units. Mr. Harms said that it would be
difficult to convert the one-bedroom units to something else in the future if it became necessary.
Commissioner Sandahl suggested that the developer look at what sized units are selling at
Kennsington, etc.
Commissioner Stokes stated her concern that some of the small retail is getting over built in
Richfield.
Commissioner Kirsch stated that it has been a goal of the City Council to get something
done on these three parcels on Lyndale Avenue and feels that this is a good start.
Mr. Laurent felt that if the project proceeds the construction could start as soon as late
spring 2006.
HRA Meeting Minutes
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May 16, 2005
Assistant Community DeveloPIll~nt Director Stark cautioned homeowners in the area to not
get ahead of this project by anticipating the taking of their homes. He went on to state that the
process can be very time consuming. He stated that a letter would be sent to those people
potentially impacted.
Dick Franzmeier, 7532 Garfield Avenue, stated that all four homeowners affected by the
proposed project were present at the meeting.
Mr. Laurent stated that all businesses are willing to sell, but no terms have been agreed to.
MIStokes, S/Kirsch to direct staff to conduct a TIF analvsis of the site and to draft a
Contract for Private Development with developers John Laurent and Bill Schatzlien for
consideration at a future meetinQ bv the HousinQ and Redevelopment Authoritv.
Motion carried 4-0.
Item #7
Executive Director Devich reported that the City's Tax Increment Financing legislation for
the airport impacted east side of Richfield has passed with the Senate and House in the form of
their respective omnibus finance bills.
Item #8
MIStokes, S/Sandahl that the followinQ claims and pavroll be approved.
FIRSTAR BANK 4-18-05
Section 8 Checks: 107704 - 107839
HRA Checks: 27489 - 27523
$ 190,383.80
$ 96,175.57
FIRSTAR BANK 5-10-05
Section 8 Checks: 107840 - 107972
HRA Checks: 27524 - 27544
$ 182,698.66
$ 55,295.21
Motion carried 4-0.
The meeting was adjourned by unanimous consent at 7:53 p.m.
HRA Meeting Minutes