11-21-05 Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
November 21, 2005
The meeting was called to order by Chair Harms at 7:00 p.m.
HRA Members
Present:
Thomas Harms; Sue Sandahl; and Martin Kirsch.
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; Patrick Smith, Community Development
Manager; and Bob Lindall, Kennedy & Graven.
Item #1
M/Kirsch, S/Sandahl to approve the minutes of (1) Reaular HRA Meetina of September 19.
2005; (2) Special Concurrent HRAlCitv Council/Plannina Commission Worksession of September
26. 2005 and (3) Special Concurrent HRAlCitv Council/Plannina Commission Worksession of
October 19. 2005.
Motion carried 3-0.
Item #2
The agenda was approved by unanimous consent.
HRA Meeting Minutes
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November 21, 2005
Item #3
A. Approved professional services agreement with Dave Schaffer for remodeling advisor services
S.R. No. 40
B. Approved continuation of contract between HRA and Greater Metropolitan Housing Corporation to
deliver housing programs and services S.R. No. 41
C. Approved contract with Architectural Consortium for services of Kathy Anderson to assist with
design services related to Cedar Corridor redevelopment project S.R. No. 42
M/Sandahl, S/Kirsch to approve the Consent Calendar.
Motion carried 3-0.
Item #4
Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 43 regarding
consideration of a resolution authorizing Modification to Redevelopment Plan for Richfield
Redevelopment Project Area and Modifications to Tax Increment Financing Plans for Gramercy,
Urban Village, City Bella, Interchange WestlLyndale Gateway, Richfield Rediscovered A-1, A-2, A-
3, A-4, A-5, B-1, B-2, B-3, B-4 and B-5 Tax Increment Financing Districts and a resolution
establishing housing redevelopment project.
Commissioner Sandahl asked if the modifications to the plan were to include pockets of
land the City previously omitted in the previous plan.
Housing and Redevelopment Manager Nordquist responded that was the case.
Commissioner Sandahl asked about clarification of certain goals.
Housing and Redevelopment Manager Nordquist explained the changes.
Chair Harms stated he believed that Richfield's plan was still well within our goals.
Housing and Redevelopment Manager Nordquist stated that it was.
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 Meeting Minutes
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November 21, 2005
HRA RESOLUTION NO. 955
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND
MODIFICATIONS TO THE TAX INCREMENT FINANCING PLANS
FOR THE GRAMERCY, URBAN VILLAGE, CITY BELLA,
INTERCHANGE WEST/LYNDALE GATEWAY AND
RICHFIELD REDISCOVERED A-1, A-2, A-3, A-4, A-5, B-1, B-2, B-3, B-4, AND B-5
TAX INCREMENT FINANCING DISTRICTS
Motion carried 3-0. This HRA Resolution appears as HRA Resolution No. 955 in HRA
Resolution Book NO.7.
M/Kirsch, S/Sandahl that the followinQ 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. 956
RESOLUTION ESTABLISHING HOUSING DEVELOPMENT PROJECT
Motion carried 3-0. This HRA Resolution appears as HRA Resolution No. 956 in HRA
Resolution Book No.7.
Item #5
Community Development Manager Smith reviewed Staff Report No. 44 regarding a
resolution authorizing a Business Subsidy Agreement between HRA and Ryan Companies US,
Inc. for the Cedar Point project.
Commissioner Sandahl asked Sid Inman of Ehlers & Associates what the affect of the tax
abatement is over time and how long it will be before Richfield recoups what it has abated.
Mr. Inman stated the abatement is for a maximum of 15 years. It will take 3 - 4 years to
recoup the costs of the property.
Larry Wozniczka, 6744 Wentworth Avenue, asked if the abatement value changed and if
the project pays taxes to the other taxing jurisdictions.
Mr. Inman stated that this amount hasn't changed. The County continues to get its taxes
and the school actually gains because property is going back on the tax rolls.
Mr. Wozniczka asked for clarification on how the fiscal disparity is being handled. He
questioned if the City might be liable for an increase in fiscal disparity payments or a reduction in
benefits.
Mr. Inman stated the project pays its own fiscal disparities and has no impact on the rest of
the City.
Chair Harms stated this is the culmination of a long process in this redevelopment and he
strongly supports the project.
HRA Meeting Minutes
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November 21, 2005
M/Kirsch, S/Sandahl to close the public hearinQ.
Motion carried 3-0.
M/Kirsch, S/Sandahl that the followinQ 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. 957
RESOLUTION APPROVING A BUSINESS SUBSIDY
AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND
RYAN COMPANIES US INC.
Motion carried 3-0. This HRA Resolution appears as HRA Resolution No. 957 in HRA
Resolution Book NO.7.
Item #6
Community Development Manager Smith reviewed Staff Report No. 45 regarding a
resolution authorizing eminent domain proceedings to acquire certain real properties for
redevelopment pursuant to Richfield Redevelopment Plan - Cedar Point project.
Bob Lindall, Kennedy & Graven, explained in greater detail, the basis of the resolution
authorizing eminent domain.
Chair Harms asked if staff has a summary of the efforts that were undertaken and if
reasonable efforts were taken to negotiate with property owners rather than exercise eminent
domain.
Community Development Manager Smith responded yes, staff tried to exhaust all
opportunities to come to an agreement with the property owners.
Marvin Johnson, owner of 6300 Cedar Avenue, stated that they were given one offer, which
he did not respond to. Mr. Johnson stated that this is not a matter of money but a matter of
location. He does not want to move and believes that taking this location will result in their going
out of business.
Chair Harms responded that this is not a decision that the HRA takes lightly. The decision
is one that is viewed as what's good for the entire community.
Mr. Johnson stated that Conworth is showing him locations in Inver Grove Heights or
Roseville which is economically not feasible.
Chair Harms asked that staff work diligently to find another location for Mr. Johnson.
Community Development Director Palmborg stated that Conworth passes all location
options to Mr. Johnson to review.
HRA Meeting Minutes
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November 21, 2005
Fred Wroge, Richfield City Council Member, stated he is not happy with how businesses
were dealt with regarding relocation efforts. He feels staff needs to make a better effort to find
locations in Richfield.
Chair Harms stated that he was involved in hundreds of hours of efforts in relocation
matters over the years and that he believes staff has made great efforts to try to find suitable
relocation sites, including those in Richfield.
Executive Director Devich stated that he will meet with Conworth in the next several
business days to work on this relocation effort.
Commissioner Kirsch and Commissioner Sandahl both stated that these eminent domain
decisions are very difficult but must be viewed in what is best for the community.
Chair Harms stated that he shares the view of his colleagues. The HRA has worked long
and hard on this site and recognizing the needs of the whole community. The HRA wants Mr.
Johnson to be dealt with fairly and he urged Mr. Johnson to keep in contact with the City regarding
the relocation efforts.
M/Sandahl, SI Kirsch to close the public hearinQ.
Motion carried 3-0.
M/Sandahl, S/Kirsch that the followinQ HRA resolution be adopted. that it be spread in the
HRA resolution book and that it be made part of these minutes:
RESOLUTION NO. 958
AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN PROPERTY
FOR REDEVELOPMENT PURPOSES
Motion carried 3-0. This HRA Resolution appears as HRA Resolution No. 958 in HRA
Resolution Book NO.7.
Item #7
Community Development Director Palmborg reviewed Staff Report No. 46 regarding
consideration of the future of Candlewood outlot parcel located at 301 West 77th Street.
Chair Harms questioned if the HRA should wait until the Planning Commission concluded
the 1-494 visioning process. He stated that he preferred the process run its course before the HRA
gets involved.
Commissioner Sandahl and Commissioner Kirsch concurred with Chair Harms.
Community Development Director Palmborg stated that that was all the direction staff was
seeking at this time.
HRA Meeting Minutes
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November 21,2005
Item #8
None.
Item #9
M/Sandahl, S/Kirsch that the followina claims and pavroll be approved.
FIRSTAR BANK 10-17-05
Section 8 Checks: 108558 - 108560; 109002 - 109132
HRA Checks: 27708 - 27721; 29201 - 29229
FIRSTAR BANK 11-21-05
$ 190,450.28
$ 84,895.12
Section 8 Checks: 109133 - 109277
HRA Checks: 29230 - 29272
$ 192,360.34
$ 172,617.54
Motion carried 3-0.
The meeting was adjourned by unanimous conse
:57 p.m. I /
/1.