10-17-16 Regular HRA HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
) . Richfield, Minnesota
Ihi Urban hometown
Regular Meeting
October 17, 2016
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:00PM.
ATTENDANCE
HRA Members Mary Supple, Chair; Pat Elliott; Debbie Goettel and Doris
Present: Rubenstein
HRA Members David Gepner
Absent:
Staff Present: Steve Devich, Executive Director,
John Stark, Director of Community Development,
Karen Barton, Assistant Director of Community Development
Kate Aitchison, Housing Specialist/Acting City Clerk
Item #1 APPROVAL OF THE MINUTES OF THE REGULAR HRA MEETING OF
SEPTEMBER 19, 2016
M/Elliott, SGoettel, to approve the minutes.
Motion carried 4-0.
Item #2 HRA APPROVAL OF THE AGENDA
M/Rubenstein, S/Goettel, to approve the agenda.
Motion carried 4-0.
Item #3 PROJECT UPDATE FROM BOISCLAIR DEVELOPMENT, LLC,
REGARDING THE CEDAR POINT II HOUSING REDEVELOPMENT AREA
Lori Boisclair, President of Boisclair Corporation, gave an update on the project dynamics
for the Cedar Point II Housing Redevelopment area.
Ms. Boisclair discussed the economics of land acquisition and redevelopment financing. In
working on the project, Boisclair is encountering a gap between the amount of financing
HRA Meeting -2- October 17,2016
that will be underwritten by a lender, and the amount of money required to complete the
project.
Ms. Boisclair described various ways that they are working with city staff to close this gap
and make the project feasible. They are considering `phasing' the project, beginning on
developing the for-sale townhomes first, and then constructing the rental apartments in the
second phase.
Chair Supple expressed her approval of project phasing if that is what is needed to see the
project move forward. Commissioner Goettel stated that it may help bolster confidence of
underwriters to see the first phase of the project successfully completed.
Two residents were invited to speak and ask questions related to the development.
Andrea Bolstad, of 6339 16th Avenue, asked three questions: 1) What comparables were
used from the Minneapolis Nokomis area? 2) What is the updated timing of acquiring the
single family homes? And 3) Is this work an extension of the original development work that
was begun to combat low frequency airport noise?
Ms. Boisclair explained that the comparable sales in the Nokomis area were newer projects
of similar size. It is completely at the discretion of the lenders and underwriters. Community
Development Assistant Director Barton explained the timing of grants, expecting the first
grant that would help with acquisition to be awarded in February. Executive Director Devich
answered the third question, stating that the Cedar Point Development helped with low
frequency airport noise by providing buffers with large retail buildings.
Ms. Bolstad asked an additional question: would the financial problems of the project trickle
down and affect the offered purchase prices of the homes along 16th Avenue.
Community Development Director Stark explained that certain details will be outlined in the
development contract with Boisclair, but that the real litmus test will be if the homeowners
are satisfied and accept the offered price. Executive Director Devich affirmed that everyone
wants to see the acquisitions work out for the best.
Carl Kowal of 6327 16th Avenue, reiterated the neighborhood's frustrations with the delays
to the project, stating that people have been avoiding making investments in their homes
since they will not recapture the money in the purchase price. He acknowledged all of the
City Staff's hard work. He stated that the neighbors feel that they have been forgotten by
the developer.
CONSIDERATION OF A RESOLUTION AUTHORIZING AN INTERFUND
Item#4 LOAN UP TO $650,000 FOR LYNDALE GATEWAY WEST TAX
INCREMENT DISTRICT DEBT SERVICE PAYMENTS
Community Development Director John Stark presented Staff Report No. 30.
HRA Meeting -3- October 17,2016
Community Development Direct Stark pointed out that, at the time, the Lyndale Gateway
West development was in a similar position to what is currently being seen at Cedar Point II.
It's the only time the city has issued General Obligation Bonds for a redevelopment project.
He stated that each year the HRA will receive and update, and that the market could
improve, meaning less debt service would be required.
Executive Director Devich explained that the HRA could choose to levy to pay the debt
service, but he did not recommend that course of action.
Chair Supple clarified that the amount would not exceed $650,000.
M/Goettel, S/Elliott, to approve the following resolution:
HRA RESOLUTION No. 1238
APPROVING INTERFUND LOAN TO THE LYNDALE GATEWAY WEST TAX INCREMENT
DISTRICT ACCOUNT FOR DEBT SERVICE PAYMENTS WITH RESPECT TO CERTAIN
GENERAL OBLIGATION BONDS OF THE CITY OF RICHFIELD
Motion carried 4-0. This resolution appears as HRA Resolution No. 1238
Item #5 HRA DISCUSSION ITEMS
Chair Supple acknowledged the success of the recent Renovation Celebration Home Tour
and stated that she was impressed with the materials and outcome.
Commissioner Rubbenstein asked about the reconstruction of 66th Street, and if there are
plans for redevelopment.
Community Development Director Stark stated that there may be residential property
remnants that can be acquired for the Richfield Rediscovered or New Home programs.
Commissioner Goettel stated she has heard that `pocket parks' may also be possible with
some of the remnant land.
Item #6 EXECUTIVE DIRECTOR REPORT
Executive Director Devich had no news to report.
Commissioner Rubbenstein asked about the native plants that have been removed at the
Lyndale Gardens site, specifically wondering what will replace them. Community
Development Assistant Director Barton answered that the site will be fully landscaped upon
completion, but will not be returned to its native state.
Item #7 CLAIMS AND PAYROLL
HRA Meeting -4- October 17,2016
M/Goettel, S/Elliott, that the following claims and payroll be approved:
U.S. BANK 10/17/16
Section 8 Checks: 128090 - 128175 $ 164,866.99
HRA Checks: 32850 - 32875 $ 45,616.93
TOTAL $ 210,483.92
Motion carried 4-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:56 p.m.
Date Approved: November 21, 2016
Mary B. pple
HRA ,lair
Kate Aitchison Jo► ark
Acting City Clerk cti Executive Director