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01-18-94 agendaCITY OF RICHFIELD. HOUSING AND REDEVELOPMENT AUTHORITY TUESDAY, JANUARY 18, 1994 7:00 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER APPROVAL OF MINUTES OF HRA MEETING OF DECEMBER 20, 1993 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATION OF ELECTION OF OFFICERS FOR 1994 HRA LETTER NO. 1 3. CONSIDERATION OF DESIGNATION OF ACTING EXECUTIVE DIRECTOR FOR 1994 HRA LETTER NO. 2 4. CONSIDERATION OF DESIGNATION OF OFFICIAL NEWSPAPER FOR 1994 HRA LETTER N0. 3 5. CONSIDERATION OF RESOLUTIONS DESIGNATING OFFICIAL DEPOSITORIES FOR 1994, INCLUDING APPROVAL OF COLLATERAL HRA LETTER NO. 4 6. CONSIDERATION OF AUTHORIZATION FOR STAFF TO DRAFT AGREEMENT WITH TOLD DEVELOPMENT COMPANY TO MARKET AND FACILITATE REDEVELOPMENT OF CLOVERLEAF SITE HRA LETTER NO. 5 7. CONSIDERATION OF RESOLUTION TO CONFORM LYNDALE/HUB/NICOLLET COMMERCIAL DEVELOPMENT IMPROVEMENT PROGRAM WITH RSA MEDICAL OFFICE FACILITY APPROVED DURING LAST QUARTER OF 1993; MODIFICATION N0. 7 HRA LETTER N0. 6 8. CONSIDERATION OF TRANSFORMATION HOUSING: REVIEW OF 1993 ACTIVITY AND PROGRAM PROPOSAL FOR 1994 HRA LETTER N0. 7 9. PRESENTATION OF CSM STATUS REPORT 10. EXECUTIVE DIRECTOR REPORT 11. 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. 7 January 18, 1994 Issue Statement: Consideration of Transformation Housing: a review of 1993 activity and a program proposal for 1994. Background: The HRA authorized a value added home remodeling program in 1993 called "transformation housing The pilot project at 6500 James was provided in cooperation with Quam, Sumnicht and Associates (QSA). The HRA accomplished all of its objectives in the initial project: • The foreclosed property was purchased from HUD, but not before a development agreement and future home buyer were arranged with QSA. • A minimum 5120,000 home was provided. The home actually sold for 5149,500 with many of the amenities found in Richfield Rediscovered new construction homes. • A structure, due to its condition, was valued at $50,000 and was renovated by purchasing at a discount from HUD and passing approximately half (54,000) of this discount on to QSA after ~, other project costs were covered. • The home, which had a market value of $74,000 until its decline and foreclosure, was salvaged and put to a better use. • HRA staff time was kept to a minimum, an estimated 20 hours. • A project was completed in a timely manner and QSA had obtained sufficient financial security (in the form of a letter of credit) to ensure performance. The HRA promptly received land/structure proceeds when the property was sold to the end buyer. To summarize, the HRA achieved its objectives at little or no cost. Staff experience with the program suggests: 1. The 6500 James example was unique. This was a deeply discounted property available for renovation from HUD. If the decline in condition and foreclosure had not occurred, a discount of approximately 525,000 would have been needed to facilitate transformation. 2. A buyer was readily found, which limited marketing time and expense. Time and expense are critical issues in major renovations. 3. QSA was able to overcome buyer and contractor default issues as they arose. 4. The return on investment by QSA was insufficient for them or .another remodeler to want to participate .without some program modifications and additional financial support. 5. A method to transform existing owner .occupied homes has to be determined. This broadens the program benefit beyond homebuyers. To sustain and broaden transformation housing, .the HRA needs to consider additional financial support. Major remodeling inherently has greater risks, unforeseen problems, and hard to estimate and control costs. This. remodeling dilemma is further explained in the attached "Study of Inherent Loss of Value". Approximately.5 to 27 .percent of a remodeling projects cost may not be returned as value added. In evaluating ways to sustain this program, staff has explored various types of financial incentives, heard from additional remodeling contractors that have expressed an interest in participating, reviewed-some alternative approaches to the program which were submitted by QSA, and developed a proposal that should facilitate a greater variety of transformations while respecting the limited resources of the HRA. A detailed program summary is provided as an attachment. Recommended Motion: Authorize a Transformation '94 program to proceed by supporting substantial remodeling efforts with a combination of limited staff support, incentive grants and other financial incentives as needed for remodeler/homeowner/homebuyer teams. Basis of Recommendation: 1. "Transformation" is homeowner/homebuyer driven. The HRA and remodeling contractors are facilitators. The program must provide sufficient incentives to support homeowners/homebuyers desire to invest and improve in Richfield and to do so in a substantial value added way. 2. Experience suggests that homeowners are voluntarily remodeling up to a contract price of approximately $40,000. The special mortgage arranged by the HRA with Norwest supports this initiative and allows up to a 50 percent increase in value. Remodeling existing homes up to a $120,000 end value is easily supportable in Richfield by professional appraisers. 3. To increase the frequency of remodeling greater than this 540,000 value requires additional incentives. These incentives have to take into account that new construction ,.. is usually more attractive than remodeling, costs frequently exceed added value, remodelers want a reasonable profit, - homeowners/homebuyers want to remodel in ways that make economic sense, and the HRA wants the greatest number of transformations to occur with the least allocation of limited resources. 4. The Transformation '94 program summary suggests the HRA take a shared cost position in major remodeling ventures because costs typically exceed value added. Incentive grants. deal with the major program issues: value added is usually less than actual cost, homeowners may have to temporarily relocate during major transformations, acquisition followed by transformation requires greater financial security for lenders to participate. 5. Unlike Richfield Rediscovered which provides a positive payback with high a level of security that a home will be built and completed, the transformation program does not offer similar security. To improve the HRA's security and assurance of performance for the contributions made, the program requires: s joint grant payments to the homeowner/homebuyer/builder team at project completion;. • competitive bidding for homeowners; competitive bidding or negotiation for home buyers; • five year continued occupancy to forgive the grant. -~" The HRA receives greater assurance that the remodeling work will be completed, that the contract prices are fairly arrived at, and that remodeling and sale of property does not create speculative opportunities. 6. Staff has explored various roles the HRA could play including: acquisition and writedown, interim construction financing, interest rate reductions on financing, and designated contractor relationships. Each of these has consequences which may impair the HRA's transformation objective given limited resources. Property acquisition requires large amounts of capital. Writedown requires interim ownership and limits return on capital. HRA's are not typically construction lenders. Remodelers typically use cash on hand, credit lines with experienced lenders and suppliers and escrow draws to finance remodeling. Interest rates are already very favorable. Finally, the HRA's experiences with the Richfield Rediscovered New Construction program suggests the homeowner/homebuyer prefers to pick their contractor rather than to have the HRA designate one. 7. The HRA has a possible funding source. Program income from Richfield Rediscovered New Construction can be committed to Transformation Housing and not returned to the Development Fund. Based on Richfield .Rediscovered activity now underway, approximately $190,000 in land sale program income is anticipated in 1994. 8. Approximately 10 to 20 incentive grants could be provided with 5190,000. Approximately two purchase/foreclosure transformations are possible with the same $190,000. 9. The purchase/transformation process is a more limited method of program delivery that doesn't help present homeowners. However, purchase/transformations continue to be an important method to increase home values and provide more examples of remodeling alternatives. 10. The incentive grant concept more broadly supports a transformation initiative with existing owners. 11. Remodeling costs exceed value increases to property by up to 27 percent for typical major improvements. Thus, a 15 percent subsidy to project cost is envisioned to be a reasonable risk shared by the HRA. 12. A 15 percent of project contribution from the HRA provides greater lender security, covers a portion of project costs discovered during remodeling, increases remodeler return, and provides an incentive to transform. 13. Presently four remodelers have indicated an interest in participating in transformation housing if the right package of incentives can be provided (QSA, Parsley, Thompson, Plekkenpol). Further contractor solicitation would follow after program approval. 14. Transformation could be appealing to New Ford Town residents as relocation options are considered. Alternative Recommendation: 1. Increase HRA support in excess of the proposed amounts and identify other funding sources. 2. Consider alternative proposals further, such as those presented by QSA. Three different proposals have been discussed with QSA since the December 1993 HRA meeting. A December 15, 1993 proposal suggests up to $25,000 in subsidy for each project, the HRA assumes the role as the acquisition and construction financer, a significant commitment of staff time, detailed administrative processes, and a high interim capital investment for each remodeling project. A January 5, 1993 proposal suggested the HRA focus their assistance on property acquisition loans to benefit QSA purchases and a monthly retainer of $1,500 while QSA evaluates candidates for acquisition and initiates projects. QSA also provided input into the program element the HRA is reviewing in this letter. The QSA proposals did not address transformation for owners of existing housing. 3. Discontinue the Transformation Housing Program. Discussion/Decision Mode: A waiting list of possible grant recipients .could be started at the remodeling fair. Additional program marketing is also envisioned. Land proceeds from Richfield Rediscovered New Construction should become available in mid to later 1994. .Respect ully submitted, Jame Prosser Exe u 've Director JDP:cak ._~ .. ,~ ,~ .. .N .-. ~ .. .-. .. ~ O ~ ~ ~ c 1~ O ~ O U U U U U U ~ U W w Q µ.l ~ O w O 4-t 4-I 4-I .. 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H N Ei ~ i-~ ~ ~ t!} t!1 ~ t!? ~!? i!} t!? t!} t/? ° ~ ~ td ~ ro ~ a ~ +~ ~ a N~ ~ cd ''~ w o '~ v~ o ~' ~' o 0 0 0 0 0 0 0 0 0 0 0 O ~ ~ O O O O O O O O O O O ~ oa o 0 0 0 0 0 0 0 0 0 0 Ei % ~ .}~ ~ tb O N N N O t~ M O H ~ O r-t M O N N ~ z a ~ ~ q U rn rn rn zr1 rr1 rr1 ~ ~ ~ rr1 N w ro 0 rn ro ~ ~ ~~ w a i ~ ~+ ,~ ~ O ~ ro ~ E•' b +~ O t d U ~ to ~ '~ N °~ r-I O O N O • O `~ ~ A a A+ ~ o a~ w •~ ~ o i ~ o ° a o' ~ ui U ro 4a 3 N .~ U a i D +•~ ~ 'O to c d S-+ ~ O ~ ro ~ S•~ O ^ •~ O 't3 E~ U U A •~ A ~ O •~ +~ ~+ •~ " ~ A~ •~ O A 3 •~t ~ ~- o ~ ~ tv o •~ o ~ ro a ~ o U •~ ~ +~ .~ to ~ .o zs . o ~o ~ a~ +~ rv +~ ro R~ o U tll ~+ •~ +~ O 0 +~ •~ ~ N ~ A O 3 o 3 3 Z ro E O H ~ Q 0 '~ ~ o p H r•i N (~ d~ Lf~ l0 C\ CO ~ r-I TRANSFORMATION HOUSING 1994 PROGRAM ELEMENT SUMMARY Transformation Incentive Grants: - For transformation projects (substantial remodeling), a 15 percent of contract incentive grant (not to exceed $15,000) would be provided to the builder/homeowner/homebuyer whenever the total contract price exceeded $50,000. Contract Price Transformation Incentive Grant $50,000 $ 7,500 $60,000 $ 9,000 $70,000 $10,500 $80,000 $12,000 $90,000 $1.3,500 $100,000 $15,000 Relocation Supporting Grant: - For substantial remodeling which requires a homeowner or homebuyer to not reside in the residence during remodeling, a maximum 51,500 supporting grant would be provided, paid directly to the homeowner/homebuyer, at the rate of $500 per month. Transformation of Owner Occupied Residences - The lowest of two competitive bids, submitted by the homeowner,. is the basis for computing the grant amount. Transformation of Purchased or Foreclosed Homes - -The design/build nature of this element requires the grant to be computed on a total contract price which may be arrived at by negotiation or competitive bid. - The cost of property acquisition is the builder/buyer teams responsibility. A private purchase from a willing seller or a purchase from the HRA is possible. On a case by case basis, the HRA may need to evaluate additional financial incentives with lenders to provide sufficient security for the builder/buyer team to secure the needed acquisition and interim construction financing. - The full 10 percent HUD discount to the HRA for purchasing a foreclosure would be passed on to the builder/buyer team. - The builder/buyer team would receive an additional 5 percent discount as an incentive grant for transforming a foreclosed home so that the total HUD discount and grant combination would equal the 15 .percent discount outlined above. - The homebuyer is encouraged to purchase prior to remodeling. State law requires the purchase and remodeling to all be completed in the same year to receive property tax discounts. Further Consideration: - The homeowner/homebuyer must remain in the home for five years to allow the grant .to be forgiven. After the first year the amount of grant to be repaid would be reduced by 20 percent until none was owed after the fifth year. A lien would be filed which would be junior to all other real estate liens of record. - Staff time to facilitate incentive .grants would approximate 5 to 10 hours. Staff time to facilitate purchase or foreclosure transformations should be kept to no more than 20 hours. - The HRA will publicize the program to homebuyers and sellers; providing information that will facilitate contacts with builders .and remodelers. TRANSFORMATION REQUIREMENTS The following requirements would apply to all transformation. projects: 1. Each home shall be a detached single-family dwelling. 2. Three and four bedroom homes are preferred. However, a minimum of two finished bedrooms and easily finished space for a third bedroom will be acceptable. 3. Two full bathrooms are preferred, however, a minimum of one ~- full bath and a 1/2 bath roughed in will be acceptable. 4. A two car garage, attached or detached, must be provided on the site. 5. If exterior work is envisioned, exterior materials should. be low maintenance. Hardboard siding materials are not acceptable. 6. All building plans must be prepared in consultation with an Architectural Designer with a minimum two year technical degree or an Architect. Plans will be reviewed by staff as a condition of receiving a grant. House design is a critical concern. The house building lines, window placement, and orientation to street, must present a balanced and pleasing view from all sides. Garage door dominance in design must be minimized. 7. Site must be fully landscaped and sodded in a professional manner upon completion. 8. Adjoining properties must not be disturbed by the construction process. 9. Construction and the finished structure must improve or not have a detrimental impact on storm water drainage patterns in the neighborhood. When a foreclosure transformation project is planned and the HRA is the interim purchaser, the following requirements would additionally apply: 1) A development agreement must be agreed upon. 2) The performance security and purchase price amount are equal and essentially cover the cost of HRA acquisition. 3) The HRA, if acquiring property at a discount, will pass that discount onto the builder/remodeler. 4) A buyer or owner must be secured by the builder/remodeler in advance of entering into a development agreement. Remodeling based on speculation is discouraged. 5) Transformation opportunities will be offered on a first come, first served basis. 6) Notification of availability of sites is provided to those that indicate an interest in participating in the program. SAMPLE TRANSACTION - TRANSFORMATION '94 An owner of a Richfield average $85,000 home wants to "transform". The homeowner receives two bids, the low bid approximating $75,000. The contract yields approximately $63,750 in added value. The property valuation upon completion is 5148,750. The homeowner must relocate for two months. Primary Program Benefits: - HRA Remodeling Advisor is available to assist project planning. - The homeowner/builder receives a 511,250 incentive grant upon the date of project completion (15 percent of the lowest bid). - The homeowner receives a total of $1,000 during the relocation period (2 months x,5500 a month). Secondary Program Benefits: - The homeowner presently pays annual homestead property taxes of $1,250 on an $85,000 home. The property taxes on a 5149,000 valued property approximates $2,900. State law allows the maximum 525,000 value exclusion due to the extent of remodeling in this example. Thus, for a ten year period, the owner is paying taxes as if the property were valued at $123,750, approximately $2,250 annually. The annual property tax benefit is $650. RATIONALE FOR PROGRAM PROCEDURES - Grant payments are written to the builder/homeowner/homebuyer team at the end of the project as a way of ensuring the grant is applied to the transformation project and .that work is performed completely. For homeowners contemplating transformation, competitive bidding allows the market place to determine the contract (and grant) amount. Competitive bidding is always encouraged. However, when a homebuyer or builder envisions transformation prior to occupancy: - the builder may own the property - the builder/ buyer may prefer to directly negotiate a contract price given the scope of work and the design/builder relationship which is sought. Competitive bidding would be difficult in these situations, as evidenced by the HRA approach at 6500 James. - Financial incentives with lenders maybe required to assist acquisition and interim construction financing. Transformation creates an economic dilemma related to acquisition cost. The depreciation of that cost through the process of demolition/addition will change values. HRA resources may be needed to secure the short term period of value decline to value addition. - There is a concern that requirements for competitive bidding and five years of ownership will be detrimental to the program and are not used in Richfield Rediscovered. Richfield Rediscovered is a very secure program that generates a positive cash flow and return to the HRA. Competitive bidding and"five years of benefit are necessary security given that transformation housing does not yield a positive cash flow or any direct financial return to the HRA. PROJECT CASH FLOW SUMMARY TRANSFORMATION '94 $360,000 - 1993 Richfield Rediscovered New Construction Funding from Development Fund. -170,000 - Net Expenses - New Construction Program (returned from tax increment over 25 years). $190,000 Balance (received during 1994 as land sale program income from new construction activities) Commit the $190,000 Balance, as received on a first come, first served basis, to transformation projects. The $190,000 is not returned to the Development Fund and availability is dependent on Richfield Rediscovered New Construction activity. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No.6 Agenda January 18, 1994 Issue Statement• Adoption of a resolution to conform the Lyndale/Hub/Nicollet Commercial Development Improvement Program with the RSA medical office facility approved during the last quarter of 1993; Modification No. 7. Background• During the•last quarter of 1993,-the HRA, Planning Commission and City Council took a variety of actions which made it possible for RSA: to undertake the construction of a 22,000 square foot medical office facility at the corner of 66th Street and Grand Avenue. It would now be appropriate to take action to approve a modification to the LHN Commercial Development Improvement Program. The Planning Commission would also review the modification and then the City Council would be requested to hold a public hearing and adopt a resolution finalizing the approval of the modification. Recommended Motion: Adopt a motion which approves the attached resolution which incorporates the medical facility into the LHN Commercial Development Improvement Program. The effectiveness of the HRA approval is contingent upon a favorable response from the Planning Commission. .Basis of Recommendation: The LHN Commercial Development Improvement Program should reflect the activities undertaken by the HRA. Alternative Recommendation: 1. Delay action. 2. Refuse to approve the modification Discussion/Decision Mode: Approval on January 18 would make it possible to complete the process with the City Council prior to the end of March. Res ctfully submitted, Ja s D. Prosser Executive Director JDP:ds HRA RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA APPROVING MODIFICATION NO. 7 IN THE LYNDALE/HUB/NICOLLET COMMERCIAL IMPROVEMENT PROGRAM: TRANSMITTING THE MODIFIED PLAN TO THE PLANNING COMMISSION: REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON: RECOMMENDING APPROVAL OF THE MODIFIED PLAN WHEREAS, the Housing and Redevelopment authority in and for the City of Richfield, Minnesota (the "HRA") did on October 15, 1975, approve a redevelopment plan for an urban renewal project for the "Lyndale/Hub/Nicollet Commercial Improvement Program"; and WHEREAS, the City Council of the City of Richfield, Minnesota (the "City Council") did on November 24, 1975, approve the Plan; and WHEREAS, the Plan has subsequently been amended on six occasions; and WHEREAS, the Plan previously designated certain properties for acquisition by the HRA; and WHEREAS, it has been determined that the acquisition of certain additional property described in Attachment A is necessary to implement the Plan and to carry out the purposes of the Plan; and WHEREAS, the Minnesota statutes require that the Planning Commission find that the proposed land purchase is consistent with the Richfield Comprehensive Plan; and WHEREAS, the monies for the purchase of this property are available in the LHN tax increment fund. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. Subject to a favorable finding by the Richfield Planning Commission regarding the Plan's consistency with the Richfield Comprehensive Plan, the Plan is hereby modified by adding thereto as property designated for acquisition the land described in Attachment A. 2. The HRA requests that the modified Plan be referred to the Planning Commission for consideration of its consistency with the Richfield Comprehensive Plan. 3. The Executive Director of the HRA is hereby authorized and directed to transmit copies of the madified Plan to the school board of Independent School District No. 280 and the Board of Commissioners of Hennepin County for review and comment and to notify said public bodies of the public hearing to be held on the Plan by the City Council. 4. The HRA requests the City Council to hold a public hearing on the modified Plan as required by Minnesota Statutes, 469.028 and Minnesota Statutes, .469.175, subd. 3 as soon hereafter as is practicable and the HRA requests the City Council to approve the modified Plan following such hearing. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of January, 1994. ATTEST: Thomas E. Harms, Chair Vern Luettinger, Secretary EXHIBIT A LEGAL DESCRIPTION Lot 2, Block 1, RICHFIELD BANK ADDITION ~~ I 1 ._- ~~~ ~ - 3 5 C~1.1 J ~_ I l l l l I III, OLI i!; ! ~ ~ r' LrrlwooD RLr , 'r~'~iI'/ ° ~~ ~ ;'-i i ~[.. <~ ; . ; ~[ ~' (~ ~ f'~ ,1 . ;' ~, ~ ~ ~ _ ~ ~ 0 a ~ I . ~ ~ ~ / a° 1~ 0 0 z D C car n 0. O R W 0. d F+ 9 ~ n ~~,~ ~ n C ~ W I+ 0o O N ~ 1+ .n n r z r o ~ i 1 ~; I ~: ,. ~t~ ~ ,~,~ ~ ~ ~` j ?4 \ \ \\, is ~ ~ ~P : ~ ~ ~ 1~ Ili liiilll',. EMERSON AVE. Y .M i~lll'iii ~~, '`~'~~-- ' i l i I V~ l DVRONT AV[. ° i,~1 ~~ f1~IJ --_ _ COLA[ AYE.. '~ i 'If[LIJ 1~_ _. r`h ~ serArl I 1 I ~E _.L___ --- ~ 1.1~111.1I~J - _- /1.1~~~_Il l 1111) - ALDRICN AY[. l ~ X111.1 ~~, 1~, ~ _ ] 1~ ~ ~' __ \ r, ~ /i ~ , ~ v/ )i ~ - - - ~ ~ r ~~ ~ _ _ `~ ~ ~ . ~ -- / \/ ~ 1 E iu'I \~1 ~- / ] \ ~ i toy J- 1~j ~~\~ ~~~ ;1__l_ j~-=° `~ l__L_l_ x_1.1:1.:1.1- . ~ _ ~~ T - NARRIET AY[. -_ 1~~ I~ -- - -- - ~ ~--~ ~ _L~_ ~ _ - e [[~[[~[[~E[~[E _ __ GRAND AY[. _. ~. _ - - _ ~ _I~ _1.1 ~ - _~ - -f1 ~=~1=_~~ ~- ~_ -_- ---- ~ .. .- .. _ -. K[ASANi AYE. 11 ~~[[ I`~ ~ I _ -ILLSRURT AY [. ~ I __ m ~ - _ ~_ _1 ~_ _ Z w[RiwOR1N AY[. - o -~ _ - _ _ L ___ uusD[u w[. - - __- ~.~_,_ rll_~11 _ _ ~_~ -'EI~[[~[[ ~ .1 _. _ ~ NI[OUET AY[. _ ~ -~_- = al I- _ -- - __ - _ _~ ~ I - ~~~~ ~~_~~ f~1 - - -~ - - ~ EHIi ~ ~'~ l I~I~i ~!- Iris ] ~~ AY[. ~ ° LYNDALE /HUB / NICOLLET ~' _ ~ °° ~ COMMERCIAL IMRROVEMENT ~ ~ ~ ~ PROGRAM RICHFIELD, MN ~\ 0 i f HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No.5 Agenda January 1$, 1994 Issue Statement• Authorization for staff to draft an agreement with TOLD Development Company to market and facilitate redevelopment of the Cloverleaf site. Background: The HRA purchased this 13 acre property in 1992 from the Resolution Trust Corporation. The purchase provided the HRA with the opportunity to prevent inappropriate development on the site and to seek appropriate development at the opportune time. Attached is a proposal from TOLD. TOLD is proposing to enter into an .agreement to market and facilitate development of the site. They would formulate and implement a marketing program to identify an appropriate development(s). They propose an initial term of 18 months with a potential extension for an additional 12 month period. If the marketing efforts are successful, they would become the developer. The elements of the marketing program include site signage, use of aerial photographs in a promotional brochure, mailings to a targeted corporate market, and releasing information about the site and its potential through media articles. On a monthly basis, reports of potential user contacts would be provided. Staff is prepared to draft an agreement consistent with instructions from the HRA. It would be appropriate to consider, for example, if the HRA wishes to take into account a potential relocation site for the Emerson Avenue Congregational Church as was previously suggested by ILN redevelopers. Recommended Motion: Authorize staff to draft an agreement for subsequent presentation to the HRA which would establish the parameters for a marketing and development program to be implemented by the TOLD Development Company. Basis of Recommendation: 1. An agreement could be drafted to protect and achieve the objectives of the HRA. 2. Staff has had first hand knowledge of TOLD for several years. As the attached material indicates they are a successful and reputable developer. 3. A relationship with TOLD would put the HRA and the Cloverleaf site in an aggressive marketing position. _ 4. The HRA would incur no expenses during the marketing program operated by TOLD. Alternative Recommendation: 1. Reject the .TOLD proposal.. 2. See other potential marketing/development proposals. Discussion/Decision Mode: TOLD believes there is a "window of opportunity and would like to take advantage of as much of that time as possible. Respectfuk'S.~i submitted, Jame. Prosser Exec ive Director JDP:ds _ TOLD DEVELOPMENT COMPANY December 16, 1993 Mr. James D. Prosser City Manager City of Richfield 6700 Portland Avenue Richfield, MN 55423 Dear Jim: The purpose of this letter is to express our interest in developing a long term relationship with the City of Richfield. This proposed relationship would allow TOLD Development Company to assume a proactive position in its efforts to identify and secure large corporate office users for the approximate 12.92 acres of land located at the northeast corner of I-494 and 35W. We are of the firm conviction that opportunities to develop freestanding headquarter office facilities will present themselves during a "window" of time. This window exists from the present and spans the next 30 months. We believe this windpvv is an opportunity to develop office facilities which is superior to any window of opportunity for this type of product that we have seen in the last five to six years. Continuing to allow this particular property to exist in a "passive" mode, without a concentrated marketing effort by an experienced developer such as TOLD Development Company will definitely not capitalize on this window of opportunity. The last three years (a time which has seen the demise of many development companies and a time when relatively little development activity has taken place), have been the best three years in our company's history in terms of new development activity. During this period we have constructed almost twenty new facilities which include multi-story office buildings, office/warehouse facilities, and a multitude of retail projects throughout the Midwest. At present, we have eight projects which will commence construction within the next 150 days and one four story office building which is now in the planning/lease negotiation stages. We believe the City of Richfield needs an experienced development company such as TOLD who can assume complete responsibility for the development of the subject property, as if we owned the property ourselves. We are proposing to function, in the proposed relationship with the City of Richfield, as if we were your "in-house" development agency, down the hall, so to speak. We are prepared to assume the cost of mounting a full scale marketing effort over the next 30 month time period. MINNEAPOLIS • MILWAUKEE • CHICAGO WEDGWOOD COMMERCE CENTRE • 6900 Wedgwood Road, Suite 100, Maple Grove, MN 55311 • (612) 420-9000 Fax (612) 420-7574 Mr. James D. Prosser December 16, 1993 Page -2- We envision that we will interview and retain (under separate agreement with TOLD) the services of an outside brokerage firm who will work in concert with TOLD insofaz as orchestrating a specific marketing plan for the project including, but not limited to, the following: PROMINENT SIGNAGE A professional sign program will be designed and installed to communicate the availability of the property, for development, to the traffic on I-494 and 35W. This intersection represents what must certainly be the heaviest trafficed intersection in the entire State of Minnesota. The most important single element of an effective signage program is the ease with which interested parties can establish contact, via telephone, with individuals who aze knowledgeable and can provide specific information about the property. AERIAL PHOTOGRAPHY A series of aerial photographs will be shot in order to select the photograph (or photographs) which communicate the most favorable elements about the property, i.e., proximity to I-494 and 35W, access from the east, ease of access to both I-494 and 35W, surrounding azea on a three to five mile radius, etc. These photographs will be utilized in our marketing packages which will be sent out to targeted individuals and to those making general inquiry about the project. PROJECT BROCHURE A professionally designed project brochure is an absolute must if communication about the availability and quality of this project is to be effective. We believe this brochure should incorporate the previously described aerial photograph as well as Twin Cities an~ Richfield map references, hypothetical site plan or plans (depicting the potentiality of future development) and specific information relative to traffic, visibility, ease of access, etc. A brochure of this nature is embellished by our name, reputation and credibility, all of which facilitates users in their determination of pursuing this property as opposed to other Mr. James D. Prosser December 16, 1993 Page -3- available land which may be offered by an owner who has no development experience or a broker merely interested in earning a commission on a land sale. TARGETED MARKETING Through our liaison with the selected brokerage firm, we will design a specific mailing program to targeted heads of firms, as we initiate what will become a "flow of information about the availability of the subject property, on a continuous basis throughout ,the previously described window of opportunity. Typically, these mailings do not reach the decision making individual at the time of the decision making process. Rather, they become a reference to the property again, on a continuous basis, so that when the decision to relocate is completed, the subject property is thg property which is both remembered and inquired about. RESPONSE TEAM If there is any one, singular reason which our meteoric success as a company can be attributed to, it is the speed and efficacy by which we respond to a potential user once the bona fide need has been identified and qualified. It is our way of providing the ultimate level of service in our industry. Our response time and the quality of it have been acknowledged repeatedly as what sets us apart from our competition. We have purposely not "grown" our company so that a lengthy decision making process (endemic to larger bureaucratic development companies), diminishes our ability to respond quickly and adjust frequently, so as to maintain absolute flexibility in response to the needs of the user we are dealing with. PRESENTATION MATERIALS Another hallmark of our success, which has been acknowledged by many, is the quality of materials we utilize when making a proposal to an identified "qualified user". These typically include bound proposals with reductions of site plans, floor plans, architectural renderings, construction specifications and narrative descriptions. We try to make it as easy as possible for the decision maker to recognize our commitment to quality from the beginning of our relationship and to feel comfortable with our commitment to his/her particular and specific need. Mr. James D. Prosser December 16, 1993 Page -4- PUBLIC RELATIONS We have never subscribed to the concept of institutional advertising, per se. We have found it extremely propitious to maintain cordial relationships with leading publications throughout the Twin Cities azea and the greater Midwest. We feel people reading magazines, trade publications, newspapers, etc., generally do not really read institutional advertising. However, we have determined that they do in fact read articles, articles about projects, leases, transactions, etc. Thus, will capitalize on our relationships with these publications to structure the timely release of information about the project, our relationship with the City of Richfield and the potential development of headquarter office facilities on the subject property. Historically, we have taken the best of these articles and have had reprints produced (samples enclosed) which have then become the basis for subsequent mailings, and on, and on. It is difficult to succinctly encapsulate all of the components which will produce the desired results, in a few typewritten pages. Suffice it to say, we have found what works, as evidenced by our successful results over the years, and we are committed to the application of this formula insofar as the development of the subject property is concerned. We aze proposing a Development Agreement with the City of Richfield which will have an initial term of 18 months, and which can be extended by an additional 12 month period, assuming the City of Richfield is satisfied with our efforts and/or results. Please bear in mind that the greatest expenditure of time and effort will be required at the beginning of the aforementioned window of opportunity, with the least appreciable or tangible results being produced at the beginning at of that period of time. The "peak" time frame of the window of opportunity may still be a year away however, massive amounts of spade work can be managed and accomplished so as to maximize our ability to respond to the evolving marketplace over the next 12 to 18 months. We will field and qualify all telephone inquiries about the property which may result from our signage program, marketing program, mailing campaign, telephone campaign, press releases, or which may come to the City directly (and which would be referred to us for appropriate follow-up). Mr. James D. Prosser December 16, 1993 Page -5- We will provide the City of Richfield with a written summary of .our activity on a monthly basis including, but not limited to the following information: Prospective Tenant Name Size of Requirement Timing of Need Follow-up Action Etc. We would also propose a face to face meeting with officials representing the City of Richfield on a quarterly basis in order to review our progress, results and future strategies. We will be responsible for any and all out of pocket expenses associated with the marketing plan described above. The City of Richfield will incur no direct expense for any of these efforts. We estimate that these expenses will range from $5,000 to $10,000. This will address out of pocket expenses without consideration for the investment of time we will commit to making these mazketing efforts successful. Jim, I am certain that there aze many details which have not been addressed in this proposal inasmuch as there are so many details involved with a project of this magnitude. Thus, I would appreciate the opportunity to review this proposal and address any and all details which may be appropriate to your consideration of TOLD Development Company, at your eazliest convenience. We aze excited about the opportunity of working with the City of Richfield and firmly believe that we are the right people to get the job done. Sin rely, Ralph ~. Robinson Chairman ROR/jm Enclosure HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No.4 Agenda January 18, 1994 Issue Statement: Resolutions designating official depositories for the HRA of Richfield for 1994, 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 51,000,000. 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 51,100,000. A resolution naming the Firstar Bank as the 1994 official depository. for the Richfield Housing and Redevelopment Authority is attached. to this letter. In 1993, 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 5100,000. All designated depositories have received a community reinvestment rating of "satisfactory" or better in 1993. Finally, a resolution is also attached which designates certain financial institutions as depositories for the investment of HRA Funds for 1994. 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, Prudential Securities, Piper, Jaffray & Hopwood, Shearson Lehman Brothers, Smith Barney, and Federated Investors. 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. Basis of 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. Discussion/Decision Mode: Action of the HRA is desirable at meeting so that the HRA may invest financial institutions for the yea the January 18, 1994, HRA funds in the approved r 1994 immediately. Respect lly submitted, James. Prosser Execu ve Director JDP:cak HRA RE90II~~ 1VC). A RFSOl~TPIDri DESIQ~lTIl~1G (~R`l~'Qi SAVaiGS AAID LOAN AS90GIATIONS AtID BAHICS AS DEF06ITOEtIFS F~OEt THE Il~VFSRl~NP OF TH6 IIDIISING AMID RIDEVELAPT'~NP ALTt'HORITY FtI~ID6 IId 1994 S~ pursuant to Minnesota Statutes, Section 475.66 ar~d 118.005 municipal furyds may be deposited in any Savings and Loan Association which has its deposits insured by the Federal Savings and Loan Insurarx~e Oorporation, and ~S, the amotuit of said deposits may nDt e~ooeed -the Federal Savings and Loan Insurance Corporation insurance covering. such depasits which insuraayee amotuit is presently $100,000, and fr~~iFAS, the deposit of Ho0.asing and Redev~elopt~nt Authar'ity funds in Savixygs and Loan Associations and Banks would provide greater flexibility in the Housing and Redevelopment Authar'ity~s investment program and maximi~ interest iryoo[ne the-neon. NpW, E, BE IT RESOLVID by the Housing and Redevelopnent Authority of Richfield as follows: 1. It is hereby found and determined 'that it is in the best interests of the proper management of Hausiryg and Redevelopn~.nt Authority funds that certain Savings and Loan Associations and Banks be designated as additional .depositories for Hausiryg and RedevplopnPnt Authority furyds for 1994. 2. The following Savings arxi Loan Associations and Bans are hereby designated as additional depositories for Housing and RedevelopR~ent Authority funds: NoYwest Hank Mtrmesota, NA 6445 Nioollet Avezw~e South Richfield, Misu~esota 55423 Richfield Bank & Trust C,anpanY 6625 Lyndale Avpxwe South Richfield, Minnesota 55423 Twin City Federal Banking and Savings 3330 West 66th Street Edina, Minnesota 55435 3. It is further foutxi and determined that the purpose of such depositooy designation is to facilitate the proper and advantageous itYVestment of Housing and Redevelapne~zt Authority funds and that such designation is not exclu- sive nor does it preclude the deposit of any Haasiryg and Rede~reloFxtient Authority funds in other officially desig- Hated depositories of the Housing ar~d Redevelo~nent Authority. 4. The F~ecutive Director and Finatx~e Managex are hereby authorized to deposit. Housing and E~edeveloPnent Authority funds in any or all of the depositories herein designated up to the amamt of $100,000, or such other ant as may be subsequently permitted by law, such deposits to be in the form of demand acaa~uzts for Public Unit Savings Certificates ~~~ }~, the Housing and Redevplc~tient Authority of Richfield, payable to the Haasiryg and Redevelopment Authority of Ricdifield on the signatures of the F~ecutive Director or' F; *~~ Nj3na~-r'. Pas.9ed by the Ha~sing and Redevelopment Authority of Richfield this 17th day of January, 1994. Thanas E. Harms, (~airperson ATTEST: Vern Luettirx3ex, Secx'etarY HRA RE90I~TPI~i N0. A RF90IiTPI~i DESItZ~Il~ITIldG CTIt'1T1IId FIIL IlVSTITUrII~S AS DE~OSIZ~OltIFS Fit THE IIVVESl~TP OF HOt15II~1G ArID AiTrHOl2ITY ~' gI[~rFrn FirIDS IN 1994 , the Housing and Redevelopment Authority of Richfield has Haney which is available for investment, and In~~tFAS, different financial institutions offer different rates of return on its, and ~S, the Housing and Rede~relopnent Authar'ity of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such goverrmexit secxarities in the manner required by law from the institution offering the highest 'rate to the City prnvidir~g greater flexibility in the investment program and .max; m; ze irTtereSt ir]co[ne 'ttlereorl. NSW, ZiE, BE IT RE90LVED by the Housing and Redevelopment Authority of Richfield, Miru~esota, as follows: 1. It is hereby found and determined that it is in the best interests of the proper mar~gement of Housiryg and Redevelopment Authority funds that certain f;*~m;al institutions be designated as add- tional depositories far Housing and Redevelopment Authority funds for 1994. 2. The followiryg finaT,rmial institutions designated as depositories far Housing and Redevelopment Authority funds: Richfield Bank & Trust Caripany FBS Investment Service, Iryc. Dain Bosworth, 7r~c. Fnu'iential -Securities Piper, Jaffray & Ho~xaood Shearson Leh[nan Brothers Federated Irn~estors, Trust for ShoEr~t-Tern U.S. Gwt. Securities Smith Barney 3. The Treasurer aryl Finarx5e Ntanag~er are hereby authorized to deposit Housing and RedevplgxnPxit Authority funds in arty or all of the depositories herein designated. Such deposits may be made and withdrawn friar time to time by the Treasurer oar Finarr~e Manager as his/her best judgment and the interests of the Housiryg and Redevelop<mexit Authority dictates. 4. 'I"he investment of funds arxi the r~eportiryg thereof ~x~~ant to this. resolution shall be oonduabed in aooardanoe with established policies T~'4i3'''~~xJ the investment of these funds. passed by the Fiaasing ar~d Redevelzt Authority of Richfield this 17th day of Jarniary, 1994. That~as E. Harms, Chairpersaz ATPEST: Vern Luettiryger, Secretary E~tA RE90IIlPION N0. RE90l~TPION DESI(~fTIIdG THE F'~Sl'AR B~IIC A DEP06IZ+OIZY OF FZ1~ID6 OF TF~ F~.?SING A1~ID AiITY ~ RIQ~'III~D FC~t THE YFAI2 1994 ATID APPRpVING QOLLATERAL BE IT RE.'90LVID by the Housing arr3 Redevelopnexit Authority of Richfield as follows: That, in aaaorclaryoe -with law, the Firstar Bank be, and hereby is designated a depository of the furxis of the Housing and Redevplo~xnent Authority, and subject to the following terms and oa~ditions: The said depository shall nit be required to give bonds or other ..securities for such deposits prw3.ded that the total spun tt~ex~eof shall not at any tame e~~oeed in any depositary the s~sn far which its deposits are insured tu~dex the Acts of Congress of the United States relating to insurance of bank deposits: but not in case such deposits in any such depositary shall at any time exceed such insured sum, said depositary shall immediately furnish borx~.s or othex secxarity for such excess according to law, approRred by the Housing and Redevplofxrent Authority of Richfield. That said depository shall pay on demand all deposits there: 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 FUR'ti~t ItF50LVEa, that there shall be maintained a general account in which shall be deposited all monies. Chec3cs on this account shall be signed by the following officers or their facsimile signatures. Thomas E. Harms, Chain James D. Prosser, F~ecutive Director' HE IT F~ii~t RESOLVID, that there shall be a daily intPx~st savings account. All withdra~ral.s from said aooamt will be far transfers to the gex~exal checking ac:eauzt. HE IT FUR'lf~t RE50LVID, that the collateral in the amo~mt of $1,000,000 deposited for safekeeping at the FiYStar Bank, Milwaukee, Wiscor~,sin is hereby aPP Passed by the Housing and F~edevelopnent Authority of Richfield this 17th day of January, 1994. Thomas E. HarnLS, (tai _*~~on ATTEST: Vern Lu2ttu~er, ~ SeQ~etary HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 3 Agenda January 18, 1994 Issue Statement: Designation of Official Newspaper for 1994. Background• The Richfield Sun-Current, published by Minnesota Sun Publications, has been the City's and HRA's official newspaper for several 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 1994. 1 Column width 1993 $0.72 per line - first insertion ($7.92 per inch) $0.42 per line - subsequent insertions (54.62 per inch) 1994 $0..79 per line - first insertion ($8.69 per inch) $0.44 per line - subsequent insertions ($4.84 per inch) 2 Column width 1993 $1.44 per line - first insertion ($15.84 per inch) $0.84 per line - subsequent insertions ($9.24 per inch) 1994 $1.54 per line - first insertion ($16.94 per inch) $0.89 per line - subsequent insertions ($9.79 per inch) Recommended Motion: Designate the Richfield Sun-Current as the official newspaper of the Richfield HRA for the year 1994. Basis for Recommendation: 1. The paper is delivered to each residence in the City, thereby providing City-wide coverage of legal notices to residents. 2. The paper has served well as the official newspaper for several years. 3. The paper has expressed a desire to continue to provide this service. 4. The newspaper is in close proximity to City offices if it is necessary to hand deliver legal notices before publication deadlines. Alternative Recommendation: 1. Not make a designation and request the City Clerk's office to check into using another publication, such as the Minneapolis Star & Tribune. However, this would be much more costly. Discussion/Decision Mode: This item has been placed on the January 18, 1994 HRA agenda so that a designation can be made for 1994. Respectfu ly submitted, James. Prosser Execu ive Director JDP:cak MINNESOTA ~. ~~~ PUBLICATIONS Sun•Curren"t Sun•Post Sun•Saitor December 29, 1993 Mr. Tom Ferber. City of Richfield 6700 Portland Avenue South Richfield, MN 55423 . Dear Mr. Ferber:. Please consider the Sun-Current as the city of Richfield's official newspaper .for the year 1994 at your January organizational meeting. The rate structure for legals effective. January.l, 1994 will be: i column width: $0.79 per line -first insertion {$8.b9 per inch} $0.44 per line. - subsequent insertions ($4.84 per inch} 2 column width:. $1.54 per line -first insertion ($16.94 per inch) . $0,89 per line -subsequent insertions {$9.79 per inch} Notarized affidavits on each of your. publications will be provided. Minnesota Sun Publications will accept legal notices on. diskettes. Your IBM or compatible personal computer makes it easy .for -you to submit legal notices. produced with WordPerfect, ~Wordstar or MS Word word-processing programs. Files saved. xn ASCII. are also acceptable. As this represents ~as cost- effective and efficient method far us to produce the. copy for publication, wewill offer a 15% rate discount on all notices submitted on diskettes. We recommend that other municipal departments coordinate their legal notice publishing needs with the -city clerk's office as well. All legal ads should be sent to our Bloomington office by Thursday noon preceding our Wednesday publications. In.order to expedite our service to you, please direct your legals to the attention of Meridel Hedblom, Minnesota Sun Publications, 7831 East Bush Lake Road, Bloomington, MN 5.5439. For your convenience our fax number is :896-4754. Thank you for considering the Sun-Current as your official newspaper for the ensuing year. We are honored and pleased to serve you and .look forward to a mutually beneficial working relationship with the city of Richfield.. Si cerely, ~ . Q~ , ~ ~ . Donald W. Thurlow ':Publisher Bloomington OH1ce: ?831 bast Bush Lake Road • Bloomington, MN 55439 Phs (6123 896-4700 __~_ .. _. i.~.. ~, HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 2 Agenda January 18, 1994 Issue Statement: Designation of Acting Executive Director. Background• On January~l0, 1994, 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. Basis for Recommendation: 1. A 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 ly submitted, James Prosser Executive Director JDP:ds i / HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 1 Agenda January 18, 1994 Issue Statement: Election of officers for the Housing and Redevelopment Authority. 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 1990-1993 are as follows: 1990 Thomas Harms, Chair Vern Luettinger, Vice Chair Joan Helmberger, Secretary 1991 Thomas Harms, Chair Vern Luettinger, Vice Chair Joan Helmberger, Secretary 1992 1993 Thomas Harms, Chair Thomas Harms, Chair Ivan Ludeman, Vice Chair Joan Helmberger, Vice Chair Joan Helmberger, Secretary Larry Wozniczka, Secretary (1/93-10/93) Vern Luettinger, Secretary (11/93-12/93 ) Recommended Motion: Elect officers for the year 1994. Basis for Recommendation: 1. The bylaws of the HRA require that such an election be held at the annual meeting in January of each year. Alternative Recommendation: 1. 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 18, 1994 HRA meeting in accordance with the HRA bylaws. Resp t ly submitted, Jam s D. Prosser Exe ive Director JDP:ds