01-21-92 agenda
•
HOUSING AND REDEVELOPMENT AUTHORITY
JANUARY 21, 1992
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF NOVEMBER 18, 1991
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. CONSIDERATION OF ELECTION OF OFFICERS FOR THE HOUSING AND
REDEVELOPMENT AUTHORITY FOR 1992
HRA LETTER NO. 1
3. CONSIDERATION OF DESIGNATION OF ACTING EXECUTIVE DIRECTOR FOR
1992
HRA LETTER NO. 2
4. CONSIDERATION OF DESIGNATION OF OFFICIAL NEWSPAPER FOR 1992
HRA LETTER NO. 3
5. CONSIDERATION OF RESOLUTIONS DESIGNATING OFFICIAL
DEPOSITORIES FOR THE HRA OF RICHFIELD FOR 1992, INCLUDING
APPROVAL OF COLLATERAL
HRA LETTER NO. 4
6. CONSIDERATION OF RESOLUTION AUTHORIZING SUBMISSION OF AN
APPLICATION FOR THE MINNESOTA HOUSING FINANCE AGENCY
BLIGHTED RESIDENTIAL PROPERTY ACQUISITION AND REHABILITATION
PROGRAM
HRA LETTER NO. 5
7. EXECUTIVE DIRECTOR REPORT
8. CLAIMS AND PAYROLL
ADJOURNMENT
0
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 5
Agenda January 21, 1992
Issue Statement:
Authorization to submit an application for participation in the
Minnesota Housing Finance Agency's (MHFA) Blighted Residential
Property Acquisition and Rehabilitation Program (Blighted
Property Program).
Background:
The 1991 legislature authorized the Blighted Property Program and
allocated $1.75 million to be available state wide. The program
provides grant funds to local communities for the acquisition and
demolition or acquisition and rehabilitation of blighted
properties. The program is somewhat similar to the_Richfield
Rediscovered and Vo-Tech Housing Programs. However, eligible
properties must be located in a specifically designated
neighborhood or area and identified by the HRA as being blighted.
Upon completion, the improved property must be sold to a
household with a maximum adjusted gross income of less than
$48,000.
This grant program represents a unique opportunity .to achieve
objectives which are similar to those of existing programs. The
competition for funds will be keen and they will not likely be
. available again. Funds would be used to acquire blighted
property on a voluntary basis, clear the substandard structures,
and sell the lot to a builder. Approximately $290,000 would be
requested to treat approximately five properties. Any funds
recovered through proceeds of sale could be used as a revolving
fund for perhaps one or two additional acquisitions.
The designated neighborhood would be the area identified as
Redevelopment Project Area "A" and a small portion of
Redevelopment Project "B" in the Richfield-Rediscovered Program.
The area north of 66th Street between Lyndale and Nicollet was
added to the designated neighborhood as it was not within "A" or
"B". It is important to note that the only purpose of this
designation is to establish an area in which MHFA program funds
could be expended. (See attached map.) Approximately 34
substandard properties in this area have been offered for sale to
the HRA during 1991.
Properties would be evaluated to determine blight in accordance
with Minnesota Statute Section 469.174, Subdivision 10. The
contents of the statute is attached. This is the same standard
applied to properties considered for the Richfield-Rediscovered
Program.
The income limit requirement is the only significant variation
between the Blighted Property Program and Richfield-Rediscovered.
This requirement is not expected to adversely limit potential
buyers. It is anticipated that homes built on sites where
. Blighted Property Program funds are used, would have values of
$85,000 to $95,000. This price range is affordable to households
with $35,000 to $48,000 incomes. No specific family size
requirements or first time home buyer requirements apply to the
Blighted Property funds.
Recommended Motion:
1. Authorize the submission of a $290,000 grant application to
MHFA for the Blighted Property Program.
2. Authorize the definition of blight for program purposes as
that represented in Minnesota Statute Section 469.174.
3. Authorize the designated neighborhood as indicated on
Exhibit A.
Basis for Recommendation:
1. The State has made grant funds available which are
ideally matched to existing programs of the HRA.
2. Eligible properties are available within an identified
neighborhood.
3. The HRA has a process in place, through the Richfield
Rediscovered Program, which could be followed.
. 4. The grant could be administered by existing staff.
Alternative Recommendation:
Do not authorize staff to submit an application for the Blighted
Property Program. .
Discussion/Decision Mode:
An application must be submitted to MHFA by January 31, 1992.
Respect ly submitted,
James Prosser
Execut ve Director
JDP:ds
0
Definition of Blight For the Blighted Residential
Property Acquisition and Rehabilitation Program
For program purposes, blight shall be defined in accordance with
Minnesota Statute Section 469.174, Subdivision 10, as follows:
"Structurally substandard" building is defined as containing
defects in structural elements or a combination of
deficiencies in essential utilities and facilities, light
and ventilation, fire protection including adequate egress,
layout and condition of interior partitions, or similar
factors, which defects or deficiencies are of sufficient
total significance to justify substantial renovation or
clearance. A building is not structurally substandard if it
is in compliance with the building code applicable to new
buildings or could be modified to satisfy the building code
at a cost less than 15 percent of the cost of constructing a
new structure of the same square footage and type on the
site.
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HRA RESOLUTION NO.
i TO AUTHORIZE THE SUBMISSION OF AN APPLICATION
FOR THE MHFA BLIGHTED RESIDENTIAL PROPERTY
ACQUISITION AND REHABILITATION PROGRAM
WHEREAS, the Minnesota Housing Finance Agency (MHFA) is
making available grants to local governments for the improvement
of blighted properties in designated neighborhoods; and
WHEREAS, the Richfield HRA is desirous of securing a grant
of $290,000 to further a program of acquisition and clearance of
blighted property; and
WHEREAS, the grant requires that a neighborhood be
designated and the neighborhood identified on Exhibit A attached
hereto has been considered by the HRA; and
WHEREAS, the grant requires that blight be defined and the
HRA has considered that blight will be determined in accordance
with Minnesota Statute, Section 469.174, Subdivision 10; and
WHEREAS, purchasers of new homes constructed on sites
acquired and cleared with the MHFA program funds are required to
have gross incomes not to exceed $48,000, adjusted.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
• Redevelopment Authority that:
1. Staff is authorized to submit an application for the MHFA
Blighted Residential Property Acquisition and Rehabilitation
Program.
2. The neighborhood identified on the attached Exhibit A is
the "Designated Neighborhood".
3. Blight is defined in accordance with Minnesota Statute,
Section 469.174, Subdivision 10.
4. Purchasers of new homes will have incomes not to exceed
$48,000, adjusted.
5. The Executive Director and Chairperson are authorized to take
all actions necessary to access and utilize funds received
through the MHFA Program.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 21st day of January,
1992.
0 ATTEST:
Thomas E. Harms, Chair
Joan Helmberger, Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 4
Agenda January 21, 1992
Issue Statement:
Resolutions designating official depositories for the HRA of
Richfield for 1992, 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
$1,000,000. 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 $1,100,000. A resolution naming the Firstar Bank as the
1992 official depository for the Richfield Housing and
Redevelopment Authority is attached to this letter.
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.
Finally, a resolution is also attached which designates certain
financial institutions as depositories for the investment of HRA
Funds for 1992. These institutions, such as investment brokerage
firms offer government securities in the manner require by law.
These financial institutions include Richfield Bank and Trust
Co., Marquette Bank Minneapolis, Merrill Lynch, Dain Bosworth,
Prudential Bache, Kidder, Peabody, Norwest Investment Services,
Piper, Jaffray & Hopwood, Shearson Lehman Brothers, and State
Street Bank & Trust.
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 the January 21, 1992, HRA
meeting so that the HRA may invest funds in the approved
financial institutions for the year 1992 immediately.
Respect lly submitted,
Jame D. Prosser
Executive Director
JDP:ds
BRA RESOLUTION NO.
RESOLUTION DESIGNATING THE FIRSZAR BANK A DEPOSITORY
OF FUNDS OF THE DOUSING AND REDEVELOPMENT AUTHORITY FOR
RICHFIELD FOR THE YEAR 1992 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 sum 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 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 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 the collateral in the amount of $1,000,000
deposited for safekeeping at the Marquette Bank, is hereby approved.
passed by the Housing and Redevelopment Authority of Richfield this 21st
day of January, 1992.
Thomas E. Harms, Chairperson
ATTEST:
0 Joan Helmberger, Secretary
BRA. RESOLUTION NO.
A RESOLUTION DESIGNATING 6MTAIN FnMNCIAL INSTITUTIDriS
AS DEPOSITORIES FOR THE INVE~SDOM OF HOUSING AND
REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1992
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 City providing greater flexibility in the investment
program and maximize interest income thereon.
NOW, nHHWORE, 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 interests
of the proper management of Housing and Redevelopment Authority
funds that certain financial institutions be designated as add-
tional depositories for Housing and Redevelopment Authority funds
for 1992.
• 2. The following financial institutions designated as depositories
for Housing and Redevelopment Authority funds:
Richfield Bank & Trust Campany
Marquette Minneapolis Bank
Merrill Lynch, Pierce, Fenner & Smith, Inc.
Dain Bosworth, Inc.
Prudential - Bache
Kidder, Peabody & Canpany
Norwest Investment Services
Piper, Jaffray & Hopwood
Shearson Lehman Brothers
State Street Bank & Trust, Trust for Short-Term U.S.
Government Securities
3. The Treasurer is hereby authorized to deposit Housing and Redevelop-
ment Authority funds in any or all of the depositories herein de-
signated. Such deposits may be made and withdrawn from time to time
by the Treasurer as his/her 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.
0
is 21st
•
. BRA RESOLUTION NO..
A RESOLUTION DESIGNING CERTAIN SAVINGS AMID
IRAN ASSOCIATIONS AND BANKS AS DEPOSITORIES
FOR THE INVESTMENT OF THE ROWING AND REDEVELOPMENT
AUTHORITY FUNDS IN 1992
6aMUM5, 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
WHEMS, 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, R4HUU7ORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield as follows:
1. It is hereby found and determined that it is in the
best interests of the proper management of Housing and
Redevelopment Authority funds that certain Savings and
• Loan Associations and Banks be designated as additional
depositories for Housing and Redevelopment Authority
funds for 1992.
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 Housing and Redevelopment
Authority funds and that such designation is not exclu-
sive nor does it preclude the deposit of any Housing and
• Redevelopment Authority funds in other officially desig-
nated depositories of the Housing and Redevelopment
Authority.
4. The Executive Director is 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 E?oecxtive
Director.
Passed by the'Housing and Redevelopment Authority of Richfield this
21st day of January, 1992.
Thanas E. Harms, Chairperson
ATTEST :
Joan Helmberger, Secretary
0
0
CITY OF RICHFIELD, MINNESOTA
HRA Letter No.3
Agenda January 22, 1992
Issue Statement:
Designation of official newspaper for 1992
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 1992.
Recommended Motion:
Designate the Richfield Sun-Current as the official newspaper of
the Richfield HRA for the year 1992
Basis for Recommendation:
1. The paper has served well as the official newspaper for many
years.
2. The paper has expressed a desire to continue to provide-this
service.
3. The newspaper is in close proximity to City offices if it is
necessary to hand deliver legal notices before publication
deadlines.
4. The paper is delivered to each residence in the City, thereby
providing city-wide coverage of legal notices to residents.
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.
Discussion/Decision Mode:
This item has been placed on the January 22, 1992 HRA agenda so
that a designation can be made for 1992.
Respectfu submitted,
James D rosser
Execu i e Director
JDP:ds
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 2
Agenda January 21, 1992
Issue Statement:
Designation of Acting Executive Director.
Background:
On January •13, 1992, 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:
That the HRA move to designate Steven Devich, Director of
Administrative Services, 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 designation of
is depositories and 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.
Respectfully submitted,
James. Prosser
• Execu i e Director
JDP:ds
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No.1
Agenda January 21, 1992
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 1988-1991 are as follows:
1988 1989
Thomas Harms, Chair Thomas Harms, Chair
Vern Luettinger, Vice-Chair Vern Luettinger, Vice-Chair
Joan Helmberger, Secretary Joan Helmberger, Secretary
1990 1991
Thomas Harms, Chair Thomas Harms, Chair
Vern Luettinger, Vice-Chair Vern Luettinger, Vice-Chair
Joan Helmberger, Secretary Joan Helmberger, Secretary
Recommended Motion:
• Elect officers for the year 1992.
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:
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, 1992 HRA meeting
in accordance with the HRA bylaws.
Respect y submitted,
James Prosser
Execu ' e.Director
JDP:ds
0