08-21 Regular HRA HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
�-_- _b:U,tlumctuwn
v
August 21 , 2017
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:00 p.m.
HRA Members . Mary Supple, Chair; Pat Elliott; Michael Howard; Doris Rubenstein; and
Present: Sue Sandahl.
Staff Present: John Stark, Community Development Director; and Julie Urban, Housing
Manager.
APPROVAL OF THE MINUTES OF THE REGULAR HRA MEETING OF MAY 15, 2017
M/Elliott, S/Sandahl to approve the minutes of the: (1) Regular Housing and
Redevelopment Authority meeting of July 17, 2017; and (2) Special Housing and
Redevelopment Authority meeting of August 3, 2017.
Motion carried 5-0.
Item #1 HRA APPROVAL OF THE AGENDA
M/Elliott, S/Sandahl, to approve the agenda.
Motion carried 5-0.
Item #2 CONSENT CALENDAR
Executive Director Devich presented the consent calendar.
A. Consideration of the approval of a resolution consenting to the inclusion by Inland
Development Partners/Chamberlain LLC of certain property with respect to land use
approvals (S.R. No. 28).
M/Elliott, S/Howard to approve the consent calendar.
Motion carried 5-0.
Item #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR
None.
HRA Meeting Minutes -2- August 21,2017
Item #4 CONSIDERATION OF THE APPROVAL OF A RESOLUTION AUTHORIZING THE
PURCHASE OF REAL PROPERTY AT 6409 16TH AVENUE (S.R. NO. 29)
Housing Manager Urban presented staff report no. 29 regarding the purchase of property
located at 6409 16th Avenue.
In response to a question from Commissioner Sandahl, Dan Schertner(property owner)
explained that he was asking for$205,000, $7,000 more than the appraised value of$198,000,
based on his review of current listings, because of the uncertainty of redevelopment plans, and due
to the negative impact of the changing character of the neighborhood.
Commissioner Howard stated that meeting in the middle between Mr. Schertner's original
request of$210,000 and the appraisal was reasonable.
M/Rubenstein, S/Howard to approve a resolution authorizing the purchase of real property
at 6409 16th Avenue in the amount of$205,000.
Motion carried 5-0.
Item #5 CONSIDERATION OF APPROVAL OF A RESOLUTION APPROVING A LOAN TO
AEON SEASONS PARK LLC IN THE AMOUNT OF $150,000 TO ASSIST WITH
THE PURCHASE OF THE SEASONS PARK APARTMENT COMPLEX. (S.R. NO.
30)
Community Development Director Stark presented staff report no. 30.
Blake Hopkins, Project Manager for Aeon, explained the plans to purchase the complex
and Aeon's tenant criteria. He explained that 100 percent of the building would be affordable at 60
percent of the area median income (AMI).
Commissioner Elliott confirmed that that income requirement would provide sufficient cash
flow to maintain the building.
Commissioner Howard asked for details regarding rehabilitation plans. Mr. Hopkins
explained that immediate issues, such as flooding impacts, would be addressed right away but that
other improvements would happen over time. He stated that Aeon is talking to a variety of
organizations regarding funding for the rehabilitation work.
Discussion followed regarding affordability levels and the 4d tax classification. He asked
that the HRA offer some latitude to staff and the HRA Attorney to make some adjustments to the
loan documents. Chair Supple clarified that three issues would be changing: changing the
affordability level to 60 percent AMI, qualifying tenants by income at initial lease-up only, and that
Aeon would be required to accept Section 8.
M/Howard, S/Rubenstein to approve a resolution approving a loan to Aeon Seasons Park
LLC in the amount of$150,000 to assist with the purchase of the Seasons Park apartment
complex(living staff discretion to work out the details of the loan documents to require that 20
percent of the units be affordable at 60 percent AMI, tenants be income-qualified initially only, and
a minimum of 9 units be reserved for Section 8 tenants.
Motion carried 5-0.
Item #6 CONSIDERATION OF THE APPROVAL OF RESOLUTIONS APPROVING
PROPOSED PROPERTY TAX LEVY FOR PAYABLE 2018 FOR CERTIFICATION
TO HENNEPIN COUNTY (S.R. NO. 31)
HRA Meeting Minutes -3- August 21,2017
Community Development Director Stark presented staff report no. 31 and gave a
presentation on the proposed Housing and Redevelopment Authority budget.
Executive Director Devich gave an update on the Penn Avenue liquor store remodeling.
M/Rubenstein, S/Sandahl to approve a resolution approving proposed property tax levy for
payable 2018 for certification to Hennepin County.
Motion carried 5-0.
Item #7 CONSIDERATION OF THE RATIFICATION OF AN ESCROW AGREEMENT IN
WHICH THE HOUSING AND REDEVELOPMENT AUTHORITY AGREE TO PAY UP
TO $30,000 FOR REMEDIATION OF ENVIRONMENTAL CONTAMINATES AND
$1,400 FOR WELL-SEALING ON PROPERTY SOLD TO INTERSTATE
DEVELOPMENT LLC BY THE HOUSING AND REDEVELOPMENT AUTHORITY
FOR DEVELOPMENT OF THE PLAZA 66 COMMERCIAL DEVELOPMENT. (S.R.
NO. 32)
Community Development Director Stark presented staff report no. 32.
M/Sandahl, S/Elliott to ratify an Escrow Agreement in which the Housing and
Redevelopment Authority agree to pay up to $30,000 for remediation of environmental
contaminates and $1,400 for well-sealing on property sold to Interstate Development LLC by the
Housing and Redevelopment Authority for development of the Plaza 66 commercial development.
Motion carried 5-0.
Item #8 HRA DISCUSSION ITEMS
Community Development Director Stark clarified that the Cedar Point II market analysis has
not been completed yet.
Item #9 EXECUTIVE DIRECTOR REPORT
None.
Item #10 CLAIMS AND PAYROLL
M/Elliott, S/Howard, that the following claims and payroll be approved:
U.S. BANK 8/21/17
Section 8 Checks: 128969-129058 $150,110.06
HRA Checks: 33174-33219 $307,729.80
TOTAL $457,839.86
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:14 p.m.
HRA Meeting Minutes -4- August 21,2017
Date Approved: September 18, 2017
Filitaz
_.Ma S413. e jeAdel.,
tor I . 1 ,,A14
H' A Gh.1r ( c
lie Urban tev¢ Revich
'using Manager Exet utive Director
•