01-19-88 agenda'" /
CITY OF RICHFIELD, MINNESOTA
HRA Letter No. 8
January 19, 1988 Agenda
Issue Statement:
Consideration of a resolution approving a redevelopment plan and
tax increment financing plan for the Cedar Avenue Business Area
Redevelopment Project (CABA), requesting the City Council to
conduct a public hearing, and, recommending approval of the plans
by the City Council.
Background:
This resolution is being presented for consideration by the HRA
on January 19 in anticipation that the plan documents transmitted
by the HRA earlier in the evening to the Planning Commission will
be returned that same evening with their findings as to the
conformance of the plans to the Comprehensive Plan. The Planning
Commission is scheduled to meet on January 19 at 7:30 p.m. in
City Hall to consider this matter as well as other items.
The resolution approves the plans, finds them to be in
conformance with state statutes, acknowledges the opinion of the
Planning Commission, requests the City Council to call a public
hearing and approve the plans, and directs that copies of the
plans be transmitted to the county and school districts.
Another significant element of this project is the developer's
agreement. It is now being negotiated. The redevelopment and
tax increment plans which would be approved by the adoption of
the attached resolution contain the basic ingredients of the
developer's agreement such as amount and type of assistance to be
provided, and, the nature of the development. It is anticipated
that the agreement will be ready for review and action by the HRA
on February 16, 1988.
Recommended Motion:
Adopt the attached resolution approving a redevelopment plan and
tax increment financing plan for the Cedar Avenue Business Area
Redevelopment Project (CABA), requesting the City Council to
conduct a public hearing, and, recommending approval of the plans
by the City Council.
Basis of Recommendation:
1. The plans conform to statutory requirements.
2. The purpose for establishing the project and the nature
of the proposed redevelopment has been reviewed and discussed
by the HRA.
3. The opinion of the Planning Commission has been received.
Alternative Recommendations:
1. Delay action on the resolution until a future date.
2. Not adopt the resolution now or in the future.
i
Decision Mode•
With adoption•of the resolution on January 19, t
would be requested at their January 25 meeting t
public hearing for February 22, 1988. Action by
the plans must be completed prior to initiation
by the developer. The developer has indicated a
construction in March.
he City Council
o set the date of
the Council on
of construction
desire to begin
Respectf ly submitted,
Jame D. Prosser
Executive Director
~~~
RESOLUTION N0.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
Resolution approving the Undertaking of the Cedar Avenue Business
Area Redevelopment Project; and Establishment of a Tax Increment
Economic Development District Located within the Redevelopment
Project; Approving the respective Redevelopment Plan and Tax
Increment Financing Plan; Requesting the Richfield City Council
to call for public hearing thereon; and Recommending approval of
the Plans to the City Council
WHEREAS, the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota (the"HRA") proposes to undertake
the Cedar Avenue Business Area Redevelopment Project (the
"Redevelopment Project") and establish a Tax Increment Economic
Development District (the "Tax Increment District") to be located
within the Redevelopment Project, pursuant to and in accordance
with Minnesota Statutes, Sections 469.001 to 469.047, inclusive,
(the "Housing and Redevelopment Authority section"), and
Minnesota Statutes, Sections 469.174 to 469.179, inclusive (the
"Tax Increment Financing Section"of the Economic Development
Act); and
WHEREAS, the HRA on its own initiative has prepared a
Redevelopment Plan ("the Redevelopment Plan") for the
Redevelopment Project in accordance with the Housing and
Redevelopment Authority section and a Tax Increment Financing
Plan ("the Tax Increment Financing Plan") for the Tax Increment
District in accordance with the Tax Increment Financing Section;
and
~/, ~
WHEREAS, prior to the HRA's determination to undertake a
Redevelopment Project, the HRA is required to apply to the
governing body of the city in which the project is located for
approval of which application shall be accompanied by a
Redevelopment Plan, statement of method proposed for financing
the project, and written opinion of the planning agency, pursuant
to Minnesota Statutes, Section 469.028, subd. l; and
WHEREAS, the Redevelopment Plan and Tax Increment Plan have
been referred to the Richfield Planning Commission which by
action taken on January 19, 1988, Resolution Number , has
commented on the Redevelopment Plan and Tax Increment Plan and
found them to conform to and not be in conflict with the general
plan for the development of the City as a whole; and
WHEREAS, City Council of the City of Richfield, (the "City")
is required to hold a public hearing thereon after published
notice in a newspaper of general circulation in the municipality
at least once not less than ten days nor more than 30 days prior
to the date of the hearing, pursuant to Minnesota Statutes,
Section 469.028, subd. 1; and
WHEREAS, the HRA is required to transmit a copy of the
Redevelopment Plan and Tax Increment Plan to the County Board of
Commissioners and school board of any school district which any
portion of the proposed tax increment district is to be located
and to advise the Commissioners of the County Board and the
members of such school boards of the HRA's intention to approve
the Redevelopment Plan and Tax .Increment Plan and notice of
public hearing to be held by the City, pursuant to Minnesota
Statutes, Section 469.175, subd. 2.
,-~ / _ ~--
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners
of the HRA as follows:
1. The HRA finds and determines that the objectives of the
Housing and Redevelopment Section and Tax Increment Section and
the City's and HRA's objectives for the redevelopment of the
Redevelopment Project area will be accomplished by the adoption
and implementation of the Redevelopment Plan and Tax Increment
Plan.
2. The Redevelopment Plan and Tax Increment Plan are hereby
approved and adopted.
3. The HRA requests the City to call for a public hearing to
consider the approval of the Redevelopment Plan for the
Redevelopment Project and Tax Increment Plan for the Tax
Increment District and to cause notice of said public hearing to
be given as required by law.
4. The HRA hereby authorizes and directs its Executive Director
to transmit a copy of the Redevelopment Plan and Tax Increment
Plan to the Hennepin County Board of Commissioners and the school
board of Independent School District No. 280 and the governing
body of the Vocational Technical School, and to advise all board
members of the HRA's approval of the Redevelopment Plan and Tax
Increment Plan on the date hereof and the City's intention to
consider approval of the Redevelopment Plan and Tax Increment
Plan at its public hearing.
5. The Executive Director is authorized and directed to submit a
certified copy of this resolution and the Redevelopment Plan and
Tax Increment Plan to the City for consideration and to inform
the City that the HRA recommends adoption thereof.
%` ~-~
6. The HRA also intends to request the City from time to time to
consider various other land use approvals necessary to the
implementation of the Redevelopment Plan and Tax Increment Plan,
and the exercise of other powers which the City is authorized to
exercise on behalf of and in conjunction with the HRA.
7. The HRA pledges its cooperation to the City in carrying out
the Redevelopment Plan and Tax Increment Financing Plan.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield this 19th day of January, 1988.
Thomas E. Harms, Chairman
ATTEST:
Joan Helmberger, Secretary
D`
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 7
Agenda January 19, 1988
Issue Statement:
Resolutions designating official depositories for the HRA of
Richfield for 1988, 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 First Western Bank is pledging collateral in the amount of
$764,877. 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 $864,877. A resolution naming the First Western Bank as
the 1988 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 1988. These institutions, such as investment brokerage
firms, offer government securities in the manner required by law.
These financial institutions include Marquette Bank Minneapolis,
Merrill Lynch, Dain Bosworth, Prudential Bache, Kidder Peabody,
Miller Schroeder, Norwest Investment Services, Offerman & Company
Services, Piper, Jaffray & Hopwood, State Street Bank & Trust,
and Kansas National Investments.
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. T e HRA is required by Minnesota Statute 475.66 and
118.005, to designate as a depository of funds, insured
banks or thrift institutions as defined in Section
518.01, Subdivision 3, Minnesota State Statutes. Any
collateral so deposited is accompanied by an assignment
pledged to the HRA in the amount specified in the attached
resolutions.
~~ ~~
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 19, 1988, HRA
meeting so that the HRA may invest funds in the approved
financial institutions for the year 1988 immediately.
Respectfully submitted,
Jam s D. Prosser
Executive Director
JDP/e j a
d i a ~~
HRA RESOLUTION NO
A RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS
AS DEPOSITORiES FOR THE INVESTMENT OF HOUSING AND
REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1988
W~IEItEAS, the Housing and Redevelopment Authority of Richfield has money
which is available for investment, and
w different financial institutions offer different rates of
return on investments, and
WfiEREAS, 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, THEREFiORE, 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 1988.
2. The following financial institutions designated as depositories
for Housing and Redevelopment Authority funds:
Marquette Minneapolis Bank
Merrill Lynch, Pierce, Fenner & Smith, Inc.
Dain Bosworth, Inc.
Prudential - Bache
Kidder, Peabody & Company
Miller Schroeder
Norwest Investment Services
Offerman & Company, Inc.
Piper, Jaffray & Hopwood
State Street Bank & Trust, Trust for Short-Term U.S.
Government Securities
Kansas National Investment
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 tune 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.
7 ~ ~ ~~
Passed by the Housing and Redevelopment Authority of Richfield this 19th
day of January, 1988.
Thomas E. Harms Chairman
ATTEST:
Joan Helmberger Secretary
~_ V /~
HRA RESOLUTION NO
RESOLUTION DESIGNATING THE FIRST WESTERN BANK A DEPOSITORY
OF FUNDS OF THE HOUSING AND RIDEVELOPMENT AUTHORITY FOR
RICHFIELD FOR THE YEAR 1988 AND APPROVING COLLATERAL
BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield as
follows:
That, in accordance with law, the First Western 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. RESOLVID, that the collateral in the amount of $764,877
deposited for safekeeping at the Marquette National Bank of Minneapolis, is
hereby approved.
Passed by the Housing and Redevelopment Authority of Richfield this 19th
day of January, 1988..
Thomas E. Harms Chairman
ATTEST:
Joan Helmberger Secretary
f /' ,Y /~
HRA RESOLUTION NO
A RESOLUTION DESIGNATING CERTAIN SAVINGS AND
LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES
FOR THE INVESTMENT OF THE HOUSING AND REDEVErAPMEN'i'
AUTHORITY FUNDS IN 19$8
Wf~3EREAS, pursuant to Minnesota Statutes, Section 475.66 and 118.17,
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
WHEREAS, 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
WI-~RE11S, 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, THEREFnRE, 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 1988.
2. The fallowing Savings and Loan Associations and Banks
are hereby designated as additional depositories for
Housing and Redevelopment Authority funds:
First Minnesota Savings
6445 Nicollet Avenue South
Richfield, Minnesota 55423
Midwest Federal Savings & Loan Association
3100 West 66th Street
Edina, Minnesota 55435
Twin City Federal Savings and Loan
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.
~~y
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 Executive
Director.
Passed by the Housing and Redevelopment Authority of Richfield this
19th day of January, 1988.
Thomas E. Harms Chairman
ATTEST:
Joan Helmberger Secretary
~~"/
CITY OF RICHFIELD, MINNESOTA
HRA Letter No. 6
Agenda January 19, 1988
Issue Statement:
Designation of Official Newspaper for 1988
Background-
The Richfield Sun-Current, published by the Minnesota Suburban
Newspapers, Inc., has been the city's and HRA's official
newspaper for many years, with legal rates as set forth by
Minnesota Law.
Recommended Motion:
Designate the Richfield-Sun Current as the Housing and
Redevelopment Authority's official newspaper for the year 1988.
Basis for Recommendation:
1. The ,paper has served well as the official newspaper for the
city `and HRA 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 hall 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 newspaper, such as the
Minneapolis Star and Tribune.
Discussion/Decision Mode:
This item has been placed on the January 19, 1988 HRA agenda so
that a designation can be made for the year 1988.
Respectfully submitted,
James Prosser
Execut e Director
n ~
CITY OF RICHFIELD, MINNESOTA
HRA Letter No. 5
Agenda January 19, 1988
Issue Statement:
Process for selection of a planning consultant, Penn Avenue and
66th Street area (PASSS).
Background•
The approved HRA budget contains funds to initiate planning
activities in the area of 66th and Penn Avenue. The lack of an
overall planning framework focused on this area has hampered
staff in responding to redevelopment interest therein.
A study team drawn from the residents and business people of the
area on either side of Penn Avenue between the Crosstown and 67th
or 68th would help in delineating the parameters of the study.
A consultant would be selected from firms experienced in
redevelopment planning and its components including land use,
marketability, traffic and finance including tax increment
financing.
The consultant would be expected to work with the HRA, the study
group and staff to finalize a redevelopment strategy for the
area.
Attached to this letter is a list of the consulting firms from
which staff would request credentials and resumes. Following
review of the material, the appropriate firms would be
interviewed and a recommendation made to the HRA to hire a firm.
Recommended Motion:
Authorize staff to proceed with consultant selection and to make
a recommendation for hiring a firm at the February or March HRA
meeting.
Basis of Recommendation:
1. The HRA approved a budget which proposed the hiring of a
consultant to formulate a strategy for improving the
physical environment of the Penn Avenue and Sixty-sixth
Street area.
2. Interest in redevelopment has been expressed by some
property owners in the area.
3. A developer has indicated interest in redevelopment in this
area. It is important to establish planning standards to
guide staff in review of redevelopment proposals.
Alternative Recommendation:
1. Delay initiating the process for consultant selection
until a future date.
2. Not hire a consultant.
I ~ ~
Decision Mode•
-Some property owners have already begun to study the
redevelopment potential of their property. It would be
appropriate to select a consultant to formulate an overall plan
and framework within which redevelopment by private interests
could proceed.
Respectfully submitted,
Jame Prosser
Exec tive Director
~~ ~~
Cedar Corporation
Suite 203
275 S. Third St.
P.O. Box 530
Stillwater, MN 55082
Dahlgren, Shardlow and Uban, Inc.
Consultant Planners
Suite 102, 1 Groveland Ter.
Minneapolis, MN 55403
Barton-~schman Associates, Inc.
1610 S. Sixth St.
Minneapolis, MN 55454
Toltz, King, Duvall, Anderson
& Associates, Inc.
Suite 2500
American National Bank Bldg.
St. Paul, MN 55101
BRW
700 S. 3rd St.
Minneapolis, MN 55415
Urban Planning and Design
7300 147th St. W.
Suite 504
apple Valley, MN 55124
Wehrman Consultants Associated, Inc.
5217 Wayzata Blvd.
St. Louis Park, MN 55416
Yaggy Colby Associates
4590 Scott Trail
Suite 201
Eagan, MN 55122
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 4
January 19, 1988 Agenda
Issue Statement:
Authorization of an amendment to the Richfield Rehabilitation
Deferred Loan repayment agreement which modifies the manner in
which some property owners may repay the loan.
Background;
The~HRA's Richfield Rehabilitation Deferred Loan program provides
CDBG funds as loans to lower income homeowners. Each Richfield
Rehabilitation Deferred Loan is subject to a Repayment Agreement.
The principal amount of the loan, with no accrued interest, is
due only when property is sold or transferred.
From time to time, property is purchased based on a contract for
deed. When this occurs, the resident/owner applying for loan
funds (the vendee) and the owner/contract holder (the vendor)
must both execute the. repayment agreement. A Deferred Loan
cannot be facilitated without the signature of the fee owner
(vendor) on the Repayment Agreement. In the event that a vendee
defaults on a contract for deed, the vendor must repay the full
amount of the loan- in a lump sum payment.
In some instances, vendors refuse to sign repayment agreements
because of the risk of immediate large amounts of debt should a
vendee default. However, a Rehabilitation Deferred Loan is often
the only funding available to a vendee to make necessary home
improvements. Without the vendors signature, these funds cannot
be provided to low-income homeowners in need.
A situation as described, has recently arisen. Staff, with
assistance from legal counsel, has explored alternatives and
devised a solution that can be used on a case by case basis.
An amendment to the Repayment Agreement has been drafted by legal
counsel. This amendment has also been reviewed and accepted by
Hennepin County, the review administrator for Richfield CDBG
activities. In the event that a contract for deed vendor
retakes possession of property due to default, this amendment
would allow the vendor to repay the loan in monthly installments,
with interest, rather than in a lump sum payment.
The administrative procedures are summarized as follows:
-The amendment would be offered whenever a vendor refuses to
sign the standard Repayment Agreement and/or represents to
the HRA an inability to repay the loan amount in a lump sum
payment.
-The loan will be amortized over a 7 year period.
-Staff will determine the payment schedule and arrange for
collecting payments.
~r / ) J/
-The rate of interest will be equal to the average rate of
interest on ten year United States Treasury Notes for the
week during which the Amendment to Richfield Rehabilitation
Deferred Loan Agreement is executed. For example, during
the week January 4-8, 1988, the annual interest rate would
have been 8.85 percent.
Interest and principal payments
as program income. The HRA has
apply for these funds each year.
are returned to Hennepin County
an opportunity to competitively
Recommended Motion:
Adopt the attached resolution authorizing the amendment to the
Rehabilitation Deferred Loan Agreement as described.
Basis of Recommendation:
1. Provides an alternative to assist a low-income homeowner in
immediate need, to obtain rehabilitation funds.
2. Improves the HRA's ability to provide funds to low-income
homeowners in need.
Alternative Recommendation:
Not authorize the amendment to the Repayment Agreement. This
would prevent some lower income owners from securing funds
because a contract for deed vendor refuses to participate.
Decision Mode:
HRA authorization of the amendment to the Deferred Loan Repayment
Agreement allows a client presently requesting assistance to
proceed with rehabilitation work.
Respectfully submitted,
Ja D. Prosser
Ex cutive Director
~~"°Z--
HRA RESOLUTION N0.
RESOLUTION AUTHORIZING AMENDMENT TO RICHFIELD
REHABILITATION DEFERRED LOAN REPAYMENT AGREEMENT
WHEREAS, the Richfield Housing and Redevelopment Authority
has a Rehabilitation Deferred Loan program which utilizes CDBG
funds to assist lower income homeowners with rehabilitating their
homes; and
WHEREAS, loans are subject to a Repayment Agreement; and
WHEREAS, in some instances, program applicants are contract
for deed vendees; and
WHEREAS, in those instances, the fee owner (contract for
deed vendor) and the vendee must sign the Repayment Agreement to
facilitate a°Deferred Loan; and
WHEREAS, a contract for deed vendor must repay the full
amount of the Deferred Loan in a lump sum payment if he retakes
possession of the property due to a vendees default on the
contract for deed; and
WHEREAS, contract for deed vendors may refuse to sign the
Repayment Agreement due to the risk of immediate large amounts of
debt should the vendee default on the contract for deed; and
WHEREAS, an amendment to the Repayment Agreement has been
prepared by legal counsel which:
-allows a contract for deed vendor to repay a Deferred Loan
in monthly payments, with interest, rather than in a lump
sum payment
-the rate of interest will be equal to the average rate of
interest on ten year United States Treasury Notes for the
week in which the amendment is executed
-the term shall be seven years
WHEREAS, the HRA has had an opportunity to review this
amendment.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota, that the Executive Director is authorized to execute
amendments to the Richfield Rehabilitation Deferred Loan
Repayment Agreement as described herein.
Passed by the Housing and Redevelopment Authority of
Richfield, Minnesota this 19 day of January, 1988.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
.~ ~7`
CITY OF RICHFIELD., MINNESOTA
HRA Letter No. 3
January 19, 1988 Agenda
Issue Statement:
Consi eration of status of redevelopment proposal for the
Graham/Lyndale/Lakeshore Drive area.
Background:
On January 27, 1987 staff was directed to negotiate a developers
agreement with Derrick-Tushie. The selection of this team was
preceded by months of evaluating several proposals for the
redevelopment of the Graham Avenue, Lakeshore Drive area.
Derrick-Tushie presented a proposal designed to house a mix of
uses.
In late August, 1987 the Woodlake Point mortgage foreclosure
raised financial viability issues regarding Mr. Derrick on the
proposed project.
As a result, Mr. Derrick was requested on October 2 to provide
further background and financial information. Mr. Derrick failed
to comply by letter of October 23 and was informed by Chairman
Harms and Director Prosser that it was imperative that
documentation of financial capability be submitted on his own
behalf or in conjunction with another developer by December 11.
The deadline was subsequently extended to the January HRA
meeting. Mr. Derrick was advised if this deadline was not met the
HRA would consider directing staff to locate another developer
for the area.
Mr. Derrick initiated discussions with Mr. Stuart Nolan of the
Stuart Corporation who is an active developer of apartments and
commercial space in the Twin Cities. Mr. Nolan would become the
managing general partner of the proposed Landmark. Centre
development. To our knowledge, no final agreement has been
negotiated.
Mr. Derrick will be attending the January 19 HRA meeting to
present a status report. Mr. Nolan will be contacted by staff
prior to the meeting to ascertain the status of the negotiations.
Mr. Nolan, in a recent meeting with staff, has indicated that if
he does become the managing general partner, he woul"d reevaluate
the mix of the development. He is especially concerned about the
amount of office space proposed.
Consideration should be given to the remarks made by Mr. Derrick
and the report from Mr. Nolan.
Recommended Motion:
1. Direct staff to continue working with Derrick-Tushie and
Nolan with specific timeframes for completion of an
agreement.
.~~_,
Alternative Recommendation:
1. Withdraw Derrick-Tushie as the developer and direct staff
to seek another developer.
Respectf submitted,
James Prosser
Executive Director
~ ~
CITY OF RICHFIELD, MINNESOTA
HRA Letter No. 2
January 19, 1988 Agenda
Issue Statement:
Transmittal of Cedar Avenue Business Area (CABA) redevelopment
and tax increment finance plans to the Planning Commission for
their opinion as to the conformance of the proposed land use,
purchase and sale of property with the City's Comprehensive Plan.
Background_;_
In December HRA Commissioners received preliminary information
regarding the proposed redevelopment of the old Cedar Avenue
liquor store site.
Mr. DuFresne of the Lincoln Companies will be at the January 19,
1988 meeting of the HRA to review his proposal and respond to
questions.
He is proposing to construct a $5 million, three story and
basement office facility and a parking structure. The office
would contain 88,200 square feet with 376 parking spaces on site;
361 of which would be in the three story parking structure. A
portion of the parking structure is below grade.
Total annual gross taxes from the development would approximate
$252,199 with an average tax increment of about $235,966.
To facilitate the development, 67th Street would be vacated. The
two curb cuts utilized by American Family Insurance would be
closed and a new one installed on Cedar Avenue.
For the dwelling at 6701-03 18th Avenue, a driveway from 18th
Avenue on a portion of the vacated right-of-way would permit
continued access to the parking pad at the rear of the property.
A fence and landscape materials would be installed to buffer the
CDP development from the residence. The developer would also
work out an agreement with these two property owners for use of
their portion of the vacated right-of-way for CDP.
Mr. DuFresne would develop the project for ownership and
occupancy by Copy Duplicating Products (CDP). CDP sells and
services copy duplicating equipment. Initially they would employ
approximately 240 people on site with that number increasing to
approximately 280 in a few years. The current lease of CDP in
Bloomington, MN reportedly expires on 10/31/88, thus requiring
that construction start in March for timely completion.
The HRA is being asked to assume a role in the redevelopment of
this site because CDP is seeking tax increment assistance in the
amount of $850,000. The HRA is the appropriate authority under
state statute for administering this assistance in the context of
a tax increment project.
~~~/
CDP could build in an outlying suburb and purchase a larger site
for the cost of the two acre liquor store parcel. With a larger
site, they could avoid the additional development of a three
story office building and the construction of a parking
structure.
The additional cost of building on the Cedar site has been
reported to approximate $1.5 million. CDP is requesting that a
portion of this additional cost be offset by tax increment
financing. There are several unique features to the proposal to
utilize tax increment financing:
1. The tax increment would be utilized for no more than eight
years, the first tax payment from this development would
be received in 1990 and continue through 1997.
2. No bonds would be sold. CDP would receive an annual
payment of $106,250 from 1990 through 1997 for a total of
$850,000. Considerable savings would be achieved because
there would be no capitalized interest, and, no fees
related to a bond sale.
A neighborhood meeting was held on Thursday, January 7, 1988 at
7:00 p.m. Mr. DuFresne presented the CDP proposal to the dozen
or so neighbors in attendance (a letter inviting people to the
meeting was mailed to approximately 250 households and businesses
in the vicinity of the site and absentee property owners).
Generally, the response was favorable. No one objected to the
project. A summary of the questions and answers is attached.
An interdepartmental group of staff people has also reviewed the
project. ,Their response was generally favorable. Several
changes were recommended and agreed to by the developer.
Recommended Motion:
Authorize the Executive Director to request the Planning
Commission, at its January 19, 1988 meeting, to provide their
findings as to the conformance of the proposed land
use/circulation plan, and acquisition and disposition plans with
the Comprehensive Plan.
Basis of Recommendation:
1. In the opinion of legal counsel, the plans conform to
statutory requirements .
2. The plan will facilitate the redevelopment of a vacant
underutilized parcel of land.
3. Additional jobs and tax revenue will be generated.
4. The response from neighbors to the development at a recent
meeting was favorable.
5. Staff response to the proposal following review has also
been favorable.
6. Taxing jurisdictions could share immediately in the increased
value and the developer assistance will be provided only for
a maximum of 8 years.
~i ~ ~~
Alternative Recommendation:
1. Delay referral to the Planning Commission.
2. Refuse to support the development and the administration
of the project.
Decision Mode-
l. The applicant has requested that approval be provided so that
construction must be initiated by early March, 1988. To
meet that request, the HRA would need to refer the plans to
the Planning Commission January 19, 1988.
2. The Planning Commission has scheduled a special meeting for
7:30 p.m. on January 19 to accept the referral from the
HRA and to consider such for a finding on January 19.
The HRA would then be in a position to approve the plans as
an agenda item later in the meeting on the 19th and
authorize the Executive Director to transmit such to the City
Council.
Respectfully submitted,
Jame D. Prosser
City Manager
JDP/dkh
T, ~
EXHIBIT A - NEIGHBORHOOD MEETING QUESTIONS AND ANSWERS
"Eighteenth Avenue will become a speedway with the closing of
67th Street, perhaps a stop sign should be installed at 67th
Street or possibly 68th Street".
This issue has been referred to the city's traffic committee
which will study the need for a sign.
"Where will construction workers park"? The developer is
exploring this item.
"Will the ramp be secure so that children and teenagers cannot
utilize it for play"? The developer indicated the lower two
levels will be secure.
"What will the operating hours be"? Generally they will be 8
a.m. to 5 p.m. Monday through Friday with individuals working at
other hours according to the developer.
"Will lights shine onto the nearby residential property"? The
developer indicated there will be no lights directed at
residential property. The light standards on the upper ramp
level will be directed downward from poles located in the middle
of the ramp. A wall at the edge of each floor of the ramp will
be high enough to prevent automobile headlights from shining out
into the residential area.
"Where will the dental office employees who now park on the
liquor store site park when construction is initiated"? Staff
replied they have been requested to identify an alternative
location (at the present time, on-street parking on the west side
of 18th is prohibited between 8:00 a.m. and 4:30 p.m. Parking on
the east side is not restricted.
"Will the existing row of evergreens be maintained"? Although
that was the initial intent, professional foresters have
determined the trees are mature and diseased. Their life
expectancy is short. They could be retained or removed and
replaced with a berm and trees which would grow to an acceptable
height to shield the parking structure. (If the existing trees
were removed, the removal could be delayed until construction of
the improvements was almost complete).
The issue was not clearly resolved at the meeting as people made
no statements supporting either position. The developer has
proposed removal and a three foot high berm landscaped with six
foot Black Hills Spruce and 2-1/2" caliper Sugar Maples.
~~
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 1
Agenda January 19, 1988
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 Chairman, Vice-
Chairman, and Secretary of the HRA be elected at this meeting.
Officers for the years 1984-1987 are as follows:
1984
Thomas Harms, Chairman
Vern Luettinger, Vice-Chair
Joan Helmberger, Secretary
1985
Thomas Harms, Chairman
Vern Luettinger, Vice-Chair
Joan Helmberger, Secretary
1986
Thomas Harms, Chairman
Vern Luettinger, Vice-Chair
Joan Helmberger, Secretary
1987
Thomas Harms, Chairman
Vern Luettinger, Vice-Chair
Joan Helmberger, Secretary
Recommended Motion:
H-old an election and elect these officers for 1988.
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 placed on the January 19 HRA agenda in
accordance with HRA bylaws.
Respectfully submitted,
Jame Prosser
Exec ive Director