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01-27-87 agendaU CITY OF RICHFIELD, MINNESOTA HRA Letter No. 6 Agenda January 27, 1987 Issue Statement: Settlement of lawsuit for property at 6520, 6530, 6532, 6540, 6544 Lyndale Avenue South and 729 West 65th Street property in the LHN. Background: In the spring of 1984, the HRA acquired title through condemnation to property owned by Mr. Gordon Strom and located at 6520, 6530, 6532, 6540, 6544 Lyndale Avenue and 729 West 65th Street, where the existing Market Plaza/Market Towers are sited. While the HRA received title to the property and sold it for redevelopment, the value of the property was in dispute. The dispute was scheduled to go before a jury trial on January 26, 1987 but as a result of discussions with Mr. Strom's attorney, HRA legal counsel, Mr. Harms the HRA Chairperson, and Mr. Prosser, HRA Executive Director, a tentative settlement was reached. Legal counsel will present further details during an executive session at the HRA meeting on January 27, 1987 Recommendation: Accept the settlement to be described by legal counsel provided that Mr. Strom has executed a stipulation. Basis of Recommendation: It would be appropriate to terminate this outstanding obligation. Alternative Recommendation: Not accept the settlement. Decision Mode: It is timely to act now or the opportunity to settle may be lost. Respectful submitted, James D. Prosser Executi e Director ~~! CITY OF RICHFIELD, MINNESOTA HRA Letter No. 5 Agenda January 27, 1987 Issue Statement: Resolutions designating official depositories for the HRA of Richfield for 1987, 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 $559,962. 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 $659,962. A resolution naming the First Western Bank as the 1987 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 1987. These institutions, such as investment brokerage firms, offer Government Securities in the manner required by law. These financial institutions include Marquette National Bank, 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. Recommendation: 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. The 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, Sub-Division 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 relation- ship with these institutions. Alternative Recommendations: 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 27, 1987, HRA meeting so that the HRA may invest funds in the approved financial Institutions for the year 1987 immediately. Respectful y submitted, James Prosser Exec ve Director JDP/sae ~~ HRA RESOLUTION NO RESOLUTION DESIGNATING THE FIRST WESTERN BANK A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY FOR RICHFIELD FOR THE YEAR 1987 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 RESOLVED, that the collateral in the amount of $559,9b2 deposited for safekeeping at the Marquette National Bank of Minneapolis, is hereby approved. Passed by the Housing and Redevelopment Authority of Richfield this 27th day of January, 1987. Thomas E. Harms Chairman ATTEST: Joan Helmberger Secretary ~-y HRA RESOLUTION NO A RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF THE HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1987 WHEREAS, 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 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, THEREFORE, 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 1987. 2. The following 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. C.Cj 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 27th day of January, 1987. Thomas E. Harms Chairman ATTEST: Joan Helmberger Secretary t!j - HRA RESOLUTION NO A RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1987 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, THEREFORE, 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 1987. 2. The following financial institutions designated as depositories for Housing and Redevelopment Authority funds: Marquette National 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 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. ~-~ Passed by the Housing and Redevelopment Authority of Richfield this 27th day of January, 1987. Thomas E. Harms Chairman ATTEST: Joan Helmberger Secretary - S_ ~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 4 Agenda January 27, 1987 Issue Statement: Designation of Official Newspaper for 1987 Background: The Richfield Sun-Current, published by the Minnesota Suburban Newspapers, Inc,, has been the city's official newspaper for many years, with legal rates as set forth by Minnesota Law. Attached to this HRA letter is a copy of a letter from the Minnesota Suburban Newspapers, Inc. requesting that they be designated the official newspaper 'for the City of Richfield for 1987. Recommendation: Designate the Richfield-Sun Current as the HRA official newspaper for the year 1987. Basis for Recommendation: 1. The paper has served well as the official newspa per for the city 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 be fore 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: As the city typically publishes legal notices each week, this item has been placed on the January 27, 1987 HRA agenda so that a designation can be made early in the year. Respectf lly submitted, Jame D. Prosser Exec tive Director JDP/eja ~~ MINNESOTA SllBllRBAN NEWSPAPERS, INC. December 11, 1986 City Council City of Richfield 6700 Portland Avenue South Richfield, MN 55423 Dear Council Members: We would appreciate your designation of the Richfield Sun-Current to be your official newspaper for the year 1987. Our rate for legal publications as permitted by Minnesota law will be 38G per line for the first insertion and ~5~-per lane for each additional insertion. All items to be published should reach this office by Thursday a.m. preceding your Wednesday publication. To assist us in providing the best. possible service, we request that you direct your publications to the attention of Meridel Hedblom, Legal Publications, 7401 Bush L ke Road, Edina, MN 55435. Two notarized affidavits will be provide of each of your publi- cations. Additional notarized affidavit , on request, will be furnished at 25~ each: Thank you for considering us as the offi ial newspaper for the City of Richfield for the forthcoming year. Very truly yours, MINNF~TA SUBURBAN NEWSPAPERS, INC. L. Canning /// P lisher Publishers of Current Newspapers, Sailor Newspapers, Sun-Current Newspapers and Focus`Newspapers 7401 Bush Lake Road • Edina, Minnesota 55435 • (612) 831-1200 CITY OF RICHFIELD, MINNESOTA HRA Letter No. 3 Agenda January 27, 1987 Issue Statement: February 16, 1987, HRA meeting to be rescheduled to February 17, 1987. Background: February 16th has been designated as a legal holiday to observe Presidents Day. Thus the HRA meeting date should be rescheduled. In accordance with Article III, Section 2 of the HRA bylaws, the meeting shall be held the next succeeding "secular day". Staff Recommendation: The HRA meeting should be rescheduled from February 16th to February 17, at 7:00 p.m. in the Council Chambers.. Basis for Recommendation: Recommendation is based upon HRA Bylaws when regular meeting date falls on a legal holiday. Alternative Recommendation: Cancel HRA February meeting Decision Mode: The January meeting is the only time a decision can be made. Respectfu ly submitted, James Prosser Exec ive Director ~,~ / HOUSING AND 'REDEVELOPMENT AUTHORITY HRA Letter No. 2 Agenda January 27, 1987 Issue Statement: Selection of a developer for the Graham Avenue area site. Background• The HRA has been presented with three development concepts for the, Graham Avenue site. Proposals were made by Walker Methodist, Trestman-Shaller, and Tushie-Derrick.. Near the end of December, 1986, Walker Methodist withdrew their proposal. The Trestman- Shaller proposal was withdrawn at the public meeting on January 21, 1987. The Tushie-Derrick proposal for a mixed use development known as Landmark Center remains. Recommendation: It is recommended that staff be authorized to initiate negotiations on behalf of the HRA with the developers of the proposed Landmark Center and that staff request. the City Council to concur in the selection of Tushie-Derrick as developer and authorize negotiations on their behalf. Basis. for Recommendation: 1. Landmark Center is a development concept which is appropriate _ for the site. The approximate distribution of floor area usage is 10.5% residential, 12.5% retail, 14.4% office- medical, 43.7% garage, 13...3% VFW., and 5.6% miscellaneous usage. The mixed use proposal would be well suited for the area.. 2. There is a market for additional office and retail space. 3. The below market rent housing would help the community achieve a long sought goal. 4. All of these uses are contained within a structure which is sensitively and attractively designed. 5. The tax increment to be generated from this site, while not a primary consideration, is favorable. 6. Using parking generation data published by the Urban Land Institute and the Institute of Transportation Engineers, BRW, the city's planning consultant, has determined the number of spaces proposed to be adequate. 7. At the January 21 information meeting, Mr. Shaller, owner of Big Wheel Auto Parts and Mr. Trestman, owner of Trestman Music, indicated they have reached agreement with Tushie- . Derrick regarding their future. Mr. Shaller has reaffirmed his intent to operate a Big Wheel retail store as a tenant of .Landmark Center. Mr. Trestman will relocate his business from the site.- Both Mr. Shaller and Mr. Trestman would become partners in the development. 8. The VFW also indicated their Conti-Hued support for the concept. Their goal is not only to be a tenant, but also part .owners of Landmark Center. 9. Mr. Hules, owner of the Cricket Photo facility, is also in support of the project, assuming he can remain on the site. ~-~ ~-~ Tushie-Derrick have worked out a tentative agreement with him as well as with the Lynch and Davis families for their property. 10. Preliminary traffic analysis indicates that with a modest level of improvements, the streets could carry the additional traffic. 11. Public utilities are adequate to handle the new building. Attached to this letter is the evaluation form initially presented to the HRA in October, 1986 and updated at each of the HRA meetings which followed in November, December, and finally this month of January. (Exhibit A) Alternative Recommendation: 1. Reject the Landmark proposal, and solicit for new redevelopment proposals which would exclude the LSD owned lot from the redevelopment. This parcel was originally purchased by the HRA and subse- quently sold to Knutson Construction Company for inclusion in the condominium site. At the time of the sale to Knutson, the HRA included restrictions in the deed which prohibited the owners from constructing any building on that site. The Condominium Association has filed a Declaration of Open Space Covenants and Easement against the property running in favor of each owner of the Lake Shore Drive Condominiums. Each owner has a perpetual, non-exclusive easement over the property. Reaching an agreement on this parcel may be difficult. Additionally, some residents of the Lake Shore Drive condominium hold the opinion that the city agreed to never permit any construction on that site. Some condominium owners also believe that the HRA has a contractual obligation to offer for purchase the Davis/Lynch properties. There was such a provision in an agreement with Knutson Construction, but it expired on June 1, 1982 Presently, Tushie-Derrick has a purchase option for the two parcels, and the NRA will not obtain title to the property. 2. Reject the proposal on the basis of concerns of the Lake Shore Drive condominiums owners that construction of the Landmark building would have an adverse impact on their property. Residents from. Lake Shore Drive have reported that their property values have decreased because of construction of Wood Lake Point and Market Towers. They fear that the Landmark Building would have a similar impact. A discussion with the city assessor indicated that he was unaware of any such decreases. Lee Maxfield, the marketing specialist retained by the HRA, has expressed some concern about values. Brad Bjorklund, an independent appraiser i 1 , ~_~ consulting with the city, has indicated that it would be difficult to justify a decrease in value for Lake Shore Drive condominium units on the basis of construction by the Landmark building. It should be noted, however, that as a result of the concerns initially expressed by Lake Shore Drive residents, the length of the east/west leg of the Landmark Center has already been shortened to minimize the impact on the condominiums. To illustrate the portion of the Landmark Building in relation to LSD, the proposed building site has been staked. Blue stakes indicate the most westerly portion of the building, which would be constructed on top of-the parking facility. The red stakes indicate the westerly portion of the original plan. 3. Abandon efforts to rehabilitate the Graham Avenue area because of neighborhood opposition. A copy of a letter recently received from Mr. Russel Helleckson, President of Lake Shore Drive Condominium Association is attached. (Exhibit B) His letter raises a number of concerns regarding the proposed development of the Graham Avenue site. Staff's response is also attached. (Exhibit C) 4. Seek modifications to the Landmark proposal. Since the Landmark proposal is a mixed use, some aspects may be modified if there are particular problems with the proposed use. However, it is also likely that some aspects of the development cannot be modified without endangering the financial feasibility of the project. A summary of remarks made at a community meeting held on January 21, 1987 is attached. (Exhibit D). Only a portion of the people who were to be invited received an invitation. Those people who were not invited to the meeting on January 21, 1987 have received an invitation to the HRA meeting on January 27, 1987, and have been invited to contact the staff if they wish to review any information prior to the January 27, 1987 meeting. Discussion/Decision Mode: The Tushie-Derrick proposal was first presented to the HRA on September 29, 1986, approximately four months ago. At each meeting since that time, there has been discussion of the concept. Virtually every issue identified to date has been examined. A final determination of some issues is appropriate only if designation of Tushie-Derrick as the developer is provided by the HRA. Some of the issues which require additional analysis include environmental assessment, traffic impact, value and purchase process for the lot owned by Lake Shore Drive, the amount of subsidy to be provided by the HRA, the amount of money the HRA is to receive in return for its assistance, the rent levels for the 48 units, the number of years rent is to be below market rate, rezoning of the site, and final design plans. ~, The City Council is requested to attend a HRA in order that they may indicate their development proposal. The City Council w their meeting of 1/26 to 1/27 for this pu ~y joint meeting of the opinion regarding this ill be asked to adjourn rpose. Respectfully submitted, Jame Prosser Exe u ive Director ~ ; EXHIBIT A PROPOSAL: TUSHIE-DERRICK (LYNDALE PARTNERS) 1. Development team: -identify members -experience with similar projects -financial capability to be determined Developer: Lyndale partners (Tushie/Derrick/Shaller/Trestman Architect: Tushie Montgomery and Associates Contractor:. Bossardt/Christianson New partnership, members of the partnership have mixed use development experience in cooperation with local government. The final membership is still being determined. 2. Brief description of overall project and comments regarding building height, location, shadows, etc. Copy of preliminary site plan and revised site plan, is attached. "Landmark Center" is a stepped 5 story mixed use development with five distinct uses: Office (31,700 square feet),. VF'vV (48,600 square feet), residential (38,300 square feet), retail (45,600 square feet) medical (21,000 square feet), garage (159,600 square feet) and circulation space all floors (14,000 square feet). Also included is 6,600 square feet of mechanical space. Total land area needed fo-r the project approximates 4.8 acres with the building set back from Lyndale Avenue and Lake Shore Drive to accommodate parking to the front. There are 282 surface parking stalls and 498 parking stalls within a privately owned ramp. The first level, primarily retail and VF'R uses, covers 55,100 square feet of floor area and is reduced to 24,900 square feet in the fifth level. The length of the east/west "leg" has been reduced to improve site lines and traffic circulation. With the reduction in length., none of the Lake Shore Drive units (LSD) would be in a shadow. Only a small portion of LSD site would be shadowed but this area is already in a shadow from the existing trees. All present uses would be relocated: VFW, Cricket Pho-to, Big Wheel, Trestman, Lynch, and Davis. The vacant lot owned by the condominium would be needed for the development. 3. Site lines; on site, off site It has been represented by the developer that the mature tree line closely approximates the fourth level of the building. However, it is not clear how many existing trees would remain. Since the development would be built directly ~'~ adjacent to LSD Condominium development, the screening,. berming and planting -that occurs to the north side of .the new building would be on LSD property for LSO to maintain. With the new design, additional landscaping and plant materials have been added along the edge of the property line shared with LSO. The rear delivery driveway and receiving area would be screened with a canopy. An intended use restriction would prevent large semi truck trailers from servicing the development. =ighteen feet of green space is provided along Lyndale with the new cricket Photo located within a corner plaza. The entire first floor of the Building is accessible from the Lyndale Avenue elevation even though the grade changes significantly along Lake. Shore Orive. Underground ramp parking will fill in :vhere the grade changes. All mechanical equipment would be enclosed in a penthouse. 4. Density; lot coverage, massing, number of housing units and parking spaces, square footage of uses, open space The building covers 55,100 square feet, approximately 26 percent of the total land area. The number of levels gives it a "mid-rise" configuration in comparison to high rise development on adjacent areas. The stepped floor arrangement 55,100 square feet on first, 47,700 square feet on second, 41,900 square feet on the third, 36,200 square feet on the fourth, 24,900 square feet on the fifth, reduces the cuilding mass to land coverage ratio. Forty eight (48) units of lower cost rental housing are proposed.: 40-1 bedroom, 2-2 bedroom, 2-1 bedroom and den, 4-efficiencies. There would be designated parking stalls for the residential use. Other uses would sham the parking referred to in Item ~~2 above. The developers have indicated they will be providing 780 parking spaces on the site. Current city parking guidelines do not address the parking needs for the VFW and a mixed use project as proposed. The planning consulting firm of BRW reviewed the proposed parking against Urban Land Institute and Institute of Transportation Engineers standards and their experience and determined it to be adequate. 5. Identification of development site Coundary: -ability to secure sits control -consensus of opinion by affected owners -resolution of site restrictions The Lyndale Partners have secured a purchase agreement from homeowners Lynch and Davis. Although Shaller, Trestman, and VFW have alT"made individual plans for there own buildings, they also appear receptive to being included in the new development. (Discussions are continuing on this item). In a land trade with the developer, the owner of Cricket Photo ~~~ould be relocated to a new building designed for the corner. ~` ~, LSD owns a key parcel in the development area. There are restrictive covenants on the LSD .parcel and other parcels which would require condemnation to eliminate. The condemnation could result in payment of damages. 6. Traffic Analysis: -offstreet parking, internal and external circulation (loading, access to various uses) -capacity of adjacent streets -conflicts with existing public street improvements Based on a preliminary analysis by staff, the Tushie/Derrick proposal may result in a portion of Lyndale Avenue (from Lakeshore Drive to 67th Street) Being over its design capacity. If left turn lanes were constructed at the Lakeshore Drive and Lyndale Avenue intersection, the design capacity would not be exceeded. The design capacity of Lakeshore Drive may be exceeded. However, if on-street parking is prohibited on Lakeshore Drive to maintain two lanes of traffic in each direction, the likelihood that its design capacity would be exceeded would be minimized. If this proposal i consultants would volumes, level of more specifically other intersection be necessary. 7. CompatiCility: s selected, additional traffic analysis by be needed concerning peak hour traffic service, and turning movements to determine .any problems and if additional signals or improvements such as turning lanes would -adjacent uses {LSD, Lyndale Hardware, Shaller-Trestman, Cricket Photo, VFW) -redevelopment district -buffering -The proposed development has accommodated the retail uses into a strip retail center. Discussions with owners and the relationship to LSD and Lyndale Hardware have been initiated and are continuing. The developer has indicated that the owner of Lyndale Hardware is supportive of their concept. Developers position• -Cricket Photo remains a separate wilding for photo studio and processing work. (Staff is not yet totally comfortable with this concept). -VF'A will be concerned if additional restaurants utilize the retail space. -~' -LS~J will have to be satisfied with the buffering and driveway uses. -~Vaste disposal to be handled internally -Cooking odors at the VF,V should Ce considered in developing final plans. 8. Marketability of use, need, lease up The developer has indicated that discussions are underway with users who are interested in approximately 53 percent of the space. Primary tanant would Ce VF~N -48,600 squats feet leased with an ownership position in the development. (The VF'N does pay property taxes) detail S?ace (45,600 square feet) The amount of retail space has been increased about 11,000 square feet to accommodate demand. -Shaller & Trestman may locate in a portion of this space "Medical (21,000 square feet) Meta Partners of Cleveland with a local office in Edina would lease this space and than suClease to professional medical people. Office (31,700 square feet) This space was reduced by almost 50~ from the original concept. The VFw and Tushie-Montgomery would occupy a portion of .this space. Housing (38,300 square fe°t) The rental housing would meet Section 8/Section 202 design requirements and ~e very affordaCle if the proposed rents ranging from $319 to $490/month can be achieved. There is a need for this type of opportunity. 9. Summary of estimated project costs: -net construction -architectural -parking -site -financing -profit y' Building Construction $10,613,000 Leasehold Improvements $ 2,008,400 Site Costs ~ 890,000 (utilities, demolition, grading, soil prep, surface parking, landscape) Land $ 2,000,000 Financing Costs $ 2,589,11.5 marketing $ 389,225 Contingency $ 1,059,462 Total 21,006,203 Requested HRA Assistance ($2,031,886) Net Development Costs $18,974,317 City/NRA subsidy could take several forms: land writedown, public improvements, tax increment interest reduction. The HRA has already incurred costs of approximately $250,000 to acquire the 3 parcels on Graham Avenue. Utility relocation would require an additional $50,000 to $75,000. Negotiations would determine who paid that expense as well as the return to the HRA for the assistance which would be provided. 10. Timing/phasing of project: A 15 month construction period is anticipat°d. Construction would likely begin during the summer of 1987. The VFW, Shaller, and Cricket ?hoto uses would remain while the ramp parking and building foundation was initiated. To permit the phasing, interim parking at other locations would have to be identified. 11. City and HRA role: -formation of tax increment district project boundary -zoning considerations -financial assistance -acquisition/clearance -displacement -public improvements An Economic Development TIF district would have to be established. It would encompass that portion of the site now within the LHN and the balance of the site. An analysis by Evensen-Dodge of the impact of deleting five parcels from the LHN indicates that all the outstanding bonds for the LHN could still be paid off by 2002 with the possibility of an early call. ,~' -/~J A $2.,031,886 subsidy is being requested, which could take the form of land writedown, installation of public improvements, and tax increment interest reduction. Thus the HRA would be involved in site assembly, however not directly in purchase negotiations. A preliminary cash flow analysis by ~vensen Dodge indicates that the project would be sslf- supporting during a period of eight years. In return, 48 units of rental housing for lower income elderly is planned... Below mar!<et rents may continue for up to 20 years. Neither Housing Revenue Bonds nor IDRB's for the commercial development would be utilized. The entire development would be privately owned. 12. Consistency with city zoning ordinance requirements The site would require rezoning to a PJD. It would arobably exceed the guidelines concerning maximum floor area. However, a variance would not be required. Also the Comprehensive Plan may require amendment. i3. Revenue to Ce realized from development including land proceeds Tax. increment. At this point, the developer has not volunteered to pay for land owned ~y the HRA. However, it is anticipated that this would be an item of negotiation. A preliminary cash flow analysis of the proposal does indicate that it would be self-supporting. The TIF district would be of 8 years duration from the receipt of the first increment. (As indicated in numbsr 9 above, the HRA has already expended approximately $250,000 in the purchase and management of 3 parcels in Graham Avenue). 14. Environmental review process-EAW required An EA'~! would be necessary because the development exceeds the 300,000 square feet building area threshold. This document would be the responsibility of the developer to be reviewed by staff prior to submittal to the City Council. 15. Demand on existing public services, puClic improvements The public Sealer and water utilities in the area are adequate to service this development. However, plans for handling /~ storm water runoff should be closely studied. If an extensive amount of public amenities would become necessary which require intensive public maintenance 3 special assessment district would be necessary similar to the LHN. The demand for emergency medical services could increase with 48 units of housing but would not require additional city personnel be hired. Additional police service should not to needed. 16. Housing element feasibility: -management -target market (low income target?) -rents -arrangement of common spaces in mixed use concept -separation from commercial uses -amenities, services, support for residents -unit size and type Developing the housing portion according to HUD's Section 202/Section requirements, would produce the lowest practical cost. The units would range in size from 430 s.f. for an efficiency to 875 s.f. for a two bedroom. The efficiency units would rent for $319/month beginning in 1988. One bedroom units would have rents at $380/month. The one bedroom plus den would rent for $437/month and the two bedroom units would be at $490/month. A community room of 2,400 square feet would be provided on the Sth floor along with a laundry. The community room would have space for a literary, and arts and crafts. Marketing and management services would be by a nonprofit health related organization. The emphasis tivould be on marketing to Richfield residents. The affordable housing option may remain for up to the life of the tax increment project that is developed to encompass the development. 17. Employment Opportunities The developer has indicated jobs on-site during construction would approximate 78. Joys in the completed office, retail, medical and VFW facilities would approximate 289. 18. Public reaction This developer has met on several or_casions with the residents of Lakeshore Drive Condominium. The residents are concerned ab"out loss of view from their living units. The revised design proposal reduces that impact. They have also met on at least one occasion with the residents of Woodlake Point. They too are concerned about. views and the impact on their units. ~~ tii~~/ ~- ~ . i~ ~ ~ . ~Sa ~ ~~ ~ .mot ^ V ~ ~ , ! r~' -\2y~~~~~i~ ~ - -1, ,.,~ ~/' ~ ". i ~~ it l ~ , - s -~.:~.~ ~: -- ~- ~ ~ ~- _ _~ J ! + ~ \~ y I~ `7 ~t ~ ~.~ . ~~~ ~~ -~..~=111 ~ ~ •~a. i a,~ ~ ~/..- ~ ~ 1 i t o- ' _ I -. ~~ ~ - ,_ i ~--~ ~ ~ ` .,~ I ` _ ; ~- ... 1 t ~~i z i, f ~ .: ~! --- .a iii ! ~ Ilt ~ If~9~ ~~ ; ta: / t, : ~ ::~:::~ ; t ~ ;; t;. :: .... . ... '. '::::':.: ......1tt' (~ r ! tt . i . i ;: t ~., 11 ,.. >,,. i i ~ ~ ! ~i It 1(I { LANDMARK CENTi:A ~OFt LYNOALE PARTTFA9 Rlthfbld Min+s~of~ ~ •- ~ ~ ~ .~ ~~ ~ ~_~° . -_ ~- .. _ -~ ,_ - -- _ ~_ - , ---- ~ _. ~~ ::,. r, ,~ i'< -- i~ %~ ;" -~~ ~~~-~ ~ ~, -, ~ ~ ~--- i ~~, \~~ ~\ ,\ ~ __ ,--~ - - - ;a: ,, ~a-; ~ ~ / ~ - ~ = 3 i i 5 / 3 i is i i ~ ~ f~: _ - - 9 ! ! E f Safi i !' a 3 as S i "xii S i iSi i Si i t l iSFi i i i3 i . \,'\ s { r \ •(s ~ !s ' i'is -- ~_i= - ;3 °~~'stz ~;- s- i 7i_ f! R ii I S =rt ~ ~p• ~. !r Sz __~ __ ,f _- ~ ~ ~- i ~ A EXY.IBIT B ~~-'f ~ BY THE LAKE SHORE DRIVE MANAGED Pvi2y~r --- - - - ~ - ___,~ HEALTH CG:i~Cil t';r""rt1 s;:_;y _ /6615 LAKE SHORE DRIVE• RICHFIELD, MINNESOTA 55423 • (612) 861-7595 CENTRAL - ~ SYSTEM ~iiy, ..._~ ~..... ,..,. v~_f Ci2rk _ P~~. S~ter~ ~._..:. December 30, 1986 Mr. Thomas E. Harms Chairman of HRA 6400 Morgan Ave. Richfield, MN 55423 Mr. Harms, The Board of Directors of Lake Shore Drive at their December 16th meeting decided not to poll our residents on the proposed development on the Graham site. We feel it would be difficult to get a true reaction. We have some residents who feel they were promised that nothing would be built that would interfere with our building. This is the real vocal group. We have a number of residents that favor an acceptable development. A large number of residents have voiced no strong opinion on this development, especially the residents on the north side of Lake Shore Drive. The Board of Directors still favor the Trestman-Shallar proposal as we stated in our previous letter to you. If the Trestman-Shallar is turned down, the choice would be between the Tushie-Derrick proposal and the Walker-Methodist proposal. In an .informal poll of the Board of Directors, the majority favor the Tushie-Derrick proposal over the Walker-Methodist proposal in case the Trestman- Shallar proposal is turned down. This is not a unanimous decision of our Board because several members do not favor either the Tushie- Derrick or Walker-Methodist proposal. Attached to this letter is a list of concerns about this development compiled by the Ad Hoc Committee appointed to Study the Proposed Development Concepts for the Graham Avenue Development Site. I am leaving Richfield shortly for a 3 month period so I will not be available for the next HRA meeting. I hope this information can be of help to your committee. / '~ T' ~./ Russel L. Helleckson President, Board of Directors Lake Shore Drive Condominium Association cc: City Manager Jim Prosser .. ,~-/S CONCERNS Potential problems arising from the Walker-Methodist and Tushie-Derrick proposals 1. If developers and/or owners cannot meet payment on the bonds, the City of Richfield must do so. 2. Hub-Nicollet-Lyndale tax increment district will require a considerable increase in this bonding to cover the proposed developments. What is Richfield's limit on this bonding? Both Moody's and Standard and Poore's weighs total indebtedness in setting credit ratings. 3. There is already a heavy concentration of seniors in the Lyndale-66th Street area. Problems this may raise are: a. Will the increased traffic adversely affect. the pedestrian traffic by seniors? b. Will there be an increase in crime, given the fact that seniors are more vulnerable to crimes against the person such as assault and rape and robbery than other groups? c. How will the concentration of seniors affect the businesses in the area, and what businesses will they attract? d. 6di11 a large population of seniors (many on fixed incomes) tend to resist future bond issues for such things as schools? 4. Since the taxes from property developed through tax increment financing must be used to pay off the bonds,-tax benefits will not accrue to Richfield for about 20 years. In the meantime will the rest of the taxpayers of the city be subsidizing the delivery of services - water, sewers, health, police, and fire - to the area? 5. Will the water and sewer systems in the Lyndale-66th area accomodate the increased demands upon them? 6. How will the increased noise and pollution levels during construction and afterwards affect Wood Lake Nature Center? 7. Since the Tushie-Derrick developers say that the subsidized. housing in their plan would be subsidized by the other (commercial) occupants of the complex rather than by federal funds, how long will that subsidy continue? Will the City Qf Richfield have to contribute to that subsidy? 8. Both the Walker and Tushie-Derrick organizations suggest housing development bonds to finance the housing components of their proposals. How will these bonds be retired from the profits from subsidized housing in either plan, if built? ih 9. How much of a demand is there for housing for seniors at the suggested rental rates in the metropolitan area? 10. Will an environmental impact statement be provided even if not required? ,~ N ^ tl• v ^~ A U M Cf' Ln ~i~+ ._ ^ Q 0 i C~~[~~~ January 16, 1987 EXHIBIT C Russel L. Helleckson President, Board of Directors Lake Shore Drive Condominium Association 6615 Lake Shore Drive Richfield, MN 55423 Dear Mr. Helleckson, Thank you for your letter of December 30, 1986 regarding the Graham Avenue site. The questions attached to that letter, which were prepared by the ad hoc committee, indicate they have been doing their job well. Accompanying this letter are answers to those questions which I hope you will find helpful. If you want to discuss any of this information further, please contact me. Sincerely, James D. Prosser City Manager cc: rred Moore Lake Shore Drive Condominium, ~~500 6615 Lake Shore Orive Richfield, MN 55423 JDP/dh telephone: 869-7521 (612) an equal opportunity employer -/~ 1. "If developers and/or owners cannot meet payment on the bonds, the City of Richfield must do so". Assuming that the question is directed at tax increment general obligation redevelopment Bonds, the statement is correct. However, there are several techniga~es used to reduce the risk and assure the city a sufficient tax increment cash flow to payoff the bonds. 1) A developer's agreement is negotiated. As a part of this process, the capability of the developer to finance the development is assessed. The agreement is a legally binding _ contract committing the developer, HRA and city to do certain things within a stated time frame. 2) There is a document known as An Assessor's Certification. It establishes the minimum market value of the property for tax purposes. The minimum market value reflects an appropriate value for both the improvements and the amount of tax revenue needed far debt __ service on the bonds. The minimum market value cannot be legally challenged. 3) There is a Deficiency Agreement. This agreement, "' within limitations established by-the IRS, requires the developer to pay cash to the city in any year that the tax revenue is less than that which is needed for debt service. Finally, and most importantly, a lender is usually involved in financing the private development. They are:concerned about protecting their investment. If a developer is unable to complete a project, it is likely the lender would step in to complete it. The Tushie- Derrick proposal has an opportunity to be very successful because between 50-60% of the rentable space has identifiable potential tenants already interested. For this site, the risk would be further reduced because it is likely the bonds would be paid off in eight years. 2. "Hub/Nicollet/Lyndale tax increment district will require a considerable increase in this bonding to cover the proposed developments. What is Richfield's limit on this bonding? 3oth Moody's.and Standard and Poore's weighs total indebtedness in setting credit ratings". It is likely that to provide a site for the Tushie-Derrick. proposal, a new tax increment project would be created separate from the Lyndale/Hub/Nicollet project (LHN). Five tax parcels would be deleted from the LHN and combined with parcels south of Auto Lane (the alley). Evensen-Dodge, a private consulting firm which advises the city on financial matters including bonds, has analyzed the impact of deleting these five parcels from the LHN. The impact is negligible. That is, it has been projected that all the outstanding LHN bonds-could be paid off by the year 2002. With the deletion of the parcels, the projected bond payoff remains 2002. (.It is possible that projected reserves could result in an earlier payoff). There is not an absolute dollar limit on the amount of bonds which may be sold. The ability of Richfield to sell bonds is based on a combination of factors. Moody's Investment Services ` ~ / rates a bond condition of itself. The bond issue to investment. issue. The rating is based upon the financial the issuer (city) and the security of the bond issue buyers in the market place look to the rating of the establish the desirability of the bonds as an In 1977 Richfield's. credit rating, by Moody's, was set at Aa. This :vas at a time when large amounts of bonds were being issued fir street improvements and the LHN. This is a very good rating as only 13 of 855 cities in Minnesota hold it. Only two cities in Minnesota hold a higher rating of Aaa. The most recent review of Richfield's credit rating was at the time of a bond sale in March of 1986. Moody's confirmed the Aa rating at that time. The amount of bonding required for the Tushie-Derrick proposal at t!~is time appears to be approximately two million dollars. 3. "There is already a heavy concentration of seniors in-the l.yndale-66th Street Area. Problems this may raise are: a. Will the increased traffic adversely affect the pedestrian traffic by seniors? It is the objective of the city to minimize the conflicts between pedestrian and motor vehicle traffic. Goals of the LHN are to encourage pedestrian traffic and, at the same time, assure pedestrian safety. A part of the redevelopment process has resulted in the installation of pedestrian crosswalks and signals and an extensive sidewalk system. A high level of maintenance provides for good snow removal services as well during the winter. However, the Tushie/Derrick proposal will increase traffic in the area. Staff is aware that some people feel there is a problem with pedestrian safety already and the Tushie/Derrick proposal will add to it. An ad hoc committee of staff people is being formed to review the situation and identify problem areas and solutions. b. Will there be an increase in crime, given the fact that seniors are more vulnerable to crimes against the persons such as assault and rape and robbery than other groups? Public Safety personnel have studied this and do not believe there will be an increase in crime because of the elderly population. They reviewed crime data for the entire city and are of the opinion that crime in Richfield has not increased as a result of the aging of the population. Secondly, crime in the LHN has decreased because the environment is generally not friendly to criminals. The new construction and renovation of privately owned buildings and public improvements has resulted in "cleaner" more visible building surfaces. All of the residential buildings in the area have a security system as a deterrent to unauthorized persons entering. c. How ~:vill the concentration of seniors affect the businesses in the area, and what businesses will they attract? The Tushie/Derrick proposal ~,vould add only 48 units of senior housing to the area. This development will be a benefit to other retail businesses in the area. It is unlikely that many _ retailers catering exclusively to seniors would locate in the area because of this additional development. The total senior population would not Ce high enough. Also many of the seniors in the area are mobile and can leave the area to conduct business at other nearby locations. Retailers are likely to be attracted to the area because of the concentration of population and the accessibility of the 66th Street and Lyndale Avenue intersection to a much larger market. The Drug Emporium is an .example. It is dependent upon a large volume of customers and is attractive to customers both young and old. The Tushie/Derrick proposal may contain a medical- office facility. Such a facility would be attracted to the area because of the population concentration and accessibility of the area to others. d. ,Vill a large population of seniors (many on fixed incomes) tend to resist future bond issues for such things -as schools? We don't know. The age and income of residents does influence their perspective on the cost of providing services to the community. 4. "Since the taxes from property developed through tax increment financing must be used to pay off the bonds, tax benefits will-not accrue to Richfield for about 20 years. In the meantime will the rest of the taxpayers of the city be subsidizing .the delivery of service - eater, sewers, health, police, and fire - to the area?" Yes, but only to a very limited extant. First it is important to understand that all of the taxing jurisdictions continue to receive revenue from the project area. The ~evenu_e__is derived from the base value of the project area. Only _the tax increment provided by the value above the base value is used to retire the bonds. Secondly as indicated above, it is likely that the development would be located within a new tax increment district. The district would exist for eight years rather than 15 to 20 years. - Experience in the LHN indicates the need for police and fire services has decreased as a result of redevelopment. Pedestrian and motor vehicle accidents are fewer, police calls resulting from potential criminal acts are down, fire calls are fewer. Because of the elderly population, the need for emergency first ~ ~/ aid has increased but has not and will. not require the purchase of additional equipment or hiring of additional personnel. Shoplifting in retail stores has increased. The sewer and water costs are paid ~y a user fee. 5. "Will the ~,vater and sewer systems in the Lyndale-66th area accommodate the increased demands upon them?" Yes. The tivater line tivas installed in the early 1960's. Its life expectancy exceeds well Ceyond 50 years. In the early 1980's, as __ part of the development of the Lake Shore Drive condominiums, the system-was upgraded by installing a "loop". The "loop" removed a dead end line in the area and means water is always available in the line from two directions. It also put the water supply closer to the main trunk line between the water plant and the water tower. The capacity of the line is more than adequate to handle the Tushie/Derrick proposal. The sanitary sewer was installed in the early 1950's. Its life expectancy exceeds well Ceyond 50 years. A main trunk line is located beneath 66th Street. The Graham Avenue site is only .about one block from the main.. The Tushie/Derrick development would use a lateral line shared possibly pnly by one or two existing commercial developments before it connects to the main. The lake Shore Drive condominium connects directly, to the main. The main has more than adequate capacity to handle the Tushie/Derrick development. 6. "How will the increased noise and pollution levels during construction and afterwards affect Wood Lake Nature Center?" We don't think the noise and pollution levels from the Tushie/Derrick project. will negatively affect Wood lake. Eor example, during the construction of the Lake Shore Drive condominiums there were no noticeable effects from noise or other pollution sources. However, upon completion, some birds were killed because while flying they hit the building. Now they have adjusted their flight pattern for the height of the structure. The contractor for the Tushie/Derrick project would be required to prevent soil laden runoff water during construction from running into the lake. Once occupied, the building shouldn't negatively impact Wood Lake either. However, before the Tushie/Derrick proposal can be constructed, it would be necessary to complete an Environmental Assessment Worksheet. The process requires that the impact of the development be studied. Its relationship to '~~ood Lake would be determined as a part of that study. 7. "Since the Tushie/Derrick developers say that the subsidized housing in their plan would be subsidized by the other (commercial) occupants of the complex rather than by federal funds, how long will that subsidy continue? Will the City of Richfield have to contribute to that subsidy?" ~~- The 48 units of housing would require a subsidy to maintain the rents at the levels proposed which may fall within the $390 to $440 range initially. Increases would likely "e tied to a formula which would assure their affordarility ~y lower income eld2rly. The length of time the developer would be required to. provide low rent would be established during negotiations on a developers agreement. The HRA vrould ce providing a subsidy to encourage this development. That subsidy and the rent from the commercial space _ would help make it aossible for the developer to offer lower rents for the housing units. Neither the HRA nor the city anticipate providing a direct rent subsidy. 8. "Both the Walker and Tushie/Derrick organizations suggest housing development Conds to finance the housing components of their proposals. How will these bonds be retired from the .profits from subsidized housing in either plan, if built?" Initially Tushie/Derrick proposed to utilize housing revenue bonds. However, at the present time they have determined not to use them. 9. "How-much of a demand is them for housing for seniors at the suggested rental rates in the metropolitan area?" The market demand far exceeds that which will be met by the 48 units in the oroject. The rents proposed. for the 48 units would make them available and affordable to a single person for example with an income between $12,000 and $16,D00. For a couple, the income range would be slightly higher. The intent of the developer would be to market these units to Richfield residents first. 10. "Will an environmental impact statement be provided even if not required?" The development would require that an Environmental Assessment Worksheet be completed (EAW). The EAW requires a study of the impact of development on the surrounding environment and public facilities such as roads and utilities. The results of an EAW are evaluataed against state guidelines to determine if an Environment Impact Statement (EIS) must be undertaken. A decision on an EIS would be made by the City Council after an EAW is completed. -~ 3 EXHIBIT D CITY OF RICHFIELD, MINNESOTA Inter-Office P~lemorandum DATE: DecemCer 11, 1986 TD: Housing & Redevelopment Authority FROM: Development Review Advisory Committee SUBJECT: Summary of Comments, Concerns and Issues expressed at 12/10/86 t4eeting. Ths Development Review Advisory Committee is a group of staff from the various administrative departments and divisions of the ~ city. They met to listen and react to a presentation of the Tushie-Derrick concept which included the use of drawings and a t'-~ree dimensional model. Following are the thoughts that were expressed during the meeting. 1) The design from a fire protection point of view appears to be good on Loth the interior and exterior. 2) °ar~cing and traffic flow should Ce closely studied to avoid congestion and other safety hazards. 3) pedestrian circulation for the entire southwest quadrant should ~e studied and for this development the crossing of Lyndale Avenue in particular. 4) Site drainage should Ce carefully planned. 5) Odor discharge from the VF~~1 kitchen should he carefully ~ thought to avoid adverse impact on the area. ~~y 6) The separation of the uses in the cuilding appears to he well _~ thought out. With proper construction, noise transmission from the VFW area :could not he a proClem. 7) The staging of the development to permit existing organizations to function during construction is good. However, it could result in serious parking proClems during construction, especially with the VFW. The developer must work out an agreement with the VFW. The options to hs explored include the susp°nsion of special events, which require consideraCle parking and the use of parking lots at other locations and a shuttle hus. The activity schedule for Mood Lake Nature Center and the VF;~I should he coordinated. Perhaps the VFW should hire traffic police personnel for i certain events. 3) Because the site must ~e rezoned and an amendment to the Comprehensive Plan may ~e necessary and an EA;~1 would he necessary as :vill as the estaClishment of a new TIF district, the planning phase for this project could he protracted. 9) For a few minutes the discussion centered on the question of the appropriateness of the concept. Is this concept simply an attempt to satisfy everyone on every issue? The collective response ~~as that there seems to he a market for the uses, the rental apartments are desiraCle if Richfield r-esidents are given priority in the occupancy of the units and the development would Ce an appropriate t entrance/exit feature for this area of "downtown" Richfield. ~-~ 10) A public information meeting should ~e scheduled to permit people in the area to express their thoughts. The :yal!~er conespt could not to evaluated as it is reing reformulated. The Trest^~an-Shaller propasal ,vas discussed Briefly. There-was agreement that while it would result in the upgrading of the property, it did not utilize the site to its Cest advantage. t~~, HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 1 Agenda January 27, 1987 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 1983-1986 are as follows: 1983 Thomas Harms, Chairman Vern Luettinger, Vice-Chair Joan Helmberger, Secretary 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 Recommendation: Hold the election to elect these officers for 1987. Basis for Recommendation: The HRA bylaws require that officers be elected 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 27, 1987 HRA agenda in accordance with the HRA bylaws. Respect ully submitted, Jam D. Prosser Exe tive Director