03-17-86 agenda~~ /
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 10
Agenda March 17, 1886
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: LHN Plan Amendment No. 5
Commissioners:
This letter requests HRA referral of plan amendments to the
Planning Commission for two locations in the LHN. The first.
site is at 6th Street on the east side of Lyndale Avenue. The
second location is at Graham and Lyndale Avenues.
6th Street Site
The property between 6~+th Street and-65th Street on Lyndale
Avenue was originally identified as a location for multi-family
housing. Subsequently., it was deemed an inappropriate site
because of its size and configuration. The owners of this.
property, Mr. Oreck for the northern parcel and Mr. Ahlquist for
the southern parcel, have or are renovating their property. It
would be appropriate to modify the land use plan map to indicate
a commercial land use for this area. (See the attached map).
Graham and Lyndale Avenue
The second site is at Graham and Lyndale Avenues.
Originally in 1975, this area was identified for purchase by the
HRA for redevelopment. It was to become part of a home
improvement center concept involving both Lyndale Hardware-and
Lyndale Garden Center. However, in 1979, this concept was.
dropped and the Plan was amended to show rehabilitation of the
two commercial structures (Big Wheel and Trestman Music).
Graham Avenue was to be vacated and additional commercial space
constructed in the former right-of-way.. The three buildings,
Big Wheel, Trestman Music and the new structure, were to be
"united" in terms of a unified facade treatment. Parking would
be located at the rear, on a portion of the vacated Graham
Avenue and the three parcels owned by the HRA, which would be
sold to the .developer.
Over the years, staff worked with Mr. Shaller and Mr.
Trestman, owners of Big Wheel and Trestman Music respectively.
However, in spite of_ the interest of prospective tenants, the
two owners have been unable to initiate a viable project in
this area.
~-~
In early 1985, the Walker Methodist Residence and Health
Services, Inc. expressed .interest in developing rental housing
for the elderly in the community, and indicated an interest iri
this site. Because of this interest and the lack of progress.
on the potential commercial improvements, staff did not
continue to pursue commercial rehabilitation.
Walker has been attempting to assemble a development team to
pursue housing on this site, and undertook a market study.. A
study questionnaire was circulated to the HRA in the fall of
1985. The response to the questionnaire was much greater than
anticipated. However, the system for processing the data was
not designed to handle the 36% return rate. Thus, the results.
have not been compiled as of this date, but are expected to be
available soon.
On October g, 1985 Mr. Shaller inquired about the status of
his property and the balance of the site. He indicated that he
would be willing to pursue the initial plan so he could retain
his business..
It would be appropriate to modify the land use plan now
(See the attached map). The modification would simply identify
the appropriate land use for the site as commercial and/or multi-
family. Thus, either the existing commercial could continue
with renovation as envisioned in 1979, new commercial could be
constructed, or, housing could be developed.
The process for this modification is time consuming in that
three bodies must act on it, the HRA, Planning Commission and
City Council. The Council must hold a hearing with a ten day
publication requirement. By processing this modification now,
it would shorten the schedule for processing a housing proposal
if one is forthcoming.
Recommendation
It is recommended that the HRA request the Planning
Commission to make a finding as to the conformance of the
proposed land. use plan amendments with the Comprehensive Plan at
their earliest convenience. After completion of that process,
the HRA will be asked to take formal action on the proposed
amendments.
'Res e fully submitted,
~~~
n evic
Acting Executive Director
SLD/e ja
-~
MODIFICATION N0. 5
THE LYNDALE-HUB-NICOLLET COMMERCIAL
IMPROVEMENT PROGRAM
"Amendments to the Lyndale-Hub-Nicollet Commercial
Improvement Project," approved March 12 , 1979 by the Housing and
Redevelopment Authority, and, the City Council. on March 26,
1979, is hereby modified as follows. The Land Use ~iap, page 31
is hereby modified for the following:
The property lying between Circle Place and Auto
Lane adjacent to the west .side of Lyndale Avenue, known as
Lots 1, 2, and 3, Block 2, Fairwood Shores Addition,
and, Lots 1, 2, 3, 4, and 5, Block 3 Fairwood Shores
Addition, also Graham Avenue, the adjoining Circle Place
and the right-of-way adjoining Lot 5 on the west
from Commercial to Commercial and/or Multi-Family, and;
The property lying between o4th and 65th Streets adjacent
to the east side of Zyndale Avenue except Block 2, J. N.
Hauser's Second Addition, from Multi-Family to Commercial..
7
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HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 9
Agenda March 17, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: LHN Report
Commissioners:
Submitted with this letter is a copy of the recently
completed LHN Report - Ten Years and $81,000,000 of
Investments. The report will be reviewed at the March 17,
19 6 HRA meeting by city staff.
This report, which is a comprehensive analysis of the L/H/N,
includes:
o A chronology of significant events
o A comparison of the original 1975 plan with
redevelopment through 1985
o Exhibits
o Evaluation of Impact on Community
o Expenditure and Revenue Analysis
o Debt Service Cash Flow
o Penn Avenue and 66th Street Study Area
The overall-cash flow analysis of the entire tax increment
district can be found on page 9~ of the report, and indicates
that an entire project can be successful while individual
projects .may not be.
Res etfully submitt ,
~/~ ~.
ev n L. evich
Acting Executiv Director
SLD/eja
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 8
Agenda February 18, 1986
Housing and Redevelopment
Authority Commissioners
City. of Richfield
Subject: Consideration of a Request of National Coalition
of Redevelopment Agencies to Support Their
Lobbying Efforts to Preserve the Issuance of
Redevelopment Bonds
Commissioners:
The tax reform bills presently before Congress eliminates
the tax exempt status of redevelopment tax increment bonds. Tax
increment bonds are critical for the economic growth and
revitalization of cities and, in many cases, represent the
single most important remaining financing tool left to local
officials.
The National Coalition. of Redevelopment Agencies is request-
ing that municipalities contact national `legislators to seek
their support to remove redevelopment bonds from state volume
caps. A copy of the communication received from the Coalition
is attached to this letter.
It is recommended that. the
to contact Senators Durenberger
support in maintaining the tax
tax increment bonds.
JGC/eja
HRA direct the Executive Director
and Boschwitz to request their
exempt status of redevelopment
R pectf bmitted,
ohn G. ar fight
Executi e Direetorl
NC
RA
National Coalition of Redevelopment Agencies
States Authorizing
Redevelopment Tax
Increment Financing: 1301 Pennsylvania Ave, NW, Suite 503 Washington, D.C. 20004 Telephone (202) 639-8830
1986
February 7
Alabama ,
Alaska Issue N O . 3
Arkansas
Subject: '~CRA activities in :vashington, D.C. this week.
California
Colorado Senate testimony. *~eed for your action now.
Connecticut
Florida
Illinois Dear COlieacue:
Indiana
Iowa
Kansas At the req.~e=t of the ~t~or,al Coalition cf edevelop-
Maine meat Agencies and others, Senator Pete Wilson
Maryland (Calif.-R.) opened the Senate rinance Committee hearings
Michigan on tax reform .this week with testimony calling for
Minnesota '°"'•S~^}e '""t of y~e t~~,--=?:e-%ut S~atuS Or ''2..eVe10U^,•ent
Missouri -a?: -'":..- _ ='?~ ~_.~_, w~_c~: are effect:-~ _~ eiir•.:ina~ed
Montana for n'oS- ^~°=,C1e= ~~' t_',e '-;Oi:SE verSlOn of tax reform,
V
'~raska Se:,ator k•ilson e^~:phasi zed how critical rede-
H.R. 383E.
_vada velopment bonds are for the economic growth and revital-
Ne.wJersey ization of cities and. that, increasingly, redevelopment
New Hampshire and tax lncrc-^ent bonds represent the single most impor-
NewMexico font remaining tool left to local officials. He also
New York underscored the di fferznce between conduit financing
North Dakota such as industrial dev2ioament bonds anc tax supported
Ohio redeveioaa[ient bonds. In response to Senator Wilson's
Oregon testimony, Senators Durenbercer (Mint..-R.), Chafee
Rhode Island (R.I .-R.) , Grassiey (Iowa-R.) , Baucus ('!ont.-D.) and
South Carolina Bentsen (Texas-D.) individually thanked Senator Wilson
South Dakota for ra~ sing the redevelop~~er.t bond iss~.:e ar~d commented
Tennesee favorably that the committee sho;:Ic pres_rve this mu-
Texas nieipal financing tool.
Utah
Washington Zt was apparent to the redzveiop:r~ent agency officials in
Wisconsin attendance t'r,at these Senators had been effectively
Wyoming lobbied by redevelopment officials f-tom their own
states. The Committ~~ Chairman, Senator .Robert
Packwood, made no comment.
Earlier in the week, or, '~9on av ^eb. 3 at the NLC of-
fices, redevelopment officials from Graacn, "'exas, Iowa,
Minnesota, Cciorado, Ltah, Illinois, anc California held
the first "grass roots" strategy session o* ~CRz. Sev-
oral lobby=~:o ob_ecti v?s were ide.nt=r~e~, the ?*ost
_-~~nortant O_ w^~.^~'1 ~S ~he "'e2d fOr cTl ?~_-C'.._ no-.::QidS-
~~r-ed io~~~~ti~r:c ef~or+ to reT,c;,c ~_:.~.e=:;~-~=nt bonds
r
~:.~,~~:,~e caNs 1^ ~ ^a~e -,-=. ~~on of tax
_,--,~; sy~}e
i% e Je
The Coalition was initiated by Redevelopment Agencies Eor thepurpose of re[aining Federal Tax Exempt Tax Increment$ond Financing. It operates in
conjunction with the National League of Cities. NAHRO. [hevarious State Municipal Leagues. and ocher concerned organizations
reform so we can go into a hostile conference committee
with maximum bargaining strength.
The Senate Finance Committee staff is moving rapidly
ahead with the drafting of a tax reform bill beginning
Feb. Z0. It seems likely, however, that the Committee
members themselves may not take the issue up until the
1987 budget, a growing federal deficit and. the need for
a revenue increase are addressed.
It is urgent that city and redevelop~~~ent agency offi-
cials contact their Senators and their respective Repre-
sentatives immediately, calling their attention to the
drastic impact of the elimination of tax-exempt redevel-
opment bonds -- effective January 1, 1986 if H.R. 3838
is actually adopted. Not enough cities or agencies have
responded to date to this request for Dersonal contact
and letters on the issue of redevelopment bonds.
Representatives of the National Coalition of Redevelop-
ment H~_nces have traveled to ri'ashington D.C. twice in
the last ~»to anc one iici~ fi.OL?t~S to arcue our c,se
before the stall IileIP.~erC o. .he "Mouse 'v.avs and Means
Committee, the Joint Tax Committee and !the Senate
Finance Committee. After perhaps ten hours of explana-
tion and rebate, it is clear that the Committee staff
will. continue to be extre~r~ely hostile and will advocate
and indeed draft legislation which will so severely
restrict the issuance of redevelopment bonds as to close
down their use. On the other hand, when we talk to our
Congressmen and Senators, we find support after our case
is presented. Preserving redevelopment bonds outside a
State volume cap appears achievable, but only if ex-
traordinary political Iobbving is done at the level of
elected officials. We urge you to act as soon as possa-
ble.
Please report the results of youz meetings and any
follow-',:p actions {such as meetings between your Sena-
tors and Senator Packwood; to Milt Farrell {916/448-
8760) or David 3ones {202/539-8830). Thank you for youz
help in this important matter.
Sincerely,
,y __
Milton R. Farrell
Chairman
MRF:dmo
Lnclosure