02-18-86 agendaHOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 7
Agenda February 18, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Status Report Republic Airlines Credit Union and
Henning Developments At Cedar Avenue Liquor Store
Site
Commissioners:
At the City Council meeting of January 27, 1986, the City
Council requested the City Manager to contact Republic Airlines
Credit Union regarding the status of their building project at
the Cedar Avenue liquor store site because of the announcement
of the proposed acquisition of Republic Airlines by Northwest
Airlines.
On Monday, February 3, 1986., Bob Hall of the Republic
Airlines Credit Union contacted the City Manager and advised
him that the credit union wished to put their project "on hold"
until April 1, 1986. A copy of the communication from Republic
Airlines Credit Union is attached hereto for your information.
The credit union is seeking City Council approval to postpone
action on the project until April 1 so that an assessment on the
long-long term plans for the credit union can be made.
The city staff does not believe that such a delay would be a
negative factor in developing the site. It is also in the
city's best interest to obtain the best possible
development for this site. It is the writer's understanding
that the Northwest Airlines Credit Union facility may also be
too small. If there is a possibility that the two credit unions
could merge and build a larger facility at the Cedar Avenue
site, this would certainly benefit the intensity of development
which is being sought for the Cedar Avenue site. Of course,
there is also the possibility that if the two credit unions
merge,. they might seek another site.
City staff does not recommend going ahead at this time with
only the liquor store and the additional retail space proposed
to be built by Bill Henning and Company. This type of piecemeal
development may preclude the most favorable type of developmen t
for the site, and there is already an excess of strip
commercial development on East 66th Street. The city still has
the option of going with a building for Republic Airlines
Credit Union, or a building serving a merged Republic Airlines
and Northwest Airlines Credit Union, or to negotiate with the
Lincoln Companies for an office service center building. Also,
staff believes it is important to coordinate the design of the
liquor store building with the major building that is to
be built on this site.
Based on this information, the City Council agreed to wait
until April 1,•1986, before taking further action on the
redevelopment of the Cedar Avenue liquor store site.
Re ectfu bmitted,
hn G. Ca wrig
Executive Di ec o
JGC/eja
ti
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REPUBLIC AIRLINES EMPLOYEES' CREDIT UNION
ATL SFO SEA MSP DTW MEM
February 3, 1986
t1r. John Cart~~iright
City I~ianager
City of Pichfield
6700 Portland Ave. So.
Richfield, MN 55423
Dear A1r. Cartwright:
The Board of Directors of the Republic Airlines Employees
Federal Credit Union met in special session January 30 to
evaluate how the pending acquisition of Republic Airlines
by Northwest Airlines will affect our credit union. The
.• Board concluded that insufficient inforr:ation was available
at this time, and asked that negotiations :.pith the City of
Richfield on the development agreement for the c6th and
Cedar site be postponed until April 1, 1986. The Board
feels that the intervening time should be adequate to
gather further information, assess alternatives and rake a
decision that is in the best interests of the cit}• and the
.credit union.
tJe will appreciate your favorable consideration of this
request, and we regret any inconvenience this unexpected
development may have caused for the-City of Richfield.
Please give us your decision in writing so I may share it
with the Board.
Since ly,
~~ ,~-~
Robert L. Hall - Vice President
Marketing and New Services
Copies Playor Hamilton
Council Members
Peter Orlins
l Board of Directors
6 12/ 8 5 a- 2 1 1 3
TWO APPLETREE SOUARE-SUITE 20C
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 6
Agenda February 18, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: First Amendment to Contract For Private
Development For The Hampton Inn, ILN Area.
Dear Commissioners:
On December g, 1985, the HRA and City Council approved a
contract with PALSCO, Inc. for the construction of a Hampton
Inn within the ILN area at 77th Street -and Lyndale Avenue. The
Contract must now be amended.
The Hampton Inn was to be developed on a site which included
the to be vacated frontage road right-of-way. A restaurant was.
contemplated for a portion of the right-of-way. This was based
on earlier support from MNDOT that they would vacate .the right-
of-way. However, at a meeting in December, 1985, with Mr.
William Crawford, the District Engineer for~this area, staff was
told that there would not now be support for the permanent
vacation of the frontage road right-of-way because of the
possible future need to widen I494. Even though MNDOT would not
release its highway easement for the frontage road which runs
across the southerly portion of this site, Mr. Crawford did
indicate that he would look favorably upon issuing a temporary
right-of-way use permit to PALSCO for two year periods. That
is, MNDOT would cease to use the right-of-way for road purposes,
and permit PALSCO to utilize the area for site open space. This
would be done on the basis of a temporary use permit. In the
revised agreement, the HRA and City pledge their best efforts to
help PALSCO obtain the right to use this right-of-way from
MNDOT. In the future, MNDOT may decide it does not need all
or a portion of the right-of-way easement and would then
permanently vacate it in favor of PALSCO.
The First Amendment reflects the position of MNDOT and the
revised plans of PALSCO. Only the motel would be built at this
time. It would be a 149 unit, 5 story Hampton Inn {previously
the concept was a 146 unit four story building or a five story
135 unit structure with a freestanding 150 seat "family" type
restaurant).
Everything in the December 9, 1985, contract remains
unchanged except for the items contained in the First
Amendment. Below is a comparison of the Contract and the First
Amendment provisions.
1. Contract 2.1(b)
Project The construction and development of a motel
facility and related parking facilities and site improvements by
the Developer on the Project Property pursuant to the Project
Plan. The Project may also include the construction of a
restaurant as shown on the approved Project Plan.
First Amendment 2.1(b)
Project - The construction and development of a 1~9 unit
motel facility and related parking facilities and site
improvements by the Developer on the Project Property pursuant
to the Project Plan.
2. Contract 3.2(b)
The HRA will use its best efforts to cooperate with Developer in
its efforts to obtain the release of the highway easement
running in favor of the State of Minnesota over and across the
southerly portion of the Project Property.
First Amendment 3.2(b)
The HRA will use its best efforts to cooperate with the
Developer in its efforts to obtain the release of the highway
easement running in favor of the State of Minnesota over and
across the southerly portion of the Project Property; provided,
however, that the failure of the Developer to secure the release
of such easement shall not in any way release or diminish the
obligations of the Developer pursuant to this Agreement.
3. Contract 3.3(d)
The City will utilize its best efforts to cooperate with the
Developer in its efforts to obtain the release of the easement
running in favor of the State of Minnesota over and across the
southerly portion of the Project Property.
First Amendment 3.3(d)
The City will use its best efforts to cooperate with the
Developer in its efforts to obtain the release of the highway
easement running in favor of the State of Minnesota over and
across the southerly portion of the Project Property; provided,
however, that the failure of the Developer to secure the release
of such easement shall not in any way release or diminish the
obligations of the Developer pursuant to this Agreement.
4. Contract 5.1
Section 5.1. Construction of the Project. The Developer
agrees that it will construct the Project on the Project
Property in accordance with the Project Plans which plans are
hereby approved or any modification thereto approved by the City
and the HRA and will at all times operate, maintain, preserve
and keep the Project in good repair and condition. The Project
Plan shall be in conformity with the TIF Plan, the Redevelopment
Plan, this Agreement and all local, state and federal
regulations. The Developer's decision whether to construct a
restaurant on the Project Property shall not be deemed to affect
the stipulation minimum market values contained in Exhibit E.
First Amendment 5.1
Section 5.1. Construction of Project. The Developer agrees
that it will construct the Project on the Project Property in
accordance with the Project Plans, which plans are hereby
approved or any modifications thereto approved by the City and
the HRA, and will at all times maintain, operate, preserve and
keep the Project in good repair .and condition. The Project Plan
shall be in conformity with the TIF Plan, the Redevelopment
Plan, this Agreement and all local, state and federal
regulations.
5. Contract 5.5
There was no 5.5 section.
First Amendment 5.5
If in the future, MNDOT permanantly vacates the frontage
road right-of-way it would be possible to construct a building
on it or on a portion of it. This provision is intended to
address that possible situation.
Section 5.5. Development of Easement Area. The Project
Plans do not contain provisions relating to development of the
portion of the Project Property which is subject to the State
Highway easement. In the event that the Developer is successful
in obtaining the release of such easement, it may present to the
HRA and the City a proposed amendment to the Project Plans which
provides for development of such area. The City and HRA,
subject to complying with all procedural requirements and the
exercise of their legislative disgression, shall consider in
good faith the .proposed amendment and not unreasonably withhold
their approvals if the proposed amendment is consistent with the
TLF Plan, the Redevelopment Plan, this Agreement and all local,
state and federal laws, ordinances and regulations.
.Neither the City nor the HRA may require as a precondition
of such approval that the minimum market value determinations
contained in Exhibit E be increased.
6. Contract, Exhibit C
Exhibit C consisted
sheets showed the motel
with a restaurant or an
motel. Other pages inc
and ground floor plan.
Contract are attached.
of five pages of plan sheets. The plan
site as a five story 135 unit structure
alternative four story 1~6 unit
luded the elevation, typical floor plan
The site plans from Exhibit C of the
First Amendment Exhibit C
The Exhibit C plan sheets will be available at the HRA
meeting on Tuesday evening. As of this letter writing, they. are
not available.
Recommendation
It is recommended that the HRA adopt the attached resolution
which approves the First Amendment to the Contract For Private
Development dated December 9, 1985. The stipulated minimum
market values remain unchanged in the first amendment to the
developer's agreement.
Res ectful. s fitted,
ohn G. Car Wright/~ i
Executive Di eto~
JGC/eja
HRA RESOLUTION N0.
RESOLUTION APPROVING
AMENDMENT NUMBER ONE
CONTRACT FOR PRIVATE DEVELOPMENT
WITH PALSCO, INCORPORATED
WHEREAS, Tie HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF RICHFIELD, MINNESOTA (HRA) approved a Contract For.
Private Development dated December 9, 1985; and
WHEREAS, because of certain events which have occurred since
that date it is necessary and desirable to amend the Contract;
and
WHEREAS, the HRA has reviewed the Amendments herein
identified Amendment Number One and determined that such is in
the best interests of the City and serves the health, safety and
general welfare of the community.
NOW, THEREFORE, BE IT RESOLVED BY the Housing and
Redevelopment Authority that Amendment Number One is hereby
approved and the Chairman and Executive Director are hereby
authorized and directed to execute the same on behalf of The
Housing and Redevelopment Authority.
Passed by the Housing and Redevelopment Authority of
Richfield, Minnesota this 18th day of February., 1986.
Thomas E. Harms, Chairman
Joan Helmberger, Secretary
J. `~~_
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HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 5
Agenda February 18, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Lyndale/Hub/Nicollet Project Status Report
Dear Commissioners:
The LHN redevelopment project has been in existance since
1975. Since that time, $81 million has been invested in the.
area. At the February 18th HRA meeting, staff-will present a
audio-visual report on the history and status of the project as
well as evaluative comments. The presentation will take
approximately 55 minutes. At the March HRA meeting a written
report will be available. This report will contain an analysis
prepared with assistance from the CPA firm of Cummings, Keegan
and Company, and, Evensen-Dodge, the HRA's financial consultant.
R ectfu witted,
ohn G. Cart igh
Executive Directo
JGC/e ja