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05-16-83 agendaHOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 15 Agenda May 16, 1983 Housing and Redevelopmen t Authority Commissioners City of Richfield Dear Commissioners: Subject: Godfather Block Acquisition Process The HRA Executive Director has received a letter from Derrick Land Company which requests that the HRA be in the position in the near future to be able to convey the property in the God- father Block for purposes of redevelopment. At the present time, the HRA owns approximately one-third of the land in this block. The remaining land is owned by two other property owners. The larger part of this privately owned land is under the owner- ship of Gordon Strom, and the remainder is owned by Amos and Daniel Heilicher. Negotiations gan late in 1982. that a stalemate the HRA needs to against the Strop and subsequently ment this year. for the acquisition of the Strom property be- and have continued to this time. It is apparent has been reached in these negotiations and that consider initiating eminent domain proceedings n interests, if the property is to be acquired conveyed to Derrick Land Company for redevelop- Mr. Connor F. Schmid, representing Wendy`s Restaurant, has submitted a letter requesting that the Wendy's property not be acquired, and that the restaurant be allowed to continue in oper- ation at its present site, rather than become a part of the re- development. It is recommended that the HRA take no action on this item at this time, and that it be considered at a special HRA meeting. It is further recommended that the HRA establish this special meeting date for Monday, June 6, 1983 at 7:30 p.m. for the purpose of allowing Derrick, Stron, and the other in- terested parties, if any, to make presentations on this subject. .The staff of the Housing and Redevelopment Division will be present at the May 16 meeting to discuss this subject in greater detail. Respectfully submitted, Karl Nollenberger Executive Director KN/eja F LOYD E.NELSON DONALD A. MORKEN FREDERICK L.THORSON JAMES B. HANNAH WINSTDN E..MUNSON CLAY R. MDORE CONNOR F. SCH MID VAL M. NIGGINS LORENS O•BRYNESTAD WODDBURY H. ANOREW6 GEORGE R. A. JOHNSON ROGER V. STAGES ERG ANDREW R. CLARK FRANK A. DVDRAK ROBERT O. G15 VDL0 MAR V'IN C. INGBER FRANZ P. JEVNE IQ. H. RICHARD KDRSH GREGORY J. PULLES MARTIN V. AYDELDTT TIMOTHY O. KELLY ROBERT S. LEE JOHN B. LUNOOU19T JAMES T. SWENSON ERIC ^. MAD9ON STEPHEN F, GRIN HELL TH OM AS F. DOUGHERTY RICHARD 5. BAKER SANDRA J. MARTIN JOHN R. WHEATEN TIMOTHY M.BARNETT EINAR E. HAN5DN MACKALL, CROUNSE & MOORE LAW OFFICES 1600 TCF TOWER 121 SOUTH EIGHTH STREET MINNEAPOLIS, MINNESOTA 55402 TELEPHONE (6121 333-1341 May 11, 1983 OF COUNSEL THOMAS P. HELM EY HENRY C. MACKALL [1685-1979[ ROBERT M. CROUNSE (1893-1974[ PERRY R. MOORE (1694-1969( Mr. Karl Nollenberger, Director Richfield HRA 6700 Portland Avenue Richfield, r1N 55423 Re: Request For Hearing with HRA to Discuss The Proposed Acquisition of Wendy's By The City Of Richfield Dear Per. Nollenberger: Thanks to you and your staff for assistance and courtesies afforded to Fred we have asked to assist us. With his help and intently studied the public record as from the approval of a City Plan Amendment Permit for the Wendy's site in 1978 to and recent proposal to take Wendy's as part of Block redevelopment project. the gracious Hoisington, whom we have received it spans the period and a Special Use including the the L/H/N Godfather In the absence of any specific response to our letter of January 7, 1983, with regard to the basis for the proposed acquisition, we believe more strongly than ever that the record supports the exclusion of the Wendy's site from the L/H/N redevelopment project. We herewith request a hearing before the HRA on Play 16, 1983 on. behalf of C & C Investments, Inc. to present our case. We request at least an hour of time on the HRA`s May 16 regular meeting agenda to present the very compelling facts in support of our position. Messrs. Peter Cook, formerly MACKALL, CR^UNSE & MORE Mr. Karl Nollenberger May 11, 1983 Page Two of C & C Investments; David Nelson, of C & C Investments; Fred Hoisington, Hoisington Group Land Planners, and one or two others will assist us in the presentation. On the basis of our findings, we will ask the HRA for a decision to exclude Wendy's and the underlying. Strom property from any further eminent. domain consideration. We again thank you for your cooperation and look forward to our audience with the HRA on May 16, 1983. Fred wi'l1 call later to determine our position on the agenda. Very truly yours, MACKALL, CROUNSE & MOORS Ey Connor F. Schmid CFS:ew cc: Dennis Kraft Clayton LeFevre, Esq. Peter Cook. David Nelson Fred Hoisington HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 14 Agenda May 16, 1983 Housing and Redevelopment Authority Commissioners City of Richf field Dear Commissioners: Subject: Joint City Council/HRA Meeting Cedar Avenue Liquor Store Site Study Recently, the members of the HRA and the City Council re- ceived copies of the site study completed by James DZcComb and Associates. At the May 16, 1983 HRA meeting, this report will be discussed. Mr. McComb will be in attendance to answer any questions from the HRA and the City~Council. Please bring your copy of the study with you for this meeting. Res ectfully submitted, 'Karl Nollenberger Executive Director KN/eja HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 13 Agenda April 18, 1983 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Consideration of the Acquisition of 6425 and 6429 Port-land Avenue At the February 22, 1983. HRA meeting, the acquisition of the property located at 6425 and 6429 Portland Avenue was con- sidered. Purchase of the property was authorized, but at a figure less than that which was previously negotiated by the city staff. _ _ i. .. ,, a-.,,a ;,-, +-ho FuPrntnr of the estate which .fin :-. r `- ; _ HRA Letter No. 13 -2- April 18, 1983 the appraisal report as establishing the basis for carrying out negotiations in good faith as has been the past practice of the HRA. It has been the practice to exchange appraisals in order to facilitate the discussions. The HRA appraisal valued the property at $166,000, while the executor of the estate initially asked $210,000. Negotiations continued for approximately six months due to the wide spread in value. At the February 22, 1983 meeting, the HRA was requested to adopt a resolution authorizing purchase of the properties in the amount of $166,000, and the signing of a purchase agreement by the Executive Director of the HRA; the executor of the estate had previously signed a purchase agreement. After discussion, the HRA authorized a purchase price of $156,000.- This new offer to purchase at $156,000 was viewed by the executor of .the estate as an indication that the staff had not been negotiating in good faith. As a result, the staff has recently received a letter from the executor's attorney, indicating that they will seek legal redress for what they regard as bad faith conduct. Our city attorney has communicated with their attorney on the subject and can report to the HRA on this matter. Subsequent to the HRA action, the staff ordered another appraisal of the property. Brad Bjorklund of Capital Appraisals Inc., who made the initial appraisal in July, 1982, undertook the second appraisal. Approaching the properties as a new appraisal rather than simply an update of a previous report, he found-the value to be $153,000. The decrease in value was due to the lack of activity in the sales market and the cumulative impact of de- ferred maintenance on the structures. Appraisers attempt to establish property value as of a specific date. On July 20, 1982, the property was valued at $166,000. Although that partic- ular number was not divulged until later. in the negotiating pro- cess,. it became the basis for negotiating in good faith for the purchase of the property. The passage of time is a risk factor in negotiations, as property values may increase or decrease during negotiations.. However, without fixing a specific value as an objective to be achieved, there can be no conclusion to the negotiating process. Since T976, the staff has acgwuired approximately 50 parcels of land. A reputation has been. established that good faith is an important element of our position. Without that reputation, it will become increasingly difficult to acquire property and our development goals will be more difficult to achieve. Thus, it is my recommendation that the HRA authorize the purchase of this property by adopting the attached resolution. The purchase price would be $163,000 and the funds would be pro- vided by the L/H/N Special Revenue Capital Fund. Respectfully submitted, Karl Nollenberger Executive Director Lommen, Nelson, Sullivan & Cole, P.A. ATTORNEYS AT LAW JOHN P. LOMMEN 1120 TCF TOWER 121 SOUTH EIGHTH STREET ~ MINNEAPOLIS, MINNESOTA 55402 V. OWEN NELSON MARK SULLIVAN Telephone: (612) 339-8131 PHILLIP A. COLE MARK N. STAGEBERG TULGREN SQUARE, THIRD FLOOR GLENN R. KESSEL 502 SECOND STREET • HUDSON, WISCONSIN 54016 THOMAS E. PETERSON Telephone: (715) 386-8217 THOMAS R. jACOB50N *t Twin City Line: (612) 436-8085 RICHARD A. LIND April 7, 1983 Mr. Karl Nollenbercxer Richfield City Manager 6700 Portland Avenue Richfield, Minnesota. 55423 Mr. Bruce Palmborg Housing, & Redevelopment Authority 7000 Ni.collet Avenue Richf~.eld, Minnesota 5542.3 Mayor John Hamilton City of Richfield 6700 Portland Avenue Richfield, Minnesota 55423 LYLE R. FREVERT DANIEL ). BUIVID JR. G. CRAIG CHRISTENSEN THOMAS D. )ENSEN GLORIA O. SONNEN *t TED E. SULLIVAN JANET M.FLOM KAY NORD HUNT * KEVIN P. CARROLL * Admitted in Minnesota and Wisconsin t Hudson Office Re: Estate of Arthur E. Anderson Our File No. A-21016 P.greement to purchase real estate at 6425 Portland Ave. So. and 6429 Portland Ave. So., City of Richfield, Hennepin County, Minnesota "Tracts A, 3, C, and D, Registered Land Survey No. 476, files of Registrar of Titles, County of Hennepin (Certificate of Title No. 390412, 390413, 390414 and 390411)" Gentlemen: NOTICE OF I?~TTENT TO ASSERT DAMAGES FOR BREACH OF PURCHASE AGREEMENT PLEASE TAKE NOTICE, that the personal representative of the estate of Arthur E. Anderson hereby Maces you on notice of material breach by you of the agreement to purchase the above referenced real estate by faili_na to close the agreement to pur- chase on March 1, 1983. You are hereY~y placed on notice that Mr. Karl Nollenberaer Mr. Bruce Palmborg P!~ayor John Hamilton -2- April 7, 198' Florence DeJoy, personal representative of the estate, shall forthwith sell the above referenced property in order to mitigate damages incurred by the estate. You are hereby tive of the estate curred. as a result including, but not of the breach upon costs incurred. and placed. on notice that the personal representa- intends to recover from you all damages ro- of the breach of the agreement to purchase, li.mi_ted. to any losses incurred as a result sale of the property, attorney's fees incurred, other incidental and consequential damages. NOTICE OF II~TTENT TO REC,OVF'R DAMA.CF'S ALLOIr1ED UNDER n.~f1T~TATESOTA ST.ATIJTE 549.20 YOtJ ARE HEREBY PLACED ON NOTICE, that the personal represen- tative of the estate shall assert a claim .for puns.t,.ve damages pursuant to Minnesota Statute 549.20 for the willful ma.scond.l_zct, misrepresentation, and deceit exhibited by you or your employees and/or agents resulting in the breach of the agreement to pur- chase, said contract exhibited both prior to March 1, 1983 and subsequent thereto. NOTICE OF INTENT TO RECOVER DAMAGES ALLOWED UNDER MINNESOTA STATtTTE 549.21 NOTICE IS HEREBY GIVEN of intent to recover costs pursuant to Minnesota Statute 549.21. YOU ARE HEREBY PLACED ON NOTICE that the personal representa- tive of the estate of Arthur E. .Anderson intends to recover costs, d.z.sbursements, reasonable attorney's fees and witness fees pursuant to Minnesota Statute 549.21 for the bad faith con- duct of_ you or your employees and/or agents in the breach of the agreement to purchase. Very truly yours , LO_ E NELSOnT, S LLIVAN & COLE, P.A. Q• Bv: Glenn R. Kessel Attorneys .for the Estate of Arthur E. Anderson GRK:sjf cc: Florence DeJoV Georcxe Kenealy CERTIFIED MAIL - RETURt~1 RECEIPT REC~UESTED ~v° SCS SO ~S10 ~ RCS ~~~~~ iN ~ ^I_ i_ ~ ~~ (~~ rLtii ruTr ~ ` , ~ i_ - .. ~I ~ ~ ( I `~ ~ ~ ~\ IJ \ ~ Q ~e Ac. x I ~. Ov (/LOOT (1700 \~ ~. ~ I /c. a3 Ac a.e/ Ac. I ~~. -_"--__ )tt S - (siol a ~ ~ !//LLAGE OF I ~/C~-/F/EL L] Mpis Ges Co. ° ~ F _J (iio) t t.lo~~ - (ijol ~ (/ao) CMunson s i-r 1 N~ ~ `. f ~ (I /z (~ „ - `M ' ~.au- =-~i~ BOUNDARY OF ~ r""'~ ~ 1°, ,~ LEGION LAKE ~ ,C O/son _ -~.. - (3/Ol 4 .T ~~ -~ - ~s~---{/eB~-- ~~ "~ ~ A E R IT1 L P H 0 T 0 1 9 S i\ E/r'eson ^ ~ (FORMERLY MUD LAKE1 ~/` 1i1.4i -H.t1 l.tM. / ~~ e N (39101 ~ I 1 "~~ rF. "~ f .~•~ _,(ooo~l V/ L L AGE ~. OF ,P/CHFlELD ~~ :s::::::::_- _~ ~, ° - S ~= °. ° ~4<l ` rc~ ~ A.G. Bo~a~ 1 - ~" lTe.43 ,t 1 _ S+e . aT..~T ~~ ~ L°~ _ ~ ~ / 7s ~. I (/sod H. W. f•Irckcn ~ ~ 8 s ,.~. ,~ ~ ~ uc. t T n~ Aso ies .es ~ ~ (ieooJ ~ MBA/ei (4300/ ~ M Cacon 1 1 ~~ 1 (3170 1 i i (17001 p h " A. pfacck ~ (-3600) (SSGaI (37CdJ ! 3d00J p c .1 (~6oJJ (13001 °3cz .,(Mang 5 Noe! Menninf ~~ ~ L. S/~nsby a.oe.ac. A.Sa~.ie~s ~ IY City-owned property 25cE.4 ReS. °~°b~°' Pro ert ro osed for ac uisition from Anderson estate ~,~, o°o° P Y P P q ;x°'44 (6a25 and 6429 Portland) HRA RESOLUTION NO. 27-7 RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT TO BORROW MONEY FROM THE L/H/N SPECIAL REVENUE CAPITAL FUND FOR ' THE PURCHASE OF REAL PROPERTY AT 6425 AND 6429. PORTLADID AVENUE WHEREAS., the Richfield Housing and Redevelopment Authority (HRA) desires to borrow money for the purpose of purchasing certain real property pursuant to and in furtherance of the provisions of Minnesota Statutes Chapter 462.411, et. seq, said real property being described as follows: Tracts A, B, C, and D Registered Land Survey No. 476, Files of Registrar of Titles, County of Hennepin, Minnesota; and , WHEREAS, the HRA has caused appraisals of the subject property to be made and has carefully considered such appraisals; and WHEREAS,. funds to provide for the purchase of this property are available in the L/H/N Special Revenue Capital Fund; and WHEREAS, the Executive Director commenced negotiations for the purchase of the real property described above; and WHEREAS, the negotiations for the above described real property has resulted in the execution of a purchase agreement by the .seller; NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: 1. That$T63,000 is determined to be just compensation for the subject real property.- 2. That the monies for the purchase of this property are to be provided from the L/H/N Special Revenue Capital Fund . 3. That the Chairman and the Executive Director be, and hereby are authorized to execute, as agents of the Richfield Housing and Redevelopment Authority, an agreement (entitled 'Loan Agreement') a copy of which is hereby given Clerk's File No. and is ordered placed on file. 4. That the Executive Director be, and hereby is directed to present said agreement into the records of the HRA of the City of Richfield for its recording. . 5. That the Executive Director is authorized and directed to execute a purchase agreement for the above described property. for One Hundred .Sixty-three Thous a-nd and no/100 dollars (5163,000) Passed by the Housing and Redevelopment Authority o Richfie?d, this 1$thday or April 1983. Thomas E. Harms, Chairman Joan Heirnberoer Secretary e C