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01-17-06 Regular . CITY OF RICHFIELD, MINNESOTA TUESDAY, JANUARY 17, 2006 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 7 P.M. AGENDA Call to order 1. Oath of Office to HRA Commissioner David Gepner 2. Oath of Office to HRA Commissioner Donna Drummond 3. Consideration of election of HRA officers for 2006 . Staff Report No. 1 Notes: 4. Approval of minutes of Regular HRA Meeting of December 19, 2005 Notes: 5. HRA approval of agenda 6. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of designating Community Development Director as Acting Executive Director of HRA in event Executive Director is absent from City S.R. No.2 B. Consideration of approval of resolutions designating official depositories for HRA, including collateral, for 2006 S.R. NO.3 C. Consideration of approval of resolution designating Richfield Sun-Current as official newspaper and Star Tribune as second official newspaper of HRA for 2006 S.R. NO.4 D. Consideration of approval of contract for demolition of 6812 Emerson Lane to Frattalone Companies S.R. NO.5 Notes: 7. Consideration of: . Increasing Marshall & IIIsley mortgage by $500,000 to provide substitute collateral for $500,000 Letter of Credit in favor of HRA with stipulations and interim financing agreement for repayment of the 2003A bonds; and . Resolution regarding interfund loan in amount up to $718,000 for six months with interest at 6% per annum; subject to City Council approval in accordance with MN Statute 469.178 Subd. 7 Staff Report NO.6 Notes: 8. Consideration of resolution regarding amendment to Contract for Private Development with Ryan Companies US, Inc. and extending Cedar Point Concept Plan submission date Staff Report No. 7 Notes: 9. Executive Director report 10. Claims and payroll Adjournment Auxmary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. AGENDA ITEM # 3 REpORT # 1 ....... STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 17, 2006 REpORT PREPARED By: CHERYL KRUMHOLZ, EXEC. COOR. NAME, TITLE REpORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR REVIEWED By EXECUTIVE DIRECTOR: ~ ITEM FOR HRA CONSIDERATION: Consideration of the election of officers for the Housing and Redevelopment Authority (HRA) for 2006. 1. RECOMMENDED ACTION: By Motion: Elect officers for the Richfield Housing and Redevelopment Authority for 2006. I II. BACKGROUND I The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. Officers for 2005 were: Thomas Harms, Chair . Joan Heimberger, Vice Chair Suzanne M. Sandahl, Secretary 01170fficers I III. BASIS OF RECOMMENDATION I I A. POLICY I . The bylaws of the Richfield HRA provide that the HRA hold an annual meeting in January. . The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. I B. eroTICAL ISSUES - I . The bylaws of the Richfield Housing and Redevelopment require that an election of officers for the HRA be held at the annual meeting in JanuarY. I IV. ALTERNATIVE RECOMMENDATION(S) I . Do not hold the election. However, this would be in contradiction of the HRA bylaws. I V. PRlNCIP AL PARTIES EXPECTED AT MEETING . None. . AGENDA ITEM # 6A REpORT # 2 ....... STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 17,2006 REpORT PREPARED By: CHERYL KRUMHOLZ, EXEC. Co OR. NAME, TITLE REpORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of designating the Community Development Director as the Acting Executive Director of the Housing and Redevelopment Authority (HRA) for 2006 in the event the Executive Director is absent from the City. I. RECOMMENDED ACTION: By Motion: Designate the Community Development Director as Acting Executive Director of the HRA in the event the Executive Director is absent from the City. I II. BACKGROUND I Since the City Manager also serves as the HRA Executive Director, it is recommended that the Community Development Director be designated by the HRA as the Acting Executive Director to serve in that capacity during the absence of the Executive Director. The Community Development Director was designated Acting Executive Director for 2005. I III. BASIS OF RECOMMENDATION I A. POLICY 0117ActingDirector . Designation of an Acting Executive Director is a normal business action of the HRA similar to the designation of depositories and the official newspaper. . The Community Development Director has been designated as the Acting Executive Director in the past. I B. CRITICAL ISSUES I . It is necessary to designate a person to serve as the Acting Executive Director to ensure continuation of HRA operations during an absence of the Executive Director. I IV. ALTERNATIVE RECOMMENDATION(S) I . Defer this designation to another HRA meeting. Iv. PRINCIPAL PARTIES EXPECTED AT MEETING . None. AGENDA ITEM # 6B REpORT # 3 ...... STAFF REpORT RIOHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 17,2006 REpORT PREPARED By: CHRIS REGIS, FINANCE MANAGER NAME, TITLE REpORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR REVIEWED BY EXECUTIVE DIRECTOR ITEM FOR HRA CONSIDERATION: Consideration of resolutions designating official depositories for the Housing and Redevelo ment Authorit HRA for 2006, includin the a roval of collateral. I. RECOMMENDED ACTION: By Motion: 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. I II. BACKGROUND I I III. BASIS OF RECOMMENDATION I I A. POLICY I . In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must designate financial institutions annually. The institutions must pledge the collateral over and above the amount of federal insurance, as public depositories. . U.S. Bank acts as the banking institution in the HRA's banking arrangement with the 4M Fund. Monies received, checks written, by the HRA, flow through U.S. Bank, however, at the end of each business day, any proceeds remaining in HRA U.S. Bank accounts are swept to the 4M Fund to be invested. Therefore, at the end of the business day the HRA 0117depositories accounts are- zero, which means the collateral requirements of Minnesota Statutes Section 118A.03 are not required. Accordingly, U.S. Bank has met all other statutory requirements and should be considered as a depository for the HRA's vendor accounts and all savings deposits. . The HRA must also designate annually, certain savings and loan associations and banks as official depositories for deposit and investment of certain HRA funds. With approval of these official depositories, the HRA will be able to investfunds in thesH institutions, not exceeding the federal insurance of $100,000. . Finally, a designation must be made for certain financial institutions as depositories for the investment of HRA funds for 2006. These institutions, such as investment brokerage firms, offer government securities in the manner required by law. These financial institutions include M&I Marshall & IIIsley Bank, U.S. Bank, Dain Rauscher, Wells Fargo Brokerage Services, Morgan Stanley Dean Witter, Morgan Keegan, N.A. Investment Services, Inc. Piper Jaffray & Co. and the 4M Fund. . The resolutions will be completed with the HRA Chair and HRA Secretary names following the appointment of officers at the January 17,2006 HRA meeting.. lB. CRlTICALISSUES . N/A I C. FINANCIAL . . N/A I D. LEGAL I . The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an assignment pledged to the HRA in the amount specified in the attached resolutions. I IV. . ALTERNATIVE RECOMMENDATION(S) I . The HRA could solicit other financial institutions for official depositories, but . past relationships with the depositories recommended have proven satisfactory for the City. . I V. ATTACHMENTS I . Resolution designating US Bank a depository of funds of the HRA of Richfield for the year 2006. . Resolution designating the M&I Marshall & Illsley Bank a depository of funds of the HRA of Richfield for the year 2006. . Resolution designating certain savings and loan associations and banks as depositories for the investment of HRA funds in 2006. . Resolution designating certain financial institutions as depositories for the investment of HRA of Richfield funds in 2006. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . None RESOLUTION NO. RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2006 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment . Authority of Richfield, subject to modification and revocation at any time by said 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 sums for which its deposits are insured under the Acts of Congress of the United . States relating to insurance of bank deposits; but that 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 therein; 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. The following officers or their facsimile signatures shall sign checks on this account; ,CHAIR STEVEN L. DEVICH, EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of each business day will be transferred from U.S. Bank to the 4M Fund where funds deposited are invested and insured. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 17th day of January, 2006. Chair ATTEST: Secretary RESOLUTION NO. RESOLUTION DESIGNATING THE M&I MARSHALL & ILLSLEY BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2006 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, M&I Marshall & IlIsley Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment of Richfield, subject to modification and revocation at any time by said 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 sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that 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 therein; 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. The following officers or their facsimile signatures shall sign checks on this account; ,CHAIR STEVEN L. DEVICH, EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of each business day will not exceed the federal insurance of $100,000. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 17th day of January, 2006. Chair ATTEST: Secretary RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2006 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota: WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 - 118A.06, municipal funds may be deposited in any Savings and Loan Association or Bank which has its deposits insured by the Federal Savings and Loan Insurance Corporation (FSLlC) or the Federal Deposit Insurance Corporation (FDIC); and WHEREAS, the amount of said deposits may not exceed the FSLlC/FDIC 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, Minnesota, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority funds that certain Savings and Loan Association and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 2006. 2. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Housing and Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. 3. The Treasurer and Finance Manc;lger are hereby authorized to deposit Housing and Redevelopment Authority funds in various depositories 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 City, payable to the Housing and Redevelopment Authority of Richfield on the signatures of the Housing and Redevelopment Authority Treasurer or Finance Manager. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager as his 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 of the Housing and Redevelopment Authority regarding the investment of Housing and Redevelopment Authority funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 17th day of January, 2006. Chair ATTEST: Secretary RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2006 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 Housing and Redevelopment Authority of Richfield 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, in accordance with Minnesota Statutes, Sections 118A.01 - 118A.06, as follows: , 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority of Richfield funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority of Richfield funds for 2006. 2. The following financial institutions designated as depositories for the Housing and Redevelopment Authority of Richfield funds: Dain Rauscher, Inc. Wells Fargo Brokerage Services N.A. Investment Services, Inc. Morgan Stanley Dean Witter 3. The Treasurer and Finance Manager are hereby authorized to deposit the Housing and Redevelopment Authority of Richfield funds in any or all of the depositories herein designated. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager's judgment and as the interest of the Housing and Redevelopment Authority of Richfield dictates. Piper Jaffray & Co. Morgan Keegan 4M Fund 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. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 17th day of January, 2006. Chair ATTEST: Secretary AGENDA ITEM # 6C REpORT # 4 ..... STAFF REpORT RIGRlflELIJ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 17, 2006 REpORT PREPARED By: NANCY GIBBS, CITY CLERK NAME, TITLE REpORT PRESENTER: STEVEN L. DEVICH; EXECUTIVE DIRECTOR REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR BRA CONSIDERATION: Consideration of resolution designating an official newspaper for 2006. I. RECOMMENDED ACTION: By Motion: Approve the resolution designating for 2006 the Richfield Sun-Current as the official newspaper and the Minneapolis Star Tribune as the second official newspaper for the City of Richfield. I II. BACKGROUND [ The Richfield Sun-Current, published by Minnesota Sun Publications, has been the City's official newspaper for many years. Attached is a copy of a letter from Minnesota Sun Publications requesting that they be designated the official newspaper for the City of Richfield for 2006. The 2006 advertising rate structure for legal notices is as follows: 1 Column width $14.30 per inch $7.15 per subsequent inch There are 11 lines per inch. The 2005 rate was the same as the rate proposed for 2006. For 2006, the Minneapolis Star Tribune should be considered as the second official newspaper to be used only in rare situations where more timely publication dates 0117Newspaper are required. The 2006 advertising rate structure for legal notices in the Sunday and week day, metro and statewide, issues is $4.75 per line. The 2005 rate was $4.75 per line. I III. BASIS OF RECOMMENDATION I I A. POLICY , I . The Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. . The Sun-Current has expressed an interest in continuing to serve as the official newspaper of the City. . The Sun-Current has served well as the official paper for many years. . The Sun-Current is delivered to nearly all residences in the City. I B. CRITICAL ISSUES I . The designation must be made at the first meeting of the new year. I C. FINANCIAL I . The cost for the official publications is reasonable. I D. LEGAL I . A newspaper must be designated each year by the City for publication of all official and legal City business. I IV. ALTERNATIVE RECOMMENDATION(S) I . Not make a designation and request the City Clerk's office to check into using another publication. I V. ATTACHMENTS . Resolution . Letter from Minnesota Sun Publications . Fax from Star Tribune I VI. PRINCIP At PARTIES EXPECTED AT MEETING . None HRA RESOLUTION NO. RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2006 WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is designated the official legal newspaper for the Richfield Housing and Redevelopment Authority for 2006 for all publications required to be published therein. BE IT FURTHER RESOLVED that the Minneapolis Star Tribune is designated as the Richfield Housing and Redevelopment Authority's secondary official newspaper for 2006. Adopted by the Housing and Redevelopment Authority in and for of the City of Richfield, Minnesota this 17th day of January, 2006. Chair ATTEST: Secretary CI =='====- November 15, 2005 newspapers City of Richfield City Council 6700 Portland Avenue Richfield, MN 55423-2599 Dear City Council Members: The Richfield Sun-Current would like to be considered for designation as the legal newspaper for the City of Richfield for the year 2006. All published legal' notices are posted on our website (www.mnsun.com) at no additional charge. This is an enhancement to the local news coverage already available on the Internet and will broaden the readership of your legal notices. One of the main benefits of publishing your legal notices with the Sun-Current is our home delivery. Sun Newspapers has become the primary source of community news in the suburbs. your notices in our paper have the best chance of being seen and read. We would like to continue working with you, therefore, we will not be making a rate change for the coming year. The rate structure for legals effective January 1, 2006 will be: 1 column width: $14.30 per inch for first insertion $7.15 per inch for subsequent insertions Out columns are 14 picas wide There are 11 lines .per inch Two notarized affidavits on each of your publications will be provided with no additional charge. The deadline for regular length notices is 2:00 p.m. the Thursday prior to publication. E-mailing the I~gal notices is an efficient and accurate way of getting the notices to us. The e-mail address for the legal department is legals@mnsun;com. We still accept notices on disk, faxed or throu9h tbe mail. If you reqUire more information to make your decision, please contact me or Mary Ann Carlson, our Legal Representative, at 952-392...6829. Thank you for considering the Sun-Current as the official newspaper for the City of Richfield in 2006. We appreciate the opportunity to serve the needs of your community. Sin~. ...c....:.. ~ .~~ ,,- Vice:Presid~Jj'~~fnd GroupPlJblisher' ~ " ". "W.",., ",.' . :.;lL:.,.. ')-.~ t). ," 10917 VALLEY VIEW ROAD 0 EDEN:PRA.mm 0 Mn\1J.\TEsOTA 55344' 0 952-829~791 0 FAX: 952--941-3588 12/13/2005 09:45 FAX 612 673 4884 STAR TRIBUNE CLS. ADV. ~001 425 Portland Avenue MirJneapolis, Minnesota 55486-0002 ~tar1tlbune r~ I ~ NEAl' 0 ~ IS' 5T P A U L _ DeCember 13, 2005 Debb~e Geyer Deputy Assistant City Clerk City of Richfield 6700 Portland Ave. Minneapolis, MN 55423 Dear Debbie: Star Tribune legal rates for publications in class 203 is currently $4.75 per line on a weekday or a Sunday. Unlike our regular rates, these will NOT be changing January I, 2006. Please feel free to call with any questions or Concerns. Sincerely, i#t:l77f' ~ Maggi McDermott Account E)Cecutive Phone: 612-673-4150 Fax: 612-673-4884 Email: mmcdennott@startribune.com CI -- ==.. ::::::= ==- November 15, 2005 newspapers City of Richfield City Council 6700 Portland Avenue Richfield, MN 55423-2599 Dear City Council Members: The Richfield Sun-Current would like to be considered for designation as the legal newspaper for the City of Richfield for the year 2006. All published legal notices are posted on our website (www.mnsun.com) at no additional charge. This is an enhancement to the local news coverage already available on the Internet and will broaden the readership of your legal notices. One of the main benefits of publishing your legal notices with the Sun-Current is our home delivery. Sun Newspapers has become the primary source of community news in the suburbs. Your notices in our paper have the best chance of being seen and read. We would like to continue working with you, therefore, we will not be making a rate change for the coming year. The rate structure for legals effective January 1, 2006 will be: 1 column width: $14.30 per inch for first insertion $7.15 per inch for subsequent insertions Our columns are 14 picas wide There are 11 lines per inch Two notarized affidavits on each of your publications will be provided with no additional charge. The deadline for regular length notices is 2:00 p.m. the Thursday prior to publication. E-mailing the legal notices is an efficient and accurate way of getting the notices to us. The e-mail address for the legal department is legals@mnsun.com. We still accept notices on disk, faxed or through the mail. If you require more information to make your decision, please contact me or Mary Ann Carlson, our Legal Representative, at 952-392-6829. Thank you for considering the Sun-Current as the official newspaper for the City of Richfield in 2006. We appreciate the opportunity to serve the needs of your community. Sln~.....r..~.~,... ... ... ~~ - ... .- Jeffrey Goolm. an Vice:Presrq_~~('~:tnd G roup Publisher \) 10917 VALLEY VIEW ROAD 0 EDEN PRAl:RrE 0 Mn\1NESOTA 55344 0 952-829-0797 0 FAX: 952-941-3588 Certified Audit CAC of Circulations Newspaper Audit Report MINNESOTA SUN PUBLICATIONS * Wednesday EDEN PRAIRIE (HENNEPIN COUNTY) MINNESOTA TOTAL AVERAGE CIRCULATION FOR THE TWELVE-MONTH PERIOD ENDED JUNE 30, 2005 TYPE OF PUBLICATION: Community Newspaper FREQUENCY: Weekly LOCATION: Eden Prairie, Minnesota PUBLISHED BY: Minnesota Sun Publications ESTABLISHED: 1912 Manager CONTACT INFORMATION: 10917 Valley View Road Eden Prairie, Minnesota 55344 Tel: (952)392-6835 Fax: (952) 941-3588 Jeff C~.Iman, Vice-President:, General Herb Hesse, Cii-Culation Director Circulation Data Sun Sailor Total 1A. Total Average Circulation, Distribution Paid :,~',:.~~i~~~~ '3) Sirigle"cdpy'sales " ..4) Employee Copies , 5) ,Newspaper in Education 6) Bulk ' Paid Circulation , , 12{'" 146 'NT % Sun Current-C , Total " % Sun Current-D Total % Sun Post Total Sun Focus 0.2 0.2 67 0.1 16 100 0.2 81 0.1 187 59 0.2 0.1 26 0.1 0.4 83 0.1 181 0.3 146 0.3 26 0.1 B. other Paid 1) Home Delivery 1,663 27 425 0.5 2,301 3.4 1,558 3.1 12 2) Single Copy Sales 3) Newspaper in Educatipn 4) Event Sales 5) Bulk Total Other Paid 1,663 2.7 425 0.5 2,301 3.4 1,558 3.1 12 Total Paid 1,930 3.1 508 0.6 2,482 3.7 1,704 3.4 38 0.1 C. Unpaid Distribution 1) Home Delivery 55,641 89.4 83,691 99.0 58,811 86.6 44,851 90.0 48,938 90.3 ...;2) Mail ',',' 3) Residential Bulk 4,525 .7.2,. 6,091 9.0 3,070 6.2 .4) Non-Resiciential Bulk 165 0.3 318 536 0.7 215 0.4 5,24( 5) Sample$;: t" ..... Total Unpaid DistributiOn 84,009 96.3 48,136 96.6 54,182 D. Total Distribution 62,261 100.0 84,517 100.0 67,920 100.0 49,840 100.0 54,220 100.0 * See paragraph 2 for publication names, 2A. Breakdown of average circulation and distribution (item 1) by publication SUN-SAILOR NEWSPAPERS Single VaLl Unpaid Non. Paid Copy Other Total Home Res. Res. Total Total Mail Sales Paid Paid Delivery Bulk Bulk Unpaid Distr. ExcelsiorlShorewood 10' 16 225 251 5,5,92 1AO 5,735 5,983 West Minnetonka 22 7 239 268 5,949 90 71 6,110 6,378 East Plymouth 12 19 507 538 5,452 447 5,899 ' 6,437 West Plymouth 12 23 40 75 10,610 658 11,268 11,343 Hopkins' ' 16' 17 93 126: ,3,924 748 24 4,696 ,4,822 St. Louis Park 20 11 372 403 11,154 1,268 12,422 12,825 Wayzata 23 36 156 215 4,497 210 30 4,737 4,952 East Minnetonka ----2 -1Z ---11 -.M 8.463 964 40 9.467 9.521 Total 121 146 1,663 1,930 55,641 4,525 165 60,331 62,261 SUN CURRENT NEWSPAPERS-C Single VoU Unpaid Non. Paid Copy Other Total Home Res. Res. Total Total Mail Sales Paid Paid Delivery Bulk Bulk Unpaid Distr. South St. Paul/lnver Grove Heights 18 63 81 14.361 100 14,461 14,542 West St. Paul/Mendota Heights 10 68 78 9,479 9,479 9,557 Lakeville 7 18 25 9,690 9,690 9,715 Eagan 8 1 53 62 16,565 16,565 16.627 Bumsvil/e/Savage 11 15 113 139 18,926 175 19,101 19,240 Apple Valley/Rosemount II - 110 123 14.670 - 43 14.713 14.836 - - Total 67 16 425 508 83,691 318 84,009 84,517 SUN CURRENT NEWSPAPERS-D Single VoU Unpaid Non. Tot. Paid Copy other Total Home Res. Res. Total Mail Sales Paid Paid Delivery Bulk Bulk Unpaid Distr. Edina 40 8 458 506 14,907 1,163 92 16,162 16,668 Richfield 20 20 526 566 8,483 1,088 180 9,751 10,317 Bloomington 30 37 1,187 1,254 23,547 3,080 22,0 26,847 28,101 Eden Prairie -1Q 16 130 156 11.874 760 44 12.678 12.834 - Total 100 81 2,301 2,482 58,811 6,091 536 65,438 67,920 SUN-POST NEWSPAPERS Single VoU Unpaid Nf;)n. Paid Copy other Total Home Res. Res. Total Total Mail Sales' Paid Paid Delivery Bulk Bulk Unpaid Distr. Brooklyn Center 9 26 276 311 6,874 255 7,129 7,440 Brooklyn Park 45 17 281 343 18,043 751 100 18,894 19,237 New Hope/Golden Valley 16 1 616 633 10,246 955 115 11,316 11,949 Crystal/Robbinsdale 17 15 385 417 9.688 1.109 - 10.797 11.214 Total 87 59 1,558 1,704 44,851 3,070 215 48,136 49,840 SUN-FOCUS NEWSPAPERS Single Vol.! Unpaid Non. Paid Copy Other Total Home Res. Res. Total Total Mail Sales Paid Paid Delivery Bulk Bulk Unpaid Distr. Blaine/Spring Lake Park 6 1 7 16,002 903 16,905 16,912 Columbia Heights/Fridley 10 7 17 18,096 1,140 19,236 19,253 Moundsview/New Brighton/St. Anthony 5 4 9 14,840 751 15,571 15,600 Ramsey County 2 - - 2 - 2.45Q 2.450 2.455 - - -' Total 26 12 38 48,938 5,244 54,182 54,220 M"mh"r :it~I1Q M..mh..r :it~nQ AGENDA ITEM # 6n REpORT # 5 ....... STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 17, 2006 REpORT PREPARED BY:' KELLY BERG, HOUSING COORDINATOR NAME, TITLE REpORT PRESENTER: BRUCE'NORDQUlST, HOUSING AND REDEVELOPMENT MANAGER NAME, TiTLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: . ITEM FORHRA CONSIDERATION: Consideration of acceptance of a bid for demolition of 6812 Emerson Lane. I. RECOMMENDED ACTION: By Motion: Award contract for demolition of 6812 Emerson Lane to Frattalone Companies. I II. BACKGROUND I In August, the Housing and Redevelopment Authority (HRA) purchased 6812 Emerson Lane. Plans for the property include demolition of the existing buildings (house and barn) and improving sewer and water services to the property. The property will be subdivided for redevelopment into three single-family lots as previously approved by the HRA. At the direction of the HRA, staff is in the process of identifying a developer to construct three higher-value single-family homes that will be in keeping with the character of the neighborhood. The goal is to complete construction ~o the development can be in the spring 2007 Parade of Homes. The buildings are now ready for demolition. Demolition specifications were sent to 12 different demolition contractors. Two companies presented bids-Frattalone Companies and Belair Excavating. Frattalone Companies was the lower of the two bids at $24,000.00. In addition to the demolition cost, an estimated $3,500 is 011706 6812 Emerson Lane reserved for environmental remediation such as disposal of asbestos and lead laden materials. I III. BASIS OF RECOMMENDATION I I A. POLICY I . A standard bidding process was used to secure bids. When costs are anticipated to exceed $25,000, the HRA must review those proposed expenditures. I B. CRITICAL ISSUES I . The site is ready for demolition. If the HRA concurs, demolition would occur in the next 30 days, allowing for a spring construction start. . Neighbors have been kept informed of the status of the property and will be contacted before demolition work actually begins. I C. FINANCIAL I . Funds are available based on the approved HRA budget. I D. LEGAL I . Legal counsel has prepared the demolition contract. I IV. ALTERNATIVE RECOMMENDATION(S) I . Do not award the contract to Frattalone Companies. . Seek additional bids or delay action on the bids received. I V. ATTACHMENTS . Aerial photo. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A 6812 Emerson Lane Area of detail - Source: Hennepin Co. Property Data Created: 1/21/05, Richfield CD (MP) AGENDA ITEM # 7 REpORT # 6 ~ STAFF REpORT RICHFIELlJ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 17, 2006 REpORT PREPARED By: CHRIS REGIS, FINANCE MANAGER NAME, TITLE REpORT PRESENTER: CHRIS REGIS, FINANCE MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTO ITEM FOR HRA CONSIDERATION: Consideration of a request from The Cornerstone Group for an increase in the Marshall & IIsley mortgage that is part of the financing of the Kensington Park Development, by $500,000, to provide for substitute collateral for the $500,000 Letter of Credit in favor of the Housing and Redevelopment Authority and consideration of interim financing for the repayment of the 2003A bonds. I. RECOMMENDED ACTION: By Motion: Approve the increase of the Marshall & IIsley mortgage by $500,000 to provide substitute collateral for the $500,000 Letter of Credit in favor of the Housing and Redevelopment Authority, with stipulations and the interim financing agreement for the repayment of the 2003A bonds; and authorizing the execution and delivery of appropriate instruments. By Resolution: Approve an interfund loan in an amount up to $718,000 for six months with interest at the rate of 6% per annum; subject to approval by the City Council in accordance with MN Statute 469.178 Subd. 7. I II. BACKGROUND 011706 Kensington Park . As part of the development agreement for Kensington Park, The Cornerstone Group (Cornerstone) provided the Housing and Redevelopment authority (HRA) with a $500,000 Letter of Credit. . Cornerstone has requested the HRA to increase the construction mortgage held by Marshall & IIIsley (M&I) by $500,000 which would provide substitute collateral , for the $500,000 Letter of Credit held by the HRA. . In addition, the City, on behalf of the HRA, issued Taxable G.O. Temporary Tax Increment bonds, Series 2003A to help fund Cornerstone's Kensington Park development on an interim basis. As part of the issuance of the bonds, the HRA and Cornerstone agreed that Cornerstone would be responsible for the payment of principal and interest on the bonds. It was agreed that sale proceeds from residential units from the development would be used to pay the bonds. . The bonds mature on February 1, 2006, the principal due is $3,000,000 and interest due is $37,500 for a total due of $3,037,500. . Presently there is a deficiency in residential sales proceeds received by the HRA from Cornerstone. In communication with Cornerstone they anticipate sales of three additional units by January 31, 2006. At the current time, based on the estimated home closings between now and February 1; the estimated amount of the balance is $326,000. If any of the closings do not occur, the deficiency could increase to a balance of up to $718,000. I III. BASIS OF RECOMMENDATION I I A. POLICY I . It is the recommendation that the HRA approve the increase of the M&I mortgage and authorize the execution of the necessary documents. . The recommendation will also be that the execution and delivery of the documents not occur until three residential sales closings identified by Cornerstone occur and proceeds are transferred to the HRA, and the HRA's consultant expenses in connection with these matters have been reimbursed in full by Cornerstone. . If the sale proceeds from the three closing and the reimbursements have not been received by the HRA by January 31,2006, the approvals will be automatically rescinded. I B. CRITICAL ISSUES I . The 2003A bonds mature on February 1, 2006 and it is necessary to ' identify an interim finanCing plan to ensure timely payment of the bonds. I C. FINANCIAL I . Principal and interest on the 2003A bonds is to be paid by Cornerstone out of residential sale proceeds form the development. . Total principal and interest due on February 1, 2006 is $3,037,500. It is expected that February 1 , 2006 residential sale proceeds received by the HRA from Cornerstone could be deficient by up to $718,000. . In lieu of remedies available under the Redevelopment Contract, the HRA will secure the funds necessary to cover the deficiency and pay the bonds on February 1,2006 by an interfund loan from the City or HRA funds available for this p,urpose. . The interim loan will be for a period not to exceed six months and will bear interest at the rate permitted by Minnesota Statutes, Section 469.178 Subd. 7. . Principal and interest on the interfund loan will be charged against sale proceeds for the remaining units. . If the HRA has not received sufficient proceeds form the sales of additional units during that six month period to repay the interim loan, the HRA will utilize any of the remedies available to it under the Redevelopment Contract. I D. LEGAL I . The interest permitted by Minnesota Statutes, Section 469.178 Subd. 7 is 6%; I IV. ALTERNATIVE RECOMMENDATION(S) . N/A I V. ATTACHMENTS . Resolution I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . Sid Inman, Ehlers & Associates, Inc. financial consultant to the HRA. . Representative from The Cornerstone Group, developer of Kensington Park. HRA RESOLUTION NO. RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1286. BE IT RESOLVED by the Richfield HRA (the "HRA") of the City of Richfield, Minnesota (the . "City"), as follows: Section 1. Backaround. 1.01. The City has heretofore approved the establishment of The Lyndale Gateway West Tax Increment Financing District (the "TIF District") within the Richfield Redevelopment Area (the "Project"), and has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. 1.02. The lIRA has determined to pay for certain costs oidentified in the TIF Plan consisting of land/building acquisition, which costs may be fmanced on a temporary basis from lIRA funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the HRA is authorized to advance or loan money from the HRA's general fund or any other fund from which such advances. may be legally made, in order to finance the Qualified Costs. 1.04. The HRA intends to reimburse itself for the Qualified Costs from payments made by the Redeveloper in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. On February 1, 2006 the HRA will advance to pay the Qualified Costs related to the TIF District, in a principal amount up to $718,000. The HRA will reimburse itself for such advances together with interest at the rate of the statutory rate allowed by law per annum. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270.75 or Section 549.09 as of the date or advance is made, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270.75 or Section 549.09 are from time to time adjusted. 2.02. The term of the Interfund Loan shall be 6 months and Principal and interest ("Payments") on the Interfund Loan shall be payable by the Redev~loper on August 1,2006. 2.03. Payments on this Interfund Loan are payable solely from payments form the Redeveloper. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by the HRA without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise requiredto be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the HRA in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from payment of the Redeveloper. This Interfund Loan and the interest hereon shall not be .deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the HRA. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto. Neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest. on this Interfund Loan or other costs incident hereto. . The HRA shall ,have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The HRA may amend the terms of this Interfund Loan at any time by resolution of the HRA, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17th day of January 2006. ATTEST: Secretary Chair AGENDA ITEM # 8 REpORT # 7 ....... STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 17, 2006 REpORT PREPARED By: PATRICK SMITH, COMMUNITY DEVELOPMENT MANAGER NAME, TInE REpORT PRESENTER: PATRICK SMITH, COMMUNITY DEVELOPMENT MANAGER NAME, TInE REVIEWED BY EXECUTIVE DIRECTOR: DEPARTMENT DIRECTOR REVIEW: ITEM FOR HRA CONSIDERATION: Consideration of a resolution regarding an amendment to the Contract for Private Development by and between the Housing and Redevelopment Authority in and for the City of Richfield and Ryan Companies US, Inc. I. RECOMMENDED ACTION: By resolution: Approve the attached resolution, which amends the Contract with Ryan Companies US, Inc., and extends the Cedar Point Concept Plan submission date. I II. BACKGROUND I In July 2005 the Richfield Housing and Redevelopment Authority (HRA) entered into a Private Development Agreement (Contract) with Ryan Companies US, Inc. (Developer) for the Cedar Point area. According to Section 5.0.1 the Developer is responsible for submitting Concept Plans to the HRA and City Council for their review and approval no later than 180 days after execution of the Contract. The end of the 180 day period is January 23, 2006. Cedar Point Concept Plan Extension Concept Plans include building elevations, public improvement plans, and landscaping plans. Pursuant to the attached letter the Concept Plans will not be completed by said date. I III. BASIS OF RECOMMENDATION I I A. POLICY I . On July 27,2005 the HRAentered into a Contract for Private Development with the Developer. . Under the contract the Developer is responsible for submitting Concept Plans for the HRA and City Council review and approval by January 23,.2006. I B. CRITICAL ISSUES I . Staff working with Ryan and Target representatives is achieving excellent results as we move toward the goal of developing a retail center that will be distinctively Richfield in character. It simply is taking longer to work through all of the design issues than anticipated. . Recently the Developer initiated discussions with Home Depot regarding the design of their facility. The idea is to have design compatibility within the development. . The proposed submittal extension is for 60 days - March 24, 2006. I C. FINANCIAL . N/A I D. LEGAL I . Legal counsel prepared the attached resolution. I IV. ALTERNATIVE RECOMMENDATION(S) I . Reject or defer approval of the attached resolution. Iv. ATTACHMENTS . Resolution . Letter from Developer I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A HRA RESOLUTION NO. AMENDMENT NUMBER 1 - CONTRACT FOR PRIVATE REDEVELOPMENT RYAN COMPANIES US, INC. WHEREAS, Ryan Companies US, Inc. (Developer) executed a Contract for Private Development (Contract) with the Richfield Housing and Redevelopment Authority (HRA) on July 27,2005; and WHEREAS, the Contract requires the Developer to submit Concept Plans to the HRA and City Council for their review and approval no later than 180 days after the execution date of the Contract; and WHEREAS, the 180 day submittal deadline expires January 23, 2005; and WHEREAS, due to the complexity of the project and working with two major tenants, the Developer will be unable to meet the submittal date for Concept Plan review and approval; and - WHEREAS, the Developer has requested the HRA to extend submittal date for the Concept Plans 60 days until March 24, 2006. NOW, THEREFORE, BE IT RESOLVED that the Housing and Redevelopment Authority in and for the City of Richfield hereby approves Amendment No.1 to the Contract and extends the Concept Plans submittal date 60-days, until March 24, 2006. Approved by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17th day of January, 2006 Chair A TIEST: Secretary WWW.RYANCOMPANIES.COM RYAN COMPANIES US, INC. 50 South Tenth Street, Suite 300 Minneapolis, MN 55403-2012 ~YAN@ 612-492-4000 tel 612-492-3000 fax BUILDING LASTING RELATIONSHIPS January 10, 2006 Patrick Smith, AICP Community Development Manager Community Development Department City of Richfield 6700 Portland Avenue Richfield, MN 55423 RE: Ryan Companies US, Inc. ("Ryan") Concept Plan Submittal for Richfield Project ("Concept Plan") Dear Mr. Smith: Pursuant to Article 5, paragraph 1 of that certain Contract for Private Development dated July 27, 2005 ("Contract") by and between Ryan and the Housing and Redevelopment Authority in and for the City of Richfield ("HRA"), Ryan is required to submit its Concept Plan to the HRA and the City Council for their review and approval no later than 180 days after execution of the Contract, which date is January 23, 2006. It is unlikely that Ryan will be able to complete its Concept Plan for submittal by said date. As a result, Ryan hereby respectfully requests that the HRA and the City Council grant an extension of such date for an additional sixty (60) days to March 24, 2006. Pursuant to your letter dated January 5, 2006, it is my understanding that HRA will be reviewing this request at its January 17, 2006 meeting. If the HRA is agreeable to granting the requested extension, please have an amendment to the Contract prepared. Thank you for your assistance and attention to this matter. cc: John Dean, Kennedy & Graven Kristi R. Riley, Barna Guzy & Steffen Jeffrey S. Johnson, Barna Guzy & Steffen Charles Diessner, Fredrickson & Byron AZ LICENSE ROC095146, CA LICENSE 800760, OR LICENSE CC8155932