09-16 CC-HRA-PC Work Session
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Concurrent City Council, Housing and
Redevelopment Authority and Planning
Commission Work Session
September 16, 2019
CALL TO ORDER
The meeting was called to order by Housing and Redevelopment Authority Chair Supple at
5:45 p.m.
ATTENDANCE
Council Members Present: Maria Regan Gonzalez, Mayor; Mary Supple; Edwina Garcia; Ben
Whalen; and Simon Trautmann.
HRA Members Present: Mary Supple, Chair; Maria Regan Gonzalez; Pat Elliott; Erin Vrieze
Daniels; and Sue Sandahl.
PC Members Present: Allysen Hoberg, Chair; Susan Rosenberg; Bryan Pynn; Sean Hayford
Oleary; Jim Rudolph; and Peter Lavin.
PC Members Absent: Kathryn Quam.
Staff Present: John Stark, Director of Community Development/HRA Executive
Director; Katie Rodriguez, City Manager; Melissa Poehlman, Assistant
Community Development Director; and Julie Urban, Housing Manager.
CONSIDERATION OF TWO POTENTIAL DEVELOPMENT PROPOSALS FOR
ITEM #1
6501 PENN AVENUE
Executive Director Stark and Housing Manager Urban presented the staff report, explaining
that the HRA had purchased the site earlier this year and that staff have been meeting with two
development teams interested in developing the site. Housing Manager Urban introduced Erik
Weingarden and Dave Lundy from the development team of Broadway Investors.
Mr. Lundy explained that they were proposing to combine property to the south and east
along with the HRA property to construct 150 units of multi-family housing in a four-story building,
with rooftop amenities, and first floor commercial space with uses not available in the area such as
a gym or co-working space.
Concurrent City Council, HRA, and
Planning Commission Work Session -2- September 16, 2019
In response to a question from Commissioner Pynn, Mr. Lundy explained that they could do
a smaller project if they were unable to purchase neighboring properties, but they didn’t think that
was the best option for the City.
Council Member Trautmann stated that access onto Oliver Avenue would have a big impact
on the residential neighborhood.
In response to a question from Commissioner Vrieze Daniels, Mr. Lundy explained that they
were considering 40% of the units to be affordable at 60% of the Area Median Income, per the
Housing TIF district requirements. He confirmed that they would be open to discussing deeper
affordability and that they would be willing to provide fully-accessible units.
Wynne Yelland and Adam Jonas from Locus Architects, along with Adam Seraphine from
NHH Properties, presented a project with 40 multi-family units and approximately 6,000 square feet
of leasable commercial space on the first floor. A second phase on the property to the south with
an additional commercial space and 20 units of housing could be added if that owner were
interested in selling. The project would have a value of approximately $10 million, would be
financed locally and would use tax increment and grant funds to achieve affordability in the
housing.
Commissioner Hoberg supported the idea of local businesses in the commercial space and
encouraged the developer to figure out the affordable component soon.
Mayor Regan Gonzalez encouraged them to provide more details on how the project would
meet City goals and asked if they had ideas and experience providing affordable commercial
space. She questioned if it was realistic to expect to connect redevelopment with economic
development.
Mr. Seraphine explained that they’re looking at different options for affordable commercial
space including reducing costs, finding funds to finance build-outs, and offering incubator space
with shared costs. Executive Director Stark confirmed that using public subsidies to finance
businesses would be new for the City.
In response to a question from Commissioner Pynn, Mr. Seraphine explained that the two
options for the property to the east would be to construct row homes or to build a bigger building,
although explained that the bigger building was not their preferred option.
Council Member Whalen asked for clarification on the mix of affordability, green space, and
access on Penn Avenue. Mr. Seraphine explained that it’s too early to commit to specific
affordability but that they are committed to including it, green space depends on the parking ratio,
and that the results of the Penn Avenue study will help determine access. Executive Director Stark
explained that the City/County study of Penn Avenue will begin soon.
Commissioner Hayford Oleary stated that he had more concerns about the second
proposal and didn’t like to see surface parking. He prefers the larger number of units the first
proposal provides.
Commissioner Vrieze Daniels stated that she preferred the economic development potential
of the second proposal and believes that multiple, smaller buildings fit better on Penn Avenue.
Commissioner Elliott and Council Member Trautmann suggested having the developers
come back with more information.
Commissioner Sandahl expressed the desire to some green space.
Concurrent City Council,HRA,and
Planning Commission Work Session -3- September 16,2019
Executive Director Stark clarified that there were some additional details that could be
provided without a significant investment by the development teams but items like detailed financial
and engineering work wouldn't happen until one team was selected.
Commissioner Rudolph agreed that more information was needed. He also wanted to
consider both developers' track records with previous developments.
Council Member Whalen asked to see what the Broadway Investors proposal would look
like without the adjacent properties and wanted more information from Locus/NHH on the
affordable housing numbers.
Council Member Trautmann introduced the community leaders from the Penn Central group
and suggested the development teams may want to connect with them as they move forward.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:48 p.m.
Date Approved: October 21, 2019
Mary B. S pple
HRA Chair
\.
Julie Urban J: ri Stark
• sing Manager Exec ve Director