07-15 HRA Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
July 15, 2019
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:07 p.m. in the Bartholomew Room.
HRA Members Mary Supple, Chair; Pat Elliott; Maria Regan Gonzalez; Sue Sandahl; and
Present: Erin Vrieze Daniels.
Staff Present: John Stark, Executive Director; Katie Rodriguez, City Manager; LaTonia
DuBois, Administrative Assistant.
APPROVAL OF THE MINUTES
M/Vrieze Daniels, S/Regan Gonzalez to approve the Regular Housing and Redevelopment
Authority meeting of June 17, 2019.
Motion carried 5-0.
Item #1 APPROVAL OF THE AGENDA
M/Sandahl, S/Vrieze Daniels to approve the agenda.
Motion carried 5-0.
Item #2 PUBLIC HEARING AND CONSIDERATION OF THE APPROVAL OF A
RESOLUTION AUTHORIZING THE SALE OF 6812 EMERSON LANE AND THE
APPROVAL OF A CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY AND ENDRES CUSTOM
HOMES, INC. FOR THE CONSTRUCTION OF FIVE SINGLE FAMILY HOMES
UNDER THE RICHFIELD REDISCOERED PROGRAM (S.R. NO. 27)
Executive Director Stark presented Staff Report No. 27.
Executive Director Stark addressed questions submitted by neighbors prior to this meeting.
Executive Director responded to questions from Commissioner Vrieze Daniels and Chair
Supple.
Chair Supple opened the public hearing.
HRA Meeting Minutes -2- July 15, 2019
Chuck Strauch, resident of 6601 Emerson Avenue, expressed concerns regarding property
tax, how much the City has invested and how much more money the City will invest in the property
and increased police and fire calls. Stated he would like the property left alone and sold to the
neighbors.
Steve Archer, resident of 6720 Emerson Avenue, expressed concerns with the elevation of
the new homes and would like three homes considered. Also expressed concerns with the current
condition of the land.
Jody Powell, resident of 6800 Emerson Lane, inquired about the terms of the contract
relating to the builder having purchase agreements by December 31 and not paying anything to
hold the property until then. She also expressed concerns related to privacy fences and said five
houses felt unnatural.
Sandi Sween, resident of 7121 Oak Grove Blvd, expressed concerns about building height
and pollution from freeway and having kids live in the new homes. Suggested other uses would be
more beneficial.
April Pream, resident of 6639 Emerson Avenue, spoke of how the proposal disrupts the
landscape of existing homes and would have a negative impact on current resident’s feelings about
their own property. Expressed water run off concerns and potential costs that could be passed on to
current residents.
John Powell, resident of 6800 Emerson Lane, expressed concerns with developments
impact on the neighborhood. Does not believe five homes would be right. Powell asked if the
neighborhood could be involved with the development if it goes forward and have an input
regarding landscaping, privacy and the homes.
M/Vrieze Daniels, S/Sandahl to close the public hearing.
Motion carried 5-0.
Chair Supple inquired about the cost to the City. Executive Director Stark explained the
costs to date and explained the intent and what is written in the contract is that the City would not
incur any further expenses once Mr. Endres takes title to the property, the City may incur minimal
holding costs for maintaining the property until Mr. Endres takes title. Executive Director Stark
explained the extraordinary utility costs Mr. Endres is incurring to develop the land. Executive
Director Stark mentioned if approved this would need to go to the City Council for sub division
waiver approval. Executive Director explained the Housing and Redevelopment Authority (HRA) is
not charging holding fees because it is not the practice of the HRA to charge holding costs.
Executive Director Stark addressed the privacy fences and screening concerns, expressing
that the City has not seen the landscaping plan yet and the City would continue to listen to input
from the neighborhood regarding screening.
Resident Chuck Strauch asked what it will cost the City for the road and utilities. Executive
Director Stark explained cost for the road and utilities to the HRA would be zero, the developer will
pay for the road and the City only has to pay to maintain the land until closing on the property.
Commissioner Sandahl inquired about future maintenance of the new road. Executive
Director Stark explained the City would maintain the road as it does all roads in the City.
HRA Meeting Minutes -3- July 15, 2019
Commissioner Sandahl inquired about the term “hammer head” listed on the plans.
Executive Director Stark explained “hammer head” refers to the road design which allows fire
trucks to enter and exit the property.
Commissioner Regan Gonzalez asked Executive Director Stark to explain the sub division
waiver. Executive Director Stark explained the sub division waiver.
Commissioner Regan Gonzalez asked that what was discussed at the previous work
session regarding property tax, building the homes verses selling the property be reviewed.
Commissioner Vrieze Daniels read the notes from the work session. Executive Director Stark
explained the taxes would be aggregate.
Chair Supple asked about landscaping being part of the motion.
Commissioner Elliott mentioned working with neighbors to address landscaping concerns.
Executive Director Stark stated the motion would include that the Executive Director would need to
approve landscaping plans and stated that the concerns would be taken seriously.
M/Sandahl, S/Supple to adopt a resolution authorizing the sale of 6812 Emerson Lane to
Endres Custom Homes Inc. and authorize execution of a Contract for Private Development
between the Housing and Redevelopment Authority and Endres Custom Homes, Inc. for the
construction of five single family homes under the Richfield Rediscovered Program, with the
understanding that the Executive Director would be responsible for final approval of the
landscaping plan and the neighbors will be consulted in terms of landscaping, screening and
privacy.
Commissioner Vrieze Daniels stated she was torn about this project, mentioned holding
cost, sale price and future development opportunities on the site.
Commissioner Elliott stated the Housing and Redevelopment Authority and the neighbors
are not crazy about putting five homes on a small piece of land, the street is boxed in and he is
against the project. There are grading concerns, the project is overcrowding and is beneath what
Richfield aspires to.
Commissioner Sandahl spoke in favor of the project, recovery from taxes and how other
developments in the City on smaller sites have worked. They will be nice homes for families and
will be a plus for the community, providing more homes for families and disagreed that the area
would be crowded. Executive Director Stark explained lot sizes.
Commissioner Regan Gonzalez asked about what would happen to the land if this project
was not approved. Executive Director Stark explained that it would depend and how developing
three or four homes could be economically unfeasible for a builder.
Commissioner Elliott inquired about what would happen if the builder did not have five
purchase agreements by the deadline. Executive Director Stark explained the development
agreement would become invalid. Commissioner Elliott mentioned other projects that sat around
too long. Executive Director Stark stated that the project would come back to the Housing and
Redevelopment Authority for review if the builder did not fulfill the terms of the contract.
Commissioner Sandahl spoke in favor of Endres Custom Homes, Inc.
Commissioner Regan Gonzalez asked about other options could be considered.
Commissioner Elliott spoke of homeowners and believes the homeowners have a desire to
purchase the property and would like to give the homeowners another shot.
HRA Meeting Minutes -4- July 15, 2019
Commissioner Sandahl spoke of current untended condition of site and believes it will
provide upscale housing.
Executive Director Stark spoke of time constraints of project relating to future work being
planned by Public Works and the current housing market.
Chair Supple mentioned the water run off situation and wants to make sure it is clearly
looked at by engineering staff.
Commissioner Sandahl stated it is a good opportunity that may not come back.
Commissioner Vrieze Daniels stated that she agrees with giving the development a shot.
Dustin Endress, of Endress Custom Homes, Inc., addressed drainage concerns and spoke
of how building four homes opposed to five would not change anything other than driving up the
cost of the four homes. Five homes are required to cover the cost of the road without being priced
higher than other homes.
Chair Supple took the vote.
Motion carried 3-2, with Commissioners Regan Gonzalez and Elliott voting against the
proposal.
Item #5 HRA DISCUSSION ITEMS
None
Item #6 EXECUTIVE DIRECTOR REPORT
Executive Director Stark shared construction updates for the Chamberlain Apartments.
Commissioner Sandahl inquired about another tour of the Chamberlain Apartments to which
Executive Director Stark stated he would look into.
Item #7 CLAIMS AND PAYROLLS
M/Vrieze Daniels, S/Sandahl that the following claims and payroll be approved:
U.S. BANK 07/15/2019
Section 8 Checks: 130876 – 130956 $161,184.20
HRA Checks: 33658 - 33688 $189,925.08
$351,109.28
TOTAL
Motion carried 5-0.
HRA Meeting Minutes -5- July 15,2019
Item #8 ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:28 p.m.
Date Approved: August 19, 2019
-17/11/k1
Mary B. Su le i`�/
HRA Chir
1461
aTonia uBois Jo r Star
Administrative Assistant Executi - Director