02-18 HRA Regular
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
February 18, 2020
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:01 p.m. in the Council Chambers.
HRA Members Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl; and
Present: Pat Elliott.
HRA Members Erin Vrieze Daniels
Absent:
Staff Present: Julie Urban, Acting Executive Director/Housing Manager; Melissa Poehlman,
Assistant Community Development Director; Kate Aitchison,
Housing/Communications Specialist; and LaTonia DuBois, Administrative
Assistant.
OPEN FORUM
Commissioner Supple explained the Open Forum and invited members of the audience to
speak.
David Snyder spoke of the need for affordable and accessible housing and the need to
seek out developers that share the vision of this need for the community; he also thanked the HRA
for all of their work.
James Jaffe spoke of his appreciation for the recent work session on affordable housing
and looks forward to seeing how it translates into policies. Spoke of his appreciation for the
consensus that moving forward the City Council and HRA will continue conversations about
affordability, social justice and equity.
APPROVAL OF THE MINUTES
M/Regan Gonzalez, S/Sandahl to approve the minutes of: 1) Concurrent Housing and
Redevelopment Authority and City Council Work Session of January 21, 2020; and 2) the Regular
Housing and Redevelopment Authority meeting of January 21, 2020.
Motion carried 4-0
HRA Meeting Minutes -2- February 18, 2020
Item #1 2019 HRA/EDA YEAR IN REVIEW
Assistant Community Development Director, Melissa Poehlman; Acting Executive
Director/Housing Manager, Julie Urban; and Housing/Communications Specialist Kate Aitchison
presented the 2019 HRA/EDA Year in Review.
Commissioner Sandahl commended staff on their great work.
Commissioner Regan Gonzalez also complimented staff on their work and addressed
community members and small business owners to inform them of the many things the HRA and
staff are here to offer support for.
Chair Supple also complimented staff on their work and mentioned the work done with
People with Capes to address the needs assessment at Richfield Towers, their report and efforts to
support residents.
Commissioner Elliott also complimented staff and expressed appreciation for the information
provided by staff to the HRA.
Item #2 APPROVAL OF THE AGENDA
M/Elliott, S/Sandahl to approve the agenda.
Motion Carried 4-0
Item #3 CONSENT CALENDAR
Acting Executive Director/Housing Manager Urban presented the consent calendar:
A. Consideration of a Second Amendment to the Contract for Private Development for
6812 Emerson Lane. (S.R. No. 8)
Commissioner Regan Gonzalez inquired about full cooperation with the property owners
regarding a piece of property behind their homes.
Acting Executive Director/Housing Manager Urban explained that all residents would have
to be in agreement regarding the piece of property behind homes.
Chair Supple explained where the strip of land is located.
Commissioner Elliott suggested reaching out to property owners about purchasing the land.
Acting Executive Director/Housing Manager explained the piece of property behind homes
could be addressed at a later date.
HRA Meeting Minutes -3- February 18, 2020
M/Regan Gonzalez, S/Elliott
Motion Carried 4-0
Item #4 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None
Item #5 CONSIDERATION OF A RESOLUTION APPROVING A PRELIMINARY
DEVELOPMENT AGREEMENT BETWEEN THE HRA AND ENCLAVE
DEVELOPMENT, LLC FOR REDEVELOPMENT OF PROPERTY AT 65TH STREET
AND LYNDALE AVENUE. (S.R. NO. 9)
Assistant Community Development Director Poehlman presented Staff Report No. 9.
Assistant Community Development Director Poehlman addressed questions received prior
to the meeting and explained how the use of Tax Increment Financing (TIF) is determined to be
used and explained what the next steps would be. Assistant Community Development Director
Poehlman explained specifically the preliminary development agreement being considered means
the HRA agrees the property is considered a mixed use site, that it is in agreement with what our
Comprehensive Plan says and that the HRA is willing to study the project more and consider Tax
Increment.
Chair Supple brought up a question about TIF, how it is analyzed and how TIF affects other
Taxing authorities such as the school district.
Assistant Community Development Director Poehlman explained how TIF works and that
the school district would not receive less funding if this project was approved for TIF.
Chair Supple addressed the questions about how this project would affect low income
housing, if any Naturally Occurring Affordable Housing (NOAH) would be removed for this project,
the long term effect of the project if it does not offer affordable housing, and the possibility of
displacement.
Assistant Community Development Director Poehlman explained that she is not aware of
any NOAH housing being removed, but that there is one single family home owned by the property
owner, that would be a question for the property owner, and that it is a commercial development
that no housing is currently located in the buildings.
Commissioner Regan Gonzalez inquired about long term impact, our roll of providing TIF to
developments and what the options to consider different types of proposals would be.
Assistant Community Development Director Poehlman offered explanation of what the
preliminary development agreement entailed.
Commissioner Elliott inquired about interest from other developers for the property.
HRA Meeting Minutes -4- February 18, 2020
Assistant Community Development Director Poehlman explained that there are developers
interested in land in the area but no other developers have reached out to staff for this property
specifically.
Chair Supple mentioned concern about the small businesses currently located in the area
and about any programs available for displacement or relocation.
Assistant Community Development Director Poehlman explained the new Economic
Development Authority (EDA) programs that were adopted last month to help small businesses,
but the possibility of what a relocation program might look like is still being discussed among staff.
Poehlman also explained that the property owner and developer have a worked out a purchase
agreement that would not close on the property for a year and that would offer current business
owners close to a year to find new space and there are current retail vacancies in the area.
Chair Supple inquired about the timeline of the agreement and asked the developer about
their plans to reach out to the current tenants and community.
Austin Morris, Enclave Development addressed the HRA and explained the risk of the
developer reaching out and using resources without a predevelopment agreement in place.
Commissioner Sandahl clarified that the developer does not currently own the property and
the developer would not be in a current position to reach out to the tenants.
Property owner Bruce Hinks spoke of desire to sell the property and how often he is
approached to sell the property and how he would like to work with the proposed development
team.
There was further discussion regarding the process of the preliminary development
agreement and what the next steps will be, which portions will be brought to the Planning
Commission, back to the HRA and to the City Council.
M/Sandahl, S/Elliott to 1) approve a preliminary development agreement between the
Housing and Redevelopment Authority and Enclave Development, LLC for development of
properties of the northeast corner of 65th Street and Lyndale Avenue; and 2) authorize execution
of the Agreement by the Housing and Redevelopment Authority Chair and Executive Director
Motion Carried 4-0
Chair Supple explained to a member of the audience (a business owner at the property
location, who spoke from the audience and did not sign in to provide his name and proper spelling)
that by voting to allow the preliminary development agreement allows the developer to have
discussion with current tenants.
Commissioner Regan Gonzalez asked the property owner and developer to hold a public
meeting regarding the development.
Assistant Community Development Director Poehlman explained the neighborhood meeting
is a part of the process after the preliminary development agreement is in place.
Peter (owner of the Enchanted Rock Garden, did not sign in to provide proper spelling of
last name) spoke of his desire to establish an opportunity to comment on the development and
discussed his lease agreement.
HRA Meeting Minutes -5- February 18, 2020
Item #6 CONSIDERATION OF HOUSING AFFORDABILITY CONCEPTS PROPOSED BY
PENN INVESTMENTS, LLC FOR THE DEVELOPMENT OF 6501 PENN AVENUE
SOUTH, AND 6500 AND 6504 OLIVER AVENUE SOUTH. (S.R. NO 10)
Housing Manager Julie Urban presented Staff Report 10 and gave a brief explanation of
both options.
Commissioner Elliott inquired about why the Boisclair development team was chosen and
expressed concerns with both options and recused himself.
Housing Manager Urban explained the majority of feedback received from policy makers
indicated the Boisclair development teams’ proposal was more desirable.
Commissioner Sandahl expressed concerns with 100% affordability in a single building and
spoke of accessibility options.
Chair Supple spoke of needs for more affordable housing.
Commissioner Regan Gonzalez expressed her support for Option 1 for more affordable
housing and spoke of the overall need for maintain and creating more affordable housing.
Commissioner Elliott suggested further educating the community on affordable housing.
M/Regan Gonzalez, S/Supple to approve Option 1 of the two affordable options and direct
Penn Investments, LLC to continue to explore the feasibility of option 1 for 6501 Penn Avenue
South and 6500 and 6504 Oliver Avenue South.
Motion Failed 2-2
Item #7 HRA DISCUSSION ITEMS
The People with CAPES report on Richfield Towers was mentioned. Commissioner
Sandahl spoke of the lack of support services. Housing Manager Urban gave history on the
support services and informed that the support services position has been filled.
Item #8 EXECUTIVE DIRECTOR REPORT
None
Item #9 CLAIMS
HRA Meeting Minutes -6- February 18,2020
M/Regan Gonzalez, S/Elliott that the following claims be approved:
U.S. BANK 2/17/2020
Section 8 Checks 131432-131515 $162,722.04
HRA Checks 33798-33810 $66,097.85
Total $228,819.89
Motion carried 4-0
Item #10 ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:59 p.m.
Date Approved: March 16, 2020
—217UM
Mary B. Supple
HRA Cha'
\
LaTonia DuBois J;1'n,S :r
Administrative Assistant xec we Director