08-17-09 RegularHOUSING AND REDEVELOPMENT
~ AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 17, 2009
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:15 p.m.
ROLL CALL
HRA Members
Present: Sue Sandahl, Chair; Joan Helmberger; Doris Rubenstein; and Steven
Quam.
HRA Members
Absent: David Gepner.
Staff Present: John Stark; Acting Executive Director; Chris Regis, Finance Manager;
Karen Barton, Assistant Community Development Director; Myrt Link,
Community Development Accountant; John Dean, HRA Attorney; and
Nancy Gibbs, City Clerk.
Item #1 HRA APPROVAL OF MINUTES
M/Rubenstein, S/Helmberger to approve the minutes of (1) Regular HRA Meeting of July
20, 2009.
Motion carried 4-0.
Item #2 HRA APPROVAL OF AGENDA
M/Rubenstein, S/Helmberger to approve the agenda.
HRA Meeting -2- August 17, 2009
Motion carried 4-0.
Item #3 CONSENT CALENDAR
A. Consideration of approval of resolution authorizing execution of instruments necessary to
purchase up to four vacant and foreclosed houses for rehabilitation and resale. through
Neighborhood Stabilization Program, up to total. expenditure of $750,000 through
September 30, 2010 S.R. No. 29
HRA RESOLUTION NO. 1052
RESOLUTION AUTHORIZING HRA EXECUTIVE DIRECTOR AND
BOARD CHAIR TO ACQUIRE CERTAIN FORECLOSED HOMES
WITHIN THE CITY AND TO EXECUTE ALL INSTRUMENTS AND
CONTRACTS RELATED THERETO
This resolution appears as HRA Resolution No. 1052.
B. Consideration of approval of resolution authorizing execution of instruments necessary to
purchase up to seven vacant and foreclosed houses for demolition using up to $842,896
from Housing and Redevelopment Fund through December 31, 2009 S.R. No. 30
HRA RESOLUTION NO. 1053
RESOLUTION AUTHORIZING HRA STAFF TO ACQUIRE CERTAIN
FORECLOSED HOMES WITHIN THE CITY AND TO EXECUTE ALL
INSTRUMENTS AND CONTRACTS RELATED THERETO
This resolution appears as HRA Resolution No. 1053.
M/Helmberger, S/Quam to approve the Consent Calendar.
Motion carried 4-0.
Item #4 CONSIDERATION AND ACCEPTANCE OF RICHFIELD HRA ANNUAL TAX
INCREMENT DISTRICT STATUS UPDATE S.R. NO. 31
Acting Executive Director Stark presented Staff Report No. 31.
Rebecca Kurtz, Ehlers and Associates, presented Tax Increment District Status Update.
The HRA requested that Ehlers and Associates return with options of pros and cons of
Richfield Rediscover Bonds.
Chair Sandahl stated it would be helpful to have additional detail to where TIF district
property is located.
Commissioner Quam stated that a map would be appreciated.
HRA Meeting -3- August 17, 2009
M/Sandahl, S/Quam to approve acceptance of Richfield HRA Annual Tax Increment District
Status Update.
Motion carried 4-0.
Item #5 CONSIDERATION OF OPTION AGREEMENT WITH ASI; CANDLEWOOD PARCEL
S.R. NO. 32
Acting Executive Director Stark presented Staff Report No. 32.
HRA Attorney Dean explained option agreements and presented a change that was added
to page 7 of the agreement.
Commissioner Rubenstein asked if there has been any marketing for a restaurant for that
site.
Acting Executive Director Stark stated that yes; they have been passively marketing the site.
Chair Sandahl questioned the need for more senior housing and wants to see a more
balanced approach.
HRA Attorney Dean stated that this motion should be contingent upon the approval of Item
#6.
Commissioner Quam stated he has concerns about Item #6 but will approve this motion with
the change.
M/Sandahl, S/Helmberger to approve the option agreement with ASi; Candlewood Parcel
contingent upon the approval of Item #6.
Motion carried 4-0.
Item #6 CONSIDERATION OF HOUSING DISTRICT 2009-1 AND DISTRICT 2009-2
S.R. NO. 33
Acting Executive Director Stark presented Staff Report No. 33.
Ms. Kurtz explained the "but for" test.
Acting Executive Director Stark stated that this property is not currently on the tax rolls. He
then presented a graph to show the differences in selling the property with TIF and without TIF.
Commissioner Quam stated he has concerns with the way we are using the TIF. He stated
that this is not the open market; we are using TIF to give away raw land and questioned how we
address that criticism.
HRA Attorney Dean stated this would have to be an administrative policy however the HRA
would be receiving dollars to be spent on public purposes and beneficial to the public.
HRA Meeting -4- August 17, 2009
Commissioner Quam stated that he was a proponent of TIF, however is not comfortable
using TIF this way.
Acting Executive Director Stark stated that TIF is a tool, a deferred payment mechanism.
M/Rubenstein, S/Helmberger to approve Housing District 2009-1 and District 2009-2.
Motion carried 3-1. (Quam oppose)
Item #7 CONSIDERATION OF RESOLUTIONS APPROVING 2010 PROPOSED HRA
BUDGET AND TAX LEVY AND 2009 REVISED HRA BUDGET S.R. NO. 34
Acting Executive Director Stark presented Staff Report No. 34.
Acting Executive Director Stark gave a PowerPoint presentation of 2009 Revised/2010
Proposed Community Development/HRA Budget.
Finance Manager Regis stated this budget shows the same maximum levy but we are
collecting less money due to market value declining.
Commissioner Rubenstein stated she lives at Woodlake Village and she did .not see any
multi-family developments available for transformation loans or Richfield Rediscover money
available.
Acting Executive Director Stark explained how property that is individually owned but pay
association fees are different due to the fact that the bank cannot put a lien on common area
property but can put it on the property taxes. This is something Golden Valley and St. Louis Park
are looking at and maybe Richfield should too.
Commissioner Quam questioned where the million dollars for Penn Avenue acquisition
came from.
Acting Executive Director Stark explained the money is from bonds issued in 1996 and rules
for TIF were different than they are today. However we have been advised that we need to start
spending that money now on capital improvements and land acquisition.
Commissioner Quam asked who made the decision to have that money go to the Penn
Avenue acquisition.
Acting Executive Director Stark responded that the decision was made by the HRA last year.
M/Helmberger, S/Quam that the following resolutions be adopted and that they be made
part of these minutes:
HRA RESOLUTION NO. 1054
RESOLUTION APPROVING PROPOSED 2010 HOUSING AND
REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE
2010 TAX LEVY
This resolution appears as HRA Resolution No. 1054.
HRA Meeting -5- August 17, 2009
HRA RESOLUTION NO. 1055
RESOLUTION AUTHORIZING REVISION OF THE 2009 BUDGET OF
THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
This resolution appears as HRA Resolution No. 1055.
Motion carried 4-0.
Item #8 EXECUTIVE DIRECTOR REPORT
None.
Item #7 CLAIMS AND PAYROLL
M/Quam, S/Sandahl that the following claims and payrolls be approved:
U.S. Bank 08-17-2009
Section 8 Checks: 117179 - 117197; 117698 - 117812
HRA Checks: 30634 - 30666
TOTAL
Motion carried 4-0.
ADJOURNMENT
$ 164,649.86
$ 69, 048.47
$233,698.33
The meeting was adjourned by unanimous consent at 8:53 p.m.
Date Approved: August 17, 2009 a~--)
Suza M. Sandahl
Nancy Gibbs Jol tark
City Clerk ~ ng Executive Director