03-08-10 SpecialJ
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Meeting
March 8, 2010
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:00 p.m.
ROLL CALL
HRA Members
Present: Sue Sandahl Chair; Joan Helmberger; Doris Rubenstein; and Steven
Quam.
HRA Members
Absent: David Gepner.
Staff Present: Steven L. Devich, Executive Director; John Stark, Community
Development Director; Karen Barton, Assistant Community Development
Director; and Cheryl Krumholz, Recording Secretary.
Item #1 HRA APPROVAL OF AGENDA
Chair Sandahl amended the agenda to include:
• Item #6 -Claims and Payroll
• Item #7 -Executive Director Report
M/Quam, S/Rubenstein to approve the agenda as amended.
Motion carried 4-0.
HRA Special Meeting -2- March 8, 2010
Item #2 CONSIDERATION OF REVISED RICHFIELD REDISCOVERED CONTRACT FOR
PRIVATE REDEVELOPMENT BETWEEN HRA AND CHARLES ZAWISLAK FOR
REDEVELOPMENT OF 6320 MORGAN AVENUE UNDER RICHFIELD
REDISCOVERED PROGRAM S.R. NO. 12
Community Development Director Stark presented Staff Report No. 12.
M/Helmberger, S/Quam to approve the revised Richfield Rediscovered contract for private
redevelopment between HRA and Charles Zawislak for redevelopment of 6320 Morgan Avenue
under Richfield Rediscovered Program.
Motion carried 4-0.
Item #3 CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF REAL
PROPERTY AT 1407 EAST 66TH STREET UTILIZING PROCEEDS FROM BONDS
OF 1996, PENDING FINDING OF CONSISTENCY FROM PLANNING
COMMISSION S.R. NO. 13
Assistant Community Development Director Barton presented Staff Report No. 13.
Commissioner Rubenstein asked about the price being negotiable.
Assistant Community Development Director Barton explained the use by the City of the
"First Look Program" and the struggles to obtain a purchase agreement because there were
multiple bidders.
Commissioner Helmberger asked about the lot being a commercial use without the house.
Assistant Community Development Director Barton explained the purchase could facilitate
the acquisition of additional properties along 66th Street. The intent is to remove the structure,
clear the land and land bank, probably for several years before there is interest in purchasing due
to the economy.
Chair Sandahl stated this was good HRA planning.
Community Development Director Stark explained the requirements for using the bond
proceeds.
M/Sandahl, S/Quam that the following resolution be adopted and that it be made part of
these minutes:
HRA RESOLUTION NO. 1069
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 1407 EAST 66TH STREET
Motion carried 4-0. This resolution appears as HRA Resolution No. 1069.
HRA Special Meeting -3- March 8, 2010
Item #4 CONSIDERATION OF RESOLUTION AFFIRMING HRA'S SUPPORT OF HOUSING
DEVELOPMENT CONCEPT AT 6401 LYNDALE AVENUE (WOODLAKE PLAZA)
AND EXPRESSING WILLINGNESS TO FURTHER EXAMINE PUBLIC FINANCING
FOR PROJECT S.R. NO. 14
Community Development Director Stark presented Staff Report No. 14.
Commissioner Quam asked about the process for the Planning Commission's review
before City Council action.
Community Development Director Stark stated that the Planning Commission review is to
determine if the creation of the Tax Increment Financing (TIF) District is in compliance with the
Comprehensive Plan.
Commissioner Rubenstein stated she is not a fan of TIF. She questioned the property
being blighted and if it is, the owners should not be rewarded with TIF for not taking care of the
site. She also stated current tenants had contacted her regarding the owner's lack of seeking
additional tenants.
Community Development Director Stark explained the differences in TIF Districts. A
Housing TIF District does not require blight on substantially substandard structures and its purpose
is to provide 20 - 40% of affordable housing units in the project.
Commissioner Rubenstein asked if the City would offer relocation assistance since
businesses are being displaced.
Community Development Director Stark explained the HRA is not required to provide
assistance because they are not party to the termination of leases.
Terry McNellis, Michael Development, explained the estimated property value for tax
purposes and their financial risk in the project. He added current leases have not been extended.
Commissioner Rubenstein stated she liked the project but has concerns regarding the
length of the TIF District.
Chair Sandahl expressed support for the project and TIF assistance.
Pete Keely, project architect, reviewed the proposed project plans, including exterior and
interior design, amenities, and parking.
Commissioner Quam said the project was a good mix. He asked the developer about
including the three residential lots behind the site.
Mr. McNellis explained that would be a different project than what is proposed. He also
discussed the proposed project's screening for those lots and the consideration of less parking but
with the ability to revisit that later.
Commissioner Quam discussed the issues which should be considered by the Planning
Commission including potential zoning changes, weakening of retail interest, and Master Plan
impacts.
HRA Special Meeting -4- March 8, 2010
M/Quam, S/Rubenstein that the following resolution be adopted and that it be made part of
these minutes:
HRA RESOLUTION NO. 1070
RESOLUTION AFFIRMING SUPPORT FOR THE 90-UNIT HOUSING
DEVELOPMENT CONCEPT FOR THE PROPERTY LOCATED AT 6401
LYNDALE AVENUE AND EXPRESSING A WILLINGNESS TO CONTINUE TO
EXAMINE PUBLIC FINANCING FOR THAT PROJECT AND
RECOMMENDING THE CITY COUNCIL CALL FOR A PUBLIC HEARING ON
THE ESTABLISHMENT OF THE WOODLAKE PLAZA HOUSING TAX
INCREMENT FINANCE DISTRICT
Motion carried 4-0. This resolution appears as HRA Resolution No. 1070.
Item #5 CONSIDERATION OF PROPOSED PRELIMINARY AGREEMENT WITH RON
CLARK CONSTRUCTION AND DESIGN FOR EXPLORING FEASIBILITY OF
REDEVELOPMENT OF 3.5 ACRE PARCEL OCCUPIED BY FORMER RICHFIELD
PUBLIC WORKS MAINTENANCE FACILITY, VACANT HRA-OWNED MORTUARY
BUILDING AND OTHER ADJACENT PROPERTIES AND RIGHT-OF-ENTRY
AGREEMENT FOR USE OF 211 76TH STREET WEST AND 7608 PILLSBURY
AVENUE BY RON CLARK CONSTRUCTION AND DESIGN COMPANY
S.R. NO. 15
Community Development Director Stark presented Staff Report No. 15.
M/Sandahl, S/Helmberger to approve the proposed preliminary agreement with Ron Clark
Construction and Design for exploring feasibility of redevelopment of 3.5 acre parcel occupied by
former Richfield Public Works Maintenance Facility, vacant HRA-owned mortuary building and
other adjacent properties and right-of-entry agreement for use of 211 76th Street West and 7608
Pillsbury Avenue by Ron Clark Construction and Design Company.
Motion carried 4-0.
Item #6 CLAIMS AND PAYROLL
M/Rubenstein, S/Quam that the following claims and payrolls be approved:
U.S. Bank 03-08-2010
Section 8 Checks: 118636 - 118766 $ 160,623.60
HRA Checks: 30843 - 30859 $ 64, 883.16
TOTAL $225,506.76
Motion carried 4-0.
HRA Special Meeting
-5- March 8, 2010
Item #7 EXECUTIVE DIRECTOR REPORT
Executive Director Devich stated the Planning Commission is interested in conducting a
concurrent HRA/Planning Commission worksession in April or May.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:13 p.m.
Date Approved: march 8 , 2010
andahl
Cheryl Kfumhol~
Recording Secretary
Devich '
Director