071910 agenda packetCITY OF RICHFIELD, MINNESOTA
MONDAY, JULY 19, 2010
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
Roll call
1. Approval of minutes of Regular HRA Meeting of-June 21, 2010
2. HRA approval of agenda
3. Consideration of resolution identifying need for Livable Communities Demonstration
Account Funding and authorizing application for grant funds for Woodlake Plaza
housing redevelopment project
Staff Report No. 24
Notes:
4. Consideration of sale of garage at 1407 East 66th Street to Offing House Movers
Staff Report No. 25
Notes:
5. Executive Director report
Notes:.
6. Claims and payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
J
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 21, 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; Doris Rubenstein and Steven Quam.
HRA Members
Absent: Joan Helmberger and David Gepner.
Staff Present: Steven L. Devich, Executive Director; John Stark; Community
Development Director; Karen Barton, Community Development Manager;
and Cheryl Krumholz, Recording Secretary.
Item #1 APPROVAL OF MINUTES OF (1) SPECIAL HRA/PLANNING COMMISSION
WORKSESSION OF MAY 17, 2010; (2) REGULAR HRA MEETING OF MAY 17,
2010; ANI~ (3) SPECIAL HRA/CITY COUNCIL/PLANNING COMMISSION
WORKSESSION OF JUNE 8, 2010
M/Rubenstein, S/Quam to approve the minutes.
Motion carried 3-0.
Item #2 HRA APPROVAL OF AGENDA
M/Quam, S/Rubenstein to approve the agenda.
Motion carried 3-0.
Item #3 CONSENT CALENDAR
A. Approval of resolution authorizing HRA not to waive monetary limits on statutory
municipality tort liability established by MN Statutes 466.04 S.R. No. 20
HRA Meeting -2- June 21, 2010
HRA RESOLUTION NO. 1074
RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY
LIMITS ESTABLISHED BY MINNESOTA STATUTES 466.04
This resolution appears as HRA Resolution No. 1074.
B. Approval of right-of-entry agreement with Michael Development related to HRA owned
property at 515 West 64th Street S:R. No. 21
M/Rubenstein, S/Quam to approve the Consent Calendar.
Motion carried 3-0.
Item #4 CONSIDERATION OF PROPOSED PRELIMINARY AGREEMENT WITH SHERMAN
ASSOCIATES FOR REDEVELOPMENT OF 301 WEST 77TH STREET, VACANT
CANDLEWOOD PARCEL S.R. NO. 22
Community Development Director Stark presented Staff Report No. 22.
Ryan Sailor, Sherman Associates, clarified the rental rates for the'four units designated for
families transitioning from homelessness.
Commission Rubenstein stated she understood the need to have a partnership indicating
local financial support to apply for the MHFA funding.
Community Development Stark explained the preliminary agreement does not address the
donation of the HRA-owned land but rather that the HRA is in exclusive discussions with Sherman
Associates and grants them right-of-way to the property.
Mr. Stark also explained the 2005 appraisal of the property and suggested a new appraisal
be done to obtain a more current value.
Commission Quam expressed concern regarding the developer proceeding with the Phase
II portion of the proposed redevelopment.
Mr. Stark explained the preliminary agreement does not include Phase II but the final
development agreement could address mechanisms to leverage the completion of that portion.
Also, the preliminary agreement would terminate earlier than one year if no funding was obtained.
M/Sandahl, S/Rubenstein to approve the proposed preliminary agreement with Sherman
Associates for redevelopment of 301 West 77th Street vacant Candlewood parcel.
Motion carried 3-0.
Item #5 DISCUSSION REGARDING PROPOSED WOODLAKE HOUSING DEVELOPMENT,
64TH STREET AND LYNDALE AVENUE
Community Development Director Stark provided an update on the proposed development.
He also discussed the estimated market value and tax increment financing impacts.
Item #6 CONSIDERATION OF GUIDELINES FOR HRA FUNDED PENN AVENUE
STREETSCAPE IMPROVEMENTS GRANTS PROGRAM S.R. NO. 23
HRA Meeting -3- June 21, 2010
Community Development Manager Barton presented Staff Report No. 23.
HRA Commissioners discussed communication efforts, establishing incentives, and
maintaining streetscape consistency. They also encouraged the Chamber of Commerce's
participation in promoting the program.
Ms. Barton stated the design guidelines for the Perin Central Corridor address the
streetscape uniformity.
M/Quam, S/Rubenstein to approve the guidelines for the HRA-funded Penn Avenue
streetscape Improvements Grants Program.
Motion carried 3-0.
Item #7 EXECUTIVE DIRECTOR REPORT
Executive Director Devich stated the proposed O'Reilly Auto Parts, 1120E 66th Street (the
former King Oscar site), has opted to forego pursuing the site at this time because it is too small for
the size of building they require.
Item #8 CLAIMS AND PAYROLL
M/Rubenstein, S/Quam that the following claims and payrolls be approved:
U.S. Bank 06/21/2010
Section 8 Checks: 119036 - 119162
HRA Checks: 30914 - 30935
TOTAL
Motion carried 3-0.
ADJOURNMENT
The meeting-was adjourned by unanimous consent at 7:37 p.m.
Date Approved:
$ 158,081.20
$ 153, 913.89
$311,995.09
Suzanne M. Sandahl
Chair
Cheryl Krumholz
Recording Secretary
Steven L. Devich
Executive Director
AGENDA ITEM # 3
REPORT # 24
J STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 19, 2010
REPORT PREPARED BY:
REPORT PRESENTER:
JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
NAME, TITLE
JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
TITLE
ACTING DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY EXECUTNE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution identifying the need for Livable Communities Demonstration
Account Funding and authorizing an application for grant funds for the Woodlake Plaza
housin redevelopment project.
I. RECOMMENDED ACTION:
By Motion: Adopt a resolution identifying the need for Livable
Communities Demonstration Account Funding and authorizing an
application for grant funds for the Woodlake Plaza housing
redeveloament aroiect.
II. BACKGROUND
The prospective developers of the housing redevelopment project at the current
Woodlake Plaza site have identified an opportunity to seek grant funds from the
Metropolitan Council's Livable Communities Demonstration Account (LCDA). They
are proposing that the Housing and Redevelopment Authority (HRA) act as the
official applicant for a grant application in the amount of $352,000 for Stormwater
Management ($190,000), Public Infrastructure Reconstruction ($155,000) and
Bicycle Storage ($7,000).
07192010 Woodlake Plaza LCDA
In the absence of these grant funds, the stormwater management and infrastructure
reconstruction costs would be borne by the developer. If borne by the developer
these costs, however, could have an impact on the overall financial feasibility of the
project and/or the ability to provide rent rates which are appropriate for the units and
meet the requirements of a Housing Redevelopment District. In regard to the
bicycle storage, without grant funds this item could be omitted from the
development unless other cost reductions can be achieved in the project. It is
staff's conclusion, therefore, that application for these grant funds is in the best
interest of the HRA.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA is an eligible applicant for LCDA funds.
It is appropriate to seek grant funding for projects that further the goals
of the HRA; including provision of affordable housing and replacement
market-rate housing.
B. CRITICAL TIMING ISSUES
• The Metropolitan Council requires a resolution of support by August
19, 2010 in order to consider the grant application in the 2010 funding
cycle.
C. FINANCIAL
• The Development Agreement that the HRA is scheduled to consider in
August or September wilt address any financial impact of the receipt of
grant funds on the availability of Tax Increment Financing (TIF)
financing. It is likely, however, that the receipt of grant funds would
not commensurately reduce the need for TIF funding as a financing
gap had been identified by the developer even with the available TIF.
D. LEGAL
• Legal staff is aware of the grant application and is considering its
ramifications in the drafting of the development agreement (see
above).
IV. ALTERNATIVE RECOMMENDATION(S~
• Approve a resolution for the application for grant funds in a different amount
or for different uses;
• Do not approve the attached resolution.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
.~ -/
RESOLUTION NO.
RESOLUTION IDENTIFYING THE NEED FOR
LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDING AND
AUTHORIZING AN APPLICATION FOR GRANT FUNDS
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield (Richfield HRA) is a participant in the Livable Communities Act's Housing
Incentives Program for 2010 as determined by the Metropolitan Council, and is
therefore eligible to apply for Livable Communities Demonstration Account funds; and
WHEREAS, the Richfield HRA has identified a proposed project within the City of
Richfield that meets the Demonstration Account's purposes and criteria and is
consistent with and promotes the purposes of the Metropolitan Livable Communities Act
and the policies of the Metropolitan Council's adopted metropolitan development guide;
and
WHEREAS,. the Richfield HRA has the institutional, managerial and financial
capability to ensure adequate project administration; and
WHEREAS, the Richfield HRA certifies that it will comply with all applicable laws
and regulations as stated in the grant agreement; and
WHEREAS, the Richfield HRA agrees to act as legal sponsor for the project
contained in the grant application submitted on July 19, 2010; and
.WHEREAS, the Richfield HRA acknowledges Livable Communities
Demonstration Account grants are intended to fund projects or project components that
can serve as models, examples or prototypes for development or redevelopment
projects elsewhere in the region, and 'therefore represents that the proposed project or
key components of the proposed project can be replicated in other metropolitan-area
communities; and
WHEREAS, only a limited amount of grant funding is available through the
Metropolitan Council's Livable Communities Demonstration Account during each funding
cycle and the Metropolitan Council has determined it is appropriate to allocate those
scarce grant funds only to eligible projects that would not occur without the availability of
Demonstration Account grant funding.
NOW THEREFORE BE IT RESOLVED, that, after appropriate examination and
due consideration, the governing body of the Richfield HRA:
1. Finds that it is in the best interests of the HRA's development goals and priorities
for the proposed project to occur at this particular site and at -this particular time.
2. .Finds that the project component(s) for which Livable Communities Demonstration
Account funding is sought:
'~ "- rvL
(a) will not occur solely through. private or other public investment within the
reasonably foreseeable future; and
(b) will not occur within two years after a-grant award unless Livable Communities
Demonstration Account funding is made available for this project at this time.
3. Represents that the Richfield HRA has undertaken reasonable and good faith
efforts to procure funding for the project component for which Livable Communities
Demonstration Account funding is sought but was not able to find or secure from
other sources funding that is necessary for project component completion within
two years and states that this representation is based on the following reasons and
supporting facts:
List reasons and supporting facts here:
1) The proposed project fulfills two primary goals of the Richfield HRA in that it
would provide both: 1) affordable housing, and; 2) market-rate replacement
housing;
2) A financing gap for the project has been identified that, unless additional funds
are identified, would render the project infeasible;
3) The Richfield HRA and City of Richfield have agreed to provide Tax Increment
Financing (TIF) -but the amount of TIF available may be insufficient to
eliminate the financing gap.
4. Authorizes its Community Development Director to submit on behalf of the Richfield
HRA an application for Metropolitan Council Livable Communities Demonstration
Account grant funds for the project component(s) identified in the application, and to
execute such agreements as may be necessary to implement the project on behalf
of the City.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of July, 2010.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
AGENDA ITEM # ~+
REPORT # 2S
J STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 19, 2010
REPORT PREPARED BY:
REPORT PRESENTER:
ACTING DEPARTMENT DIRECTOR
REVIEW:
KAREN BARYON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
KAREN BARYON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE _
TURF
REVIEWED BY EXECUTNE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of approval of sale of garage at 1407 East 66th Street to Offing House Movers,.
I. RECOMMENDED ACTION:
By Motion: Authorize sale of garage at 1407 East 66th Street to Otting
House Movers.
II. BACKGROUND
In March the Richfield Housing and Redevelopment Authority (HRA) purchased the
property located at 1407 East 66th Street. The property was a foreclosure with
extensive freeze damage, consisting of an uninhabitable single-family house and a
single-car garage.
In May staff was approached by a party interested in purchasing and moving the
garage on this property utilizing Offing House Movers (Otting). Staff contacted
three house moving companies, including Offing, requesting bids to purchase and
move the garage. Otting's bid came in at $50. Neither of the other two companies
submitted bids.
The sale and removal of the garage would benefit the HRA in several ways:
07192010 Sale of Garage at 1407E 66th Street
• The removal of the garage will reduce. the future demolition costs;
• The HRA will receive $50 in sale proceeds;
• The removal of the garage will reduce vandalism opportunities on the
property; and
• The removal of the garage will reduce future maintenance costs for the
property.
Based on this information, staff is recommending the HRA approve the sale of the
garage to Otting for $50.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is prudent to reduce and recoup costs as practicable.
B. CRITICAL TIMING ISSUES
• Otting desires to move the building as soon as possible.
C. FINANCIAL
• The HRA will receive $50 in sale proceeds.
D. LEGAL
• Otting will be required to sign aRight-of-Entry Agreement with the
HRA.
IV. ALTERNATNE RECOMMENDATION~S~
• Do not approve the sale.
V. ATTACHMENTS
• Photos of property and garage
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
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07192010 Sale of Garage at 1407E 66th Street
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