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05-09-1977HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD, MINNESOTA 'Regular Meeting of May 9, 1977 The Housing and .Redevelopment Authority of the City of Richfield-met in regular session in the Council .Chambers o:f the City Ha11 on May 9, 1977 at -8x00 PM. The meeting was called to order by Chairman Law_. Present: Anderson, Jacobsen, 2,udeman, Luettinger_, Law 1. Minutes Motion by Jacobsen, seconded by Anderson that the minutes of the regular meeting of April 25; 1977 be approved as submitted.. A11 ayes - Carried, 2. Correction to Minutes of Decemb-er l3, 1976 The executive .director advised :~th;e commission that an. error had.been made an the minutes of the Decembex 13, x:976 meeting. Thas,e m3:ttiates °si~owed ac'tan wlnrere .a motion had been made, but a res:o7u.`t~:on was re~uixed.y 'The +execu:,t~t~e ~d~txee~t:orr x'c=•~- quested the commission to take ~:ccrrrect3.~e :act3:on., Motion by Jacnhs;en., secomd~ed ~ Azzders.on to amenx~. the mi~u.~te~s ~f the ~1?ecetnhear ~, 1976 meeting as follows: Motion by :Jacobsen, s.ecanded by Anderson that the -following resolution be adopted; that it be spread in. the resolutiton book .and that it `be made a part of these minutes: RES02;UTION N0. 31 RES,OZUTION E'STA$I,ISHING FAIR MARKET VALUE AND PROVIDING-FOR THE COMMENCEMENT .OF NEGOTTATTflNS FOR THE PURCHASE ©F REAL PROPERTY (7238 Wentworth) Po11 of votes: Ayes - Anderson, Jacobsen, Ludeman, Luettinger, Law. Naves - None.. Carried. This resolution appears as Resolution No. 31 in Resolution Book No. 1. 3. Public Hearing on Department Store Parcel for L/H/N Project~Area Mr. Burggraaff, the executive director, introduced. Mr. Arthur Hyman, President HRA Meeting Minutes -2- May 9, 1977 of Financial Property Developmers, Inc., Atlanta, Georgia, developers for K-Mart, and Mr. Gene Monroe, architect. Mr. Hyman explained the background of his firm and the relationship with K-Mart, subsidiary of S. S. Kresege Company. Mr. Monroe. reviewed the site plan for the proposed K-Mart building. Several residents were present at the hearing and asked questions. Dean Johnson, 6409 Cedar Avenue, asked about heating the building in light of the current energy crisis. The developer responded that the building would be con- strutted for maximum economy and efficiency, and the heating system would be electric. Warren Nilsson, 6816 Garfield, questioned the docking arrangements and asked for further information regarding the sale of land at a price below the acquisition cost. The executive director explained the theory of tax increment bonds and the financing schedule for the acquisition and development. Lawrence Wozniczka, 6744 Wentworth, questioned how the additional traffic on 66th Street would be handled. Mr. Peter Jarvis, of BRW, responded to this question. Ralph Bruins, 7210 Dupont, asked how many employees this business would require. The developer estimated that the K-Mart will employ around 250 permanent and 250 part time employees. Gertrude Ulrich, 7601 Aldrich, spoke about the design preserving the civic space area. Clayton LeFevere, city attorney, reviewed the terms of the development agreement. Lawrence Wozniczka asked about the present value of the land and development, and what the proposed future value will be. The executive director explained the acquisition values and the cash flow projections. Robert Lein, 7011 15th Avenue, spoke in favor of the development. Richard Krier, planning director, reported on "safety" features included in the city's tax increment development policy, HRA Meeting Minutes -3- -May ~~ ~197~ Mayor Law read excerpts from an article in NEW5WEER regarding th.e R-Mart operation, Motion by Jacobsen., seconded by Anderson to-close the 'hearing:. A11 ayes - Carried. Motion by Anderson, seconded .by Jacobsen that the `fdllowin~g resolution be adopted; that it be spread in the resolution 'book .and 'that i't -be -made a p-art -of these minutes: RESOLUT-ION N0. 33 A RESOLUTION RELATING TO THE K-MART PROJECT WITHIN THE LHN REDEVELOPMENT PROJECT-AREA Poll of votes: Ayes - Anderson, Jacobsen, Ludeman, Lueftinger, Law.. Hayes - None, Carried. 'This resolution appears as Resolution No. 33 n°Resolution Book No. 1. ~+. Resolution Concerning_Issuance of Tax Increment .Bonds The executive director explained that,, in accordance ~w~th :the r~ed~evelopment contract for the department store parcel in. the L/HEN ;proj`ec't., 3t '~aou7:e1 `be necessary to issue tax increment bonds.. Tt 3.s necessary -for :the ~a3ty, ratihe~ tsar. -the HRA, to issue the bonds in order to make-them marketable and ~to ob~tai~n 'the ldwes~t:possble rate of interest. Mr. Burggraaff read a list of estimated costs conta~in~eci. in 'the resolution determining the need for financing. Lawrence Wozniczka recorded his opposition to the issuance Ai: tax inc~.ement bonds, as provided for in the resolution. Motion by Jacobsen, seconded by .Anderson ghat the following r~esoluton be adopted; that it be spread in the resolution book_.and .that it be made a part of these minutes: RESOLUTION Np. 32 A RESOLUTION DETERMINING NEED FOR FINANCING: REQUESTING THE CITY COUNCIL TO AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION REDEVELOPMENT BONDS TO FINANCE PROJECTS IN THE LYNDALE-HUB- NICOLLET REDEVELOPMENT AREA . HRA Meeting Minutes -4- May 9, 1977 Poll of votes: Ayes - Anderson, Jacobsen, Ludeman, Luettinger, Law. Hayes - None. Carried. This resolution appears as Resolution No. 32 in Resolution Book No. 1. 5. Amended Financial Plan for L dale/Hub/Nicollet Tax Increment Protect The executive director informed the HRA that several bills introduced in the Minnesota State Legislature could aversely affect the creation and operation of tax increment projects. In order to protect the investment which has been made in the L/H/N project, the HRA is in a position where it is advisable to amend the current financial plan to take into consideration possible changes or contingencies which could occur within the next four or five years. The executive director recommended adoption of a resolution which amends the financial plan for the project. Motion by Ludeman, seconded_by~Anderson that the following resolution be adopted; that it be spread°in the resolution book and that it be made a part of these minutes: RESOLUTION N0. 34 Po11 of votes: RESOLUTION CHANGING LYNDALE/HUB/NICOLLET COMMERCIAL AREA STUDY Ayes - Anderson, Jacobsen, Ludeman, Luettinger, Law. Hayes - None. Carried. This resolution appears as Resolution No. 34 in Resolution Book No. 1. 6. Claims and Payrolls Motion by Jacobsen, seconded by Ludeman that the following claims and payrolls be approved; SUMMIT STATE BANK Checks 1226/1233 All ayes - Carried. 7. Adjournment Motion by Anderson, seconded by Luettinger, that the meet A11 ayes - Carried. Time: 10:50 PM. Date Approved: ~ ~j Ivan Ludeman ecretary Amount $282.00 adjourn.