03-24-1980HOUSING AND REDEVELOPMENT AUTHORITY
OF RICHFIELD, MINNESOTA
Regular Meeting of March 24, 1980
The Housing and Redevelopment Authority of the City of Richfield met in
regular session in the council chambers of the city hall on March 24, 1980, at
7:12 p.m.
The meeting was called to order by Chairman Donald J. Priebe.
Present: Collins, Luettinger, Bunce, Ludeman, Priebe
1. Minutes
Motion by Luettinger, seconded by Ludeman to approve the minutes of the
March 10, 1980, meeting as submitted. .
All ayes - Carried.
2. Establishment of Just Compensation and Authorization to Purchase
6615 Lake Shore Drive
Karl Nollenberger, Executive Director, reviewed the background of the HRA's
discussions to purchase property located at 6615 Lake Shore Drive, which is
adjacent to the L/H/N project area. The owner of this property, Mr. and Mrs.
Joseph Valasquez, had requested the HRA to purchase their property on May 29,
1979.' The HRA may legally purchase this property only for public purposes, and
a legally acceptable purpose would be to provide housing for a large low-income
family under the Section 8 program.
The Executive Director, indicated that the Planning Commission had determined
:~.~.,.~ ~...:~~tha~.~he:~I~ro-posed-use_.~.fv~tk~;is-: pxop.~r.t3~..:..for...~lww~.bncom~ev.heu~ix~ge-;raa.,s--a.~i~cc3n£o:rma~c~::~,- _._ _-~__-
~.- .~ _- _ w,-fk t~ie__c~.~y-_~omspretren-s:i~ve -p~.an ..-FoL7.~wing ~=tie _Pl.anning Cammissl,o~i, approual,, _ - .-
- _
- - - - -.
- -- - release ~of CDBG ~Yea-r- IV-monies were- sought: - -In December; `1979 nsitificaton was :~ :-: --_ _
- _- -- received from -the Department--of Housing and-Urban :Development -Gha-t thee-funds--- -
-:.
would be released. The estimated acquisition and relocation payments for t~~s
$16,000 for relocation benefits. Funding would be provided from the CDBG Year
property are approximately $107,000, which consists of $91,000 for purchase and
HRA Meeting Minutes -2- March 24, 1980
IV Site Acquisition Fund of $100,000 and the balance needed would be transferred
from the New Home Program to the Site Acquisition Fund. Mr. Nollenberger recom-
mended that the HRA adopt the necessary resolution establishing just compensation
of $91,000 for this property and authorizing the staff to negotiate for the
purchase of this property, transferring funds from the New Home Program to the
Site Acquisition Fund.
Mr. Donald Lynch, 6617 Lakeshore Drive, indicated he did not wish to leave
his home as he felt he had made an investment in the community. He asked if a
.. senior citizen development will be built on the site.
Mayor Priebe stated he would "go on record" as saying a multiple, senior
citizen housing facility will be built in the future if it proves financially
feasible.
Frank Riley, 6915 Portland, asked what the $16,000 relocation fee consisted
of and asked for clarification on Section 8 housing program. He also commended
Mayor Priebe and Councilman Bunce for their forthrightness.
Bruce Palmberg, Housing and Redevelopment Specialist, explained the
break-down of the $16,000 relocation figure as follows:
1. $1,000 covers moving costs
2. $15,000 covers replacement housing cost
a. Buy another comparable type
be asked to sell their property to the city He urged the city council to look
HRA Meeting Minutes -3- March 24, 1980
at an alternative plan submitted by Mr. Lynch's group. Mayor Priebe indicated he
would like to review this plan soon.
Thurl M. Quigley, 6701 Harriet, asked where funding for this purchase would
be coming from and cautioned the HRA to spend dollars more wisely and look at
cheaper homes.
Commissioner Ludeman stated two bedroom homes may sell for $50,000 to
$70,000, but four and five bedroom homes do sell for over $100,000.
Motion by Ludeman, seconded by Bunce to close the hearing.
All ayes - Carried.
Motion by Luettinger, seconded by Collins that the following resolution be
adopted; that it be spread in the resolution book and that it be made apart of
these minutes:
HRA RESOLUTION N0. 136
RESOLUTION ESTABLISHIlVG JUST COMPENSATION,
AUfiHORIZING PURCHASE AND TRANSFER OF FUNDS
(6615 LAKE SHORE DRIVE)
Poll of votes: Ayes - Collins, Luettinger, Bunce, Ludeman, Priebe. Nays - None.
Carried. This resolution appears as Resolution No. 136 in Resolution Book No. 2.
3. Establishment of Just Compensation and Authorization to Purchase Property
in the L/H/N Area
Karl Nollenberger, Executive Director, advised the HRA that owners of the
following three properties located within the acquisition areas of the L/H/N
project have expressed an interest in selling to the HRA:
709 Graham.-- Jus-t camp ensation..$52;0000 ~==- =:~~ ~ -- -
_ ._ - 6617 Graham --•Just c-omYsens-a'tt6fr~$'~7;OOU-'~___~~__ --_ _ _ __ : .
Z38 W. __66th Street -..Juan comp:ens.at~..on .$$5.,U~D0.-- -
. _ ..
- . ~~ ,: Mr. Riley, 6.915 .Portland, asked horn""tYie-properties-would-be used.
Lawrence Wozniczka, 6744 Wentworth, stated he was in favor of relocation
being used for home owners, not for rental property.
HRA Meeting Minutes -4- March 24, 1980
Mr. Jon Pietig, owner of 6617 Graham, indicated he thought his home was
worth more than the just compensation figure given by the appraiser and he would
like to have his property zoned commercial instead of residential.
Motion by Ludeman, seconded by Bunce to close the hearing.
All ayes - Carried.
Motion by Ludeman, seconded by Collins that the following resolution be
adopted; that it be spread in the resolution book and that it be made a part
of these minutes:
HRA RESOLUTION N0. 137
RESOLUTION AUTHORIZING THE EXECUTION OF
A CONTRACT TO BORROW MONEY FROM THE CITY
OF RICHFIELD AND PROVIDING FOR THE PURCHASE
OF MEAL PROPERTY (738 WEST 66TH STREET)
Poll of votes: Ayes - Collins, Luettinger, Bunce, Ludeman, Priebe. Nays - None.
Carried. This resolution appears as Resolution No. 137 in Resolution Book No. 2.
Motion by Ludeman, seconded by Collins that the following resolution be
adopted; that it be spread in the resolution book and that it be made a part
of these minutes:
HRA RESOLUTION N0. 138
RESOLUTION AUTHORIZING THE EXECUTION OF
A CONTRACT TO BORROW MONEY FROM THE CITY
OF RICHFIELD AND PROVIDING FOR THE PURCHASE
OF REAL PROPERTY (709 GRAHAM)
Poll of votes: Ayes - Collins, Luettinger, Bunce, Ludeman, Priebe. Nays -
None. Carried. This resolution appears as Resoltuion No. 138 in Resolution Book
HRA Meeting Minutes -5- March 24, 1980
HRA RESOLUTION N0. 139
RESOLUTION ESTABLISHING JUST COMPENSATION AND
AUTHORIZING NEGOTIATIONS TO PURCHASE PROPERTY IN THE L/H/N
Poll of votes: Ayes - Collins, Luettinger, Bunce, Ludeman, Priebe. Nays - None.
Carried. This resolution appears as Resolution No. 139 in Resolution Book No. 2.
4. Claims and Payrolls
Motion by Collins, seconded by Luettinger that the following claims and
payrolls be approved:
SUMMIT STATE BANK
Checks 3188/3214 $23,569.15
All ayes - Carried.
Chairman Priebe announced that he is resigning from the HRA effective
March 31, 1980.
Commissioner Bunce announced he also is resigning from the HRA effective
March 31st.
Commissioner Collins announced she is resigning effective March 31st,
and that she had enjoyed her tenure.
Commissioner Luettinger suggested keeping the five council members on
the HRA and adding three citizen members.
City Attorney, Clayton LeFevere, said legislation limits the number of
commissioners eligible to serve on the HRA to five.
Gordon W. McKinnon, 7308 Upton, stated he was desirous of accountability
--of the HRA and he urged that. the membership be confined to. .elected officiaXs.,__...__ _.. _.
- _. - . _
- -- --- -
not citizens; also .he does not~_want the ;HRA to !'overpower" ahe.-couz~c~.h: _ - .~_
- ...
.. _ _ - _.. ---___ T_
Chairman Priebe_st_ated he will st~res~_._s-afeguards. to the new-memhers.- --- °--- ----
r
HRA Meeting Minutes -6- March 24, 1980
5 . Ad ~ ourxmient _-
Motion by.Ludeman, seconded by Collins that the meeting adjourn.
All ayes - Carried. Time: 8:35 p.m.
Date Approved: April 14, 1980
V. L. Luettin Secretary
Donald J. Prie Chairman