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04-20-1981CITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY April 20, 1981 The Housing and Redevelopment Authority of the City of Richfield met in regular session in the council chambers of the city hall on Monday, April 20, 1981, at 7:30 pm. The meeting was called to order by Chairman Harms at 7:35 p.m. Present; Collins, Freeman, Helmberger, Ludeman, Harms 1. Minutes Motion by Freeman, seconded 'by Collins that the minutes of the February 17, 1981 regular meeting be approved .as submitted. All ayes - Carried. 2. Opportunity for Members of the Audience to Address the HRA There were no members of the audience present who desired to address the HRA. 3. Authorization to Advertise for Buyers for the Vo-Tech House at 6500 Standish Avenue Executive Director Nollenberger gave a brief background report relative to the conditions relating to this project. The Executive Director discussed the various financial limitations imposed by the Federal Section 235 Housing Program and also gave a brief explanation of the shared equity concept that the city would like to utilize on this project for purposes of preventing speculation on the house and of also obtaining funding in subsequent years for other assisted housing projects. Commissioner Helmberger questioned the procedure to be utilized in the contacting of potential eligible buyers for the property. It was explained by Housing and Redevelopment Coordinator Palmborg that the city advertises i:n newspapers and that they also have a list of names on file. These people are contacted and made aware of the potential for purchase of a house under the 235 Housing Program. Commissioner Ludeman questioned how the capital gains procedure works on a shared equity project. Both the Executive Director and the City Attorney-gave explanation on this subject and it was stated that the buyer would not have to pay HRA Meeting Minutes -2- April 20, 1981 capital gains on that part of the equity appreciation that would go to the city. Motion by Helmberger, seconded by Freeman to authorize the city staff to advertise the property at 6500 Standish Avenue for sale in the amount of $52,800; and to authorize the city staff to solicit and review applications from those interested and qualified to purchase the property. All ayes - Carried. 4. Selection of a Contractor for the Construction of Two FHA 235 Homes The Executive Director gave a brief background description of the source of funding for this project and the proposed location of the two houses to be built. • Mr. Nollenberger explained that an amount of $37,210 from the Co~saaunity Development Block Grant Bonus Funds Program is proposed to be utilized for the purchase. of two properties from the State of Minnesota for the purpose of allowing the con- struction of two Section 235 Houses. The two properties are located at 6216 Pillsbury Avenue and 6225 Harriet Avenue. Commissioner Collins questioned where the financing for the project would emanate. • Executive Director Nollenberger indicated that the HUD Bonus Funds would be-used for the property purchase and that the cost of construction of the houses would come from the Section 235 mortgages. It was further explained that, in essence, the city will write-down the cost of the land to zero, thereby providing subsidy so as to allow the construction and subsequent sale of houses to eligible 235 participants. Commissioner Helmberger questioned whether Lida Construction Gompany was previously involved in the earlier CDBG Bonus Grant application procedure in Richfield. It was stated that they have not had any previous experience in Richfield, but that they are presently working in the City of Minneapolis and that the Minneapolis HRA staff has made some positive comments about their working relationship with Lida Construction Company. It was further stated that this company has built many homes .in r.he greater Anoka area. HRA Meeting Minutes -3- April 20, 1981 Commissioner Ludeman questioned about the level of insulation in these houses and a representative from Lida Construction Company indicated that the walls will have an insulation factor of R-15 and that .the ceiling will have an insulation factor of R-30 to R-40. A brief presentation was given with slides depicting the types of houses proposed to be built by Lida Construction Company. Motion by Collins, seconded by Freeman that the Richfield HRA approve Lida Construction Company as the general contractor for the Scattered Site Z35 Housing Program. All ayes - Carried. A member of the audience, Mr. Sid Sanford, 7000 Portland, questioned whether Lida Construction had. valid construction agreements with unions and the response was that they did not, but at the present time they are paying over union scale. Chairman Harms questioned whether this company ever had labor problems and Mr. Lida indicated that they did not. Commissioner Freeman questioned whether they would have problems if a representative of Building Trade Unions contacted the laborers on this project; and Mr. Lida once again indicated that this would not be a problem. Executive Director Nollenberger indicated that it was not necessary for the HRA to approve the just compensation for each parcel, but that he would like to have the HRA's authorization to acquire the two aforementioned properties from the State of Minnesota Department of Transportation. The HRA concurred with the Executive Director's request. 5. NAHRO Conference The Executive Director indicated that the NAHRO Conference will be held in Cincinnati on May 26 - May 29 and that he was asking whether any of the HRA HRA Meeting Minutes -4- April 20, 1981 members wished to attend this conference. Commissioner Freeman indicated an interest in attending the conference. Commissioner Ludeman indicated that he would prefer that the staff attend -the conference so that they could transmit information to the HRA. Chairman Harms indicated that he thought it would be desirable to have one HRA member attend the conference and one staff member attend, as determined at-the discretion of the Executive Director. No formal action was required on this and the other members of the HRA were in agreement with this recommendation. 6. Executive Director's Report - Executive Director Nollenberger gave brief reports on the progress of the Lyndale Garden Center project and the Lyndale Hardware project. He indicated that both projects were well underway and that on the Garden Center project, the negotiations. with Mr. Charles Adams were also underway. Mr. Nollenberger also indicated that the Richfield State Agency has prepared a set of three schematics depicting three different levels of development on their site and that .they are currently awaiting a market analysis from their economic consultants and that they receive this, they will be able to determine the intensity of developments to occur on the Richfield State Agency property. Mr. Nollenberger also stated that the Lake Shore Drive Cooperative has essentially abandoned the cooperative project at this goint and at the present time, they .are pursuing a condominium option. The Executive Director also indicated that the city is talking to more than one developer in an attempt to promote some sort of development on this site. The Executive Director reported that, at the present time United National Corporation, owners of the HUB Shopping Center, are looking at a scaled down develop- ment along the south side of their existing building. He indicated that they are still contemplating having an enclosed mall and are also .considering the possibility HRA Meeting Minutes 'S' April 20, 1981 of having a free-standing restaurant in the south part of the parking lot, east of the Minnesota Federal Building and north of 66th Street. Executive Director Nollenberger indicated that the bids have been received on City Project 7052 (Lyndale Avenue Improvements from 64th Street to Lake Shore Drive) and that bids are due on City Project 7053 (66th Street from Grand Avenue to 35Tnt) next week. It was also indicated that the city is hopeful of construction of both projects this year but that, at the present time the county is looking at the possibility of a fund cutback and that CP 7053 might be affected by this cutback. Commissioner Freeman questioned whether the members of the HRA should attempt to contact county board members in fostering the construction of CP 7053. Mr. Nollenberger indicated that he would welcome any help that the HRA members could give in prompting this project. Commissioner Helmberger questioned whether the sale of houses at the Goach Homes project was slowing down. Chairman Harms indicated that, at the present time there are only ten units remaining to be sold and that the project is ahead of the schedule they established earlier. 7. Claims and Payrolls Motion by Helmberger, seconded by Freeman that the following claims and payrolls be approved: SUMMIT STATE BANK Checks. 3807/5616 Checks 3767/5690 (4/13/81) Checks 3741/5599 (3/16/81) $ 19,778.50 510,301.88 409,255.96 All ayes - Carried. HRA Meeting Minutes -6- April 20, 1981 8. Adjournment Motion by Helmberger, seconded by Ludeman that the meeting adjourn. All ayes - Carried. Time: 8:20 p.m. Date Approved: May 18, 1981 Michael Freeman Secretary homas E. Harms Chairman 1