07-20-1981LJ
' CONCURRENT MEETING
HOUSING AND REDEVELOPMENT AUTHORITY
ANIh CITY COUNCIL OF RICHFIELD, MINNESOTA
July 20, 1981
The Housing and Redevelopment Authority and the City Council of the City of
Richfield met in concurrent session on July 20, 1981 in the council chambers of
the city hall on Monday, July 20, 1981.
The meeting was called to order by Mayor Priebe and Chairman Harms at 7:40 p.m.
Present: Council Members Bunce, Collins, Hassenstab, Priebe
Absent: Ludeman
HRA Members Collins, Freeman, Helmberger, Harms
Absent: Ludeman
City Manager Nollenberger indicated that Eouncil Member Ludeman had requested
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an excused absence, as he is out of town on vacation.
1. Minutes
Motion by Bunce, seconded by Collins to approve the June 1, 1981 meeting
minutes for the city council.
All ayes - Carried. Absent - Ludeman.
Motion by Helmberger, seconded by Freeman to approve the June 1, 1981 meeting
minutes for the HRA.
All ayes - Carried. Absent - Ludeman.
2. Public Hearing Concerning Financing Under 'the Minnesota Industrial Revenue
Bond Act - Richfield State Agency
City Manager Nollenberger introduced Mr. William Kirchner, of Richfield Bank
and Trust. Mr. Kirchner briefly described the development proposal of Richfield
State Agency (RSA) for the site at the southeast portion of the 66th Street/Lyndale
Avenue intersection. He introduced Mr. David Bennett, architect for the project,
who described and presented graphics for the project.
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HRA/Council Meeting Minutes -2- July 20 , 1981
Lawrence Wozniczka, 6744 Wentworth, asked regarding the future status of the
Kentucky Fried Chicken business now located on the project site. Mr, Nollenberger
stated that the acquisition of that business by either the HRA or RSA has not been
determined.
~Mr. Rolf Hagen, attorney representing Bjorn Hagen, asked questions regarding
acquisition of Bjorn Hagen's property as part of the development.
Ms, Pat Rickert asked what the Richfield State Bank planned to do with the
residential property they own at 6710 Garfield, Mr, Carl McBride, of the RSA,
indicated that this plan contemplates no change in the use of that property by
the RSA.
The City Manager indicated that the project would add 40 jobs at an annual
payroll of $600,000,
Motion by Bunce, seconded by Collins to-close the hearing,
All ayes - Carried. Absent - Ludeman.
Motion by Collins, seconded by Hassenstab that the following resolution b.e
adopted; that it be spread in the resolution book and that it be made a part of
these minutes:
RESOLUTION N0. 6469
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT: REFERRING THE PROPOSAL TO
THE COMMISSIONER OF SECURITIES FOR APPROVAL;
AND AUTHORIZING EXECUTION OF A MEMORANDUM OF
AGREEMENT AND PREPARATION OF NECESSARY DOCUMENTS
Poll of votes: Ayes - Bunce, Collins, Hassenstab, Priebe, Nays - None. Absent -
Ludeman, Carried, This resolution appears as Resolution No. 6469 in Resolution
Book No. 46.
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Motion by Collins, seconded by _Hassenstab to refer this proposal to the Planning
Commission for their review and recommendation.
All ayes - Carried, Absent - Ludeman.
A~iA/Council Meeting Minutes -3- July 20,.1981
3. Extension of Loan to HRA, L/H/N Redevelopment Pro'ect
City Manager Nollenberger recommended extension of the loan agreement between
the City of Richfield and the HRA for purchase of 6600 Graham Avenue. The source
of funding for this acquisition was a loan from the PIIt fund.
Motion by Hassenstab, seconded by Bunce to authorize extension of the $50,000 loan
for 6600 Graham at 9% interest rate for one year.
All ayes - Carried. Absent - Ludeman.
Motion by Freeman, seconded by Collins to approve extension of this loan
agreement for the HRA.
All ayes - Carried. Absent - Ludeman.
Motion by Hassenstab, seconded by Bunce that the following resolution be adopted;
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that it be spread in the resolution book and that it be made a part of these minutes:
RESOLUTION N0. 6470
RESOLUTION AUTHORIZING THE EXTENSION OF AN
AGREEMENT TO LOAN MONEY TO THE RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY AND
PROVIDING FOR THE PERFORMANCE THEREOF BY
ADVANCEMENT FROM THE PERMANENT IMPROVEMENT
REVOLVING FUND
Poll of votes: Ayes - Bunce, Collins, Hassenstab, Priebe. Nays - None. Absent -
Ludeman. Carried. This resolution appears as Resolution No. 6470 in Resolution
Book No. 46.
4. Adjournment - City Council
Motion by Bunce, seconded by Hassenstab that the city council meeting adjourn.
All ayes - Carried. Absent - Ludeman. Time: 9
Date Approved; _ July 27, 1981 '
yce L. Wilde Acting City Clerk
Karl Nollenberger City Manager
HRA Meeting Minutes -4- July 20, 1981
The HRA took a recess and reconvened at 9:25 p.m,
5. _Referral of Possible Purchase of 6700 L dale Avenue to the Planning Commission
Executive Director Nollenberger described a potential HRA property acqusition
at 6700 Lyndale Avenue. He indicated that this property was now available for sale,
and that it had been designated in the development plan for rehabilitation and
renovation. He stated that, since the property was available, it might be appropriate
for the staff to develop a specific strategy for this site, He also recommended that
the HRA refer this potential acquisition to the Planning Commission for review and
finding regarding compliance of such an acquisition with the comprehensive plan,
Mr, Jerry Hanson, realtor for the property, described the income that this
property has generated and some of the market considerations which may affect its
salability,
Motion by Freeman, seconded by Helmberger to refer this question to the
Planning Commission for determination of compliance with the comprehensive plan
and direct the staff to formulate a development strategy for this site.
Poll of votes: Ayes - Freeman, Helmberger, Harms. Nays - Collins. Absent - Ludeman.
Carried.
6. Request for Authorization to Enter into a Construction Agreement
Executive Director Nollenberger recommended that the HRA authorize him to execute
a construction agreement with Lida Construction Company for a Scatted Site Section 235
Housing Program for erection of houses at 6216 Pillsbury and 6225 Harriet Avenues.
Motion by Collis, seconded by Helmberger to authorize execution of a construction
agreement with the understanding that the Lidas have the sense of the HRA that union
labor be used if possible.
All ayes Carried, Absent - Ludeman.
Motion by Collins, seconded by Helmberger 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 Meeting Minutes -5- July 20, 1981
RESOLUTION N0. 171
RESOLUTION AUTHORIZING EXECUTION
OF A CONSTRUCTION AGREEMENT
AND THE INITIATION OF RELATED IMPROVEMENTS
Poll of votes: Ayes - Collins, Freeman, Helmberger, Harms. Nays - None. Absent -
Ludeman. Carried. This resolution appears as Resolution No. 171 in Resolution
Book No. 2.
7. Extension of Loan to HRA, L/H/N Redevelopment,Project
The HRA Commissioners recommended approval of the extension of a loan agreement
between the HRA and the City of Richfield established three years ago for the
purchase of 6600 Graham Avenue.
Motion by Freeman, 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:
RESOLUTION N0. 170
RESOLUTION AUTHORIZING THE
EXTENSION OF AN AGREEMENT TO
BORROW MONEY FROM THE
PERMANENT IMPROVEMENT REVOLVING FUND
Po11 of votes: Ayes - Collins, Freeman, Helmberger, Harms. Nays - None. Absent -
Ludeman. Carried. This resolution appears as Resolution No. 170 in Resolution
Book No. 2.
8. Discussion of NAHRO National Convention, October 25-2$, 1981
The HRA discussed upcoming. NAHRO workshops and conferences.
Motion by Freeman, seconded by Harms to authorize up to two commissioners to
attend each of the programs coming up.
All ayes - Carried. Absent - Ludeman.
9. Executive Director Report - Not on Agenda
Executive Director Nollenberger stated that the Lake Shore Drive condominium
project is well under ~,~y and that the Ebenezer Society is now affiliated with
that project.
HitA Meeting Minutes -6- July 20, 198.1
Mr. Nollenberger stated that the HRA is now the owner of the Clark Oil
property.
Mr. Nollenberger stated' that the Wood Lake Tenants Association had retained
an attorney, but that he felt that the HRA had followed all appropriate legal
actions in dealing with these persons.
10. Claims and Payrolls
Motion by Collins, seconded by Freeman to approve the following claims and
payrolls:
SUNIlKIT STATE BANK
Checks 3880/5636 $654,021.91
All ayes - Carried. Absent - Ludeman. -
11. Adjournment
Motion by Freeman, seconded by Helmberger that the meeting adjourn,
All ayes - Carried. Time: 10:23 p.m.
Date Approved: August 17, 1981
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Michael Freeman Secretary
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Thomas E. Harms Chairman