11-16-1981
CITY OF RICHFIELD .-
HOUSING AND REDEVELOPMENT AUTHORITY
Regular Meeting
November 16, 1981
The Housing and Redevelopment Authority of the City of Richfield met in regular
session on November 16, 1981 in the council chambers of the city hall at 7:30 p.m.
The meeting was called to order by Chairman Thomas E. Harms.
Present: Commissioners Collins, Freeman, Helmberger, Ludeman, Harms
1. Minutes
Motion by Helmberger, seconded by Collins to approve the minutes of the
October 19, 1981 regular meeting and the November 5, 1981 special meeting.
All ayes - Carried.
2. Consideration of Developer's Agreement for Richfield State Agency and
Resolutions Relating to Acquisition of Property Related Thereto
Executive Director Nollenberger outlined provisions of the developer's
agreement that has been negotiated between the staff and the Richfield .State Agency.
Mark Swensen, of the architectural Firm BRW, presented a summary of the proposed
Richfield State Agency project.
Hyman Edelman, attorney representing Bjorn Hagen, asked questions regarding
the relationship between Richfield State Agency and Richfield State Bank. William
Kirchner responded. Mr. Edelman requested that the record show his objections to
the proposed acquisition of his client`s property.
Don Hassenstab inquired about the intended use of the Richfield State Agency
owned property immediately south of the bank employees' parking lot at 6709
Lyndale Avenue. Mr. Carl McBride stated that it is the intent of the Richfield
State Agency to continue to rent that property for residential purposes. David
Bennett, also of BRW Architects, also answered questions.
The executive director recommended that the HRA adopt resolutions approving
HRA Meeting Minutes -2- November 16, 1981
modification No. 3 in the L/H/N plan, authorizing acquisition of property by
eminent domain proceedings and establishing just compensation.
Mr. Edelman indicated his client's objection to the proposed developer's
agreement and to taking his client's property, on the basis that .such taking is
for private, rather than public purposes and that such taking requires an amendment
to the project plan. Executive Director Nollenberger observed that the plan has
always contemplated redevelopment of the subject site by Richfield State Agency.
Mr. Edelman requested copies of these minutes, the final developer's
agreement and the resolution relating to the modification.
Motion by Collins, seconded by Ludeman 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. 182
RESOLUTION OF THE HOUSING AND
REDEVELOPMENT AUTHORITY OF
RICHFIELD, MINNESOTA
APPROVING MODIFICATION N0. 3 IN
THE LYNDALE/HUB/NICOLLET COMMERCIAL IMPROVEMENT PROGRAM
Po11 of votes: Ayes - Collins, Freeman, Helmberger, Ludeman, Harms. Nays - None.
Carried. This resolution appears as Resolution No. 182 in Resolution Book No. 2.
Motion by Ludeman, seconded by Helmberger to approve the proposed developer
agreement as outlined in HRA Letter #42 and authorize the executive director and
chairman to sign a final agreement containing those major points.
All ayes - Carried.
Motion by Ludeman, 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 -3- - November l6, 1981
RESOLUTION N0. 183
RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN
REAL PROPERTY BY Er1INENT DOMAIN PROCEEDINGS
Poll of votes: Ayes - Collins, Freeman, Helmberger, Ludeman, Harms. Nays - None.
Carried. This resolution appears as Resolution No. 183 in Resolution Book No. 2.
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. 184
RESOLUTION ESTABLISHING JUST COMPENSATION
Poll of votes: Ayes - Collins, Freeman, Helmberger, Ludeman, Harms. Nays - None.
Carried. This resolution appears as Resolution No. 184 in Resolution Book No. 2.
3. Bond Issue for S.W. Quadrant of Lyndale Avenue/66th Street and Lyndale Garden
Center
Administrative Services Director Joyce Wilde reviewed the procedure necessary
to initiate the process to sell tax increment bonds to finance the HRA's cost
incurred for the Lake Shore Drive condominium project, the Lyndale Garden Center
redevelopment and other miscellaneous purposes. The proposed bond issue to be
issued by the city in the amount of $2,450,000 is summarized as follows:
Project Costs $1,876,000
Issuance Costs 26,000
Dealer Discount 48,000
Capitalized Interest 500,000
Total X2,450,000
Ms. Wilde recommended that the HRA adopt the resolution requesting the city
council to issue tax increment bonds in an amount of $2,450,000 and authorize
the executive director and chairman to execute the tax increment agreement with
the city.
Commissioner Ludeman asked for a breakdown of the property management expense
and the administration costs. He was advised that the staff would provide the HRA
HRA Meeting Minutes -4- November 16, 1981
a detailed report on the project cost.
Motion by Freeman, seconded by Ludeman that the following resolution be adapted
that it be spread in the resolution book and that it be made a part of these minutes:
RESOLUTION N0. 185
A RESOLUTION DETERMINING THE NEED FOR FINANCING
REQUIRING THE CITY COUNCIL OF THE CITY OF RICHFIELD TO
AUTHORIZE THE ISSUANCE OF GENERAL OBLIGATION DEVELOPMENT BONDS
TO FINANCE PUBLIC REDEVELOPMENT COSTS IN"THE
LYNDALE/HUB/NICOLLET REDEVELOPMENT AREA
Poll of votes: Ayes - Collins, Freeman, Helmberger, Ludeman, Harms. Nays - None.
Carried. This resolution appears as Resolution No. 185 in Resolution Book No. 2.
4. Approval of Sale of Residential Property Located at 6216 Pillsbury Avenue and
6225 Harriet Avenue
Executive Director Nollenberger presented recommendation to sell properties
at 6216 Pillsbury and 6225 Harriet, as described in HRA Letter No. 39. He said
that the properties are scheduled to be completed on November 30, 1981. He
recommended that the HRA adopt the appropriate resolution authorizing disposition
of these properties.
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. 186
RESOLUTION AUTHORIZING SALE OF PROPERTY AT
6216 PILLSBURY AVENUE SOUTH AND
6225 HARRIET AVENUE SOUTH
Poll of votes: Ayes - Collins, Freeman, Helmberger, Ludeman, Harms. Nays - None.
Carried. This resolution appears as Resolution No. 186 in Resolution Book No. 2.
5. Discussion of Purchase of Property on Godfather Block
Executive Director Nollenberger described the status of proposals for development
of the Godfather Block and the HRA expressed consensus with the concept of explorin
acquisition of Craswell Studio, 732 West 66th Street and Larry's Auto Body Supply
734 West 65th Street.
HRA Meeting Minutes -5- November 16, 1981
~ 6. Discussion of Policy Relating to Preference for Richfield Residents in
Housing Programs
Executive Director Nollenberger described policies ~nd constraints imposed on
`.,
federal funding which limit the HRA's ability to give preference to Richfield
residents in the varous housing programs of the HRA. The HRA indicated a desire
~,
to discuss the matter in the future as specific programs are discussed.
7. Claims and Payrolls
Motion by Ludeman, seconded by Collins that the following-claims and payrolls
be approved:
SUPM4IT STATE BANK
Checks 4024/5681
$290,142.47
All ayes - Carried.
7 . Ad j o urnmen t
Motion by Ludeman, seconded by Helmberger that the meeting adjourn.
All ayes - Carried. Time: -9:19 p.m.
Date Approved: December 21, 1981
vi
Michael 0. Freeman Secretary
~ ~/~
mas E. Harms Chairman