01-18-1982 Special
CITY OF RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY
January 18, 1982
Special Meeting With City Council
The Housing and Redevelopment Authority of the City of Richfield met in
concurrent session with the city council on January 18, 19 $'Z in the council chambers
of the city hall at 6:15 p.m.
The meeting was called to order by Chairman Harms at 6:50 p.m.
Present: Commissioners Freeman, Hassenstab, Helmberger, Ludeman, Harms
Present: Council Members Bunke, Hassenstab, Kirsch, Ludeman, Hamilton
1. Consideration of Resolution Authbrizin~ Bond Issue
Executive Director Karl Nollenberger described the purpose of the concurrent
LJ
meeting with the city council - to present an update on the sale of the $2.,45D,000
bond issue to finance the costs of the Lake Shore Drive Condominium and Lyndale
Garden Center project. Administrative Services Director Joyce Wilde described the
following alternatives for marketing of these bonds as outlined in HRA Letter No. 7:
1. Wait for change in the bond market and/or changes in state
law that would remove the 12 percent interest rate ceiling;
2. Make more optimistic assumptions regarding inflation, and
the corresponding growth in tax increment collections that
will support the indebtedness;
3. Reassess the original HRA policy that requires each component
of the redevelopment project to be self-supporting.
HRA members suggested authorizing the bond sale immediately, so -that the staff
would be in a position to seek a negotiated sale as soon as the interest rate ceiling
is raised. The staff requested the opportunity to consult with the city's financial
advisers before taking such action.
The HRA recessed at 7:20 p.m. and reconvened at 7:50 p.m. Commissioner Ludeman
left ttie meeting.
HRA Meeting Minutes -2- January 18, 1982
Regular Meeting
1. Approval of Minutes of Regular Meeting of December 2L, and Special Meeting
of December 28, 1981
Motion by Freeman, seconded by Helmberger to approve the minutes of the
December 21, and 28, 1981- meetings.
All ayes - Carried. Absent - Ludeman.
2. Oath of Office for HRA Commissioner Donald Hassenstab
HRA clerk Joyce Wilde administered ? the oath of office to Commissioner Donald
Hassenstab.
3, Annua.~` fleeting and Election of Officers
In accordance with the bylaws of the Housing and Redevelopment Authority of
Richfield, election officers for the year 1982 was held at the annual meeting.
The following nominations we"remade:
Motion by Freeman, seconded by Helmberger toelect Thomas Harms to serve in
the capacity of Chairman..
All ayes - Carried. Absent - Ludeman.
Motion by Harms, seconded by Freeman to elect Joan Helmberger to serve as
Vice Chairman.
AT1 ayes - Carried. Absent - Ludeman.-
Motion by Harms, seconded by Helmberger-to elect :lichael Freeman to-the office
of Secretary.
All ayes - Carried. Absent - Ludeman.
4. Opportunity for Citizens to Address ttie HRA
Lawrence Wozniczka, 6744 Wentworth, asked questions regarding the bond safe
discussed ear.lier..
S. Discussion of Small Business Loan Program
1
Executive Director tiollenberger described. the Small Business Administration
HRA Meeting Minutes -3- January 18, 198Z~
Loan Program, as detailed in HRA Letter No. 4. The HRA deferred this matter to
the February 16, 1982 meeting, for further discussion and encouraged the staff to
contact other cities and community businesses to get more detailed. information
regarding how the program may actually work and the level of interest. The HRA
indicated enthusiasm for the concept, while not being ready to endorse it fully.
6. Residency Preference Policy for the Vo-Tech Housing Rehabilitation Program
Executive Director Nollenberger described the need to establish a policy
regarding residential preference for selection of a qualified purchaser of the
Vo-Tech rehabilitated home at 6413 22nd Avenue.
The HRA took no action to establish a residential preference for this property,
but requested the staff to analyze the impact of the Metropolitan Council Housing
Policy 39 on the city's ability to receive federal grants, if a preference were
established.
7. Discussion of the Status of LJH/N Projects
Executive Director Nollenberger presented a status report regarding the following
projects:
United National/Hub Shopping Center - The space formerly occuped by Sibley is
tentatively leased, and they are revising their traffic/parking Iot plans.
Richfield State Agency - The developer's agreement has been signed and negot-
iations are underway for HRA acquisition of Bjorn Hagen and Kentuck} Fried Chicken
properties under terms of that agreement.
Trestman/Star auto - Have indicated some preliminary interest in join;lt improve-
ment of their properties.
L~•ndale Carden Center - The parking area is complete and rest of the projrct
is substantially completed.
Godfather Block - The city council will hold a hearing in February on request
by ttie developer to issue IDR bonds.
HRA Meeti~xg Minutes -4- - January 18, 1982
Lake Shore Drive Condominium Project - The sales office has reported.-that more
than 100 of the-units have been sold.
City Project 705 - It is just about completed and the remainder of-the finishing
touches will be completed this spring.
8. Claims and Payrolls
Motion by Freeman, seconded by Helmberger that the following claims and payrolls
be approved:
SUNINIIT STATE BANK
Checks 2912/18233 $1,175.51
All ayes - Carried. Absent. - Ludeman.
9. Adjournment
Motion by Helmberger, seconded by Freeman that the meeting adjourn..
All ayes - Carried. Absent - Ludeman. Time: 9:OA p.m.
Date Approved: February 16, 1982
c
Michael O. Freeman Secretary
omas E. Harms Chairman
ul
1