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08-16-1982CITY OF RICHFIELD HOUSING AND RIDEVELOFMENT AUTHORITY REGULAR MEETING August 16, 1982 The Housing and Redevelopment Authority of the City of Richfield met in regular session in the council chambers of the city hall on Monday, August 16, 1982 at 7;30 p.m. The meeting was called to order by Chairman Harms at 7:35 p.m. Present: Commissioners Freeman, Hassenstab, Helmberger, Ludeman and Chairman Harms 1. Approval of Minutes of Meeting of May I7 1982 Motion by Hassenstab, seconded by Ludeman to approve the minutes of the May 17, 1982 regular meeting. All ayes - Carried. 2. Approval of Minutes of Meeting of July 19, 1982 Motion by Hassenstab, seconded by Ludeman to approve the minutes of the July 19, 1982 regular meeting. All ayes - Carried. 3. Public Hearing on Dispostion of Property, 6633 Lake Shore Drive Executive Director Nollenberger presented the proposal for the disposition of property at 6633 Lake Shore Drive, as described in HRA Letter No. 32. He presented the following items for the consideration of the Housing and Redevelopment Authority; 1. The Knutson Construction Company (the developer) would purchase the property for $8,200, as outlined in the developer's agreement dated October 12, 1981; 2. The developer would also donate $4,000 to the HRA to be used toward the HRA's purchase of the property from the present owners, the Shevchecks, contingent-upon the HRA subsequently selling the property to the developer; 3. The HRA would remove the structures from the property prior tip conveyance to the developer. The developer would be responsible for the removal of the foundations and for backfilling and grading; HRA Meeting Minutes -2- August 16, 1982 4. Tlae parcel would have to be sodded and maintained as open space by the developer. No construction of buildings or structures on the property would be permitted; 5. The Planning Commission found the proposed sale of this property to the Knutson Construction Company for use as open space for the Lake Shore Drive Condominium Project, was consistent with the Comprehensive Plan as stated in Resolution No. 44, adopted July 27, 1982. Mr. Lawrence Wozniczka, 6744 Wentworth, addressed the HRA and asked several questions regarding this purchase. He later specifically focused on the potential financial impact of this purchase on himself as a property tax payer in the City of Richfield. Mr. Don Lynch, 6617 Lake Shore Drive, stated that he thought bids should be taken on this property because it was being sold at a "below market rate". Mr. Lynch also made comments relative to the conduct of the Knutson Company as a neighbor. Mr. Nollenberger indicated to the HRA that the disposition cost for the property was determined by an appraiser and that the cost was set at $8,200 because of the severe limitations placed on the reuse of the property. Motion by Hassenstab, seconded by Ludeman that the hearing be closed. All ayes - Carried. Motion by Freeman, 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. 205 RESOLUTION RELATING TO THE SALE OF REAL PROPERTY FOR REDEVELOPMENT PURPOSES Poll of votes: Ayes - Freeman, Hassenstab, Helmberger, Ludeman, Harms. Nays - None. Carried. This resolution appears as Resolution No. 205 in Resolution Book No. 2. 4. Authorization to Extend the CDBG Year VII Procedural Guidelines for Rehabilitation Grants Executive Director Nollenberger gave a background report on the activities which occurred relative to this project. He also clarified a point in the report relating to the seven year repayment schedule for the grant program and indicated HRA Meeting Minutes -3- August 16, 1982 that this schedule wss actually a forgiveness schedule which was related to the payback of the grant only if the property were sold or transferred prior to the end of the seven year period. Chairman Harms questioned whether persons receiving grants would be required to pay off the loan early if they were to receive a dramatic increase in their economic status. Executive Director Nollenberger indicated that he would look into this question. Motion by Ludeman, seconded by Hassenstab to close the public hearing. All ayes - Carried. Mr. Freeman questioned how long these temporary guidelines would be in effect and the Executive Director indicated that they would be in effect only until permanent guidelines could be established and adopted by the HRA within the next two to three months. HRA members also questioned what impact the death of one spouse would have on the remaining spouse relative to the need to pay off the grant early. It was the intent of the HRA that the death of one spouse would not be the same as conveyance of the property and that this should not trigger repayment clause. City Attorney Clayton LeFevere indicated that problems might arise if the property were to be immediately resold after the receipt of a grant or loan as a contract for deed. Chairman Harms indicated that if a sale or conveyance of property were made, and that if this would result in the creation of a unique hardship, that the HRA could evaluate the hardship and perhaps modify its guidelines. He also indicated that the Federal Home Loan Board had a methodology that'specifically addressed this type of problem. Executive Director Nollenberger indicated that the staff would evaluate this question and would present various alternatives relating to the conveyance of the property at the next HRA meeting. HRA Meeting Minutes ~ -4- August 16, 1982 Motion by Ludeman, seconded by Hassenstab 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. 206 AUTHORIZATION TO FRIEND THE CDBG YEAR VII PROCEDURAL GUIDELINES FOR REHABILITATION GRANTS UNTIL A CDBG YEAR. VIII PROGRAM IS AUTHORIZED Poll of votes: Ayes - Freeman, Hassenstab, Helmbergex, Ludeman, Harms. Nays - None. Carried. This resolution appears as Resolution No. 206 in Resolution Book No. 2. 5. Acquisition of Property to Initiate Vo-Tech Rehabilitation Protect at 6822 Queen Avenue Executive Director Nollenberger gave a background report and recommendation on this pro3ect. He also commented that in the past this program has had a beneficial impact on the community as a whole, as well as on moderate income residents within the community and on students at the South Hennepin Technical Center. Motion by Freeman, 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. 207 RESOLUTION AUTHORIZING THE ACQUISITION OF REAL PROPERTY AT 6822 QUEEN AVENUE SOUTH, A HOtTSE STRUCTURE LOCATED AT 6$40 GRAND AVENUE SOUTH AND ERECUTION OF A CONTRACT WITH VOCATIONAL-TECHNICAL CENTER Poll of votes: Ayes - Freeman, Hassenstab, Helmberger, Ludeman, Harms. Nays - None. Carried. This resolution appears as Resolution No. 207 in. Resolution Book No. 2. 6. Claims and Payrolls Motion by Ludeman, seconded by Freeman that the following claims and payrolls be approved: HRA Meeting Minutes -5- SIJ1~Il~iIT STATE BANK Checks 4197/4474 All ayes - Carried. 7. Executive Director's Report (Not on Agenda) August 16, 1982 $1,187,970.88 Executive Director Nollenberger gave an update report on the future redevelopment activities scheduled for the "Godfather Block" (the block bounded by 66th Street, Graham Avenue, 65th Street and Lyndale Avenue). Mr. Nollenberger indicated that Mr. Roger Derrick, the developer for this block, presently perceives no problem with either commercial or office construction, but that the residential redevelop- ment proposal is under additional scrutiny because of problems relating to development of residential properties at this time. It was also indicated that there will be a meeting with Mr. Derrick in the near future to determine present status of the project in his future plans. The Executive Director also gave an update on the Richfield State Agency project. He indicated that the Richfield State Agency is in the process of negotiating bond s-ales because interest rates are now more favorable to their project. 8. Discussion of 1983 HRA Budget (Not on Agenda) Executive Director Nollenberger gave a detailed presentation on the 1983 HRA budget. He indicated that it was the intent to present the budget one month earlier to the HRA so that members would have an opportunity to consider budget proposals at some length prior to its official adoption, if they so desired. He also indicated that October 8th is the deadline for the certification of the budget. Executive Director Nollenberger indicated that the 1983 HRA budget of $5,682,000 can be compared with the 1982 budget figure of $4,245,000. He then discussed the major projects for 1983, including conversion of the Lincoln Hills School to a HRA Meeting Minutes -6- August-: 16, 1982 housing for the elderly project, the future activities for additional housing for low and moderate income people within the City of Richfield and the activities to be carried out by Richfield State Agency and the Godfather Block. Comments were also made relevant to the impact of future bond sales on the HitA budget and on the tax increment process as it relates to both the HRA and the Richfield city council. Chairman Hartas stated that he believed that action on the budget would be appropriate at the September meeting. Motion by Ludeman, seconded by Helmberger to continue the public hearing on the budget to the regular September, 1982 meeting. All ayes - Carried. 9. Adjournment Motion by Ludeman, seconded by Freeman that the meeting adjourn. All ayes - Carried. Time: 10:90 p.m. Date Approved: September 20, 1982 0 Michael 0. Freeman, Secretary omas Harms r Chairman