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04-18-1983HOT?SING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD, MINNESOTA Regular Meeting April 18, 1983 The Housing and Redevelopment Authority of the City of Richfield met in regular session in the council chambers in city hall on Monday, April 18, 1983, at 7:30 p.m. Chairman Tom Harms called the meeting to order at 7:37 p.m. Present: Hassenstab, Helmberger, Ludeman, Luettinger, Harms 1. Approval of Minutes of Regularly Scheduled Meeting of March 21, 1983 and ial Meetine o Commissioner Ludeman made two corrections to the March 21, 1983 minutes - Page 1, the name of Vice-Chairman should read Vern Luettinger, not Ivan Luettinger;_ Page 3, the minutes should indicate that Commissioner Ludeman left the meeting at 8:40 p.m., not 9:40 p.m. Chairman Harms stated a correction needed to be made on Page 3 of the special meeting of April 4, 1983 - Page 3, Para. 3, which relates to a motion by Hassenstab'and a second by Ludeman should be followed by a friendly amendment which was added to the original motion prior to the passage of the resolution by the commission. This friendly amendment is contained in its entirety as Para. 5 on Page 3 of these amendments. Motion by Ludeman, seconded by Luettinger to approve the minutes of the regular meeting of March 21, 1983 and the special meeting of April 4, 1983, as amended. All ayes - Carried. Z. Sale of 6601 Lyndale Avenue The Executive Director gave a report on the negotiations which are continuing for the purchase of this property from Mr. Bjorn Hagen and the subsequent sale to the Richfield State Agency. City Attorney LeFc~vere reported on a meeting he had HRA Meeting Minutes -2- April 18, 198 the previous Thursday with Mr. Hagen and his attorney on the property negotiations. Mr. Hyman Edelman, attorney for Mr. Hagen, indicated he wished to preserve his prior objections for the record. Motion by Luettinger, 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: RE50LUTION N0. 221 RESOLUTION RELATING TO THE SALE OF HRA PROPERTY IN THE L/H/N REDEVELOPMENT AREA - 6601 LYNDALE AVENUE Poll of votes: Ayes - Hassenstab, Helmberger, Ludeman, Luettinger, Harms. Nays - None. Carried. This resolution appears as Resolution No. 221 in Resolution Book No. 2. 3. Sale of General Obligation Refunding Bonds Executive Director Nollenberger gave an informational report on the upcoming sale of General Obligation Refunding Bonds. He indicated that an appreciable savings will accrue to the city as a result of the issuance of these bonds because a lower interest rate will exist for the new issue. The Executive Director also indicated .that both the present bond issue and the proposed bond issue will be able to be called in 1993. Mr. Lawrence Wozniczka, 6744 Wentworth, asked several questions relative to present and potential future interest rates and how this might affect the issuance of these bonds. Both the city attorney and executive director responded to his questions. 4. Acquisition of Properties at 6425 and 6429 Portland Avenue Executive Director Nollenberger gave a background report on the negotiations relating to the acquisition of these properties and recommended that the HRA pass the resolution which would authorize the purchase at an amount of $163,000. HRA Meeting Minutes -3- April 18, 1983 The city attorney related a conversation he had with the prospective seller's attorney after the seller threatened to initiate litigation against the HRA because of alleged improper actions on the part of the HRA and staff. Mr. LeFevere also indicated that their attorney indicated that the seller would not be interested in selling the property for $156,000, but that he would recommend that they accept an offer close to $166,000. Chairman Harms questioned the negotiating procedure utilized by the staff and both the city attorney and executive director responded to his questions. Commissioner Ludeman indicated that he thought $163,000 was too much to pay for this property. Chairman Harms stated that he had two major concerns relative to property acquisitions and they were (1) that the HRA not pay too much for properties, and (2) that we need to live by our representations once we have begun the negotiating process. Chairman Harms also indicated he was feeling uncomfortable about getting into protracted litigation on this subject. Motion by Harms, seconded by Luettinger 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. 217 RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT TO BORROW MONEY FROM THE L/H/N SPECIAL REVENUE CAPITAL FUND FOR THE PURCHASE OF REAL PROPERTY AT 6425 AND 6429 PORTLAND AVENUE Po11 of votes: Ayes - Hassenstab, Helmberger, Luettinger, Harms. Nays - Ludeman. Carried. This resolution appears as Resolution No. 217 in Resolution Book No. 2. HRA Meeting Minutes -4- April 18, 1983 The HRA then discussed how negotiation problems could be avoided in the future. The executive director indicated that he thought it would be avoided because the negotiators for the HRA no longer have to exchange appraisals fot properties to be purchased outside of the L/H/N. Various comments were made relative to the need to obtain the property for the best possible price while still being fair about the price being given to prospective sellers. 5. Claims and Payrolls Commissioner Ludeman raised a question on a particular expenditure and the executive director provided a response. Commissioner Hassenstab indicated that a short memo to the HI2A on conference content would be appreciated when a staff member attends an out of town seminar or meeting. Motion by Hassenstab, seconded by Luettinger to approve the claims and payrolls. , SUMMIT STATE BANK Checks 4759/5047 $730,923.29 All ayes - Carried. 6. Executive Director Re ort The executive director gave a brief progress report on the 76th and Lyndale Planning Program, and indicated that the committee will be broadening its georgraphic representation by appointing additional members. The HRA indicated that it wanted to continue to be kept informed of when these meetings occur. Mr. Nollenberger also reported on the marketability study which was recently completed for the Cedar Avenue liquor site and that the study will be sent to both the city council and the HRA in the near future. He indicated that the feasible uses for the sites were either condominium office, or condominium residential. LJ HRA Meeting Minutes -5- April 18, 1983 The executive director indicated that a developer is interested in acquiring Nicollet Avenue shopping center. It was also mentioned that this might entail a request for possible HRA acquisition of the business properties along 66th Street including the Dairy Queen, Jackie Ann's Hairdressing Salon and the property otuned by the Naegele Company and occupied by Richfield Automotive. Commissioner Ludeman questioned how the grogress was going on the Godfather I ~~ Block and the executive director replied that progress continues on this and that sometime this week additional information will be received from Derrick Land Development Company. The executive director further indicated that it is the prospective developer's desire to be into preliminary marketing by fall of this year. 7. Adjournment Motion by Hassenstab, seconded by Luettinger that the meeting adjourn. A11 ayes - Carried. Time: 8:58 p.m. Date Approved: ~ ~ .~ oan Helmberger Secretary Thomas E. Harms Chairman