05-31-1983 Special1
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CITY OF RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY
Special Meeting
May 31, 1983
The Housing and Redevelopment Authority of the City of Richfield met in special
session in the council chambers of city hall on Tuesday, May 31, 1983 at 7:30 p.m.
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Chairman Tom Harms called the meeting to order at 7:35 p.m.
Commissioners Present: Helmberger, Ludeman, Luettinger and Harms
Absent: Hassenstab (Arrived Late)
uisition in the Block
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Chairman Harms announced the purpose of this special meeting of the Richfield
HRA~and opened the public hearing indicating that the first speaker would be a
representative of the Derrick Development Corporation, the developer proposing
redevelopment of the Godfather Block. Dick Krier, representing Derrick Development
Corporation, addressed the HRA and indicated that the developer was anxious to
proceed with this mixed use development which consists of 100 - 130 condominium
developments with amenities and parking areas, commercial development of 135 -
175,000 square feet of retail and commercial areas with a parking deck and 130
to 140 rental apartment units (including 20% to be available to low and moderate
income families, 80% to be market rate rental units). Mr. Krier indicated the
developer would like to take possession of the western property involved in
Phase I of the development by February 1, 1984.
Mr. Connor Schmidt, 1600 Twin City Federal Tower, Minneapolis, MN, representing
C & C Realty Co., and C & C Investment Co., addressed the HRA in opposition to the
proposed condemnation of the Wendy's property. Mr. Schmidt indicated that other
persons would also appear in this regard, including Mr. Peter Cooke, Mr. David H.
Nelson, Mr. Fred Hoisington and Mr. Del Peterson. Mr. Schmidt reviewed the
history of Wendy's,development which led to the construction of the building in
1978, and the likely effect of the HRA's taking this property. Mr. Schmidt
HRA Special Meeting -2- ~ May 3.1, 1983
-distributed a letter from the Larkin-Hoffman Law Firm regardling early development
approval for the property and the amendment to the Lyndale/Hub/Nicollet plan. Mr.
Schmidt indicated that Wendy's had been seen as a private catalyst for redevelopment
of the Godfather Block and that this site had been suggested to Mr. David Nelson
earlier for a restaurant location. Mr. Schmidt also indicated chat this location
is unique and is one of the best Wendy's restaurant sites in Minnesota. He also
indicated that because of the amount of the city subsidy required for the
redevelopment through land write-down and other•items, that the city should solicit
other development proposals.
Mr. Peter Cooke addressed the HRA concerning his recollection of the history
of the Wendy's development through his role as a partner in C ~ C Investments.
Mr. Cooke indicated that extensive efforts had been undertaken to locate Wendy's
near the Hub Development and that the restaurant makes a substantial contribution
to the city by employing 42 to 50 people and providing an annual payroll of
approximately $195,000. Mr. Cooke also indicated that this is the highest volume
Wendy's Restaurant in Minnesota.
Mr. David H. Nelson also addressed the HRA, describing the difficulty in
locating restaurant operations in Richfield. (Commissioner Hassenstab arrived
at 8;15 p.m.) Mr. Nelson indicated that he believed a change had taken place
in the city's policy toward redevelopment in the L/H/N area. He also indicated
that he is presently involved in the ownership of this Wendy's Restaurant.
The city attorney asked Mr. Nelson's relationship of Wendy's and Mr. Nelson
indicated that Peter Cooke and Mr. Shabeau were partners in C & C Investments and
Mr. Nelson and another person bought out Mr. Cooke's interest in that firm,
however, Mr. Cooke still retains an interest in C & C Realty, the owners of the
Wendy'.s building.
HRA Special Meeting -3- ~ May 31, 1983
Mr. Fred Hoisington, planning consultant, addressed the HRA on behalf of
Wendy's interest. Mr. Hoisington made an extensive presentation attempting
to demonstrate that the Wendy's restaurant presently held a unique location
with respect to restaurant operations and that there. were no alternative sites
available in the market area for a similar operation. Mr. Hoisington also said
that the condemnation of the Wendy's property would likely result in higher
than expected costs of acquisition. He indicated that the development project
proposed by Derrick would be more feasible without the Wendy's property and
that the project could be redesigned to keep Wendy's restaurant at its present
location.
Mr. Amos Heilicker, another landowner on the Godfather Block, stated that
he is neither for or against the development proposal but believes Mr. Hoisington's
figures are incorrect.': based on information he has with respect to the value of
the property on the block.
Mr. Delroy Peterson, formerly an economic development professional for
the City of Minneapolis, also appeared on behalf of the Wendy's interest. Mr.
Peterson indicated that the City of Minneapolis had never amended a project that
had an approved development already established within it and comgared the
proposed Godfather Block redevelopment to the Nicollet Lake project through the
city clearing land without development guarantees for the property.
Mr. Schmidt reappeared and briefly summarized,. indicating that the Wendy's
interests were very willing to work with the developer for development of the
balance of the property on the Godfather Block.
Mr. Larry Wozniczka, 6744 Wentworth, appeared to address the HRA and said
that he would like information concerning the cash flow performance statements
for the development. He said a phased development is new to the city and
presents questions. Mr. Harms referred Mr. Wozniczka to staff for the information
HRA Special Meeting -4- May 31, 1983
Commission Luettinger said that while not attempting to demean the Wendy's
interest, he believed the information presented by Mr. Cook and the letter
from the Hoffman Law Firm were confusing and conflicted with his recollection
of what had transpired. Mr. Luettinger read the last paragraph of the letter
presented earlier and indicated that he was on the city council at the time
this matter was considered and that the position that he took at that time was
in opposition to piece-meal development. He had suggested a temporary moratorium
on development in this area. He said Wendy's was approved on a 4 - 1 vote and
a search of the records will show that there was in fact opposition to Wendy's
development of this property.
Mrs. Helmberger stated that she was on the planning co~aission ate the s~ime
when the special permit for Wendy's came up and there were two members of the
planning commission opposed to the development for reasons similar to those
outlined by Mr. Luettinger.
Commissioner Ludeman stated that he believed the traffic and circulation
information patterns around Wendy's are not as good as purported in the present-
ation this evening. He further stated that plan approvals came at a time when
there was not an approved plan for development of the area.
Chairman Harms stated that, unfortunately this evening most comments
have been directed toward the Wendy's development rather than for the good of
the community. He said the Derrick project has not had comment this evening.
Motion by Ludeman, seconded by Hassenstab to close the public hearing.
All ayes - Carried.
Motion by Hassenstab, seconded by Ludeman to adjourn the meeting of the HRA.
All ayes - Carried.
Date Approved: June 20, 1983
J an He Berger Secretary
Thomas Harms Chairman
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