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06-20-1983HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD, MINNESOTA REGULAR MEETING June 20, 1983 The Housing and Redevelopment Authority of the City of Richfield met in regular session in the council chambers of the city hill on Monday, June 20, 1983 at 7:30 p.m. The meeting was called to order by Chairman Thomas Harms at 7:35 p.m. Present: Commissioners Hassenstab, Helmberger, Luettinger, Harms Absent: Ludeman Also Present: Council Members Bunce, Kirsch, Priebe and Mayor Hamilton. 1. Approval of Minutes Motion by Hassenstab, seconded by Luettinger to approve the minutes of the regular meeting of May 16, 1983. All ayes - Carried. Absent - Ludeman. Motion by Hassenstab, seconded by Luettinger to approve the minutes of the special meeting of May 31, 1983, subject to a clarification requested by Chairman Harms on the last page of the minutes indicating that the proposed Derrick project was, in fact the basis of the meeting being held on May 31, 1983. A11 ayes - Carried. Absent - Ludeman. 2. Opportunity, for Citizens to Address the HRA A woman asked that HRA agendas be made available for distribution to the audience. 3. Modification No. 4 to the L/H/N Commercial Improvement Program and Authorization to Purchase 6545 Nicollet Avenue Dennis Kraft, Community Development Director, made a presentation describing the proposal to acquire the property. Commissioner Hassenstab asked about tenants' rights through the city purchase and Mr. Kraft indicated the tenant would be eligible for relocation benefits and moving costs. Mr. Chuck DuFrense, representing Lincoln Properties, introduced architect HRA Regular Meeting - 2- Ron Rrank, who described the project design and plans in detail. June 20, 1983 Mr. Hassenstab asked whether the design is compatible with buildings on the west side of Nicollet, and Mr. Krank responded that he believed that metal facia would be compatible with the design and materials of the Hub Center. Commissioner Luettinger asked if tenants had been signed to occupy the space. Mr. Krank indicated that they had not, but that the interest in the redeveloped center is quite high. Commissioner Helmberger asked what kind of tenant would be located in the Red Owl building, and it was indicated that it would most probably be a retail operation. In response to a question from Chairman Harms, Mr. DuFrense indicated that purchase agreements have been signed for the Red Owl property and most of the shopping center, and the firm was working to acquire the property of other owners. Chairman Harms said he understood the time table for acquisition is intended to end by approximately September 1, with construction starting September 15, and completion by December of 1983. It was also asked whether industrial revenue bonds would be requested for financing the redevelopment, and Mr. DuFrense indicated the request had been made and a public hearing set for the request. Mayor Hamilton asked from the audience whether property owners have an interest in selling, and Mr. DuFrense indicated that this was the case. Mr. Herb Olson, 6638 First Avenue, resident of the Red Owl block, asked questions about the building use, traffic changes, commented on his belief that the operation of the business at the service station should be assisted by the city. In response to his questions it was indicated that there would not be any great change in the traffic patterns and Attorney Clayton I.eFevere indicated that it• was likely the driveway and circulation system would remain the same, and that the tenant at the service station may look within or outside of Richfield to 1 relocate his business. HRA Regular Meeting -3- June 20, 1983 .Opal Hamel, 6613 First Avenue, stated that the driveway on First Avenue from the Red Owl property was not supposed to be there and thought that it would be eliminated. Ms. Hamel indicated that she would not like to see traffic changes resulting from the redevelopment. Mr. Larry Wozniczka, 6744 Wentworth Avenue, inquired about the type of tenants that would be located in the project and the sidewalk and parking layouts. Mr. Krank indicated that these would occur in accordance with the city zoning requirements. Mr..Wozniczka also asked about financing of the purchase of the building and sign, and Chairman Harms indicated that the purchase would likely be contingent on a development agreement for-the project. Mr. Steve Sawitzke, 7433 Clinton Avenue, stated a concern about the need for independent business people in the area, and his belief that it would not be good for all the property to be owned by one firm. Chairman Harms said he believed the purchase should occur after a development agreement is executed with Lincoln Properties for the entire project. Mr. Harms asked that this stipulation be incorporated into the resolution approving Modification 4. Motion by Hassenstab, seconded by Helmberger that the following resolution, as amended, be adopted; that it be spread in the resolution book and that it be made a part of these minutes: RESOLUTION N0. 222 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD, MINNESOTA, APPROVING MODIFICATION N0. 4 IN THE LYNDALE-HUB-NICOLLET COMMERCIAL IMPROVEMENT PROGRAM 6545 NICOLLET AVENUE AND . AUTHORIZ IlVG THE ACQUISITION OF SAID PROPERTY Po11 of votes: Ayes - Hassenstab, Helmberger, Luettinger, Harms. Absent - Ludeman. Carried. This resolution appears as Resolution No. 222 in Resolution Book No. 2. HRA Regular Meeting -4- June 20, 1983 4. Consideration of Redevelopment Potential of Block Bounded b Rae Drive 66th Street and Coach Homes Introduction of this item was made by Acting Executive Director Tom Morgan, and a presentation was made by Dennis Kraft, Community Development Director, con- cerning the background on this item. Commissioner Helmberger asked whether council had given first reading for the rezoning. It was answered that this was the case. Chairman Harms asked if any interest had been received from a developer for this property, and it was indicated that interest had not been received. Ms. Helmberger asked whether there would be any potential of using land in the area in conjunction with the Uo-Tech Housing Program. Mr. Kraft responded that this would be a possibility. Betty Carr, 6633 Lynwood, described her thoughts in treating the property as a whole, the possibility for the city or the HRA to buy the Hennepin County house and the corner property and realign it. Chairman Harms indicated that it might be desirable to have an~easement occur from the corner property. Mrs._Anne Burkhardt, 921 Rae Drive, said that the block is now Residential and wants to know why it should change. She referred to goals established for the L/H/N project to avoid lengthening the 66th Street commercial area. Chairman Harms clarified that the HRA is not empowered to act on zoning matters and that was a matter to come before the city council. Dave Burkhardt 921 Rae Drive, commented on ownership of the houses on this block and said that they are not kept up. Peter Beck, representing Dr. Elasky, described their proposal. Discussion w took place concerning the history of this matter, especially regarding the block's exclusion from the L/H/N. City Attorney LeFevere stated that the L/H/N had originally included the Woodlake School site and other parcels nearby, but not this area, indicating that 1 HRA Regular Meeting -5- June 20, 1983 it hail apparently been left out intentionally. Commissioner Luettinger spoke in favor of further study of development possibilities for this block. Commissioner Helmberger spoke in favor of housing uses. Commissioner Hassenstab said he saw three possibilities: Leaving the area alone, redeveloping it for housing, or going with the dental office proposal. Chairman Harms said the HRA discussion should be made known to the council, especially regarding the possibility of improvements. Acting Executive Director Morgan asked if Dr. Elasky would consider the option for an easement from the dental office to the property to the west. 5. Authorization to Purchase 6601 L dale Avenue Members of the HRA heard a report from Attorney LeFevere on the circumstances of the purchase agreement for the Hagen property at 6601 Lyndale. Mr. Bjorn Hagen addressed the HRA, asking for clarification of certain terms of the purchase. Motion by Hassenstab, seconded by Luettinger that the fallowing resolution be adopted; that it be spread in the resolution book and that it be made a part of these minutes: RESOLUTION N0. 223 RESOLUTION ESTABLISHING JUST COMPENSATION, AND AUTHORIZING THE PURCHASE OF 6601 LYNDALE AVENUE AND A PAYMENT FOR IMPROVEMENTS (HAGEN PROPERTY) Poll of votes: Ayes - Hassenstab, Helmberger, Luettinger, Harms. Absent - Ludeman. Carried. This resolution appears as Resolution No. 223 in Resolution Book No. 2. 6. Chronology of Events Related to the Redevelopment of the "Godfather Block" and Request for Authorization to Initiate Eminent Domain The presentation was made by Community Development Kraft concerning this matter. Motion by Luettinger, 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: HRA Regular Meeting -6- RESOLUTION N0. 224 RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN REAL PROPERTY BY EMINENT DOMAIN PROCEEDINGS June 20, 1983 Poll of votes: Ayes - Hassenstab, Helmberger,~ Luettinger, Harms. Absent - Ludeman. Carried.. This resolution appears as Resolution No. 224 in Resolution Book No. 2. 7. Claims and Payrolls Motion by Hassenstab, seconded by Luettinger that the following claims and payrolls be approved. SUMMIT STATE BANK Checks 4833/5062 All ayes - Carried. Absent - Ludeman. $369,435.84 8. Adjournment Motion by Hassenstab, seconded by Luettinger to adjourn the meeting. All ayes - Carried. Absent - Ludeman. Time: 9:10 p.m. _ Date Approved: July 18, 1983 ~-Z~~t an Helmberger Secretary Thomas E. Harms Chairman I ~I