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
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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
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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
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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
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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
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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
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