10-24-1983 Special
CITY OF RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY
SPECIAL MEETING
October 24, 1983
The Housing and Redevelopment Authority of the City of Richfield met in
special session in the council chambers of the city hall on Monday, October 24,
1983 at 6:45 p.m. `
The meeting was called to order at 6:50 p.m. by Chairman Thomas Harms.
Present: Commissioners Hassenstab, Helmberger, Ludeman, Luettinger,
Chairman Harms.
1. Revues
1 of Deve
t With
Developers for the Development of Commercial Property Located Northeast
and Southeast of the Intersection of 66th and Nicollet, and Lease/
Purchase Agreement with the Developers for the Lease and Subsequent
Purchase of Property at the Northeast Corner of 66th_~nd Nicollet
This item was introduced by Executive Director John Cartwright.
City Attorney Clayton LeFevere outlined the proposed agreements, noting
1
that the lease-purchase agreement would provide for the HRA to sell the Richfield
Automotive property to the developers. Mr. LeFevere reviewed the history of
city and HRA involvement with this property, which was formerly owned by Naegele
Outdoor Advertising.
Under the agreement, the billboard will be removed and the developer will
demolish the building for parking area. Administrative and relocation costs
will also be incurred, bringing the total cost to about $180,000.
This amount is to be recouped by the lease and eventual sale of the
property, and 'by developer contributions of tax increment through increased
assessed value of the property. The developers have pledged up to $360,000
in market value over the "frozen" value of the property.
By assisting this project, the public is assured of the additional improve-
ments. If more than the guaranteed assessed value results, the city will recover
its investment more quickly.
Commissioner Luettinger asked if relocation costs would also be recouped.
HRA Special Meeting Minutes -2- October 24, 1983
Attorney LeFevere said•it would, based on a total cost of $180,000.
Commissioner Ludeman asked the developer if all of the property has been
purchased. Thomas DuFresne of Richfield Shoppes Developers, said the Iast
purchase option had been acquired this afternoon.
Motion by Hassenstab, second by Luettinger to approve the development
agreement and lease-purchase agreement in substantially the form presented at
the meeting.
All ayes - Carried.
2. Amendment to Documents for the Sale of 6822 Queen Avenue South and Rental
Agreement with the Prospective Bu er of the Pro ert
Executive Director Cartwright called on Dennis Kraft, Community Development
Director, to report on this item.
Mr. Kraft reported that, due to requirements of the Minnesota Housing
Finance Agency, MHFA, the total amount of the mortgage eligible for financing
is $75,000, therefore, it will be necessary to amend the documents for the sale
to reflect this lower amount.
Motion by Helmberger, second by Hassenstab to approve the necessary changes.
All ayes - Carried.
Motion by Ludeman, second by Hassenstab to authorize execution of the
rental agreement.
All ayes - Carried.
3. Adjournment
Motion by Hassenstab, second by Luettinger to adjourn the meeting.
All ayes - Carried. Time: 7:05 p.m.
Date Approved: No member 21, 1983
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Jo Helmberger Secretary
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r
omas E. Harms Chairman