11-21-1983CITY OF RICHFIELD
HOUSING AND REDEVELOPMENT A,.UTHORITY
REGULAR MEETING
November 21, 1983
The Housing and Redevelopment Authority of the City of Richfield met in
regular session in the council chambers of the city hall on Monday, November 2i,
1983 at 7:30 p.m.
The meeting was called to order at 7:30 p.m. by Chairman Tom Harms.
Present: Commissioners Helmberger, Ludeman, Luettinger, Hassenstab and
Chairman Harms.
1. Approval of Minutes of Regular Meeting of October 17, and Special
Meeting Minutes of October 24, 1983
Motion by Hassenstab, seconded by Ludeman to approve the minutes of the
regular meeting of October 17, and a special meeting o•f October 24, 1983.
All ayes - Carried.
2. Opportunity for Citizens to Address the HRA
None wished to speak.
3. Discussion of Lincoln Hills School Property
Executive Director Cartwright reported on staff`s examination of possible
proposals for development of the school property through staff discussions with
the school district officials. He indicated the purpose of this item being
on the agenda is to present an informational report to the HRA and obtain feedback
and direction from the Commissioners.
Commissioner Hassenstab inquired about what the school district wants
regarding the use of the property and whether a firm proposal was being sought
from the city by the school district. Mr. Cartwright responded that he believed
the school district would prefer housing over commercial use of the property and
that a firm proposal is not yet being sought. Commissioner Hassenstab further
stated that an earlier proposition for establishing community center space at
HRA Meeting Minutes -2- ~ November 21, 1983
Lincoln Hills, Portland School and the city's Community Center is apparently
no longer being pursued by the city and asked about the status of the use of
Portland School. Mr. Cartwright commented that he has contacted Hope Presby-
terian Church, which is interested in purchasing the Portland School, to discuss
the city's interests in that building space. Comments followed from commissioners
concerning the need for elderly housing in the community, cost of demolition
of the Lincoln Hills school building, parking areas and the price of housing
that might be constructed at this site. Staff noted that there is a need based
on the city's studies to focus on family housing in the community and that it
would cost approximately $b0,000 to $90,000 to demolish the building at the
Lincoln Hills site. Also additional parking areas would be required. to
accommodate a town house development.
Community Development Director Dennis Kraft noted that the average price
of homes in Richfiield is approximately $75,000. Questions followed concerning
whether the community would gain by marketing city-subsidized housing at a cost
approaching the average cost of housing in the city and whether town house units
would be marketable. Commissioner Ludeman suggested that if Portland School is
sold, the occupants there might wish to use some other space, specifically
Lincoln Hills School. Executive Director Cartwright commented that another
option available is to provide housing for the elderly at the Lincoln Hills
site. Commissioner Helmberger stated that she is also concerned about providing
family housing in the community and said the price estimated for the town house
units does not seem to be assisting families of income levels who need the most
help.
Comments were also made concerning the price that might have to be paid to
the school district for the property. The staff was requested to prepare a
HRA Meeting Minutes -3- November 21, 1983
comprehensive listing of the housing types available in the community, including
units for the elderly, family and so forth, to help update the HRA. Discussion
followed concerning the general availability of subsidized housing in the
community and the city's interest in recycling housing from "empty nesters" to
young families. Chairman Harms said that he believed it useful to continue to
look at possibilities for the site, but that he was not enthusiastic about the
price of the housing being proposed at this time by the staff. The Executive
Director responded that staff will pursue a housing project with school officials
at a price range of $55,000 - $65,000 per unit.
4. Discussion of Proposed Proiect for Godfather Block (Market Plaza)
Executive Director Cartwright called on Attorney Clayton LeFevere to report
on this item. Mr. LeFevere reviewed with the HRA commissioners the city staff
proposal which was presented to the Derrick Companies this afternoon. This
proposal included the project costs expected to be paid for through the tax
increment project. Mr. LeFevere noted that the city proposal precludes any
city involvement in construction or operation of a parking ramp for the property
and that the proposal would furnish the developer the land for the development
at no cost. It was further noted that the Derrick Companies wished to put a cap
on the land price exposure to the developer. Because of the size of the project
costs, the developer proposed a smaller commercial area (about 70,000 square feet)
and a parking deck in place of a parking ramp. It was indicated that staff will
be looking at revised property values proposed by the developer, the possible
effects of additional increment being received through the growth of property
values due to inflation, and the use of the 1984 tax rate instead of the 1983
tax rate.
HRA Meeting Minutes
Questions followed concerning
project. Attorney LeFevere indica
in the project who are experienced
assurance that these firms will in
-4-
the dev
ted that
in this
fact be
November 21, 1983
eloper's capability to carry out the
other firms were also being involved
type of development and the city needs
involved. Mr. Harms asked the reason
for having inflation to property values added to the calculation and Attorney
LeFevere responded that this will be reviewed to see if the soundness of the
project can be improved by,increasing the tax increment return on the down-sized
project.
Discussion followed concerning the size of the commercial area being proposed
and whether or not this part of the project could be expanded in the future.
Attorney LeFevere discussed additional security that might be required to protect
the City and the HRA against losses that could potentially occur during the
property acquisition and transfer process. It was also noted that the developer
had requested that preliminary approval be granted to revenue bond financing for
the rental housing portion of the development.
5. Claims and Payrolls
Motion by Ludeman, seconded by Luettinger to approve the claims and payrolls
as submitted.
SUNlIKIT STATE BANK _
Checks 4990/5136 $2,Oi6,528.09
All ayes - Carried.
6. Adjournment
Motion by Hassenstab, seconded by Luettinger to adjourn the meeting.
All ayes - Carried. Time: 9:15 p.m.
Date Approved: December 19, 1983
~'~' ,
Jo Helmberger S retary `Thomas E. Harms Chairman