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12-19-1983CITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING DECEMBER 19, 1983 The Housing and Redevelopment Authority of the City of Rich- field met in regular session in the council chambers of the city hall on Monday, December 19, 1983. The meeting was called to order at 8:00 p.m, by Chairman Tom Harms . Present: Commissioners Helmberger, Ludeman, Luettinger, and Harms. (Hassenstab was absent due to illness in the family) . 1. A rowal of Minutes of Re lar Meetin of November 21, 1983,. and S ecial Meetin Of Novem er 28, 1983 Continued to November L9. 19.3. Motion by Helmberger, seconded by Ludeman to approve the minutes of the regular meeting of November 21 and the special meeting of November 28 continued to November 29, 1A83. All ayes - Carried. Absent - Hassenstab 2. Designation of Auditor for 1983 Fin ancial_Records. Motion by Ludeman, seconded by Helmberger to approve the desig- nation of the auditing firm of Cummings, Keegan & Company, to perform the 1983 audit of HRA financial reco~cTs. All ayes - Carried. Absent - Hassenstab 3. Metropolitan Council Administration of Accessory Apartment Program. Executive Director Cartwright introduced this item and called on Community Development Director Dennis Kraft to explain the program. Mr. Draft gave a background explanation of the Accessory. Apartment Program and the improvement loans that would be made available under the program. Mr. Kraft noted that participation in this program would not affect the Richfield Zoning Ordinance or its control of HRA Minutes, December 19, 1983 -2- accessory apartment uses in the community. Commissioner Helmberger asked how the program would be marketed in the community? Mr. Kraft responded that staff would make it known that the program is available, but not aggressively market the program. Persons interested in the program would be referred to the Metropoli- tan Council HRA for details on the program. Commissioner Ludeman asked how this item fits with the ordinance? Mr. Kraft responded that any participant would still have to meet all ordinance require- menu for .accessary apartments. Commissioner Luettinger asked if participation in the program would mean the city relinquishing any rights to the Metropolitan Council? Mr. Kraft responded that its only involvement would be to help make the program available and mar- ket its availability. Motion by Ludeman, seconded by Luettinger that the following res olution be adopted; that it be spread in the resolution book and that it be made a part of these minutes: RESOLUTION NO. 237 RESOLUTION AUTHORIZING THE METROPOLITAN COUNCIL TO IMPLEMENT A DEMONSTRATION ACCESSORY APARTMENT LOAN PROGRAM WITHiN THE CITY OF RICHFIELD Poll of votes: Ayes - Helmberger, Ludeman, Luettinger, Harms. Carried. Absent- Hassenstab 4. Opportunity for Citizens to Address the HRA At this time Chairman Harms asked whether there were any citizens in the audience who wished to address the HRA concerning any items not on the agenda. Betty Carr, 6633 Lynwood Boulevard, asked if the HRA could pro- vide information concerning income requirements for families under HRA Minutes, December 19, 1983 -3- rental and owner-occupied housing program? Chairman Harms responded that this information was available at this meeting from city staff. 5. Report on Status of Ne otiations for Purchase of Pro art at 6401-64 5 Lyn ale Avenue - Opdahl Property, L H N rea Executive Dir-actor Cartwright introduced this item and called on Community Development Director Dennis Kraft to explain the proposed purchase of the property and the need for the Planning Commission to review both the proposed purchase and the amendment to the L/H/N plan. Mr. Kraft reviewed the action reduested of the HRA, describing the recent negotiations with•the estate of the recently deceased owner of the property. Commissioner Ludeman indicated that he believes the proposed - purchase price is high and asked whether the HRA would pay assess- ments? City Attorney LeFevere said that previous assessments for L/H/N improvements, perhaps as much as $20,000 to $30,000, were prop- osed to be paid by the HRA. Mr. LeFevere clarified that when assess- ments are part of any purchase negotiation, they are taken into account by both the buyer and the seller in arriving at the purchase price of the property. Commissioner Ludeman asked if the tenants would receive relocation benefits? City Attorney LeFevere responded that to the extent that they were eligible for those benefits, they would receive them. Commissioner Ludeman asked why the HRA would want to purchase the property? Mr. Kraft responded that there is a concern that if the property is purchased by a private party, the buildings will continue to remain in a deteriorated condition and will not be renovated along the lines of what be expected for the L/H/N area. Mr. Martin Kirsch, 6725 Penn Avenue, stated that he had re- HRA Meeting Minutes, December 19, 1983 -4- Gently looked at the possibility of relocating the post office to this property, believing the post office building could then be made more accessible to the handicapped and others. He recommended looking at this property for that possibility and thinks it might be a good opportunity for the relocation to occur. Commissioner Luettinger said that the Planning Commission had discussed the post office at its last meeting and asked questions concerning the extent of the lease for the existing post office. Staff indicated that the remaining time of the post office lease is not precisely known. Chairman Harms asked whether other developers have looked at this property and the practicality of renovation. He wondered if it might be possibel to defer action on this item to see if a private developer buys it. Mr. Kraft responded that a developer would not likely buy it at this price and said the city might have to inter- vene to make the project economically feasible. Chairman Harms suggested the city staff have a private developer look at the possi- bilities and get a specific plan of action. Bruce Palmborg, Housing and Redevelopment Division Coordinator, commented that reasons for recommending purchase at this time in- cluded the fact that there is only one written lease for tenants and that three spots in the buildin~~are presently vacant. Chairman Harms said that it has been the history of the HRA to buy property only when there is a specif is plan of what to do with it and he be- Neves it is necessary to get a better plan laid out and find out what is necessary to make the project work economically. He said he believed it would be appropriate to proceed, but not let the owner believe that the purchase is a foregone conclusion. HRA Meeting Minutes, December 19, 1983 -5- Discussion followed regarding procedural aspects of the Planning Commission considering this matter. Attorney LeFevere said that both the change in the L/H/N Land Use Plan and the public acquisition of the property need to be considered by the Planning Commission. It was suggested that this matter be tabled for consid- eration at a later date. Motion by Ludeman, seconded by Luettinger, to table this matter to allow city staff time to contact potential developers. All ayes - Carried. Absent - Hassenstab 6. Contract Amendment, Section 8 Program Executive Director Cartwright introduced this item and recommended approval. Motion by Ludeman, seconded by Helmberger, that the following resolution be adopted;~that it be spread in the resolution book and that it be made a part of these minutes: RESOLUTION NO. 238 RESOLUTION AMENDING THE SECTION 8 PROGRAM CONTRACT Poll of votes: Ayes - Helmberger, Lud~man, Luettinger,.Harms. Carried. Absent - Hassenstab. 7. Verbal Report on Derrick Proposal for Godfather Block Attorney LeFevere outlined the status of current negotiations for this project. He indicated that staff is presently looking at a development agreement to be completed in January that would require the developer to have commitments for financing and leasing by July 1, 1984. If the commitments are not obtained, the developer would have the option to bail out of the project and would also have until September 1, 1984 to continue seeking to obtain the commitments. The HRA Meeting Minutes, December 19, 1983 -6- The developer would also have to construction contracts completed by the September 1, 1984 date. Mr. LeFevere indicated that the tota project expected to have a market value of $21 million and that good progress has been experienced in staff's negotiations with the devel- open. Discussion followed regarding specific aspects°:of the proposal. HRA members asked for an updated map and outline of the proposal as it most recently stands. 8. Verbal Report on Richfield State Ac~enc~Proj ect City Attorney LeFevere reported that the resale of the Kentucky Fried Chicken property and the Bjorn Hagen property to the Richfield State Agency is now complete. The Richfield State Ageney has entered into an assessment agreement for the return of the city's investment in this proeect, and has also provided a guarantee that the city's investment be returned, even if the project does not proceed. Community Development Director Dennis Kraft said that the devel- opers are presently determining whether excavation on the north side of the development should proceed and have indicated that the project is expected to begin in the spring of 1984. He also indicated that the developer may be under some time limitations, due to the requirements of the Industrial Revenue Bond Financing for the project. 9. Verbal .Report on Proposed Cedar Avenue Development Executive Director Cartwright called on Dennis Kraft to provide a report on this project. Mr. Kraft indicated that two developers still have interest in the redevelopment of the property, one prop- oral involving ocnstruction of a bowling alley and restaurant, and the other involving a type of cooperative multi-family development and commercial development. Mr. Kraft said that the developers had recently been asked to provide an indication of their interest HRA Meeting Minutes, December 19, 1983 -~- and more detailed plans 'f or their protect. He also said a public meeting had been held on December 7, 1983, to let people in the area know that some. type of project is being discussed for the area. Discussion followed regarding the need to get development started north of 66th Street and the apparent need for tax increment fin- ancing to assist that development. 10. Claims and Payrolls Motion by Ludeman, seconded by Helmberger to approve the claims and payrolls as submitted. SUMMST STATE BANK Checks 5137/5260 $ 540,747.34 All ayes - Carried. Absent - Hassenstab 11. Adjournment Motion by Ludeman, seconded by Luettin ger to adjourn the meeting. All ayes - Carried. P.bsent - Hassenstab.. Time: 8:55 p.m. Date Approved: January 16, 1984 G ~Z I~~ 2 2 Jo He mb rger Sec etary omas E. arms C airman