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01-16-1984CITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING JANUARY 16, 1984 The Housing and Redevelopment Authority of the City of Richfield met in regular session in the council chambers of the city hall on Monday, January 16, 1984. The meeting was called to order by Chairman Harms at 7:30 p.m. Present: Commissioners Helmberger, Ludeman, Luettinger and Chairman Harms. (Hassenstab arrived at 7:35 p.m.). 1. Approval of Minutes of Regularly Scheduled Meeting of December 19, 1983 Motion by Ludeman, second by Luettinger to approve the minutes of the regularly scheduled meeting of the HRA of December 19, 1983. All ayes - Carried. 2. Opportunity for Citizens to Address the HRA Chairman Harms asked if anyone in the audience wished to address the HRA concerning items not on the agenda. No one wished to speak. 3. Election. of Officers for the Housing and Redevelopment Authori~ Motion by Ludeman, second by Helmberger to keep the same officers as in 1983 (Thomas Harms, Chairman; Vern Luettinger, Vice Chairman;and Joan Helmberger, Secretary). All ayes - Carried. 4. Cedar Avenue Liquor Store Site Development Proposals (Commissioner Hassenstab arrived at this time.) Executive Director John Cartwright called on Community Development Director Dennis Kraft to make a presentation concerning the development proposals for the Cedar Avenue Liquor Store site. Mr. Kraft presented background information on past studies concerning this area, including the Beverage Marketing, Inc. HRA Meeting Minutes -2- January 16, 1984 (BMI) study regarding liquor store location. A study by an economic development consultant concerning feasible land uses in the area, and action by the city council to set aside money for a study of redevelopment and tax increment financing opportunities in the area. Mr. Kraft also referred to a development proposal received by the city in May, 1983 for a bowling alley and restaurant facility from Mr. Ralph Bruins, representing Mr. James Hadden. Mr. Kraft stated that in November, 1983, the city and HRA solicited pre- liminary proposals for the redevelopment of the liquor store site and immediate surrounding area and received proposals as follows: 1. A proposal by Mr. Bruins on behalf of Mr. Madden for the development of a 48-lane bowling alley facility which would include a 150-seat banquet/meeting room area, as well as a restaurant and large parking areas. 2. A proposal by the Foxboro Corporation for development of up to 12,000 square feet of conanercial/office space at the northeast corner of the site, and 72 - 84 cooperative housing units on the balance of the property. Foxboro indicated that the city's liquor store could be relocated to the commercial space at the northeast corner of the property. Mr. Kraft said that staff reviewed the city's goals concerning the redevelopment of the property, including neighborhood compatibility, projected tax revenue, the impact on the liquor store location .and the developer's ability to proceed. The bowling alley facility would leverage more tax increment development (about $1 million), while the office/housing development would leverage about $1/2 million in other development. Mr. Kraft said that staff believes the housing/commercial development is more compatible with the neighborhood, and it is believed that proposal would also provide the best opportunity for proper relocation of the city liquor store operation. Mr. Kraft indicated that staff is presently seeking direction from the HRA Meeting Minutes '3- January 16, 1984 HRA concerning the initiation of negotiations with a developer for the property, a determination as to whether the city should rent or buy space for the continued operation of a liquor facility, and to meet with people in the immediate neighborhood to keep them informed of development plans. Chairman Harms asked each of the developers to comment on their proposals. Mr. Ralph Bruins, representing Mr. James Madden, said that their development proposal. would consolidate two existing bowling alleys into one facility and that the two sites would be redeveloped. He indicated that Mr. Madden would be ready to make a firm development proposal for this property by the end of March, 1984. Chairman Harms asked whether city subsidy of the development would be re' quested. Mr. Bruins indicated that the developer believes it may be able to be accomplished through conventional financing, but that situation could change. He also said the developer is presently working with an architect and construction firm on the development proposal. Commissioner Hassenstab asked questions concerning the nature of the facility and Mr. Bruins responded that the facility would include a bowling alley, restaurant, and large meeting room that could accommodate golf tournaments and other activities. He said that it is believed there is good berming available along I8th Avenue that would remain, and it may not be necessary to vacate 67th Street. Mr. Bruins indicated that the city liquor store could be relocated to the present location of the insurance agency office. Executive Director Cartwright commented that the city would like to have the liquor store operation relocated to the corner at 66th and Cedar, and Mr. Bruins responded that it is their plan to lay out the development both ways and it would be possible to consider that site for the liquor store. Discussion followed concerning the location of the city liquor store, and whether the HRA Meeting Minutes -4- January 16, 1984 developer would be requesting an on-sale liquor license. Mr. Bruins responded that they would request such a license. Executive Director Cartwright asked Mr. Bruins if he believed the bowling alley to be compatible with the multiple residential development nearby. Mr. Bruins said that Bloomington Bowling Alley is located in such a neighborhood and it does not present a problem. Mr. Cartwright also asked what the hours of operation would be, and Mr. Bruins responded that most bowling alleys this size are a 24 hour operation but that there is little traffic late at night. Mr. James Madden indicated that some leagues do run late, although night business is approximately 10 - 15% of the day business. Commissioner Ludeman asked if the restaurant would be open all night and Mr. Madden responded that the restaurant would close at approximately 10:00 p.m. to midnight. Mr. Ludeman also asked the hours that liquor would be served. Mr. Madden said that liquor would be served until approximately 12:3fl to 12:45 a.m. Discussion followed concerning sound proofing requirements for such a development, with regard to aircraft noise, as well as protecting adjacent residents from noise created by the bowling alley operation. Tt was noted that this would likely be covered through the requirements of the building code. Mr. Henry Fatzke, Chairman of Foxboro Corporation, indicated that their development is ready to move ahead. Chairman Harms asked whether Foxboro would be seeking city financing for its project. Mr. Fatzke said this would not be necessary, as the firm has conventional financing available. He said the city might help lower the housing costs through a low interest bond or some other means. Chairman Harms asked how much of the commercial space would be available for the Liquor store operatio and Mr. Fatzke responded that 6,000 square feet or more would be available for HRA Meeting Minutes -5- January 16, 1984 this use, Commissioner Harms also asked about the firm's timetable for the development. Mr. Patzke said more specific proposals can be made available by March 31, 1984, the deadline discussed with Mr. Bruins. Executive Director Cartwright asked whether the city would have the option to rent or purchase space in the commercial development for the liquor store, and Mr. Patzke said that either option would be available. Commissioner Hassenstab asked who the other principals were in ~ oxboro Corporation, and Mr. Patzke responded that the other principals included two attorneys, a general contractor/developer, the chief executive of a financial institution and an experienced realtor. Questions followed concerning the need for sound proofing in housing adjacent to the airport and the type of construction plans fvr the housing development. Mr. Patzke responded that the housing development will meet all requirements for sound proofing, and it is expected that it will be built of prefab concrete, with an exterior treatment or veneer. It will have a height of 2 to 4 stories, with most of the parking to be below grade. Commissioner Luettinger commented on future consideration of the airport zoning ordinance and suggested that the developers might wish to review its requirements concerning the intensity of the development. In response to questions from commissioners concerning the specifics of the development proposal, Mr. Patzke said that the commercial development would be located on the southwest corner of the intersection of 66th and Cedar and that the housing is to be built to the south, in three separate buildings. Mr, Patzke said that the units in the housing development would generally fall into a range of 900 to 1,000 square feet. Commissioner Ludeman asked if it might be more economical to build the HRA Meeting Minutes -6- January 16, 1984 development at 4 to 5 stories, and Mr. Patzke said this would be considered, particularly to take advantage of the view of the golf course. Commissioner Luettinger commented that he believed that it was a good idea to have the liquor store located on the corner of the intersection. In response to a question from Commissioner Ludeman, discussion followed concerning the nature of a cooperative housing development. Mr. Patzke said this would be similar to condominiums, except individuals own shares in the cooperative, rather than title to a housing unit. He also indicted that the development was proposed to be a cooperative rather than a condominium because of expected savings in title and legal work that would otherwise need to be done. H~A Attorney Clayton LeFevere described the specific differences between condo- minium and cooperative developments, and indicated that while similar developments had occurred in Minneapolis, they have not frequently been used in this part of the country. Commissioner Helmberger asked if individuals could sell their interest in the cooperative to anyone and Attorney LeFevere responded that requirements often vary among cooperatives and that the resale of shares could either be open or there could be a requirement to sell the interest back to the cooperative for remarketing. Commissioner Luettinger gave examples of how the cooperative where he lives operates. Mr. Patzke also noted that, depending on the type of financing used for the cooperative, there may be some restrictions on resale. Chairman Harms asked if this is the first development project for this corporation. Mr. Patzke responded that the proposed site at 70th and Nicollet in Richfield had been sold and that the firm presently has other developments under consideration. At this time HRA Commissioners directed questions to staff. Commissioner Hassenstab asked what had occurred at the December 7, 1983 HRA Meeting Minutes -7- January 16, 1984 meeting of the neighborhood. Community Development Director Kraft responded that the purpose of the meeting was to make the neighborhood aware of potential change of use of the liquor store site. Neighbors indicated that they wish to be kept informed with the status of any development proposals. Another matter of interest was the anticipated traffic on 18th Avenue. Residents also expressed an interest in having any development be compatible with the residential area. Commissioner Hassenstab asked what specific considerations were given to the development proposals by the staff, and Mr. Kraft responded that staff's consideration included the effects hours of operation and traffic with regard to the adjacent residential area. It was indicated that there would likely be a need for extensive screening regardless of which proposal is successful. Commissioner Ludeman commented that he believed closing 67th Street in this vicinity may be an advantage for the area. Commissioner Helmberger said that, in view of the potential increased development near the former stadium site there might be enough changes in the vicinity that housing would be a less desirable use of the property. Mr. Kraft indicated that in such case it would be likely that traffic on Highway 77 would increase, but the noise from such traffic world not be comparable to noise generated by the airport. Commissioner Helmberger asked whether such development would create pressure for other commercial development in Richfield. Mr. Kraft indicated that such development is not expected in the immediate future. Commissioner Hassenstab asked, when looking at the master supply of housing in Richfield, whether this proposal would create an oversupply, expecially given other projects under consideration. Mr. Kraft responded that this project would be consistent with the city's goals, in that it is targeted to young people and "empty-nesters". Bruce Palmborg, of the HRD staff, said that the target markets of the projects are different and that this proposal would not be in HRA Meeting Minutes -8- January 16, 1984 competition with some of the other projects presently under consideration. Mr. Palmborg reviewed the other projects with the HRA. Commissioner Ludeman asked that if 2 bedroom units are available, what provisions would be made for parks and greenspace in~the area. He said there should be some consideration of families with children that might live in the housing development. At this time Chairman Harms asked HRA Commissioners to comment on the proposals. Mr. Hartas said that he had a problem in stating a preference for either proposal due to lack of specific infoxcnation, and also because the neighbors aren't aware of the specifics of the proposals. He said it has been the thrust of the HRA to promote housing, and therefore, all else being equal, such a development might have an edge in his consideration. He said he is not able to choose a specific proposal at this time, but would encourage staff to meet. with both•developers on the specifics, especially regarding the liquor store location. Commissioner Ludeman said that he shares similar concerns, expecially since the city told the neighbors that they would be kept informed. He said he bet ieved there may be a greater demand for housing at this location from people who would be working in nearby developments in Bloomington. He also indicated he believed a bowling facility might be more compatible with the airport location. Commissioner Helmberger indicated that business use may be appropriate as she is not sure that it is a good location for housing. She also said business development may help the area north of 66th Street. Commissioner Luettinger said one consideration would be the difference in generation of tax increment for adjacent development. He also believed the neighborhood should be invited to an HRA meeting when the decision is made HRA Meeting Minutes -9- January 16, 1984 concerning the development. He believed the effect of the airport zoning ordinance needed to be taken into account and also had concerns regarding the need to funnel traffic away from 18th Avenue. Mr. Luettinger said another consideration would be looking at the diversity of the development in order to broaden the tax base of the city. Commissioner Hassenstab said that he did not believe enough information had been made available to the HRA to make a decision, and that he shares many of the concerns expressed by the other commissioners. Chairman Harms indicated that he believes the HRA had an interest in both development proposals and suggested that the developers continue to meet with staff. He believed it would be appropriate to have a meeting with the neighborhood present sometime in March. Attorney LeFevere said any additional information presented by the devel- opers should be specific in the layout drawings, including precise locations of buildings, elevations of structures and other information sufficient for a specific review of the development. Mr. Harms said information should also be provided regarding financing requirements and the economic benefits that the city could expect from the proposals. 5. Resolutions Designating Official Depositories Motion by Hassenstab, second 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 N0. 239 RESOLUTION DESIGNATING THE SUMMIT STATE BANK A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FOR THE YEAR 1984 AND APPROVING COLLATERAL Poll of votes: Ayes - Helmberger, Ludeman, Luettinger, Hassenstab, Harms. Nays - None. Carried. This resolution appears as Resolution No. 239 in Resolution Book No. ~. HRA Meeting Minutes -10- January 16, 1984 Questions followed concerning any affect resulting from the recent sale of the Summit Bank, and Mr. LeFevere indicated that no affect on the city or the HRA was expected. Motion by Ludeman, second 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: RESOLUTION 1V0. 240 A RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1984 Poll of votese Ayes - Helmberger, Ludeman9 Luettinger, Hassenstabo Nays - None. Abstain - Harms. Carried. This resolution appears as Resolution No. 240 in Resolution Book No. 3. 6. Resol of HRA Attorney Clayton LeFevere reported on the staff recommendation to 1 proceed with a "quick-take" proceeding for this property, end the need for a deposit to be made by the HRA with the court. Mr. LeFevere said that the property involved includes the property between Wendy's and the Godfather Restaurants along Lyndale then westerly to the auto parts store. Discussion followed con- cerning the extent of the Strom property involved in the "quick-take" proceeding. Commission Ludeman asked what the amount of the deposit to be made to the court is based upon. Attorney LeFevere responded that the amount is based on the appraised value of the three buildings and the land involved in the eminent domain proceedings. Motion by Ludeman, second by Luettinger that the following resolution be adopted; that it be spread in the resolution book and that it be made a part of -, ~', H RA Meeting Minutes -11- these minutes: RESOLUTION N0. 241 RESOLUTION ESTABLISHING JUST COMPENSATION January 16, 1984 Poll of votes: Ayes - Helmberger, Ludeman, Luettinger, Hassenstab, Harms. Nays - None. Carriedy., This resolution appears as Resolution No. 241 in Resolution Book No. Attorney LeFevere indicated that the hearing on the "quick-take" proceeding is scheduled for January 23, 1984. 7. Claims and Payrolls Motion by Ludeman, second by Hassenstab that the following claims and payrolls be approved: SUMMIT STATE BANK Checks 5141/5287 All ayes - Carried. $1,265,477.10 8. Adjournment Motion by Hassenstab, second by Luettinger that the meeting adjourn. All ayes - Carried. Time; 8:50 p.m. Discussion followed concerning the next meeting of the HRA which is scheduled to fall on Presidents Day holiday in February. HRA Commissioners agreed to schedule the next meeting for 6:00 p.m. on February 6, 1984. Date Approved: February 6, 1984 /0=~~`~G ~°e,,~~ /-~ ~! e/ J,d.~n Helm erger Secre -ary v r ~~ ~o ~ mas E. Harms Chairman