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03-19-1984HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD, MINNESOTA March 19, 1984 7:30 P.M. Meeting was called to order at 7:30 P.M. by Chairman Tom Harms. Commissioners present: Helmberger, Ludeman, Luettinger, Harms. (Commissioner Hassenstab arrived later) Motion by Ludeman, second by Luettinger to approve the minutes of February 6, 1984. All voted aye, motion carried. 1. Opportunity for Citizens to Address the HRA. No one wished to speak. 2. Three Concepts for Redevelopment of the Cedar Avenue Liquor Store Site Executive Director Cartwright noted that a notice was sent out to residents but~that some areas didn't receive them. He said as a result, a hand-delivery of notices was done this morning. _ • Mr. Cartwright said that the HRA had solicited concept proposals from • developers for the redevelopment of City property located south of Cedar Avenue and the 66th Street intersection. He also spoke to the need for redevelopment in the area north of 66th Street along Cedar Avenue. Mr. Dennis Kraft, Director of Community Development, reported on the existing characteristics of the area and the potential for tax-increment financing for redevelopment. Mr. Kraft also noted the concern for neighborhood compatibility of any redevelopment proposed. Mr. Kraft also reviewed various alternatives for phasing redevelopment in the overall area proposed T.I.F. project area. Mr. Bruce Palmborg, Community Development Director, presented slides to show existing conditions in the proposed T.I.F. project area, and noted that there were certain problem areas as well as viable businesses located along Cedar HRA Meeting -2- March 19, 1984 Avenue north of 66th Street. During the presentation, Mr. Palmborg noted the lack of parking in certain areas, mixed land uses, and a lack of intensity of development in terms of building square footage. (Commissioner Hassenstab arrived at 7:45 p.m.) Mr. Kraft presented preliminary information on the amount of tax-increment that might be generated by various redevelopment proposals, .including an office/ service center use, a bowling alley/entertainment enter and multi-family resi~ dential, development, all of which could be developed on the city owned liquor store and used car lot sites. Mr. Chuck DuFresne, representing the Lincoln Companies, discussed factors related to that firm's redevelopment proposal. He said the firm is seeking positive impacts on jobs development and taxes. Their proposal would involve a 45,000 square foot office/service center, including office areas, .light storage and -light assembly. He said the construction cost is expected to have an estimated market value of $1,800,000. Mr. DuFresne said the development would provide space for corporate offices and divisional offices of small to medium size businesses. Mr. Ron Krank, Architect for the Lincoln Companies, described the develop- went proposal. He said the site has good access to both the Crosstown Highway and I-494, with easy access from Highway #7? (Cedar). He said the topography of the site allows a depression of the service area on the west side of the building. Access to the site would be from 66th Street and Cedar Avenue. Commissioner Luettinger noted that the plans presented do not allow for the Liquor Store to be relocated on the south side of 66th Street. Executive Director Cartwright commented on the possibilities for relocation of the Liquor Store to the northeast corner of 66th Street and Cedar Avenue. HRA Meeting -3- March 19, 1984 Commissioner Hassenstab asked how many office areas would be provided, and Mr. Krank responded that there were five areas presented in the concept plan. Mr. Hassenstab asked if there would be reception areas, and whether research and development work would be expected here. Mr. Krank said that there would be areas for both, and the building would be 12-14 feet high with movable parti- tions. Mr. Hassenstab asked about the possibility of buffers besides the row of r pine trees on the west side of the site, and Mr. Krank said the pine trees would remain and that an additional 15 feet would be added to the buffer on the west side of the property for further landscaping. Discussion followed concerning the hours of operation, and Mr. DuFresne said that they would generally be Monday through Friday from 7:30 a.m. to 5:00 p.m., although there may be periodic later uses, but. these would be sporadic. Mr. DuFresne said that he would provide a list of three or four similar types of facilities located nearby for review by HRA members. Chairman Harms asked if the 80-100 parking spaces would be necessary, and Mr.°Krank responded that they would be, calculated on a basis of 4 cars per thousand square feet for office uses and 1 car per thousand square feet for the balance of the building. Commissioner Ludeman asked about the financial impact on the HHA.'s ability to redevelop the area located north of &6th Street. Mr. Cartwright said that money would be available from the sale of land as well as the tax-increment. Mr. DuFresne said that Lincoln Companies may also be interested in buying land and constructing new buildings to the north of 6&th Street, along Cedar. At this-time, Chairman Harms asked for comments from the audience. Mr. Charles Herzog asked about the parking plan and wondered if underground HRA Meeting -4- March 1g, 1984 parking had been considered? Mr. DuFresne responded that underground parking would ~ too costly. Mr. Herzog also asked what the amount of tax would be generated and a need to consider the effect on home values in the neighborhood? Mr. DuFresne said this development would present less impact on the neighborhood than others. Mr. William Bernardi, who operates the service station on 66th Street, asked about the future of the office building located southeast of 66th and cedar? Chairman Harms responded that he believed that building would ~ too expensive for the HRA to buy and redevelop. Mr. Dan Thurber, who lives near 67th Street and 18th Avenue, said he thought there was little forethought given to some building plans, and was concerned about traffic and deliveries outside of regular business hours. He noted concerns about the quality of soil in the area, and said he would like to see the land stay residential in use. Chairman Harms said that single-family development would not allow money to be available for other kinds of redevelopment activities. Cheryl Thurber asked if access would be provided to the double-house at 67th Street and 18th Avenue? Mr. Krank responded that provisions had been made for access to this home. Bill Kelley, who lives near 17th Avenue and 66th Street, said that he likes the idea of owner occupied buildings, and noted that an entertainment center would cost more than it would add to the community. He also noted concerns about traffic and access to the site. 1 Mr. Dave Eisebow said that aloes-key development like the one proposed might be acceptable, but not a bowling alley/lounge. Mr. Bruce Feller, who lives near 67th and 18th Avenue, asked about the HRA Meeting -5- March 19, 1984 potential cost of building a new liquor store. Mr. Ludeman noted that there would have to be a trade-off, with a long-term net increase on the land purchase and tax-increment. Mr. DuFresne said that Lincoln Companies has not yet made any offers for the purchase of the property, and would need a third-party appraisal before it did so. Mr. Cartwright noted that the existing liquor store is larger than needed and the building needs a variety of repairs that would be costly. Mr. Fred Kritzman asked if it would be necessary to widen Cedar Avenue to accommodate development? Mr. DuFresne said he did not believe it necessary to widen the street. Bob Karth, who lives near 65th and 17th Avenue, said that he believes the present traffic control and markings on Cedar Avenue are insufficient. Discussion followed regarding traffic patterns and truck access to the site. • Linda Churchill said that,she would prefer a residential, low-key devel- opment. She also noted that the area does not need a restaurant/lounge development. Mr. Ludeman asked how many housing units had been proposed in the residential plan? Mr. Cartwright noted that the proposal calls for 72-84 cooperative housing units. Chuck Herzog said there was a need to consider plans for the area north of 66th, and he didn't think housing would be appropriate use of this site. Another member of the audience asked if there would be low-cost housing involved and was advised that this was not known at the present time. Judy Garcia, who lives at 67th and 18th, said she would prefer homes rather than anything else on the redevelopment of this property. Clara LeMot, who lives directly west of the existing liquor store, said parking is a problem, and the office building at 6bth and 18th now has about 15 HRA Meeting -6- March 19, 1984 cars using the liquor store lot. Jean Rand said she is against the construction of a bowling alley on this property. Joan Wilmas asked if there would be a limit to the development proposals being considered? She said she is not against the proposal made, but does not like either a bowling alley or high-rise residential building. Jean Rand asked if the site would be used by anyone that would be creating noxious odors? Mr. DuFresne said the leases could prohibit certain offensive odors and other kinds of activities. Chairman Harms noted that lease pro- visions could also be instituted to limit the hours that tru~tt traffic could occur. Chairman Harms thanked the audience"for their comments and said they would be notified of further meetings as the development proposals for the property proceed. Commissioner Luettinger said that he is concerned about development for this property and quest3oriea--if the office/service center proposal would provide enough tax increment for the redevelopment north of 66th Street. 3. Proposed Amendment to the Deferred~Loan Rehabilitation Program to Raise the Maximum Eligible Sncome from $7,500 to $12,500. This item was introduced by Executive Director Cartwright. Commissioner Ludeman asked what the average income is for Richfield? Mr. Bruce Palmborg responded that he believed it is approximately $22,000-$23,000. Motion by Luettinger, second by Helmberger to approve 'the Amendment to the Deferred Loan Rehabilitation Program to raise the maximum income limits from $7,500 to $12,500. All voted aye, motion carried. C HRA Meeting ~ -7- March 1g, 1984 4. Extension of Voluntary Property Acquisition Program for the 12 Month Period Beginning March, 1984 Executive Director Cartwright recommended a one year extension for the voluntary acquisition program. Motion by Hassenstab, second by Helmberger to approve the extension as proposed. All voted aye, motion carried. 5. Consideration of Staff Recommendation to Purchase 6405-35-Lyndale Avenue for Commercial Redevelopment Project (L/H/N Project) Mr. Kraft reported on .the current status of negotiations regarding the 1 purchase of the Opdahl property on Lyndale Avenue, and the interest of at least two developers in considering the redevelopment of this property. Mr. Kraft reported that in recent discussions with the executor of the Opdahl estate, the. executor has reduced the proposed purchase price from $640,000 to $630,0(j0. Commissioner Helmberger asked if information was available concerning the market value the assessor had placed on the property? Mr. Palmborg reported that it is listed at $450,000. Mr. Ludeman asked if the assessor's value is usually approximately 5~ less than the "true" va~.ue of the property. Mr. Palmborg responded that this is true in general, but not necessarily with regard to any single specific property. Chairman Harms asked if it is proposed that the HRA proceed with this purchase without a specific developer or developers' agreement in hand? Mr. Kraft responded that there is an indication of development interest in the property. Mr. Harms asked if it is being recommended that the HRA proceed without a developer/development agreement? Mr. Kraft said that it is recommended because the property is available, and that tenant vacancies would HRA Meeting ~_ help keep down the potential costs of relocation. March 19, 1984 Chairman Harms asked how long the property has been on the market? Mr. Kraft said it has been available since last fall. Chairman Harms said he didn't believe the HRA should rush the purchase of the property. Mr. Chuck DuFresne, representing the Lincoln Companies, said they would have a proposal for redevelopment of this property within approximately two weeks. Mr. Mark Ahlquist presented a tentative development proposal including retail and office redevelopment. In response to a question from Chairman Harms regarding the length of time necessary to process the proposal, Mr. Ahlquist said additional information could be available in three to four weeks. Chairman Harms said he thought the matter should be tabled until the development proposals are more firm. Attorney Clayton LeFevere said the availability of industrial revenue lxjnd financing is uncertain and both proposals are contingent on that form of financing. It would be speculative to assume that the financing would be available. Mr. DuFresne said that the Lincoln Companies did not expect to seek industrial revenue bonds to finance the project. Motion by Hassenstab, second by Luettinger to table this matter until the April meeting of the HRA. All voted aye, motion carried. Commissioner Ludeman said he doesn't like the $630,000 purchase price, believing that it is too high. 6. Consideration of Staff Proposal to Purchase g10 West 66th Street and 1016 West 66th Street for Redevelopment and Resale to Moderate Income Families Under the Voluntary Acquisition Program. 1 HRA Meeting -9- March 19, 1984 Mr. Kraft gave a report on the proposed purchase of g10 W. 66th Street and 1016 W. 66th Street and the proposed Vo-Tech construction project. Commissioner Ludeman asked how many units the Vo-Tech school could take on in any one year? Mr. Palmborg responded that in the past this has been generally two, but staff could check to see what the capability is. Mr. Ludeman suggested that the HRA proceed with the purchase of g10 West 66th Street. Executive Director Cartwright said that more CDBG money has been obtained to help finance this residential redevelopment project. Mrs. Betty Carr said that Mr. Nordstrom, the owner of the property, has . rented it out to several people and that the property is in bad shape. Commissioner Ludeman said that he believed g10 W. 66th Street should be the highest priority. Commissioner Luettinger asked. if it would be appropriate combine this property with g01-903 Rae Drive property? Motion by Ludeman, second by Luettinger to authorize the purchase of g10 W. 66th Street in an amount not to exceed $67,500, and that the staff }~ directed to negotiate for the purchase of g01-g03 Rae Drive, setting aside for the time being the purchase of 1016 W. 66th Street. All voted aye, motion carried. 7. Report from the Executive Director Mr. Cartwright asked HRA members keep Monday, March 26th free for a meeting concerning the Market Plaza development. It was suggested that the time - of 8:00 p.m. be set for a meeting of the HRA. Mr. Cartwright also noted a meeting scheduled for April 2, at 7:00 p.m. involving the City Council, Planning Commission, the HRA and Community Services Commission, regarding the Legion Lake park development and the Portland Avenue HRA Meeting -10- March 19, 1984. housing development {PADA). 8. Claims and Payroll Motion by Ludeman, second by Luettinger to approve claims and payroll. SUMMIT STATE BA1~{ Checks 5168/5345 $865,536.65 All voted aye, motion carried. ' 9. Adjournment Hassenstab moved, second by Luettinger to adjourn the meeting. The meeting was adjourned at 10:40 p.m. Date Approved: April 16, 1984 • '~ C/ ' oan Helmberger Secretary Thomas ~ Harms Chairman [1