03-26-1984
I~(WSING & REDEVII.,OPMENT AUTHORITY
City of Richfield, Minnesota
Special Meeting
March 26, 1884
8:00 P.M.
Chairman Tom Harms called the HRA meeting to order at 8:00 P.M. He noted
that this was a special meeting called by the HRA to be held concurrent with
the City .Council meeting, to consider the proposed redevelopment~of property
northwest of 66th and Lyndale.
HRA Commissioners present were Helmberger, Ludeman, Luettinger, Hassenstab,
and Harms.
Atttorney Clayton LeFevere said the following actions are being requested
• the City Council and HR.A:
A) Consideration of a devolopment agreement. It is recommended for
approval in substantially the form being presented this evening;
B) An HRA resolution which would authorize eminent domain proceedings,
if necessary, for acquisition of the Heilicher property; and
C) A resolution for the City -Council which would authorize eminent domain
proceedings by the HRA for acquisition of the Heilicher property.
Mr. LeFevere noted that negotiations are proceeding for the acquisition of
the property and eminent domain proceedings would commence only if the negot-
iations do not prove to be fruitful.
Attorney LeFevere proceeded to review the pertinent aspects of the develop-
ment agreement with City Council members and the Housing and Redevelopment
authority. He noted the developer of the project is the Market Plaza
Corporation which carries the backing and guarantee of the Derrick Land Company.
Co-developers far the project include the Knutson Construction Company for the
condominium project and E. J. Plesko and Associates for the apartment and
HRA/City Council Meeting -Z- March 26, 198Q.
commercial development.
Mr. LeFevere said that the City of Richfield is a party to the agreement in
addition to the Housing and Redevelopment Authority, because of the connection
to various public improvements that will be required to serve the development
and other aspects of the project. He also noted that issuance of the tax-
increment bonds for the project would be performed by the City.
Mr. LeFevere proceeded to review the various exhibits and definitions
associated with the development agreement. He noted there is a provision for
a 3(3eday "sudden-death" termination for the project if the co-developers do not
sign the development agr®ement within 30 days after it has been approved by the
City and the HRA. He also noted that the agreement requires construction and
financial commitments by the developer to provide assurances that the developm
went will proceed. He f~,irther noted the City must: provide the property for the
development; the public financing necessary for the property acquisition;
various other project costs; or, the developer can back out of the project.
Mr. LeFevere also noted that a closing on the HRA sale of the property to
the developer will occur only after the approval of all project plans by the
HRA. He further noted the HRA is only required to pay up to a certain maximum
amount for property acxuisition and other uses.
Mr. LeFevere expressed his appreciation for the work of John Dean and David
Sellergren for their many hours in drafting the development agreement.
Commissioner Hassenstab expressed his appreciation to HRA Chairman Tom Harms
for his involvement in seeing the project proceed.
Mr. Dick Krier, representing Market Plaza Corporation, introduced persons
present who are involved in the project. He noted that since the last
___presentation of the project to the City Council and HRA, certain issues had been
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HRA/City Council Meeting -4- March 26, 1983
asked if tie entrance to the parking lot will be designed to accommodate the
level of traffic making these movements: Mr. Anderson said that it would.
Mr. Russ Hellickson, resident of Lake Shore Drive Condominiums, asked about
provisions for traffic control in this vicinity to enhance pedestrian
crossings. Mr. Howard Carlson, also of Lake Shore Drive Condominiums, said the
signals at Rae Drive have been adjusted by Hennepin County, but still ,don't
have a long enough phase for pedestrians crossing the street. Mr. Krier
described the walkway system provided for in the development.
Mr. LeFevere asked whether the condominium component would have brick facing
similar to that used by Lake Shore Drive Condominiums. Mr. Krier responded
that it would. _
Mr. Larry Wozniczka, Wentworth Avenue South, asked if it might be feasible
to have a pedestrian crossing with a landing on the median at Graham Avenue
similar to the one provided "north of 66th along Nicollet? He said he thought
this would 'help pedestrian crossings. Mr. Wozniczka also asked about the
financing feasibility of the project. Mr. LeFevere said that the. financing
proformas prepared for the development were all in order. Mr. Wozniczka also
asked..about the additional costs of service to the development for fire and
police services and asked whether this was taken into account in considering
the project? Staff said there was an analysis of the additional costs of
service for the development and there would be little, 3.f any, net change in
the level of service that would need to be provided by the City.
Commissioner Luettinger noted that some buildings have a problem with
discoloring of the brick less than 5 years after construction. He said that
since this is a very. expensive problem to correct, it should be looked at
HRA/City Council Meeting -5- March 26, 1984
during the planning phase.
Mr. Harms said that he believes this project has received close scrutiny by
City and HRA staff. He said he likes the project and thinks that it will work
in Richfield. He~further noted that significant safeguards have been built
into the development agreement to protect the City's interests as the
development proceeds.
At this point, the City Council took action on the developers' agreement.
Motion by Ludeman, second by Kirsch, to grant City~Council approval of the
development agreement and to authorize its execution by the appropriate City
officials in substantially the form as presented.
All voted aye, motion carried.
.Motion by Hassenstab, second by Luettinger to grant approval and authorize
execution by the appropriate officials of the Richfield Housing and Redevelop-
~nt Authority of the development agreement, in substantially the form as
presented this evening.
All voted'aye,~.motion carried.
Motion by Hassenstab, seconded by Ludeman 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. 242
RESOLUTION AUTHORIZIlVG THE ACQUISITION OF CERTAIN
REAL PR~ERTY BX~ EMINENT DOMAIlV PROCEEDINGS
Poll of votes: Ayes - Helmberger, Ludeman, Luettinger, Hassenstab and Harms.
Nays - None. Motion Carried. This resolution appears as.Reslution No. 2q2 in
HRA Resolution Book No. 3•
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