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04-16-1984HOUSING & REDEVII~OPMENT AUTHORITY City of Richfield, Minnesota April 16, 1984 7:30 P.M. The meeting was called to order by Chairman Tom Harms at 7:35 P.M. Commissioners present were Helmberger, Luettinger, Harms and Hassenstab who arrived at 8:00 p.m: (C~nnissioner Ludeman was absent.) Other persons present at the meeting were HRA Executive Director John Cartwright, Assistant City Attorney John Dean, Community Development Director Dennis Kraft and Director of Administrative Services Ron Rankin. Approval of Minutes Chairman Harms noted that his name on the signture line of the official minutes should be corrected to read Thomas E. Harms. Luettinger moved, Helmberger seconded, to approve minutes as corrected of a Special Meeting March 6, 1984; Regular Meeting of March 19, 1984; Special Meeting of March 26, 1984; and Special Meeting of April 2, 1984• All voted aye, motion carried. 1. Public Hearing on the Disposition of Property at the Market Plaza Site in the L/H/N Redevelopment Project Area (Property Bounded by Lyndale Avenue, 66th Street, Graham Avenue and 65th Street). Chairman Harms opened the Public Hearing. No one came forward to speak. Motion by Helmberger, seconded by Luettinger, to close the hearing. All voted aye, motion carried. Motion by Helmberger, seconded by Luettinger that the following resolution be adopted; that it be spread in the resolution book and that it be ode HRA Meeting Minutes -2- a part of these minutes: RESOLUTION N0. 243 RESOLUTION AUTHORIZING THE SALE OF LAND F+OR REDEVELOPMENT Poll of votes: Ayes - Helmberger, Luettinger, and Harms. Nays - None. Absent - Ludeman and.Hassenstab. Motion carried. This resolution appears as Resolution No. 243 in Resolution Book No. 3. Opportunity for Citizens to Address the HRA . ('This item was taken up out of order on the agenda) Mr. Patzke, representing the Foxboro Corporation, said they are still very interested in making a redevelopment proposal for the City-owned property at 66th and Cedar. He said their original financing arrangements hit a snag, but other arrangements have been made, and they now anticipate submitting plans for a redevelopment proposal to the HRA in approximately one month. Mr. Michael Bjerkesett, 6925 Thomas Avenue, Executive Director of the National Handicapped Housing Institute, Inc., said that he has talked to staff about acquisition of property for a handicapped housing development in Rich- field. He told the HRA -t3~at organizations can apply for federal funds to 1 provide assisted housing for the physically disabled. Mr. Bjerkesett said that HUD requires that applications must be submitted by the end of April. He noted that they are late, but had targeted another city for a project, and had to change. The organization would like support from Richfield, and several sites had been reviewed after referral from staff. He particularly noted sites at 77th and Emerson and 77th and Colfax as being promising for this development. April 16, 1984 Mr. Bjerkesett said they would propose about 35 units of housing. HRA Meeting Minutes -3- April 16, 1884 Although developed by a non-profit corporation, the property would be taxable. He said they would like a resolution of support from the HRA, even an indication of general support of the concept for such a development. He further noted that the 202 program provides for reduced financing and rent subsidies for owners and tenants in the development. Mr. Bruce Palmborg, of the Community Development staff, explained the sites that he had reviewed with Mr. Bjerkesett. Mr. Bjerkesett said their proposal would be 35 units of housing for physically disabled adults. He said typically a development has 70% one bedroom units and 309 two bedroom units. Chairman Harms asked if they would consider a scattered site development for accessible homes. Mr. Bjerlesett said this would be a good idea, but the main thrust is development of multi family, and at least 24 u~.ts are needed for-the project to be managed economically. Chairman Harms said he wondered whether the City could make a firm commitment to deliver on such a project, although he said he supports the public purpose behind the project. Mr. Bjerkesett said their group is also interested in some tax-exempt property, but the property could not ~ purchased, and he wondered if the City would still be interested in supporting development under that kind of arrangement. Discussion followed to clarify the type of support or assistance being sought from the HRA. Chairman Harms said he could support a motion that would direct the drafting of a motion of support by staff, without a binding commitment on the part of the HRA. HRA Meeting Minutes -4- April 16, 1984 Mr. Bjerkesett noted that his organization had just completed a project in Bloomington, and that 75~ of its residents had previously lived in Bloomington. Motion by Luettinger, seconded by Helmberger to direct staff to prepare an appropriate motion of general support for the project. All voted aye, motion carried. Mr. Don Cederholm, 6214 5~ Avenue South, said that at an earlier meeting the Mayor said notices would be sent out to residents of the Portland Avenue Development Area, and he wondered why item #2 is on the agenda since no notices had been sent out. Chairman Harms said that the purpose of tonight's meeting was to receive an interim staff report on the latest information now available and the HRA would not ~ taking official action on the PADA project tonight. Residents would be notified of meetings when decisions on the project would be made. Mr. Cederholm said people in his neighborhood are not in favor of the project. 2. Consideration of an Informational Report Concerning MHFA Financed Housing Proposal (the Portland Avenue Development Area - PADA) (Commissioner Hassenstab arrived at this time) Community Development Director Dennis Kraft reported on the staff work which had been done to investigate alternate sites for housing which could utilize the bonding authority granted by MHFA. He also reported on possibilities for changing the density of the project, and other locations for housing which had-been examined by staff. Mr. Kraft noted that some flexibility in location is available under the bonding authority, but there is not flexibility in the local contribution HRA Meeting Minutes -5- required for the project ($1.2 million). April 16, 1984 Mr. Kraft said there would be some problems in maintaining this level of contribution if other sites are used, because a portion of the contribution involves the value of land previously acquired by the HRA. Mr. Kraft proceeded to review the pros and cons of the various alternative sites which had been identified by staff. He noted that the Portland Avenue site has, overall, an advantage in desirable criteria for a housing project. Mr. Kraft noted that staff had also looked at another location on Legion Lake, near 66th Street, but said there are potential conflicts and problems associ- ated with use of this site. Discussion followed concerning the new alternative of assembling a site at 66th and Rae Drive, which might be used in combination with the Portland Avenue site. Mr. Kraft also reported that staff had reviewed the possibility of the bonding authority being used to finance a prog~ram~to "roll-over" existing housing. He noted that Richfield would still need to come up with the 29% local contribution, which could be difficult under this type of program. He further noted that the local subsidy per unit would amount to approximately $5,000/unit under the PADA project, and as high as $22,500/unit under a scattered site "roll-over" program. Mr. Kraft also commeinted on Metropolitan Council Policy #39~ regarding housing performance and its effect on ratings for park and open space develop- went grant applications. He noted that Richfield has been very successful in obtaining grants in the past, partly due to its successful housing performance. Chairman Harms asked if a rezoning would be required for PADA, and Mr. Kraft said rezoning would be required from single-family to multi-family. HRA Meeting Minutes -6- April 16, 1884 Hassenstab asked if the balance of the Legion Lake area could be left as single- family zoning, and Mr. Kraft said that it would. Chairman Harms asked if it would be possible for the HRA to just do the Rae Drive portion of the project and return the balance of the bonding authority to MHFA. Mr. Kraft said that this is apparently possible to do. Chairman Harms said it is necessary to hear back on the study for park uses, and the impact park plans would have on the housing project. Commissioner Helmberger asked how Richfield rates on standards for park- land area considering its populationo Mro Kraft said Richfield probably rates a little bit below the accepted standards. Commissioner Helmberger asked if there have been studies regarding the use of parks in Richfield - that is, whether they are over-or under-used. Mr. Kraft said. that some appear to be under-used, especially as urban area parks, although they do receive slot of use for organized program activities. Mrs. Helmberger said that she doesn't think Richfield's parks are over- used. She thought it would be good to get a better idea of the accepted standards, and the level of use in Richfield. Commissioner Luettinger said he thinks Richfield is pretty close to the standard, ~cause~when the City's population was much higher, Richfield was just under the accepted standard for park space, Chairman Harms said that if PADA is going to proceed, it is necessary to get the park information back to the appropriate groups. He said if PADA does not proceed, Rae Drive seems to be the best partial alternative. Commissioner Luettinger said he'agreed. Commissioner Helmberger asked about the use of the lots along Portland if PADA does not proceed, and whether these would be sold to the City for parkland use. 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' pue : auoZe ~.oaCo.zd yQyd aua. : uot~.eu~gmoo yQ~d/an~sQ ae~ :sMOtjo~ se aoua.za~a,zd ~~so~,zd a u~ s~.oa~o.zd acp. ~o uo~~.entena ue u~~M paaooad oa. ~~e~.s ~.oa.z-~p o~ 'sm.zeH ~q papuooas 'ge~.suasseH ~q uo-~~.oW • t-~ounoa ~.~a att. pue sp,zeoq ~,zos-~npe ~.~o aua. mo~z~ ao-~npe u~it~ sa~~.-~.zo~.zd asat~. ~u~~omo.zd u~ d~s.zapeat axq. ptnous ~ qua. ~.u~nou~. au pies aH • quote an-~.zQ ae~ `~j~.seT pue : quote ryQ~d uay~ :~.~suap ,zaMOj a ~.e '~.oaCo.zd ~Q~d/an~.zQ ae~ pau~gmoo qua. :~.~.zo~.zd ~MOtto~ qua. uodn paseq sa~.~s qua. ~o uo~~.enjena ue ~oddns d23f-I auk. ~eu~. pa~.sa~ns pue sno~~.neo ~T.zano ~aq seM y~ act. ~.u~noua. au pies gea.suasseH ~zauo~ss~®o~ • a~.aj dmoo a,ze ~u~snoy pue ~.uamdojanap xzed .zoo sa-Fpri~s Teu~~ jje j~~.un ~.~zado.zd att. daa~ off. a~.e~,zdo.zdde aq pTnoM ~.~ pus 'pa~SeZap aq ~.sn~ pjnoM ~oa~o,zd yQ~d auk. ~.eq~. 1786 `9L TT~d~ -L- s~nuF'W ~F~-~W ddEI HRA Meeting Minutes -8- April 16, 1984 others noted that there have been reductions in staff over the last several years. Mr. Larry Wozniczka, Wentworth Avenue, said that he was awestruck by the size of the HRA and Planning staff which was present at the joint meeting held April ?mod. He said the staff is a burden on the community. Chairman Harms responded that, in his opinion, staff reductions could be penny-wise and pound foolish. He said if Richfield does not actively seek improvements, through staff work, it could result in decay and decline in the community. Mr. Harms noted the Godfather Block redevelopment project as a key example of staff's work in promoting redevelopment of the community. Mr. Wozniczka said he believed that the rest of the City is being burdened by the redevelopment project, and only the staff benefits. He said that taxes are going up, and it makes it harder for people to improve their property and keep the City in good shape. Chairman Harms said he did not believe it appropriate at this meeting to get into a lengthy discussion of the arrangements for the Godfather Block redevelopment, which has previously been approved. Betty Carr, Lynwood Blvd, said the HRA acquisition on Rae Drive would leave three houses on that street. She suggested that the HRA contact the people in the three remaining homes to see if they wish to sell, too. Chairman Harms said that it would be appropriate for staff to contact those people, and make them aware of the possible project on Rae Drive. Commissioner Hassenstab said that he wanted to go on record to express his appreciation of the apartment study which had been done by staff (HRA Memo #14). HRA Meeting Minutes -9- April 16, 1984 3. Claims and Payrolls Motion by Luettinger, seconded by Hassenstab to approve Claims and Payrolls. SUN~lIT STATE BAIL Checks 51.84/5191, 5710/5736 $771,205.31 Mrs. Helmberger asked about the deposit which had been required to be made with Hennepin County for proceeding with the acquisition of the Strom property. All voted aye, motion carried . 4. Adjournment Motion by Hassenstab, seconded by Luettinger to adjourn the meeting. 1 All voted aye, motion carried . The HRA meeting was adjourned at 8:45 P.M. Date Approved: May 21, 1984 Y~/! Joan Helmberger Secretary G' (iU" Thomas E. Harms Chairman