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05-21-1984HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD, MINNESOTA REGULAR MEETING MAY 21, 1984 7:3o P.M. Chairman Tom Harms called the meeting to order at 7:30 P.M.' Commissioners Present: Helmberger, Luettinger and Chairman Harms. (Ludeman arrived late, and Hassenstab was absent). Approval of minutes of the regularly scheduled meeting of April 16, 1984. Motion by Luettinger, second by Helmberger to approve the HRA minutes of April 16, 1984. All voted aye. Motion carried. 1. Presentation by the Housing Alliance Or anization on Alternat ve Care ousing. Community Development Director Dennis Kraft introduced the representatives from the Housing Alliance. Rosemary Dineen and her associate discussed the background of the Housing Alliance and the concept of congregate housing. They said their organization serves as a facilitator of housing projects for older people. The Housing Alliance has worked on a 130-unit project in Roseville, for older people, which is sponsored by 7 Lutheran churches. In addition, a project is underway in Shakopee. It was noted that the Housing Alliance looks for a local group to provide project leadership, and that grants have been provided by two local companies to help a housing project in the first- ring suburbs. Local groups which serve in a leader capacity select a contractor, a care provider, and management for the project, while the Housing Alliance assists with marketing. Commissioner Luettinger asked about whether Shakopee had other senior housing, and what the overall need is in the cities for additional housing, based on the waiting lists for existing projects. Mrs. Dineen said that the Housing Alliance has studied metropolitan data, and knows that there is a need for alternative housing for older people. She said most occupants of such housing are over 75 years old, and the Housing Alliance objective is to assist in creating a diversity of housing opportunities. She noted that 10-40~ of the people presently in nursing homes donut have an absolute need to be there. She also said that while shelter needs are constant through a persons lifetime, medical and social service needs increase. She said Housing Alliance projects are also geared toward an «equity exchange" system, depending on the average cost of homes in the immediate area. The organization also works with the local sponsor to assist in the design and amenities of the project in a way that will meet local needs. Discussion followed concerning how the Shakopee housing project evolved. Chairman Harms noted that the HRA has been working hard to provide alternative housing in Richfield for older people, and the problem is finding open land on which to build such projects. He noted that the City may have land available on West 66th Street that could be used for a smaller housing project. Mrs. Dineen reviewed a design for a project to aecomodate 25 residents, with a large communal space and small individual living spaces. She further noted that the organization will be building a prototype development in the inner-ring suburbs of the Twin Cities. Discussion followed concerning potential sites for such a project in the City of Richfield, and it was suggested that staff work with representatives from the Housing~Alliance to review potential sites in the City. Executive Director Cartwright said that the staff would do this. Commissioner Luettinger noted the need to work on affordable housing for first-time home buyers, and suggested that if possible, this type of program be linked to a project for housing of older people. 2. Resolution Authorizing Acquisition of Property at 910 West 66t tree. . This item was introduced by Executive Director Cartwright, who said the HRA offer to purchase the property has been accepted by the owner, in an amount previously authorized by the HRA. Motion by Helmberger, second by Luettinger, to adopt the resolution as presented. All voted aye. Motion carried. (See Addendum) (At this time, the HRA skipped item number 3, in order to wait for Commissioner Ludeman to be present for the discussion.) 4. Report of Planning Commission Actions to Date on Market Plaza Project. This item was introduced by Executive Director Cartwright. Community Development Director Dennis Kraft reported on increased efforts to keep both the Planning Commission and HRA briefed on each others work relative to the Market Plaza Project and other matters. Mr. Kraft reported that the Market Plaza plan was generally accepted by the Planning Commission, and the project is expected to be basically the same, with the substitution of Arkell Development Corporation for the Knutson Company. He said the Planning Commission approved the plan unit development with certain stipulations. It was also noted that the Planning Commission has requested that the P.U.D. ordinance be revised in order to better apply to this type of mixed-use development. 1 Mr. Kraft specifically noted the Planning Commissions interest in trying to get the building set back farther from 65th Street. Chairman Harms said he appreciates the effort to improve communications, and requested an update on the proposal to locate an Arby~s restaurant in the L/H/N area. Executive Director Cartwright said there is a pending proposal to put an Arby~s restaurant in the northwest corner of the K-Mart parking lot, near the intersection of 65th Street and Lyndale Avenue. Mr. Kraft noted that the restaurant proposal is not presently consistent with the L/H/N plans and parking standards. He said it will be recommended that in order to facilitate further staff study, the Planning Commission open and then continue the public hearing for its consideration of this proposal. Motion by Harms, second by Luettinger, that the HRA go on record in opposition to the proposed location of an Arby's restaurant near the intersection of 65th Street and Lyndale, due to the inconsistency of such a development with the long-term planning goals of the L/HIN area. All voted aye. Motion carried. 5. Continuin Resolution to Allow Commissioner Helmberger to Atten Various on erences 19 -19 5. Luettinger moved, Harms seconded a motion to adopt the resolution as presented . (See Addendum) Commissioner Helmberger noted that she does not necessarily plan to attend all of the conferences listed in the background material, but wanted to keep the HRA aware of her involvement in NAHRO, and the conference schedule. All voted aye. Motion carried. 7. Rae Drive-66th Street Project Report. Executive Director Cartwright called on Dennis Kraft to present the report on this item. Kraft reported that staff has done further work on the feasibility of a housing project at Rae Drive and 66th Street under the auspices of the bonding authority granted by the Minnesota Housing Finance Agency. He said staff has contacted adjacent property owners~to make them aware of the plans, as well as the owner of adjacent rental properties. Kraft said it is possible to use the bonding authority from MHFA if there is a 29.82 local match. He further noted that CDBG funds can be used for this purpose, although there is a requirement that 51~ of the units benefit people of low and moderate income. Kraft also said it is staff's opinion that, because of the lower amount of bonds that would be issued for such a development, it would be best to issue the bonds with some other agency in order to keep down the costs of issuance. Kraft also noted that CDBG funds from Year IX not spent in 1984 would go into a Hennepin County pool to be used by other cities. Kraft said the overall objective in a housing project of this type is for the City to be able to provide the housing with a minimum subsidy, and to maximize a later recovery of the subsidy for the HRA. Commissioner Helmberger asked what the likelihood is of a developer making a contribution for such a project. Bruce Palmborg said it is not presently known for certain, but such contributions have been made on other projects. He noted that if the project would not be feasible for low and moderate income people, that the HRA would likely have to consider market rate housing for the site. (Commissinner Ludeman arrived at 8:40 P.M.) Chairman Harms asked what additional property would be purchased, and staff responded that the property at 1016 West 66th would be purchased, which is now rental housing. Discussion followed regarding the proposed purchase of additional property to facilitate the project, the need to pay relocation benefits to tenants, and other aspects of the project. Kraft said there is a need to know if the HRA wishes to proceed with the project. It is believed that by proceeding, the HRA can set a favorable pattern for other redevelopment in the immediate area. Commissioner Ludeman said that he had reviewed the properties in the vicinity, and does not think prices will go up soon. He also has a concern about the density of the project, and asked what density is needed to make the project economically feasible. He said he has a concern about placing 10 housing units on the property and believes more than 5-6 units makes it appear too crowded. Bruce Palmborg said the proposed project would have a density of 8 units per acre, approximately 1/2 the density of the Coach Homes development to the west. He said it is necessary for the HRA to provide direction on the size of the project in order for staff to proceed. Chairman Harms said he has a concern about buying the property before the project is firmed-up, and would prefer to have the purchase postponed, if possible. Discussion followed concerning the feasibility of the project, and the potential financial risk to the HRA if the project is not feasible and there is a resulting need to sell for private development. Commissioners stated that they believed that there is a need to have specific proposals for the project. - 2-A Addendum-- Motion by Helmberger, 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 these minutes: RESOLUTION N0. 244 RESOLUTION AUTHORIZING THE ACQUISITION OF 910 TdEST 66TH STREET A~1 voted aye. Motion carried. This resolution appears as Resolution No. 244 in Resolution Book No. 3. Executive Director Cartwright asked if the HRA wished to provide further guidance on the density of the project, and Chairman Harms and Commissioner Helmberger said that the density did not pose a specific difficulty to them. Commissioner Ludeman asked who would sell the houses presently under construction by the vo-tech. Staff said that the HRA would sell them. Ludeman said he would like those homes sold first, and then the other properties purchased. Commissioner Luettinger asked about increasing the height of units on the corner of Rae Drive and 66th Street, and asked if that idea could be studied further by staff. Motion by Ludeman that the HRA not purchase additional property until there is a more specific proposal prepared for housing projects. Motion died for lack of a second. Discussion followed concerning how the housing development might be made to better tie in visually to the Coach Homes development to the west. Staff said there is a desire to have them blend together, at least for the immediately adjacent properties. The HRA asked staff to study some of the ideas discussed this evening and report to the HRA at a later meeting. 3. Update on 0 dahl Property Project (Located at Southeast Corner o t reet & Lynda a ve. . (This item was taken out of sequence). Executive Director Cartwright called on Mark Ahlquist and his associate, Don Hedquist, to present plans for redevelopment of the Opdahl property. Mr. Ahlquist reviewed a plan for the construction of a 3-story building with underground parking for the building tenants. He noted there would be surface parking provided for visitors and shoppers. He said the proposed development would be for mixed-use, including retail, office, and residential spaces. Discussion followed concerning the mixed-use development, and whether similar buildings had been built in other cities. Mr. Ahlquist said that the financing for the project would work if the developer is provided with a clear site and industrial revenue bond financing. He said they. would like some indication of interest in the project from the HRA in order to proceed further. He said proposed cost of the building would be $2-2.5 million for the lower 2 floors, plus the underground parking, and that an additional $1 million would be necessary for a top floor of residential space. Chairman Harms said there is a need for a development guarantee on the taxes. Commissioner Ludeman asked if Ahlquist could purchase the property, and Mr. Ahlquist said that this adds substantial additional cost, and there would be a need for some other write- down on the project. Commissioner Helmberger asked how quickly the project could proceed, and Mr. Ahlquist responded that detailed drawings could be prepared by fall of this year. Chairman Harms said that he likes the concept for the redevelopment plan, and Commissioners Ludeman and Helmberger agreed that the concept is appealing. Discussion followed regarding the potential purchase of the Opdahl property. Commissioner Ludeman suggested that Mr. Ahlquist talk to staff and study the feasibility of the project, and also the likely purchase price for a private purchase of the Opdahi property. Mr. Ahlquist said he estimates the land to be worth $250- 300,000, but doesn't know if the owners would come down from their price. 6. Compensation for Housing and Redevelopment Authority Commissioners. (This item was taken up out of sequence). Executive Director Cartwright noted that legislation was recently adopted which would allow an increase in the per diem amount paid to HRA Commissioners. Commissioner Ludeman noted that the HRA has not had an increase in pay since it was First started, and that he would support the increase. Motion by Ludeman, second by Harms, to increase the per diem rate paid to HRA Commissioners from $25 to $35, to be effective June 1, 1984. Commissioner Luettinger said he is opposed to the increase, and thinks that even $25 is too high since other City boards and commissions function without payment. Commissioners Helmberger, Ludeman, and Harms voted "aye". Commissioner Luettinger voted "no". Motion carried. 8. Executive Director's Report Executive Director Cartwright read correspondence from the Foxboro Corporation which indicated that the firm had found it not practical to proceed with a proposed redevelopment of the Cedar Avenue Liquor Store property until a price is set by the City for the property. Mr. Cartwright also noted that the proposed bowling alley project for the site has been withdrawn by the developers. Attorney Clayton LeFevere noted that if property north of 66th Street is not to be directly involved in this redevelopment project, then the HRA could be more specific in setting a -3-A Addendum-- Motion by Luettinger, second by Harms 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. 245 RESOLUTION APPROVING ATTENDANCE OF JOAN HEI.MBERGER AT CERTAIN NAHRO CONFERENCES AND WORKSHOPS AND PROVIDING FUNDING FOR SAME All voted aye. Motion carried. This resolution appears as Resolution No. 245 in resolution Book No. 3. 1 price, and potentially have the price relate to the extent of development that would be built on the property. This would assist the HRA through increased t.ax increment to be used north of 66th Street. Chairman Harms suggested that staff review potential prices for the property and later review those with the HRA. He also said the City should try to determine the fair market value of the property. Attorney LeFevere reviewed the status of acquisitions on the "Godfather Block", and noted that the first court session concerning the quick-take of the Heilicher property was held last week. He said the judge has continued this matter approximately 1 month, in order for the parties to try to work out a possession date for the property. 9. Claims and Payrolls. Motion by Ludeman, seconded by Luettinger to approve claims and payrolls. All voted aye. Motion carried. 1 [1 The meeting of the Housing and Redevelopment Authority was adjourned at 9 : ~+5 P . M. Date Approved : June 18, 1984 -~~l~r~'~, l/' J n He arberger Secretary Thomas E. arms Chairman