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06-18-1984HOUSING AND REDEVELOPMENT AUTHORITY City of Richfield, Minnesota June 18, 1984 MEMBERS PRESENT: Hassenstab, Helmberger, Harms. STAFF PRESENT: Executive Director John Assistant City Attorney Administrative Services Rankin; Housing & Redev~ Bruce Palmborg. Ludeman, Luettinger, Cartwright; John Dean; Director Ron ~lopment Coordinator Chairman Harms called the meeting to order at 7:30 p.m. P RO OF I T M/Luettinger, SjLudeman, to approve the minutes of the Special HRA. City Council, Community Services Commission and Planning ommiss on meetin of A r 1 30 984' S ecal Ct Council/HRA concurrent meetin of ri 30 984• ecial it Counci R concurren meeting o ay 1 984. and a regu ar HR meetin of Mav 21, 1984. Motion carried 5-0. OPAOR U I Y FO CITIZENS 0 ADDRES E RA (No one wished to speak). IDE ATIO 0 AF M IO T Q IR 0 66TH STREET AND 901-03 RAE DRIVE FOR AFFORDABLE HOUSING REDEVELOPMENT. Executive Director Cartwright presented the staff report recom- mending the purchase of 1016 W. 66th Stret and 901-02 Rae Drive. He discussed the use of the current Community Development Block Grant (CDBG) allocation for housing redevelopment and said a number of actions are required in order to use the CDBG funds in a timely manner. Mr. Cartwright said cities not spending CDBG funds may have the money reallocated to a pool for use by other cities. Bruce Palmborg, Housing & Redevelopment Coordinator, introduced George Branton, of George Branton Construction, and Nancy Phillips, of Duraps Inc., two of the developers who responded to staff questions about the redevelopment potential of this area. Executive Director Cartwright described various options for housing at Rae Drive and 66th Street, including the acquisition of 1016 W. 66th Street and 901-03 Rae Drive for the development of 8 units of housing by a private developer; acquisition of 901- 03 Rae Drive in combination with 910 W. 66th Street, removal of existing structures and contracting with a private developer to construct 4 units of housing for families; acquisition of only the vacant lot at 1016 W. 66th Street and development of 2 units of housing by a private developer and the balance of CDBG funds to acquire selected scattered site housing throughout the HRA Meeting Minutes -2- community. June 18, 1984 Mr. Cartwright said the staff recommendation concerning this matter for action by the HRA is as follows: 1. Authorize acquisition of 1016 W. 66th Street. 2. Authorize negotiations for 901-03 Rae Drive. 3. Authorize a developer selection process, and work to secure alternative financing for 920 and 924 W. 66th Street. 4. To continue evaluating uses of the housing mortgage revenue bond authority. 5. To proceed with the project as proposed for the Rae Drive/66th Street area, or scattered site housing. Chairman Harms asked about the amount of CDBG funds available for housing activities, and Bruce Palmborg described the estimates develo.p.ed by staff for the acquisition of 1016 W. 66th Street, 901-03 Rae Drive, the construction of driveways and other site improvements, and relocation costs. These estimates total approximately $222,500. Ludeman suggested the possibility of looking at redeveloping 910 and 901--03 Rae Drive and to ignore the redevelopment of 1016 W. 66th Street for the present time. He said the building at 1016 W. 66th Street is in good condition and it would be more appro- priate to pursue scatted site housing opportunities at other locations. Mr. Ed Burkhardt, 921 Rae Drive, said he thought the purchase of 901-03 Rae Drive would take 2 units of existing satisfactory housing and merely replace it with 2 newer units of housing. He questioned whether this was an appropriate expenditure of funds. Bruce Palmborg said 901-03 Rae Drive is in fair to marginal condition. Staff is also recommending actions that hopefully will stabilize land use in the immediate area due to the proximity of commercial areas to the east. Discussion followed regarding various alternatives available for redeveloping 901-03 Rae Drive and 910 Rae Drive. Hassenstab summarized the matters before the HRA, saying-that $250,000 of CDBG funds need to be spent for housing; it is necessary to get 901-03 Rae Drive upgraded; 4 units of housing could be placed on the property at 1016 W. 66th Street, and a balance of funds could still be available to purchase scattered site housing. 1 George Branton, Branton Construction, said he thought the condition of housing at 901-03 Rae Drive was not good, and that the area was better suited for housing for couples than for families. ° HRA Meeting Minutes -3- June 18, 1884 M/Harms, S/Hassenstab, that the followin resolution be ado ted p RESOLUTION N0. 246 that it be spread in the. resolution book__a_nd_that i be made a art of these minu es and to ur her direct staf to evaluate what wou be necessar o u rade he ex s n dwe n a 01- 03 ae rive,-and to direct staff to determ ne the I kely cost of scattered site housing redevelo went at other locations . RESOLUTION AUTHORIZING THE ACQUISITION OF 1016 WEST 66TH STREET Poll of votes: Ayes - Hassenstab, Helmberger, Luettinger, Harms. Nays - Ludeman. Motion carried. This resolution appears as Resolution No. 246 in Resolution Book No. 3. Ludeman said he believes the construction of 6 units near the intersection and 4 units on the 1016 W. 66th Street property make it too dense a development. Ludeman said he voted against the motion because of the density issue. Helmberger said she thinks it makes sense to redevelop 1016 W. 66th Street and said the City also needs to take into account the increased traffic levels that will be experienced on Rae Drive if Graham Avenue is closed for the Market Plaza development. Luettinger said he is concerned about rehabilitating 901-03 Rae Drive and said now may be the appropriate time to enhance the area with new redevelopment. Executive Director Cartwright noted that Don Russell, another housing contractor, had joined the meeting. Cartwright suggested that perhaps the developers present could look at the property at 901-03 and 910 Rae Drive and see if 6 units could be satisfact- orily placed on the property. Mr. Don Russell asked about the definition of family housing, and suggested CDBG funding could allow housing to be provided for couples. Hassenstab said he thought it appropriate to let the Hennepin County staff know that Richfield is moving ahead with a project to spend the CDBG funds. I ION 0 PO D ANGE N T HENNEPIN COUNTY CDBG FUNDING ALLOCATION FOR MUNICIPALITIES. Executive Director Cartwright gave an update on the Hennepin County meeting held today to consider a new allocation formula for CDBG funds. He said emphasis had been placed on performance for eligible activities so that good performers would be "rewarded" and poor performers would be "penalized" with regard HRA Meeting Minutes -4- June 18, 1984 to expenditure rates. Mr. Cartwright said a committee will be formed to review the CDBG allocation formula, and City Planner Rick Jopke has volunteered to serve on the committee. He said Hennepin County will present a new agreement with a revised allocation formula in September of this year. Chairman Harms asked about the appropriateness of contacting County Board members with regard to this matter. Bruce Palmborg responded that this may be appropriate. Betty Carr, Lynwood Blvd., who serves on the Planning Area Citizens Advisory Committee, said there seems to be a feeling that Richfield gets a lot of money and there is pressure for a new allocation formula. Western Hennepin County cities are pushing to get more money for projects. She also said several of the new allocation formulas would politicize the allocation process and put considerable new demands on the Planning Area Citizens Advisory Committees. No action was necessary on this item, and Mr. Ludeman said he would make contacts with Hennepin County Commissioners. 3. ID fi 0 P S L 0 R ON E A QU I 0 0 THE PROPERTY LOCATED AT 6401-35 LYNDALE AVENUE FOR REDEVELOPMENT. Executive Director Cartwright provided an update on information available from the Richfield Bank & Trust concerning the potential sale of the property at 6401-35 Lyndale Avenue. He said an offer has been made by a private party to purchase the ' property and it would be appropriate for the HRA to consider whether it also wishes to make an offer for the property at this time. Questions followed concerning whether the private buyer of the property was likely to provide a substantial upgrading of the property. Staff indicated that this was not presently known. Chairman Harms suggested that HRA staff contact the potential buyer and determine what extent of interest there is in redevel- oping the property. M/Hassenstab, S/Luettinger, to direct staff to make contact with the potential buyer of the property and report back to the HRA as soon as possible. Motion carried 5-0. Hassenstab commented on the considerable new demands on IRB financing under the new allocations being considered by the federal and state governments. This could be a potential problem if the development of this property and Market Plaza proceed at the same time. HRA Meeting Minutes -5- June 18, 1984 Mr. Larry Wozniczka, Wentworth Avenue, said the Lyndale Garden Center is going to require more parking and perhaps the Opdahl property should be considered for a parking area. 4. CONSIDERATION OF A STAFF REPORT RECO MENDING AUTH RIZATION TO EXECUTE THE CERTIFICATE OF COMPLETION FOR LYNDALE FRUIT AND VEGETABLE MARKET, INC. (LYNDALE GARDEN CENTER) Executive Director Cartwright recommended the certificate of completion for the Lyndale Garden Center be approved. Ludeman asked whether there was supposed to be parking provided on the south side of the building. Bruce Palmborg said staff's review shows the development is in compliance with all agreements established between Lyndale Garden Center and the HRA/City. Ludeman asked if this could be checked out further because of increasing parking needs being experienced in this vicinity. Executive Director Cartwright suggested approving the Certificate of Completion subject to a staff review of the parking requirements associated with the redevelopment agreement and site plans. M/Hassenstab, S/Luettinger, that the following resolution be ado ted sub'ect to a staff check of the arkin re uirement the develo men , that it be s read in the resolution boo an tha it be ma e a Part o these minutes: RESOLUTION N0. 247 AUTHORIZING EXECUTION OF A CERTIFICATE OF COMPLETION FOR LYNDALE FRUIT AND VEGETABLE MARKET, INC. Poll of votes: Ayes-Hassenstab, Helmberger, Ludeman, Luettinger, Harms. Motion carried 5-0 . This resolution appears as Resolution No. 247 in Resolution Book No. 3. Discussion followed concerning parking along Lyndale Avenue and whether the "no-parking" zone might need to be extended farther north on Lyndale Avenue. The Executive Director said he would ask the Traffic Committee to study this matter and make a recommendation. E D ~ E Executive Director Cartwright reported-that the Market Plaza development is proceeding, and requests have been received by staff for the placement of temporary advertising signs on the property. H~ also said Market Plaza plans to temporarily use an existing building on the site as a sales office for the condominiums, and to subsequently build a model condominium that could be used as a sales office on the property. HRA Meeting Minutes -6- June 18, 1984 Executive Director Cartwright also said that he had received a petition for the vacation of Graham Avenue from the Market Plaza developers. This petition will be presented to the Planning Commission at their July meeting. 5. N ID R TI 0 CLAIMS AND PAYROLLSf~'OR JUNE, 1984 M/Luettinger, S/Hassenstab, to approve claims and payrolls as presented. SUMMIT STATE BANK Checks 5368/5814 Motion carried 5-p. X39,926.55 Hassenstab said he is concerned about information provided in a June 13 memorandum about the Market Plaza project, indicating that the coordinating architect has been dropped from the project. He said he thinks two separate architectural firms working on different components of the project may be a problem and that the City could end up with two very different designso Harms said he thought the development agreement provided adequate HRA and City review to avoid such a problem. Discussion followed concerning the HRA monthly financial reports and the 1983 annual disclosure for the L/H/N tax increment district. Administrative Services Director Ron Rankin responded to questions, and said he would provide supplemental information to the HRA. M/Ludeman, S/Hassenstab, to adjourn the meeting. Motion carried 5-0 . The meeting was adjourned at 9:05 p.m. Date Approved: July 16, 1984 J n e berger ecre ary omas arms airman 1