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08-20-1984CITY OF RICHFIELD, MINNESOTA HOUSING & REDEVELOPMENT AUTHORITY AUGUST 20, 1984 The meeting was called to order at 7:33 P.M. by Vice Chairman Luettinger. APP-OVAL OF INUTES 0 REGULAR HRA MEETING 0 J LY 1 , 1984; CONCURRENT CITY COUNCIL/HRA MEETING OF JULY 16, 1984; AND, SPECIAL HRA MEETING OF JULY 23, 1984• M/Ludeman, S/Helmberger, to .. r ~ . PORTU T OR CI IZENS 0 DD SS THE RA No on wished to speak. 1. CONSIDERA IO OF CITY ADM NISTRATION PROP SAL FOR THE ACQUISITION OF 901-03 RAE DRIVE. Executive Director Cartwright introduced this item, and gave an up-to-date status report of negotiations for the property at 901- 03 Rae Drive. Mr. Cartwright indicated that as a result of negotiations the acquisition price of $80,000 had been negotiated. He further stated that CDBG funds would be utilized to cover the cost of acquisition, tenant relocation and site clearance. Cartwright requested the authorization to acquire the property at the negotiated price of $90,000. :Larry Wozniczka, 6744 Wentworth Avenue, spoke to the HRA regarding this issue. He raised the question as to why neighbors were not appraised of the request for authorization taking place this evening, and stated it would be a matter of courtesy to notify neighbors for such hearing. Bruce Palmborg responded that neighbors were involved and informed of the entire process up to this point, and were able to have their input into the process. Executive Director Cartwright also stated that neighbors were able to view plans and were advised at the last meeting that this would betaking place. M/Ludeman, S/Helmberger that the following resolution be adopted; that it be spread in the resolution book and that it be made a part of these minutes. All voted aye. Motion carried. Housing & Redevelopment Authority Minutes -2- August 20, 1984 RESOLUTION_N0, 254 RESOLUTION AUTHORIZING THE ACQUISITION OF 901-03 RAE DRIVE All voted aye. Motion carried. This resolution appears as Resolution No. 254 in Resolution Book No. 3. 2. ON IDER ION 0 H P OPO D 0 D L PRO ER Y R DEV LOP EN STATUS REPORT. Executive Director John Cartwright gave a summary of the proposed Opdal Property Redevelopment Status Report. This summary indicated that more time is needed to further assess the matter, and that the City was not now ready to recommend purchase. The City Manager said there were no. objections by the City if Richfield Bank & Trust wished to put the property up for sale. Leland Schwedt, who is a personal representative of Richfield Bank & Trust, addressed the HRA. Mr. Schwedt wanted to stress that the delays associated with this piece of property were not the usual pattern of the Richfield Bank & Trust. He further stated that they had advertised the property since the last meeting and that they have had more interested parties. He went on to add that hopefully a new developer acceptable to the City will come in to purchase the property. Attorney Clayton LeFevere added that the price asked for the property was too high to make it economically feasible for the HRA to develop at this point in time. Vice Chairman Luettinger noted the report filed. 3. E OLU ION UT R ING H ALLOCATION OF S NGLE F ILY MORTGAGE REVENUE BOND AUTHORITY PROVIDED UNDER MINNESOTA STATUTES, CHAPTER 462C TO EXPIRE. Executive Director Cartwright summarized HRA Letter #40, explaining that the Minnesota Housing Finance Agency had awarded the HRA a $4,000,000 allocation of single family housing mortgage revenue bond authority. Cartwright went on to state that once the award was made, staff evaluated the various options for utilizing the $4,000,000 allocation this year. Based on that analysis, it was staff's recommendation that the allocation of bonding authority be allowed to expire. Such expiration requires that the HRA notify the MHFA prior to September 1. Housing & Redevelopment Authority Minutes -3- August 20, 1984 Vice Chairman Luettinger indicated that in addition to the resolution notifying the MHFA, that a letter be sent accompanying the resolution explaining the situation. M/Ludeman, S/Luettinger, that the followin resolution be adopted;, that it be spread n the resolution ook and that it be made a art of tYiese minutes . RESOLUTION N0. 255 RESOLUTION AUTHORIZING THE ALLOCATION OF SINGLE FAMILY MORTGAGE REVENUE BOND AUTHORITY PROVIDED UNDER MINNESOTA STATUTES CHAPTER 462 C TO EXPIRE All voted aye. Motion carried. This resolution appears as Resolution No. 255 in Resolution Book No. 3. 4. :SIDE AT ON OF TY ADMIN A IO R OM END T TO R NEGOTIATIONS TO ACQUIRE TWO SITES FOR LOW/MODERATE INCOME SINGLE FAMILY HOUSING PROJECTS. Executive Director Cartwright introduced this item. Community Development Director Kraft gave a status report on the proposed acquisitions of scattered sites with the assembly of the Rae Drive/66th Street site. He further stated that there will be approximately $100,000 available in year IX (1983-1984) and year X (1984-1985) CDBG funds for property acquisition. He stated that it appeared there would be enough funding to acquire two of the five scattered sites, relocate tenants and clear existing structures.Kraft then described each of the five scattered site locations and made a recommendation as to the two highest priority sites'to be acquired. Commissioner Helmberger raised a question regarding Vo-Tech input into these projects and the potential removal of existing structures. Commissioner Ludeman commented that such projects were good for Richfield and always can be resold. Larry Wozniczka, 6744 Wentworth Avenue, addressed the HRA, and asked. what criteria were used to select these five properties. He went to add that a location at 68th and Blaisdell should have been selected. Kraft described the process and criteria in making a selection among those who voluntarily wish to sell without condemnation. Chairman Luettinger added that staff take a look at the 68th & Blaisdell Avenue property for the future. MiLudecnan, S/Helmberger, for the HRA to authorize ne ooiations on the properties identified in A et er 1. Housing & Redevelopment Authority Minutes -4- August 20, 1984 All voted aye. Motion carried. I RA ON A 0 0 T TION OF PET ETC. (LOCATED IN THE GODFATHER BLOCK REDEVELOPMENT PROJECT AREA). City Attorney Clayton LeFevere introduced this item, and called upon Assistant City Attorney John Dean to make a presentation to the HRA. Mr. Dean informed the .HRA that he had spoken with Chairman Harms, and that Harms had requested that a meeting be set up between Mr. Harms and Chuck DuFresne on the relocation costs of Pet Etc. Dean indicated that he felt they are reasonably close to relocating Pet Etc. in Richfield Shoppes complex, and further,did not wish at this time to put a cap on the costs for relocation. Clayton LeFevere added that he felt the HRA had two options. One was to approve of a not-to-exceed figure, or secondly, to defer the matter to a future meeting, in the relatively near future . There was a general consensus among the HRA members that a special meeting would be called in the near future to consider this matter. ,r_= CON IDERAT ON OF Y AD INIS RATION REPORT ON THE COST TO ACQUIRE AND REMOVE THE BILLBOARD LOCATED ON THE GODFATHER BLOCK Executive Director Cartwright introduced this item, and called upon John Dean to make a presentation. John Dean indicated that the condemnation was now in process and that there had been an appraisal made on the billboard by Naegele's and two different appraisal approaches made by City staff. One such approach, an income approach, indicated a figure of $32,000, while a replacement cost approach showed a cost of $14,000. It was recommended by Dean that approval be sought for the payment of $25,000 for the sign, and indicated that tentative agreements have been reached with Naegele Outdoor Advertising Company for that amount. Helmberger raised a question as to whether they had a right to rebuild, or this would be just one less billboard sign. Dean responded this would be one less billboard. M/Hassenstab, S/Ludeman, that the HRA authorize the Executiv Director and Commission Chairman o enter into a stipula ion All voted aye. Motion carried. Housing & Redevelopment Authority Minutes -5- August 20, 1984 IN NC ALA D CON TR CT N GREEM NTS WI H MA ET PLAZA DEVELOPERS. • Clayton LeFevere introduced this item, and began by stating that by July 20, 1984, the Market Plaza developers were to furnish certain financial commitments and signed construction agreements. The developers were unable to prove such documentation by the deadline and were given a one month extension. At a meeting which took place on August 17, 1984, the developer stated that he had received bids,but that such bids were over their budget, and they felt they should work further to bring the cost below their not-to-exceed figure. A lengthy financial commitment was also introduced from a Detroit based financial institution. It was felt that certain conditions made a part of that commitment could be made more favorable if the developer had more time to negotiate with the financial institution. The developer then sought additional time. Staff stated that they would recommend to the HRA that the thirty day period to correct deficiencies be extended to September 4, 1984. Commission Member Hassenstab asked what happens if they can't deliver on September 4, 1984. Clayton LeFevere responded that he felt they had made significant progress recently, and that he was hopeful delivery would be•made at that time. If not, he stated that the HRA would have an option to decide what to do at that port. Commission Member Ludeman stated he was more interested to hear that they were making progress. Commission Member Luettinger asked what sort of costs we were incurring with this delay. Dennis Kraft responded that if they are able to perform, there is no cost; if they are unable to proceed then we could incur some certain costs. Executive Director Cartwright added that the financial commitment delivered could be excessively burdened with conditions which may be unacceptable to the City. He also stated that developer Arkell felt very upbeat about the condominium project, and stated that he had 14 condominium unit reservations. M/Ludeman, S/Hassenstab, to grant the extension to September 4, 1984. All voted aye. Motion carried. Housing & Redevelopment Authority Minutes -6- August 20, 1984 P 0 ED TTLE ENT ON ODFA E 0 RTY. John Dean introduced this item, and stated that a proposal was received from the Anzevino group which would amount to $1 .3 million for property and fixtures. It was staff recommendation that the HRA approve the settlement of building, fixture and equipment in the amount of $1.3 million. Attorney John Dean went on to state that he was notified by HRA Chairperson Tom Harms that he (Mr. Harms) joins in that recommendation. Clayton LeFevere added that he felt this was a reasonable proposal, and the result of long and serious negotiations. Larry Wozniezka, 6744 Wentworth Ave., addressed the HRA, and asked how figures in this settlement compare to the original budget and how it would impact on tax increment financing in that area. Clayton LeFevere responded that the $1 .3 million was the figure used in the bond sale. Mr. Wozniczka asked if this portion of the project would pay itself back. Clayton LeFevere responded that while this portion in and of itself may have been marginal, the entire HRA as a whole would certainly do so. M/Ludeman, S/Hassenstab, that the HRA authorize the Executive ' Director and Commission Chair erson to enter into a sti ulation rovi n for the ac uisition of he Godfather site at a total cost,-exc udi-n~ relocatifln ene i s, 0 1.3 million and t at e direc e All voted aye. Motion carried. 9. LAIMS A D PAYROLLS. repare su on. M/Hassenstab, S/Ludeman, that the following Claims and Payrolls be accepted: SUMMIT STATE BANK Checks 5381/5907 $1,701,b85.77 All voted aye. Motion carried. There was a question from Commission Member Luetti.nger regarding the status of the Robert Hall property. Dennis Kraft responded that it was not set at this time. M/Luettinger, S/Hassenstab, that the meeting be adjourned. All voted-aye. Motion carried. The meeting was adjourned at 8:33 P.M. Housing & Redevelopment Authority Minutes -7- August 20, 1984 ~i ~' mas E. Harms airman Date Approved: September 17, 1984