11-19-1984HOUSING AND REDEVELOPMENT AUTHORITY
City of Richfield, Minnesota
November 19, 1984
HRA COMMISSIONERS PRESENT: Thomas Harms, Chairman;
Joan Helmberger; Donald
Hassenstab (arrived at 7:58 _.
PM); Vern Luettinger; and, Ivan
Ludeman.
STAFF PRESENT: Executive Director John Cartwright, Director
Dennis Kraft, Housing and Redevelopment
Coordinator Bruce Palmborg, and Assistant City
Attorney John Dean.
The meeting was called to order by Chairman Harms at 7:35 PM.
OVA R G RLY DUL MEE G OF E M R
2b, 1984 AND BUDGET HEARING OF OCTOBER 2, 1984 ~ -_-_
M/Ludeman, S/Luettinger, to a rove the minutes of Se tember 2~
1984 re ular meetin and t e s ecial Bud a earin
meeting o Oc ober 2, 1984.
Motion carried: 4-0.
D A 0 L P R
AGREEMENT BETWEEN THE RICHFIELD HRA A~TD RICHFIELD SHOPPES
DEVELOPERS (_HRA_LETTER #47).
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Assistant City Attorney John Dean gave a brief presentation on
the Richfield Shopper request to amend the date of the contract
between the HRA and Richfield Shopper for the annual $2,500-
installment for the property located on the northeast corner of
66th Street and Nicollet Avenue. The request is to amend the
date from October 26th to May 1st annually commencing in 1985
and continuing until the provisions contained in the developers
agreement are met. -•The reason for this was that the city was
unable to deliver the site to the developer until May 1, 1984.
The executive director recommended approval of the amendment.
M/Ludeman, S/Helmberger to a rove the amendment to the lease
purchase agreement as sta e e ow.
AMENDMENT TO LEASE
PURCHASE AGREEMENT
THIS AGREEMENT made and entered into this
day of , 1884 by and between the
Housing an Redevelopment
Authority in and for the City of Richfield,
HRA Meeting Minutes -2- November 20, 1984
Minnesota, a Minnesota public body corporate and
politic (HRA) and Richfield Shopper Developers,.a
partnership consisting of Thomas DuFresne and
James Lupient, general-partners.
WHEREAS, on October 26, 1983 the parties
hereto did execute a document entitled "LEASE
PURCHASE AGREEMENT" (the Agreement); and
WHEREAS, the parties hereto are now desirous
of modifying and amending the Agreement as
hereinafter described.
NOW, THEREFORE, the Agreement is hereby
amended bq amending paragraph 3 thereof to read as
#°oilows:
1
"3. Rent. The Developer shall pay the HRA in
advance,
on the date of this Agreement and on May 1, 1985
and every May 1 thereafter for the term of this
Agreement the sum of $2,500 as rent for the leased
premises."
This amendment shall become effective only
after it has been approved in writing by the
trustee for-any bonds issued to finance the
pro3ect. --
Motion carried: 5-0.
2. H A ON I RA IO OF A M S E A R L 0
LAND FOR PRIVATE DEVELOPMENT (MAY 14, 1984) BETWEEN THE CITY
OF RICHFIELD, THE RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY, MARKET PLAZA CORPORATION, THE ARKELL DEVELOPMENT
CORPORATION, AND E.J. PLESKO AND ASSOCIATES. INC.
Executive Director Cartwright reported on the financial
commitments of the project. Also, he said the construction
contracts have not yet been signed although the maximum
construction costs for both contracts have been agreed upon.
Director Dennis Kraft presented a brief review of the amendments
made to the site plan for the Market Plaza project and also on
the status of the final approval for the Market Plaza Planned
Unit Development.
Executive Director Cartwright indicated that Market Plaza is
expected to close on their financial commitments during the
week of December 3 -.7 and that it is anticipated that the _
industrial development revenue bond issue will be transmitted to
the city council on December 10, 1984 for approval. Assistant
City Attorney Dean indicated that the city will not close on the
sale of the land until all of the conditions contained in the
developers agreement are met.
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1
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HRA Meeting Minutes -3- November 20, 1984
Mr. Dean then discussed the proposed amendments to the
developers agreement. These include separate certificates of.
completion for the three phases of the project, an amendment on
the construction guarantees, an amendment to the assessment
agreement, an increase in the estimated market value of the.
project and an increase in the purchase price of the property
from $1.00 to $188,000.00. Chairman Harms questioned whether a
syndication effort by Market Plaza would trigger the pay back
provision of the agreement and Mr. Dean indicated that he
thought it would not. Mr. Harms then indicated that the
agreement needed to be redrafted so that a mayor syndication
effort would address this problem. Commissioner Hassenstab
requested an explanation of how the amendments between the city
and the developer would impact the city. The executive director
and assistant city attorney responded and Mr. Hassenstab
indicated that he-was satisfied with the explanation.
The executive director also recommended that the request for
site demolition and grading be given approval prior to the
closing of the project. Mr. Cartwright also gave a brief review
of the environmental assessment worksheet and the negative
finding which was made by the council on this project. He also
discussed the construction time table and the items relating .to
the sale of industrial development revenue bonds. Commissioner
Luettinger questioned whether the increment from the pro3ect was
sufficient to pay for the acquisition and relocation cost for
Market Plaza and, if that was not the case, whether increment
would be needed from the remainder of the district. Mr. Harms
indicated that was one of the reasons why he had indicated
earlier that there was need to save increment from other parts
of the district in order to pay for this project because it was
earlier hypothosized that conceivably the Market Plaza project
would not totally pay for itself.
Mr. Lawrence Wozniczka, 6744 Wentworth, indicated that he wanted
to express his opposition of the sale of the land for $188,000
without the provision of the developer being required to pay
interest.
Mr. Dean reported on•the current status of litigation on the
project and he further indicated that he anticipated that the
Strom condemnation proceeding would hopefully be terminated by
the end of 1984.
M/Ludeman, S/Luettinger, to a rove the amendments as resented
and recommended by the HRA staff to the contract or the sale of
ana ror rlvate aevelo meet (Ma 14 1 84 be~Cween ~Y1e ~cit of
c ield, he c eld ousin and Redevelo men ut on
arks Plaza or oration the Ar e 1 eve omen or oration and
.J. Plesko and ssocia es nc.
Motion carried: 5-0.
M/Helmberger, S/Ludeman, to allow the Market Plaza Cor oration
to obtain earl access to the site or the EurEose of site
demolition and grading purposes prior to the r_eal_ estate closi
on the proiect.
Motion carried: 5-0.
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HR~i Meeting Minutes -4- November 20, 1984
3. D A 0 A OPO O U D A PRO NA
BROCHURE TO HIGHLIGHT THE ADVANTAGES OF THE CITY OF
RICHFIELD AND~THE RICHFIELD SCHOOL SYSTEM (HRA LETTER #48)
Executive Director Cartwright reported on a request to_provide
up to $7,500 for funding of 50I of the cost for a promotional
brochure for the City of Richfield and the Richfield school
district. Commissioner Hassenstab asked why the city council
did not pay for part of this and the executive director
indicated that the ma3or purpose of the brochure was to attract
families and businesses and that he thought this was consistent
with the goals of the HRA small business assistance program.
Commissioner Ludeman indicated that he hoped the city would get
due consideration and recognition in this brochure. Chairman
Harms questioned who would be responsible for writing the
brochure and Mr. Cartwright said that a professional writer
would 1~e utilized for this purpose. Commissioner Helmberger_
indicated that the HRA was frequently short of funds for new
housing programs and expressed concern about this expenditure
limiting that program. Commissioner Luettinger indicated that a
more simple document would be sufficient for this purpose .and he
used as an example the information provided in the bond sale
documents for city bond issues. Mr. Cartwright indicated that
bond sale information was typically written for persons in the
financial community and was not presented in a promotional
format.
Chairman Harms requested that the city council be asked to
reimburse one-half the cost to the Housing and Redevelopment
Authority.
M/Harms, S/Helmberger, to a rove the ro osed ex enditure for a
romotional brochure and at the c counci a asked o -a
o e c v s are o f e'proiec cos .
Motion carried: 5-0~.
D A L .
M/Luettinger, S/Helmberger, that the following claims and
a~roll be a proved.
~IR Teti E~S~ NBA K
Checks 5428/6037 $381,140.90
Motion carried: 5-0.
U DIRE T R'S REPORT
Executive Director Cartwright said that the Pet Cetra business
will be operating in its new location in Richfield Shoppes North
by December 1, 1984. He also indicated that work has progressed
on the Richfield State Agency storm sewer project and that
HRA Meeting Minutes -5- November 20, 1984
McDonald's restaurant has requested a drive-up window as a part
of the Richfield State Agency project. It was also reported
that Mr. Trestman of Trestman Music has hired a consultant to
help him formulate and implement a redevelopment project __.
adjacent to his business and that a building permit has been,.
applied for for the renovation of the old Robert Hall building
which is located on the northeast corner of 77th Street and 12th
Avenue. It was also indicated that Bloomington Honda has
applied for a special use permit to locate an automobile sales
facility on•the Astleford equipment site on 77th Street east of
Lyndale Avenue and that Feldman Imports has applied for a
special use permit to expand their automobile sales facility .to
the north of the existing facility which is located immediately
north ~f Interstate 494• Mr. Cartwright also said that the
Cutler Animal Hospital was currently on the market.
Commissioner Ludeman indicated he thought it would be desirable
for the city to look into the possibility of acquiring this
st'ruoture. Executive director Cartwright indicated that the
city has concern relative to the redevelopment of land in the
entire ILN redevelopment area.
The executive director said that the joint meeting to discuss
the Legion Lake Park project between the city council, the HRA,
the planning commisison and the community services commission
would be held at 5:30 PM, Monday, November 27, 1984 at the city
hall. Commissioners Harms, Ludeman, Helmberger, and Luettinger
indicated that they would attend and commissioner Hassenstab
indicated that he would attempt to attend if he could make
provisions relative to another meeting he has scheduled
D~0-t~RN~I
M/Hassenstab, S/Luettinger, that the meeting adjourn.
Motion carried: 5-0.
The meeting of the HRA was adjourned at 9:35 PM.
Date Approved : December 17, 1984
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