08-19-1985HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF RICHFIELD, MINNESOTA
AUGUST 19, 1985
COMMISSIONERS PRESENT: Thomas Harms, Chairman; Don Hassenstab
• (arrived at 7:37 p.m.); Ivan Ludeman;
and, Vern Luettinger.
STAFF PRESENT: Steven Devich, Acting City Manager/
Administrative Services Director;
Bruce Palmborg, Housing and
Redevelopment Coordinator; Thomas
Ferber, City Clerk; and Bruce Nordquist,
Housing Specialist.
The meeting was called to order at 7:30 p.m.
PPROVAL 0 MINUTES
M/Luettinger, S/Ludeman to approve the minutes of July 15,
1985 Regular Meeting.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
None
Ttem #1 HRA CONSID RA-ION AND SEL C I N OF A DEVELOPER FOR THE
66TH STREET-RAE DRIVE AND COLFAX AVENUE FAMILY HOUSING
SITES. HRA LETTER N0. 42.
Housing and Redevelopment Coordinator Palmborg reviewed HRA
Letter No. 42 recommending that the HRA take action to select
George E. Branton Construction Co. as the developer for the 66th
Street Rae Drive and Colfax Avenue family housing projects ;_ to
authorize staff to negotiate a developers agreement; to direct
the developer to prepare a detailed preliminary plan for HRA,
Planning Commission, and City'Council~approval; to approve the
Housing Development Project Plan, Interest Reduction Project
Plan, and Interest Reduction Program Regulations; and, to
authorize staff to negotiate with the city for the sale of 6425
and 6429 Portland Avenue.
(Commissioner Hassenstab arrived at 7:37 p.m.)
Commissioner Luettinger asked what the net financial impact
of the project would be for the city and HRA.
HRA Meeting Minutes
-2-
August 19, 1985
HRA Attorney LeFevere responded that there would be a loss
of interest income, but a gain in property taxes. However, some
net loss to the city would occur.
Commissioner Luettinger asked if the interest reduction
program would be necessary for all applicants.
HRA Coordinator Palmborg responded that the interest
reduction was dependant on the applicants income and it would be
monitored annually.
Commissioner Hassenstab expressed concern that the upkeep of
the buildings be a high priority since the site on 66th Street
could serve as a showcase for this type of HRA project.
Commissioner Ludeman questioned the benefit to families who
may purchase the housing and realize little gain from their
equity if they sell in 5 years.
Chairman Harms stated that the project was intended to gi-ve
an opportunity to low income families to purchase a home and was
not intended to be areal estate investment.
There was a discussion of the sale of the Portland Avenue
properties, the interest reduction program, and other economic
aspects of the project.
Betty Carr, 6633 Lynwood Boulevard, spoke in support of the
project.
Bruce Nordquist, Housing Specialist, reviewed the concept
plan, site plan, floor plans, and elevations of the proposed
project.
The Commissioners expressed their desire to have the
proposed building exteriors be harmonious with the adjacent
Coach Homes and the existing yo-Tech home.
Larry Wozniczka, 6744 Wentworth Avenue, asked what exterior
material will be used on the homes and the square footage of the
floor plans.
George Branton, George E. Branton Construction Co.,
responded that the exterior would be stained simulated wood and
gave the various square footage figures for the proposed units.
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HRA Meeting Minutes -3- August 19, 1985
Chairman Harms requested that the HRA Attorney and staff
review the interest reduction formula contained in HRA letter 42
revision. Mr. Harms felt that the current formula could provide
a windfall profit for a subsidized purchaser who subsequently
sold their home in a period of relatively high inflation.
Chairman Harms stated that such a situation was not intended by
the program and the formula should be changed to eliminate such
a possibility.
M/Ludeman, S/Luettinger that the following resolution be
ado ted• that it be s read in the Resolution Book and that
i be-made part of these minutes
HRA RESOLUTION N0. 264 A
SELECTION OF DEVELOPER, 66TH STREET, RAE DRIVE,
AND COLFAX AVENUE HOUSING
Motion carried 4-O. This resolution appears as resolution
No. 2 4 in Resolution Book No. 3.
Item #2 HR 0 SIDERATION ND AUTH RIZATIO 0 INITIA E
NEGOTIATIONS TO ENTER INTO A DEVELOPERS AGREEMENT WITH
THE CDR CORPORATION FOR DEVELOPMENT OF THE FORMER
CLOVERLEAF MOTEL SITE. HRA LETTER N0. 43
Acting Executive Director Devich reviewed HRA Letter No. 43
recommending that the HRA authorize staff to initiate
negotiations for a developer's agreement with the CDR
Corporation for the development of the former Cloverleaf Motel
site.
M/Luettinger, S/Hassenstab to authorize staff to initiate
negotiations for a developer's agreement with CDR Minnesot
Investment Inc.) .
Motion carried 4-0.
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Item #3 CLAI S D P OLLS
FIRST WESTERN 8/19/85
Checks 6491/6522, 6201/6216
M/Hassenstab, S/Ludeman to approve the claims and payrolls.
$1,325,062.72
Motion carried 4-0.
HRA Meeting Minutes
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August 19, 1985
ADJOURNMENT
The meeting was adjourned by unan ous consent
Date Approved: 9/16/85 ~
~~ ~ ~~ om Harms,
9:04 p.m.
rman
' ,L ~~~~,~ / h
~h'omas P. Fer ear'- tev Dev c
City Clerk Acting Executive Direct
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