09-09-1985 JointCITY OF RICHFIELD, MINNESOTA
JOINT CITY COUNCIL/H.R.A. MEETING
SEPTEMBER 9, 1985
COUNCIL MEMBERS PRESENT: John Hamilton,. Mayor; Howard Bunce;
Ivan Ludeman; Donald Priebe; and,
Michael Sandahl;
H.R.A. MEMBERS PRESENT: Thomas Harms; Ivan Ludeman; Don
Hassenstab;.and, Vern Luettinger.
STAFF PRESENT: John Cartwright, City Manager;
Steven Devich, Administrative
Services Director; Donald Fondrick,
Community Services Director; Dennis
Kraft, Community Development
Director; Thomas Ferber, City
Clerk; and, Clayton LeFevere, City
Attorney.
The Meeting was called to order by Mayor Hamilton at 7:03 p.m.
PLEDGE OF ALLEGIANCE
Item #1 COUNCIL AND H A ON IDER TION A EQUES TO A END THE
DEVELOPER'S AGREEMENT AND RELATED DOCUMENTS WITH MARKET
PLAZA. C.L. 326, HRA LETTER 46.
City Manager Cartwright reviewed Council Letter No. 326, HRA
Letter No. 46, regarding a request to amend the Developer's
Agreement and related documents with Market Plaza Corporation.
City Attorney LeFevere reviewed the five documents presented
by Market Plaza Corporation for consideration by the HRA and
City Council.
HRA Chairman Harms stated his concern regarding the wording
of paragraph No. 5 of the "Third Amendment to Contract Dated May
14, 1984" document. Mr. Harms felt the change in guarantors for
the project lessened the guarantees to the City and HRA.
Dick Krier, Derrick Land Co., explained that two separate
entities had been created to develop the shopping center and the
housing elements of project. He identified a Mr. Hussman of
North Shore National Bank as the new 50~ investor in the
shopping center element. Mr. Krier explained the new
partnership relationships.
Mike Gould, Bor-Son Construction Development Consultant,
urged passage of the agreements with the stipulation that
paragraph No. 5 be modified to the satisfaction of the City
Attorney.
Joint Council/H.R.A..Meeting -2- September 9, 1985
Mayor Hamilton temporarily recessed the meeting at 7:58 p.m.
The meeting resumed at 8:03 p.m.
City Attorney LeFevere recommended that the City Council and
the H.R.A. approve all five agreements except paragraph No. 5 of
the "Third Amendment" document. The City Attorney recommended
that this paragraph be deleted and reconsidered at the September
23, 1985, council meeting after further review and/or
modification.
M/Hassenstab, S/Luettinger to a rove the amendments to the
develo er's a reement as outlined in H.R. Letter No. 4 ,
except that paragraph o. 5 o t e_"T it Amendment' agreement
be deleted.
The City Council passed the same motion.
Motion carried 4=0. HRA Chairman Harms said that he wanted
his vote o be shown as abstaining on approval of the
subordination agreement.
ADJ UR NT
M/Hassenstab, S/ Luettinger that the concurrent HRA/City
Council Meeting adiourn.
Motion carried 4-0.
The City Council passed the same motion.
The City Council/HRA Joint Meeting was adjourned at :05 p.m.
Date Approved: .11/18/85 ~~2~i? ~ ~~~~
homas Harms Chairman
. G,~2~~
T omas P. erber J hn G. ar ight
City Clerk xecutive Director