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11-18-1985HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD, MINNESOTA NOVEMBER 18, 1.985 COMMISSIONERS PRESENT: Thomas Harms; Joan Helmberger, Ivan Ludeman, and Vern Luettinger. Don Hassenstab arrived at 8:27 p.m. STAFF PRESENT: John Cartwright, City Manager; Steve Devich, Administrative Services Director; Dennis Kraft, Community Development Director;-Bruce Palmborg, .Housing and Redevelopment Coordinator; Clayton LeFevere, City Attorney; and, Bruce Nordquist, Housing Specialist. The meeting was called to order at 7:38 p.m. APPROVAL OF MINUTES M/Ludeman, S/Luettinger to ap rove the minutes of the concurrent HRA/Council meetin of Se tember 9 19 5 and the regular meeting of October 21, 19 5. Motion carried 4-0. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA No one wished to address the HRA. ITEM ~1 PRESENTATION OF AFFORDABLE HOUSING-AWARD RECENTLY AWARDED TO THE CITY OF RICHFIELD BY THE METROPOLITAN COUNCIL AND THE ASSOCIATION OF METROPOLITAN MUNICIPALITIES IN THE CATEGORY - "CREATIVE RE-USE FOR HOUSING AND HOUSING REHABILITATION". HRA LETTER NO. 62. Executive Director Cartwright presented Chairman Tom Harms and the HRA Commissioners with the Affordable Housing Award recently awarded to the City of Richfield by the Metropolitan Council and the Association of Metropolitan Municipalities in the category for Creative Re-use of Housing and Housing Rehabilitation. Chairman Harms accepted the award on behalf of the HRA and thanked City Housing and Redevelopment staff members for their fine work in achieving this award. 1 ~.. HRA Meeting Minutes -2- November 18,-1985 ITEM ~~2 CONSIDERATION OF A RESOLUTION APPROVING MODIFICATION NUMBER 1 TO THE ILN REDEVELOPMENT AND TAX INCREMENT FINANCING .PLAN DATED OCTOBER 21, 1885 (DISTRICT BOUNDARY CHANGE). HRA LETTER N0. 63. Executive Director Cartwright reviewed-HRA Letter No. 63 regarding the consideration of a resolution approving modification Number 1 to the ILN Redevelopment and Tax Increment Financing Plan dated October 21, 1985. The modification concerned a minor change in the Tax Increment District boundary and parcel list. In determining the original assessed. value for the Tax Increment District, Hennepin County reviewed the. boundary location and list of parcels-included in the district and requested several minor changes. The resolution presented to the HRA directed the Executive Director to present this modification to the City Council for consideration. M/Ludeman, S/Helmberger that the following resolution be adopted; that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION N0. 272 APPROVING MODIFICATION NUMBER 1 TO THE INTERSTATE LYNDALE NICOLLET REDEVELOPMENT AND TAX INCREMENT FINANCING PLAN DATED OCTOBER 21, 1985 Motion carried 4-0. This resolution appears as Resolution No. 272 in Resolution Book No. 3. ITEM ~~3 CONSIDERATION OF A REQUEST FROM THE LEAGUE OF MINNESOTA CITIES AND MINNESOTA NAHRO FOR A VOLUNTARY CONTRIBUTION FROM CITIES TO RETAIN A CONSULTANT ON TAX INCREMENT FINANCING MATTERS. HRA LETTER N0. 64. The Executive Director reviewed HRA Letter a request from the League of Minnesota Cities NAHRO for a voluntary contribution from cities consultant on Tax Increment Financing matters. contribution requested of Richfield amounts to the Executive Director proposed could be split HRA and the City. No. 64 concerning and Minnesota to retain a -The voluntary $1,545.00, which 50/50 between the The Commissioners questioned the cost of the proposal - which is an amount not to exceed $107,674.73. Bruce Nordquist, Housing Specialist, said two firms were interviewed for the tax increment study and lobbying services. ~_ HRA Meeting Minutes -3- November 18, 1985 Chairman Harms questioned why only cities who have used tax increment financing were assessed, and if the City. could pay in installments as the work was completed by the consultant rather than putting the money forth up front. M/Ludeman to deny the request for voluntary contribution. The motion died for lack of a second. Chairman Harms tabled this item until the next meeting, so that the HRA Commissioners would have more time to evaluate the proposal. Item ~~~ PUBLIC HEARING REGARDING THE SALE OF RAE DRIVE/6 TH STREET PROPERTY FOR HOUSING REDEVELOPMENT PURPOSES AND AUTHORIZATION FOR THE HRA TO ENTER INTO A DEVELOPER'S AGREEMENT. HRA LETTER N0. 65. Community Development Director Kraft reviewed HRA Letter Number 65, concerning a public hearing for the sale of Rae Drive/66th Street property for housing redevelopment purposes and authorization for the HRA to enter into.a developer's agreement. Mr. Kraft summarized recent actions of the HRA, Planning Commission and City Council with respect to this project. The Community Development Director also reviewed the key points of the Developer's Agreement between the HRA and George E. Branton Construction, the contractor for the project. Commissioner Ludeman questioned the value of these units for low income buyers. Larry Wozniezka, 674 Wentworth Avenue South, asked if the structures would be painted to be complimentary with the existing color scheme of the area. Mr. Kraft responded that they would be. M/Ludeman, S/Luettinger to close the public hearing. Motion carried ~-0. Commissioner Luettinger questioned whether notification of the public hearing in this matter had been performed. Executive Director Cartwright the notice had been placed in the mailing had been done to adjacent M/Luettinger, S/Harms that th~ adopted; that it be spread in the made part of these minutes: responded that publication of official newspaper, and that a property owners. following resolution be resolution book and that it be HRA Meeting Minutes -4- November 18, 1985 HRA RESOLUTION N0. 273 RESOLUTION AUTHORIZING THE SALE OF 910 AND 1016 W. 66TH STREET AND g01 AND 903 RAE DRIVE AND ENTERING INTO A DEVELOPMENT AND SALES AGREEMENT Motion carried 4-0. This resolution appears as Resolution No. 273 in Resolution Book No. 3. (Hassenstab abstained, since he was not present for the entire discussion). Item ~~5 CONSIDERATION OF HRA STAFF RECOMMENDATION TO REVISE THE SECOND MORTGAGE LIEN AMOUNT IN THE SALE OF 920-g24 WEST 66TH STREET. HRA LETTER N0. 66. Executive Director Cartwright reviewed HRA Letter Number 66, regarding consideration of HRA staff recommendation to revise the second mortgage lien amount in the sale of g20-924 West 66th Street. The Executive Director pointed out that .a recent MHFA appraisal of the property at 920 West 66th Street placed the value at lower than was originally valued by the FHA, and the reduced value would suggest that the second mortgage lien-would also have to be reduced. He added that it was likely that the MFHA appraisal of the property at 924 West 66th Street would also provide a lower value than originally given by the FHA. Therefore, the Executive Director was recommending that the Commissioners adopt a resolution authorizing the change of the second mortgage lien amount in the sale of 920 and g24 West 66th Street. M/Ludeman, S/Harms that the following resolution be adopted; that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION N0. 274 RESOLUTION AUTHORIZING THE CHANGE OF THE SECOND MORTGAGE LIEN AMOUNT IN THE SALE OF 920-924 WEST 66TH STREET Motion carried 5-0. This resolution appears as Resolution No. 274 in Resolution Book No. 3. Item ~~6 CLAIMS AND PAYROLLS Commissioner Luettinger asked if the total for Anzevino (Godfather) Restaurant property relocation costs had been finalized. HRA Meeting Minutes -5- November 18, 1985 Attorney Clayton LeFevere responded that it was prob-ably not the case. He went on to add that the matter would most likely not be settled until the issue of whether or not Mr. Anzevino would attain a Bloomington liquor license was settled. Currently the matter is in the courts. M/Helmberger, S/Luettinger to approve. the following Claims and Payrolls• FIRST WESTERN BANK Checks 6238/6243 $150,184.24 Cheeks 6617/6652 Motion carried 5-0. Item ~~7 Executive Director's Report Executive Director Cartwright reported on the status of the Hampton Inn negotiations. He stated that the City wanted a floor of a $3.4 million estimated market value for the project. Hampton Inn, however, wanted a lesser estimated market value floor. Mr. Cartwright added that the total project hard and soft costs currently would total $5 million according to the developers. ADJOURNMENT ~ ,-. 1 The meeting was adjourned by co Dat,~ Approved : 1/21/86 Acti V1 V~, Vivl L1 . ~.~,~~ ~ Yin G . C'~r wrigri//t ecutive Di ectdr rman ~^'