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.
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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.
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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 ~
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The meeting was adjourned by co
Dat,~ Approved : 1/21/86
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