01-21-1986~~ HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF RICHFIELD, MINNESOTA
JANUARY 21, 1986 -
.COMMISSIONERS PRESENT: Thomas Harms; Joan Helmberger; Ivan
Ludeman; Vern Luettinger; and, Don
Hassenstab (arrived 7:38 p.m.)
STAFF PRESENT: John Cartwright, City Manager; Steve
Devich, Administrative Services
Director; Dennis Kraft, Community
Development Director; Bruce Palmborg,
Housing & Redevelopment Coordinator;
and, John Dean, Assistant City.Attorney.
The meeting was called to order by Chairman Harms at 7:30
p.m.
APPROVAL OF MINUTES , ~''
M/Ludeman, S/Luettinger to approve the minutes of the
special meeting of November 12, 1985, the regular meeting of
November 18 1985 and the s ecial meetin of December 9
19 5.
Motion carried ~-0.
ADDITIONS TO AGENDA
Chairman Harms made the following additions to the agenda:
Item ~~3A - Consideration of an Amendment to the Developers
Agreement between the City of Richfield, the HRA, Market Plaza
Corporation and Arkell Development Corporation.
-Item ~~5E - Consideration of Stipulation of Settlement
between Godfather, Inc. and the HRA for Relocation Costs.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ANY ITEM NOT
LISTED ON THE AGENDA
No one wished to address the HRA.
Item ~~1 ELECTION OF OFFICERS FOR THE HOUSING AND REDEVELOPMENT
AUTHORITY FOR 1986. HRA LETTER N0. 1.
Executive Director Cartwright reviewed HRA Letter No. 1
regarding the election of officers for the Housing and
Redevelopment Authority for 1986.
M/Ludeman, S/Helmberger to elect Thomas Harms as Chairman,
Vern Luettinger as Vice Chairman, and Joan Helmberger as
Secretary of the HRA for 1986.
-• Motion carried 4-0.
Item ~~2 CONSIDERATION OF AMENDMENT TO THE HOUSING AND
REDEVELOPMENT AUTHORITY BY-LAWS TO CHANGE THE DATE OF
THE ANNUAL MEETING FROM THE THIRD MONDAY OF EACH
JANUARY TO THE THIRD TUESDAY OF EACH JANUARY BECAUSE OF
THE MARTIN LUTHER KING HOLIDAY. HRA LETTER N0. 2.
Executive Director Cartwright reviewed HRA Letter No. 2
regarding an amendment to the Housing and Redevelopment
Authority By-Laws to change the date of the annual meeting from
the third Monday of each January to the Third Tuesday of each
January because of the Martin Luther King Holiday.
M/Ludeman, S/Helmberger to approve changing the date of the
annual meeting to the third Tuesday of each Januar .
Motion carried ~-0.
Item ~~3 APPROVAL OF RESOLUTIONS DESIGNATING OFFICIAL
DEPOSITORIES FOR THE HRA. HRA LETTER N0. 3.
Executive Director Cartwright reviewed HRA Letter No. 3
regarding resolutions designating official depositories for the
HRA for 1986.
First Western Bank of Richfield was proposed as the official
depository for the Richfield HRA for the year 1986. In
addition, other named financial institutions and savings and
loans were designated as depositories for the investment of
HRA funds for 1986.
M/Ludeman, S/Luettinger to adopt the attaeh~d resolutions •
designating official depositories with the understanding that
the HRA could not invest in any of these depositories beyond the
level of pledged collateral or FDIC coverage, and that the
following resolutions be adopted; that they be spread in the
resolution book and that they be made part of these minutes:
HRA RESOLUTION N0. 278 •~
RESOLUTION DESIGNATING THE FIRST WESTERN BANK A DEPOSITORY
OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF
RICHFIELD FOR THE YEAR 1986 AND APPROVING COLLATERAL
HRA RESOLUTION N0. 276
A RESOLUTION DESIGNATING CERTAIN SAVINGS AND
LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES
FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT
AUTHORITY FUNDS IN 1986'
HRA RESOLUTION N0. 277
A RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS
AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND
REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1986
- Motion carried 3-0. Chairman Harms abstained. These
resolutions appear as Resolution No. 278, Resolution No. 276,
and Resolution No. 277 in Resolution Book No. 3.
Item ~~3A A REQUEST FOR CERTIFICATE OF OCCUPANCY AMENDMENT FOR
WOODLAKE POINT CONDOMINIUMS.
Executive Director Cartwright read aloud a letter addressed
to the HRA from Market Plaza Corporation and Arkell Development
Corporation, co-developers of the Wood Lake Point Condominiums.
The developer requested that the HRA make provision for the
early occupancy of certain units in the Wood Lake Point
Condominium project once units have been completed and all
safety requirements have been met. The developer further
requested an amendment to the Developer's Agreement for
the Wood Lake Point Condominium be approved to facilitate such
early occupancy of the project.
HRA Attorney John Dean distributed a proposed 4th Amendment
to the Developers Agreement between the City of Richfield and
the developers, Market Plaza Corporation and Arkell Development
Corporation. The amendment provided that with respect
to the Housing Component A, the HRA may issue separate
Certificates of Completion for the individual units if
certain preconditions have been met. In addition, the
separate Certificates of Completion could be issued for
no more than 1/2 of the total units in the housing component.
Commissioner Luettinger was opposed to the HRA granting
approval to move into the building before all safety measures
have been completed.
Attorney John Dean responded that the City would not be
issuing a Certificate of Occupancy until the City Building
Inspector would certify the building safe to occupy.
Bruce Palmborg, Housing and Redevelopment Coordinator,
reviewed a memo from Chief Building Inspector Sivert Hendrickson
concerning the extent of safety features that must be
operational before he would grant approval to any Certificates
of Occupancy.
Commissioner Luettinger stated he was still opposed to
approving a process whereby the residents were allowed to move
into a building before the building was complete.
Richard Krier, representative from Market Plaza Corporation,
indicated to HRA Commissioners that more than just-the safety
features would be completed before residents would be allowed
to move into the building. He stated that-all common areas
would be completed, floors covered in the public areas,
and all elevators operational.
M/Helmberger, S/Ludeman to approve the 4th Amendment to the
Developers Agreement.
Motion carried 3-2. Luettinger, Hassenstab opposed.
Item ~k~ CONSIDERATION OF REQUEST TO CITY COUNCIL FOR YEAR XII
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING. HRA LETTER
NO. ~.
Executive Director Cartwright reviewed HRA Letter No. ~,
regarding a request to the City Council for Year XII Community
Development Block Grant funding. The Executive Director
recommended that the proposed use of the CDBG funds for Year XII
be used for: Rehabilitation - $100,000, the New Home Program -
$65,000, and an Energy/Low Income Conservation Program - $15,000.
The energy program is proposed only if the funds would be
available.
The Executive Director asked the HRA Commissioners for
their priorities for a CDBG funding application.
HRA Commissioners and City staff discussed the regulations
and past successes of the Rehabilitation and New Home
Programs. Commissioners indicated both programs have been a
valuable asset to the community.
M/Hassenstab, S/Luettinger that the a plication be presented
with $65,000 for a New Home Program, 15,000 for the Energy
Conservation Program, and that the remainder of funding be for
the Rehabilitation Program.
Motion carried 5-0.
Item ~~5 REPORT FROM EXECUTIVE DIRECTOR ON THE STATUS OF
REDEVELOPMENT PROJECTS: A. MUNICIPAL LIQUOR STORE
SITE, 66TH AND CEDAR; B. HAMPTON INN, LYNDALE AT 77TH
STREET; C. CDR (CLOVERLEAF MOTEL SITE); D. FRASER
SCHOOL HOUSING PROJECT, WEST 66TH STREET.
5A. The Executive Director reported that development of the
municipal liquor store site at 66th and Cedar was proceeding and
that the liquor store is scheduled to be built, commencing in
April, 1986. Construction of the Republic Airlines Credit Union
building is scheduled to commence in August. The developer for
the project was Bill Henning and Company.
5B. The Executive Director reported on the Hampton Inn
project in the ILN. He stated that the Minnesota Department
of Transportation was not willing to vacate the frontage
road for the project, due to the potential need to widen 4g4.
This reversal of MNDOT's position means the developer must
amend their development proposal.
5C. The Executive Director reported that the CDR
project in the ILN area has been the subject of a
temporary injunction. The Executive Director reported that
Ernest Lindstrom indicated to the City Council that he would be
submitting a petition seeking a reversal of the PUD zoning.
The rezoning issue on the CDR Project might mean a referendum
vote.
5D. The Executive Director reported that the Fraser School
project, which received $100,000 of discretionary CDBG funding
from the County, encountered significant resistance at the
January 14, 1986, meeting of the Planning Commission. Citizens
appeared before the Planning Commission to oppose a rezoning of
the area for the Fraser School project.
5E. Attorney John Dean distributed and reviewed a proposed
settlement of the relocation claims for the Godfather Restaurant
from the Market Plaza site. Through negotiations with John
Anzevino and his legal counsel, representatives of the City
have arrived at a tentative agreement. According to the
proposed agreement, $200,000 would be payable as relocation
costs within 10 days of approval of the stipulation of the
agreement. Another $250,000 would be set aside
for payment on or before February 14, 1987, for additional
relocation expenses if they are actually incurred. In
addition to the two figures set forth in the agreement,
$74,000 has already been paid for relocation costs. Thus,
the total cost of the agreement could be $524,000. However,
Attorney Dean pointed out that if the City were to litigate the
matter and were not successful, the potential exposure could
exceed $1,000,000.
M/Luettinger, S/Hassenstab to approve the agreement.
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Motion carried 5-0.
Commissioner Luettinger asked the Executive Director to
report on the status of Pet Cetera. Mr. Luettinger indicated
that he had recently gone to Pet Cetera and was
disappointed with the service that he received.
The Executive Director stated that City staff continues to
work with the owners of Pet Cetera, and that a private
accounting firm had reviewed the financial aspects of the
operation. Mr. Cartwright added that he was aware that Pet
Cetera was in arrears for rental payments for the store. He
stated that the staff would follow this matter closely.
Item ~~6 CLAIMS AND PAYROLLS
M/Ludeman, S/Hassenstab to approve the following Claims and
Payrolls.
FIRST WESTERN
69//6 7 $334,779.44
7159/7180
D
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned at 8:3
APA~cY~ed: X18/86 ~
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ateven L~~vie
Acting City Cle
JoiTn G . Cartr~r'igY~
Executive Director
airman
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