02-18-1986CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
FEBRUARY 18, 1986
MEMBERS PRESENT: Don Hassenstab; Ivan Ludeman; and,
Vern Luettinger; and, Joan -
Helmberger {who arrived at 7:58 p.m.)
STAFF PRESENT: John Cartwright, City Manager; Steve
Devich, Administrative Services
Director and Acting City Clerk; Dennis
Kraft, Community Development Director;
Bruce Palmborg, Housing and
.Redevelopment Coordinator; John Dean,
Assistant City Attorney; Cathy Jones,
Community Development Technician; Bruce
Nordquist, Housing Specialist; Kathy
Lovick, Leased Housing Agent; and,
Marcia Hale, Community Development Aide.
The meeting was ca lled to order by Vice Chairman Luettinger at
7:34 p.m.
APPROVAL OF MINUTES
M/Hassenstab, S/Ludeman to a rove-the minutes of the
regular meeting of January 21, 198 .
Motion carried 3-0. .
OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
No one wished to address the HRA.
Item #1 AUDIO-VISUAL REPORT ON THE HISTORY AND STATUS OF THE
LYNDALE/HUB/NICOLLET PROJECT. HRA LETTER N0. 5.
Housing and Redevelopment Coordinator Palmborg narrated an
audio-visual report on the history and status of the
Lynda le/Hub/Nicollet project. The presentation covered the
redevelopment of the LjH/N area from the initial studies in 1963
through February, 1986.
There was discussion concerning the individual projects and
bond issues comprising the L/H/N. The concensus of the
Commissioners was that the audio-visual report was a good
presentation of the L/H/N development area and that the L/H/N
appears to be a very valuable asset to the City.
Vice Chairman Luettinger suggested that the L/H/N audio-
visual report be presented to our State and Federal
representatives.
HRA Meeting Minutes -2- February 18, 1986
The Executive Director responded that the audio-visual
report has already been presented to our City Council, State
representatives, County Commissioner, and, Richfield's
representative to the Metropolitan Council.
Item #2 CONSIDERATION OF AMENDMENTS TO THE DEVELOPER'S
AGREEMENT BETWEEN THE HRA AND THE HAMPTON INN. HRA
LETTER N0. 6.
Executive Director Cartwright reviewed HRA Letter No. 6
concerning consideration of a resolution which approves the
First Amendment to the Developer's Agreement between the HRA and
the Hampton Inn. The First Amendment reflects the current
position of MnDOT with respect to frontage road right-of-way and
the revised plans of PALSCO. At this time only the motel would
be constructed, which would be a 149 unit, 5 story Hampton Inn.
The freestanding restaurant, previously proposed, would be
omitted.
M/Hassenstab, S/Ludeman 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. 279
RESOLUTION APPROVING AMENDMENT NUMBER ONE
CONTRACT WITH PRIVATE DEVELOPMENT WITH PALSCO, INCORPORATED
Motion carried 4-0. This resolution appears as
Resolution No. 279 in Resolution Book No. 3.
Item #3 STATUS REPORT ON THE CITY COUNCIL ACTION TO POSTPONE
DEVELOPMENT FOR THE CEDAR AVENUE LIQUOR STORE SITE
UNTIL APRIL 1, 1986. HRA LETTER N0. 7.
Executive Director Cartwright reviewed HRA Letter No. 7
regarding a status report on the City Council action to accept
Republic Airlines Credit Union request for a postponement
of the development for the Cedar Avenue liquor store site
until April 1, 1986. The Executive Director stated that no HRA
action was required on this item but was presented as a matter
of information. The request for postponement was prompted by
the possible merger of Northwest Airlines and Republic Airlines.
Commissioner Hassenstab stated that he was in favor of an
addition to the community such as the Credit Union and that the
City staff not stand idle while the Credit Union evaluates where
they eventually construct their offices.
HRA Meeting Minutes -3- F~~ruary 18, 1.986
Executive Director Cartwright stated that Northwest Airline
Employees Credit Union may also be looking for additional
space. How , is certain how--the airline merger will
affect-the plans of the Republic and Northwest Airlines Credit
Unions.
Item #4 CONSIDERATION OF STAFF RECOMMENDATION TO SUPPORT
NATIONAL COALITION OF REDEVELOPMENT AGENCIES EFFORTS TO
PRESERVE THE ISSUANCE OF REDEVELOPMENT BOND. HRA
LETTER N0. 8.
Executive Director Cartwright reviewed HRA Letter No. 8
concerning a staff recommendation to support the National
Coalition of Redevelopment Agencies efforts to preserve the.
tax-exempt status of Redevelopment Bonds.
Commissioner Ludeman asked for an explanation of the-
difference between conduit financing such as Industrial
Development Bonds and tax supported Redevelopment Bonds.
Community Development Director Kraft responded to the
question stating that conduit financing, such as IDBs, bear
the City's name but are really private financing for which. the
City has no obligation; whereas, tax supported Redevelopment
Bonds bear the full backing of the issuing jurisdiction.
M/Helmberger, S/Hassenstab to approve Executive Director
contacting Senators Durenberger and Boschwitz to support the
efforts to preserve the tax-exempt status of Redevelopment
bonds issued for redevelopment of blighted area.
Motion carried 4-0.
Item #5 REPORTS OF EXECUTIVE DIRECTOR
The Executive Director reported on the following items:
A. An Evenson-Dodge Seminar will be conducted on Friday,
February 21, 1986, at 9:00 a.m. on the implications of
the Tax Reform Act of 1985.
B. The annual meeting of the Metropolitan Council will be
held on Wednesday, February 26, 1986.
C. The McDonalds restaurant at the Richfield State Agency
Building is scheduled to-open on Wednesday, February
26, 1986.
D. The Executive Director, Community Development Director
Kraft, and, Mayor Hamilton met with representatives of
Frazier School, urging them to talk with neighbors in
the area regarding neighborhood input into the project.
A meeting with the Planning Commission has been
arranged for March 11, 1986.
HRA Meeting Minutes -4- February 18, 1986
E. Pet Cetera paid $5,000 as of December 31, 1.985, toward
their outstanding rent. However, as of February 28,
1986, they appear to be over seven thousand dollars in
arrears again. The Executive Director stated that
within two to four weeks the firm's auditors are
expected to complete a financial report on the
business. The owner of Pet Cetera has indicated
he will seek a loan to pay off the past due rents.
F. The City Council rescinded the rezoning ordinance
for the CDR project. Attorney Dean reported on-the
status of the pending litigation on the matter.
Attorney Dean advised that the action to rescind
and repeal the PC-2 zoning classification for the CDR
.project satisfied the referendum petition. If CDR
seeks a rezoning in the future, the referendum petition
submitted to the City Council on February 10, 1986,
would not apply.
G. The Executive Director stated that he would be
. recommending an extension of the ILN Moratorium to
the City Council. The current Moratorium is set to
expire on March 22, 1986.
H. The Wood Lake Point project now has approximately
24-26 units occupied. This was done pursuant to
HRA and City Council authorization for early occupancy
of certain units providing safety requirements have
been met.
Item #6 CLAIMS AND PAYROLLS
M/Hassenstab, S/Ludeman that the following claims and
payrolls be approved:
FIRST WESTERN BANK
.Checks 6679/6688, 7190/7214 2/18/86 $685,343.37
Motion carried 4-0.
COMMISSIONERS DISCUSSION ITEMS
There were no discussion items.
ADJOURNMENT
M/Hassenstab, S/Ludeman that the meeting adjourn.
Motion carried 4-0.
HRA Meeting Minutes -5- February 18, 1986
[]
The meeting was adjourned at 9:58 p.m
Date Approved: 3/17/86
-.-
Vern Luettinger
45 Vice Cha a
~ ~
..
John G. Cartwri"~ght
Executive Director
Acting City Clerk