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06-16-1986CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY June 16, 1986 MEMBERS PRESENT: Thomas Harms, Chairman; Donald Hassenstab; Joan Helmberger; and Vern Luettinger. STAFF PRESENT: Steven Devich, Acting Executive Director; Thomas P. Ferber, City Clerk; Bruce Palmborg, Housing and Redevelopment Coordinator; Dennis Kraft, Community Development Director; and Clayton LeFevere, City Attorney. The meeting was called to order by Chairman Harms at 7:32 p.m. APPROVAL OF MINUTES M/Luettinger, S/Hassenstab to approve the minutes of~the regular meeting of May 19, 1986. Motion carried 4-0. Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ANY ITBM NOT LISTED ON THE AGENDA. No one wished to address the HRA. Item #2 PUBLIC HEARING ON THE SALE OF REHABILITATED SINGLE FAMILY PROPERTY AT 7245 HUMBOLDT AVENUE TO A FIRST TIME HOMEBUYER. HRA LETTER NO. 15. Acting Executive Director Devich reviewed HRA Letter No. 15 regarding the sale of the rehabilitated single family property at 7245 Humboldt Avenue and recommended the HRA adopt a resolution authorizing the disposition of the property and permitting the Acting Executive Director to effectuate the sale of the property. Commissioner Helmberger asked if a more favorable interest rate than 9.95 is possible. HRA Minutes -2- Bruce Palmborg, Housing and Redevelopment stated that if a more favorable mortgage rate through MHFA, it will be utilized. June 16, 1986 Coordinator, becomes available M/Luettinger, S/Helmberger to close the public hearing. Motion carried 4-0. M/Luettinger, 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 NO. 282 RESOLUTION AUTHORIZING SALE OF PROPERTY AT 7245 HUMBOLDT AVENUE SOUTH Motion carried 4-0. This resolution appears as Resolution No. 282 in Resolution Book No. 3. Item #2 AMENDMENT TO SUBORDINATION AGREEMENT BETWEEN TWIN CITY FEDERAL AND ARA RELATING TO FINANCING FOR THE WOODLABE POINT CONDOMINIUM PROJECT. HRA LETTBR NO. 16. Acting Executive Director Devich reviewed HRA Letter No. 16 regarding a proposed amendment to the subordination agreement between Twin City Federal, the City, and the HRA relating to the financing for the Woodlake Point Condominium Project. City Attorney LeFevere stated that this amendment would have no impact on the assessment agreement and would only have the affect of increasing the mortgage amount. He indicated that page 3 of the proposed amendment will be corrected so that number 1 (ij will read "Mortgage as amended by the Amendment". M/Luettinger., S/Harms to approve the Amendment to the Subordination Agreement between the HRA, the-City and Twin City Federal relating to the financing for the Woodlake Point Condominium Pro.iect. Motion carried 4-0. 1 ~I 1 HRA Minutes -3- June 16, 1986 Item ~4 DISCUSSION OF THE PROPOSBD TRBSTMAN/SCHALLER PROJ$CT. HRA LETTER NO. 17. Acting Executive Director Devich reviewed HRA Letter No. 17 regarding the status of the proposed Trestman/Schaller Project. Chairman Harms stated that the HRA commissioners should provide direction to staff regarding this proposal and negotiation of a developer's agreement. Commissioner Luettinger stated his concern that the proposed project would not provide adequate value to the city and that the possibility of combining this commercial development with a housing project like Walker's should be explored. Community Development Director Kraft reviewed the site plan for the Trestman/Schaller Project. Discussion followed regarding the possibility of a shared parking facility with the VFW and building housing above the commercial development. Dick Schaller, Big Wheel Auto Store, stated that the VFW had contacted him regarding parking, but no further discussions had occurred. He stated that he would be willing to work with the VFW, but that the parking needs of the proposed project's tenants must be resolved first. Chairman Harms stated that he felt it would not be financially feasible to add another level of commercial space to the project because a parking ramp would be required. He stated the HRA should support the Trestman/Schaller proposal because it is not reasonable to expect Walker to return since they have withdrawn from building housing on the site. Commissioner Hassenstab stated his opposition to the Trestman/Schaller Project and his support for reconsideration of proposals for the site to allow further options for housing on the site to be explored. City Attorney LeFevere stated that a commissioner from the prevailing side of the May 19 vote to endorse the Trestman/Schaller Project can make a motion for reconsideration. Commissioner Luettinger stated that reconsideration would give staff time to investigate the possibility for a more intensive development on the site. HRA Minutes -4- June 16, 1986 Commissioner Helmberger stated that the HRA should seek the best possible use for the property. Chairman Harms stated that the HRA had encouraged this development by its endorsement on May 19 and that it is a viable project. He stated that the project should not be delayed for hope of finding additional development. M/Luettinger, S/Hassenstab to reconsider the May 19 HRA endorsement of the commercial development concept proposal of Mr. Schaller and Mr. Trestman for the Graham/Lvndale Avenue L/H/N Redevelopment Pro.iect site. Motion carried 3-1. (Harms opposed). By consensus, the commissioners .directed staff to continue to negotiate a developer's agreement for the Trestman/Sehaller Project; to contact Walker Associates, St. Peter's Church, and the VFW regarding the possibility of additional development with the Trestman/Sehaller Project; and to report back to the HRA in 3U days with their findings. Acting Executive Director Devich asked if it is feasible to also consider additional office or commercial space on the site. Bruce Palmborg, Housing and Redevelopment Coordinator, reviewed the parking requirements for commercial developments and stated there would not be sufficient surface parking for such additional space. Item #5 HRA CO1rIl~lISSIONER DISCUSSION ITEMS 5A. Commissioner Hassenstab requested a copy of the Executive Director's Project Status Report. 5B. Commissioner Luettinger asked about the financial status of Pet Cetera. Bruce Palmborg, Housing and Redevelopment Coordinator, responded that their sales have been increasing but they are still experiencing some difficulties in meeting their obligations. 5C. Commissioner Helmberger asked about the status of the Cedar Avenue Liquor Store site. HRA Minutes -5- June 16, 1986 ' Acting Executive Director Devich responded that city staff has been working with KKE Architects in designing a new liquor store to be constructed on the site of the old gas station. He stated that staff is also now reviewing four proposals from developers to redevelop the liquor store site. REPORTS OF E%ECUTIVE DIRECTOR There were no reports. Item # 6 CLAIMS AND PAYROLLS M/Hassenstab, S/Luettinger that the following claims and payrolls be approved: FIRST WESTERN BANK Checks 7330/7361, 6721/6729 $1,003,106.58 Motion carried 4-0. ADJOURNMENT M/Luettinger, S/Harms to ad.iourn the meeting. Motion carried 4-0. The meeting was adjourned at 8:44 Date Approved: 7-21-86 r Thomas P. Ferber City Clerk Acting Executive Director