07-21-1986CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
July 21, 1986
MEMBERS PRESENT: Thomas Harms, Chairman; Don Hassenstab; Joan
Helmberger; Ivan Ludeman; and Vern
Luettinger.
STAFF PRESENT: Steven Devich, Acting Executive Director:
Thomas P. Ferber, City Clerk; Bruce
Palmborg, Acting Community Development
Director; John Dean, Assistant Citir
Attorney; Bruce Nordquist, Housing
Specialist.
The meeting was called to order by Chairman Harms at 7:32 p.m.
APPROVAL OF MINUTES
M/Hassenstab, S/Ludeman to approve the minutes of the
regular HRA meeting of June 16, 1986 and the special HRA meeting
of July 15, 1986.
Motion carried 5-0.
Item ~1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ANY ITEM
NOT LISTED ON THE AGENDA.
No one wished to address the HRA.
Item #2 AMENDMENT TO LIEN AGREEMENT FOR 7508 COLFA% AVENUE
SOUTH. HRA LETTER NO. 18. -
Acting Executive Director Devich reviewed HRA Letter No. 18
recommending that the HRA adopt a resolution authorizing the
following actions regarding the lien agreement for 7508 Colfax
Avenue:
1. The lien amount be reduced to X15,100 if the buyer
secures MHFA financing, and
HRA Minutes -2- July 21, 1986
2. The lien amount remain at $20,000 or be adjusted
accordingly, based on the difference between the
$69,900 structure value and the lender appraised
value.
M/Ludeman, S/Luettinger that the followin resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 284
RESOLUTION AMENDING LIEN AGREEMENT-
7508 COLFAX AVENUE SOUTH
Motion carried 5-0. This resolution appears as Resolution
No. 284 in Resolution Book No. 3.
Item ~3 AGREEMENT FOR PROFESSIONAL SERVICES WITH BENNET-
RII+TGROSE-~TOL3FELD-JARVIS-GARDNER, INC . ( BR~tI) , ILId
REDEVELOPMENT PROJECT. HRA LETTER NO. 19.
Acting Executive Director Devich reviewed HRA Letter No. 19
regarding an agreement for professional services with Bennet-
Ringrose-Wolsfeld-Jarvis-Gardner, Inc. (BRW) to provide technical
assistance to staff for special studies and the formulation of
guidelines and strategies in the ILN Redevelopment Area. He
stated funding for Task One would not exceed $12,000 and funding
for Task Two would be funded at an amount not to exceed $14,000.
Funds would be provided by the HRA Capital Revolving Fund.
Chairman Harms stated that no expenditures should be made
for Task Two until the CDR development is finalized and that
consultants should only be used when absolutely necessary to
assist staff.
Acting Executive Director Devich stated that the consultant
would be used on a project by project basis.
Acting Community Development Director Palmborg reviewed the
status of the CDR project, stating that the CDR has yet to
formalize a plan for the site.
Commissioner Luettinger stated that BRW has completed a
redevelopment plan for the ILN and inquired what new services
would be provided by this agreement.
~~
HRA Minutes -3- July 21, 1986
Acting Community Development Director Palmborg stated that
BRW would provide technical assistance for analyzing alternative
traffic solutions for 77th Street adjacent to the Hampton Inn
Project, alternatives for the 78th Street and Lyndale Avenue
intersection, and technical assistance in evaluating alternatives
to address issues raised b,V citizens regarding the CDR project.
Commissioner Hassenstab inquired if the ILN Committee was
still in existence.
Acting Community Development Director Palmborg responded
that the ILN Committee is still operational and that the city
council has also appointed a separate Residential ILN Committee.
Neither committee has met recently since they are waiting for
further developments regarding the CDR's proposal.
Commissioner Hassenstab cautioned staff about the rates
charged by the senior members of the consulting firm; requested
that staff provide regular reports to the HRA regarding the
status of the ILN and activities of the consultant; and,
suggested that the HRA should ask the city council to share the
cost of the professional services of BRW.
Commissioner Ludeman stated that the funding for this type
of services comes from the HRA Capital Revolving Fund and this is
an appropriate use of this fund. Commissioner Ludeman inquired
about the possibility of hiring a different consultant for this
work because he felt BRW had not been very creative in
formulating the ILN Redevelopment Plan.
Acting Community Development Director Palmborg stated that
he felt BRW had performed very well in responding to the needs of
the cit3> and that it would not be wise to change consultants at
this time.
M/Hassenstab, S/Ludeman to authorize the Chairman and Acting
Executive Director to execute a contract with BRW for technical
assistance for the ILN Redevelopment Pro.iect Implementation; that
staff provide regular status reports regarding the ILN
Redevelopment activities and the costs-that BRW charges under
this contract; that the HRA requests that the city council assist
in funding the consultant services under this contract: and, that
the Acting Executive Director is directed to present the contract
to the city council for approval.
Motion carried 5-0.
HRA Minutes -4- July 21, 1986
Item #4 DEVELOPER RESPONSB TO GRAHAM AVENUE DEVELOPMENT SITE
(GAD) AND FUTURB DIRECTION. HRA LETTER NO. 20.
Acting Community Development Director Palmborg reviewed HRA
Letter No. 20 regarding the interest by several developers in
developing the Graham Avenue Development site. He recommended
that the HRA direct staff to study the possibility of including
the VFW in a tax increment district and also present to the HRA a
proposal from a consulting firm to assist in determining the
environmental capacity of the site.
Commissioner Luettinger asked if the interested developers
had been in contact with the VFW.
Acting Community Development Director Palmborg responded
that the developers have indicated they have had discussions with
the VFW and Schaller-Trestman.
Discussion followed regarding the potential for development
in the Graham Avenue Development area.
It was the consensus of the HRA to direct staff to continue
working with all interested developers and to encourage them to
come forward with concepts for HRA consideration.
Commissioner Ludeman stated that any proposal should include
Mr. Schaller's and Mr. Trestman's businesses and that the sale of
the three HRA owned lots should provide enough revenue to cover
the original costs of acquisition.
Item ~5 AMENDMENTS TO VO-TECH CONTRACT - 7245 HUMBOLDT AVENUE
SOUTH. HRA LETTER NO. 21.
Acting Executive Director Devich reviewed HRA Letter No. 21
regarding amendments to the contract with the South Hennepin
Vocational Technical Center for the house located at 7245
Humboldt Avenue South to authorize a change in the contract
amount from $54,102.14 to $56,100.00; a construction completion
deadline extension from July 1, 1986 to August 15, 1986; and,
deletion of the storage shed requirement.
M/Ludeman, S/Hassenstab that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
HRA Minutes -5- July 21, 1986
RESOLUTION NO. 285
RESOLUTION FOR AMENDING CONSTRUCTION AGREEMENT
WITH VO-TECH AT 7245 HUMBOLDT AVENUE
Motion carried 5-0. This resolution appears as Resolution
No. 285 in Resolution Book No. 3.
Item #6 AMENDMENTS TO DEVELOPER'S AGREEMENT WITH GEORGE BRANTON
AND MODIFICATIONS TO FINANCING PLAN. HRA LETTER
NO. 22.
Acting Community Development Director Palmborg reviewed HRA
Letter No. 22 regarding amendments to the Developer's Agreement
with George E. Branton Construction Company and modifications to
the financing plan to sell the Rae Drive/66th Street twinhomes.
M/Ludeman, S/Luettinger that the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION NO. 286
RESOLUTION FOR AMENDING AGREEMENTS AND
THE FINANCING PLAN; NEW HOME
PROGRAM ACTIVITIES
Motion carried 5-0. This resolution appears as Resolution
No. 286 in Resolution Book No. 3.
Item #7 HRA COMMISSIONBR DISCUSSION ITBMS
7A. Commissioner Hassenstab requested that copies of a
recent article in the St. Paul newspaper regarding the I494
Corridor developments be made available to the HRA members.
7B. Commissioner Helmberger requested a status report on
the Pet Cetera store.
Acting Community Development Director Palmborg reviewed
their current status regarding rent payments.
HRA Minutes -6- July 21, 1986
Item ~8 CLAIMS AND PAYROLLS
Commissioner Luettinger asked if further payments are to be
made to John Anzevino for the settlement of the Godfather claim.
Acting Community Development Director Palmborg stated that
there may be some pending claims to be paid.
M/Ludeman, S/Luettinger that the following claims and
payrolls be approved:
FIRST WESTERN BANK
Checks 6730/6735, 7371/7399 $ 173,345.58
Motion carried 5-0.
REPORTS OF E%ECUTIVE DIRECTOR
There were no reports.
ADJOURNMENT
M/Hassenstab, S/Luettinger to ad.iourn the meeting.
Motion carried 5-0.
The meeting was adjourned at 8:52 p.
Date Approved• 8/18/86
~C? ~ .
s arms Chairman
Th
r
Thomas P. Ferber Steven L. Devich
City Clerk Acting Executive Director