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11-17-1986 CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY November 17, 1986 MEMBERS PRESENT: Thomas Harms, Chairman; Joan Helmberger; Ivan Ludeman; Vern Luettinger; and, Donald Hassenstab (arrived at 7:36 P.M.) STAFF PRESENT: James Prosser, Executive Director; Steven Devich, Administrative Services Director; Bruce Palmborg, Acting Community Development Director; and, Bruce Nordquist, Housing Specialist ALSO PRESENT: John Hamilton, Mayor The meeting was called to order by Chairman Harms at 7:33 P.M. APPROVAL OF MINUTES M/Luettinger, S/Ludeman to agprove_the minutes of the regular HRA meeting of October_20~_1986~_as_s~ubmitted. Motion carried 4-0. There were no corrections. Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ANY ITEM NOT LISTED ON THE AGENDA No one wished to address the HRA. f1 Item #2 INFORMATION UPDATE AND .DISCUSSION OF THE PROPOSED DEVELOPMENT CONCEPTS FOR THE GRAHAM AVENUE DEVELOPMENT AREA (GAD)_IN_THE_L/H/N. HRA LETTER N0. 34. Executive Director Prosser reviewed HRA Letter Number 34, concerning an update and discussion of the proposed development concepts for the Graham Avenue Development Area in the L/H/N. Lee Maxfield, of Maxfield Research Group, Inc., a consultant engaged by the City of Richfield to evaluate the development proposals for the L/H/N GAD~site submitted by Walker and Tushie- Montgomery, addressed the HRA. Mr. Maxfield reviewed his summary of a market study on elderly housing prepared by Walker Management in conjunction with their proposal for a residential development. While Mr. Maxfield felt that the Walker data did not support it, he felt there was a potential future need for 150-200 units of elderly housing in Richfield. His concern was that many questions relating to the elderly housing at the site- HRA MINUTES -2- November 17, 1986 specific GAD Development area still remained unresolved. And finally, Mr. Maxfield indicated that he had a concern about a site line issue which would be created by the addition of another high-rise building in the area. Chairman Harms asked if Mr. Maxfield felt the proposed elderly housing project would serve Richfield or South Minneapolis residents. Mr. Maxfield responded that based on the walker study, he felt that Richfield citizens would be served. Chairman Harms also asked how long he felt it would take to refine the Walker data to include the unanswered questions that were brought up this evening. Mr. Maxfield responded that conducting an additional survey may take up to 45 days. Mr. Maxfield then reviewed the Tushie=Montgomery proposal, and stated that he had no real question or objection to the pro- forma data presented by that developer. He concurred that there was a potential market for office and retail space in the L/H/N area. There was general discussion concerning the level of rents at both the Walker and Tushie-Montgomery projects. Executive Director Prosser stated that in addition to the market evaluation, traffic was also analyzed by taking existing traffic and then projecting increases for the various projects based upon standardized statistical traffic data. Mr. Prosser indicated that additional traffic data will be available~at the December 15, 1986, HRA meeting. Barbara Kilbourn, walker of the original Walker survey, to complete the study. Thus, unanswered questions from the reviewed, and invited the City completing the study. Management, stated that at the time Walker was under a time constraint she recognized that there are some Walker study that should be to participate with Walker in Chairman Harms indicated that he felt that additional survey information was needed, but that the cost and responsibility of completing such a study should fall with Walker, since it would be used to support their project. Ered Morin, Lake Shore Drive, stated two proposals for subsidized housing were this year and turned down because of lack questioned whether or not these projects funding for subsidized housing. that he was aware that submitted for Richfield of funds, and could really get federal 1 HRA MINUTES -3- November 17, 1986 Chairman Harms responded that in addition to attempting to get federal funds in this project, the HRA was working with both developers to try to get the projects themselves to provide some form of subsidized housing. Marion Nelson, Lake Shore Drive, stated that individuals who qualify for subsidized housing are also recipients of free cheese and butter and other commodities from the Federal government, and that it would be a mistake to put those people in the same housing projects with others who do not receive such commodities. Carl Cornell, Lake Shore Drive, stated that he didn't think the traffic study included all proposals, and also asked if current City utilities would be sufficient to service the additional residences. Executive Director Prosser responded that all proposals have been evaluated with respect to the traffic analysis, and that on December 15, 1986, staff will report on the capacity of current utilities to service additional development in the area. Clarence Peterson, Lake Shore Drive, stated that there are currently units at wood Lake Point which are unsold, and apartments at Market Plaza which are not leased, and asked if those un-leased spaces have been taken into consideration in this analysis. Executive Director Prosser responded that they had been consid"eyed. Barbara Gilfillan, Lake Shore Drive, addressed the HRA concerning the excess office space in the metro area, and indicated that Richfield would have additional office space at 76th Street and 494 in the ILN area, and also in Market Plaza, and questioned the need for more office space in the GAD site. Roger Derrick, a partner/developer associated with the Tushie-Montgomery proposal, stated that Market Plaza has no office space, and that the Tushie-Montgomery proposal has considered the current office market today and finds it to be economically feasible. In addition, ne indicated that the project would seek no federal dollars. Dorothy Bailey, Wood Lake Point, questioned whether other suburban office space would compete heavily with the office space contemplated in the GAD site in Richfield. Roger Derrick responded that this would not really be the case. Betty Bruce, Lake Shore Drive, stated she was concerned about pedestrian traffic in the area, and stated there was HRA MINUTES -4- November 17, 1986 already a problem with individuals attempting to cross 66th Street at Lyndale Avenue. Greg Cornell, 7021 Logan Avenue, stated that he was the father of two small children and he had a concern about a large block of senior citizens in the community who might later oppose school improvements since they would not have children in school. Doris VanKampen, Lake Shore Drive, stated that she felt that the Trestman-Schaller project was the only one that wouldn't cost the taxpayers any dollars, and that she was very concerned about the use of any additional tax increment financing in the area. Chairman Harms responded that many improvements in the L/H/N, including her home, would not have been possible if it were not for the use of tax increment financing, and that he felt that Richfield's use of tax increment financing, especially in this project area, has been a very responsible and good use of that financing instrument. Commissioner Ludeman stated that there needs to be a balance of tax increment financing, and at this point we need to make further analysis before we commit to any further use of tax increment financing in the City. Allen Bruce, Lake Shore Orive, asked what is going-to be done to assure the project gets completed as proposed, or if it were to become default after a few years. Chairman Harms stated that in putting together projects such as this, every built-in protection that is possible is included in the developers' agreement. Commissioner Luettinger stated that the HRA and City struggled with the same question eleven years ago when they were initiating the L/H/N, concerned about how to keep the project from becoming a burden on the taxpayers. In that case they took as many precautions as they could, and the project has turned out to be extremely successful. Mr. Luettinger stated that the L/H/N is two years ahead in terms of generating financing for debt repayment. Chairman Harms briefly reviewed the process that would be followed in the continuing analysis of the GAD site. He stated that the December 15, 1986, meeting would be an additional review of the proposals, and submission of further data by staff. The January 19, 1987, meeting would be the final presentation, and possibly a vote on the projects. He went on to thank the public for their input thus far and stated that information generated at these meetings would be very helpful in reviewing and analyzing the project that ultimately ends up in the GAD site. 1 HRA MINUTES -5- November 17, 1986 Acting Community Development Director Palmborg stated that additional market survey data may cause this process to take slightly longer. Commissioner Hassenstab informed the HRA that he would be gone the week of January 19, 1987, and asked the HRA to hold off the vote on that item to a later date if possible, so that he could be involved. Item ~3 AUTHORIZATION TO ACQUIRE 6514 IRVING AND 6632 FIFTH~~ AVENUE AS SITES FOR 1987 YO-TECH HOUSING REHABILITATION PROJECTS. HRA LETTER N0. 35. Executive Director Prosser reviewed HRA getter Number 35, concerning HRA authorization to acquire 6514 Irving Avenue and 6632 Fifth Avenue as sites for 1987 Vo-Tech projects. M/Hassenstab, S/Ludeman authorizin the Chairman and - ~9.~ urcnase a reement and other -g-- -' -- that the following resolution Executive Director to enter into a actions necessary for the HRA to acgulre the prooert~at 6514_Irving Avenue for $46ZSOOZ_and_the eropertY at 6632 Fifth Avenue for $44i600i be_aPero_ved~ that it be_spr~ead in the resolution book and that it be made_part_of these minutes. - - °~--- RESOLUTION N0. 294 RESOLUTION AUTHORIZING THE ACQUISITION OF 6632 5TH AVENUE AND 6514 IRVING AVENUE Motion carried 5-0. This resolution appears as Resolution No. 294 in Resolution Book No. 3. Item ~a AUTHORIZATION TO ENTER INTO A CONTRACT FOR RELOCATION CONSULTING SERVICES FOR HOUSING AND ECONOMIC DEVELOPMENT ACTIVITIES. HRA LETTER N0. 36. Executive Director Prosser reviewed HRA Letter Number 36, concerning authorization to enter into a contract for relocation consulting services for housing and economic development activities. The Executive Director stated that after soliciting proposals, two firms, Federal-State Relocation Consulting Services, Inc., and Von Kluggen Associates responded. Based on analysis of those proposals, it is recommended that Von Kluggen Associates be engaged for relocation services. M/Hassenstab, S/Helmberger that the HRA autnorize_the Chairperson and Executive_Director_to enter into a contract with the consulting firm of Von_Kluggen_Associates for relocation services. _-~- -- ~ --- -- -- -- HRA MINUTES -6- November i7, 1986 Motion carried 5-0. Item #5 REFERRAL OF ILN PLAN AMENDMENT TO THE PLANNING COMMISSION. HRA LETTER N0. 37 Executive Director Prosser introduced this item concerning a proposed planned amendment to the ILN Redevelopment and Tax Increment, rinancing District Plan. Acting Community Development Director Palmborg reviewed and summarized HRA Letter No. 37 concerning the revised ILN. Redevelopment and Tax Incre-meet Financing District Plan. Mr. Palmborg indicated that the modified plan is a result of several key factors, including a reduced CDR project site, acquisition of a third home on 77th Street, East of Lyndale Avenue, thereby increasing the buffer strip east of Lyndale, and a significant change in the storm sewer improvements targeted for potential flooding problems at 77th and Bryant. A final modification would be the adjustment in the project boundaries to~include the entire 76th Street, I35W bridge. Previously, only a portion of the bridge had been included. There was general discussion of the potential solutions to the storm-water drainage problems and of a concern on the part of HRA Commissioners that damaging chemicals may be brought`intb Wood Lake. Executive Director Prosser explained the process whereby excess storm water would flow to both Penn Lake in Bloomington and Wood Lake in Richfield, and that precautions had been taken so that the harmful chemical salt run-off would not be filtered into Wood Lake. Commissioner Hassenstab asked for a brief review of the process that will be followed in acting on this item. Acting Director Palmborg responded with the appropriate process. Larry Wozniczka, 6744 Wentworth, asked the HRA to consider modifying the tax increment financing boundary on 77th Street, to include the houses that are to be removed. He stated that he was also concerned about the levels of pollution indicated in the attachments to the Council Letter, which would be a projected result of improvements to the ILN area. There was general discussion concerning the pollution levels indicated in the HRA. attachments and Executive Director Prosser indicated that there was apparently an error in the data, and that follow up work would be done to check on the appropriate pollution data. M/Hassenstab, S/Ludeman to refer the revised ILN, Redevelopment Tax Increment Financing_Oistrict P1anZ_with the a~propriate_~ollution informationYcorrectiont_to_the Planning Commission_for_their_consideration. Motion carried 5-0. HRA MINUTES -7- November 17, 1986 Item #6 CLAIMS ANO PAYROLLS M/Helmberger, S/Luettinger that the_following claims_and a r o 11 s b e approved : ------ ----__ _- t=IRST WESTERN BANK Checks 6764/6777 $221,117.73 7511/7548 Motion was carried 5-0. Item #7 COMMISSIONER DISCUSSION ITEMS 7A) Tnere was general discussion concerning the beginning meeting times for HRA meetings and of a desire to move the HRA meeting time forward to 7:00 P.M. M/Ludeman, S/Hassenstab to change the commencement_of-HRA meetings to 7:00 P.M. instead of 7:30 P.M. for future HRA meetings after the Oecember meeting. ---__-~-~ Motion was carried 5-0. It was noted by Executive Director Prosser that at the December 15th meeting, which would be scheduled for 7:30 P.M., an announcement would be made to all individuals in attendance that future meeting times would be at 7:00 P.M. In addition, the Executive Director indicated that the public will be notified of the change in time. 78) Commissioner ~uettinger questioned the timing of the two Vo-Tech projects scheduled for 1987 and how the current delay in the vo-Tech project at 12th Avenue would affect this. Acting Community Development Director Palmborg responded that the two Vo-Tech projects next Spring would be coordinated and would pose no problem. He stated that the current project at 12th Avenue was temporarily delayed because of scheduling at the Vo-Tech School and another project on site at Vo-Tech. Mr. Palmborg concluded by stating that work on the building would be resumed very shortly, in that it was due to be closed up before the onset of Winter. 7C) Commissioner Ludeman questioned the status of the trees and lamp post in the 66th and Lyndale area. Acting Director Palmborg said that the trees are gone and that the Staff is currently working on a solution for the lamp posts which would be acceptable to the City. HRA MINUTES -8- November 17, 1986 ADJOURNMENT The meeting was adjourned by man Harms at :45 P.M. D a t e A proved : /Z (~ ~~_--~- _G~2~~~ ~ - homas ar ~Chairman ___ Stev n L. ev'ch am s Prosser~~ Acting City Clerk cutive Director 1