Loading...
12-15-1986CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY December 15, 1986 MEMBERS PRESENT: Thomas Harms, Chairman; Donald Hassenstab; Joan Helmberger; Ivan Ludeman; and, Vern Luettinger STAFF PRESENT: James Prosser, Executive Director; Steven Devich, Administrative Services Director; Bruce Palmborg, Acting Community Development Director; and, Clayton LeFevere, City Attorney. The meeting was called to order by Chairman Harms at 7:30- P.M. APPROVAL OF MINUTES M/Ludeman, S/Hassenstab to approve the minutes of the regular HRA meeting of November 17, 1986, as submitted. Motion carried 5-0. -- 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. Item #2 CONSIDERATION OF SUPPLEMENTAL AGREEMENT FOR TECHNICAL ASSISTANCE FOR THE I/L/N REDEVELOPMENT PROJECT WITH THE FIRM OF BRW. HRA LETTER N0. 38. Executive Director Prosser reviewed HRA Letter Number 38, regarding the consideration of a supplemental agreement for technical assistance for the I/L/N redevelopment project with the consulting firm of BRW. Mr. Prosser indicated that the heavy public involvement in~the I/L/N public participation process necessitated significantly greater assistance from 8RW to respond to questions which required technical analysis. This was the major reason for expending the funds allocated for consulting services to date. Commissioner ~uettinger asked if it was necessary for BRW to attend all of the public meetings. Executive Director Prosser stated that he felt it was necessary to have the technical assistance of 8RW present for those meetings. HRA Minutes 2 December 15, 1986 Commissioner Ludeman stated that he wanted a line item explanation of the expenditure of the first $26,000, and secondly, he suggested that the HRA delay further discussion of work on Lyndale Avenue over 494. Executive Director Prosser felt that while there may be some delays in work on Lyndale Avenue over 494, he felt it was necessary to have the City's ir~.formation completed on recommended improvements to that area before the work on Lyndale Avenue is ready to proceed. This would insure that the project was done with Richfield's considerations in mind. Commissioner Hassenstab asked if there are any other services that the HRA is paying BRW for in retrospect. - Acting Community Development Director Palmborg stated that the HRA had expended the funds for BRW in October, but additional work had already been done for the past month and a half. Commissioner Hassenstab indicated that he would prefer prior authorization of estimates of work done rather than paying for work in retrospect. M/Hassenstab, S/Ludeman to a with BRW to ermit lannin activ not to exceed 96,000. -= Motion carried 5-0. rove the supplemental contract y to continue, in an amount Item #3 CONSLDERATION OF A RESOLUTION APPROVING THE MODIFIED I/L!N REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING (TIF) PLAN AND REQUESTING THE CITY COUNCIL TO `CONDUCT A PUBLIC HEARING AND TO APPROVE THE PLANS. HRA LETTER N0. 39. Executive Director Prosser reviewed HRA Letter Number 39, regarding consideration of a resolution approving the modified I/L!N redevelopment and tax increment financing plans, and requesting the City Council to conduct a public hearing. Mr. Prosser reviewed answers to the questions raised at the previous HRA meeting, concerning proposed storm water runoff into Wood Lake, the carbon monoxide levels near 77th and Emerson Avenue, and the boundaries of the tax increment financing and redevelopment projects. Commissioner Hassenstab asked the results of the Planning Commission vote on this item. Acting Community Development Director Palmborg responded that it was unanimous. Commissioner Hassenstab asked i.f any other jurisdictions were to be copied on the plan besides the independent school district and Hennepin County. ~I n ~~ HRA Minutes 3 December 15, 1986 Executive Director Prosser indicated that other jurisdictions would be notified, but that the two copied were those specified by law. Commissioner Luettinger said that on page 1.04,: there was a typographical error stating that it should have read 1986 rather than 1987. Executive Director Prosser noted the correction. 1 Chairman Harms asked what were the legal modifications of -the plan-. -~ Attorney LeFevere responded that the legal modifications were very minor in nature. M/Luettinger, S/Helmberger to approve the attached resolution approving the modified I/L/N redevelopment plan and tax increment financing plan, and requesting the Cit Council to conduct a public hearing and to approve the=:plans; that it be spread in the resolution book and that it be made part of these minutes. HRA RESOLUTION N0. 295 RESOLUTION APPROVING A MODIFIED REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN FOR THE INTERSTATE- LYNDALE-NICOLLET REDEVELOPMENT PROJECT; REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT PUBLIC HEARINGS THEREON; RECOMMENDING APPROVAL OF THE PLANS Motion carried 5-0. This resolution appears as Resolution No: 295 in Resolution Book No. 3. Item #4 EVALUATION OF THE PROPOSED DEVELOPMENT CONCEPTS FOR THE GRAHAM AVENUE DEVELOPMENT (GAD) SITE AREA AND PRELIMINARY RECOMMENDATION. HRA LETTER N0. 40. Executive Director Prosser briefly summarized HRA Letter Number 40, and stated that he would ask each of the three developers to summarize their plans this evening. Roger Derrick, Lyndale Partners, described the process used to modify their plans since the last HRA meeting. He indicated that there have been meetings showfng the model of the project with Lake Shore Drive residents and the representatives of the -VFW. Mr. Derrick stated that the model had been modified according to the recommendations of those parties. Gary Tushie, of the Lyndale Partners, described the project model and floor plans, including modifications made to the building plans since the last HRA meeting. HRA Minutes 4 - December 15, 1986 r Roger Derrick-informed the HRA that Jerry Trestman was no __ longer part of the project, and that terms to purchase the Trestman building have not been reached. Chairman Harms questioned the,astatus of the VFW with respect to this project. Jerry Courteau, Senior Vice Commander of the VFW, stated that the VFW could hold a meeting within one month to indicate a _ final-position on the project. He indicated a preference for the Lyndale Partners Project. Russ Helleckson, President of the Lake Shore Drive Condominium Board, stated that a lot of people at Lake Shore Drive were in opposition to the project, but that a number of people were impressed with the modifications made by the Lyndale Partners after the Lake Shore Drive meeting. He added that he would officially bring up the issue of the project at the Board meeting on December 16, 1986. Jerry Trestman stated that he cannot afford rental-space in the new building, and thus he pilled out support of the Lyndale Partners project and now favors either the Walker project or the original Trestman-Schaller project. Dick Schaller Partners project reported however he that he can. remain in the new Lyndale still t th , suppor s e original Trestman-Schaller project as well as the Lyndale Partners project, as long a s he may r emain in the area. Roger Derrick stated th at the housing included in the Lyndale Partners p roject is subsidized by the project, and not.by Federal funding. Commissioner~Helmberger asked if the building could be moved further away from Lake Shore Drive. Roger Derrick stated that the building could be moved. However, he added that it would create a problem with parking. The parking area on the site would have to remain and be moved to another part of the site, most likely behind the building, adjacent to Lake Shore Drive. Mr. Palmborg summarized a staff evaluation of the Lyndale Partners project, and indicated that an economic development site with a life of eight years could be a likely scenario for the project. - ~' The. HRA Commissioners agreed by consensus with the proposed meeting notice boundaries identified in the staff evaluation. Commissioner Ludeman asked if the development could support the debt for the project, and indicated that he :still felt HRA Minutes 5 December 15, 1986 strongly that the developer should pay for the lots, and the City's investment in the lots be returned. Barbara Kilbourne, Director of Operations for Walker Development, presented the Walker Development Project. She indicated that the VFW, Big Wheel Auto and Trestman Music would all be included in their project. She also stated that the building would be moved further away from Lake Shore Drive, and be stepped down from eight stories to five stories to two stories. Ms. Kilbourne indicated that they would seek a straight subsidy for land write-down and for SAC/WAC fee's, and that the project did not include low income housing. If they were to - acquire 202 funding, they would add 45 units on the building.. However,: the building would not be increased in height. Acting Community Development Director Bruce Palmborg presented an evaluation of the Walker project, and indicated that he had not seen this information prior to this evening. He pointed out that the Walker project does not require utilizing the'Lynch property. The project contemplates the City building a parking facility. He state- that the City has been reluctant to build or manage parking facilities in the past. Chairman Harms indicated that the City was not enthusiastic about building or operating a parking ramp, and felt that Walker should explore other possibilities in that regard. Commissioner Luettinger stated that he felt the project should take all three houses instead of leaving the Lynch house. Commissioner Hassenstab stated that he wanted the staff to make a very thorough review of the Walker project, similar to that done with the Lyndale Partners project. Jerry Courteau, VFW, indicated that, he preferred the Lyndale Partners plan to the Walker plan. Jerry Trestman stated that he was in favor of the Walker __ project because it allowed him to remain in the neighborhood. Dick Schaller indicated that he really could support any project, as long as he can stay in the area. He also indicated that he did not feel. it was necessary to represent the original Trestman-Schaller proposal, insofar as it has been presented to the Commissioners and many of the individuals in the audience a number of times before. Chairman Harms indicated that the next step in this development process would be that a meeting would be established in January at which final action on selection of a development for the area is anticipated. HRA Minutes 6 -December 15, 1986 Item #6 SETTING A SPECIAL MEETING OF THE HRA FOR JANUARY 26, _ 1987. HRA LETTER N0. 42. (Taken out of order) M/Hassenstab, S/Ludeman that special meetings of the HRA be called for January 26, 1987, to address the CDR proposal, and January 27 ,. 1987, to continue consideration of the GAB development protects. Motion carried 5-0. Item #5 CONSIDERATION OF AMENDMENT TO HRA BYLAWS TO CHANGE THE HRA MEETING TIME TO 7:00 P.M. HRA LETTER N0. ~1. Executive Director Prosser reviewed HRA Letter Number 41, regarding amending the HRA Bylaws with respect to meeting times. MlHassenstab, S%Helmberger to amend the HRA meeting times to change the start of HRA meetings to 7:00 P.M. Motion carried 5-0. Ltem #6 SETTING A SPECIAL MEETING OF THE HRA FOR JANUARY 26, 1987. HRA LETTER N0. 42. This item was considered in conjunction with Item 4~4. Item #7 RECEIPT AND REVIEW OF A REPORT FROM THE CITY'S FINANCIAL CONSULTANT REGARDING THE FISCAL HEALTH OF~RICHFIELD. HRA LETTER N0. 43. Executive Director Prosser reviewed a report prepared by Mr. Wayne Burggraaff, of the City's bond consultant Evenson-Dodge, indicating that the City's financial position related to the issuance of bonds is strong, and that as recently as March of 1986 Moody's Investors Service of New York has assigned the City of Richfield a rating of Aa for General Obligation Sonds. There was no action on this item. The regular meeting was temporarily adjourned so that Item #8 - a Closed Executive Session Concerning a LaMSUit and Car Wash Settlement could be discussed. At the Executive Session, Harms, Hassenstab, Helmbe.rger, Ludeman and Luettinger were present, along with Prosser, Devich, LeFevere, and Palmborg. HRA Minutes 7 December 15, 1986 Attorney Clayton LeFevere briefed the HRA Commissioners regarding a potential resolution of-the legal action concerning the Gordon Strom Car Wash site. The Public Meeting was reconvened at 9:54 P.M. Item #9 -CONSIDERATION OF SETT~~.EMENT OF LAWSUIT FOR PROPERTY AT 6440 LYNDALE AVENUE. HRA LETTER N0. 44. M/Ludeman, S/Luettinger to approve the settlement described by legal counsel for Gordon Strom with respect to a lawsuit for orooerty at 6440 Lvndale Avenue in the L/H/N, providing that Mr. Strom has executed a stipulation. Motion carried 5-0. Item #10 CLAIMS AND PAYROLLS M/Hassenstab, S/Luettinger that the following claims and payTOlls be approved: FIRST WESTERN BANK Checks 6778/6805 $2,029,507.46 7562/75;94 Motion was carried 5-0. ADJOURNMENT ' The meeting was adjourned by C an Harms: a 0:03 P.M. Date A proved: 1/27/87 ' ~~~",%~' ~ G!.~~ as a Chairman / ~~ Steven L. Devich a es D. Prosser Acting City Clerk Ex cutive Director g ,¢ f~ • Tushi¢~Montgom¢ry & Associates, Inc. - Architects . Planners ~ Landscape Architects 6440 Flying Cloud Driv¢ ~Minneapolis~Minnesota~55344~612~94..47279 - t ` -~k__,~__ __ ___ ' 4 ~ -ALTERNATIVE DESIGN ONE + ~ _ _. .' _. ~ ~ • Y. 1 } ; ~ ' ! ; ~ TOTAL LANG AREA Approx. 21 1,11 0 Sq. Ft. ~ '• ' ~ ~ ~ ' i _ ..i~ - SURFACE PARKING X282 ~ ~- Stalls ' ~ _ _... ~ $ RAMP PARKING 498 Stalls - ~ ~ _- TOTAL PARKING ; 780 Stalls ,. ~ _ ~ •yi._ - - ~~~-`~; ' BUILDING COVERAGE _ _ 55,100 Sq. Ft. ~ _ • ~ I :__ _ ~ ~_ ~'-~~ ~ BUILDING SUMMARY ~_ .45,600 48,600 Sq. Sq. Ft. Ft. Retail VFW 31,700 Sq. Ft. Offic 6,600 Sq. Ft. Mecha ~_ ! ~_ ___-_;_ __ _-_ . 21,000 Sq. Ft. Medical 159,600 Sq. Ft. Garag 38,300 Sq. St. Residential (48 Units) °-~* ----i--i---- -. - - -- - (40 1-Bed, 2-2 Bed, ~ , ! • 4-Efficiencies) . ~ _ __v _ ; ~ _ _ _ -. - 14,000 Sq. Ft. Circulation .. {All Floors) i ~~-~- ~ ; ~ ~ ~ TOTAL BUILDING AREA 365,400 Sq. Ft. ~ ~~ ~ ~ _..~... a .---•-- BUILDING EFFICIENCY .... - .. .. ' 90x _ _; _. .. --. ' ~ _ .. _- - --•- t ~~~`i ~-~~ ' PARKING•LEVEL 1 ~ --- ~ 79,800 Sq. Ft. - _ 249 Parking Spaces ~ --; -- I t~ PARKING LEVEL 2 -- 79,800 Sq. Ft. 249 Parking Spaces - i~~----~ BUILDING LEVEL 1 ~ - : „_, 55,100 Sq. Ft. Total Floor Area - ';- ' ~ ' i _ _; . • .. - ~_ - - ~ 45,600 Sq. Ft Retail . l._..:.__ ;_ _ 4,300 Sq. Ft. VFW - t 1 ~ 5,200 Sq. Ft. Circulation {Retail) ~ ~~ i ~ ° BUILDING LEYEL 2 47,700 Sq. Ft. Total Floor Area ^ " _ ~' ~ ~~ ~ ~ - ~ 9,600 Sq. Ft. Residential (9-550 sq. ft. l Bed ~ 1 Bed, 1-610 Sq. f --t-- t--- ~ - - ~ Sq.Ft. Efficiency, r { ~ Bed) . ~ ~ ~, - BUILDING LEVEL 3 __._.~ _.. _ _ BUILDING LEYEL 4 _- '-T' - ~ =- - - -•-~- - - 21,000 Sq. Ft. Medical 13,900 Sq. Ft. VFW, (Plus 1,000 Sq. Ft. of Atrium) 2,200 Sq. Ft. Circulation (Medical) • 41,900 Sq. Ft. Total Floor Area 9,500 Sq. Ft. Residential (9-550 Sq. Ft. 1 Bed, 1 Bed, 1-610 Sq. F _ Sq. Ft. Efficiency _ 2-Bed) 29,400 Sq. Ft. YFW _ - - _ 3,000 Sq. Ft. Circulation (VFW) ' 36,200 Sq. Ft. Total Floor Area 8,400 Sq. Ft. Residential (8-550 Sq. Ft. 1 Bed Efficiency 1-525 Sq. 685 Sq. Ft. 1-Bed + 25,300 Sq. Ft. Office 2,500 Sq. Ft. Circulation (Office) ~ ° _.-__. ..7... 24,900 Sq. Ft. Total Floor Area 6,400 Sq. Ft. Office ' 6,600 Sq. Ft. Mechanical - . 1,100 Sq. Ft. Circulation (Office) 8,400 Sq. Ft. Residential (8=550 Sq, Ft. I Bed, Efficiency, 1-525 Sq 685 Sq. Ft. 1 Bed + 2,400 Sq. Ft. Community Room & Laundry (Residentia _ _._ . 1 ' j . _,~ . _ _. . j _ _f ~ • ~ { i C. ~ i T ; ~._ _._ _~ ~ . '_ .I ~ical ° - -~ - ~ ' - ~- -- -- 3 ;~~ j:. 2-1 Bed + Den,'-~ ~ ; i -- ~;----i----s-- ~ ~. { 1 ~ .._ - _ ~ i : ~ ~ ' . . , 1-578 Sq. Ft. ~ ~ - ~ . ~: ~;._ t. 1-Bed,1-430 i , 1-875 S Ft - 2 - - . (-~- r--- q. : ~ : . ' j '_ } , i - I I-578 Sq. Ft. _ ~ " ~ t. I-Bed, 1-430 -~ - ~ _ `~" ~ - " `- 1-875.Sq:_Ft..._.L.. a: i. I f. ^ ~ i F ~__. i_...~ i-345 Sq. Ft. - - __; _ ~ ~.. r.x:~.- .: ~..~ ~..:. Ft. 1. Bed, 1- ~ ° __ _J __...'. ... J --, ~ .. ~ ~ tj ~ jjj .r~~, I tC( rr { 1 ' __.~ _ !__~ I-354 Sq. Ft. • •~ ~._g .. ~--~ --~-- Ft..l Bed, l- _..~ ~ ....:: E ~_~ len) _ ~_~ ~ - ! ~ ' i ~ -•a --~ PROPOSAL: WALKER METHODIST DEVELOPMENT TEAM: Walker Methodist Residence and Health Services, Inc. BRIEF DESCRIPTION: 150 Apartment Units • ~ 83 1 Bdrm. 43 @ 575 s.f. 40 @ 700 s.f. • 67 2 Bdrm. 32 @ 850 s.f. _ 28 @ 925 s.f. 7 @ 1100 s.f. Estimated Bldg. Space 730,000 s.f. 3 levels of parking 576 parking spaces (85.~eserved and leased to elderly project) ~~~-- . IDENTIFICATION OF DEVELOPMENT SITE BOUNDARY: The development would require one parcel along Lake Shore Drive, portions of the Trestman and Schaller and VFW properties, .and the three HRA owned lots. .- • Have met-with Lake Shore Drive Property Committee (prior to redrawing); also with Woodlake Point to hear concerns and ideas. • Nave met with Trestman and Schaller (prior to redrawing). • Have met with VF4J to discuss new placement. MARKETABILITY OF USE, NEED AND LEASE-UP: James McComb. & Associates will address the questions raised by Lee Maxfield. They have indicated their workload would prec]ude their being able to complete the information before the end of January. _~ I. SUMMARY OF ESTIMATED PROJECT COSTS: (see attached) CITY AND HRA ROLE: • Land write-down • City would building parking and lease spaces • SAC and WAC fees- HOUSING ELEMENT FEASIBILITY: • Managed by Wa]ker Methodist • Rents (@ $1.05js.f.) --- 575 z$ 604 700 $ 735 850 $ 893 925 $ 971 1100 $1155 S • ervices include. - Security - Transportation - Food (additional charge) EMPLOYMENT OPPORTUNITIES: 9 Full-time equivalent positions -2-