01-27-1987CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
January 27, 1987
MEMBERS PRESENT: Thomas Harms, Chairman; Don Hassenstab; Joan
Helmberger; Ivan Ludeman; and, Vern
' ~ Luettinger
STAFF PRESENT: Jim Prosser, Executive Director; Steven
Devich, Administrative Services Director;
Bruce Palmborg, Acting Community Development
Director; John Dean, Assistant City Attorney;
and Tom Ferber, City Clerk
The meeting was called to order by Chairman Harms at 7:00
P.M.
APPROVAL OF MINUTES
M/Hassenstab, S/Luettinger to approve the minutes of the
Regular HRA meeting of December 15, 1986, without correction.
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 ELECTION OF OFFICERS FOR THE HOUSING AND REDEVELOPMENT
AUTHORITY. HRA LETTER N0. 1.
Chairperson Harms introduced this item referencing HRA
Letter Number 1.
M/Hassenstab, S/Ludeman to approve and appoint the same
officers as the past year, Thomas Harms as Chairman; Vern
Luettinger as Vice Chairman; and, Joan Helmberger as Secretary.
Motion carried 5-0.
Item #3 CONSIDERATION OF SELECTION OF A DEVELOPER FOR THE GRAHAM
AVENUE SITE (JOINT MEETING OF THE CITY COUNCIL/HRA).
HRA LETTER N0. 2.
Mayor Hamilton called the City Council to order at 7:03
P.M., reconvening the adjourned regular January 26, 1987, City
Council meeting to the January 27, 1987, Joint City Council/HRA
meeting.
HRA Minutes 2 January 27, 1987
Executive Director Prosser stated that the purpose of the
Joint HRA/City Council meeting was to review the Tushie-Derrick
development proposal for the Graham Avenue redevelopment site.
Dick Shaller, President of Big Wheel Auto Stores, speaking
on behalf of Mr. Trestman and himself, stated that the Tushie-
Derrick Landmark Center proposal is a good project because it
satisfies the needs of the VFW, the existing retail stores on the
site, the city's desire for moderate priced housing for seniors,
maintains the retail character of Lyndale Avenue, provides the
best maximum use of the land, and is the best option for the
neighborhood and Lake Shore Drive Condominium. He stated that he
and Mr. Trestman have withdrawn their proposal for the site and
will become partners in the Tushie-Derrick development.
Roger Derrick, representing Lyndale Partners, reviewed the
events which resulted in the Landmark Center development
proposal.
Gary Tushie, Lyndale Partners, reviewed the site plans,
elevation drawings, and scale model of the Landmark Center,
noting the changes in the building plans since it was first
proposed.
Executive Director Prosser reviewed HRA Letter Number 2,
recommending that the staff be authorized to initiate
negotiations on behalf of the HRA with the developers of the
proposed Landmark Center and that staff request the City Council
concur in the selection of Tushie-Derrick as developer and
authorize negotiations on their behalf.
Mayor Hamilton asked if medical offices would be included in
the development and when construction would begin.
Roger Derrick stated a medical tenant had been identified
and construction could begin in 6 months.
Commissioner Helmberger asked how it can be insured that
Richfield's low and moderate income residents would have first
access to the housing units.
Jerry Courteau, Senior Vice Commander of the VFW, stated the
post has asked that no other full service restaurant locate in
the center and the VFW is negotiating to possibly operate a
second restaurant that would be open to the public.
Commissioner Luettinger stated he favors allowing another
restaurant tenant. He asked who would pay for the additional
landscape buffering on the Lake Shore Drive Condominium boundary.
Roger Derrick stated the developer would pay for this
landscaping.
HRA Minutes 3 January 27, 1987
Council Member Ludeman 'stated that additional screening is
necessary and strongly urged the staff and developer to
investigate shifting the footprint of the building 10-12 feet
closer to Lyndale Avenue to provide additional buffer area for
the Lake Shore Drive Condominiums.
Council Member Kirsch asked what is the relationship between
the developers and the VFW.
Roger Derrick responded that the developer would purchase
the VFW property; the VFW would lease space in the development;
and, the VFW would become a limited partner in the development if
its membership approves.
Jerry Courteau stated that the membership had given a vote
of confidence to continue negotiations and will be asked for
formal approval once firm project cost figures have been
determined.
Commissioner Hassenstab inquired about the status of Lake
Shore Drive Condominium Lot 17; the affect of the Tushie-Derrick
proposal on property values at Lake Shore Drive Condominium; the
time frame needed for the Environmental Assessment Worksheet
(EAW); whether other government agencies must review the EAW;
whether the trees to remain has been determined; whether large
semi-trucks will have access to the rear delivery area; what
assist the developer is asking of the HRA; and whether-this
development would affect the status of the Lake Shore Drive
Condominium bonds.
City staff and the developer responded that Lake Shore Drive
Condominium Lot 17 is owned by the Condominium Association; that
an independent appraisal by Brad Bjorklund indicated no negative
affect on property values at Lake Shore Drive Condominium; an
Environmental Assessment Worksheet will take approximately two
months to prepare; other governmental agencies do not review the
EAW. However, if an Environmental Impact Statement is required,
other agencies would review it; the trees to remain have been
determined; semi-trucks cannot drive to the rear of the building
because of the height of the building canopy; the developer is
requesting approximately 2 million dollars in HRA assistance;
and, the development will not affect the retirement of the LHN
bonds.
HRA Chairman Harms asked if the shadow of the Landmark
Center building would project on to the Lake Shore Drive
Condominiums.
Gary Tushie stated that a shadow study indicates the shadow
would not project onto the Lake Shore Drive Condominiums.
HRA Chairman Harms asked if lease covenants would restrict
the times of truck deliveries and questioned if a blank wall
would border the Lake Shore Drive Condominium property.
HRA Minutes 4 January 27, 1987
Roger Derrick indicated the wall would be below grade and
that truck deliveries would be restricted to daytime hours.
Discussion followed regarding the role of the developer and
city in marketing the developer subsidized housing to Richfield
residents.
Betty Bruce, 6615 Lake Shore Drive Condominium, expressed
concern about the buffering between the Landmark Center and the
Lake Shore Drive Condominiums.
Mrs. Moore, Lake Shore Drive Condominium, expressed concern
that the Landmark Center would partially block her view of Wood
Lake.
Fred Moore, Lake Shore Drive Condominium, inquired if there
is a market for additional retail .s pace in the area.
Executive Director Prosser stated that a marketing
consultant indicated that there is a market for the proposed
retail space and that several potential tenants are already
identified.
Thomas Thompson, 6808 Grand Avenue, inquired how much retail
space remains to be leased.
Roger Derrick indicated 37,000 square feet is available.
Orville Rasmussen, 6615 Lake Shore Drive Condominium,
expressed his concerns regarding increased traffic, pedestrian
safety, and property values.
Louise Dahlquist, Presi-dent Pro Tem of the Board of
Directors of the Lake Shore Drive Condominium Association, read a
statement into the record (Clerks File #C-283).
Harold Bolstad, 6615 Lake Shore Drive Condominium,
questioned whether the VFW as a nonprofit organization can invest
in a for profit venture.
Jerry Courteau, Senior Vice Commander of the VFW, responded
that this is legal.
M/Hassenstab, S/Luettinger to close the public hearing.
Motion carried 5-0.
Each city council member and HRA Commissioner spoke in
support of the Landmark Center proposal and thanked the residents
for their letters, comments, and input which influenced the
developers proposal, making it a better project for the city and
the neighborhood.
M/Luettinger,° S/Helmberger to authorize staff to initiate
negotiations on behalf of the HRA with the developers of the
HRA Minutes 5 January 27, 1987
proposed Landmark Center and that staff request the City Council
to concur in the selection of Tushie-Derrick as developer and•
authorize negotiations on their behalf.
Motion carried 5-0.
M/Ludeman, S/Kirsch that the city council concurs with the
HRA in the selection of the developers of the proposed Landmark
Center for the Graham Avenue development site and authorizes
staff to initiate negotiations on behalf of the city council with
Tushie-Derrick.
Motion carried 4-0.
M/Kirsch, S/Ludeman that the city council meeting ad ourn.
Motion carried 4-0.
The city council meeting was adjourned at 9:20 P.M.
Item #~ SCHEDULE FOR FEBRUARY, 1987, HRA MEETING. HRA LETTER
N0. 3.
Executive Director Prosser reviewed HRA Letter Number 3,
concerning a conflict in the meeting date of February 16, 1987.
M/Hassenstab, S/Luettinger to reschedule the February HRA
meeting to February 24.
Motion carried 5-0.
Item #5 DESIGNATION OF OFFICIAL NEMSPAPER FOR 1987. HRA LETTER
N0. 4.
Executive Director Prosser reviewed HRA Letter Number 4,
concerning the designation of an official newspaper for 1987.
M/Hassenstab, S/Helmberger to approve designation of the
Richfield Sun Current as the official newspaper for 1987.
Motion carried 5-0.
Item #6 RESOLUTIONS DESIGNATING OFFICIAL DEPOSITORIES FOR THE
HRA FOR THE YEAR 1987. HRA LETTER N0. 5.
Executive Director Prosser Teviewed HRA Letter Number 5,
designating official depositories for the HRA for the year 1987.
M/Luettinger, 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 6 January 27, 1987
HRA RESOLUTION N0. 296
RESOLUTION DESIGNATING THE FIRST WESTERN BANK A DEPOSITORY
OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY FOR
RICHFIELD FOR THE YEAR 1987 AND APPROVING COLLATERAL
Motion carried 5-0. This resolution appears as Resolution
No. 296 in Resolution Book No. 3.
M/Luettinger, 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 RESOLUTION N0. 297
A RESOLUTION DESIGNATING CERTAIN SAVINGS ANO
LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES
FOR THE INVESTMENT OF THE HOUSING AND REDEVELOPMENT
AUTHORITY FUNDS IN 1987
Motion carried 4m0. Chairman Harms abstained. This
resolution appears as Resolution No. 297 in Resolution Book No.
3.
M/Luettinger, 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 RESOLUTION N0. 298
A RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS
AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND
REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1987
Motion carried 5-0. This resolution appears as Resolution
No. 298 in Resolution Book No. 3.
Item #7 CLOSED EXECUTIVE SESSION TO DISCUSS LAWSUIT SETTLEMENT.
Chairman Harms adjourned the public HRA meeting at 9:35 P.M.
and convened an Executive Session of the HRA.
Attorney John Dean described the conditions of a pending
litigation settlement concerning the Gordon Strom property.
Chairman Harms reconvened the public HRA meeting at 9:45
P.M.
HRA. Minutes
7
January 27, 1987
Item #8 SETTLEMENT OF LAMSUIT FOR PROPERTY AT 6520, 6530, 6532,
6540, 6544 LYNDALE AND 729 1~EST 65Th STREET. HRA LETTER
N0. 6.
Attorney John Dean reviewed HRA Letter Number 6, concerning
the settlement of a lawsuit for property at 6520, 6530, 6532,
6540, 6544 Lyndale and 729 West 65th Street. Commissioners
approved a total settlement of $975,000 (including $700,000
already paid).
M/Ludeman, S/Luettinger to approve the recommended
settlement as contained in HRA Letter Number 6.
Motion carried 5-0.
Item #9 CLAIMS AND PAYROLLS
M/Luettinger, S/Hassenstab that the following Claims and
Payrolls be approved:
FIRST WESTERN BANK
Checks 6806/6829, 7598/7626 $1,182,702.43
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by
Date Approved: 3/16/87
5tev~n L. Devicf~
Acting City Clerk
unanimous consent at 9:46 P.M.
r i
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Thomas Harms Chairman
Jamds D. Prosser
.e~cutive Director