03-16-1987
CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
MARCH 16, 1987
MEMBERS PRESENT: Thomas Harms, Chairman; Joan Helmberger;
Ivan Ludeman; and Vern Luettinger.
STAFF PRESENT: James Prosser, Executive Director; Bruce
Palmborg, Acting Community Development
Director; Tom Ferber, City Clerk; and
Clayton LeFevere, City Attorney.
The meeting was called to order by Chairman Harms at 7:04
p.m.
APPROVAL OF MINUTES
M/Ludeman, S/Helmberger to approve the minutes of the
Regular HRA Meeting of January 27, 1987; and the Special HRA
Meeting of February 24, 1987.
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Motion carried 4-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THB HRA ON ANY ITBM
NOT LISTED ON THB AGENDA.
No one wished to"address the HRA.
Item #2 AUTHORIZATION TO MARE LEASE GUARANTEE PAYMENT OF
$9,807.88 TO RICHFIELD SHOPPES DEVBLOPBRS (RSD) HRA
LETTER NO. 7
Executive Director Prosser reviewed HRA Letter No. 7
regarding the payment of $9,807.88 to Richfield Shoppes
Developers for rent nat paid by Pet Cetera as provided for by the
rent guarantee terms of the HRA's relocation agreement with Pet
Cetera.
Commissioner Ludeman asked if this was the last payment
under this agreement.
HRA Meeting Minutes 2 March 16, 1987
Executive Director Prosser stated that the 25-month rent
guarantee period expired in January, 1987 and that this payment
ended the relocation benefits. He stated various technical
assistance had been provided to Pet Cetera to help them to make
the business viable.
M/Ludeman, S/Luettinger to authorize a rent guarantee
payment to Richfield Shoppes Developers in the amount of
$9,807.88.
Motion carried 4-0.
Item #3 AMENDMSNT3 TO THE CONTRACT FOR PRIVATE DEVELOPMBNT WITH
PALSCO, INC. DEVELOPER OF THB HAMPTON INN, 77TH STREET
AND LYATDALE AVENUE, ILN AREA. HRA LETTER NO. 8
Executive Director Prosser reviewed HRA Letter No. 8
regarding proposed amendments to the contract for private -
development with PALSCO, Inc. developer of the Hampton Inn, 77th
Street and Lyndale Avenue. He stated that the revisions included
an increase in parking spaces, a swimming pool, and amendment of
the dates regarding construction performance and the assessment
agreement.
Acting Community Development Director Palmbox~g reviewed the
modifications to the site plan.
M/Luettinger, S/Helmberger to amend the contract for private
development with PALSCO, Inc. as follow:
Section 5.2 Completion of Construction.
Change the completion of construction date from December
31, 1987 to December 31, 1988. Change the 50 percent
completion date from December 31, 1986 to December 31, 1987.
Section 7.1 Real Property Taxes
(a) Change the dates in Exhibit E, the Assessment Agreement
and Certification of Assessor as follows:
Page 1 and 2, 1. The minimum market value of $2,060,000
shall be assessed January 2, 1989 rather than as stated
January 2, 1988. The minimum market value of $2,660,000
shall be assessed January 2, 1990 rather than as stated
January 2, 1989. The minimum market value of $3,402,000
shall be assessed as of January 2, 1991 and until the last
date on which the tax increment will no longer be remitted
to the HRA rather than January 2, 1990 as stated.
HRA Meeting Minutes
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March 16, 1987
Exhibit C Project Plans for the site which indicates 135
parking spaces be modified to show 147 spaces and the
addition of an attached structure of approximately 1,536
square feet to house a swimming pool. The revised site plan
is attached.
Motion carried 4-0.
Item #4 CLAIMS AND PAYROLLS
M/Ludeman, S/Helmberger that the following Claims and
Payrolls be approved:
FIRST WESTERN BANK
Checks 6844,6845/7669,7686 $59,324.10
Motion carried 4-0.
COMMISSIONERS DISCUSSION ITEMS
Commissioner Ludeman stated his concern that if the
I494JFrance Avenue interchange is used as a standard for I-494
interchanges, the ILN 77th Street plan could be jeopardized if
the I494/Lyndale Avenue interchange was built to this standard.
Executive Director Prosser stated that the I494 consultant
BRW, has not indicated any such interchange configuration is
being considered at Lyndale Avenue.
REPORT OF E%ECUTIVE DIRBCTOR
CDR Project Status
.Acting Community Development Director Palmborg stated that
CDR is still interested in developing their site and have been
seeking a prime tenant, a lender, and a co-developer.
Executive Director Prosser stated CDR is seeking a marketing
firm to assist in marketing the development and have also
indicated they are exploring different development concepts such
as mixed use for the site. He stated that mixed uses including
residential and commercial may not generate sufficient tax
increment to support the necessary public improvements.
Commissioner Ludeman asked if the CDR notice provision for
the area between Emerson Avenue and Lyndale Avenue south of 77th
Street was still in effect.
HRA Meeting Minutes
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March 16, 1987
City Attorney LeFevere stated he would determine the status
of this provision.
Graham Avenue Development (GAD) Status
Acting Community Development Director Palmborg stated that
the developers have .increased their request for subsidy from 2
million to 3.5 million. He stated this would necessitate a
longer term of payback on the tax increment bonds and bring forth
the question as to approval of this project under these less
desirable terms.
Executive Director Prosser stated that it would be position
of the HRA and City to maintain a negotiation position of a 2
million dollar subsidy and a T.I.F. bond term of less than 10
years.
70th Street and Penn Avenue Site
City Attorney LeFevere stated that the lot at 70th Street
and Penn Avenue was available from Hennepin County for $24,000
with a possible lower negotiated price because of soil
conditions. He stated a Dr. Don Johnson was interested in
building a dentist office on the .site.
Executive Director Prosser stated that the HRA could sell
the property to Dr. Johnson for development. He stated the
property would require rezoning because it is now zoned
residential.
It was the consensus of the HRA commissioners that
negotiations proceed to purchase the property so that potential
development occur on the site.
Appointment of a Community Development Director
Executive Director Prosser announced that Byron Wallace has
been appointed Community Development Director effective March 30,
1987.
ADJOURNMENT
The meeting was adjourned by
Date Approved : _ Apri 1 20, 1987
~~'~~~~ f
Thomas P. Ferber
City Clerk
a imous cone t t 7:37 p.m.
Thomas Harms Chairman
\~~~~
James D. Prosser
Ex autive Director
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