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04-20-1987CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY APRIL 20, 1987 MEMBERS PRESENT: Thomas Harms, Chairman; Ivan Ludeman; Vern Luettinger; and Don Hassenstab (left the meeting at 8:30 p.m.). STAFF PRESENT: James Prosser, Executive Director; Bruce Palmborg, Acting Community Director; - Thomas Ferber, City Clerk; and Clayton LeFevere, City Attorney. The meeting was called to order by Chairman Harms at 7:00 p.m. APPROVAL OF MINUTES M/Ludeman, S/Luettinger to approve the minutes of the. Regular HRA Meeting of March 16, 1987. Motion carried 4-0. 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 AUTHORIZATION TO E%ECUTE AGREEMENT WITH ERASER INDEPENDENT LIVING PROJECT, INC. RE SITB ACQUISITION HRA LETTER NO. 9. Executive Director Prosser reviewed HRA Letter No. 9 recommending that the HRA authorize the chairperson and the Executive Director of the HRA to execute the "Housing Project Agreement" with Louise Whitbeck Fraser Independent Living . Project, Inc. HRA Meeting' Minutes 2 April 20, 1987 M/Luettinger, S/Ludeman 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 NO. 299 AUTHORIZATION TO EXECUTE AGREEMENT BETWEEN HRA AND FRASER Motion carried 4-0. This resolution appears as Resolution No. 299 in Resolution Book No. 3. Item ~3 AUTHORIZATION TO EXECUTE NOTICES OF ADVERSE CLAIMS WITH RESPECT TO THE HOME REHABILITATION DEFERRED LOAN PROGRAM. HRA LETTER NO. 10 Executive Director Prosser reviewed HRA Letter No. 10 recommending that the HRA authorize the Executive Director to execute Notices of Adverse Claim with respect to the Home Rehabilitation Deferred Loan Program to enable the HRA to file a lien for the property without the Owners Duplicate of Title. City Attorney LeFevere reviewed issues related to the Owners Duplicate of Title and the reasons for executing a Notice of Adverse Claim. M/Hassenstab, S/Ludeman 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 NO. 300 RESOLUTION AUTHORIZING REHABILITATION DEFERRED LOAN PROGRAM NOTICES OF ADVERSE CLAIMS Motion carried 4-0. This resolution appears as Resolution No. 300 in Resolution Book No. 3. Item ~4 AUTHORIZATION TO INITIATE DEMOLITION AND SITE CLEARANCE AT 6514 IRVING AND 6632 FIFTH AVENUE PROPOSED SITES FOR 87/88 VO-TECH PROJECTS. HRA LETTER NO. 11 Executive Director Prosser reviewed HRA Letter No. 11 recommending that the HRA authorize the demolition and site clearance activities at 6514 Irving Avenue and 632 Fifth Avenue to prepare the sites for initiation of the 1987/88 Vo-Tech Projects. He stated that Doty and Sons, Inc. submitted the lowest total bid in the amount of $13,825 to perform the work. HRA Meeting Minutes 3 April 20, 1987 M/Hassenstab, S/Luettinger to authorize Dots and Sons, Inc. to perform the site clearance activities at 6514 Irving Avenue for $7,550 and 6632 Fifth Avenue for $6,275; all in accordance with the bid and specifications. Motion carried 4-0. Item #5 REVIEW OF A PROPOSED ZONING DISTRICT AMENDMENT FOR A PORTION OF THS ILN. HRA LETTER NO. 12. Executive Director Prosser reviewed HRA Letter No. 12 regarding the text of a proposed new zoning district ordinance identified as C-3 High Density Commercial which would be applied to the ILN area south of 77th Street between 35W and the railroad tracks. Arijs Pakalns, BRW, reviewed and summarized ILN Redevelopment Project Technical Memorandum No. 11 which contained a draft of the proposed C-3 High Density Commercial ordinance. He stated that most of existing buildings within the district would become nonconforming uses under the terms of subdivision 3. Subdivision 5 would establish a minimum floor area ratio (FAR) of 0.75 for the district. Using a model, Mr. Pakalns demonstrated the FAR concept. He reviewed subdivision 8 which would prohibit buildings of a height which would cast a shadow on land occupied by single-family and two-family dwellings between the hours of 9:00 a.m. and 3:00 p.m. Mr. Pakalns then reviewed the parking standards of the district noting that the draft will be corrected to state one space for every 200 square feet of gross floor area for retail businesses; one space for every employee on maximum shift for restaurants and taverns; and, one space for every employee on the maximum shift for hotels. Commissioner Ludeman stated that the minimum FAR would require a density that would not allow the existing businesses to remain in the area and asked what would happen to these businesses. Arijs Pakalns responded that the businesses would remain as nonconforming and they could either act as a developer to redevelop, move into a new development, or relocate. Executive Director Prosser stated that this decision may foster change which may necessitate the relocation of these businesses. He stated that sufficient development to generate tax increment dollars for public improvements was necessary t.o carry out the ILN Redevelopment Plan. HRA Meeting Minutes 4 April 20, 1987 Chairperson Harms stated that change will occur in the area even if the city does nothing. He stated that this ordinance would provide control and provide the density necessary for public improvements. Otherwise, the area could end up with car dealers and food stores which would generate traffic and environmental issues without generating enough funds for public improvements to mitigate the problems. Executive Director Prosser stated that the property in the area will be increasing in value and that many of the existing businesses are not in a position to invest in improvements creating a disinvestment cycle. Commissioner Ludeman stated that a minimum FAR is necessary to keep out the Cub food store type of development but that the minimum 0.75 was too high-a density and would eliminate the existing businesses. He stated that these businesses are part of the fabric of the community of Richfield which should be maintained and that he opposed the minimum FAR of 0.?5 because it would effectively eliminate the possibility of the existing businesses to remain in the area. Chairperson Harms stated that the land is valuable and high quality development can occur there which can become the cornerstone for Richfield. He stated that the 0.75 FAR was conservative and that most developments in the 494 corridor have a higher density than 0.75. Executive Director Prosser stated that the proposed Landmark Center in the LHN has a FAR of 1.2. He stated that he agreed that the neighborhood businesses are a part of the community which is why Lyndale Avenue north of 77th Street is being maintained as a neighborhood retail area. However, the freeway strip needs to be developed to increase the tax base and to allow a greater compatibility with the neighborhood by providing the tax increment to finance mitigating public improvements. Chairperson Harms stated that the economy is becoming more office/service oriented and that if this area develops with these areas it will bring many more people to the area to live, work, and shop thus benefiting the community and Richfield's small businesses. City Attorney LeFevere stated that a decision should not be predicated on the existing businesses because market forces will dictate a change in the future dictating a turnover just as businesses turnover in the LHN area. Commissioner Hassenstab asked if the C-3 zoning district has been upheld in the courts, what happens if the owner of a nonconforming use sells the property, and if the FAR concept is a commonly used concept. HRA Meeting Minutes 5 April 20, 1987 City Attorney LeFevere stated that the zoning ordinance allows the creation of the C-3 district and to his knowledge had not been the subject of any court decisions. He stated that the owner could sell the property and the use can continue as nonconforming. Arijs Pakalns stated that the FAR concept is frequently used in zoning ordinances. Executive Director Prosser stated that this was a significant policy decision for the future of the area and it was important that if the area is to be redeveloped that the city is in a position to respond to developers proposals when the market window of opportunity occurs. M/Luettinger, S/Hassenstab to recommend that the city council establish a new C-3 High Density Commercial Zoning District as proposed and to rezone the area south of 77th Street in the ILN between I35W and the railroad tracks to C-3. Motion carried 3-1. (Ludeman opposed). 1 Item #6 COMMISSIONERS DISCUSSION ITEMS 6A. 920 W. 66th Street Commissioner Ludeman questioned why the sellers of 920 66th Street had to repay the HRA $22,000 and whether this type of arrangement was really beneficial to low income people that HRA is attempting to assist. Commissioner Hassenstab left the meeting at this time (8:30 p.m.) Bruce Palmborg, Housing & Redevelopment Coordinator, stated that the HRA has a lien on the property for the difference between the purchase price and market value. This lien must be satisfied at the time of resale unless the sale is to another qualified low or moderate income family. City Attorney LeFevere stated this provides low cost housing for the owner and prevents a quick large capital gain at the expense of the public. 6B. Vo-Tech Home Pro.iects Commissioner Luettinger stated that the process of completing the Vo-Tech houses should be accelerated to minimize the disruption to the adjoining neighborhood. HRA Meeting Minutes 6 April 20, 1987 Executive Director Prosser stated that the construction is tied to the cycle of the Vo-Tech school year. Bruce Palmborg, H & R coordinator, stated that he would investigate the possibility of finishing the exterior first and other ideas to speed up the process to make it less disruptive. Item #7 REPORTS OF E%ECUTIVE DIRECTOR Executive Director Prosser stated that CDR has hired Towle Real Estate Co. for the purpose of either selling or finding a partner for a joint venture for the Cloverleaf site. He provided a copy of a recent newspaper article regarding this action by CDR. He stated the City would take a cooperative approach to the marketing of the site. Executive Director Prosser stated that negotiations continue with the developers of the proposed Landmark Center with the amount of the City's financial participation still an issue. Executive Director Prosser stated that construction activity for the Hampton Inn Project was now in progress. Item #8 CLAIMS AND PAYROLLS M/Ludeman, S/Luettinger that the following claims and payrolls be approved: FIRST WESTERN BANK Checks 6846/6856, 7689/7721 ~ $142,648.33 Motion carried 3-0. HRA Meeting Minutes ADJOURNMBNT 7 April 20, 1987 M/Ludeman, S/Luettinger that the meeting ad.iourn. Motion carried 3-0. 1 The meeting was adjourned at 8:40 Date Approved: 5/19/87 Thomas P. Ferber City Clerk p.m.. i~ omas Harms Chairman ,~`~~ ~ James D. Prosser ~cutive Director