08-17-1987CITY OF RICHFIELD, MINNESOTA
HOUSING ANO REDEVELOPMENT AUTHORITY
AUGUST 17, 1987
MEMBERS PRESENT: Thomas Harms, Chairman; Joan Helmberger;
Ivan Ludeman; and, Vern Luettinger.
Commissioner Harms announced that
Commissioner Hassenstab was out of town
and would be absent this evening.
STAFF PRESENT: Steven Devich, Acting Executive Director;
Byron Wallace, Community Development
Director; Bruce Palmborg, Housing and
Redevelopment Coordinator; Tom Ferber,
City Clerk; Bruce Nordquist, Housing
Specialist; Cathy Jones, Community
- Development Aide; 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/Helmberger to approve the minutes of the
Regular HRA Meeting of June 15, 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.
~._ ~
HRA Meeting_Minutes -2- August 17, 1987
Ite® #2 AUTHORIZATION TO EXECUTE CONTRACTS WITH SOUTH HENNEPIN
VOCATIONAL TECHNICAL SCHOOL FOR 1987/88 PROJECTS.
HRA LETTER N0. 17.
Acting Executive Director Devich reviewed HRA Letter No. i7
recommending that the HRA adopt a resolution authorizing:
1) The execution of
$61,057, for the
Irving Ave. So.
2) The execution of
$53,800, for the
at 6632-5th Ave.
3) The execution of
the structure at
for $4,000, sale
excavation, pend.
the Vo-Tech contract in the amount of
1987-88 remodel project at 6514.
the Vo-Tech contract in the amount of
1987-88 new construction project
So.
an agreement for acquisition of
6301 Portland Ave. So. from the City
of the garage and backfilling the
ing City Council authorization.
Chairperson Harms inquired whether the shortening of the Vo-
Tech program from 12 months to 9 months would hinder the timely
completion of the project and how the cost of the house is
determined.
Housing and Redevelopment Coordinator Palmborg stated that
the Vo-Tech is aware of the problems encountered at 6820 12th
Avenue and will be able to complete the project in 9 months. He
stated meetings have been held with the neighbors of the two new
projects to explain the projects and their timing.
Dave Smith, Vo-Tech Supervisor of Building Trades, reviewed
the elements of arriving at a cost for the houses and reviewed
the elements of the Vo-Tech program.
Commissioner Luettinger asked if the reduction of the
program from 12 to 9 months increases the cost.
Dave Smith responded that it increases the cost since
contractors rather than students would do a portion of the work.
M/Ludeman, S/Helmberger at the following resolution be
adopted; that it be spread in the resolution book and that it be
made part of these minutes:
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RESOLUTION N0. 305
RESOLUTION AUTHORIZING CONTRACTS WITH
VO-TECH AND AN
AGREEMENT TO ACQUIRE STRUCTURE FROM CITY
Motion carried 4-0. This resolution appears as Resolution
No. 305 in Resolution Book No. 3.
HRA MeetingJMinutes -3- August 17, 1987
Item #2 AUTHORIZATION TO ACQUIRE 619 EAST 70TH STREET AND 6840
HUM8OLDT AVENUE TO PROVIDE AFFORDABLE HOUSING. HRA
LETTER N0. 18.
Acting Executive Director Devich reviewed HRA Letter No. 18
recommending that the HRA adopt a resolution to authorize the
Chairperson and Executive Director to enter into a purchase
agreement and take other actions necessary for the HRA to acquire
property at 619 East 70th Street for $41,920 and the property at
6840 Humboldt Avenue for $41,400.
M/Luettinger, S/Ludeman that the following resolution be
adopted; that it be spread in the resolution book and that it
made part of these minutes:
RESOLUTION N0. 306
RESOLUTION AUTHORIZING THE ACQUISITION OF
619 E. 70TH STREET AND 6840 HUMBOLDT AVENUE
Motion carried 4-0. This resolution appears as Resolution
No. 306 in Resolution Book No. 3.
Item #4 AUTHORIZATION TO INITIATE NEGOTIATIONS FOR THE PURCHASE
OF 7312 LYNDALE AVENUE TO PROVIDE FOR THE DEVELOPMENT
OF MARKET RATE -SINGLE FAMILY HOUSING. HRA LETTER N0.19
Housing and Redevelopment Coordinator Palmborg reviewed HRA
Letter No. 19 recommending that the HRA authorize the Executive
Director to negotiate an option agreement for the purchase of
7312 Lyndale Avenue and initiate the process to identify a
developer to build market rate single family housing on the site.
Chairperson Harms asked if any developers had approached the
Bergholt family regarding the property.
Housing Specialist Nordquist stated that several interested
realtors had contacted the Planning Division regarding this
property.
Commissioner Helmberger asked if 60 days would be a
sufficient time to attract a good developer.
Housing & Redevelopment Coordinator Palmborg stated that if
it became apparent that 60 days was nat enough time an extension
could be granted.
HRA Meeting_Minutes -4- August 17, 1987
Commissioner Luettinger asked if relocation benefits would
be given to the Bergholt family.
Housing and Redevelopment Coordinator Palmborg stated that
they have. requested participation in the Voluntary Acquisition
Program and no relocation benefits would be provided.
Commissioner Ludeman stated it is unacceptable to allow 4
houses to be built on the site as suggested because it would
create very small lots not in character with the neighborhood.
Housing and Redevelopment Coordinator Palmborg stated that
four lots with four houses had been proposed because of the
economics of purchasing and developing the site.
Chairperson Harms suggested that staff approach the adjacent
property owners to see if they would be interested in purchasing
a portion of this land. He also suggested that staff approach
the property owner to the north to see if they would be
interested in selling additional land so that larger lots could
be created.
Housing and Redevelopment Coordinator Palmborg stated that
staff would explore these options and inform the HRA of their
feasibility.
Commissioner Ludeman stated it would be preferable to create
three lots of 75 feet width for three houses.
M/Ludeman, S/Luettinger to authorize the Executive Director
to ne_otiate an option agreement to purchase 7312 Lvndale Avenue
and initiate the process_to_ identify a developer within 75 days.
Motion carried 4-0.
Item #5 AUTHORIZATION TO MOOIFY ELEMENTS OF THE R~ICHFiELO FLOOD
GRANT PROGRAM. HRA LETTER N0. 20.
Acting Executive Director Devich reviewed HRA Letter No. 20
regarding recommended modifications to the Richfield Flood Grant
Program.
Chairperson Harms suggested that the income limits remain at
$21,300 (80X of median income) but that priority be given to the
lowest income applicants.
Housing and Redevelopment Coordinator Palmborg stated this
could be done if Hennepin County has no objections.
HRA Meeting Minutes -5- August 17, 1987
It was the consensus of the HRA to direct staff that the
income limit eligibility remain at 80~ of the median as
determined by Section 8 standards and that priority be given to
the lowest income applicants.
M/Ludeman, S/Harms that the following resolution be adopted;
that it be spread in the resolution book and that it be made part
of these minutes:
RESOLUTION N0, 307
RESOLUTION AUTHORIZING MODIFICATIONS TO RICHFIELD
FLOOD GRANT PROGRAM
Motion carried 4-0. This resolution appears as Resolution
No. 307 in Resolution Book No. 3.
Item #6 COMMISSIONERS DISCUSSION ITEMS
Chairperson Harms requested that staff make a higher
priority of addressing the need for redevelopment of the 66th
Street and Penn Avenue area.
Commissioner Ludeman suggested that staff investigate the
acquisition of three homes on the east side of the 6500 block of
Emerson Avenue adjacent to the Coach Homes.
Housing Specialist Nordquist reviewed past investigation of
acquiring those properties.
Commissioner Ludeman stated that staff should also look at
acquiring 7300 1st Avenue and remove the home because of Ironic
flooding problems.
Housing & Redevelopment Coordinator Palmborg stated the HRA
would then have no way to recover it's costs.
Chairperson Harms suggested this would be a more appropriate
issue for the City rather than the HRA.
Commissioner Luettinger asked about the status of the
Landmark Project.
Community Development Director Wallace reviewed the status
of the negotiation process on the Landmark Center project and
stated no agreement had been reached,
HRA Meeting Minutes
-6-
August 17, 1987
Item #7 REPORTS OF EXECUTIVE DIRECTOR
None.
Item #8 CLAIMS AND PAYROLLS
M/Ludeman, S/Helmberger that the followinc~~claims and
payrolls be approved:
FIRST WESTERN BANK
Checks 6904-6910, 7834-7851 $497,206.14
Motion carried 4-0.
ADJOURNMENT
M/Harms, S/Helmberger that the meeting ad ourn.
Motion carried 4-0.
The meeting was adjourned at 7:55 p.
Date Approved: 9/21/87
arms
inomas N. Ferber
City Clerk
aYrman
sceveg~ L. uevlCn
Acting Executive Director
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