02-16-1988CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
FEBRUARY 16, 1988
MEMBERS PRESENT: Thomas Harms, Chairman; Joan Helmberger;
Donald Hassenstab; Vern Luettinger; and
Ivan Ludeman (arrived at 7:05 p.m.).
STAFF PRESENT: Steven Devich, Acting Executive Director;
James Prosser, Executive Director
(arrived at 7:05 p.m.); Gary Tushie,
Jerry Sovell and Mark Hauge, Stuart
Corporation; Bruce Palmborg, Housing
and Redevelopment Coordinator; and Keith
Baker, Lincoln Companies.
The meeting was called to order by Chairman Harms at
7:01 p.m.
APPROVAL OF MINUTES
M/Hassenstab, S/Helmberger to approve the minutes of the
Regular HRA Meeting of January 19, 1988.
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 #6 REQUEST TO MODIFY THE INCOME LIMIT REQUIREMENTS FOR THE
REHABILITATION DEFERRED LOAN PROGRAM AND THE HOUSE
DOCTOR ENERGY PROGRAM. HRA LETTER N0. 13.
At this time, Item ~~6 was taken out of order.
Acting Executive Director Devich reviewed HRA Letter No. 13
concerning a request to modify the income limit requirements for
the Rehabilitation Deferred Loan Program and the House Doctor
Energy Program.
Commissioner Hassenstab questioned the procedural aspects of
the program and of the HRA's experience with these loans.
Housing and Redevelopment Coordinator Palmborg responded that the
city had been very successful in its Loan Program.
~~
HRA Meeting Minutes -2- February 16, 1988
M/Hassenstab, S/Luettinger
RESOLUTION AUTHORIZING MODIFICATION TO INCOME REQUIREMENTS FOR
REHABILITATION AND ENERGY PROGRAMS
Motion carried 4-0. This resolution appears as Resolution
No. 317 in Resolution Book No. 3.
Item #7 CLAIMS AND PAYROLLS
M/Luettinger, S/Helmberger that the following claims
and payrolls be approved:
FIRST WESTERN BANK
~-
Checks 697?/69799 7996/8008 $x,111,863.16
Motion carried 5-0.
Item #2 PRESENTATION BY GARY TUSHIE ON STATUS TO IDENTIFY A
DEVELOPER. PARTNER FOR THE GRAHAM AVENUE DEVELOPMENT
SITE. HRA LETTER N0. 9.
• Gary Tushie made a presentation to the HRA concerning the
status of the Landmark Project. In his report he indicated that
he had terminated his business relationship in that project with
Roger Derrick, and that he had signed an agreement forming
another partnership with Stuart Corporation. Mr. Tushie
indicated that the central components of the Landmark Project,
including design and mix of tenants, would remain essentially the
same as was previously approved, with the exception that the VFW
would no longer be located in the project.
Chairman Harms asked if there was a signed agreement between
Stuart Corporation and Gary Tushie for the project. Gary Tushie
responded that there was. Chairman Harms asked what was the
timeframe to complete the developers agreement, and Mark Hauge of
Stuart Corporation responded that they would begin to initiate
developing immediately and that the relocation of the current
businesses would be the key aspect of that work.
RESOLUTION N0. 317
HRA Meeting Minutes -3- February 16, 1988
Commissioner Ludeman asked Stuart Corporation
representatives to respond to a Supreme Court decision wherein
the zoning of the land associated with the Stuart Corporation
project some twelve years ago was changed and Mr. Ludeman
indicated that he would not support the same type of situation
for rezoning of the Lakeshore Drive lot involved in the Landmark
project if it could not be acquired voluntarily by the parties.
Item #3 CONSIDERATION OF SCHEDULE FOR OBTAINING PROPOSALS FOR
DEVELOPMENT OF THE GRAHAM AVENUE SITE AND ANTICIPATED
TIMETABLE FOR ACTION. HRA LETTER N0. 10.
~~
Executive Director James Prosser reviewed HRA Letter No. 10
concerning consideration of a schedule for obtaining proposals
for the development of the Graham Avenue site and anticipated
timetable for action.
Commissioner Helmberger questioned Executive Director
Prosser concerning the issue of traffic in the project area.
Executive Director Prosser responded that traffic was a matter
directly related to the proposed uses in the area, and would be
best viewed with the specific types of enterprises to be located
in the project.
There was general discussion concerning the timetable of the
project development if there was a switch to a different
developer at this time. Commissioner Ludeman asked if there was
a possibility of downscaling the project at this time. Gary
Tushie responded that downscaling was not a possibility with the
current ten-year maximum pay back period on the financing
component of the project.
Chairman Harms addressed the HRA Commissioners, stating that
there were two options to look at: 1) put the Tushie-Stuart
partnership on hold and look for RFP's or 2) continue to work
with the Tushie-Stuart firm and put the RFP's on hold. Mr. Harms
indicated that he was pleased to see the financial aspect of the
partnership strengthened with the addition of Stuart Corporation
and that it may not be in the best interest of the HRA to place
everything aside at this point and to seek requests for proposals
from different developers.
M/Harms, S/Luettinger
at this point, in favor of
partnership, provided that
to the HRA on the Landmark
a more thorough update be ~
recommendation at that time
with the Tushie-Stuart Cori
Motion carried 5-0.
that the HRA defer action on the RFP's
continuing work with the Tushie-Stuart
the staff report progress each month
development, and after a 60 day period
presented to the HRA, including a staff
regarding whether to continue to_work
oration or to seek RFP's.
HRA Meeting Minutes -4- February 16, 1988
Item #4 CONSIDERATION OF A RESOLUTION APPROVING A
DEVELOPERS AGREEMENT KITH THE LINCOLN COMPANY FOR
DEVELOPMENT OF THE OLD CEDAR LIQUOR STORE SITE.
HRA LETTER N0. 11
Executive Director Prosser reviewed HRA Letter No. 11
concerning consideration of a resolution approving a developers
agreement with the Lincoln Company for the development of the old
Cedar Liquor Store site.
Commissioner Hassenstab described the process involved in ~,
the financial aspect of the project as he understood it and asked
about the timing of the tax payments to CDP Corporation.
Executive Director Prosser responded that Mr. Hassenstab
correctly interpreted the project's financial component and that
there would indeed be a delay of up to two years on the first tax
payments to CDP. He went on to add that that issue was
understood by all the parties involved.
Commissioner Luettinger asked when fiscal disparities would
take effect with this project. Executive Director Prosser
responded that 20X would immediately be contributed.
Chairman Harms and HRA Commissioners were concerned about
the financial warranty or capability of Mr. Malinski with respect
to the project and were concerned as to how CDP would stand
behind Malinski in terms of a financial commitment to the
project.
Mr. Palmborg responded that a fifth draft of the developers
agreement provided for Mr. Malinski to be named in the agreement
instead of CDP, which was a tax benefit consideration for Mr.
Malinski. He went on to add that it was his understanding that
Mr. Malinski was a primary holder of stock in the Corporation.
There was general discussion that there be a direct connection
between CDP Corporation and Mr. Malinski with respect to the
financial obligations of the developers agreement.
M/Ludeman, 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 with the stipulation that staff
exercise due diligence in establishing the financial capacity of
Mr. Malinski and that the developers agreement not be executed
until the-HRA is presented with complete information concerning
the _transfer agreement: -
HRA Meeting Minutes -5- February 16, 1988
RESOLUTION N0. 318
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
RESOLUTION APPROVING THE CONTRACT FOR PRIVATE REDEVELOPMENT WITH
THE LINCOLN COMPANIES
Motion carried 5-0. This resolution appears as Resolution
No. 318 in Resolution Book ~~3.
Item #5 CONSIDERATION OF A RESOLUTION APPROVING THE SALE OF
PROPERTY (CEDAR AVENUE SITE). HRA LETTER N0. 12
Chairman Harms indicated that this item was directly related
to the previous developers agreement.
Larry Wozniczka, 6744 Wentworth Avenue, questioned the
square foot price of the property being offered for sale. Bruce
Palmborg stated that the price of $3 per square foot compares
favorably with other properties similarly located.
M/Helmberger, S/Luettinger 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. 319
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
RESOLUTION RELATING TO THE SALE OF CERTAIN LAND LOCATED WITHIN
THE CEDAR AVENUE BUSINESS AREA REDEVELOPMENT PROJECT.
Motion carried 5-0. This resolution appears as Resolution
No. 319 in Resolution Book No. 3.
...~ ADJOURNMENT
Chairman Harms adjourned
8:05 p.m.
City Clerk
the meeting consensus at
~'
G U ~ ~~0"
~~~ homas Harms Chairman
r
J me~s D. Prosser
E cutive Director
Date Approved: 3/21/88