04-17-1989CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
April 17, 1989
MEMBERS PRESENT: Thomas Harms, Chairman; Joan Helmberger;
Ivan Ludeman; Vera-Luettinger; and Edwina
Garcia.
STAFF PRESENT: James Prosser, City Manager; Steven
Devich, Administrative Services Director;
Byron Wallace, Community Development
Director; John Dean, City Attorney; Bruce
Palmborg, Housing & Redevelopment
Coordinator; and Bruce Nordquist, Housing
Supervisor.
Council Member Martin Kirsch was present in the audience.
The meeting was called to order by Chairman Harms at 7:08
p.m.
1
APPROVAL OF MINUTES
M/Ludeman, S/Luettinger to approve the minutes of the
Regular HRA Meeting on February 21, 1989.
Motion carried 5-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
Ray Tharp, 3732 Lyndale Avenue South, the owner of the
Arby's restaurant building at 65th and Penn Avenue South,
addressed the HRA. He stated that the building has been sitting
vacant for some twenty-five months. He added that previously,
the Planning Commission and the City Council unanimously agreed
to permit the construction of two solariums onto that building.
However, neither would approve a drive-up window. Mr. Tharp has
a willing tenant who would put in a restaurant in that site if a
drive-up window would be permitted. However, without the drive-
up window, there is no interest in the property for restaurant
lease. He added that the property now has some $22,000 in back
taxes and that his mortgage has been foreclosed.
Mr. Tharp stated that in 1982 the site was approved for a
drive-up window. However, they chose not to put one in at that
time. He concluded by saying that they need the drive-up window
and they need help in resolving their problem.
HRA Meeting Minutes
Chairman Harms said that
situation the Tharps are in.
process of being redeveloped.
taxpayers more money to purch~
improvements would be made.
-2- April 17,, 1989
he doesn't feel good about the
However, that area is in the
As such, it would cost the
3se the property after mayor
Chairman Harms described the moratorium process and why it_
was used in the Penn Avenue-66th Street area redevelopment.
Kevin Tharp asked the HRA if the City is planning on taking
the residential properties by condemnation as well as potentially
taking the Arby's property by condemnation.
Chairman Harms responded that there was no general intent on
taking residential properties by condemnation at this point.
Executive Director Prosser stated that drive-up windows
generally generate more idle traffic and that additional traffic
was more the issue than audio problems also associated with the
drive-up window.
Chairman Harms stated that the HRA is not going to try to
get the Council to reverse its decision on the drive-up window,
nor are they going to relax the moratorium making a special
consideration for the Tharp's property.
Kevin Tharp asked the Executive Director and the City
Attorney to explain the provisions and limitations of the
transient merchant ordinance as it would relate to the old Arby's
site.
Chairman Harmes asked the HRA staff and the Executive
Director to arrange for a meeting with the Tharps concerning the
transient merchant ordinance and its provisions and restrictions.
Item #2 CONSIDERATION OF A RESOLUTION AUTHORIZING THE SALE OF
THE HRA OWNED, VO-TECH PROPERTY AT 6632 FIFTH AVENUE
SOUTH. HRA LETTER N0. 9.
Executive Director Prosser reviewed HRA Letter No. 9
concerning the consideration of a resolution authorizing the sale
of the HRA owned Vo-Tech property at 6632 Fifth Avenue South.
M/Ludeman, S/Helmberger that the following resoluition be
adopted: that it be spread in the resolution book and that it be
made part of these minutes:
HRA Meeting Minutes -3- April 17, 1989
RESOLUTION N0. 347
RESOLUTION AUTHORIZING SALE OF PROPERTY AT
6632 FIFTH AVENUE SOUTH
Motion carried 5-0. This resolution appears as Resolution
No. 347 in Resolution Book No. 3.
Item #3 AUTHORIZATION TO SUBMIT A FUNDING REQUEST TO MINNESOTA
HOUSING FINANCE AGENCY TO DELIVER A "LOCAL
PARTICIPATION HOME IMPROVEMENT LOAN PROGRAM" IN~
RICHFIELD. HRA LETTER N0. 10.
Executive Director Prosser reviewed HRA Letter No. 10
concerning the authorization to submit a funding request to
Minnesota Housing Finance Agency to deliver a "Local
Participation Home Improvement Loan Program" in Richfield.
M/Luettinger, S/Ludeman to authorize staff to:
1. Submit an application to MHFA for Local Participation Program
. funding.
2. Coordinate program delivery with Richfield Hank and Trust and
enter into program agreements with MHFA if funds are
received.
3. Authorize staff to develop a public information program
regarding this program.
Motion carried 5-0.
Item #4 CONSIDERATION OF A RESOLUTION AUTHORIZING EXECUTION OF
AN ANNUAL CONTRIBUTION CONTRACT (ACC) TO RECEIVE
SECTION 8 VOUCHER HOUSING ASSISTANCE PAYMENTS FROM THE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD).
HRA LETTER NO. 11.
Executive Director Prosser reviewed HRA Letter No. 11
concerning the consideration of a resolution authorizing
execution of an annual contribution contract to receive Section 8
Voucher Housing Assistance Payments from the Department of
Housing and Urban Development.
Mr. Prosser reviewed the revenues associated with the
program and the costs associated with the implementation.
HRA Meeting Minutes -4- April 17, 1989
Commissioner Ludeman raised a number of concerns about the
additional computer equipment necessary to administer the
program.
Executive Director Prosser responded that the cost of any
new computer equipment would be included in the extra money
attained by the City for the additional administration. Thus,
there would be no extra costs incurred by the HRA or the City for
the computer purchase.
M/Ludeman, S/Luettinger that the following resolution be
adogted; that it be spread in the resolution book and that it be
made part of these minutes
RESOLUTION NO. 348
RESOLUTION AUTHORIZING EXECUTION OF AN ANNUAL CONTRIBUTION
CONTRACT WITH THE U. S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
Motion carried 5-O. This resolution appears as Resolution
No. 348 in Resolution Book No. 3.
Item #5 CONSIDERATION OF APPROVAL OF CERTIFICATE OF COMPLETION
FOR RICHFIELD SHOPPES. HRA LETTER NO. 12.
Executive Director Prosser reviewed HRA Letter No. 12
concerning consideration of approval of Certificate of Completion
for Richfield Shoppes.
Commissioner Luettinger questioned why the fire suppression
system was not completed and expressed some concern with the
wording of the resolution where it related to the fire
suppression requirements.
Alternative language for the resolution was proposed by
Chairman Harms which modified the fifth WHEREAS of the resolution
by inserting the words, "except to the extent the agreement
requires a fire suppression system as required by the State Fire
Code", and striking the language in that paragraph after the word
"agreement".
M/Garcia, S/Helmberger that the following amended resolution
be adopted; that it be spread in the resolution book and that it
be made part of these minutes:
HRA Meeting Minutes -5- Apfil 17, 1989
RESOLUTION NO. 349
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
AUTHORIZING EXECUTION OF A CERTIFICATE OF
COMPLETION FOR RICHFIELD SHOPPES
Motion carried 5-0. This resolution appears as Resolution
No. 349 in Resolution Book No. 3.
Item #6 REPORT OF EXECUTIVE DIRECTOR
Executive Director Prosser presented updates on a number of
development areas in the City.
-I/L/N - Mr. Prosser indicated that the staff was working with
a potential developer for improvements of the I/L/N. He stated
that staff was making it clear that development in the area
would have to be great enough to provide the necessary revenues
to construct the public improvements needed in the area.
-Penn and 66th - The Executive Director stated there was interest
by a number of developers for small portions of that site. A
report on the area is expected to be generated by the end of
June.
-Cedar Avenue between 494 and Crosstown - Executive Director
Prosser stated the Planning Commission was looking at a
potential new zoning district in that area. In addition, staff
' is talking to the Metropolitan Airports Commission on financing
some redevelopment in the New Ford Town area.
-NAHRO Conference - Mr. Prosser stated that the annual NAHRO
Conference was coming up in the next month or so in Brainard and
encouraged HRA members to attend.
-Attorney status - Mr. Prosser indicated that John Dean has
tenured a resignation with the LeFevere, Lefler law firm
effective May 1, 1989. Also leaving the firm would be Charlie
LeFevere and Ron Hatty. All three attorneys will be joining
the Holmes and Graven law firm. Mr. Prosser stated that staff
would be interviewing representatives from LeFevere, Lefler and
Holmes and Graven to establish a continuing City Attorney
relationship for the City of Richfield on the HRA. Interviewing
will take place during the next week or so.
HRA Meeting Minutes -6- April 17, 1989
Item #7 COMMISSION DISCUSSION ITEMS
Chairman Harms stated that HUD was going to review public
assistance recipients for criminal records. He stated that the
local HRA should keep this in mind and possibly do the same type
of scrutiny at the City level if such a program is initiated.
Item #8 CLAIMS AND PAYROLLS
Commissioner Ludeman questioned why there were two large
payments to the BRW firm.
Executive Director Prosser stated that both payments
regarded work in the I/L/N area. He indicated that a portion of
the work was a pass-through cost directly paid by the developer
~.~d a*~otkn~±- po*~ti o~ o£ the ~~~t way ~~a~o~raa{ ~g the pub? i ~
improvement installations necessary to maintain the increment
district.
M/Luettinger, S/Helmberger that the following claims and
payrolls be approved:
FIRST WESTERN HANK
Checks 7089/8393, 8505/8528 $149,333.31
• Checks 8394/8399, 8533/8562 $232,186.70
" Checks 8400/8404, 8611/8630 $ 91,051.29
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by Chairman Harms at 8:40 p.m.
~ ~,
e
Popp oved : 5/ 15/8 9 ~ i ~ f ~~ ~ A ~ ` ~ ~ /may' ~z ~,~---
I ~ n Thomas Harms Chairman
V bGYG.• Y. YGYiVli
Acting City Clerk
am D. Prosser
x utive Director