02-20-1990CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
February 20, 1990
MEMBERS PRESENT: Thomas Harms, Chairman (arrived at
7:09 p.m.); Joan Helmberger; Ivan Ludeman;
Edwina Garcia; and Vern Luettinger.
STAFF PRESENT: James Prosser, City Manager; Thomas
Ferber, City Clerk; Byron Wallace,
Community Development Director; and Bruce
Palmborg, Housing and Redevelopment
Coordinator.
The meeting was called to order by Vice Chairperson
Luettinger at 7:07 p.m.
APPROVAL OF MINUTES
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M/Ludeman, S/Garcia
Item #1 OPPORTUNITY .FOR CITIZENS TO ADDRESS THE CITY COUNCIL
ON ANY ITEM NOT LISTED ON THE AGENDA.
No one wished to address the council.
Item #2 CONSIDERATION OF APPROVAL OF PARTIAL PAYMENT IN THE
AMOUNT OF $19,557 TO LINO LAKES NURSERY FOR ILN
STREETSCAPE. HRA LETTER NO. 6
Executive Director Prosser reviewed HRA Letter No. 6
recommending authorization of a partial payment of $19,557 to
Lino Lakes Nursery for ILN Streetscape work.
M/Ludeman, S/Helmberger to authorize staff to make a partial
payment of 519,557 to Lino Lakes Nursery for ILN streetscat~e
work.
Motion carried 5-0.
Motion carried 4-0.
HRA Meeting Minutes -2- February 20, 1990
Item #3 PROGRESS REPORT BY REPRESENTATIVES OF THE ROBERT
LARSEN PARTNERS, INC. REGARDING THE PROMENADE, ILN.
HRA LETTER NO. 5
Executive Director Prosser reviewed HRA Letter No. 5
regarding a status report from the Robert Larsen Partners, Inc.
regarding their proposed redevelopment in the ILN area.
Kelly Doran, Robert Larsen Partners, Inc., stated that
offers had been made to all but two property owners. He stated
that there is a potential gap of 1.5 to 2 million dollars between
their acquisition budget and acquisition costs. He stated
property appraisals are being conducted and should be completed
by the end of next week. He stated that Robert Larsen Partners,
Inc. would then be in a position to determine the feasibility of
the project. He indicated that there is signifigant interest in
leasing the project and financing appears to be available.
Mr. Doran stated there are two issues which will determine
if the project is feasible: 1) roten-~ial legislative changes
regarding Tax Increment Financing, 2) Whether the properties can
be purchased within a reasonable margin of their acquisition
budget.
Garfield Clark, Garfield Clark and Associates, stated that
he represented the developer in negotiating property
acquisitions. He stated most property owners were uncertain
about what will happen next, appear to understand the marginal
financial feasibility of the project, and have been taking
considerable time to consider their options.
Mr. Doran stated that he wanted to delay payment of the
required $30,000 payment until March 5, 1990 to allow completion
of the appraisals.
Chairperson Harms stated his disappointment with the
progress that has been made to date, the time delay, and the
request to further delay the $30,000 payment. He stated that the
HRA and City have made significant monetary and time committments
to this project.
Mr. Doran stated that the Larsen Partners Inc. had spent
$150,000 on the project to date. He stated that progress was
being made and that the developer had major risks so they must
proceed carefully. Mr. Doran presented the required $30,000
payment to the BRA.
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HRA Meeting Minutes -3- February 20, 1990
Executive Director Prosser indicated there were also
significant risks for the City and HRA. Therefore, progress
towards completion of a Development Agreement is essential. He
stated concern that offers had not been made yet to two property
owners.
Mr. Doran indicated special circumstances existed regarding
these two properties.
Discussion followed regarding the status of property
acquisitions.
Chairperson Harms stated that it is imperative to both the
developer and the HRA to determine the feasibility of the project
as soon as possible.
Mr. Doran indicated that it was their intent to do so.
Item #4 EXECUTIVE DIRECTOR REPORT
Executive Director Prosser reviewed the status of the
following:
1. PASSS - Executive Director Prosser indicated that
preliminary proposals from potential developers appear
not to be financially feasible. A marketing plan is
being prepared to solicit potential developers.
2. Hub Parking Issue - Executive Director Prosser reviewed
the status of litigation and the joint parking study.
He stated that Levine and Bradley will be asked to
submit proposals that will unify the centers, solve the
parking issues, maintain the same or greater value, and
minimize city involvement.
3. New Ford Town - Executive Director Prosser stated that
the New Ford Town redevelopment Concept had been
generally well received by the public and other
agencies.
4. Visions 2004 - Executive Director Prosser invited the
HRA to participate in the "Visions 2004 Revisited, Five
Down and Fifteen to Go" event February 23-24, 1990.
5. Parks Committee - Executive Director Prosser stated
this group is exploring the possibility of a bond
referendum for park improvements. He indicated their
next meeting is March 15, 1990.
HRA Meeting Minutes -4- February 20, 1990
Item #5 CLAIMS AND PAYROLLS
M/Ludeman, S/Helmberger that the following claims and
payrolls be approved:
FIRST WESTERN BANK
Checks 8`872-8887; 9211-9251 $ 452,976.06
Checks 1013; 9127-9200 Section 8 $ 136,900.00
Motion .carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimou nsent at 8:4'5 p.m.
Date Approved: 3/19/90 ~~ ~ ~
Thomas Harms Chairman
,~
Thomas P. Ferber
City Clerk
D. Prosser
tive Director
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