04-16-1990CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 16, 1990
MEMBERS PRESENT: Thomas Harms, Chairman; Joan Helmberger;
-Ivan Ludeman; Edwina Garcia; and Vern
Luettinger.
STAFF PRESENT: James Prosser, Executive Director; Byron
Wallace, Community Development Director;
Bruce Palmborg, Housing and Redevelopment
Coordinator; Thomas Ferber, City Clerk;
and John Dean, HRA Attorney.
The meeting was called to order by Chairman Harms at 8:04
p.m.
APPROVAL OF MIN[ITES
M/Helmberger, S/Luettinger to approve the minutes of the
Regular HRA Meeting of March 19, 1990.
Motion carried 5-0.
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 CONSIDERATION OF APPROVAL OF A SECOND PARTIAL PAYMENT
IN THE AMOUNT OF $3,944 TO LINO LAKES NURSERY FOR THE
ILN STREETSCAPE. HRA LETTER N0. 8
Community Development Director Wallace reviewed HRA Letter
No. 8 recommending that the HRA authorize a partial payment to
Lino Lakes Nursery for ILN Streetscape work.
M/Ludeman, S/Luettinger to authorize a partial payment in
the amount of $3~ 944 to Lino Lakes Nursery for ILN Streetscape
work.
Motion carried 5-0.
HRA Minutes -2- April 16, 1990
Item #3 ADOPTION OF A RESOLUTION AUTHORIZING THE EXECUTION OF
AN AGREEMENT WITH BEST GROUP TO PROVIDE MARKETING
SERVICES FOR THE RESIDENTIAL ENERGY CONSERVATION
PROGRAM. HRA LETTER NO. 9
Community Development Director Wallace reviewed HRA Letter
No. 9 recommending the execution of an agreement with BEST Group
to provide marketing services for the residential energy
conservation program.
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:
RESOLUTION N0. 377
RESOLUTION RELATING TO PROVIDING
MARKETING SERVICES FOR THE ENERGY PROGRAM
Motion carried 5-0. This resolution appears as Resolution
No. 377 in HRA Resolution Book No. 3.
Item #4 STAFF DISCUSSION REGARDING RICH ACRES DEVELOPMENT.
Community Development Director Wallace reviewed the Rich
Acres redevelopment concepts prepared by Planning Consultant Tom
Martinson.
The three potential redevelopment choices reviewed were:
1) a "boutique" commercial office campus
2) a "maximum" apartment development
3) ahigh-amenity housing development
Discussion followed regarding the feasibility of the
development concepts.
HRA Minutes -3- April 16, 1990
Item #5 EXECUTIVE DIRECTOR REPORT
Community Development Director Wallace reviewed the status
of the following:
1) Expanded New Home Program
Response to publicity regarding expansion of this
program has been very positive.
2) RALF Program
Two properties along 77th Street are currently being
processed for Metropolitan Council RALF Funds.
3) HRA Marketing
Henning & Associates are working with staff regarding
marketing efforts.
4) PA
Some general discussions with interested parties has
occurred and marketing efforts continue.
Item #6 CONSIDERATION OF CONCEPTUAL APPROVAL OF A DEVELOPERS
AGREEMENT WITH THE ROBERT LARSEN PARTNERS, INC.
HRA LETTER NO. 10
HRA Attorney Dean reviewed HRA Letter No. 10 regarding the
draft Contract for Private Development with Robert Larsen
Partners, Inc. regarding ILN Redevelopment. He stated that the
significant parts of the Contract for Private Development
include provisions for the following:
* Development of the area within the ILN West of
Lyndale known as "Phase I".
* Robert Larsen Partners Inc. will construct a shopping
mall having a minimum market value of $33,500,000.
,* A mechanism to finance the public improvements in
the ILN area through the use of TIF funding with a
special assessment levy in the event there is
insufficient tax increment to pay debt service.
* The acquisition of land within Phase I and Phase II
or through the use of the HRA condemnation power to
the extent that Larsen is unable to acquire all of
the land necessary for the project.
* Larsen will initially pay all of the costs relating
to the acquisition of the property (real estate costs,
fixtures, relocation, HRA costs and attorney's fees)
whether by voluntary acquisition or condemnation.
* Larsen will be paid a land write down over a base
cost through a combination of bond proceeds, pay
as you go proceeds and other funds subject to the
limitations of the contract.
* This contract supersedes the November 20, 1989.
Agreement.
HRA Minutes -4- April 16, 1990
Sid Inman, Publicorp, reviewed the tax increment issues
which led staff to structure the. proposed contract to include the
"pay as you go" concept.
Kelly Dorn, Robert Larsen Partners, Inc., indicated that
this concept shifted more of the risks to the developer, but that
if the project is feasible they intend to proceed. He stated
property acquisition negotiations are difficult at this stage.
He asked the City and HRA agree to the concept of eminent domain
acquisition if it becomes necessary. He indicated no purchase
agreements have been signed but that 6-8 properties are close to
an agreement.
Hob Jensen, owner of 7714-16 Colfax Avenue, stated concern
about how the developer was negotiating with property owners. He
also requested further information regarding the proposed
Developer's. Agreement.
Don Maki, 7738 Colfax Avenue, stated dissatisfaction with
the developers offer for his property and the attitude of the
developer.
Tony Doherty, owner of the Doherty Furniture building,
stated his bui~lc~ing is not ~tor sa~1e.
HRA Attorney Dean reviewed the proposed developers
agreement. He stated that staff is continuing to meet with
Robert Larsen Partners to finalize the draft agreement for
presentation for approval by both the HRA and City Council. He
anticipated completion within two weeks.
Chairperson Harms stated .that the decision to redevelop the
area has been made. He stated that voluntary acquisition of
property by the developer was the preferred method and the use of
eminent domain condemnation would be the last option. He
encouraged the property owners to utilize the mediation service
offered by the City.
Executive Director Prosser indicated that some property
owners had expressed concerns regarding property acquisition
negotiations with the developer. Therefore, the mediation
process is being made available to provide a way to address
differences and improve communications between the parties.
Discussion followed regarding the property acquisition
negotiation process, the mediation process, and the eminent
domain condemnation process.
In response to a question from Commissioner Ludeman, HRA
Attorney Dean reviewed the land write down, financial, and
special assessment components of the draft developers agreement.
Robert Adelmann, owner of 805 W. 77 1/2 .Street,. stated
concern that existing property owners could not develop their
land because of the zoning.
HRA Minutes -5- April 16, 1990
Executive Director Prosser reviewed the redevelopment
concepts of the ILN.
Discussion followed regarding notice to property owners of
the point HRA/City Council Meeting to consider the final draft of
the developers agreement. It was decided that mailed notice
would be provided and anyone who wished to review a copy of the
agreement prior to the meeting should contact City Hall.
M/Garcia, S/Harms to approve the draft concept of the
contract for Private Development with the Robert Larsen Partner,
Inc. regarding the Promenade development in the ILN and to direct
the staff and attorney to proceed to finalize an agreement for
HRA and City Council apvroval.
Motion carried 5-0.
Item #7 CLAIMS AND PAYROLLS
M/Ludeman, S/Helmberger that the following claims and
payrolls be approved:
FIRST WESTERN BANK
Checks 9254-9260; 9435-9463 S 183,081.16
Checks 1016-1017;1038-1041;
1252-1334 Section 8 $ 97,002.00
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous nsent at 10:24 p.m.
Date Approved : 5 / 21 / 9 0 "~ ~'~ 7 ~
homas Harms Chairman
'~
Thomas P. Ferber
City Clerk
,`
Jam D. Prosser
cutive Director