06-18-1990CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
JUNE 18, 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 & Redevelopment
Coordinator; and Steve Devich, Acting City
Clerk.
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 January 27, 1987; and the Special HRA Meeting of
February 24, 1987. •.
Motion carried 4-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ANY ITEM
NOT LISTED ON THE AGENDA.
Bob Jensen, 7328 Fremont Avenue, property owner in the ILN,
expressed concerns about the Larsen Partners, Inc. progress in
negotiating and acquiring properties in the ILN. He stated concern
about at what point the HRA would consider that Larsen was not
making a good faith effort to purchase properties.
Chairperson Harms responded that the HRA is monitoring the
progress of the project. If the Larsen Partners cannot move
forward, then another developer must be found or the project will
collapse.
Executive Director Prosser stated that before the HRA would
consider condemnation, a good faith effort through the mediation
process would have to be stated by the mediator.
Chairman Harms stated that if property owners not satisfied
that there was a good faith effort, they would be able to appear
before the HRA before action to approve any condemnation. It was
the consensus of the HRA that a Special Meeting would be scheduled
for this purpose if necessary.
Doug Allen, Pastor of Emerson Avenue Congregational Church,
spoke in support of MR. Jensen's concerns.
HRA Minutes -2- June 18, 1990
Item #2 CONSIDERATION OF APPROVAL OF AUTHORIZATION TO TRANSFER
CDBG YEAR XV ECONOMIC DEVELOPMENT FUNDS TO THE TECHNICAL
COLLEGE NEW HOME PROGRAM. HRA LETTER NO. 15
Executive Director Prosser reviewed HRA Letter No. 15
regarding approval of authorization to transfer CDBG Year XV
Economic Development Funds to the Technical College New Home
Program.
Commissioner Ludeman asked if this program was duplicative of
the expanded New Home Program. He also questioned why the property
at 6813 Nicollet had not been acquired by this program.
Executive Director Prosser reviewed the program and it's
relationship to other programs.
M/Luettinger, S/Helmberger to authorize amendments to the
Third Party Agreement to shift CDBG Year XV funds from the Economic
Development Commercial Rehabilitation Program to the Scattered Site
Program thew Home) and to request the City Council to approve this
request ar~d eifeotuate ~:I~® s~e~;essary amenc3men-~s to agreements with
Hennepin County.
Motion carried 4-1. (Ludeman opposed)
Item #3 CONSIDERATION OF APPROVAL OF PROPOSAL TO IMPLEMENT AND
EXPANDED NEW HOME PROGRAM. HRA LETTER NO. 16
Community Development Director Wallace reviewed HRA Letter No.
16 regarding consideration of approval of proposal to implement an
expanded New Home Program.
Mr. Wallace explained that the expanded program would target
garage homes for redevelopment, replacing them with significantly
higher valued homes.
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Mr. Wallace added that there is a need to immediately transfer
$7,000 from the HRA general fund for title and appraisal work to
facilitate the removal of seven uninhabitable houses.
Commissioner Ludeman asked where funding will come from.
Executive Director Prosser responded that funds haven't been
specifically identified at this time. It is also likely that
interest repayment to the City funds identified may not be
possible. The amount needed in total to begin this program will be
roughly $800,000. Mr. Prosser stated that the general fund, water
and sewer funds, and potentially the LHN funds could be identified
to fund this program.
HRA Minutes -3- June 18, 1990
Discussion followed concerning the 25 year repayment period on
each individual home project. Commissioner Ludeman requested a 15
and 25 year repayment schedule.
Executive Director Prosser stated that this program is an
option to eliminate the lowest value homes on respective blocks in
the City to upgrade those blocks and the entire City.
Chairman Harms spoke in support of the program.
Commissioner Helmberger felt that one developer doing 5 or
more homes at one time would provide an economy of scale.
M/Harms, S/Garcia to approve the proposal to implement an
expanded New Home Program.
Motion carried 5-0.
Item #4 EXECUTIVE DIRECTOR REPORT
ILN
The Executive Director presented a further status update on
the Larsen group's activities in the ILN.
Penn Avenue/66th Street
City Staff continues to talk with one developer.
Airport Development
No new progress to report. The Airport relayed to Mr. Prosser
that Part 150 runway would not be accessible until sometime in
1991.
77th Street
The State continues to give the City some positive signs on
providing financing for upgrading of 77th Street.
Portland/66th Street
Executive Director Prosser briefly summarized a proposal for
upgrading this intersection.
Special Levy Refund
Executive Director Prosser explained the school districts
request for a refund of tax levy equal to the schools most recent
referendum levy from the tax increment districts in the City. He
summarized why no funds are available from the ILN & LHN, and
minimal funds are available from the CDP district.
HRA Minutes -4- June 18, 1990
Item #5 CLAIMS AND PAYROLLS
M/Ludeman, S/Luettinger that the following claims and payrolls
be aRproved:
FIRST WESTERN HANK
Checks 1414-1495; 9275-9281; 9506-9532 $ 176,124.22
Checks 1019-1020 Payroll $ 111,000.00
Motion carried 5-0.
ADJOURNMENT
The HRA meeting was adjourned by unanimous consent at 7:00
Date Approved: 7/16/90
omas Harms Chairman
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Acting City Clerk
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D. Prosser
tive Director
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