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11-19-1990CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY MEETING November 19, 1990 MEMBERS PRESENT: Ivan Ludeman; Vern Luettinger; Joan Helmberger; and Edwina Garcia. STAFF PRESENT: James Prosser, City Manager; Steven Devich, Administrative Services Director; Bruce Palmborg, Housing and Redevelopment Coordinator; and Byron Wallace, Community Development Director. John Dean, City Attorney, arrived at 7:08 p.m. MEMBERS ABSENT: Thomas Harms, Chair. The meeting was called to order by Vice-Chair Luettinger at 7:00 p.m. APPROVAL OF MINUTES M/Helmberger, S/Ludeman to approve the minutes of the HRA Meeting of October 15, 1990. Motion carried 4-0. Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA Don Cederholm, 6214 5th Ave. South, asked the HRA about the New Home Program. He wanted to know how the program was to be funded. He spoke against this project stating that the employees of the HRA and contractor benefit from this program. Executive Director Prosser responded that tax increment financing will be used to finance the project. He added that no staff was added because of this project. Item #2 HRA BUDGET HEARING. HRA LETTER NO. 36 Executive Director Prosser outlined the budget adoption process and asked Byron Wallace to present an overview of the budget. HRA Meeting Minutes -2- November 19, 1990 Community Development Director Wallace presented a division- by-division summary of the HRA budget. Larry Wozniczka, 6744 Wentworth Ave. South, asked why the employees and their respective pay grades are not listed. Byron Wallace responded that these employees are a part of the City. The employees and pay grades will be added as information to the budget. Larry Wozniczka was also concerned that exact figures from the New Home Program loans were not listed in the budget. Commissioner Ludeman also expressed a desire to see such data. Executive Director Prosser stated that the data would be presented in the Comprehensive Financial Report. Larry Wozniczka asked how much the setbacks in the ILN have cost. Executive Director Prosser responded that in 1990, $87,000 was spent for administration and $82,000 for public improvements; and in 1989, $104,597 was expended for administration. Don Cederholm asked what interest rates will be charged to loans from the water and sewer funds. Executive Director Prosser responded that it would be based on investment return rates of funds invested. M/Ludeman, S/Garcia to close the public hearing. Commissioner Ludeman asked about the funds budgeted for 1991 for travel and conferences. Executive Director Prosser explained that training and conferences were covered here. Motion carried 4-0. M/Ludeman, S/Helmberger that the following resolution be adopted; that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION NO. 398 RESOLUTION AUTHORIZING REVISION OF 1990 BUDGET OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD HRA Meeting Minutes -3- November 19, 1990 Motion carried 4-0. This resolution appears as Resolution No. 398 in Resolution Hook No. 3. M/Ludeman, S/Helmberger that the following resolution be adopted: that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION N0. 399 RESOLUTION APPROVING 1991 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE~TAX LEVY Motion carried 4-0. This resolution appears as Resolution No. 399 in Resolution Book No. 3. Item #3 PUBLIC HEARING RELATING TO THE SALE OF 7000 OAKLAND AVENUE. HRA LETTER NO. 37 Executive Director Prosser reviewed HRA Letter No. 37 regarding the sale of 7000 Oakland Avenue. M/Ludeman, S/Helmberger to close the public hearing. Motion carried 4-0. M/Ludeman, S/Helmberger that the following resolution be adopted; that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION NO 400 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7000 OAKLAND AVENUE SOUTH Motion carried 4-0. This resolution appears as Resolution No. 400 in Resolution Hook No. 3. Item #4 CONSIDERATION OF AUTHORIZATION TO ENTER INTO CONTRACT WITH SOUTH HENNEPIN VOCATIONAL TECHNICAL SCHOOL (VO- TECH) TO INITIATE A 1991-92 NEW HOME PROJECT. HRA LETTER N0. 38 Executive Director Prosser reviewed HRA Letter No. 38 regarding consideration of authorization to enter into contract with South Hennepin Vocational Technical School (Vo-Tech) to initiate a 1991-92 New Home Project. HRA Meeting Minutes -4- November 19, 1990 M/Ludeman, S/Luettinger that the following resolution be adopted~_that it be spread in the resolution book and that it be made Hart of these minutes: HRA RESOLUTION NO. 401 RESOLUTION RELATING TO VO-TECH AGREEMENT FOR 7528 COLFAX AVENUE SOUTH Motion carried 4-0. This resolution appears as Resolution No. 401 in Resolution Book No. 3. Item #5 CONSIDERATION OF RESOLUTION AUTHORIZING THE PURCHASE OF PROPERTY UNDER THE EXPANDED NEW HOME PROGRAM. HRA LETTER NO. 39 Executive Director Prosser reviewed HRA Letter No. 39 regardine~ c©nsideration of a resolution authorizing the purchase of property under the Expanded New Home Program. Commissioner Ludeman asked if the lot size met the City's requirements for minimum size. Community Development Director Wallace responded that the property will require a variance. Commissioner Ludeman asked how many square feet short are we? Bruce Palmborg, Housing and Redevelopment Coordinator, stated that the purchase by the City is contingent upon the approval of the variance. M/Garcia, 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: HRA RESOLUTION NO 402 RESOLUTION AUTHORIZING PURCHASE OF REAL.PROPERTY LOCATED AT 6813 Logan Ave. South 6313 Morgan Ave. South Motion carried 4-0. This resolution appears as Resolution No. 402 in HRA Resolution Hook No. 3. HRA Meeting Minutes -5- November 19, 1990 Item #5 PUBLIC HEARING RELATING TO THE SALE OF EXPANDED NEW HOME PROGRAM PROPERTIES TO MARV ANDERSON HOMES, INC. HRA LETTER NO. 40 Executive Director Prosser reviewed HRA Letter No. 40 relating to the sale of Expanded New Home Program properties to Marv Anderson Homes, Inc. Larry Wozniczka asked if the two projects would render enough tax increment to back the loans. Executive Director Prosser responded that based on aggregate calculations on all 27 properties in the program, yes. M/Helmberger, S/Ludeman to close the public hearing. Motion carried 4-0. M/Ludeman, S/Helmberger that the following resolution be adopted; that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION N0. 403 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6813 Logan Ave. South 6313 Morgan Ave. South TO MARV ANDERSON HOMES, INC., IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT Motion carried 4-0. This resolution appears as Resolution No. 403 in HRA Resolution Book No. 3. item #7 CONSIDERATION OF DEVELOPMENT CONCEPT AND IMPLEMENTATION PLAN FOR HUH WEST. HRA LETTER NO. 41 Executive Director Prosser reviewed HRA Letter No. 41 regarding consideration of development concept and implementation plan for Hub West. Mr. Sid Inman of Publicorp Inc. provided a review of the Hub West Redevelopment Project. He stated that the tax increment is not excessive for the investment return on the project and that cash could be taken from the LHN account and replenished in the future to meet necessary bond payments. HRA Meeting Minutes -6- November 19, 1990 Commissioner Luettinger asked if this financing would jeopardize the project. Mr. Inman said that in his opinion it would not jeopardize the project. There was general discussion concerning the decision not to issue additional bonds at this time. While the new project by itself would not carry the costs in tax increment, the entire project would continue to carry the tax increment debt service. Larry Wozniczka asked how long the debt service in the LHN runs. Mr. Inman said until 2002. Larry Wozniczka asked if the increased pedestrian and traffic flow generated by this project has been considered, especially pedestrian walkway from K-Mart to the new project. Executive Direct©x P~©sseP stated that pedestrian traffic flow had been considered. M/Ludeman, S/Luettinger to approve the redevelopment concept and implementation plan for Hub West. Motion carried 4-0. M/Ludeman, S/Garcia that the following resolution be adopted: that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION N0. 404 RESOLUTION REGARDING THE ACQUISITION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT Motion carried 4-0. This resolution appears as Resolution No. 404 in HRA Resolution Book No. 3. M/Ludeman, 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: HRA RESOLUTION NO. 405 1 RESOLUTION OF THE HOUSING & REDEVELOPMENT AUTHORITY OF RICHFIELD, MINNESOTA AUTHORIZING THE ACQUISITION OF LAND BY EMINENT DOMAIN AND AUTHORITY THE OBTAINING OF TITLE AND POSSESSION IN ACCORDANCE WITH MINNESOTA STATUTES SECTION 117.042 HRA Meeting Minutes Motion carried 4-Q. No. 405 in HRA Resolution M/Ludeman, S/Luettini Developers Agreement for ~ on December 17, 1990. Motion carried 4-0. -7- November 19, 1990 This resolution appears as Resolution Book No. 3. der to direct staff to prepare a presentation to the HRA and City Council M/Ludeman, S/Luettinger to request City Council to schedule a special meeting for December 17, 1990. Motion carried 4-0. .Item #8 MODIFICATION N0. 6 TO THE LHN REDEVELOPMENT PLAN. HRA LETTER N0. 42 Executive Director Prosser reviewed HRA Letter No. 42 regarding modification No. 6 to the LHN Redevelopment Plan. M/Ludeman, S/Helmberger that the following resolution be adopted: that it be spread in the resolution book and that it be made part of these minutes: HRA RESOLUTION N0. 406 RESOLUTION APPROVING MODIFICATION N0. 6 IN THE LYNDALE/HUB/NICOLLET COMMERCIAL IMPROVEMENT PROGRAM: REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON: RECOMMENDING APPROVAL OF THE PLANS Motion carried 3-0. (Commissioner Garcia absent). This resolution appears as Resolution No. 406 in HRA Resolution Book No. 3. Item #9 REPORT OF EXECUTIVE DIRECTOR Executive Director Prosser did not have a report. Commissioner Luettinger questioned the status of the property at 72nd Street and Cedar Avenue where firewood and miscellaneous items are stored. Byron Wallace stated that the HRA staff would encourage redevelopment of that property as part of any project in the immediate area. HRA Meeting Minutes -8- Item #10 CLAIMS AND PAYROLLS M/Ludeman, S/Helmberger that the following claims anc~ payrolls be approved: FIRST WESTERN BANK Checks 1842-1929; 9680-9729; 1053.-1059; 9379-9400; 10204-10240 Checks 1028 Motion carried 3-0. 1~JO~DRN1`?LP~ November 19, 1990 $569,223.63 Section 8 $50,000.00 (Commissioner Garcia absent). The meeting was adjourned by unanimo nsent at 9:03 .m. Date Approved: 12 17 90 ~ ,`_- homas Harms Chairman J ~D. Prosser h~ ~.ii~y ~.itiy ~ierx a utive Director __ _: 1