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01-22-1991CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY MEETING January 22, 1991 HRA MEMBERS PRESENT: Thomas Harms; Joan Helmberger; Ivan Ludeman; Vern Luettinger; and Lawrence Wozniczka. STAFF PRESENT: James Prosser, City Manager; Steven Devich, Administrative Services Director/ Acting City Clerk; Byron Wallace, Community Development Director; and Bruce Palmborg, Housing and Redevelopment Coordinator. The meeting was called to order by Chair Harms at 7:03 p.m. Item #1 OATH OF OFFICE FOR HRA COMMISSIONER LARRY WOZNICZKA Acting City Clerk Steven Devich administered the Oath of Office to HRA Commissioner Larry Wozniczka. Item #2 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA Morris Nilsen, Sr. of 6934 James Avenue addressed the HRA concerning his current attempt to participate in the Expanded New Home Program. Mr. Nilsen stated that he is currently looking at a lot located on the 6800 block of Logan Avenue to construct a large one-level home. He said that he was very dissatisfied with the Marv Anderson Company and his dealings with them. The specifications provided by the Marv Anderson firm were totally unacceptable. Chairman Harms stated that the HRA can do some things at this point such as provide a listing of lots available under the program. Staff can also look at the options available to the City under the New Home Program. Executive Director Prosser said that overall, we have had good feedback on program participant's dealings with the Marv Anderson firm. Mr. Prosser will speak directly to the Marv Anderson Company to get better results on this particular matter. Commissioner Wozniczka asked Mr. Nilsen if he would be willing to buy the property directly from the owner without City write-down. HRA Meeting Minutes -2- January 22, 1991 Mr. Nilsen said he did not want to pay more for the lot than the City would sell it to a builder. There was consensus that Executive Director Prosser would speak to the Marv Anderson firm in the next few days concerning this issue. Item #3 ELECTION OF OFFICERS. HRA LETTER NO. 1 M/Luettinger, S/Wozniczka that the following HRA Commissioners be elected to office for 1991: Thomas Harms, Chair Vern Luettinger, Vice-Chair Joan Helmberger, Secretary Motion carried 5-0. Item #4 DESIGNATION OF ACTING EXECUTIVE DIRECTOR. HRA LETTER NO. 2 M/Ludeman, S/Wozniczka to designate Steven Devich, Director of Administrative Services, as the Acting Executive Director of the HRA. Motion carried 5-0. Item #5 CONSIDERATION OF APPROVAL OF RESOLUTIONS DESIGNATING OFFICIAL DEPOSITORIES FOR THE HRA OF RICHFIELD FOR 1991, INCLUDING THE APPROVAL OF COLLATERAL. HRA LETTER NO. 3 Commissioner Wozniczka questioned the wording of the First Wisconsin Bank on the last resolution in the items packet. Executive Director Prosser said that the wording was likely correct but that it would be reviewed and changed if necessary. [] ~~ i I C HRA RESOLUTION NO. 409 RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1991 HRA Meeting Minutes -3- January 22, 1991 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: Motion carried 5-0. This resolution appears as Resolution No. 400 in 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. 410 1 HRA RESOLUTION NO. 411 RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF THE HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1991 RESOLUTION DESIGNATING THE FIRST WESTERN BANK A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY FOR RICHFIELD FOR THE YEAR 1991 AND APPROVING COLLATERAL Motion carried 5-0. This resolution appears as Resolution No. 410 in 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: Motion carried 5-0. This resolution appears as Resolution No. 411 in Resolution Book No. 3. Item #6 CONSIDERATION OF DESIGNATION OF OFFICIAL NEWSPAPER. HRA LETTER NO. 4 Commissioner Ludeman asked if the Minneapolis Star Tribune . could be considered for the official newspaper. Executive Director Prosser responded that while it could be used, the cost was much greater than the Sun newspaper. HRA Meeting Minutes -4- January 22, 1991 Acting City Clerk Devich added that the Sun was also the newspaper with the greatest circulation among Richfield residents. M/Helmberger, S/Wozniczka to designate the Richfield Sun- Current as the official newsAaper of the Richfield HRA for the year 1991. Motion carried 5-0. Item #7 CONSIDERATION OF RECOMMENDATION FOR THE INTERIM USE AND MANAGEMENT OF 77TH STREET PROJECT. HRA LETTER NO. 5 Executive Director Prosser reviewed HRA Letter No. 5 regarding consideration of recommendations for the interim use and management of 77th Street properties. Chairman Harms asked if the HRA could contract the upgrade and repair process on a collective contract or all 16 properties with a private developer. Executive Director Prosser stated that the term of the contract couldn't be more than six months and that made such a contract fairly unattractive. Commissioner Wozniczka asked if we are required to pay relocation and stated that we would not be looking to get into a situation where we would pay relocation again. Executive Director Prosser stated that we were subject to relocation costs initially but were not looking to get into a situation under the proposed program where we may be subject to further relocation costs. M/Wozniczka, S/Ludeman to approve staff recommendations for the interim use and management of 77th Street properties with an amendment to report back to the HRA on an attempt to locate a private developer: Recommended Motion: As a result of the preliminary evaluation, staff is authorized to undertake the following: 1. Prepare a request of the City Council, that the HRA be designated to manage the RALF property. 2. Solicit estimates for the demolition of 7600 and 7645 Emerson Avenue to include backfilling and seeding. 1 ~; HRA Meeting Minutes -5- January 22, 199.1 3. Seek offers to purchase for removal from their sites structures at 7644 Aldrich and 7644 Colfax Avenues. The holes would be backfilled and the soil seeded. 4. Obtain estimates from contractors for the cost to prepare houses for renting. 5. Seek proposals from property management companies regarding: - suitability of renting each house; - management costa; - rent level for each property; and, - estimated time required to rent the homes. 6. Study with Project For Pride In Living (PPL), a metropolitan area non-profit organization, the feasibility of utilizing a limited number of these properties for a homeownership training program.. 7. Report back to HRA on attempt to find a private developer for the rehabilitation of the approximate 16 homes. Motion carried 5-0. [1 Item #8 PUBLIC HEARING ON SALE OF LAND TO BRADLEY REAL ESTATE TRUST (BRADLEY) HUH WEST, L/H/N. HRA LETTER NO. 6 Executive Director Prosser reviewed HRA Letter No. 6 regarding a public hearing on the sale of land to Bradley Real Estate Trust (Bradley) Hub West, L/H/N. Chairman Harms opened the public hearing. Patrick Brown of the MTC asked if the current bus movement would continue under the new proposal. Executive Director Prosser stated that the issue had been considered and that it is the City's position not to encourage the continuation of that particular route. Mr. Prosser suggested that Mr. Brown respond directly to Bradley Real Estate Trust regarding this issue. Larry Burgloff, IGA Store Manager, stated that he was an interested spectator. He also stated that many of the people in the audience work with him and are interested in finding out more about the project. HRA Meeting Minutes -6- January 22, 1991 David Shea and Larry Miller from Bradley Real Estate Trust made a presentation of the project to the audience. There were general questions from the audience concerning the square footage of the proposed new Rainbow food facility and the potential for parking problems. Bradley representative addressed both issues and answered all questions. Chairman Harms described the process that will be followed. Mr. Harms also asked the Bradley Trust representatives to talk to Rainbow about the potential for employing the people from the present IGA at the new facility. Commissioner Wozniczka stated that he wished to state three points regarding the proposal. 1. IGA and Rainbow both are owned by Gateway Foods. 2. Kentucky Fried Chicken is not a blighted facility under the definition for TIF purposes. 3. The $3,200,000 investment in the project renders roughly 5190,000 less in dollars to the City than the tax increment gained from the project. However, the project's overall value to the community must also be considered. M/Ludeman, S/Helmberger to close the public hearing. Motion carried 5-0. M/Luettinger, 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. 412 RESOLUTION RELATING TO THE SALE OF CERTAIN LAND LOCATED WITHIN THE LYNDALE/HUB/NICOLLET COMMERCIAL IMPROVEMENT PROJECT AREA Motion carried 5-0. This resolution appears as Resolution No. 412 in Resolution Hook No. 3. Item #9 REPORT OF EXECUTIVE DIRECTOR Penn Avenue Executive Director Prosser gave a status report on the Penn Avenue project. There was discussion of contacting PHP and Med Centers regarding a potential site for a new clinic facility. HRA Meeting Minutes -7- January 22, 1991 ILN Executive Director Prosser gave a status report on ILN. The City continues to talk to developers. The last one was a very low retail density. It is clear that the Larsen Project is dead. Executive Director Prosser summarized the staff's dealing with the RTC holding the Cloverleaf property. Bruce Palmborg described the staff's dealing on the vacant Lampert property which involved the consideration of a restaurant on the site. New Home Program Executive Director Prosser described the status of the program and stated that he is pleased with the progress thus far. At this point, the first 16 have been purchased by the City. Item #10 CLAIMS AND PAYROLLS M/Ludeman, S/Helmberger that the following claims and payrolls be approved: FIRST WESTERN BANK December 31, 1990: Checks 9757-9772; 10300-10307 $140,211.15 Checks 1030 Section 8 $110,000.00 January 22, 1991: 1067-1077; 2021-2110; 9773-9781; 10311-10343 $330,249.93 1031 Section 8 $ 75,000.00 Motion carried 4-0 (Commissioner Wozniczka abstained). ~~L c,~-- J me D. rosser E e tive Director 1 C HRA Meeting Minutes ADJOURNMENT The meeting was adjourned by 3/19/91 -8- January 22, 1991 unanimo gonsent at 8:30 p.m. l~ - ~-f ~~ ~~ Thomas Harms Chair Acting City Clerk