03-18-1991CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
March 18, 1991
HRA MEMBERS PRESENT: 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.
HRA MEMBER ABSENT: Thomas Harms, Chair.
The meeting was called to order by Vice-Chair Luettinger at
7:00 p.m.
APPROVAL OF MINUTES
M/Ludeman, S/Helmberger to ~,oorove the minutes of the HRA
Meetings of December 17, 1990 and January 22, 1991.
Motion carried 4-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
No one appeared before the HRA.
Item #2 CONSIDERATION OF RESOLUTION ESTABLISHING JUST
COMPENSATION AND AUTHORIZING PURCHASE OF 7645
COLFAX AVENUE. HRA LETTER N0. 7
Executive Director Prosser reviewed HRA Letter No. 7
concerning consideration of a resolution establishing dust
compensation and authorizing purchase of 7645 Colfax Avenue.
Mr. Prosser said to date 13 of the 16 properties targeted for
acquisition have been purchased.
Commissioner Wozniczka asked where the 16 properties are
located.
Executive Director Prosser said they are located dust inside
the ILN.
HRA Meeting Minutes -2-
Commissioner Wozniczka asked what the status
Executive Director Prosser presented a brief
on the improvements on 77th Street. He specifics;
the City's efforts to gain funding from the state
government.
March 18, 1991
of the plan is.
status report
Lly addressed
and federal
Commissioner Helmberger asked if funds came through, would
the City and HRA be able to proceed?
Mr. Prosser said we would be able to proceed immediately if
we were to gain the funding necessary to improve 77th Street.
Commissioner Wozniczka asked what the relocation costs for
this particular property .were.
Bruce Palmborg said somewhere in the area of $15,000.
M/Ludeman, S/Helmberger that the following resolution be
adoptedo that it be spread in the resolution book and that it b®
made part of these minutes:
HRA RESOLUTION NO. 413
RESOLUTION ESTABLISHING JUST COMPENSATION
AND AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 7645 COLFAX AVENUE
Motion carried 4-0. This resolution appears as Resolution
No. 413 in Resolution Book No. 3.
M/Ludeman, S/Helmberger to authorize the City Manager to
execute a Purchase Agreement for the amount of ,just compensation
set forth in the resolution.
Commissioner Wozniczka stated that he wished to postpone
this for a few months.
Commissioner Ludeman responded by saying that the HRA told
the people that the HRA was going to acquire property. These
people may be seeking another home and it would not be fair to
postpone this now.
Commissioner Helmberger agreed with Mr. Ludeman and said it
reinforces the idea that the HRA is reasonable to deal with.
Motion carried 4-0.
HRA Meeting Minutes
-3-
Item #3 REPORT OF EXECUTIVE DIRECTOR
March 18, 1991
1
LHN
Executive Director Prosser said the LHN is proceeding well.
A signed agreement with Levine has been attained. There is also
a need to deal with Bally's (U.S. Swim and Fitness) to make sure
they are kept up to date. The Gateway Food lease will take
additional time as will Kentucky Fried Chicken because of soil
contamination issues relate to the former Clark Station.
ILN
Executive Director Prosser has talked to another developer
who has an interest in a retail type development. However, there
are no firm plan proposals at this time.
The Resolution Trust Corporation (RTC) is eager to sell all
of their holdings at fire-sale prices. This includes the
Cloverleaf site.
The Executive Director said staff is concerned that this
site will be sold at a low price which may make low density
development attractive.
Mr. Prosser also stated that a restaurant the City was
dealing with is no longer interested in the Lampert Lumber site.
There was general discussion concerning the potential of a
restaurant in the ILN development area.
Graham Avenue
Executive Director Prosser indicated that no new progress
has been made in the Graham Avenue development area.
General discussion was held regarding the potential
development for the Trestman-Shaller site along with the three
City lots on Graham Avenue.
66th and Penn
Mr. Prosser said there was nothing new to report.
Airport
Executive Director Prosser briefly summarized six options
now being considered by MAC for airport development. He also
described Part 150 updates and interactive planning for the area.
Expanded New Home Program
Mr. Marlin Grant, President of Marv Anderson Homes,
presented'a status report of the current project. Mr. Grant said
the recessionary economy has effected home sales in the program,
as has a concern for air traffic noise. The net effect is that
HRA Meeting Minutes -4- March 18, 1991
Marv Anderson Homes is purchasing the lots at a slower rate than
anticipated. The first home will be ready in the next few weeks.
Marv Anderson Homes has purchased ten lots thus far; and of those
ten, six are under construction.
Mr. Prosser stated that because of the problems stated, Marv
Anderson Homes has not purchased the lots according to the time
frame agreed upon. The Executive Director asked that the HRA
direct staff to prepare specifications to write other proposals
on the purchase and development of future lots to be presented
for consideration at the next HRA meeting.
Commissioner Wozniczka asked Mr. Grant what the impact of
offering the other lots to other developers would have on their
business.
Mr. Grant said it would tend to cause a demotivation for
sales staff. It would also imply a failure to deliver what their
company proposed to do. He added that if he had until the next
HHA meeting, another 30 days, the situation would lil'~elgv improve.
Executive Director Prosser asked Mr. Grant if a 30 day
extension were granted, would Marv Anderson agree to include the
future lots in their marketing of the program?
Mr. Grant stated that he would certainly do so.
M/Ludeman, S/Helmberger to wait until the next HRA meeting
to hear a progress report from Marv Anderson Homes to decide what
action to take on continuing the agreement for the Expanded New
Home Program.
Motion passed 4-0.
64th and Harriet
Community Development Director Hyron Wallace reported on
the status of a property located at 64th Street and Vincent
Avenue. This was requested by Mr. Luettinger.
Item #4 CLAIMS AND PAYROLLS
Commissioner Luettinger questioned a $4,000 payment to
Bloomington HRA.
Community Development Director Byron Wallace said it was a
Section 8 payment due to portability.
Commissioner Ludeman requested an itemized list of legal
charges from Holmes & Graven.
HRA Meeting Minutes
-5-
March 18, 1991
Commissioner Wozniczka asked what the Zero Dept was and what
the engineering charges were for.
Administrative Services Director Steven Devich stated that
he thought the Zero Dept charges were labor charges to the HRA
for City staff, but that he would check on that further.
Housing and Redevelopment Coordinator Palmborg said the
engineering charges were for soil testing.
M/Ludeman, S/Helmberger that the following claims and
payrolls be aporoved:
FIRST WESTERN HANK
February 19, 1991:
Checks 1078-1079; 2112-2205;
9782-9796; 10348-10380
Checks 1032 Section 8
March 18, 1991:
1
Checks 1080; 2219-2313; 9797-9821;
10384-10413
Checks 1033-1034 Section 8
Motion carried 4-0.
ADJOURNMENT
$252,500.22
$ 80,000.00
$446,640.68
$ 63,000.00
The meeting was adjourned by unanimous sent at 8:47 p.m.
Date Approved : 4/ 15/ 91
Thomas Harms - -~ Chair
ev n c J e D. Prosser
Acting City Clerk E e tive Director