04-15-1991CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
April 15, 1991
HRA MEMBERS PRESENT: Thomas Harms, Joan Helmberger (arrived
7:03); 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; Bruce
Palmborg, Housing & Redevelopment
Director; and Bruce Nordquist, Housing
Supervisor.
The meeting was called to order by Chair Harms at 7:00 p.m.
APPROVAL OF MINUTES
M/Luettinger, S/Ludeman to approve the minutes of the HRA
Meeting of March 18, 1991.
Motion carried 5-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS•THE HRA
No one wished to address the HRA.
Item #2 CONSIDERATION OF RESOLUTION AUTHORIZING HRA
PARTICIPATION IN THE MINNESOTA HOUSING FINANCE
AGENCY (MHFA) CITY PARTICIPATION FIRST TIME
BUYER HOME MORTGAGE PROGRAM. HRA LETTER N0. 8
Executive Director Prosser reviewed HRA Letter No. 8
concerning consideration of a resolution authorizing HRA
participation in the Minnesota Housing Finance Agency (MHFA) City
Participation First Time Buyer Home Mortgage Program.
Commissioner Wozniczka asked why the City has to put down
the $40,000.
Executive Director Prosser said it was a good faith deposit.
HRA Meeting Minutes -2- April 15, 1991
Commissioner Wozniczka asked how much City staff time was
involved in administering this program.
Bruce Palmborg said there was very.little participation by
City staff.
Commissioner Luettinger asked if staff was surprised that
local banks are not participating.
Bruce Palmborg responded no, not in light of the program
structure.
M/Luettinger, S/Ludeman that the following resolution be
a opted; that it be spread in the resolution book and that it be
made part of these minutes:
HRA RESOLUTION N0. 414
RESOLUTION AUTHORIZING THE PROCESSING OF AN
APPLICATION TO SECURE MORTGAGE REVENUE BOND
PROCEEDS FROM THE MINNESOTA HOUSING FINANCE AGENCY
Motion carried 5-0. This resolution appears as Resolution
No. 414 in Resolution Book No. 3.
Item #3 CONSIDERATION OF RESOLUTION AUTHORIZING THE SECURING
OF "AFFORDABLE HOUSING PROGRAM FUNDS" IN SUPPORT OF
A REHABILITATION PROJECT AT 6318 NICOLLET AVENUE.
HRA LETTER N0. 9
Executive Director Prosser reviewed HRA Letter No. 9
concerning consideration of a resolution authorizing the securing
of "Affordable Housing Program Funds" in support of a
rehabilitation project at 6318 Nicollet Avenue.
Commissioner Ludeman asked if the house will be
rehabilitated.
Bruce Palmborg responded yes and said an escape window would
be installed in the basement. A review of this property and the
neighborhood indicated that new construction would not be
financially feasible on this site.
Commissioner Ludeman asked if the house would be'enlarged or
expanded.
Bruce Palmborg responded no.
Commissioner Wozniczka asked the size of the lot.
HRA Meeting Minutes -3- April 15, 1991
Bruce Palmborg said the lot was 75 feet by 115 feet deep.
Commissioner Wozniczka said that he felt it would be a
better idea to tear the house down.
Chair Harms asked what the financial loss to the HRA is if
we tear it down.
Bruce Palmborg said about $35,000 or a little more.
Executive Director Prosser stated that another consideration
,. is control and encouraging home ownership.
There was general discussion regarding the cost of tearing
the house down and moving a house from the 77th Street area to
the sight. The general consensus was that it would be too
costly.
Commissioner Wozniczka said the HRA could put a sign in the
front yard stating "buildable lot" for a couple of months.
M/Helmberger, 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:
HRA RESOLUTION N0. 415
RESOLUTION AUTHORIZING THE SECURING OF
FUNDS AND RELATED ACTIVITIES TO REHABILITATE
6318 NICOLLET AVENUE
Motion carried 4-1 (Wozniczka opposed). Motion appears as
Resolution No. 415 in Resolution Book No. 3.
Item #4 EXPANDED NEW HOME PROGRAM (ENHP) PROGRESS REPORT.
HRA LETTER N0. 10
Marlin Grant of Marv Anderson Homes presented a status
update on the Expanded New Home Program. Mr. Grant presented an
information sheet on the sound control aspects of their
construction.
Sales prices on the homes have been lowered by $2,.000 to
$9,000 depending on the specific house. In addition, Edina
Realty is attempting to market some of the properties. Merrill
Lynch will be marketing a second house in about two weeks.
Mr. Grant said that he would like to host an open house at
one of the new homes on Thursday, April 25th.at 7145 James Avenue
South beginning at 5:30 p.m. and ending at 7:30 p.m.
HRA Meeting Minutes -4- April 15, 1991
Mr. Grant concluded by saying that he has not seen any
pickup in interest in the homes and no new sales have been made
since the last meeting. He indicated that if the HRA wanted to
use another builder to help with the development, they would
certainly understand though they would rather conclude the
development of Phase II themselves.
Mr. Prosser recommended that the HRA continue working with
Marv Anderson until May 20, 1991. He added that there is,
however, no strong recommendation.
Chair Harms asked if there was any reason to believe another
developer would do any better.
Bruce Palmborg stated no, and that it seems like the step-up
concept of home purchase is a new idea in the Richfield market
place. ,
Executive Director Prosser said it was a good idea to get
realtors involved. He also spoke against using builders who do
not have strong financial backing.
There was discussion regarding why the sales are not
happening. The general consensus of commissioners was to stay
with the Marv Anderson firm.
M/Ludeman, S/Helmberger to stay with Marv Anderson
indefinitely and require monthlv~rogress reoorts to the HRA from
the firm.
Motion carried 5-0.
Item #5 REPORT OF EXECUTIVE DIRECTOR
HUB
Executive Director Prosser reported that the plans for the
development are progressing very well. 'However, Rainbow and
Ballys are experiencing some financing problems. Land use issues
are progressing smoothly. Snyders has been served with
condemnation papers and the resulting talks have been cordial to
date.
ILN
Executive Director Prosser said the Cloverleaf property has
not attracted great interest because of the area surrounding it,
especially the commercial area between 77th Street and 494.
HRA Meeting Minutes -5- April 15, 1991
The Resolution Trust Corporation (RTC) continues to exert
pressure on the City and HRA to purchase the Cloverleaf site. At
this point, RTC would be open to most tQrms on the property..
Chair Harms asked staff to get a hold of Congressman Sabo's
office to inquire into the policy currently in effect with
respect to the RTC dealing with cities and public bodies
concerning land holdings.
Mr. Prosser also reported that special legislation to extend
•_ the T.I.F. by five years and state funded 77th Street
improvements are being pursued.
New Ford Town/Rich Acres
Executive Director Prosser reported that a proposal is being
prepared for an inter-governmental cooperation development of the
area.
Commissioner Wozniczka brought up a concern regarding the
condemnation involved in the HUH project area.
Item #4 CLAIMS AND PAYROLLS
Commissioners asked about the Health Resolution Corporation
entry in the claims and payroll and an $86,134 payment under
Administrative bank transfer. Mr. Devich said that he would
research those issues and report in the S & I.
• M/Harms, S/Ludeman that the following claims and payrolls be
approved:
FIRST WESTERN BANK
Checks 1081-1083; 1207-1210; 2314-2406; $356,060.03
9822-9823; 9832-9848; 10417-10458
Check 1035 Section 8 $ 78,000.00
Motion carried 5-0.
HRA Meeting Minutes
ADJOV~xr~Ex~r
The meeting was adjourned by
Date Approved:
6/10/91
/ ~,
v n L . Dev ch
Acting City Clerk
-6-
April 15, 1991
unanimous nsent at 8:35 p.m.
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mas Harms Chair
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dam s D. Prosser
Ex utive Director
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