06-10-1991 SpecialCITY OF RICHFIELD, MINNESOTA
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
JUNE 10, 1991
MEMBERS PRESENT: Thomas Harms, Chairman; Joan Helmberger;
Ivan Ludeman; Larry Wozniczka, and Vern
Luettinger (arrived at 6:50 p.m.).
STAFF PRESENT: James Prosser, Executive Director; Steve
Devich, Administrative Services Director;
Byron Wallace, Community Development
Director and John Dean, City Attorney.
The meeting was called to order by Chairman Harms at 6:00
p.m.
APPROVAL OF MINUTES
M/Ludeman, S/Helmberger to approve the minutes of the
Regular HRA Meeting of Aaril 15, 1991.
Motion carried 4-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ANY ITEM
NOT LISTED ON THE AGENDA.
No one wished to address the BRA.
Item #2 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
APPROVING SALE OF LAND TO BRADLEY REAL ESTATE TRUST
(BRADLEY) AND APPROVING CONTRACT FOR PRIVATE
DEVELOPMENT WITH BRADLEY. HRA LETTER NO. 11
Executive Director Prosser reviewed HRA Letter No. 11
regarding public hearing and consideration of a resolution
approving the sale of land to Bradley Real Estate Trust
(Bradley); and, approving contract for private development with
Bradley. The public hearing is a continuation from the Special
HRA Meeting. of June 3, 1991.
Dick Heuer, Towle Real Estate, spoke on behalf of the
developer. Mr. Heuer provided a brief summary of the project,
including delineating-the Hub West project area, demolition, and
future tenants and construction.
Jeff Agnes, Shea Architects, described the building and
.parking lot configuration and the building materials to be used
for the project.
Commissioner Helmberger stated her concerns regarding
traffic backup into Kentucky Fried Chicken.
HRA Meeting Minutes -2- June 10, 1991
Mr. Agnes responded that the new alignment of buildings and
drive thru will alleviate the problem.
Commissioner Ludeman inquired as to the bus situation.
Mr. Heuer responded that there have been some initial
discussions but the MTC has not responded to the issue recently.
John Dean, HRA Attorney, described the mayor components of
the developers agreement, including purchase requirements and the
assessment agreement.
Sid Inman, Publicorp, Inc., spoke to the economic viability
of the Hub West project. Even with the latest property class
rate changes the project remains economically viable.
Commissioner Wozniczka asked if the increment from Hub West
and East will cover the costs of the proposed improvements.
Sid Inman responded yes.
Commissioner Wozniczka requested copies of frozen tax
information parcel by parcel.
Mr. Inman responded he would provide this information to
Commissioner Wozniczka.
Commissioner Wozniczka asked about the delay in putting-the
developers agreement together exceeding the letter of intent.
Mr. Dean responded that there were a host of issues which
impacted upon the process causing unavoidable delays.
Attorney Dean stated that the lenders will still be making
some changes to the agreement. He added that in any resolution
approving the project is to include only changes substantially in y
conformance with the current contract.
M/Helmberger, S/Harms to close the public hearing.
Motion carried 4-0.
M/Ludeman, S/Helmberger that the following resolution be
adopted to include part c. language in substantial conformance
with the current contract; that it be spread in the resolution
book and that it be made part of these minutes:
HRA RESOLUTION NO. 416
RESOLUTION RELATING TO THE SALE OF CERTAIN LAND LOCATED WITHIN
THE LYNDALE/HUB/NICOLLET COMMERCIAL IMPROVEMENT
PROJECT AREA AND
APPROVING CONTRACT FOR PRIVATE DEVELOPMENT
Motion carried 3-l. (Wozniczka opposed) This resolution
appears as HRA Resolution No. 416 in Resolution Book No. 3.
HRA Meeting Minutes -3- June 10, 1991
Item #3 CONSIDERATION OF RESOLUTION ESTABLISHING APPROVED
APPRAISALS OF VALUE, HUS WEST.. HRA LETTER NO. 12
Executive Director Prosser reviewed HRA Letter No. 12
regarding consideration of a resolution establishing approved
appraisals of value for Lyndale-Hub-Nicollet Improvement Project,
Hub West.
HRA Attorney Dean stated that the item "leasehold fixtures"
would be removed from the resolution and would be handled in a
separate action.
M/Helmberger, S/Harms that the following resolution be
adopted• that it be spread in the resolution book and that it be
made dart of these minutes:
HRA RESOLUTION NO 41?
RESOLUTION ESTABLISHING APPROVED APPRAISAL OF
VALUE FOR CERTAIN REAL PROPERTY; LYNDALE-HUB-NICOLLET
IMPROVEMENT PROJECT
Motion carried 3-1. (Wozniczka opposed) This resolution
appears as HRA Resolution No. 417 in Resolution Book No. 3.
Item #4 APPROVAL OF A NEGOTIATED SETTLEMENT WITH SNYDER'S DRUG
STORES, INC., HUB WEST. HRA LETTER NO. 13
HRA Attorney Dean reviewed HRA Letter No. 13 regarding
approval of a negotiated settlement with Snyder's Drug Stores,
Inc., Hub West.
M/Helmberger, S/Harms o aAOrove the recommended settlement
W{th SnXder's Drug Stored Inc. for 525 ~tZ00.
Motion carried 2-2. (Wozniczka and Ludeman opposed)
Commissioner Ludeman stated he was unclear on the figures.
Community Development Director Wallace reviewed the
difference between the movable and immovable fixtures. The
movable fixtures were negotiated at $84,000 while the moveable
fixtures at $57,000.
Commissioner Luettinger arrived at this time (6:50 p.m.).
Executive Director Prosser once again reviewed HRA Letter
No. 13 concentrating on the costs contained for all fixtures•and
the relocation benefit.
Commissioner Wozniczka asked if it was true that Snyder's
would not be relocating the store.
HRA Meeting Minutes -4- ~ June 10, 1991
HRA Attorney Dean responded they will be moving these
fixtures into storage for a period of approximately 2 years
before relocating.'
M/Helmberger, S/Luettinger to aparove the recommended
settlement with Snyder's Drug Stores, Inc. for 5215,000.
Motion carried 4-1. (Wozniczka opposed)
Item #5 EXECUTIVE DIRECTOR REPORT
Chairman Harms reminded Commissioners that the next regular
HRA Meeting will be Monday, .June 17, 1991.
Item #6 CLAIMS-AND PAYROLLS
None
ADJOURNMENT
The HRA meeting was adjourned by u imous consent at 6:56
p . m . f~;
Date Approved: 7~22~91 ~~~~ ~~~~~~
homas Harms Chairman
! ~ "~
e en L. evi h Jam s D. Prosser
Acting City Clerk x utive Director