06-17-1991CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
JUNE 17, 1991
HRA MEMBERS PRESENT: Joan Helmberger; Vern Luettinger;
and Lawrence Wozniczka.
STAFF PRESENT: Jim Prosser, Executive Director;
Steven Devich, Administrative Services
Director/Acting City Clerk; Byron Wallace,
Community Development Director; Bruce
Palmborg, Housing & Redevelopment
Coordinator
The meeting was called to order by Vice Chair Luettinger at
7:00 p.m.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
No one wished to address the HRA.
Item #2 CONSIDERATION OF MODIFICATION OF DEVELOPMENT AGREEMENTS
WITH MARV ANDERSON HOMES, INC. (MARV ANDERSON). HRA
LETTER N0. 14
Executive Director Prosser reviewed HRA Letter No. 14
regarding consideration of modification of development agreements
with Marv Anderson Homes, Inc. (Marv Anderson).
Commissioner Wozniczka asked why the construction completion
dates on some units are out to July when presently occupied and
asked Mr. Palmborg to explain the $20,000 letter of credit.
Mr. Palmborg, HRD Coordinator, responded that the units in
question are not finaled out and explained the letter of credit.
M/Wozniczka, S/Helmberger to approve the modifications of
the development agreements with Marv Anderson Homes, Inc.
Motion carried 3-0.
Item #3 CONSIDERATION OF EXPANDED NEW HOME PROGRAM (ENHP)
PROGRESS REPORT. HRA LETTER N0. 15
Executive Director Prosser reviewed HRA Letter No. 15
concerning consideration of Expanded New Home Program (ENHP)
progress report.
HRA Meeting Minutes -2- June 17, 1991
Executive Director Prosser asked the representative from
Marv Anderson Homes to address the HRA.
Marlin Grant, President of Marv Anderson Homes, presented a
status report on the Expanded New Home Program. Mr. Grant
reported on the additional sale of another home on Mildred Drive
and that six homes are now completed. Mr. Grant reviewed a new
sales sign to be used on each property and also distributed a new
brochure.
Commissioner Wozniczka asked why the homes being built are
so small.
Mr. Grant responded that there is a competition between
attractive price, home size and existing neighborhood.
There was discussion regarding the cost per square foot.
Executive Director Prosser stated that it is the staff's
recommendation to offer the next seven lots to any builder after
30 days when agreement terminates and that a modified program be
brought back to the HRA at the July meeting.
There was general discussion concerning sales strategies,
the sound proofing and lot prices in Richfield versus the third
and fourth ring suburbs.
Commissioners Luettinger and Helmberger complemented the
Marv Anderson Company for their high quality work on this
program.
M/Helmberger, S/Wozniczka to receive the report from Marv
Anderson Homes. and authorize staff to:
A. Notify Marv Anderson Homes that the pending sale of
seven lots by the HRA wil be terminated in
accordance with the agreement in 30 days.
H. Prepare program modifications for consideration at
the July HRA meeting.
Motion carried 3-0.
Item #4 CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE
AGREEMENT AND ACQUISITION OF 6803 NICOLLET AVENUE.
HRA LETTER NO. 16
Executive Director Prosser reviewed HRA Letter No. 16
regarding consideration of resolution authorizing purchase and
acquisition of 6803 Nicollet Avenue.
HRA Meeting Minutes -3- Juna 17, 1991
Commissioner Wozniczka asked what is balance of CDBG funds
to be used for this purchase.
Mr. Prosser responded that it was roughly $25,000.
Commissioner Wozniczka stated that he felt this wasn't a
real problem area and to let a private builder handle this
problem.
Mr. Prosser responded that Mr. Wozniczka had a legitimate
point but that purchase of this site afforded the City the
opportunity to take control of this situation.
Commissioner Helmberger asked if the purchase of another lot
with a building was possible with funds now available.
Mr. Palmborg, Housing & Redevelopment Coordinator, stated
there were no other lots available at this affordable price.
M/Helmberger, 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. 418
RESOLUTION AUTHORIZING THE ACQUISITION OF
6803 NICOLLET AVENUE
Motion carried 3-0. This resolution appears as Resolution No.
418 in HRA Resolution Book 3.
Item #5 CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF
CONTRACTS WITH SOUTH HENNEPIN VOCATIONAL TECHNICAL
SCHOOL (VO-TECH) TO INITIATE TWO 1991-92 PROJECTS.
HRA LETTER N0. 17
Executive Director Prosser reviewed HRA Letter No. 17
regarding consideration of resolution authorizing execution of
contracts with South Hennepin Vocational Technical School (Vo-
Tech) to initiate two 1991-92 projects. The projects would be
located at 6318 Nicollet Avenue and 6803 Nicollet Avenue.
Commissioner Helmberger asked if we've tried the Federal
Home Loan Bank funding a new concept.
Mr. Prosser said yes.
Commissioner Wozniczka asked a series of questions
concerning the financing used to fund these projects.
Executive Director Prosser provided an explanation of the
financing.
HRA Meeting Minutes -4- June 17, 1991
Mr. Prosser said there was a neighborhood meeting on this
project. The immediate neighbor wanted to purchase the site and
combine it with his home, but he was unable to secure financing.
There was considerable discussion concerning the floor plan
of the proposed plan for 6803 Nicollet especially the location of
the bathroom. It was the general consensus that this was the
best plan for the width of the lot and the other features of the
house that were desired.
M/Helmberger, 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:
RESOLUTION NO. 419
RESOLUTION AUTHORIZING CONTRACT WITH VO-TECH
6803 NICOLLET AVENUE
Motion carried 3-0. This resolution appears as Resolution
No. 419 in HRA Resolution Hook No. 3.
M/Helmberger, 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:
RESOLUTION NO. 420
RESOLUTION AUTHORIZING CONTRACT WITH VO-TECH
6318 NICOLLET AVENUE
Motion carried 2-1 (Wozniczka opposed). This resolution
appears as Resolution No. 420 in HRA Resolution Book No. 3.
Item #6 CONSIDERATION OF RESOLUTION AUTHORIZING SUBMISSION OF
AN ALTERNATIVE CONSERVATION IMPROVEMENT PLAN TO
MINNESOTA DEPARTMENT OF PUBLIC SERVICES. HRA LETTER
NO. 18
Executive Director Prosser reviewed HRA Letter No. 18
regarding consideration of resolution authorizing submission of
an alternative conservation_improvement plan to Minnesota
Department of Public Services.
L
HRA Meeting Minutes -5- June 17, 1991
M/Luettinger, S/Wozniczka that the following resolution be
adoQted; that it be spread in the resolution book and that it be
made part of these minutes:
RESOLUTION N0. 421
RESOLUTION AUTHORIZING SUBMISSION OF AN ALTERNATIVE
CONSERVATION IMPROVEMENT PLAN TO THE MINNESOTA DEPARTMENT
OF PUBLIC SERVICES
Motion carried 3-0. This resolution appears as Resolution
No. 421 in HRA Resolution Book No. 3.
ITEM #7 CONSIDERATION OF RESOLUTION AUTHORIZING AGREEMENT WITH
NKS CONSULTING, INC. TO PROVIDE BUSINESS ENERGY CHECKUP
AUDIT SERVICES. HRA LETTER NO. 19
Executive Director Prosser reviewed HRA Letter No. 19
regarding consideration of resolution authorizing agreement with
NKS Consulting, Inc. to provide business energy checkup audit
services.
Commissioner Helmberger asked if staff is aware of
businesses' reception to this proposal.
Mr. Palmborg responded, yes, they are very receptive.
Commissioner Wozniczka asked if there were any costs to the
City.
Mr. Prosser stated none other than administration.
M/Helmberger, 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:
RESOLUTION NO. 422
RESOLUTION AUTHORIZING AN AGREEMENT
WITH NKS CONSULTING, INC.
Motion carried 3-0. This resolution appears as Resolution
No. 422 in HRA Resolution Hook 3.
HRA Meeting Minutes -6- June 17, 1991
ITEM #8 EXECUTIVE DIRECTOR REPORT
Executive Director Prosser summarized HRA Memorandum No. 19
regarding the status of various project areas with the City.
Item #9 CLAIMS AND PAYROLLS
M/Helmberger, S/Luettinger that the following claims and
payrolls be approved:
FIRST WESTERN BANK
Checks 1211-1214; 2407-2500; 9849-9877; $318,435.77
10462-10500
Checks 1036-1037
Section 8 $ 81,000.00
FIRST WESTERN BANK
Checks 2501-2594; 9878-9886; 10506-10539 $176,717.63
Checks 1038-1040 90,000.00
Motion carried 2-0 (Wozniczka abstained).
f~_~~~Ii~~l~~~~+ y
The meeting was adjourned by unanimous nsent at 8:37 .m.
Date Approved: 7/15/91 ~~ ` ~ v/~~
omas Harms Chair
even L. Devich
Acting City Clerk
/~~-'
Jam D. Prosser
xe utive Director