09-16-1991CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
SEPTEMBER 16, 1991
HRA MEMBERS PRESENT: Tom Harms; Joan Helmberger; Ivan Ludeman;
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 Chair Harms 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 RESOLUTION AMENDING A SECTION S
PROGRAM ADMINISTRATIVE AGREEMENT WITH METROPOLITAN
COUNCIL HRA TO PROVIDE AN INDEPENDENT RICHFIELD
PROGRAM. HRA LETTER NO. 32
Executive Director Prosser reviewed HRA Letter No. 32
regarding consideration of a resolution amending a Section 8
program administrative agreement with Metropolitan Council HRA to
provide an independent Richfield program.
There was general discussion concerning the Program
participation waiting list.
Commissioner Ludeman asked if any staff would be added.
Executive Director Prosser responded that no staff would be
added.
Chair Harms asked if this local administration of the
Section 8 program is still living up to financial projections,
wherein the program is paying for itself.
Executive Director Prosser responded that it was.
M/Luettinger, 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 Minutes -2- September 16, 1991
HRA RESOLUTION NO. 429
AMENDING A SECTION 8 PROGRAM AGREEMENT
WITH THE METROPOLITAN COUNCIL HRA
Motion carried 5-O. This resolution appears as Resolution No.
429 in HRA Resolution Book 3. •
Item #3 CONSIDERATION OF PROCESS TO SPREAD FISCAL DISPARITIES
CONTRIBUTION FOR THE ILN TO CITY IF STATE ENABLING
LEGISLATION ADOPTED. HRA LETTER NO. 33
Executive Director Prosser reviewed HRA Letter No. 33
regarding consideration of a process to spread fiscal disparities
contribution for the ILN to City if state enabling legislation is
adopted.
Chair Harms said he ~~as comfortable c,~ith the concept but
wanted the process changed to add a point study session of City
Council and HRA on the subject before the public meetings.
Commissioner Wozniczka suggested adding a financial benefits
analysis to provide information on when the project will come
onto the tax base.
Chair Harms stated that he felt this type of information may
be utilized•but he was not in favor of tying the staff down with
a structured formula.
Commissioner Ludeman said he understood the idea but felt it
would be difficult to implement.
Executive Director Prosser had some concerns with this
particular concept. In one sense, the structured financial
feasibility on the front end of the project could actually work
against us when negotiating and structuring a project.
Sid Inman, Publicorp, stated he was now analyzing the cost
of doing nothing in the ILN and how the Mall of America could
effect our fiscal disparities in the future.
Commissioners Harms and Ludeman spoke in support of the
process proposed by staff with the proposed amendment.
Commissioner Wozniczka stated that he was against the
concept. •
M/Ludeman, S/Helmberger to approve the proposed process to
spread fiscal disparities contribution for the ILN to City if
State enabling legislation adopted.
Motion carried 4-1. (Wozniczka opposed )•
HRA Minutes -3- September 16, 1991
ITEM #4 PUBLIC HEARING AND CONSIDERATION OF•RESOLUTION WHICH
AUTHORIZES DISPOSITION OF THE HRA OWNED PROPERTY AT 7101
FIRST AVENUE. HRA LETTER NO. 34 '
Executive Director Prosser reviewed HRA Letter No. 34
regarding a public hearing and consideration of a resolution
which authorizes disposition of the HRA owned property at 7101
First Avenue.
Commissioner Luettinger asked why there were no garages.
Executive Director Prosser responded that it was a
cost/value issue.
M/Luettinger, S/Helmberger to close the public hearing.
Motion carried 5-0.
Commissioner Wozniczka spoke in opposition to the project
because he felt the HRA was doing a disservice to the buyer by
selling an $84,000 home to a family with an annual income of less
than $25,000.
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 N0. 430
RESOLUTION AUTHORIZING SALE OF REAL
PROPERTY LOCATED AT
7101 FIRST AVENUE SOUTH
Motion carried 4-1. (Wozniczka opposed). This resolution appears
as Resolution No. 430 in HRA Resolution Book 3.
ITEM #5 CONSIDERATION OF PROPOSAL FOR PURCHASE OF CLOVERLEAF
SITE. HRA LETTER N0. 35
Executive Director Prosser reviewed HRA Letter No. 35
regarding consideration of proposal for purchase of Cloverleaf
site.
Chuck Woleska, Resolution Trust Corporation (RTC) and Jim
McCaffrey, Towle Real Estate addressed the HRA regarding this
proposed purchase. Mr. Woleska spoke of the sincere effort and
cooperation of all groups involved in the series of discussions
' of the potential purchase of this property.
HRA Minutes -4- September 16, 1991
Mr. Prosser stated that the purchase price indicated in the
HRA letter is not meant to be a statement of what the property is
worth. Instead the HRA and City are looking at several other
issues relating to this particular property. He said the HRA may
have to sit on the property for at least five years and may be
criticized for taking the property off of the tax roles.
However, he added, there is a. need to have control over this •
property in the larger picture of the ultimate development of the
ILN area.
Executive Director Prosser further added that he had
discussed the issue of this purchase offer with City Council
Members individually.
Sid Inman described four different financing scenarios
including cash flows for financing the Cloverleaf site purchase
through tax increment proceeds. In all scenarios there was
adequate cash. Mr. Inman stated that it was clearly in the HRA's
interest not to sell bonds to finance the purchase but rather to-
take advantage of the RTC financing offered.
Chair Harms stated that he supported .the HRA staff suggested
offer price of $1,700,000 with financing provided through the
RTC.
Commissioner Wozniczka said he was concerned about the
property deteriorating if it is attained by the HRA and sits
vacant for several years.
The Executive Director responded that he was aware of that
potential problem, but that staff would properly maintain the
property.
There was general discussion concerning proper procedure in
this matter, including public hearing requirements and City
Council participation.
Mr. Prosser stated that a public hearing would be utilized
for the actual sale if it occurs, but that this evening's action
was to formulate a proposal.
Commissioner Ludeman stated that it seemed to be a good
proposal for both sides.
- Commissioner Helmberger also stated that she supported the
acquisition proposal based on a need for control of the property.
M/Ludeman, S/Helmberger to approve proposal for•purchase of
Cloverleaf site.
Motion carried 5-0.
HRA Minutes -5- September 16, 1991
1
ITEM #6 EXECUTIVE DIRECTOR REPORT
Chair Harms reviewed a letter (see HRA Memo No. 31) from
Commissioner Wozniczka requesting that 13 additional items be
added to this evening's agenda. Executive Director Prosser was
asked to respond to how much additional time was necessary to
address these issues and what work priority items would have to
be pushed back to accommodate these additions.
Mr. Prosser began to read the letter addressing each item
specifically. The mayor areas of concern covered by Mr. Prosser
were the agreement for Hub West, the proposed airport planning
division and related issues.
Mr. Prosser stated that he had to leave the meeting at this
paint (8:20 p.m.) to address the Richfield School Board regarding
airport strategies.
Acting Executive Director Devich continued to address points
in the letter regarding the HRA tax levy, HRA financial report,
and the Vo-tech homes. Mr. Wozniczka stated that his questions
were adequately answered and that he was also meeting with the
City's Finance Manager regarding some of the same topics within
the next few days. .
ITEM #7 CLAIMS AND PAYROLLS
M/Ludeman, S/Helmberger that the following claims and
payrolls be ap~Droved:
FIRSTAR BANK
Checks: 1219-1225; 2783-2882; 9917-9923;
10688-10722 5166,330.55
1043 Section 8 $ 65,000.00
Motion carried 5-0.
Ad3ournment
The meeting was adjourned by unanimgonsent at 8:3,3 p.m.
Dat Approved : 10 / 21 / 91 f ~,'' ~
omas H r
r
~ S e en L. Dev ch Ja D. P osser
Acting City Clerk ~ xe tive Director