05-18-1992CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
MAY 18, 1992
HRA MEMBERS PRESENT: Thomas Harms; Ivan Ludeman; Vern
Luettinger; and Larry Wozniczka.
HRA MEMBER ABSENT: Joan Helmberger.
STAFF PRESENT: James D. Prosser, Executive Director;
Steven Devich, Administrative Services
Director/Acting City Clerk; Bruce
Palmborg, Housing & Redevelopment
Coordinator; Byron Wallace, Community
Development Director.
OTHERS PRESENT: Dave Smith, Hennepin County Vo-Tech
The meeting was called to order by Chair Harms at 7:00 p.m.
APPROVAL OF MINUTES
M/Ludeman, S/Luettinger to approve the minutes of the
Regular HRA Meeting of April 20, 1992 as amended. Commissioner
Wozniczka wished to speak to Item #2 in the minutes, later in the
meeting.
Motion carried 4-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
Betty Carr, 6633 Lynwood Avenue, suggested that upon closing
on the purchases along 77th Street, residents involved be made
aware of housing opportunities in Richfield available to them.
Item #2 CONSIDERATION OF PROJECT REVIEW AND DISCUSSION RELATED
TO VO-TECH COMPONENT OF NEW HOME PROGRAM.
HRA LETTER NO. 16
Executive Director Prosser reviewed HRA Letter No. 16
regarding consideration of project review and discussion related
to Vo-Tech component of New Home Program.
HRA Minutes -2- May 18, 1992
Byron Wallace, Community Development Director, summarized
the benefits of working with Vo-Tech for selected home building
projects, including issues such as home design, handicapped
accessibility, minimizing the toxicity of building materials, the
construction schedule, marketing and cost benefits.
Dave Smith, Hennepin County Vo-Tech, stated that the program
is also beneficial to the Vo-Tech. He apologized for the delay
in the current project.
Chair Harms asked Mr. Smith if Vo-Tech could work with local
church or organizational groups on a program such as Habitat for
Humanity, to do local fixup or construction.
Mr. Smith stated that Vo-Tech didn't do plumbing or
electrical work, but might be able to get involved in such a
program at some level.
Commissioner Luettinger asked how long our point program has
been going on.
Mr. Smith responded, since approximately 1978.
Commissioner Wozniczka asked a series of construction
procedure related questions, regarding simplicity of
construction, handicapped accessibility and measurement of
toxicity.
Mr. Smith responded to each issue.
Commissioner Ludeman asked if students design the homes.
Mr. Smith responded that an instructor draws the plan.
it was the consensus of the HRA that Vo-Tech does an
excellent fob.
Chair Harms asked staff to approach local churches or groups
to sae if a local chapter of a Habitat for Humanity, or similar
project could be started.
M/Luettinger, S/Ludeman to continue the Vo-Tech component of
the New Home Program as designed.
Motion carried 3-1 (Woznicka opposed).
Item #3 CONSIDERATION OF RESOLUTION RELATING TO AMENDING VO-TECH
CONSTRUCTION AGREEMENTS FOR 7528 COLFAX, 6803 NICOLLET
AND 6318 NICOLLET AVENUES. HRA LETTER NO. 17.
HRA Minutes -3- May 18, 1992
Executive Director Prosser reviewed HRA Letter No. 17
regarding consideration of a resolution relating to amending Vo-
Tech construction agreements for 7528 Colfax, 6803 Nicollet and
6318 Nicollet Avenues.
Commissioner Wozniczka stated that the 6318 Nicollet Avenue
lot is full of dandelions.
Executive Director Prosser said it will be taken care of.
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 NO. 448
RESOLUTION RELATING TO AMENDING
VO-TECH CONSTRUCTION AGREEMENTS
7528 COLFA~C, 6803 NICOLLET AND 6318 NICOLLET AVENUES
Motion carried 4-0. This resolution appears as Resolution
No. 448 in HRA Resolution Book No. 4.
ITEM #3A OTHER _ - ,
Commissioner Wozniczka said that the statement in the April
20, 1992 minutes that he was opposed to the Richfield
Rediscovered Program is not totally accurate. He stated that he
would support a modified program that was self-sustaining and
read a letter (attached hereto) to the HRA expressly stating his
suggestions for modifying the program. There was discussion
regarding one of the ideas contained in Mr. Wozniczka's letter
concerning the establishment of a publicly distributed buyers and
sellers list compiled by the City.
M/Ludeman, S/Luettinger to accept the letter as part of the
record. Motion carried 4-0.
M/Ludeman, S/Luettinger to amend the minutes of the Regular
HRA Meeting of April 20, 1992, as follows: Item #2. Executive
Director Prosser stated that Commissioner Wozniczka indicated to
him that he is epgeseel-fie-eke-eeat#sxa~#ea-ef-th#s-p~eg~am: in
favor of the program with private initiative options.
ITEM #4 EXECUTIVE DIRECTOR REPORT
HRA Minutes -4- May 18, 1992
Executive Director Prosser summarized the following items:
77TH STREET: Staff closed on the most difficult RALF
purchase yet - 7644 Nicollet.
The public hearing held on May 5 was attended by
approximately 75 people. Staff was kept busy responding to
questions related to the purchase and relocation process. The
only issues raised during the hearing related to design features.
No environmental issues were identified. The record will be kept
open for ten days to receive written remarks.
CLOVERLEAF SITE: The Easy Lawn Company will be maintaining
this site - cutting grass and removing debris at the direction of
staff .
HALLMARK CLEANERS: The owners have made a tentative
decision to apply for a building permit to provide for the
construction of a new building.
RICHFIELD REDISCOVERED: The City Council responded to the
request of the HRA and provided $500,000 of additional funding.
Staff is now working to implement Phase II. This will
likely result in agenda items for June.
NEW FORD TOWN AND RICH ACRES: The Full MAC Commission voted
today, 10-3, to direct MAC staff to proceed to find funds to
initiate the purchase of New Ford Town and Rich Acres.
Chair Harms stated that he has received information
concerning a perception that the City is not pursuing the loss of
tax base in New Ford Town and Rich Acres. He felt this was an
extremely important issue.
Executive Director Prosser responded that staff has been
keenly aware of that issue and have made it a part of discussions
with the MAC and the legislature. While tax reimbursement is not
a condition of the buyout, the chance of some reimbursement is
more likely. He went on to summarize the City's position and
strategy in this matter.
Commissioner Luettinger said that he understood that the
City would maintain control of the New Ford Town and Rich Acres
property. He added that he had real concerns with MAC
controlling the property upon purchase.
Mr. Prosser responded that it is the City's desire to
maintain control of the property, but that it is possible that
FAA regulations conaerning the use of these funds for the
purchase may require the MAC to take ownership and control of the
purchased property.
~n
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HRA Minutes
-5-
May 18, 1992
ST. PETER'S HOUSING: Commissioner Wozniczka reported that
St. Peter's Church did not initiate the proposed housing concept,
but that it was instead initiated by one of the immediate
residents of the St. Peter's Parish area.
ITEM #6 CLAIMS AND PAYROLL
M/Ludeman, S/Luettinger that the following claims and
payroll be approved.
FIRSTAR BANK
Checks: Section 8: 1053 $ 95,000.00
HRA: 3693-3808; 10018-10032;
11028-11060 $493,584.23
Motion carried 4-0.
C
ADJOURNMENT
The meeting was adjourned by unanimou nsent at 8:21 p,m.
e
Date Approved: 7/20/92 ~ ,~~G~~'~
~' omas Harms hair
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Steve L. ch James D. Prosser
Actin- City Clerk Executive Director
,_
6744 Wentworth Ave. S.
Richfield, MN 55423
~ May 19, 1992
Richfield Housing and Redevelopment Authority
Mr. Thomas Harms, Chair
City of Richfield
6700 Portland Ave. S.
Richfield, MN 55423
Dear Commissioners,
This letter summarizes my position on the Richfield Rediscovered
Program which was discussed at the April 20, 1992 HRA meeting
which I was unable to attend. The statement in the minutes that
"Commissioner Wozniczka indicated to him that he is opposed to
the continuation of this program" conveys the wrong impression
about my belief that the program should continue, but must be
modified so as to achieve growth.
Perpetuation of the Richfield Rediscovered Program depends upon
an increasing participation in a self-sustaining program. Under
the existing program, the seed-money loaned to initiate this
program becomes committed to write down of properties, requires
twenty-five years for repayment from tax-increment funds and can
be sustained only with continuing loans from other funds. Some
thoughts on improving the program follow.
RICHFIELD REDISCOVERED AND PRIVATE INITIATIVE
Interest in Richfield as a place to live and reinvest resulted
from the HRA initiated Expanded New Homes Program, now called the
Richfield Rediscovered Program. The success of that program
extended beyond those properties officially listed to its
credit. One such example relates to the redevelopment of the
property at 6801 Pleasant Avenue South.
An interested home buyer, attending one of the Richfield
Rediscovered promotions, came into contact with a builder, who
acquainted that buyer with a sub-standard house in the
neighborhood of buyer's interest. With no further HRA
investment, the home was purchased, demolished, and a substantial
new home built on the site within five months. The resultant
increase tax capacity achieves the goal of Richfield Rediscovered
immediately.
Success of the Richfield Rediscovered Program depends upon the
repetition of the redevelopment of 6801 Pleasant Avenue South.
How can the Richfield Rediscovered Program promote that type of
success?
RICHFIELD REDISCOVERED CLEARING HOUSE
In the course of developing the Richfield Rediscovered program,
the Richfield HRA accumulated a list of owners who are interested
in selling their properties for redevelopment. Fund limits
prevented most of these from being accomplished by the HRA and
necessitated some restraint in soliciting such owners. This
suggests a cost-effective method of continuing and expanding the
Richfield Rediscovered Program.
Huilding upon the progress to date and its designated function,
the HRA is positioned to sponsor a Clearing House for Residential
Redevelopment would require only modest resources to yield
significant results. The HRA Clearing House would serve to
maintain lists of interested sellers of sub-standard properties,
participating builders, and make this information available to
interested buyers of new homes in Richfield.
SUSTAINING RICHFIELD REDISCOVERED
Enlarging and maintaining seller-builder files and serving as an
information source for prospective new home buyers in Richfield
are the keys to growth of this program. Promotional activities
of Richfield Rediscovered would be an ongoing activity. Funding
for routine activities would be derived from builder
participation fees. While private initiative would be
emphasized, the HRA would be alert to special cases requiring
public participation in financing and mechanisms such as tax
increment financing.
Very truly yours,
~~~ _ ~J
L. R. Wozniczka
Copies: HRA Commissioners
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