04-19-1993CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
April l9, 1993
HRA MEM$ERS PRESENT: Thomas Harms; Joan Helmberger; Russ Susag;
Vern Luettinger; and Larry Wozniczka.
Steven
STAFF PRESENT: James D. Prosser, Executive Director;
' Devich, Administrative Services
Director/Acting City Clerk; Byron Wallace,
Community Development Director; and Bruce
Nordquist, Housing Supervisor.
OTHERS PRESENT: ~ HumanityisSiddlnmanLand MarkHRuffatPublicorp.
The meeting was called to order by Chair Harms at 8:35 p.m.
APPROVAL OF MINUTES
M/Susag, S/Harms to approve the minutes of the HRA meetinct of
m4... vn~ ~.+
March 15. 1993 amended on page seven as follows: ~-Susa wand
.,., ,~~. ._..~ ~~. Commissioners Harms, Helmberger, 9
Luettinger were in favor of this travel.
Motion carried 5-0.
ITEM #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
No one wished to address the HRA.
ITEM #2 CONSIDERATION OF. INITIATING A HOUSING PROGRAM WITH TWIN
CITIES HABITAT FOR HUMANITY AND RESOLUTION AUTHORIZING
ACQUISITION OF 6225-14TH AVENUE AND 6310-15TH AVENUE, HRA
LETTER N0. 15
Housing Supervisor Bruce Nordquist introduced Ryan Karis and
Jim Lincoln, Twin Cities Habitat for Humanity, who were present for
the discussion and reviewed HRA Letter No. 15 regarding
consideration of initiating a housing program with Twin Cities
Habitat for Humanity and resolution authorizing acquisition of
6225-14th Avenue and 6310-15th Avenue.
Ryan Karis made a brief presentation regarding the composition
and background of the Habitat for Humanity organization. He also
described how the mortgages, housing construction and related
activities of the organization are conducted.
HRA Minutes ~ -2- April 19, 1993
Chair Harms asked about the criteria for the selection of
families.
Mr. Karis described the income limitations for several different
sized families and other selection criteria.
Commissioner Helmberger asked what happens if the family moves
out after a year or two.
Mr. Karis responded that Habitat for Humanity has first right of
buyback for sale to another Habitat for Humanity family.
Commissioner Wozniczka asked who was responsible for demolition
costs in these projects.
Housing Supervisor Nordquist explained the demolition cost
arrangements for each site.
Commissioner Wozniczka stated that there is no revenue coming
into the Richfield Rediscovered Program for the sale of the lot.
Mr. Nordquist stated that this is correct.
Executive Director Prosser stated that while there is a cost
associated with this program it provides additional housing
opportunities in the City.
Commissioner Wozniczka suggested that since there are not enough
CDBG funds to buy both sites, one could be done next year.
Chair Harms asked if there was a potential for a City-carried
second mortgage payable if the house is eventually sold.
Mr. Nordquist said that the concept may be in conflict with
Habitat for Humanity guidelines but that issue could be further
explored.
Mr. Karis said that the Habitat for Humanity guidelines would
make it very difficult to use a second mortgage from the City.
Commissioner Luettinger asked what would happen if the local
Habitat for Humanity went bankrupt in the middle of constructing
these two projects.
Mr. Karis said that the international organization would take
them over and that he expected a fall finish on the first property or
perhaps before the end of the year.
Mr. Prosser stated that this was a preliminary approval, issues
regarding the second mortgage, default matters and demolition would
be further explored for presentation to the HRA.
M/Helmberger, S/Susag that the following resolution be adovted;
that it be sgread in the resolution book and that it be made Dart of
these minutes:
HRA Minutes -3- April 19, 1993
RESOLUTION NO. 471
RESOLUTION AUTHORIZING THE ACQUISITION OF
6225-14TH AVENUE AND 6310-15TH AVENUE
Motion carried 5-0. This resolution appears as Resolution
No. 471 in HRA Resolution Book No. 4.
ITEM #3 CONSIDERATION OF RESOLUTIONS: A) ESTABLISHING
DEVELOPMENT ACCOUNT; AND 8) REQUESTING CITY COUNCIL TO
SCHEDULE PUBLIC HEARING ON ESTABLISHMENT OF RICHFIELD
REDEVELOPMENT PROJECT AREA, MODIFICATIONS FOR CERTAIN
REDEVELOPMENT PROJECT AREAS AND FOR CERTAIN TAX
INCREMENT FINANCING DISTRICTS, HRA LETTER NO. 16
Executive Director Prosser reviewed HRA Letter No. 16
regarding consideration of resolutions: A) establishing
development account; and B) requesting City Council to schedule
public hearing on establishment of Richfield redevelopment
project area, modifications for certain redevelopment project
areas and for certain-tax increment financing districts.
Commissioner Luettinger asked if the public purpose
statement could be included in the legal notice or published as
information to the City.
Mr. Prosser stated that it was not a legal requirement but
will be featured in a future Your City & Schools publication.
There was general discussion regarding the construction of
the proposed new project area and tax increment financing
districts.
Sid Inman, Publicorp, stated that the only new area added
was the southeast corner of Richfield.
Commissioner Wozniczka questioned the original criteria for
TIF districts and stated that the development fund forestalls
prepayment of the TIF districts. He stated that he is skeptical
of the development fund concept and that other LHN redevelopment
won't get done.
Mr. Prosser stated that setting up the development fund
would not preclude further work in the LHN and restated that
prepayment of the LHN district would be of limited benefit to the
tax base, in the range of 17C per dollar.
Commissioner Wozniczka stated that he was opposed to taking
Corporate Travel out of the ILN.
HRA Minutes -4- April 19, 1993
Chair Harms stated that philosophically the LHN has upgraded
the area beyond original expectations and if we can leverage the
money from the District as a resource for further such development,
the HRA~should do so.
Mr. Prosser stated that if there are questions in any aspect
of the plan, staff can respond to them before the public hearing on
the plan. He added that the development account resolution does
not include any specific authority for expenditures.
Commissioner Wozniczka stated that he wanted an amendment to
keep Corporate Travel in the plan.
There was general discussion about the philosophical approach
to either including or removing Corporate Travel from the District.
Mark Ruff of Publicorp explained the financial implications of
removing Corporate Travel.
Sid Inman of Publicorp stated that a negative cash flow in a
TIF district requiring the use of other funding to cover could
impact the City's future bond rating.
Chair Harms said he supports removing Corporate Travel from
the ILN because there was no specific bonds for the project or a
minimum assessment agreement and the HRA's primary responsibility
is to ensure that they maintain the City's bond rating by making
sure the District stays financially solvent.
M/Susag, S/Helmberger 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. 472
RESOLUTION APPROVING THE ESTABLISHMENT OF A
DEVELOPMENT ACCOUNT AND SETTING FORTH THE PROCESS
FOR FUNDING A DEVELOPMENT ACCOUNT
Motion carried 5-0. This resolution appears as Resolution No.
472 in HRA Resolution Hook No. 4.
M/Susag, 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 N0. 473
RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY
OF RICHFIELD TO CALL FOR A PUBLIC HEARING ON THE
ESTABLISHMENT OF RICHFIELD REDEVELOPMENT PROJECT AREA,
MODIFICATIONS FOR CERTAIN REDEVELOPMENT
PROJECT AREAS AND FOR MODIFICATIONS FOR CERTAIN
TAX INCREMENT FINANCING DISTRICTS
['.
HRA Minutes -5- April 19, 1993
Motion carried 4-1. (Wozniczka opposed.) This resolution
appears as Resolution No. 473 in HRA Resolution Book No. 4.
ITEM #4 EXECUTIVE DIRECTOR REPORT
Executive Director .Prosser summarized HRA Memo No. 15 and also
reported on airport issues pertaining to Runway 4-22 and the New Ford
Town and Rich Acres buyout.
ITEM #5 CLAIMS AND PAYROLL
M/Susag, S/Helmberger that the following claims and payroll be
a~nroved.
FIRSTAR BANK
Checks: HRA: 5008-5129; 11329-11342; 11788-11824 $494,460.66
Section 8: 1064 91,000.00
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 9:52 p.m.
Date Approved: 5/17/93
Thomas Harms Chair
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S en L. Devic ames D. Prosser
Acting City Clerk ec tive Director