05-17-1993CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
May 17, 1993
HRA MEMBERS PRESENT: Thomas Harms; Joan Helmberger; Russ Susag;
and Vern Luettinger.
HRA MEMBER ABSENT: Larry Wozniczka
STAFF PRESENT: James D. Prosser, Executive Director; Steven
Devich, Administrative Services
Director/Acting City Clerk; Byron Wallace,
Community Development Director; Bruce
Palmborg, Housing and Redevelopment
Coordinator; and .Bruce Nordquist, Housing
Supervisor.
OTHERS PRESENT: Ryan Karis, Habitat for Humanity; Sid Inman,
Publicorp; Bill Schatzlien, Affordable
Suburban Housing, Inc.; and David Sumnicht
and Steve Quam, Sumnicht & Associates (QSA)
The meeting was called to order by Chair Harms at 7:03 p.m.
APPROVAL OF MINUTES
M/Susag, S/Helmberger to approve the minutes of the HRA
meeting of April 19, 1993.
Motion carried 4-0.
ITEM #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
No one wished to address the HRA.
ITEM #2 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF RICHFIELD REDISCOVERED PROPERTY AT
6225-14TH AVENUE TO HABITAT FOR HUMANITY, HRA LETTER
NO. 17
Executive Director Prosser introduced HRA Letter No. 17
regarding public hearing and consideration of resolution
authorizing sale of Richfield Rediscovered Property at 6225-14th
Avenue to Habitat for Humanity. Housing Supervisor Bruce
Nordquist reviewed the terms and conditions of the project and
the resolution authorizing the sale of property at 6225-14th
Avenue.
HRA Minutes -2- May 17, 1993
Commissioner Luettinger asked if the storage area would
provide for a parking pad.
Mr. Nordquist responded that the parking pad will be located
in a manner to allow a future garage.
Commissioner Luettinger asked if the neighbors were aware of
the project timeframe.
Mr. Nordquist stated that it was not specifically covered
but that staff would do so.
Mr. Prosser asked if a buyer had already been identified.
Ryan Karis, Habitat for Humanity, replied that a buyer had
not yet been selected. He also described the buyer selection
process.
Commissioner Helmberger asked Mr. Karis to describe the
homeowner follow-up.
Mr. Karis described the family partner and family nurture
programs.
M/Luettinger, S/Susag to close the public hearing. Motion
carried 4-0.
M/Luettinger, 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. 474
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT 6225-14TH AVENUE
TO TWIN CITIES HABITAT FOR HUMANITY IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
Motion carried 4-0. This resolution appears as Resolution
No. 474 in HRA Resolution Book No. 4.
ITEM #3 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF RICHFIELD REDISCOVERED PROPERTY AT
7520 AND 7528 BRYANT AVENUE TO MARLIN GRANT HOMES, INC.,
HRA LETTER NO. 18
Executive Director Prosser reviewed HRA Letter No. 18
regarding public hearing and consideration of resolution
authorizing sale of Richfield Rediscovered property at 7520 and
7528 Hryant Avenue to Marlin Grant Homes, Inc.
HRA Minutes .-3- May 17, 1993
M/Helmberger, S/Susag that the vublic hearing be closed.
Motion carried 4-0.
M/Luettinger, S/Susag 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. 475
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT 7520 AND 7528 BRYANT AVENUE
TO MARLIN GRANT HOMES, INC., IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
Motion carried 4-0. This resolution appears as Resolution
No. 475 in HRA Resolution Book No. 4.
ITEM #4 CONSIDERATION OF ADOPTION OF RESOLUTION ESTABLISHING THE
RICHFIELD REDEVELOPMENT PROJECT AREA AND MODIFYING
EXISTING REDEVELOPMENT PROJECT AREAS AND TAX INCREMENT
_ DISTRICTS, HRA LETTER NO. 19
Executive Director Prosser reviewed HRA Letter No. 19
regarding consideration of adoption of resolution establishing
the Richfield Redevelopment project area and modifying existing
redevelopment project areas and tax increment districts.
Mr. Prosser also stressed that the HRA staff would continue
to provide a separate periodic financial reporting of each
district. The Executive Director summarized the reasons why
staff is proposing the removal of the Corporate Travel site from
the district.
Commissioner.. Lusttinger.._asked. why. the .value decline.:.af. the
Corporate Travel building was so significant.
Mr. Prosser responded that it was a function of the general
commercial market and vacancy rates.
Commissioner Luettinger asked if this move would jeopardize
the original guidelines of the LHN.
Mr. Prosser responded that it would not.
• Commissioner Helmberger asked why the change was worded
differently for the LHN than the other T.I.F. .districts.
HRA Minutes -4= May 17, 1993
Sid Inman, Publicorp, responded that the pre-1979 law, under
which the LHN was created, is different.
Mr. Prosser asked if HRA Commissioners could be present for
the June 14 City Council meeting considering this matter.
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. 476
RESOLUTION APPROVING THE REDEVELOPMENT PLAN FOR THE
RICHFIELD REDEVELOPMENT PROJECT AREA,
MODIFICATION OF CERTAIN REDEVELOPMENT PLANS AND
TAX INCREMENT FINANCING PLANS,
AND RECOMMENDING APPROVAL BY THE CITY COUNCIL
Motion carried 4-0. This resolution appears as Resolution
No. 476 in HRA Resolution Book No. 4.
ITEM #5 CONSIDERATION OF AUTHORIZATION TO INITIATE A HOUSING
PROJECT AT 7021 NICOLLET AVENUE WITH AFFORDABLE SUBURBAN
HOUSING, INC., HRA LETTER N0. 20
Executive Director Prosser reviewed HRA Letter No. 20
regarding consideration of authorization to initiate a housing.
project at 7021 Nicollet Avenue with Affordable Suburban Housing,
Inc.
Chair Harms conveyed a concern expressed by Commissioner
Wozniczka that these lots be sold directly to private developers
without HRA involvement.
Chair Harms asked what criteria Mr. Schatzlien would use to
qualify buyers.
Mr: Schatzlien Affordable :Suburban.- Housing; ~ Inc. ~ ASH) ,
stated that no firm oriteria Piave been established to date. He
indicated it would likely target first time homebuyers who would
qualify fo~_the pro~ect._ Mr. Schatzlien said_that_they-would
assist someone attain financing, once they found someone who is
interested.
Executive Director Prosser. emphasized that this is a new
concept-and ha was seeking the HRA`s reaction..and _direction..in _
this type of plan. He said there was no need to provide anything
during this meeting.
Commissioners stated that ..they wished to see the criteria
for qualifying buyers and the plans for the specific project.
M/Luettiriger, S/Susag tci initiate a housinq_pro,ject at 7021
Nicollet Avenue with Affordable Suburban Housing,' Inc.
Motion carried 4-0.
1
HRA Minutes
-5-
May 17, 1993
ITEM #6 CONSIDERATION OF PRIORITIZATION OF DEVELOPMENT FUND
INITIATIVES, HRA LETTER NO. 21
Executive Director Prosser reviewed HRA Letter No. 21
regarding consideration of prioritization of Development Fund
initiatives. Mr. Prosser stated that the three program concept
priorities are Richfield Rediscovered, Transformation Homes and
an Apartment Management Program.
Chair Harms stated that he felt that the programs such as
Richfield Rediscovered should be the focus of the discussion
concerning the development fund. He stated that he felt that the
merits and needs of these programs should be brought out and that
of the funding necessary to meet these needs. Mr. Harms stated
that there is a cost to the community of not doing these
projects, such as reduced property values and public safety
services. Chair Harms also stated that for the 1990's, the City
must focus on the City's apartment buildings.
There was general discussion concerning the City's apartment
and point of sale inspection programs.
Chair Harms stated that we need to work with financial
institutions and others for redevelopment of buildings.
ITEM #7 CONSIDERATION OF AUTHORIZATION OF A NEW HOUSING CONCEPT,
TRANSFORMATION HOUSING, AT 6500 JAMES AVENUE, HRA LETTER
NO. 22
Executive Director Prosser reviewed HRA Letter No. 22
regarding consideration of authorization of a new housing
concept, transformation housing, at 6500 James Avenue.
David Sumnicht and Steve Quam, Sumnicht & Associates (QSA),
presented a brief background of the firm and the objectives of
the firm.
Mr. Quam described QSA experiences in Roseville and
presented a series of slides of homes in Richfield and other
areas which have either been rehabilitated or could use such
upgrading.
Shan Lee, an architect working with QSA, presented some
design concept ideas, including designs for the rehabilitation of
6500 James Avenue.
Mr. Sumnicht presented a brief pro-forma of a proposal
transformation project at 6500 James. The market value of the
concept presented by Mr. Lee would be in the $135,000 range.
HRA Minutes -6- May 17, 1993
Mr. Sumnicht said that the project would begin within a 90
day period. He stated that the rehabilitation would not be done
on speculation but instead would be developed with the buyer.
Hruce Nordquist stated that the HRA's involvement would be
to move ahead to notify HUD of the purchase of the property by
the HRA. The actual purchases by the HRA of the property would
be closely timed with the QSA rehabilitation design process.
There was general discussion concerning the transformation
project versus Richfield Rediscovered and the City's speculative
cost on this project.
M/Susag, S/Luettinger to approve authorization of a new
housing concept, transformation housing, at 6500 James Avenue.
Motion carried 4-0.
ITEM #8 CONSIDERATION OF AUTHORIZATION TO SECURE LIEN REPAYMENT
ON PROPERTY AT 7245 HUMBOLDT AVENUE, HRA LETTER NO. 23
Executive Director Prosser reviewed HRA Letter No. 23
regarding consideration of authorization to secure lien repayment
on property at 7245 Humboldt Avenue.
Chair Harms stated that the City's position in these matters
would be bid at the foreclosure sale. This should take place
before the notice to redeem in the future.
M/Helmberger, S/Susag to approve authorization to secure
lien repayment on property at 7245 Humboldt Avenue.
Motion carried 4-0.
ITEM #9 CONSIDERATION OF AUTHORIZATION TO ISSUE CERTIFICATES OF
COMPLETION TO MARLIN GRANT HOMES INC. FOR RICHFIELD
REDISCOVERED PROPERTIES AT 7500 BRYANT, 6641 OLIVER,
6407-15TH AND 6415-15TH AVENUES, HRA LETTER NO. 24
Executive Director Prosser reviewed HRA Letter No. 24
regarding consideration of authorization to issue certificates of
completion to Marlin Grant Homes Inc. for Richfield Rediscovered
properties at 7500 Bryant, 6641 Oliver, 6407-15th and 6415-15th
Avenues.
Mr. Prosser stated that staff is very thorough to insure
that all aspects of the projects are complete.
HRA Minutes -7- May 17, 1993
M/Susag, S/Helmberger to approve authorization to issue
certificates of completion to Marlin Grant Homes Inc. for
Richfield Rediscovered properties at 7500 Bryant. 6641 Oliver.
6407-15th and 6415-15th Avenues.
Motion carried 4-0.
ITEM #10 EXECUTIVE DIRECTOR REPORT
Executive Director Prosser stated that the School Board has
asked that the HRA attend the June 7 School Board meeting to
discuss the T.I.F. project changes proposed.
ITEM #5 CLAIMS AND PAYROLL
M/Luettinger, S/Susag that the following claims and payroll
be approved.
FIRSTAR BANK
Checks: HRA: 5130-5241; 11343-11356; 11828-11861 $271,305.60
Section 8: 1065
Motion carried 4-0.
ADJOURNMENT
90,000.00
The meeting was adjourned by unanimous sent at 9:00 p.m.
Date Approved: 6/21/93
homas Harms Chair
~c
Steven D v ch a D. Prosser
Acting City Clerk Exe tive Director
I