08-16-1993CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
August 16, 1993 '
HRA MEMBERS PRESENT: Thomas Harms; Joan Helmberger; Russ Susag;
and Larry Wozniczka.
HRA MEMBER EXCUSED: Vern Luettinger.
STAFF PRESENT: James D. Prosser, Executive Director; Steven
Devich, Acting Executive Director/Acting
City Clerk; Jack Erskine, Public Safety
Director; Byron Wallace, Community
Development Director; and Bruce Palmborg,.
Housing and Redevelopment Coordinator.
OTHERS PRESENT: Martin Kirsch, Mayor; Steve Quam, QSA; Ryan
Karis, Twin Cities Habitat for Humanity;
Bill Schatzlein, Affordable Suburban
Housing; and Ralph Kolby, Susan Baldwin and
Lauren Kline, Project for Pride in Living.
The meeting was called to order by Chair Harms at 7:00 p.m.
APPROVAL OF MINUTES
Commissioner Wozniczka asked that copies of his letter '
(Clerk File C-341) be forwarded to Commissioners Helmberger and
Susag.
M/Wozniczka, S/Susag to approve the minutes of the HRA
meeting of July 19, 1993 and the Special HRA meeting of Auaust 2.
1993.
Motion carried 4-O.
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 SINGLE FAMILY HOME DEVELOPMENT AT
6500 JAMES AVENUE TO QUAM, SUMNICHT AND ASSOCIATES,
INC. IN ACCORDANCE WITH DEVELOPMENT AGREEMENT, HRA
LETTER N0. 31
HRA Minutes -2- - August 16, 1993
Acting Executive Director Devich reviewed HRA Letter No. 31
regarding public hearing and consideration of resolution
authorizing sale of single family home development at 6500 James
Avenue to Quam, Sumnicht and Associates, Inc. in accordance with
development agreement.
Steve Quam, QSA, thanked the HRA for the opportunity to work
on this project and introduced the prospective buyers.
Mayor Kirsch, 6725 Penn Avenue, spoke in favor of the
project.
Commissioner Wozniczka stated that he wished to add that
"all necessary building permits be secured and point of sale
inspection and certificate of occupancy attained" be included in
the agreement, that the developer's agreement be attached to
minutes and that the developer and buyer report to the HRA on the
process at its conclusion.
Public Safety Director Erskine spoke to the HRA concerning
the point of sale inspection process.
Mr. Prosser stated that if these typically mandatory items
such as building permits are routinely listed individually and
something was omitted in a future agreement there may be a
problem.
Chair Harms stated that he had some concerns about those
additions to the agreement.
Mr. Quam stated that the building permits and certificate of
completion are covered in the developer's agreement.
Commissioner Wozniczka asked that he receive a copy of the
developer's agreement.
M/Susag, S/Helmberger to close the public hearing.
Motion carried 4-0.
M/Susag, S/Helmberger that the following resolution as
stated be adopted; that it be spread in the resolution book and
that it be made part of these minutes:
RESOLUTION NO. 479
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT 6500 JAMES AVENUE
TO QUAM, SUMNICHT AND ASSOCIATES INC. IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
HRA Minutes -3- August 16, 1993
M_otion carried 4-0. This resolution appears as Resolution
No. 479 in HRA Resolution Book No. 4.
ITEM #3 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF NEW HOME PROGRAM PROPERTY AT.6310-
15TH AVENUE TO TWIN CITIES HABITAT FOR HUMANITY IN
ACCORDANCE WITH A DEVELOPMENT AGREEMENT, HRA LETTER NO.
32
Executive Director Prosser reviewed HRA Letter No. 32
concerning the public hearing and consideration of resolution
authorizing sale of New Home Program property at 6310-15th Avenue
to Twin Cities Habitat for Humanity in accordance-with a
development agreement.
Ryan Karis, Twin Cities Habitat for Humanity, appeared to
briefly summarize the project.
Commissioner Helmberger asked if there are adequate
volunteers and project management.
Mr. Karis responded, yes, there are several church groups
which have pledged help for the project.
Commissioner Susag asked how the first Habitat project at
6225-14th Avenue is proceeding.
Mr. Karis responded that it is going very well.
Chair Harms asked if a homeowner was selected for 6225-14th
and this project.
Mr. Karis responded yes for 6225-14th and that a buyer is on
the verge of being selected for this project.
Commissioner Wozniczka asked if costs were coming from CDBG
funds.
Mr. Prosser said yes.
Commissioner Wozniczka stated he favored a garage on the
site.
Mr. Karis said that Habitat does not typically build
garages, but instead puts the funds in the living space.
Exterior storage will be provided.
HRA Minutes -4- August 16, 1993
Commissioner Wozniczka said some neighbors were concerned
about the owner occupant of the home. Mr. Wozniczka felt the HRA
should hear those concerns before they act on the second project.
Mr. Prosser said that the concerns of the neighbors were
related to the purchaser's minority status and 1'~ow they would
relate to the neighborhood, property upkeep and such issues. Mr.
Prosser is working on providing a response which assures the
neighbors that the City and HRA are concerned with the stability
of the neighborhood and that diversity is a positive addition to
the neighborhood.
Mayor Kirsch reported on the neighborhood meeting held on
the past Saturday and said the new owners were not available for
the meeting.
Mr. Karts reviewed the selection criteria for matching a
prospective owner with a house and the follow-up program that
occurs for a year.
Mr. Harms said that the quality of the houses that Habitat
builds and their selection process of buyers are both excellent.
He stated that the HRA would be sending the wrong message to the
community if the HRA delays the project now. In addition, the
HRA is seeking new minority members to become part of our
community.
M/Helmberger., S/Susag to close the public hearing.
Motion carried 4-0.
M/Helmberger, 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 N0. 480
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT 6310-15TH AVENUE
TO TWIN CITIES HABITAT FOR HUMANITY IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
Commissioner Wozniczka asked if the motion could be amended
to add a garage.
Commissioner Helmberger said she would not amend the motion
as requested.
Commissioner Wozniczka made a motion to adopt the resolution
with a requirement for a garage. The motion failed for lack of a
second.
HRA Minutes
-5-
August 16, 1993
Commissioner Wozniczka said that he will vote against the
motion because of the garage issue and because we should hear the
neighbors' concerns.
Motion carried 3-1. (Wozniczka against.)
ITEM #4 DISCUSSION OF PRELIMINARY STAFF RECOMMENDATION
REGARDING SELECTION OF ORGANIZATION TO FORMULATE AND
IMPLEMENT COMMUNITY APARTMENT PROGRAM, HRA LETTER N0.
33
Executive Director Prosser reviewed HRA Letter No. 33
regarding discussion of preliminary staff recommendation
regarding selection of organization to formulate and implement
community apartment program.
Mr. Erskine addressed the HRA concerning the new Community
Oriented Policing program and the work with apartment managers
and owners that would be beneficial to the community.
Mayor Kirsch said that he has noted during his walks through
the community the apartment building problems are an issue that
concern a large number of residents.
Hill Schatzlein, Affordable Suburban Housing, stated that in
conjunction with Project for Pride in Living (PPL), he felt that
they could assist the City in working with apartment building
owners, managers and residents to address the concerns pointed
out by the City and community.
Ralph Kolby, PPL, introduced Susan Baldwin and Lauren Kline
of PPL•and described the approach of PPL in addressing the types
of issues identified in the housing area and developing a
community pride concept.
Chair Harms said that there are four main goals that he sees
for the project:
1. To obtain an updated survey of where our apartment
problems are; •
2. to select someone with a high level of sophistication in
the area of financing to work with private developers;
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HRA Minutes -6- August 16, 1993
3. sell the City as a community; and
4. develop a package of benefits that our community has to
offer.
He said that his biggest concern was the second issue of
financial sophistication.
Mr. Kolby summarized the financial expertise of PPL.
Mr. Prosser stated that this was presented to the HRA
originally for this meeting as a discussion item for further
study but that staff could begin to work with landlords and
tenants immediately if the HRA so directed.
Mr. Harms said that the first step is to identify the
problems through the survey.
Mr. Kolby said that Affordable Suburban Housing/PPL could
deliver the data that the HRA was seeking and that they could
implement some additional measures to address these apartment
problem issues at the same time.
Commissioner Wozniczka asked what problem we are addressing.
Mr. Schatzlein stated that the survey would place us in a
position of identifying the problems.
Commissioner Wozniczka made a motion to proceed with a
contract with ASH/PPL and return results to the HRA.
Chair Harms amended the motion to add negotiate contract
which includes realistic guidelines for time and performance
standards and return to HRA with executed contract as soon as
possible.
M/Susag, S/Helmberger to direct the Executive Director to
negotiate a contract with ASH/PPL with incorporated realistic
guidelines for time and performance standards and return said
executed contract document to the HRA as soon as possible.
Motion carried 4-0.
ITEM #5 CONSIDERATION OF AUTHORIZATION TO PURCHASE 7245
HUMBOLDT AVENUE AND INITIATE NEW HOME PROGRAM HOUSING
PROJECT, HRA LETTER N0. 34
HRA Minutes -7- ~ August 16, 1993
Executive Director Prosser reviewed HRA Letter No. 34
concerning consideration of authorization to purchase 7245
Humboldt Avenue and initiate New Home Program housing project.
Chair Harms suggested pursuing this as a QSA type of
project.
Mr. Prosser said his sense was that this type of project is
not the type which he feels QSA would be interested in because
the repairs are really fairly minor. He added that no
architectural work is needed on this house.
Chair Harms asked if staff would talk to QSA about the
project.
Executive Director Prosser responded that staff would talk
to QSA.
Housing and Redevelopment Coordinator Hruce Palmborg stated
that there is a time deadline for buying this. home.
Chair Harms stated that it will be purchased by the HRA in
any event.
Commissioner Wozniczka asked why the bank lender didn't
pursue this home.
. Mr. Prosser said that they don't do that type of work.
Chair Harms added that, because of the accounting necessary
for this type of project, banks are typically not interested..
M/Susag, S/Helmberger to authorize purchase of 7245 Humboldt
Avenue and implementation of a New Home Program project as
outlined.
Motion carried 4-0.
ITEM #6 CONSIDERATION OF SETTING SPECIAL MEETING FOR 1993
REVISED/1994 PROPOSED BUDGET AND SETTING PRELIMINARY
TAX LEVY, HRA LETTER N0. 35
M/Harms, S/Wozniczka to set the date of August 30~ 1993 as a
Special HRA meeting to review and consider the 1993 Devised/1994
Proposed budget and 1994 preliminary tax lew prior to
certification to the County on September 15, 1993.
Motion carried 4-0.
HRA Minutes
-8-
ITEM #7 EXECUTIVE DIRECTOR REPORT
August 16, 1993
Executive Director Prosser reviewed progress on the ILN and
a potential office project for the Cloverleaf site by Told
Development Company.
Mr. Prosser reported that the firm of Schock & White was
given the buyout contract by MAC.
The Executive Director reported on the Richfield Bank and
•Trust clinic project at 66th and Grand Avenue. He also indicated
that the LHN/Hub West certificate of completion would be coming
to the HRA in the near future. There was general discussion
regarding parking and drainage in the project area.
ITEM #4 CLAIMS AND PAYROLL
M/Susag, S/Helmberger that the following claims and payroll
be approved.
FIRSTAR HANK
Checks: HRA: 5463-5571; 11384-11396; 11957-11999 $287,662.25
Section 8: 1069-1070
Motion carried 4-0.
$ 90,000.00
ADJOURNMENT
The meeting was adjourned by unanimo nsent at 8:52 p.m.
'`
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Date Approved : 9/ 20/ 93 ~~~~/~~/~ ~~~
Thomas Harms Chair
• 1
e L. ev ch Jam s D. Prosser
Acting City Clerk Exe utive Director