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09-20-1993CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY MEETING September 20, 1993 HRA MEMBERS PRESENT: Thomas Harms; Vern Luettinger; Russ Susag and Larry Wozniczka. HRA MEMBERS EXCUSED: Joan Helmberger.. STAFF PRESENT: James D. Prosser, Executive Director; Steven Devich, Administrative Services Director/Acting City Clerk; Byron Wallace, Community Development Director; and Bruce Nordquist, Housing Supervisor. The meeting was called to order by Chair Harms at 7:00 p.m. APPROVAL OF MINUTES • M/Luettinger, S/Susag to approve the minutes of the HRA meeting held August 16~ 1993 and the special HRA meeting of August 30, 1993. . Motion carried 4-0. ITEM #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE•HRA No one wished to address the BRA. ITEM #2 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF RICHFIELD REDISCOVERED PROPERTY AT 6912 OLIVER AVENUE TO MARLIN GRANT HOMES, INC. IN ACCORDANCE WITH DEVELOPMENT AGREEMENT, HRA LETTER NO. 37 • Executive Director Prosser reviewed HRA Letter No. 37 • regarding public hearing and consideration of resolution authorizing sale of Richfield Rediscovered property at 6912 Oliver Avenue to Marlin Grant Homes, Inc. in accordance with development agreement. . Commissioner Wozniczka asked a series of questions concerning house demolition, if the house has a basement and that a developer's agreement be attached and filed with the official resolution. • HRA Minutes Housing Supervisor developer's agreements. agreements not be filed Commissioner Wozni~ developer's agreement. -2- September 20, 1993 Nordquist explained the process of filing There was general consensus that the with the original resolution. ~zka asked if he could see a copy of the Mr. Nordquist stated that the agreement would be ready by the end of the current week. Commissioner Luettinger asked how the developer's agreements were structured. - Chair Harms explained the boiler plate nature of the base agreement and that the specific negotiation points of the agreement such as price, lot and other significant data are changed for each property. Those specific changes are outlined in the respective HRA Letter that describes each transaction. Mr. Harms directed that a standard base agreement be distributed t® each C®mmissioner t0 keep as a references M/Luettinger, S/Susag to close the public hearing. Motion carried 4-0. M/Luettinger, S/Susag that the following resolution be adoated; that it be spread in the resolution book and that_t be made part of these minutes: RESOLUTION N0. 482 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6912 OLIVER AVENUE TO MARLIN GRANT HOMES, INC., IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT Motion carried 4-0. This resolution appears as Resolution No. 482 in HRA Resolution Book No. 4. ITEM #3 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF RICHFIELD REDISCOVERED PROPERTY AT 7124 WASHBURN AVENUE TO MARLIN GRANT HOMES, INC. IN ACCORDANCE WITH DEVELOPMENT AGREEMENT, HRA LETTER N0. 38 Executive Director Prosser reviewed HRA Letter No. 38 regarding public hearing and consideration of resolution authorizing sale of Richfield Rediscovered property at 7124 Washburn Avenue to Marlin Grant Homes, Inc. in accordance with development agreement.. ~I u HRA Minutes Commissioner Wozniczka liabilities outstanding on been demolished. -3- September 20, 1993 asked if Mr. Kessler had any this matter and 3f the building has Mr. Nordquist said the building was demolished and that there are no outstanding liability issues~on the property. M/Susag, S/Luettinger to close the public hearinct. Motion carried 4-0. 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. 483 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7124 WASHHURN AVENUE TO MARLIN GRANT HOMES, INC., IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT Motion carried 4-O. This resolution appears as Resolution No. 483 in HRA Resolution Book No. 4. ITEM #4 CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF SOUTH HENNEPIN VOCATIONAL TECHNICAL SCHOOL CONTRACT IN AMOUNT OF $73,377 FOR 1993-94 NEW CONSTRUCTION PROJECT AT 7112 FIRST AVENUE, HRA LETTER N0. 39 Executive Director Prosser reviewed HRA Letter No. 39 regarding consideration of resolution authorizing execution of South Hennepin•Vocational Technical School contract in amount of $73,377 for 1993-94 new construction project at 7112 First Avenue. Commissioner Wozniczka compared the Vo-Tech house at 7112 First Avenue with the previous home approved for Marlin Grant. He felt that the Vo-Tech house was not as good of a value to the City as the Grant home. Mr. Nordquist explained that the Marlin Grant transaction is one which may not be of an arm's length transaction inasmuch as it's being sold to Steven~Grant. Mr. Nordquist stated that the ° Vo-Tech house has a potential total living area of over 2,000 square feet and was designed to fit on a narrow lot. The house design is also a prototype to demonstrate how the HRA may develop narrow lots in the future. Mr. Nordquist stated the house is well within the lot coverage ordinance requirement. HRA Minutes -4- Commissioner Wozniczka stated he project for several reasons •including Vo-Tech construction delays, previous income buyers who have a down payment previous homeowners. September 20, 1993 would vote against this lack of a garage, previous discrimination against low and refusal to sell to 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 N0. 484 RESOLUTION RELATING TO VO-TECH AGREEMENT FOR 7112 FIRST AVENUE Motion carried 3-l. (Wozniczka opposed.) This resolution appears as Resolution No. 484 in HRA Resolution Book No. 4. ITEM.#S CONSIDERATION OF AUTHORIZATION TO PROCEED WITH RICHFIELD REDISCOVERED REMODELING PROGRAM, HRA LETTER NO. 40 Executive Director Prosser reviewed HRA Letter No. 40 regarding consideration of authorization to proceed with Richfield Rediscovered Remodeling Program. Housing Supervisor Bruce Nordquist described the following specific elements of the proposed program to the HRA Commissioners: • Neighborhood Improvement Advisor • Marketing, Design Option/Services • Marketing, General Program •~Norwest Mortgage, Contingency Loans • Remodeling Hot Line • Remodeler Qualifying Mr. Nordquist stated that, in essence, the HRA is facilitating the program while Norwest Mortgage will finance the qualifying remodeling. Chair Harms asked if a listing of qualifying individual remodelers to be placed on file along with their insurance and bond documents. Executive Director Prosser said staff will explore this suggestion. Mr. Harms asked if an advisor had been selected. HRA Minutes -5- ~ September 20, 1993 Mr. Nordquist stated the staff is now in the process of ' interviewing potential persons for future.HRA consideration. The position would not be a staff person, but rather a contractual arrangement. There was general discussion regarding the potential program.. Commissioner Wozniczka stated that because of a recent state law, remodeling value does not provide. an immediate increase in tax base. Mr. Prosser responded that staff is aware of that law, however this program is meant to be more far reaching than dust providing an immediate residential tax base increase. Mr. Nordquist stated that a similar program in St. Paul has been very successful. Mr. Harms said that the HRA's mission is to maintain the housing stock in the City and to prevent current housing stock deterioration. If the HRA can increase the tax base at the same time fine, but that is not our sole mission in housing. Commissioner Susag stated that as Council Member Priebe has stated, he would favor a program that put some dollars into many properties rather than large sums into two or three properties. This would seem to accomplish that. There was general discussion concerning the "this old house" legislation and its impact upon a home and tax base. s Executive Director Prosser stated that this remodeling program is primarily designed to reverse deterioration; but could have some tax base impact also even with the "this old house" law. Commissioner Wozniczka asked a series of questions concerning the specific elements of the proposed program. Mr. Prosser responded to the questions concerning the improvement advisor, marketing and contingency loan amount. Executive Director Prosser and Community Development Director Wallace described the way the contingency loan amount would be used and in what types of situations it may come into play. Mr. Wallace stated that the contingency loan is a financing source of last resort. HRA Minutes -6- September 20, 1993 There was discussion regarding the hot-line concept and whether such~an extensive expenditure was necessary. Chair Harms asked for more specific information regarding this program element. Commissioner Wozniczka stated that he is voting against the program for several reasons, including that this is a function of the lending institution, it adds complexity to the process, wastes budget resources and does not increase tax base. He said the program is a lose, lose, lose situation.. M/Luettinger, S/Susag to authorize staff to proceed with Richfield Rediscovered Remodeling Program. Motion carried 3-1. (Wozniczka opposed.) ITEM #6 EXECUTIVE DIRECTOR REPORT Executive Director Prosser reviewed the status of projects and issues highlighted in HRA Memorandum No. 16. Mr. Prosser also reviewed two letters submitted by Publicorp concerning Tax Increment District financial positions. There was general discussion concerning the calculation and reporting of the TIF districts. A report will be generated annually to evaluate the position of the districts. Commissioner Luettinger asked Mr. Prosser about the status of the parking entrance and egress at the Rainbow store. Mr. Prosser responded that staff originally had concerns with the design but that it still appears to be working. ITEM #7 CLAIMS AND PAYROLL M/Susag, S/Luettinger that the following claims and ..payroll be approved. FIRSTAR BANK Checks: HRA: 5572-5692; 11397-11405; 12003-12046 $555,519.32 Section 8: 1071-7639 Motion carried 4-0. 90,000.00 HRA Minutes ADJOURNMENT -7- September 20, 1993 The meeting was adjourned by unanimous consent at 8:45 p.m. Chair Harms expressed thanks to the staff and public officials for their work on reversing thy, ote on the New Ford Town and Rich Acres buyout. ,r-°;~~ ~ .=' ~ ,°° ~ ~~ Date A roved : 10/ 18/ 93 ~~'~° ~~ ~ '~ j~~ "',~ ~~ ~~ PP Thoma arms f ~' 1 IG~ Steven L. Devich Acting City Clerk s D. Prosser utive Director