11-15-1993CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
November 15, 1993
HRA MEMBERS PRESENT: Thomas Harms; Joan Helmberger; Vern
Luettinger; Michael Sandahl; and Russ Susag.
STAFF PRESENT: James D. Prosser, Executive Director; Steven
Devich, Administrative Services
Director/Acting City Clerk; Hyron Wallace,
Community Development Director; Bruce
Palmborg, Housing and Redevelopment
Coordinator; and Bridget Walstrom, Finance
Manager.
The meeting was called to order by Chair Harms at 7:00 p.m.
APPROVAL OF MINUTES
M/Susag, S/Luettinger to approve the minutes of the HRA
meeting held October 18, 1993.
Motion carried 4-0.
ITEM #1 PRESENTATION OF CERTIFICATE OF APPRECIATION TO LAWRENCE
WOZNICZKA
Chair Harms presented a certificate of appreciation to
Lawrence Wozniczka.
Mr. Wozniczka read a letter of appreciation to the HRA
Commissioners (Clerk's File #C-345.)
M/Harms, S/Helmberger to present the Certificate of
Appreciation to Lawrence Wozniczka.
Motion carried 4-0.
HRA Minutes
-2-
November 15, 1993
ITEM #2 OATH OF OFFICE TO HRA COMMISSIONER MICHAEL SANDAHL
Acting City Clerk Devich administered the Oath of Office to
HRA Commissioner Michael Sandahl.
ITEM #3 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
No one wished to address the HRA.
ITEM #4 CONSIDERATION OF APPOINTMENT OF HRA SECRETARY TO FILL
VACANCY, HRA LETTER NO. 45.
Commissioner Vern Luettinger was appointed the Secretary of
the HRA.
M/Susag, S/Helmberger to approve the appointment of
Commissioner Vern Luettinger as Secretary of the HRA.
Motion carried 5-0.
ITEM #5 CONSIDERATION OF REPORT ON THE STATUS OF BLIGHTED
HOUSING, HRA LETTER N0. 46.
Executive Director Prosser reviewed HRA Letter No. 46
regarding consideration of a report on the status of blighted
housing in the community.
Commissioner Luettinger asked how a more systematic survey
would be conducted.
Mr. Prosser responded that there are a number of ways
including direct mail, meetings and other methods.
Chair Harms asked what the average cost per home for NFT/RA
buyout including appraisal and relocation benefits is.
Community Development Director Wallace responded that the
average person should be able to upgrade their next home by
$20,000 to $30,000.
HRA Minutes -3- November 15, 1993
Chair Harms stated that this represents an excellent
opportunity for the City and HRA. He suggested that the~HRA:
• Locate three developers.
• Look at a group of sites to put together a set of floor
plans to propose to the people in NFT/RA who choose to
relocate in Richfield.
• • Give these developers first chance to work with these
people.
• Have staff obtain pictures and addresses of 100 houses to
be redeveloped in Richfield.
Commissioner Susag asked how many of the substandard homes
are in NFT/RA.
Bruce Palmborg, Housing and Redevelopment Coordinator, said
• that none of the houses were in NFT/RA.
Commissioner Luettinger stated that he concurred with Chair
Harms on the concegt he described.
Commissioner Sandahl asked how many homes were turned over
in a year. •
Mr. Wallace stated that 30 homes were turned over in~the
past two years under all the housing programs. the HRA has
available.
M/Harms, S/Susag to continue to monitor the status of
blighted housing in Richfield, encourage its reduction and take
action on marketing methods suggested by Chair Harms.
Motion carried 5-0.
ITEM #6 CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR
PRIVATE REDEVELOPMENT BETWEEN HRA AND RICHFIELD STATE
AGENCY, INC.; LHN REDEVELOPMENT PROJECT, HRA LETTER
N0. 47
Executive Director Prosser introduced Jan Susee and Steve
Kirchner of Richfield State Agency.
Mr. Susee reviewed a proposed contract for private
• development between HRA and Richfield State Agency, Inc. in the
LHN Redevelopment Project. The project is for an urgent care
facility in a two story medical office facility.
HRA Minutes -4- November 15, 1993
Commissioner Luettinger asked for a clarification of the
meaning of the language on Exhibit A, page H-4.
HRA.
Mr. Prosser described the meaning of the paragraph to the
Chair Harms asked if there were cross-easements between the
bank and the proposed medical building for perpetual parking
rights.
Mr. Kirchner stated that there were no such cross-easements.
Mr. Prosser stated that the applicant should be aware that
the cross-easements will be a condition of approval for this
prod ect .
Chair Harms stated that the cross-easements would not
require the current parking configuration.
F9r. Susee said that the Funk would not be responsive to
creating a cross-easement which would further tie up their
property.
Commissioner Luettinger stated that he is concerned that he
became aware of this item as late as Friday evening. He also
asked about the property owners' concerns along Grand Avenue.
Chair Harms stated that the agreement is a pay as you go
deal.
Commissioner Susag stated that some of the concerns voiced
by certain residents along Grand Avenue should not be included in
the memorandum.
Commissioner Luettinger asked a series of questions
pertaining to specific provisions of the agreement and Mr.
Prosser and Chair Harms responded to the questions.
Mr. Susee indicated that construction is anticipated in
early December, thus approval of this project by the HRA is
necessary for closing on a timely basis.
Commissioner Helmberger asked why payments listed on Exhibit
A, page 4 increase annually.
Mr. Prosser responded that it is structured to anticipate
some increase annually.
M/Susag, S/Sandahl that the following resolution be adopted
as amended; that it be spread in the resolution book and that it
be made part of these minutes:
HRA Minutes -5- November 15, 1993
RESOLUTION NO. 487
RESOLUTION OF THE. HOUSING AND REDEVELOPMENT
_ AUTHORITY IN AND FOR THE CITY OF RICHFIELD,
MINNESOTA APPROVING CONTRACT FOR PRIVATE
REDEVELOPMENT WITH RICHFIELD STATE AGENCY, INC.
Motion carried 5-0. This resolution appears as Resolution
No. 487 in HRA Resolution Book No. 4.
ITEM #7 CONSIDERATION OF RESOLUTION RELATING TO ISSUANCE OF
COMPLETION CERTIFICATE TO QUAM, SUI~iICHT, AND
ASSOCIATES FOR TRANSFORMATION HOUSING PROGRAM PROPERTY
AT 6500 JAMES AVENUE, HRA LETTER NO. 48
Executive Director Prosser reviewed HRA Letter No. 48
regarding consideration of resolution relating to issuance of
completion certificate to Quam, Sumnicht, and Associates for
transformation housing program property at 6500 James Avenue.
Commissioner Luettinger asked if this .resolution could be~
held over to the December HRA meeting after the open house.
Mr. Prosser stated that they were seeking approval before
the December HRA meeting but that it was the Commissioners'
option. He said this approval is not an automatic issuance, but
is instead predicated on a Certificate of Occupancy being issued.
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. 488
RESOLUTION RELATING TO THE ISSUANCE OF A COMPLETION CERTIFICATE
FOR THE TRANSFORMATION HOUSING PROGRAM PROPERTY
AT 6500 JAMES AVENUE
Motion carried 5-0. This resolution appears as Resolution
No. 488 in HRA Resolution Book No. 4.
ITEM #8 PUBLIC HEARING AND CONSIDERATION OF RESOLUTIONS ADOPTING
1994 HRA PROPOSED PROPERTY TAX LEVY AND BUDGET, HRA
LETTER N0. 49
HRA Minutes -6- November 15, 1993
Larry Wozniczka, 6744 Wentworth Avenue, spoke to plead that
the HRA reduce the property tax levy.
Commissioner Helmberger asked about the fund balance in the
Section 8 program.
Mr. Prosser responded that the fund has been very
conservatively reported with charges for administrative costs
being minimal. In addition, a computer system for the program is
necessary and will utilize a portion of the fund balance.
M/Luettinger, S/Susag to close the public hearin
Motion carried 5-0.
M/Helmberger, S/Susag that the following resolutions be
adopted; that they be spread in the resolution book and that then
be made part of these minutes:
RESOLUTION NO. 489
RESOLUTION APPROVING 1994 HOUSING AND REDEVELOPMENT AUTHORITY
BUDGET AND CERTIFYING THE TAX LEVY
RESOLUTION N0. 490
RESOLUTION AUTHORIZING REVISION OF 1993 .BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
Motions carried 5-0. These resolutions appear as Resolution
No. 489 and Resolution No. 490 in HRA Resolution Book No. 4.
ITEM #9 EXECUTIVE DIRECTOR REPORT
Executive Director Prosser reported on the items detailed in
HRA Memorandum No. 20, including the 77th Street Project,
Community Apartment Program, Residential Realtor Tour, Richfield
Rediscovered, the New Home Program and the Transformation Housing
Program.
There was general discussion regarding a televised news
piece which indicated that Richfield had a high burglary rate.
There was also discussion regarding certain negative perceptions
about first ring suburbs such as Richfield..
There was general consensus among HRA Commissioners that the
City and HRA could do a better fob of marketing the good,
positive things that get done in Richfield.
HRA Minutes -7- November 15, 1993
Executive Director Prosser described the most recent
interest in the ILN development area by prospective developers.
ITEM #~ CLAIMS AND PAYROLL
M/Luettinger, S/Susag that the following claims and payroll
be aQproved.
FIRSTAR HANK
Checks: HRA: 5808-5927; 1410-11420; 12126-12158 $586,299.50
Section 8: 1073 89,000.00
Motion carried 5-0.
ADJOURNMENT
teven L. Devich
Acting City Clerk
The meeting was adjourned by unanimous sent at 9:16 p.m.
Date Approved : 12/ 20/ 93
omas HarmR Chair
!'Z~~
tive Director