Loading...
12-20-1993CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY MEETING December 20, 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; Byron Wallace, • Community Development Director. The meeting was called to order by Chair Harms at 7:00 p.m. APPROVAL OF MINUTES M/Susag, S/Helmberger to approve the minutes of the HRA meeting held November 15, 1993. Motion carried 5-0. ITEM #1 OPPORTUNITY_FOR CITIZENS TO ADDRESS THE HRA No one wished to address the HRA. ITEM #2 PRESENTATION HY STEVE QUAM OF QSA REGARDING TRANSFORMATION HOUSING PROGRAM, HRA LETTER NO. 50 Dave Sumnicht, QSA, addressed the HRA regarding: • Why the HRA chose to do a transformation home; • General experience in the transformation project at 6500 James Avenue; and • • Observations regarding the pilot project. Mr. Sumnicht•stated that about 500 people attended the open house. Neighbors were very enthusiastic, as were some public officials from other communities. He stated that there was significant pent-up demand for those homes in Richfield. He also stated that the timing of the project in this economic environment was excellent and that there were many willing bu~.lders available. However, banks were not readily willing to - finance the project. He distributed a document proposing financing for the project to banks in the community (Clerk's file #C-348). Mr. Sumnicht thanked the HRA for the opportunity to work on this pro~.ect. HRA Minutes -2- December 20, 1993 Commissioner Sandahl asked how we could do~more such projects. Mr. Sumnicht stated that QSA has some ideas for future projects. . Mr. Quam stated that he would put something together for the HRA concerning future potential projects in Richfield. Chair Harms stated that he felt that the pool of potential buyers in New Ford Town would present a unique opportunity for transformation housing projects. He felt that there was an opportunity to work with a solid cash base in developing these projects. . Mr. Sumnicht stated that QSA is already investigating the possibility of working with this opportunity. He said that assistance from the HRA and the City is getting information together on this project. Chair Harms felt that the timing ©x tie Newt F©rd T®w~ buyout with the redevelopment of these homes was a very unique opportunity to facilitate this redevelopment. ITEM #3 CONSIDERATION OF REPORT FROM CSM CORPORATION ON INTEREST IN REDEVELOPING ILN AREA BETWEEN LYNDALE AND EMERSON AVENUES,. HRA LETTER NO. 51 Executive Director Prosser reviewed HRA Letter No. 51 regarding consideration of a report from CSM Corporation on interest in redeveloping ILN area between Lyndale and Emerson Avenues. David Carland, CSM Corporation, gave a brief background of CSM and their most recent development projects. Mr. Carland described a proposed redevelopment project area featuring a retail mall with the following mayor tenants ready to proceed: • Hest Buy - 45,000 sq. ft. • Sport Mart - 42,000 sq. ft. • Petsmart • Comp USA The project would be between Lyndale and Emerson Avenues in the ILN. Gary Toche presented a drawing of the proposed project. Mr. Carland described a meeting held with property and business owners in the area and summarized a proposed time frame to proceed with the project. He stated that he would like HRA Minutes ~ -3- December 20, 1993 construction to begin in the summer of 1994 and some occupancy occur by Thanksgiving of 1994. Chair Harms stated that he had seen this proposed project before and felt it was very intriguing and could have favorable impact on Lyndale Avenue. Commissioner Helmberger asked about the tax increment. Mr. Prosser stated that the tax increment assistance could be used to purchase the property. He explained the different assistance scenarios. He stated that it would take the entire increment•to make the project feasible. Mr. Prosser asked the developer about the possibility of a restaurant in the project. • Mr. Garland stated that a good sit-down type of restaurant would be part of the project. Chair Harms stated that there is interest in this project. . He asked staff to come back to the HRA with more information and future action on this proposed project. Community Development Director Wallace stated that he attended the information meeting regarding this project. There appeared to be good dialog at the meeting. ITEM #4 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF PROPERTY TO RICHFIELD STATE AGENCY IN ACCORDANCE WITH DEVELOPMENT AGREEMENT TO PROVIDE FOR CONSTRUCTION OF MEDICAL OFFICE FACILITY, HRA LETTER N0. 52 • Executive•Director Prosser reviewed HRA Letter No. 52 regarding a public hearing and consideration of a resolution authorizing sale of property to Richfield State Agency in accordance with development agreement to provide for construction of medical office facility, HRA Letter No. 52. Larry Wozniczka, 6744 Wentworth, asked what the sale price to RSA was. Mr. Prosser stated it was. the same amount. Mr. Wozniczka asked why the HRA was providing assistance. ~Mr. Susee, RSA, stated that they would buy the property on a note and pay it off with tax increment proceeds. Chair Harms explained why, under the principles of tax increment financing, the assistance to enhance the value is provided. . HRA Minutes -4- December 20, 1993 Mr. Wozniczka asked why it couldn't be sold back to RSA for the value of the raw land. He asked what is the rational basis for the size of the subsidy was, Mr. Wozniczka said he had a mayor concern with the process. He also said that notice that' this project was receiving tax increment assistance was not revealed until after it had been presented to the City Council. Mr. Prosser commented that the consideration before the Planning Commission and City Council was regarding land use, not financing and that they are two separate issues. He stated that two Council Members indicated that they would have liked to be aware of this when it was considered. Mr. Prosser also stated that additional steps could be implemented such as modifying the TIF plan. Chair Harms stated that the City Council and HRA could hold concurrent meetings and public hearings on issues such as the one under consideration here. He said that it was never the intent of the HRA~and/or staff to hide anything, but it would be . beneficial to modify the process in the future. .Commissioner Luettinger asked how this TIF financing was different . Mr. Prosser said .that this was only different in that it is redevelopment in a pre-1979 district. Commissioner Susag asked the derivation of the $226,000 number. Mr. Prosser explained the process. He said that the HRA is giving up the increment to bring about a development that would not otherwise come about. Mr. Wozniczka asked when the developer became aware of the amount of assistance. He also asked why this amount of . assistance is necessary. Mr. Wozniczka asked why the process was used to disguise information from decision makers. Jan Susee, RSA, stated that TIF was being requested since 1991. He added that the project would not be possible without TIF. All of the TIF money is going to Abbott-Northwestern. It has been a touch and go project from the start. Mr. Wozniczka felt he didn't find out•when the amount of the assistance became known. He said that a consultant from St. Louis Park•did the traffic study. He also said that~in a phone conversation with Steve Kirchner in November, RSA was not getting assistance. Jan Susee said that Mr. Wozniczka's statement regarding his phone conversation to Mr. .Kirchner was not true. RSA has never said they were not getting TIF assistance. 1 HRA Minutes -5~- December 20•, 1993 Commissioner Luettinger read the last paragraph from page B- 2 of the tax increment note and asked about that section. Mr. Prosser responded that this is an existing district and that the boundaries are not being changed. M/Susag, S/Sandahl to close the gublic hearing. Motion carried 5-0. 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. 491 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY TO RICHFIELD STATE AGENCY IN ACCORDANCE WITH~A DEVELOPMENT AGREEMENT Motion carried 5-0. This resolution appears as Resolution No. 491 in HRA Resolution Book No. 4. Chair Harms said the issue of who is getting the subsidy is not the real issue. The real issue•is would the project have happened without TIF. Mr. Prosser recommends that the TIF plan be amended to be consistent with this action. This should be accomplished in such a manner to not affect the timing of the project. M/Susag, S/Luettinger to direct staff to amend the Tax Increment Plan to be consistent with this action. Motion carried 5-0. Mr. Susag stated that it should be noted that this evening the HRA heard a presentation regarding a proposed project between Emerson and Lyndale Avenues and they did indicate a desire for TIF assistance. ITEM #5 CONSIDERATION OF RESOLUTION APPROVING DECLARATION OF EASEMENTS AND COVENANTS WITH RICHFIELD STATE AGENCY, INC., HRA LETTER NO. 53 Executive Director Prosser reviewed HRA Letter No. 53 regarding consideration of resolution approving declaration of easements and covenants with Richfield State Agency, Inc. HRA Minutes -6- December 20, 1993 Chair Harms stated that the parking issues have been resolved. Jan Susee, RSA, described the property and explained the cross-easements for parking access and egress. M/Sandahl 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. 492 RESOLUTION APPROVING DECLARATION OF EASEMENTS AND COVENANTS WITH RICHFIELD STATE AGENCY, INC. Motion carried 5-0. This resolution appears as Resolution No. 492 in HRA Resolution Book No. 4. ITEM #6 CONSIDERATION OF "FAMILY NEEDS" REPORT REGARDING RFSP®NSES T® SECTI®Iy7 8 PR®GRAZ~ TEHAPpT SUY~I~YEY; H~ Y.E~iTER NO. 54 Executive Director Prosser reviewed HRA Letter No. 54 regarding consideration of "Family Needs" report regarding responses to Section 8 Program tenant survey. Jeanne Massey, Director of Planning for South Hennepin Regional Planning Agency (SHeRPA), summarized the Family Needs survey of low income tenants in Richfield and Bloomington. Ms. Massey presented a series of transparencies that highlighted important issues identified by the survey; as well as demographic data. In her report, Ms. Massey identified affordable child care and lack of transportation as the most significant barriers to advancement. The biggest needs identified were economic, with some families going without food and basic necessities. Ms. Massey stated that families depend on income support programs for increases in housing and child care. Commissioner Susag asked if a survey could identify how people cross barriers and get off of assistance. Ms. Massey stated that such a survey could be done. Kathy Lovick, Leased Housing Specialist, stated that the number one reason why people on Section 8 come off of assistance is because they get married. The resulting combined income disqualifies them from the program. Programs like SHAPE are also very instrumental in getting people off of the program. HRA Minutes -7- December 20, 1993 Chair Harms stated that he would like to see summary data of housing assistance related programs in comparison with other communities and identify which programs are the most effective. There was general discussion regarding the issues identified in the report and of strategies to meet them. Commissioner Helmberger stated that any reports coming from the South Hennepin Human Services Planning Council will likely come in smaller bite-sized pieces. The report was. received by the HRA. ITEM #7 CONSIDERATION OF AUTHORIZATION TO MODIFY HRA'S ADMINISTRATIVE PLAN FOR OPERATING SECTION 8 VOUCHER PROGRAM, ~iRA LETTER N0. 55 Executive Director Prosser reviewed HRA Letter No. 55 regarding consideration of authorization to modify HRA's administrative plan for operating Section 8 Voucher Program. M/Sandahl, S/Susag to modify the HRA's administrative clan .for ooeratin~ Section 8 Voucher Program including the following revised pay standard: Unit Size Proposed Pay Standard (rent rate) 1 bedroom $466 2 bedroom $580 3 bedroom $788 4 bedroom $882 Motion carried 5-0. ITEM #8 CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7245 12TH AVENUE, 6844 14TH AVENUE, 6625 STEVENS AVENUE AND 7416 FOURTH AVENUE FOR RICHFIELD REDISCOVERED PROGRAM, HRA LETTER N0. 56 Executive Director Prosser reviewed HRA Letter No. 56 .regarding consideration of resolution authorizing purchase of 7245 12th Avenue, 6844 14th Avenue, 6625 Stevens Avenue and 7416 Fourth Avenu~i for Richfield Rediscovered Program. Mr. Prosser stated that there was discussion at the City Council meeting that $441,000 in loans from the Water and Sewer Utilities be repaid from the Development Fund. HRA Minutes -8- Commissioner Sandahl stated that Richfield a great program and funding should continue to completed. Chair Harms concurred. December 20, 1993 Rediscovered was get the fob. M/Sandahl 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 NO. 493 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7245 12TH AVENUE 6844 14TH AVENUE 6625 STEVENS AVENUE 7416 FOURTH AVENUE Motion carried 5-0. This resolution appears as Resolution No. 493 in HRA Resolution Book No. 4. ITEM #9 CONSIDERATION OF AGREEMENT WITH W.D. SCHOCK COMPANY FOR STAFF SERVICES RELATED TO NEW FORD TOWN/RICH ACRES BUYOUT, HRA LETTER NO. 57 Executive Director Prosser reviewed HRA Letter No. 57 regarding consideration of an•agreement with W.D. Schock Company for staff services related to New Ford Town/Rich Acres buyout. Commissioner Helmberger asked that the procedure used be described. Mr. Palmborg, Housing and Redevelopment Coordinator, presented a status update and reviewed the procedure to be used. He stated that the consultant appears to be behind schedule and several hardship cases await action. No buyouts have been completed to date. M/Susag, S/Sandahl to approve the agreement with W.D. Schock Company for staff services related~to New Ford Town/Rich Acres bu ou . Motion carried 5-0. HRA Minutes ~ -9- ~ December 20, 1993 ITEM #10 EXECUTIVE DIRECTOR REPORT Executive Director Prosser discussed the potential of working with Told Real Estate to market the Cloverleaf site. Chair Harms asked Mr. Prosser to follow-up on this issue. Chair Harms offered a special complement to Jim Prosser, Byron Wallace and Bruce Palmborg and their staff for all of their excellent work during the course of the past year. Other Commissioners concurred with Mr. Harms. ITEM #7 CLAIMS AND PAYROLL M/Sandahl, S/Susag that the following claims and payroll be annroved. FIRSTAR BANK Checks: HRA: 5928-6044; 11421-11432; 12304-12354 $524,843.25 Section 8: 1074 ~ 89,000.00 Motion carried 5-0. ADJOURNMENT The meeting was adjourned by unanimous nsent at 9:54 p.m. Date Approved : 1 / 18/ 94 _ ~ ~/-~~"~ Thomas Harms Chair ~~` y~~/I.LI Acting City Clerk ~~ ame D. Prosser xec tive Director