06-20-1994CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
June Z0, 1994
HRA MEMBERS PRESENT: Joan Helmberger; Vern Luettinger; and Russ
Susag.
HRA MEMBERS ABSENT: Thomas Harms and Michael Sandahl.
STAFF PRESENT: James D. Prosser, Executive Director; Steven
Devich, Administrative Services Director/
Acting City Clerk; Byron Wallace, Community
Development Director; Ron Batty, BRA Atto~~ey,
and Bruce Palmborg, Housing and Redevelopment
Coordinator.
The meeting was called to order by Vice-chair Helmberger at
7:05 p.m.
APPROVAL OF MINUTES i
M/Luettinger, S/Susag to approve the minutes of the Special
HRA meeting held concurrently with the City Council meetina of
April 25 1994 and the minutes of the HRA meetina of Mav 16, 1994.
Motion carried 3-0.
ITEM #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
No one wished to address the HRA.
ITEM #2 CONSIDERATION OF CONTRACT WITH W.D. SCHOCK COMPANY FOR
REPLACEMENT DWELLING INSPECTION SERVICES FOR NEW FORD
TOWN AND RICH ACRES RELOCATION HOMES, HRA LETTER NO. 44
Executive Director Prosser reviewed HRA Letter No. 44
regarding consideration of contract with W.D. Schock Company for
replacement dwelling inspection services for New Ford Town and Rich
Acres relocation homes.
M/Luettinger, S/Susag to approve the contract with W.D. Schock
Company and the HRA for replacement dwelling inspection services
for New Ford Town and Rich Acres relocation homes.
Motion passed 3-0.
HRA Meeting Minutes =2- June 20, 1994
ITEM #3 CONSIDERATION°OF RESOLUTION APPROVING MODIFICATION TO
RICHFIELD REDEVELOPMENT PROJECT PLAN RELATED TO RICHFIELD
REDISCOVERED HOUSING PROGRAM; REQUESTING RICHFIELD CITY
COUNCIL TO CONDUCT PUBLIC HEARING THEREON; AND
RECOMMENDING APPROVAL OF PLANS, HRA LETTER NO. 45
Executive Director Prosser reviewed HRA Letter No. 45
regarding consideration of resolution approving modification to
Richfield Redevelopment Project plan related to Richfield
Rediscovered Housing Program; requesting Richfield City Council to
conduct public hearing and recommending approval of plans.
Commissioner Helmberger stated that she recently drove down
15th Avenue north of 66th Street and was impressed with the extent
of the upgraded homes.
.Larry Wozniczka, 6744 Wentworth Avenue asked the following
questions:
• If payments to other funds from which moneys were loaned will
occur;
• Why are land sale proceeds going into a different fund.
In response to the repayment issue, Mr. Prosser responded that
no representation was made at the time of loaning those funds that
interest would be paid. However, it appears that we are doing
better than expected and some interest payment may be available in
the future. This program should not proceed on the basis of
creating tax base, but instead on the basis of improving
neighborhoods. Mr. Prosser stated that the principle will be
repaid within the time frame. He indicated that there has been no
change in philosophy.
Executive Director Prosser further responded that when the
first loans were made, the land sale proceeds and tax increment
were used to retire the loans. The funds now used for the program
from the development fund are not loans. The land sale proceeds
are recycled upon HRA approval and tax increment is used to retire
debt.
Commissioner Susag stated that the proceeds of the land sale
from the current set of houses, approximately $300,000, would go
back into the development fund.
Mr. Prosser stated that this was correct.
Housing and Redevelopment Coordinator Bruce Palmborg reviewed
the process used to establish this third phase of the program.
Mr. Wozniczka stated that we should be pursuing the worst
properties in the community.
HRA Meeting Minutes
-3-
Mr. Prosser said that the HRA is
willing sellers. He stated that staff
builders to pursue the less expensive
stated that if the HRA wants staff to
differently, staff could do so.
June 20, 1994
working exclusively with
is encouraging private
properties. Mr. Prosser
pursue this program
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 NO. 513
RESOLUTION APPROVING MODIFICATION TO RICHFIELD REDEVELOPMENT
PROJECT PLAN, CONSISTING OF MODIFICATION N0. 3 TO THE REDEVELOPMENT
PLAN FOR REDEVELOPMENT PROJECT AREAS A AND B, MODIFICATION N0. 1 TO
THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT REDEVELOPMENT
DISTRICTS '°A-2" AND "B-2", AND TAX;INCREMENT FINANCING PLANS FOR
TAX INCREMENT REDEVELOPMENT DISTRICTS "A-3" AND "B-3:, ALL RELATED
TO THE RICHFIELD REDISCOVERED HOUSING PROGRAM; REQUESTING THE
RICHFIELD CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON;
RECOMMENDING APPROVAL OF THE PLANS
s
Motion carried 3-0. This resolution appears as Resolution No.
513 in HRA Resolution Book No. 4.
ITEM #4 CONSIDERATION OF RESOLUTION REGARDING FINDINGS OF HRA
CONCERNING DEVELOPMENT OF RICHFIELD REDISCOVERED PROPERTY,
6625 STEVENS AVENUE, HRA LETTER N0. 46 ~-_
Executive Director Prosser introduced HRA Letter No. 46
regarding consideration of a resolution regarding findings of HRA
concerning development of Richfield Rediscovered property at 6625
Stevens Avenue.
Ron Batty, Attorney for the HRA, reviewed HRA letter No. 46
and briefly reviewed the circumstances involved in this process.
The resolution under consideration lays out findings of fact in
this matter. Mr. Batty also reported that he has monitored the
situation as requested by the HRA and has nothing new to report.
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. 514
RESOLUTION RELATING TO RICHFIELD REDISCOVERED PROGRAM
Motion carried 3-0. This resolution appears as Resolution No.
514 in HRA Resolution Book No. 4.
HRA Meeting Minutes -4- June 20, 1994
ITEM #5 EXECUTIVE DIRECTOR REPORT
Executive Director Prosser reported on the following:
CSM: Hest Buy wants to increase their building footprint by
approximately 18,000 square feet. This will require additional
approvals and will push the time frame back for store openings into
early 1995.
Community Development Director Byron Wallace reported on
further negotiations with Emerson Congregational Church. Mr.
Wallace presented three drawings showing the siting of the church
on the northern portion of the Cloverleaf property.
Executive Director Prosser stated that there is still a
significant difference in the replacement value of the church.
Mr. Prosser also reported on the initial proposals made by the
businesses in the ILN area. One proposal incorporates a two story
automobile service and retail combination.
HRA Commissioners stated that a sit-down restaurant was an
important element in any proposal.
ITEM #6 CLAIMS AND PAYROLL
M/Susag, S/Luettinger that the following claims and payroll be
approved•
FIRSTAR BANK
Checks: HRA: 6627-6739; 12517-12573; $720,897.42
12747-12780
Section 8: 1079 59,300.00
Motion carried 3-0.
ADJOURNMENT
The meeting was adjourned by
Date A~nroved:
at 8: 5 p.m.
Thomas ms Chair
Steve L. Devic ame D. Prosser
Acting City Clerk e utive Director