02-28-1995CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
February 28, 1995
HRA MEMBERS PRESENT: Thomas Harms; Joan Helmberger; and Vern Luettinger.
HRA MEMBERS EXCUSED: Russ Susag and Michael Sandahl
STAFF PRESENT: James D. Prosser, Executive Director; Steven Devich,
Administrative Services Director/ Acting City Clerk; John
Dean, City Attorney; and Byron Wallace, Community
Development Director.
The meeting was called to order by Chair Harms at 7:04 p.m.
APPROVAL OF MINUTES
M/Luettinger, S/Helmberger to approve the minutes of the Regular HRA meeting
of January 17, 1995 and the Special HRA Meeting of February 13. 1995.
Motion carried 3-0.
ITEM #1 ' OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
Betty Carr, 6633 Lynnwood -Blvd, spoke to the HRA concerning the necessity to
cap wells in residential properties before they are sold. She asked if the City or HRA
could take a lead role in organizing citizens to get wells capped by blocks or
neighborhoods.
City Manager Jim Prosser stated that staff will review this matter.
The following items were considered out of agenda order.
ITEM #5 CONSIDERATION OF SUBORDINATION AGREEMENT, PHASE I,
CSM, HRA LETTER NO. 13
HRA Meeting Minutes ~ -2- February 28, 1995
Executive Director Prosser reviewed HRA Letter No. 13 regarding consideration
of subordination agreement, Phase I, CSM project.
M/Luettinger, S/Helmberger to approve subordination agreement of Phase I of
the CS project.
Motion carried 3-0.
ITEM #6 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION TO
CONTINUE SECTION 8 PROGRAM LOCAL PREFERENCE CRITERIA
AND MAKE NONSUBSTANTIVE CHANGES IN ADMINISTRATION
PLAN, HRA LETTER NO. 14
Executive Director Prosser_reviewed HRA Letter No. 14 regarding public hearing
and consideration of resolution to continue Section 8 Program local preference criteria
and make nonsub§tantive changes in admini§tration plan.
M/Helmberger, S/Luettinger to close the public hearina.
Motion carried 3-0.
M/Helmberger, 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. 540
RESOLUTION RELATING TO A LOCAL PREFERENCE POLICY
FOR SELECTION ~OF APPLICANTS TO SECTION 8 RENTAL
ASSISTANCE PROGRAM AND MAKING NONSUBSTANTIVE
CHANGES TO THE ADMINISTRATIVE PLAN
Motion carried 3-0. This resolution appears as Resolution No. 540 in Resolution
Book No. 4.
ITEM #7 CONSIDERATION OF CONTRACT WITH JOHN SZARKE TO
FORMULATE "TOGETHER WE CAN," AN APARTMENT RESIDENT
SELF-SUFFICIENCY PROGRAM, HRA LETTER NO. 15
HRA Meeting Minutes -3- February 28, 1995
Executive Director Prosser reviewed HRA Letter No. 15 regarding consideration
of contract with John Szarke to formulate "Together We Can," an apartment resident
self-sufficiency program.
John Szarke, consultant, presented~the HRA with a brief background of his
experience. He stated that the first stage of his work would be gathering information,
talking to people and reading. Mr. Szarke would then identify the issues.
Commissioner Luettinger asked if we aren't duplicating efforts by undertaking
this project.
Mr. Prosser stated that Mr. Szarke's charge will be to identify the needs of
individuals and the resources in the community now available to address those needs.
So, in essence, this would be coordinating effort. The funding for this program will
come from Section 8 administrative funds.
Chair Harms requested that two or three individuals from our current boards and
commissions and a staff person oversee the work of this project and report back to the
HRA.
Mr. Prosser stated that the Richfield Human Services Planning Council would be
the appropriate entity to provide this feedback.
Commissioner Helmberger agreed with Mr. Prosser's comment.
Chair Harms asked that a subcommittee of the Human Services Planning
Council be appointed to oversee this project and make periodic reports to the HRA.
M/Helmberger, S/Luettinger o aQprove the contract with John Szarke to
formulate "Toaether We Can " an apartment resident self-sufFcienc~gram.
Motion carried 3-0.
ITEM #8 CONSIDERATION OF LEGISLATIVE PROPOSAL TO ENABLE HRA TO
ESTABLISH PROPERTY HOLDING NON-PROFIT CORPORATIONS,
HRA LETTER NO. 16
Executive Director Prosser reviewed HRA Letter No. 16 regarding consideration
of a legislative proposal to enable the HRA to establish property holding non-profit
corporations.
HRA Meeting Minutes -4- February 28, 1995
Chair Harms stated that he recommends the approval of this permissive
legislative proposal.
M/Luettinger, S/Helmberger to approve the legislative proposal to enable the
HRA to establish groperty holding non-profit corporations.
Motion carried 3-0.
ITEM #9 CONSIDERATION OF STIPULATIONS OF SETTLEMENT REGARDING
CONDEMNATION OF PHASE 1 PROPERTIES, HRA LETTER NO. 17
City Attorney Dean reviewed HRA Letter No. 17 regarding consideration of
stipulation regarding condemnation of Phase I properties.
M/Luettinger, S/Harms to approve the stipulations of settlement regarding
condemnation of Phase I properties. parcels 5. 6. and 7.
Motion carried 2-0 (Helmberger abstained).
ITEM #2 CONSIDERATION OF RESOLUTION AUTHORIZING CONDEMNATION
AND QUICK TAKE OF PHASE II, SHOPS AT LYNDALE, ILN
REDEVELOPMENT PROJECT, HRA LETTER NO. 10
Executive Director Prosser reviewed HRA Letter No. 10 regarding consideration
of resolution authorizing condemnation and quick take of Phase 11, Shops at Lyndale,
ILN Redevelopment Project.
Jackie Wentworth, Conworth Inc., made a status report on the relocation efforts
in the Phase II area of the ILN.
Commissioner Luettinger asked how negotiations are proceeding with Mr. Fox
and if the Conoco station would be removed.
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Murray Kornberg, CSM, reported on the progress of the negotiations with Mr.
Fox. Mr. Kornberg restated CMS's intention to proceed with Phase II and reiterated
their need for the quick-take process. He concluded that the Conoco station will remain
according to the current plan.
HRA Meeting Minutes -5- February 28, 1995
Chair Harms stated that he expected the developer to seriously consider the
acquisition of the Conoco site within the financial constraints of the project.
Mr. Kornberg stated that they would seriously consider that issue and have not
finally ruled it out.
City Attorney Dean distributed two corrected pages to the resolution, pages 4
and 6. The corrected pages include a reference that the taking is "not subject to snow
fence easements." ~ +
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. 541
RESOLUTION AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTY
Motion carried 2-0 (Helmberger abstained). This resolution appears as
Resolution No. 541 in Resolution Book No. 4.
ITEM #3 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF PROPERTY TO CSM CORPORATION TO
PROVIDE FOR CONSTRUCTION OF PHASE II SHOPS AT LYNDALE,
ILN REDEVELOPMENT PROJECT, HRA LETTER NO. 11
Executive Director Prosser reviewed HRA Letter No. 11 regarding public hearing
and consideration of resolution authorizing sale of property to CSM Corporation to
provide for construction of Phase II Shops at Lyndale, ILN Redevelopment Project.
Kevin Lewis, 902 West 77-1/2 Street, asked if it is normal to give a 90 day quick
take process. He stated that he hasn't talked to the developer but has talked to the
relocation person who showed him three properties.
Jackie Wentworth, Conworth, stated that the trigger for relocation benefits is
either the condemnation process or an offer and as such the process will include
financial assistance only after the trigger has occurred.
Mr. Prosser stated that the time for relocation has been curtailed and that we will
continue to try to work with this.
HRA Meeting Minutes -6- February 28, 1995
Mr. Harms stated that he can't promise anything but that he would work very
hard to try to resolve these relocation problems.
Jim Miller, Twin City Tire, stated that his new building has to meet several
building code issues related to his building and bringing automobiles into the building.
He stated that~CSM is not interested in keeping Twin CityTire in the project area and is
reflected in the lease rates proposed to them. Mr. Miller wants some time consideration
to allow them to build a building before they close the store on 77-1/2 Street. He stated
that he recently talked to Mr. Feldman and it may be that Mr. Feldman could include -
Twin City Tire in with a project with them in~Phase II.
City Attorney Dean restated that the action to be taken tonight will give the HRA
possession of these properties 90 days from this coming Thursday.
Kevin Lewis asked why the Lambert site wasn't made available to help existing
businesses.
Mr. Prosser responded that the City was facing a site crisis with the construction
of 77th Street.
M/Luettinger, S/Helmberger to close the public hearing.
Motion messed 3-0.
M/Luettinger, S/Harms that the following resolution be adopted: that it be s rp ead
in the resolution book and that it be made Hart of these minutes:
RESOLUTION NO. 542
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY
LOCATED BETWEEN COLFAX AND LYNDALE AVENUES AND
77TH STREET AND 1-494
Motion carried 2-0 (Helmberger abstained). This resolution appears as
Resolution No. 542 in Resolution Book No. 4.
ITEM #4 CONSIDERATION OF RESOLUTION AMENDING CONTRACT FOR
PRIVATE DEVELOPMENT, CSM, HRA LETTER NO. 12
Attorney Dean reviewed HRA Letter No. 12 regarding consideration of resolution
amending contract for private development, CSM.
HRA Meeting Minutes -7- February 28, 1995
City Attorney Dean stated that it was necessary to separate the Colfax Avenue
property from the rest of the land.
M/Luettinger, S/Helmberger that the following resolution be ado ted; that it be
spread in the resolution book and that it be made part of these minutes:
RESOLUTION NO. 543
RESOLUTION AMENDING CONTRACT FOR PRIVATE
DEVELOPMENT (THIRD AMENDMENT)
Motion carried 3-0. This resolution appears as Resolution No. 543 in Resolution
Book No. 4.
ITEM #4A CONSIDERATION OF AUTHORIZATION OF LETTER OF CREDIT,
ADDENDUM TO HRA LETTER NO. 12
City Attorney Dean reviewed an addendum to the HRA which modifies the letter
of credit for the CSM Project. Mr. Dean described the addendum and discussed it with
Commissioners. It was Mr. Dean's conclusion that the letter of credit currently under
consideration covers all of the developer's obligations with respect to Phase I, including
the Colfax property. The separate letter of credit is in the amount of $750,000.
Murray Kornberg, CSM, reported that all acquisition costs for Phase I came in
within 10% of their original budget. He is confident that the Phase II estimates reflect a
close estimate of those costs. Rents for Phase I are on target and Phase II may be as
good or better than originally estimated.
M/Helmberger, S/Luettinger to authorize the letter of credit as described.
Motion carried 3-0.
ITEM #10 EXECUTIVE DIRECTOR REPORT
None.
HRA Meeting Minutes
ITEM #5 CLAIMS AND PAYROLL
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February 28, 1995
M/Luettinger S/Helmberger that the following claims and payroll be approved:
FIRSTAR BANK
Checks: HRA: 7532-7649; 13023-13057; 13358-13395 $626,158.39
Section 8: 1087 $ 97,000.00
Motion carried 3-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:33 p.m.
Date Approved: 3/27/95
Thomas E. Harms
,~ _ Chair
~/ ~ \ Y/ ~ \
Steven L. Devich ~ - Jarn'es D. Prosser
Acting City Clerk ~ Executive Director
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