03-13-1995CITY OF RICHFIELD, MINNESOTA
CONCURRENT HOUSING AND REDEVELOPMENT
AUTHORITY/CITY COUNCIL MEETING
March 13,1995
Mayor Kirsch and Chair Harms called the Concurrent City Council/Housing and
Redevelopment Authority Meeting to order at 7:00 p.m.
COUNCIL MEMBERS
. PRESENT: Martin Kirsch, Mayor; Susan Rosenberg; and Russ Susag.
MEMBERS NOT
PRESENT: Michael Sandahl and Don Priebe.
HRA MEMBERS
PRESENT: Tom Harms, Joan Helmberger, Russ Susag, and Vern
Luettinger.
HRA MEMBERS
NOT PRESENT: Michael Sandahl.
STAFF PRESENT: James Prosser, City Manager; Thomas Ferber, City Clerk;
Donald Fondrick, Community Services Director; Byron Wallace,
Community Development Director; Jack Erskine, Public Safety
Director; ~Iliam Fillmore, Liquor Operations Director; Bridget
Walstrom, Finance Manager; Michael Eastling, City Engineer;
Bruce Palmborg, Housing & Redevelopment Coordinator; and
Corrine Heine, Assistant City Attorney.
Item #1 HRA CONCURRENT MEETING WITH CITY COUNCIL TO REVIEW REQUEST
FOR ISSUANCE OF TAX EXEMPT REVENUE BONDS TO PURCHASE AND
RENOVATE CENTURY COURT APARTMENTS. HRA LETTER NO. 18
City Manager/Executive Director Prosser reviewed HRA Letter No. 18 regarding the
concurrent meeting with the City Council to review a request by Dominiur~ Management
Services, Inc. for the issuance of tax exempt revenue bonds to purchase and renovate the
Century Court apartments. He stated that since preliminary approval on December 29,
1994 discussions have been held between staff and Dominium regarding the financial and
rehabilitation packages. He indicated the following unresolved issues:
The extent of the rehabilitation plan as compared to the savings from the
issuance of tax exempt mortgage revenue bonds.
• The use of or amount of tax Credits that may be issued..
Type of assurance that bonds will be unparked.
• Amount and interrelationship between issuer's fee and compensation to the City
and School District for loss of tax revenues from change in tax classification.
Concurrent Council/HiZA Minutes -2- March 13, 1995
• Documentation of basic agreements.
• Agreements on management conditions.
• Amount of contribution to maintenance reserve.
HRA Chair Harms reviewed the status of the negotiations and the efforts of staff to
measure possible benefits for the City, the level of reinvestment, and the impact of the
issuance of the bonds. He stated further negotiation and information would be necessary
before a final decision can be made.
HRA Commissioner Luettinger stated concerns that this would set a precedent for
other apartment owners to seek similar assistance and about benefiting the current
owners, Harvey Ratner and Marv Wolfenson.
City Manager/Executive Director Prosser indicated the bond mechanism is an
available tool for similar proposals depending on the project.
HRA Chair Harms indicated the bonds could be considered a leverage vehicle for
rehabilitation of the apartments.
Council Member/HRA Member Susag stated he felt the proposed improvements by
Dominium were more of a maintenance nature rather than adding value. He stated he
found it difficult to see reasons to support issuance of the bonds for that purpose.
Item #2 PUBLIC HEARING AND CONSIDERATION OF HOUSING PROGRAM AND
ISSUANCE OF REVENUE BONDS TO FINANCE PURCHASE AND
RENOVATION OF CENTURY COURT APARTMENTS. C. L. N0.68
Mayor Kirsch opened the public hearing regarding the issuance of revenue bonds
to finance the purchase and renovation of the Century Court Apartments.
Jack Safar, Dominium principal, reviewed the history of Dominium and involvement
with the ownership and operation of apartments. He indicated that the Century Court
Apartments had been well kept up but now required replacement of some major
mechanical systems, roofs, and appliances. He stated that it was the intention of
Dominium to position Century Court to continue to fill the housing needs as it currently
does with no major changes of the tenancy. In response to questions from the City
Council and HRA, Mr. Safar indicated that Century Court was listed for sale and that
Dominium looked at revenue bonds as an economic tool to finance the purchase and
renovation. He indicated that Dominium intended to manage and operate the buildings
with Mr. Ratner and Mr. Wolfenson becoming minority limited partners. Mr. Safar
answered questions and discussed the possible eligibility of the project for low-moderate
income tax credit program.
Concurrent Council/HRA Minutes -3- March 13, 1995
Barbara Portwood, bond counsel from Holmes & Graven, reviewed and answered
questions regarding the tax credit program and the proposed bond sale. She stated
action must be taken by April 7 when the bonding authority for the pool will expire.
It was the consensus of the HRA and City Council that there were issues and
concerns not yet answered and remains questions about whether the issuance of bonds
for this proposal.
M/Susag, S/Rosenberg to olose the public hearina.
Motion carried 3-0.
M/Susag, S/Rosenberg to continue consideration of the issuance of revenue bonds
to finance the.purchase and renovation of the Century Court Apartments to the March 27
1995 City Council Meeting.
Motion carried 3-0.
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ADJOURNMENT
The Housing and Redevelopment Authority adjourned their meeting with the City
Council by unanimous consent at 7:44 p.m.
Date Approved: 3/27/95
Thomas P. Ferber
City Clerk
Thomas Harms Chair
J mes .Prosser
Ex tive Director