10-09-1995 SpecialCITY OF RICHFIELD, MINNESOTA
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
OCTOBER 9,1995
HRA MEMBERS
PRESENT: Joan Helmberger, Russ Susag and Vem Luettinger.
MEMBERS NOT
PRESENT: Tom Harms and Michael Sandahl.
STAFF PRESENT: James Prosser, City Manager; Steven Devich, Administrative
Services Director; Thomas Ferber, City Clerk; Byron Wallace,
Community Development Director; Donald Fondrick,
Community Services Director; Jack Erskine, Public Safety
Director; Bruce Palmborg, Housing & Redevelopment
Coordinator; and John Dean, City Attorney.
The meeting was called to order by Vice Chair Helmberger at 7:12 p.m.
APPROVAL OF MINUTES
M/Susag, S/Luettinger ~.o approve the minutes of the Regular HRA Meeting of
August 21. 1995: the Reqular HRA Meeting of September 18. 1995 (No Quorum): the
Special HRA and City Council Meeting with Planning Commission of September 26. 1995
(No Quorum).
Motion carried 3-0.
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ANY ITEM NOT
LISTED ON THE AGENDA.
No one wished to address the HRA.
Item #2 CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR
PRIVATE REDEVELOPMENT WITH MERIDIAN PROPERTIES REAL
ESTATE DEVELOPMENT L.L.C. D/B/A TOLD DEVELOPMENT COMPANY
AND RATIFICATION OF RIGHT OF ENTRY AGREEMENT (CONTINUED
FROM SEPTEMBER 18, 1995). HRA LETTER N0.58
Special HRA Meeting Minutes -2- October 9, 1995
Executive Director Prosser reviewed HRA Letter No. 58 regarding the proposed
contract for private development on the Cloverleaf site with Meridian Properties Real
Estate Development L.L.C. d/b/a TOLD Development Company and ratification of the
Right of Entry Agreement.
Ralph Robinson, President of TOLD Development Company, reviewed the
proposed site plan for development on the Cloverleaf site consisting of two phases. He
stated Phase I would consist of a six story office building and adjacent two level parking
structure. He stated Phase II would consist of an eight story office building and adjacent
two level parking structure. Mr. Robinson stated that corporate users desire a larger floor
"plate", therefore, the original proposal for seven and eleven story office buildings had
been modified by reducing the height and increasing the floor square footage. He stated
that the parking structure height had also been reduced from three levels above ground to
two levels above ground with some parking now to be provided in underground garages in
the office buildings. Mr. Robinson indicated that the site plan would try to take advantage
of the existing trees to the extent possible.
Jack Hollerman, Hollerman & Buitsman Architects, reviewed a drawing depicting
the proposed design of the office buildings. He explained than the original curved design
had been changed to a design with step back angles in response to corporate office
needs. He reviewed the glass curtain wall and banding materials proposed for the
buildings.
Commissioner Luettinger asked if the project design had been presented to the
neighborhood.
Mr. Robinson stated that TOLD had presented the project at a neighborhood
meeting several months ago. He indicated that another neighborhood meeting would be
conducted to review the changes in the design.
Council Member Rosenberg asked about the number of people expected to work
and use the buildings.
Mr. Robinson stated Phase I would provide for 514 parking spaces and Phase II
would provide for 688 parking spaces.
Executive Director Prosser indicated tenants would be encouraged to use traffic
management techniques.
Bill Swanson, 6500 Woodlake Drive, questioned why there would be two different
heights for the office buildings.
Mr. Robinson stated the site and configuration constrained what could be built. He
indicated Phase I was meant to attract further development for Phase II. He stated that
lenders require 70% preleasing and the smaller first phase made this more achievable.
Special HRA Meeting Minutes -3- October 9, 1995
HRA Attomey Dean reviewed and answered questions regarding the major points
of the proposed contract for private development with Meridian Properties. Mr. Dean
discussed preconditions to closing related to the following issues which must be resolved
within the next 90 days with agreement between the redeveloper and HRA:
• Wetland filling approval and financing costs related to wetland site preparation.
• Cost of removal of abandoned City utilities.
• Cost of relocation of telephone utility.
• Cost of signalization on 77th Street for entry/exit for the project site.
Mr. Dean stated the amount of the Phase I T.I.F. note for Exhibit D of the contract is
$5,600,000 and the amount of the Phase II T.I.F. note for Exhibit E of the contract is
$6,600,000.
Commissioner Susag asked about the term of the T.I.F. district.
HRA Attomey Dean stated it was a 16 year term to the year 2012.
Commissioner Susag asked who would be assessed if some items such as the
traffic signal were financed with special assessments.
HRA Attomey Dean stated that only Meridian Properties would be assessed,
although possibly CSM could be assessed a portion of the traffic signal cost.
HRA Attomey Dean responded to questions regarding the district term, relocation
of utilities and closing dates for the property.
Larry Wozniczka, 6744 Wentworth Avenue, questioned the sale of the property to
Meridian Properties for the same as what the HRA paid several years ago. He questioned
the need for tax increment financing since there is no need for clearing the site for
development.
Executive Director Prosser stated that the need for tax increment financing is the
fundamental question the HRA must answer. He discussed the costs of development of
this site and whether this site can be developed to be competitive absent tax increment
financing. Mr. Prosser stated that the HRA paid $1.1 million for the 14 acre Cloverleaf
parcel. He indicated the land being sold to Meridian Properties for $1.1 million is
approximately 8 acres of the original Cloverleaf site. He indicated the HRA and City
desired a high density use for the site which requires additional costs related to parking
structures, site preparation, and traffic control. He stated the project must meet the "but
for" test in order to qualify for tax increment financing.
HRA Attomey Dean reviewed the "but for" test criteria and indicated that the HRA
will have to make that determination in the next 90 days.
Special HRA Meeting Minutes
-4-
October 9, 1995
M/Susag, S/Luettinger that the following HRA resolution be adopted that it be
spread in the HRA resolution book and that it be made part of these mirn~tPa•
APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH MERIDIAN
PROPERTIES REAL ESTATE DEVELOPMENT L.L.C.
Motion carried 3-0. This resolution appears as HRA Resolution No. 560 in HRA
Resolution Book No. 4.
M/Susag, S/Luettinger to rati and approve the Right of tp/~,grePmpnt fnr
Environmental Investigation between the HRA and Meridian Properties Real Estate
Development L L C d/b/a TOLD Development Com anv.
Motion carried 3-0.
Item #3 CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF
PROPERTIES FOR RICHFIELD REDISCOVERED (CONTINUED FROM
SEPTEMBER 18.,1995):
• 6601 LOGAN AVENUE
• 506 EAST 67TH STREET
• 76TH AND EMERSON, LOT 1, BLOCK 2
• 76TH AND EMERSON, LOT 1, BLOCK 1
HRA LETTER N0.59
Executive Director Prosser reviewed HRA Letter No. 59 regarding the proposed
purchase of the following additional sites for the Richfield Rediscovered program:
6601 LOGAN AVENUE
506 EAST 67TH STREET
76TH AND EMERSON, LOT 1, BLOCK 2
76TH AND EMERSON, LOT 1, BLOCK 1
Commissioner Luettinger stated concerns that the purchase price for 6601 Logan
Avenue could be seen as a bailout for a property owner who let the property deteriorate to
the point where it is uninhabitable.
Executive Director Prosser discussed the determination of value for this property.
He stated that purchase of this property could be seen as addressing a neighborhood
issue by eliminating a problem property and replacing it with a positive. He stated it was
up to the judgment of the HRA to determine whether this was an appropriate acquisition
for the Richfield Rediscovered Program.
Special HRA Meeting Minutes -5- October 9, 1995
M/Susag, S/Luettinger that the following. HRA resolution be adopted. that it be
spread in the HRA resolution book and that it be made part of these minutes•
HRA RESOLUTION NO. 561
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT:
6601 LOGAN AVENUE, 507 EAST 67TH STREET, AND
76TH STREET AND EMERSON AVENUE
Motion carried_ 3-0. This resolution appears as HRA Resolution No. 561 in HRA
Resolution Book No. 4.
Item #4 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF 7112 FIRST AVENUE (CONTINUED FROM SEPTEMBER 18, 1995).
HRA LETTER N0.60
Executive Director Prosser reviewed HRA Letter No. 60 regarding the proposed
sale of the HRA cooperative house project with Hennepin Technical College (HTC)
located at 7112 First Avenue to a qualified Richfield family.
M/Luettinger, S/Susag to close the public hearing.
Ms~tion carried 3-0.
M/Luettinger, S/Susag tha the following HRA resolution be adopted. that it be
spread in the HRA resolution book and that it be made part of these minutes•
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
7112 FIRST AVENUE
Motion carried 3-0. This resolution appears as HRA Resolution No. 562 in HRA
Resolution Book No. 4.
Item #5 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF RICHFIELD REDISCOVERED PROPERTY AT 6845 NEWTON
AVENUE TO LOYAL THOMPSON AND 6812-13TH AVENUE TO ROCK
PORT HOMES (CONTINUED FROM SEPTEMBER 18,1995). HRA LETTER
N0.61
Special HRA Meeting Minutes -G- October 9, 1995
Executive Director Prosser reviewed HRA Letter No. 61 regarding the proposed
sale of the following Richfield Rediscovered properties for the development of new single
family homes:
• 6845 Newton Avenue to Loyal Thompson for $26,000.
• 6812 13th Avenue to Rock Port Homes, Inc. For $30,000.
M/Luettinger, S/Susag to close the public hearing.
M/Luettinger, S/Susag that the following HRA resolution be adoated that it be
spread in the HRA resolution book and that it be made part of thPSe minutes•
HRA RESOLUTIO_ NO. 563
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6845
NEWTON AVENUE TO LOYAL THOMPSON AND 6812-13TH AVENUE TO ROCK
PORT HOMES, INC. IN ACCORDANCE WITH DEVELOPMENT AGREEMENTS
Motion carried 3-0. This resolution appears as HRA Resolution No. 563 in HRA
Resolution Book No. 4.
Item #6 EXECUTIVE DIRECTOR REPORT
Executive Director Prosser provided a written report to the HRA.
Item #7 CLAIMS AND PAYROLLS
M/Susag, S/Luettinger that the following claims and g_ayrolls be ag, rp Quad:
FIRSTAR BANK
Section 8: 1094 $ 97,900.00
HRA: 8348-8468; 13757-13778; 14392-14422 $ 208,301.04
Motion carried 3-0.
Special HRA Meeting Minutes -7-
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:27 p.m.
Date Approved: 10/ 16 j 95
Thomas P. Ferber
City Clerk
October 9, 1995
7`~
J n Helmberger
Vice Chair ..-, ,
James D. Prosser
tive Director
~1