03-18-1996CITY OF RICHFIELD, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
March 18, 1996
HRA MEMBERS PRESENT: Thomas Harms; Joan Helmberger; Vem Luettinger;
Michael Sandahl and Russ Susag (arrived at 7:15 p.m.).
STAFF PRESENT: James D. Prosser, Executive Director (arrived at 7:15
p.m.); Steven Devich, Acting City Clerk; Bruce
Palmborg, Community Development Director; and
Corrine Thomson, City Attorney.
The meeting was called to order by Chair Harms at 7:00 p.m.
APPROVAL OF MINUTES
M/Luettinger, S/Helmberger to approve the minutes of the regular HRA meeting
of February 20 1996.
Motion carried 4-0.
ITEM #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA
No one wished to address the HRA.
Acting Executive Director Devich presented a video of a Channel 9 feature
regarding the Richfield Rediscovered property at 6601 Logan Avenue.
ITEM #2 CONSIDERATION OF FIRST AMENDMENT TO CONTRACT FOR
PRIVATE REDEVELOPMENT; MERIDIAN CROSSINGS, TOLD
DEVELOPMENT COMPANY, HRA LETTER NO. 13
HRA Meeting Minutes -2- March 18, 1996
Acting Executive Director Devich reviewed HRA Letter No. 13 regarding
consideration of first amendment to contract for private redevelopment; Meridian
Crossings, Told Development Company.
Ralph Robinson, Told Development, addressed the HRA regarding the status
of the Meridian Crossings project. Mr. Robinson stated that presentations to real
estate brokers had been completed and that their reaction was very positive.
Commissioner Luettinger asked about the impact of fiscal disparities on the
project.
Sid Inman, Publicorp, stated that the fiscal disparities will be paid from within
the district.
(Prosser and Susag arrived at this time.)
Lany Wozniczka, 6744 Wentworth Avenue, asked about the tax increment
notes referenced in the HRA letter.
Mr. Inman described the "pay as you go" tax increment process and the tax
increment notes. He emphasized that the developer must pay the amounts in taxes
before the developer would receive those same amounts from tax increment. The
notes represented a maximum tax increment assistance amount possible.
Mr. Wozniczka asked about the public benefit of the project.
Mr. Inman described the base value of the project and the Contract for Private
development including the first amendment.
Mr. Harms responded that the benefit of developing the Meridian Crossings
project is greater than the impact on just the specific parcel itself. The project has a
positive impact on the entire district and entire community.
M/Helmberger, S/Luettinger to aRorove the first amendment to Contract for
Private Redevelopment: Meridian Crossings. Told Development Com anv.
ITEM #3 CONSIDERATION OF AGREEMENTS RELATED TO MERIDIAN
CROSSINGS; TOLD DEVELOPMENT COMPANY, HRA LETTER NO. 14
Executive Director Prosser reviewed HRA Letter No. 14 regarding consideration
of agreements related to Meridian Crossings; Told Development Company.
HRA Meeting Minutes -3- March 18, 1996
Commissioner Susag asked if these documents contain all of the pre-conditions
discussed by the HRA.
Mr. Prosser responded that~they were included plus some additional items
which were identified by staff since the last HRA meeting.
Commissioner Sandahl asked how the out lot situation and maintenance of the
trees and property would be handled.
Community Development Director Palmborg responded by identifying the
appropriate documentation in the agreement package which covered these issues.
There was general discussion regarding the need for specific language to
maintain the property. It was the consensus of the HRA that the existing language
was sufficient.
Commissioner Helmberger asked about the northwest out lot.
Mr. Palmborg stated that it wasn't part of the Told project and that this lot would
have to be considered by the HRA at a future date.
Commissioner Luettinger asked about the soil issues pertaining to Total
Petroleum.
Community Development Director Palmborg responded to the soil issue.
Commissioner Luettinger asked about the ingress and egress location if it is
closed off as currently configured.
Mr. Prosser responded that the ingress-egress locations would be dealt with as
a cooperative issue between Meridian Crossings and the City as the project
progressed.
M/Luettinger, S/Susag that the ~reement letter and Exhibits A-C be a nr~ Quad.
ITEM #4 PRESENTATION OF INTRODUCTORY STUDY RESULTS REGARDING
JOINT USE FACILITY FOR RICHFIELD AMERICAN LEGION POST
AND RICHFIELD VFW POST BY CONNOISSEUR RESTAURANT
MANAGEMENT INC., HRA LETTER NO. 15
HRA Meeting Minutes -4- March 18, 1996
Executive Director Prosser reviewed HRA Letter No. 15 regarding the
presentation of introductory study results regarding joint use facility for Richfield
American Legion Post and Richfield VFW Post by Connoisseur Restaurant
Management, Inc.
James Domoracki, Connoisseur Restaurant Management, Inc., presented an
executive summary of the study. He stated that the joint use facility appears to be a
viable opportunity which is strongly supported by the membership of both
organizations. He concluded that the facility should be successful if it is operated
properly.
Commission Susag asked if there are other such joint facilities in the Twin
Cities.
Mr. Domoracki stated that he was not aware of any.
Commissioner Susag asked about the need to combine gambling licenses.
Mr. Domoracki responded that they would need to do so and that both
organizations are aware of it.
Mr. Domoracki told Commissioners that it was his opinion that both
organizations would be permanently operating at a loss within five years unless some
significant underlying assumptions about their operations changed to put them in a
position of advantage over competing facilities.
Chair Harms stated that it appears that the window of opportunity for this
consolidation is shorter than originally suspected. The new facility will generate a
newer, larger base of clientele and that professional management help is needed for
these operations.
There was general discussion regarding the second phase of the study, which
will be a study of the type, size, location and market for such a facility. It was the
consensus of the HRA Commissioners that the study continue.
ITEM #5 EXECUTIVE DIRECTOR REPORT
Executive Director Prosser presented a status update on the Sage agreement.
Mr. Prosser stated that Sage indicated that they were no longer interested in conveying
title of the property to the City. He stated that staff would be contacting Sage to explore
this issue further.
HRA Meeting Minutes -5- March 18, 1996
Mr. Prosser asked if there were any questions on items presented in HRA
Memorandum No. 7 entitled HRA Status Report.
There were none.
ITEM #6 CLAIMS AND PAYROLL
M/Susag, S/Luettinger that the following claims and payroll be aR rp oved:
L
4
FIRSTAR BANK
Checks: HRA: 9058-9168; 13915-13932; 14696-14748 $648,576.94
Section 8: 1100 $34,889.00
ADJOURNMENT
The meeting was adjourned by unanimous conse ~ 2 p.m.
Date A oved: 4/15/96 -
Thomas ~H~s
~ Chair
Steven L ~Devich
Acting City Clerk
D. Prosser
ve Director