06-17-1996~ J
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 17, 1996
The meeting was called to order by Chair Pro Tempore Luettinger at 7:00 p.m.
HRA Members
Present: Vern Luettinger; Michael Sandahl and Russ Susag.
HRA Members DoT
Present: Thomas Harms and Joan Helmberger.
Staff Present : James Prosser, Executive Director; Steven Devich, Acting City
Clerk; Bruce Palmborg, Community Development Director; John B.
Dean, City Attorney; and Bruce Nordquist, Housing Supervisor.
Others Present : Susan Rosenberg, City Council Member; and Sid Inman, Ehlers &
Associates.
M/Sandahl, S/Susag ~aorove the minutes of the Special Joint City Council and
HRA Meeting with Planninq Commission of May 20. 1996: Regular HRA Meeting of mav.
20. 1996: and Speicial HRA Meeting of June 3. 1996.
HRA Meeting Minutes -2- June 17, 1996
Executive Director Prosser reviewed HRA Letter No. 29 regarding the public
hearing and consideration of resolution authorizing sale of Richfield Rediscovered
property at 7625 Emerson Avenue to Choice Wood, Inc.; and continuation of public
hearing to sell 720a Third Avenue; and cancellation of public hearing regarding sale of
6621 Girard Avenue.
Larry Wozniczka, 6744 Wentworth Avenue, asked if the property at 7625 Emerson
Avenue would be tax increment.
Mr. Prosser responded that it was.
Mr. Wozniczka stated that he was opposed to this site being a tax increment
district.
Commissioner Susag asked if Emerson was a loop street with Dupont.
Mr. Prosser said that it was.
M/Sandahl, S/Susag to close the public hearina.
M/Susag, S/Sandahl 1) 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• 2) to
continue the public hearing to sell 7200 Third Avenue to the .luiy 15 1996 H A mPptinn•
and 3) to cancel the public hearing on 662 Girard Aven~~p.
.HRA RESOLUTION NO. 587
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
No one wished to address the HRA.
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HRA Meeting Minutes -3- June 17, 1996
7625 EMERSON AVENUE TO CHOICE WOOD, INC. IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
Motion carried 3-0. This resolution appears as HRA Resolution No. 587 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 23 regarding consideration of
resolution authorizing eminent domain proceedings to acquire property located at 6205
Morgan Avenue for inclusion in Richfield Rediscovered Program.
Larry Wozniczka, 6744 Wentworth Avenue, asked if the $35,000 would also cover
the cost of demolition.
Community Development Director stated that it did not and that the demolition
would be approximately $6,000.
Commissioner Susag stated that the action proposed is not a new process and has
been used successfully in the past for locations such as 6636 Sheridan Avenue.
M/Sandahl, S/Susag that the following. HRA resolution be adopted. that it be s r
in the HRA resolution book and that it be made part of these minutes:
RESOLUTION AUTHORIZING EMINENT DOMAIN
PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTY
LOCATED AT 6205 MORGAN AVENUE
Motion carried 3-0. This resolution appears as HRA Resolution No. 588 in HRA
Resolution Book No. 5.
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HRA Meeting Minutes -4- June 17, 1996
Executive Director Prosser reviewed HRA Letter No. 31 regarding consideration of
resolution purchase of 7027 Columbus and 6621 Girard Avenues and 2916 West 71-1/2
Street under Richfield Rediscovered Program.
M/Sandahl, S/Susag that the following HRA resolution be adooted that it be spread
in the HRA resolution book and that it be made part of these minutes•
RESOLUTION AUTHORIZING PURCHASE
OF REAL PROPERTIES LOCATED AT
7027 COLUMBUS AVENUE
6621 GIRARD AVENUE
2916 WEST 71-1/2 STREET
FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carved 3-0. This resolution appears as HRA Resolution No. 589 in HRA
Resolution Book No. 5.
Item #
5
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Executive Director Prosser reviewed HRA Letter No. 32 regarding consideration of
resolution approving modifications to Richfield Home Rehabilitation Deferred Loan
Program.
Commissioner Susag asked for specific information regarding the deferred loan
program.
Mr. Prosser further explained the program.
M/Sandahl, S/Susag that the following HRA resolution be adopted, that it be spread
in the HRA resolution book and that it be made Hart of these minutes•
RESOLUTION AUTHORIZING APPROVAL OF MODIFICATIONS
TO THE HOME REHABILITATION DEFERRED LOAN PROGRAM
Motion carried 3-0. This resolution appears as HRA Resolution No. 590 in HRA
Resolution Book No. 5.
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Executive Director Prosser reviewed HRA Letter No. 33 regarding consideration of
request to execute subordination, non-disturbance and attomment agreement for CSM,
Shops at Lyndale, Phase II.
Commissioner Sandahl asked why this particular tenant asked for this special
consideration.
City Attorney Dean stated that some tenants don't want to enter into a long term
lease without such an assurance. He stated that this is relatively common.
Commissioners Sandahl and Luettinger stated that they were very concerned that
representatives of CSM were not present to request this change of the HRA. They stated
that in the future CSM should seriously consider doing so.
Larry Wozniczka asked if CSM is shaky and that is why the subordination
agreement has been requested.
Mr. Dean stated he did not believe that was the case.
M/Susag, SlLuettinger to approve and execute the Subordination. Non-Disturbance
and Attornment Agreement for Baby Superstore. Inc. relatin, tq o Shops at Lyndale. Phase
ll•
Executive Director Prosser reviewed HRA Letter No. 34 regarding consideration of
action plan to achieve housing goals related to Metropolitan Livable Communities Act.
Commissioner Luettinger asked what a greater variety of apartment choices meant.
Housing Supervisor Bruce Nordquist explained the objectives associated with the
goal.
HRA Meeting Minutes -5- June 17, 1996
HRA Meeting Minutes
-6-
June 17, 1996
Commissioner Susag stated that it was his understanding that Richfield's. response
to the Metropolitan Livable Communities Act was to provide more market rate housing
opportunities and more expensive housing to provide a broader mix.
Mr. Prosser stated that this was correct.
Larry Wozniczka stated that he was not in agreement with the plan as it is worded.
Mr. Prosser stated that it was not the legislative intent of this program to provide a
wide variety of housing to build tax base, but rather to avoid longer range pockets of
poverty.
Commissioner Susag stated that the deferred loan program is available to address
some of the safety issues voiced by Mr. Wozniczka.
Betty Carr, 6633 Lynwood Boulevard, asked if there are any luxury apartments in
Richfield.
Mr. Prosser stated there may not be any depending upon the definition of luxury
apartment. bra stated that there wePe very few three bedrea~ir apartments in Richfield.
M/Susag, S/Luettinger to authorize the Executive Director t submit the Housing
Action Plan to the City Council for consideration if authorized and forward the lance to the
Metropolitan Council.
Executive Director Prosser reviewed HRA Letter No. 35 regarding consideration of
resolution establishing just compensation and authorizing purchase of 6601 Bloomington
Avenue car wash site.
Commissioner Luettinger asked if there were any environmental problems or
contamination of the site.
Community Development Director Palmborg stated that a Phase I environmental
study was done and no problems showed up.
Commissioner Susag asked 'tf staff had any indication of interest in the property and
how was the property designated in the comprehensive plan.
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HRA Meeting Minutes -7- June 17, 1996
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Mr. Prosser responded that the property was projected as commercial and that we
have had periodic inquiries about the site. He added that the property may be more
attractive with the metal structures removed.
Commissioner Susag asked if this was a TIF action.
Mr. Prosser stated that it was not at this time. He added that potential future
projects may warrant the HRA looking at possible TIF assistance.
M/Sandahl, S/Susag that the following HRA resolution be adopted. that it be s rp ead
in the HRA resolution book and that it be made part of these minutes:
RESOLUTION ESTABLISHING JUST COMPENSATION
AUTHORIZING PURCHASE OF REAL PROPERTY
6601 BLOOMINGTON AVENUE
Motion carried 3-0. This resolution appears as HRA Resolution No. 591 in HRA
Resolution Book No. 5.
Item #9 ~<
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This item was moved to the end of the meeting agenda to be considered for
discussion only.
Executive Director Prosser reviewed HRA Letter No. 36 regarding discussion of
development investment and growth opportunities in Richfield and process to identify
areas with greatest potential.
Mr. Prosser described the current legislative environment regarding tax increment
financing and a need to review Richfleld's excess tax increment funds currently available.
John Dean explained legislative concerns that may be facing the HRA regarding
current funds in tax increment districts. Mr. Dean suggested that now is an appropriate
time to look at the potential uses of development fund monies.
Bruce Nordquist distributed a map identifying Richfleld's growth opportunity
locations and a checklist that accompanied the map. Mr. Nordquist briefly summarized
HiZA Meeting Minutes -8- June 17, 1996
the documents and the 20 project sites in the community. He also distributed and
summarized a time and events schedule.
Commissioner Sandahl asked for further information regarding the prioritization of
the projects and criteria for further consideration by the HRA.
Commissioner Susag asked for a concurrent HRA and City Council Study Session,
perhaps as soon as July 1.
Mr. Prosser stated that the staff would prepare a staff recommended prioritization of
the project checklist and submit it to the HRA and City Council for further review. HRA
Commissioners will also review the documents distributed this evening in an effort to
further prioritize these issues.
~txecutive ®irector Prosser reported on the differences between the Richfield
Meridian Crossings and Edina United Properties projects and tax increment assistance.
He stated that staff may reexamine how the TIF assistance to TOLD Development is
structured to provide a more competitive position for the Meridian Crossings project
M/Sandahl, S/Susag that the following claims and payrolls be aR removed:
Section 8: 1103 $ 98,247.00
HRA: 9389-9498; 13979-13992; 14875-14909 264,245.87
The meeting was adjourned by unanimous consent at 8:47 p.m.
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HRA Meeting Minutes
Approved: 7/15/96
-9-
Vern Luettinger
Chair Pro Teruo
Director
June 17, 1996
Steven ~. uevicn
Acting City Clerk