09-16-1996Sv;~r:~~~..
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
~ Richfield, Minnesota
Regular Meeting
September 16, 1996
The meeting was called to order by Vice-Chair Helmberger at 7:00 p.m.
HRA Members
Present: Joan Helmberger; Michael Sandahl; and Russ Susag.
HRA Members
Excused: Thomas Harms and Vem Luettinger.
Staff Present : James D. Prosser, Executive Director; Steven Devich, Acting City
Clerk; Bruce Palmborg, Community Development Director; and
Bruce Nordquist, Housing and Redevelopment Manager.
Others Present: Jim Domoracki, Connoisseur Restaurant Management, Inc.; Dave
Labus and Greg Wollmer, The Limited, Inc. and Galyan's; Tim
Keane, The Limited, Inc.; Tom Moorse, TMI; Michael J. Mulrooney,
Advance Resources for Development, Inc.; Sid Inman, Ehlers and
Associates; and Steve Quam, QSA.
M/Susag, S/Sandahl to aanrove the minutes of the Regular HRA Meeting of August
19. 1996.
Motion carried 3-0.
Kathryn Berger, 6945 Sheridan Avenue, addressed the HRA asking that the policy
deferring Richfield Rediscovered lots to New Ford Town and Rich Acres residents first be
discontinued. Ms. Berger stated that she was interested in purchasing a Richfield
Rediscovered home, but was told it was already being purchased by a New Ford Town
resident.
Vice Chair Helmberger stated that this matter would be brought back to the HRA at
the next meeting for the discussion of all Commissioners.
Ms. Berger asked that the action on the lots on Sheridan Avenue be postponed
until after future HRA discussion on this policy.
Community Development Director Palmborg stated that a New Ford Town resident
is interested in the vacant lot on Sheridan Avenue and has an expectation that the family
could relocate there.
Ms. Berger stated that she felt that the HRA Board represented all residents of
Richfield, not just one area.
Commissioners Susag and Helmberger responded by stating that they represented
the entire community but that the-New Ford Town and Rich Acres residents were under
some unusual circumstances with the removal of the homes in that area and the desire of
some of those displaced residents to remain in the City.
M/Sandahl, S/Susag that discussion of the op Iicy deferring Richfield Rediscovered
lots to New Ford Town and Rich Acres residents first be deferred to the next HRA_
ei
Motion carried 3-0.
Executive Director Prosser introduced Dave Labus and Greg Wollmer,
representatives from The Limited, Inc. and Galyan's, who proposed a new facility on the
Naegle site; and Tim Keane, 7900 Xerxes Avenue, principal representative for The
Limited, Inc., the proposed developer for the Naegle site.
-,
HRA Meeting Minutes 2- September 16, 1996
HRA Meeting Minutes -3- September 16, 1996
Tom Moorse, the TMI representative, reviewed the proposed development of a
100,000 sq. ft. Galyan's store. He indicated that the building would be oriented much the
same as the current Naegele building. Mr. Moorse stated that the site development would
include an upgrading of a pond on the site to potentially be used for trying out canoes or
fishing rods. He stated that the primary access to the site would be on the frontage road.
Mr. Moorse reviewed the parking configuration and the interior design. The developers
were planning a winter construction.
Greg Wollmer, manager of the Minnetonka Galyan's store, responded to questions
pertaining to staffing of the proposed store.
Mr. Prosser asked the developers to describe their commitment back into the
communities they serve.
Mr. Wollmer responded that Galyan's is very active in supporting various events in
the entire metropolitan area.
Michael J. Mulrooney, Advance Resources for Development, Inc., stated that the
cost of redeveloping this site is about $24 per foot as opposed to $5 per foot for vacant
land. The difference in about $6.6 million in greater costs for the project. The requested
assistance is in the form of pay as you go Tax Increment Financing (TIF).
Sid Inman, Ehlers and Associates, addressed the HRA regarding the TIF request.
Mr. Inman stated that they would be in a position to provide a "but for" analysis for the
project. Mr. Inman stated that the project would likely generate about $3.1 million in tax
increment.
Commissioner Sandahl asked what the new value would be.
Mr. Inman responded that it would be $9.5 to 10 million in additional market value.
Commissioner Susag asked what the HRA was being asked to do tonight.
Mr. Prosser stated that this would be preliminary approval to enable staff to begin to
analyze the project. A timetable will also be presented to the HRA in the general form of a
milestone schedule.
M/Sandahl, S/Susag that the following HRA resolution be adopted. that. it be s rR ead
in the HRA resolution book and that it be made part of these minutes:
HRA RESOLUTION N0.601
RESOLUTION APPROVING THE MODIFIED REDEVELOPMENT.PLAN
FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA
AND ADOPTING THE TAX INCREMENT FINANCING PLAN FOR THE
INTERCHANGE TAX INCREMENT FINANCING DISTRICT;
REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT A
HRA Meeting Minutes -4- September 16, 1996
PUBLIC HEARING THEREON; AND RECOMMENDING APPROVAL FOR THE PLANS
Motion carried 3-0. This resolution appears as HRA Resolution No. 601 in HRA
Resolution Book No. 5.
Jim Domoracki, Connoisseur Restaurant Management, Inc., reported on the study
of a proposed new consolidated American Legion and VFW facility. Mr. Domoracki stated
that it was their opinion that such a facility could be profitable if both groups would
combine resources to support one facility and service was available to the public. He
stated that the membership of the groups was strongly in support of the development of
the new facility. A final vote of the VFW membership is taking place this evening. If the
VFW vote is positive, the next step would be to seek American Legion approval.
Commissioner Susag asked if there would be enough assets in the two groups to
proceed with this project.
Mr. Domoracki responded that there is currently a strong enough asset base to
proceed with the project and seek debt financing.
Mr. Domoracki suggested that the facility have a 120 seat daily restaurant with
meeting rooms for 600, which could be partitioned to rooms as small as to accommodate
40 people.
Commissioner Susag asked what parts of the CRM recommendation are not
agreed to by both groups.
Mr. Prosser responded that the issue of separate bars and restaurant facilities is
still not resolved.
M/Sandahl, S/Susag to accept the final study results for the shared building
g_roposal for the American Legion and VFW.
Motion carved 3-0.
......................:.....:.......
..>.. .
:.'.'4:ti
Item #4
ii+i.LiiO:•::•::•::•:•iiii•:U
•.;•::+~:•:<~:~i ti~:•.~:•:•:•:%~:~:•ii:2~:•$:>:;~:~i:??:v;.~.....i.::::::..•:::::::::.•::::: r:.•.•::.•:.:•:•::•::•:•:•:;::r,:~:~:•i:•:~i i~:?~:~:•'•:~:•Y t:
.: :.........:: .... ~...: .r ~
,v~ :..: •::....
~ +.:.v. ~: ;:}d•:,v,::~:#R~r' ~ .~~ ~:+}~ ~:::•:~{i{S>:i::~:::~:•::•:•$S+•r:•ii:•:~.i{:~?Y:Li{~:{:•i.4•$:~~i:•.:
..'~...T~* ........................ .
+ ........................... ... .v:vn:~:nw.. v ...t::::::::::::::::::::::.•.••:::::.w.•v.:.v:.•: x: v:::::4:•::::r .v: +•:: r...........xx.. :.•.•.•::......:.•:v....•:ti•'•:+
is %v::•:b:•'•:•}.~ ~i:•
•.........v........... :r::::. ...:::..,.... ........ .....~. ................v. r
:rtifi;.
tij:~ir :Y:v'~'::•:}:%:'?.::'ti~jier:::v:i'~:ti~ ;:ti{~ v.•:v\•.?•::•:: ::i:.i ~:::•:t~:~'i.~ ~:•~:~::?~:vv~'r'
~:~'~? .::::::::::.:::n:~ r~i:•:~:•$ii:Si.{•kti~}:•.titi~ii:+~iii~:~i}i ii ~.{.:~iY:<~:•:i::$$'•'~' ~'~':.`':':':.r:~ is ii:'+.}~••
HRA Meeting Minutes -5- September 16, 1996
Executive Director Prosser reviewed HRA Letter No. 58 regarding consideration of
modification of Transformation Homes Program concept.
Bruce Nordquist, Housing and Redevelopment Manager, described three policy
and program revisions as described in HRA Letter No. 58.
Commissioner Susag stated that programs #1 and #2 were very good
improrrements.
Commissioner Sandahl stated that he was having a problem supporting item #3
where an individual with a transformation project over $200,000 gets a check fora 10%
grant.
Commissioner Susag asked how many homes might fall in category 3.
Steve Quam, QSA, explained the transformation process with respect to higher
valued homes with a completed value over $200,000. He stated that there were many lots
in the community which could be used as a basis for such an improvement.
Commissioner Susag asked why the $200,000 threshold for the program instead of
a lesser amount.
Mr. Prosser responded that it could be lowered if the HRA decided to do so.
Commissioner Helmberger asked when the loans are forgiven.
Mr. Nordquist stated that the loans are forgiven in the 30th year.
Dave Sumnicht, 6620 Logan Avenue, stated that there is a need to provide tools to
expand the City's housing base to over $200,000 to provide the type of diversity of
housing that Richfield needs to remain viable well into the future. He also stated that the
10% grant incentive would come back to the entire neighborhood in terms of increased
housing values.
Larry Wozniczka, 6744 Wentworth Avenue, asked where the funds would come
from.
Mr. Prosser stated they would come from the development fund.
Commissioners asked how many such projects would we plan to do in a year.
Mr. Prosser stated that the goal would be five to ten per year.
Commissioner Sandahl asked if the action tonight is time critical.
Mr. Quam stated that the home in question for a project will be on the market in
about a month and the opportunity will likely be gone after the home is on the market.
HRA Meeting Minutes
-6-
September 16, 1996
Commissioner Helmberger stated that she wished to go ahead with at least the first
two program changes.
Commissioners felt that these changes are significant policy changes that should
be presented in greater depth and considered by all five commissioners.
~• M/Susag, S/Sandahl that the consideration of modification of the Transformation
Homes Program concept be deferred to a future HRA meeting.
Executive Director Prosser reviewed HRA Letter No. 59 regarding public hearing
and consideration of resolution regarding sale of 7116 First Avenue under New Home
Program.
M/Sandahl, S/Susag to close the public hearing.
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 part of these minutes:
HRA RESOLUTION N0.602
RESOLUTION AUTHORIZING PURCHASE
OF REAL PROPERTY LOCATED AT
7216 FIRST AVENUE
Motion carried 3-0. This resolution appears as HRA Resolution No. 602 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 60 regarding public hearing
and consideration of resolution authorizing purchase of 7421 Emerson Avenue for
Richfield Rediscovered Program.
~~
1
HRA Meeting Minutes
!`-]
HRA RESOLUTION NO. 603
RESOLUTION AUTHORIZING PURCHASE
OF REAL PROPERTY LOCATED AT
7421 EMERSON AVENUE
-7-
M/Sandahl, S/Susag to close the public hearing.
Motion carried 3-0.
September 16, 1996
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:
Motion carried 3-0. This resolution appears as HRA Resolution No. 603 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 61 regarding consideration of
resolution adopting private activity tax exempt financing guidelines.
Commissioner Susag said this item was before the Council and was referred to the
HRA because this item is under the purview of the HRA.
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:
HRA RESOLUTION NO. 604
RESOLUTION ADOPTING PRIVATE
ACTIVITY TAX EXEMPT FINANCING GUIDELINES
Motion carried 3-0. This resolution appears as HRA Resolution No. 604 in HRA
Resolution Book No. 5.
Ite #
m 8
Executive Director Prosser reviewed HRA Letter No. 62 regarding consideration of
First Time Advantage Loan Program, initiated as a result of an MHFA grant.
HRA Meeting Minutes -8- September 16, 1996
Commissioner Helmberger asked if there is a time crunch on the consideration of
this program.
Mr. Nordquist stated there was not, but it would open the window of opportunity
longer.
~~ M/Sandahl, S/Susag to authorize implementation of the First Time Advantage Loan
gram. as funded by MHFA.
Commissioner Helmberger asked if there were any comments on the senior
housing market analysis questionnaire and study. Ms. Helmberger asked that any
comments be forwarded to Executive Director Prosser by September 23.
M/Sandahl, S/Susag that the following claims and payrolls be a~ ro oved:
FIRSTAR BANK
Section 8: 1106 $ 98,247.00
HRA: 9730-9842; 14042-14059; 15000-15038 416,611.89
Motion carried 3-0.
The meeting was adjourned by unanimous c e at 9:10 p.m.
Date A roved: 10/21/96
pP
Thnmac F Harmc
t
f
en L. Devich
Acting City Clerk
am D. Prosser
Executive Director
1
'I