10-07-1996 SpecialHRA MINUTES
Richfield, Minnesota
Special Housing and Redevelopment
Authority Meeting
October 7, 1996
The meeting was called to order by Vice Chairperson Helmberger at 6:15 p.m.
1
HRA Members
Present: Joan Helmberger; Vern Luettinger; Michael Sandahl; and Russ Susag.
HRA Members
Not Present. Thomas Harms.
Staff Present : James Prosser, Executive Director; Thomas Ferber, City Clerk; Bruce
Palmborg, Community Development Director; and John Dean, City
Attorney.
Vice Chairperson Helmberger referenced the letter received from Kathryn Berger,
6945 Sheridan Avenue, regarding objections to the HRA practice of allowing New Ford
Town/Rich Acres residents a two week window of opportunity to see and reserve lots in the
Richfield Rediscovered Program prior to the general Richfield Rediscovered mailing list.
Executive Director Prosser reviewed HRA Letter No. 63 regarding marketing initiatives
to New Ford Town and Rich Acres residents and practices related to marketing the Richfield
Rediscovered Program.
Commissioner Luettinger stated that the City has an obligation to the New Ford Town
and Rich Acres residents in trying to help them have the opportunity to stay in Richfield and
that the two week window of preference is reasonable.
Special HRA Meeting Minutes -2- October 7, 1996
Commissioner Sandahl stated that almost all housing programs have some qualifier or
advantage to some group i.e. first time buyer programs. He stated agreement that the New
Ford Town/Rich Acres buyout created an obligation to provide some help to those residents.
He stated that the current practice is legal, ethical, and morally correct and should be
continued.
Commissioner Susag asked if there were any legal concerns with the practice and
discussed whether it should have been adopted as a written policy. He stated he supported
the concept. •
Executive Director Prosser indicated that the practice provided some flexibility for
special circumstances whereas a written policy may have taken away that flexibility.
Vice Chairperson Helmberger stated support for continuing the practice.
M/Sandahl, S/Susag ~ reaffirm the practice of focusing the marketing to New Ford
Town and Rich Acres and to direct the Executive Director to work with Ms. Berger regarding
this issue.
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Executive Director Prosser reviewed HRA Letter No. 64 regarding a proposed sale of
the property at 2513 West 70th Street to Variety Homes, Inc. for a Richfield Rediscovered
single family home development.
M/Sandahl, S/Luettinger to close the public hearing.
Motion carried 4-0.
M/Luettinger, S/Sandahl that the following resolution be adopted. that it be s rep ad in
the resolution book and that it be made part of these minutes:
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED
AT 2513 WEST 70TH STREET TO VARIETY HOMES, INC.,
IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT
Motion carried 4-0. This resolution appears as HRA Resolution No. 605 in HRA
Resolution Book No. 5.
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Special HRA Meeting Minutes -4- October 7, 1996
M/Sandahl, S/Susag ~nnrnvp and authorize the execution_of the Subordination
Non-Disturbance and Attomment AarPpmPnt for CSM and Borders. Inc. relating to Phase II
of the Shops at Ly ale.
Murray Komberg, Vice President of CSM, reviewed the status of tenant occupancy of
the Shops at Lyndale.
1. Provide 15 percent deferred loans to homeowners above a $100,000 remodeling
contract.
2. Provide a 10 percent deferred loan for remodeling contracts of $30,000 to $50,000.
3. Provide a grant equal to percent of the purchase/remodel cost when a property
value at project completion will exceed $200,000.
He stated that the staff is only recommending the first two modifications at this time.
He stated that Quam, Sumnicht, and Associates (QSA) had suggested that the proposed
modification number three be deferred for further review.
The HRA expressed a consensus of opposition to the proposed modification number
three.
M/Susag, S/Sandahl to a~,thnri~e the following modifications to the Transformation
Homes Program:
1. pr^~~~~+p 15 percent deferredJoans to homeowners above a $100 000 remodelina
contract.
2. Provide a 10 percent deferred loan for remodeling contracts of $30 000 to $50 000.
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Executive Director Prosser reviewed HRA Letter No. 67 regarding proposed
modifications to the Transformation Homes Program. He discussed the following three
potential program revision:
1
Special HRA Meeting Minutes
-5-
The meeting was adjourned by unanimous
Date Approved: 10/21/96
a
Thomas P. Ferber
City Clerk
October 7, 1996
ion t 6:55 p.m.
,-
homes E. Harms
Chair r~
Jame D. Prosser
utive Director