02-18-1997
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
February 18, 1997
The meeting was called to order by Chair Harms at 7:00 p.m.
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HRA Members
Present: Thomas Harms; Joan Helmberger; Kristal Stokes; Michael Sandahl
and Russ Susag.
Staff Present : James Prosser, Executive Director; Steven Devich, Administrative
Services Director/Acting City Clerk; Bruce Palmborg, Community
Development Director; and John Dean, City Attorney.
M/Susag, S/Helmberger to approve the minutes of the Regular HRA Meetina of
January 21 1997 and the minutes of the Special HRA Meeting of Februarv 3. 1997.
Motion carried 5-0.
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No one wished to address the HRA.
HRA Meeting Minutes -2- February 18. 1997
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Executive Director Prosser reviewed HRA Letter No. 6 regarding acceptance of a
report on senior housing needs entitled "Senior Housing Market Analysis and Demand
Estimates for Richfield, Minnesota."
Commissioner Susag inquired about the distribution of the report.
Executive Director Prosser responded that the primary purpose of the report was
for the HRA, City Council, City staff, and developers. He stated the information will be
beneficial in attracting appropriate sized and designed senior housing. He stated the
development of senior housing would be cooperative work involving transportation,
programming services, recreational services, and public safety resources.
The HRA accepted the report entitled "Senior Housing Market Analysis and
Demand Estimates for Richfield, Minnesota" to be utilized as a guideline for considering
future senior housing needs and opportunities in the City of Richfield.
Executive Airector Prosser stated this report could also be distributed to the
Community Council, the Community Center, and the library.
Executive Director Prosser reviewed HRA Letter No. 7 regarding consideration of a
resolution authorizing purchase of 6320-15th Avenue and 6921-12th Avenue under the
New Home Program and Richfield Rediscovered, respectively.
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 NO 620
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTIES LOCATED AT
6320-15TH AVENUE AND 6921-12TH AVENUE FOR THE NEW HOME PROGRAM
AND THE RICHFIELD REDISCOVERED PROGRAM RESPECTIVELY
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HRA Meeting Minutes -3- February 18, 1997
Motion carried 5-0. This resolution appears as HRA Resolution No. 620 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 8 regarding consideration of a
resolution authorizing issuance of completion certificates to Steven Marlin Grant Homes,
Inc. for 6824 Queen Avenue and 6621 Girard Avenue; to Variety Homes, Inc. for 2513
West 70th Street; to Timothy S. Crombie Construction for 2916 West 71-1/2 Street; and to
Sussell Corporation for 7344 Bryant Avenue.
Chair Harms asked if there were any complaints from the neighbors.
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Executive Director Prosser responded that there were no such complaints.
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 NO. 621
RESOLUTION AUTHORIZING THE ISSUANCE OF COMPLETION CERTIFICATES
FOR RICHFIELD REDISCOVERED PROPERTIES AT 6824 QUEEN AVENUE,
6621 GIRARD AVENUE, 2513 W. 70TH STREET, 2916 W. 71 1/2 STREET
AND 7344 BRYANT AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 621 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 9 regarding consideration of a
resolution approving the Hennepin County HRA as a lender for Minnesota Housing
Finance Agency home improvement loan programs.
HRA Meeting Minutes
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Februar~~ 18, 1997
M/Helmberger, 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 NO. 622
RESOLUTION AUTHORIZING THE HENNEPIN COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY TO ADMINISTER MHFA HOME IMPROVEMENT
LOAN PROGRAMS IN THE CITY OF RICHFIELD
Motion carried 5-0. This resolution appears as HRA Resolution No. 622 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 10 regarding consideration of
a Right of Entry Agreement between TOLD Development and the Richfield Housing and
Redevelopment Authority.
Ralph Robinson, President of TOLD, stated although closing will take place mid
March, he is requesting early access to allow opportunity for grading and utility work on
Phase I of Meridian Crossings. He stated the anchor tenant requires access to the
building by January 1, 1998. Mr. Robinson indicated the Right of Entry Agreement would
allow TOLD to be immediately responsive to the anchor tenant. He stated Phase I will
consist of a 8-10 story office building with 184,000 square feet and together with Phase II
would total 410,000 square feet. He indicated with assurance from a Letter of Credit as
required by the agreement, TOLD has no expectation of recovery for excavation work.
Commissioner Sandahl asked if a restaurant was planned in the facility.
Mr. Robinson responded that plans were for a restaurant to be linked between
buildings occurring during the course of construction in Phase I. He also indicated plans
for a convenient store and dry cleaning store.
Commissioner Sandahl asked if the HRA was covered financially by the letter of
credit.
Mr. Inman responded that it was.
Chair Harms asked what the cost was per square foot.
Mr. Robinson responded the cost was $14 - $14.50 per square foot.
Chair Harms asked if this agreement modifies the original agreement with TOLD.
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_ HRA Meeting Minutes -5- Februan• t S. 1997
City Attorney Dean stated that it did not.
City Attorney Dean reviewed a memorandum regarding the Letter of Credit. He
stated the memorandum listed various cost factors with a total amount of $495,293.00
M/Susag, S/Stokes to authorize execution of the Right of Entrv Agreement between
TOLD Developlrtent and the Richfield Housing and Redevelopment Authority with the
following stipulation:
1. That TOLD Devela~ment will,•provide a Letter of Credit for 495 293 00 to cover
actual cost of site work legal and staff time seeding and fill for Phase I loss of
value of Phase I property because of tree removal and building code cost
review.
Motion carried 5-0.
Executive Director Prosser reviewed HRA Letter No. 11 regarding consideration of
a progress report for the joint use VFW and American Legion facility. He stated combining
the American Legion and VFW to a new site would leave space for housing replacement.
He indicated the need for identifying the needs of both organizations and to come up with
a new report with options included.
Financial Consultant Sid Inman reviewed the potential financing options. He stated
the two options include a private financing approach and a public approach. He indicated
the private loan would have a 15% return on equity and would be responsible for all
equipment needed. Mr. Inman stated the public loan would be 100% financed and include
four profit centers equally. He stated the upper floor would be a private banquet facility
with kitchen while the lower level would be part bar/restaurant and include the American
Legion and VFW.
Executive Director Prosser discussed finding a private investor and whether it
would drive up costs and hurt financing advantages. He indicated that having a newer
facility for the American Legion and VFW would attract more membership and that both
organizations are looking to resolve this. issue. Mr. Prosser stated that it only makes
sense to proceed with this to make the current VFW and American Legion sites available
for replacement housing.
Chair Harms recommended the project be done in two phases. He stated Phase I
be the banquet facility and Phase II be the VFW and American Legion. He indicated the
need for a preliminary survey of people who would use the banquet facility, such as civic
organizations, and to solicit Request For Proposals (RFP's) from potential banquet facility
operators. Mr. Harms suggested Mr. Inman, City staff, and City Attorney Dean work
HRA Meeting Minutes -6- February 18, 1997
together on a letter of proposal for the VFW and American Legion showing assessment of
economics, and allow for the VFW/American Legion portiors of the project could be
reduced if needed in the future to expand other more profitable portions of the project.
Commissioner Sandahl requested the kitchen be commercial grade and that there
be ability to bring in a caterer.
Chair Harms recommended a lease for American Legion and VFW for their part of
the building, and that it was important that neither the VFW or American Legion manage
the banquet facility.
Executive Director Prosser recommended seeking proposals on both basis, with an
exclusive catering operator and with the facilities open to any caterer.
Commissioner Susag recommended getting all of the potential events on a list.
Chair Harms stated that the facility must have a high quality ventilation system.
Commissioner Susag asked if this will be a taxable operation.
Executive Director Prosser responded this operation will be leased to the public
therefore it becomes taxable.
Commissioner Helmberger asked about the base for tax increment.
Mr. Inman answered the base market value of the lumber yard is in its present
condition and that buying from the City would set the market value price.
Commissioner Harms indicated the need for a letter of intent with a list of
information for making a presentation to the VFW/American Legion.
The HRA directed staff to proceed with the project in the two phase format outlined
by Chair Harms with an exclusive and non-exclusive caterer option.
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Executive Director Prosser reviewed HRA Letter No. 12 regarding consideration of
liquidation and dissolution of Corporations C, F, and H nonprofit housing corporations.
M/Sandahl, S/Susag that each of the three corporations C F and H authorize
execution of the following documents:
HRA Meeting Minutes -7- February 18, 1997
1. Notice of Intent to Dissolve by the Executive Director;
2. Articles of Dissolution of each corporation ley the Executive Director;
3. Corporation dissolution resolutions for each corporation by the Board of
Directors and authorized HRA representative.
Motion carried 5-0.
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Community Development Director Palmborg indicated there was an interest by
Minnesota Valley School of Music for the Fina Gas Station vacant parcel site. He stated
they will pay appraised value and put up the building. He indicated there was an
understanding with the HRA to try to market this site to Richfield Florists which cannot look
at the site until mid March.
It was the consensus of the HRA to proceed with the discussions with Minnesota
Valley School of Music for the Fina Gas Station vacant parcel site.
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M/Sandahl, S/Helmberger that the following claims and payrolls be ap rp Quad:
FIRSTAR BANK
Section 8: 10343-10449 $ 134,801.03
HRA 17821-17833; 18094-18144 $ 247,776.69
Motion carried 5-0.
The meeting was adjourned by unanimous co at 8:00 p.
Date Approved: 3/17/97
Thomas E. Har s
Chair
,,~vt
even L. Devich ' Ja s D. Prosser
Acting City Clerk Executive Director