05-19-19971 ~
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
May 19, 1997
-CALL TO ORDER
The meeting was called to order by Acting Chair Helmberger at 7:00 p.m.
ROLL CALL
HRA Members
Present: Joan Helmberger, Acting Chair; Kristal Stokes; Michael Sandahl and
Russ Susag.
HRA Members
Not Present: Thomas Harms.
Staff Present : James Prosser, Executive Director; Steven Devich, Acting City
Clerk; and Bruce Palmborg, Community Development Director.
:APPROVAL OF MINUTES
M/Sandahl, S/Susag to approve the minutes of the regular HRA Meeting of April 21.
1997.
Motion carried 4-0.
Acting Chair Helmberger reported on an award presented to the Richfield HRA by
N.A.H.R.O.
HRA Meeting Minutes
-2-
May 19, 1997
Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA.
No one wished to address the HRA.
Item #2 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING SALE OF 7421 EMERSON AVENUE TO STEVEN MARLIN
GRANT:HOMES AND CONTINUATION OF PUBLIC HEARING ON SALE OF
fifi29 WASHBURN AVENUE TO DIETHELM CONSTRUCTION. HRA
LETTER N0.22
Executive Director Prosser reviewed HRA Letter No. 22 regarding the sale of 7421
Emerson Avenue to Steven Marlin Grant Homes and continuation of the public hearing on
the sale of 6629 Washburn Avenue to Diethelm Construction.
M/Sandahl, S/Susag to close the public hearing.
Motion carried 4-0.
MlSandahl, S/Stokes to continue the public hearing on the sale of 6629 Washburn
Avenue to. Diethelm Construction to June 16 1997 and 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. 627
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
7421 EMERSON AVENUE TO STEVEN MARLIN GRANT HOMES, INC.
IN ACCORDANCE WITH DEVELOPMENT AGREEMENT
Motion carried 4-0. This resolution appears as HRA Resolution No. 627 in HRA
Resolution Book No. 5.
Item #3 .CONSIDERATION OF RESOLUTION APPROVING-AUTHORIZATION OF
CONSENT TO:AMENDMENTS RELATED TO CSM SHOPS' AT LYNDALE,
::PHASE II. HRA'LETTER. NO: 23.
Executive Director Prosser reviewed HRA Letter No.23 regarding authorization of
consent to amendments related to CSM Shops at Lyndale, Phase II.
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HRA Meeting Minutes -3- May 19, 1997
Murray Kornberg, CSM pointed out a correction to a figure contained in the
proposed consent to amendments by saying that the maximum amount of the Lender
Loan would increase from $10,000,000 to 12,500,000 not to $12,000,000 as appears in
the consent.
M/Susag, S/Sandahl 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. 628
RESOLUTION AUTHORIZING CONSENT TO AMENDMENTS TO LOAN DOCUMENTS
Motion carried 4-0. This resolution appears as HRA Resolution No. 628 in HRA
Resolution Book No. 5.
Item #4 CONSIDERATION OF REDEVELOPMENT`PROPOSALFQR 7600 BLOCK
OF `LYNDALE AVENUE. HRA LETTER NO.24
Executive Director Prosser reviewed HRA Letter No. 24 regarding a redevelopment
proposal for the 7600 block of Lyndale Avenue.
Chris Moarn and John Laurent, Laurent-Parks Development, made a presentation
to the HRA regarding the redevelopment of the 7600 block of Lyndale Avenue. The
developer reviewed past projects in Wayzata as well as the plan for commercial and
housing redevelopment on the 7600 Lyndale site. The housing component would include
apartments that would be market rate, located three or four stories high above the ground
floor retail area.
The developers answered questions of the HRA and audience regarding the
proposed project.
Executive Director Prosser stated that one important issue with the proposal is the
gap between the tax increment present value and the development costs.
Sid Inman, Ehlers & Associates contrasted the gap reflected in this proposal and
the one generated by the Hoisington proposal.
M/Sandahl, S/Stokes to accept the redevelopment proposal report presented by
Laurent-Parks Development and to continue evaluating this redevelopment proposal for
the 7600 block of Lyndale Avenue.
Motion carried 4-0.
HRA Meeting Minutes -4- May 19, 1997
Item #5 C.ONSIDERATtON OF'REQUEST FOR EXCLUSIVE:: DEVELOPMENT '-
RIGHTS AGREEMENT VK/ITH C3M, INC. ' HRA LETTER NO: 25
Executive Director Prosser reviewed HRA Letter No. 25 regarding a request for
exclusive development rights agreement with CSM, Inc.
Commissioner Susag asked if this exclusive rights agreement would be similar to
the TOLD Agreement for the Cloverleaf site.
Executive Director Prosser stated that it was, but less limiting to the HRA.
Commissioner Sandahl stated concerns regarding the extent of the exclusive rights
verses benefit to the HIZ4. He also asked about the time frame for the agreement
expressing reservation about any agreement which would be for greater than two years.
Executive Director Prosser responded by detailing the review costs for a
development plan which would be paid by CSM. Mr. Pr®sser stated that the costs might
be between $10,000 - $20,000. The exclusive rights request is fairly common and is
typically used to prevent another developer from coming in after the initial developer has
expended hundreds of thousands of dollars of upfront costs. Mr. Prosser also described
the decision points in the process.
Commissioner Susag stated that what was being asked of the HRA this evening
was to give authority to the staff to develop an agreement to be brought back to the HRA
for consideration. .
Murray Kornberg, CSM, addressed the issue of the timeframe of the proposed
project area. Mr. Kornberg suggested that CSM might spend between $125,000 to
$250,000 if the City increased $25,000 in review costs. The timeframe may be in the
range of 2 years and would be subject to a number of decision points.
Larry Wozniczka, 6744 Wentworth Avenue, stated concern about wanting to see a
proposed T.I.F. plan that did not require full tax increment financing assistance and traffic
issues.
Executive Director Prosser stated that traffic and neighborhood compatibility issues
would be reviewed by the Planning Commission in the future once some detail is known.
Mr. Prosser also stated that an exclusive rights agreement would look at development
areas in larger pieces instead of piece meal development.
Commissioner Susag suggested that the Executive Director bring this issue to the
Planning Commission.
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Executive Director Prosser stated that he would talk to the Chair of the Planning
Commission regarding their preference in this matter.
HRA Meeting Minutes -5- May 19, 1997
Commissioner Sandahl stated that while he will vote for this motion, he still has
great concern about the exclusive rights and what the HRA is giving up. He stated that he
may not support it in the future.
M/Susag, S/Helmberger to direct staff to negotiate an exclusive development rights
agreement with CSM Incorporated for the redevelopment of the area lying north of 1-494,
south of 76th Street, east of Penn Avenue, and west of Knox Avenue. known as the
Interchange West area and return to the HRA the proposed document and to direct the
developer to host an informational meeting for residential and commercial owners and
renters in the area.
Motion carried 4-0.
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Item #6 STATUS 'REPORT ON MARKETING AND COMMUNICATION ACTIVITIES
FOR 1.997.. HRA LETTER NO.26
Executive Director Prosser reviewed HRA Letter No. 26 regarding a status report
on marketing and communication activities for 1997.
The HRA received and accepted the report on marketing and communication.
Item #7 CONSIDERATION OF RESOLUTION AUTHORIZING EMINENT DOMAIN
PROCEEDINGS TO ACQUIRE PROPERTY LOCATED AT 515 WEST-64TH
STREET FOR INCLUSION FN RICHFIELD REDISCOVERED PROGRAM.
HRA LETTER NO. 27
Executive Director Prosser reviewed HRA Letter No. 27 regarding eminent domain
proceedings to acquire property located at 515 West 64th Street for inclusion in Richfield
Rediscovered Program.
There was general discussion regarding the condition and specific location of the
property.
Larry Wozniczka, 6744 Wentworth Avenue, asked if the HRA has the authority for
eminent domain and a need for a public hearing.
Executive Director Prosser responded that the HRA has authority for eminent
domain and no public hearing is required.
M/Susag, S/Sandahl that the following HRA resolution be adopted, that it be spread
in the HRA resolution book and that it be made Bart of these minutes:
HRA Meeting Minutes -6- May 19, 1997
HRA RESOLUTION NO. 629
RESOLUTION AUTHORIZING EMINENT DOMAIN
PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTY
LOCATED AT 515 WEST 64TH STREET
Motion carried 4-0. This resolution appears as HRA Resolution No. 629 in HRA
Resolution Book No. 5.
Item #8 CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7fi15
'NICOLLET AVENUE AND 651.2 BLOOMINGTON AVENUE UNDER
..RICHFIELD REDISCOVERED PROGRAM. HRA LETTER NO. Z8
Executive Director Prosser reviewed HRA Letter No. 28 regarding the purchase of
7615 Rlicollet Avenue and 6512 Bloomington Avenue under Richfield Rediscovered
Program.
Commissioner Susag asked the zoning status of 7615 Nicollet and how the
properties come to us.
Community Development Director Palmborg responded that the zoning district is
Single Family Residential "R" and that the sellers are all willing participants in the program.
M/Susag, S/Stokes 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. 630
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED
AT 7615 NICOLLET AVENUE AND 6512 BLOOMINGTON AVENUE
FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carried 4-0. This resolution appears as HRA Resolution No. 630 in HRA
Resolution Book No. 5.
Item #9 CONSIDERATION OF RESOLUTION ESTABLISHING JUST
COMPENSATION AND AUTHORIZING PURCHASE OF: 609 EAST 66TH
STREET; A.K.A. HAT TRICK HOCKEY. HRA LETTER N0.29
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HRA Meeting Minutes -7- May 19, 1997
Executive Director Prosser reviewed HRA Letter No. 29 regarding just
compensation and authorizing purchase of 609 East 66th Street, a.k.a. Hat Trick Hockey.
Executive Director Prosser emphasized that this is an opportunity only, if the HRA
would like to pursue it.
Community Development Director Palmborg stated that the property is currently
zoned commercial, but that if it was acquired by the HRA it would be evaluated from a
housing perspective.
M/Sandahl, S/Stokes 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. 631
RESOLUTION AUTHORIZING ACQUISITION OF REAL PROPERTY
LOCATED AT 609 EAST 66TH STREET
AKA HAT TRICK HOCKEY
Motion carried 4-0. This resolution appears as HRA Resolution No. -631 in HRA
Resolution Book No. 5.
Item #10 CONSIDERATION OF RESOLUTION ESTABLISHING JUST
COMPENSATION AND AUTHORIZING PURCHASE OF 7200-AND 7214
CEDAR AVENUE; VACANT LOT AND COMMERCIAL STORAGE
BUILDING. HRA LETTER N0.30
Executive Director Prosser reviewed HRA Letter No. 30 regarding just
compensation and authorizing the purchase of 7200 and 7214 Cedar Avenue; a vacant lot
and commercial storage building.
Commissioner Sandahl stated that he felt that we should acquire these properties
as they become available.
Larry Wozniczka, 6744 Wentworth Avenue, asked why we were buying- the property
for about $8.00 per square foot.
Executive Director Prosser stated that the value was based on the City's appraisal
of the property.
M/Sandahl, S/Helmberger 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 Meeting Minutes -8- May 19, 1997
HRA RESOLUTION NO. 632
RESOLUTION AUTHORIZING ACQUISITION OF REAL PROPERTY
LOCATED AT 7200 AND 7214 CEDAR AVENUE
Motion carried 4-0. This resolution appears as HRA Resolution No. 632 in HRA
Resolution Book No. 5.
Item #11 EXECUTIVE DIRECTt~R REPORT:
Executive Director Prosser reported on the items contained on HRA Memo No. 10:
1. Status of Lyndale Garden Center
2. Status of Co-op Housing
3. East 66th Street Redevelopment
4. American Legion/VFW Facility
The Executive Director and the HRA Commissioners had a general discussion
regarding what elements were important in the exclusive rights agreement with CSM for
their requested project area.
Larry Wozniczka, 6744 Wentworth Avenue, stated CSM was given exclusive rights
for the commercial development of the Richfield Lake Area. Mr. Wozniczka asked what
the status was for this proposed project.
Executive Director Prosser responded that CSM is a co-developer of the area, but
CSM has not been that involved in this preliminary phase of the proposed project.
Item #12 CLAIMS AND'PAYROLL
M/Sandahl, S/Susag that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks (4/21, 5/19): 10568-10790 $ 280,452.87
HRA Checks: 17859-17896; 18189-18269 $1,074,820.90
Motion carried 4-0.
HRA Meeting Minutes -9- May 19, 1997
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:57 p.m.
Date Approved: 6/16/97
Steven L. Devich
Acting City Clerk
omas E. Harms
Chair
a es D. rosser
E cutive Director