10-20-1997~-=~- HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
~ Richfield, Minnesota
Regular Meeting
October 20, 1997
1
The meeting was called to order by Chair Pro Tempore Helmberger at 7:00 p.m.
I-IRA Members
Present: Joan Helmberger; ICristal Stokes; Michael Sandahl and Russ Susag.
HR~4 Members
Not Present: Thomas Harms.
Staff Present : James Prosser, Executive Director; Thomas Ferber, City Clerk; and
Bruce Palmborg, Community Development Director.
M/Sandahl, S/Stokes to approve the minutes of the regular HRA Meeting of
September 15, 1997.
Motion carried 4-0.
HRA Meeting Minutes
No one wished to address the HRA.
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October 20, 1997
Executive Director Prosser reviewed HRA Letter No. 57 regarding the proposed
redevelopment of the 7600 block of Lyndale Avenue.
Gary Tushie, Tushie Montgomery Associates Inc., representing the Main Street
Shops Partners, presented a status report on their proposal indicating the following:
• DataSource/Hagen will raot be a tenant in the office building due to their inability
to extend their current lease beyond March 31, 1998. Therefore, it was mutually
agreed that the building could not be available in time for DataSource/Hagen.
• Based upon this, the partners are pursuing an alternative plan for the East
Building, which would remain retail at the first level and a medical office space
above.
• The partners are reviewing proposals for the services of a developer/partner.
• Proposals have been received from appraisers. Once property values have
been determined, the partners plan to approach property owners about signing
purchase agreements.
Commissioner Helmberger asked about the rating of the proposed office space.
Mr. Tushie stated it would be considered "A" level office space.
M/Sandahl, S/Susag to direct staff to continue working with the Main Street Shops
Partners for three more months in an effort to refine their development plan and negotiate
a redevelopment agreement.
Motion carried 4-0.
Executive Director Prosser reviewed HRA Letter No. 58 regarding the status of a
request by Richfield Floral and Nursery to waive certain development requirements and to
defer payment of the sale price of 817 East 66th Street.
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HRA Meeting Minutes -3- October 20, 1997
Nancy Griemann, representing Richfield Floral and Nursery, stated that they are
proceeding ahead by seeking new bids and financing options. She stated Richfield Floral
and Nursery would be ready to make a presentation to the HRA in December.
M/Sandahl, S/Stokes to direct staff to continue to work with Richfield Floral and
Nursery on a payment deferral~lan along with other possible plan modifications, and to
present to the HRA in the form of a specific request no later than the December 15, 1997
HRA meeting.
Motion carried 4-0.
Executive Director Prosser reviewed HRA Letter No. 59 regarding the proposed
purchase of the properties located at 6820 Portland Avenue and 7025 Nicollet Avenue
under the Richfield Rediscovered Program.
M/Susag, S/Stokes that the following resolution be adopted, that it be spread in the
resolution book and that it be made part of these minutes: ...
RESOLUTION N0.644
RESOLUTION AUTHORISING PURCHASE OF REAL PROPERTY
LOCATED AT 6820 PORTLAND AND 7025 NICOLLET AVENUES
FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carried 4-0. This resolution appears as Resolution No. 644 in Resolution
Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 60 regarding the proposed
sale of new house and property located at 6432-15th Avenue.
M/Sandahl, S/Susag to close the public hearing.
Motion carried 4-0.
HRA Meeting Minutes -4- October 20, 1997
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. 645
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
6432-15TH AVENUE SOUTH
Motion carried 4-0. This resolution appears as HRA Resolution No. 645 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 61 regarding a request by
Meridian Properties Real Estate Development LLC (TOLD Development Company) to
allow certain construction activity on the Phase II property and reduce the amount of its
Letter of Credit by $89,626 for the Meridian Crossings Office Project.
Ralph Robinson, President of TOLD Development Company, summarized the
current outstanding costs of the Phase II construction activity that may be potential liens
against the Phase II property and the proposed reduction of the Letter of Credit by
$89,626. Mr. Robinson gave a brief status report on the construction progress and tenant
leasing for the Meridian Crossings Office Project. He stated the first tenant occupancy in
Phase I is expected to be March 1, 1998. He stated that the land sale closing for Phase I I
is anticipated in approximately 30 days. He stated that TOLD is requesting that they be
allowed to commence work on the footings and foundation work for the Phase II eight-
story office building prior to the land sale closing in order to assure a November 1, 1998
tenant occupancy. Mr. Robinson described the design changes to the Phase II parking
ramp which reduced the footprint and height of the structure allowing for more of the
mature trees to also remain on the site.
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. 646
RESOLUTION AUTHORIZING EARLY CONSTRUCTION ACTIVITY
FOR PHASE II PROPERTY AND A
$89,626 REDUCTION IN LETTER OF CREDIT,
MERIDIAN CROSSINGS PROJECT
HRA Meeting Minutes -5- October 20, 1997
Motion carried 4-0. This resolution appears as HRA Resolution No. 646 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed status of the following issues:
1
• Richfield Lake Area Project (REAP)
The planning process is continuing with a community meeting on the draft plan
scheduled for November 5. A revised parkway concept was included in the
report sent to the Richfield Lake area. The parkway has been rerouted in a way
that should satisfy the concerns of many in the single family areas that are
adjacent to 66th Street and Lyndale Avenue businesses. Staff has met with
MnDOT and the Lyndale Garden Center to evaluate structured parking options
on the site to allow the Garden Center to remain at this location. Mr. Prosser
stated that a decision will have to be made as to the affordability of a parking
structure and the relative desirability of keeping the Garden Center on this site
or redevelopment to provide replacement housing options.
• VFW Site Redevelopment
Gramercy Corporation, the group that is proposing to build a new cooperative
senior housing project on the VFW site, is moving ahead with the development
of detailed plans for the project. They also will begin their initial marketing
efforts very soon. The concept calls for 220-250 housing units with under-
structure parking along Lakeshore Drive, plus a new VFW building which would
front onto both Lakeshore Drive and Lyndale Avenue. Staff has received
numerous inquiries from Richfield residents wanting to get their names on a
waiting list. Tax Increment Financing assistance will be necessary for this
project due to maximizing the density and the parking structure. Staff has
suggested that the developer look at a compatible development for the three
lots to the west. Discussions have also been conducted to involve the Trestman
and Lyndale Hardware properties in evaluating development options.
• American Legion Site
The American Legion is in the process of redecorating their facility. For
example, the auditorium will be repainted and the floors sanded. They have no
plans for significant improvements. They have inquired about finding another
potential developer for the site.
• Interchange West
City staff and CSM have agreed to use the Mediation Center to facilitate the
public process aspect of this project. Several people from the area have been
contacted by the Mediation Center to discuss what they see as important issues
to be included in the public. process and to discuss how best to involve the
residents. A public process outline is now being developed based on those
discussions. The developer is looking at the options of commercial
HRA Meeting Minutes -6- October 20, 1997
redevelopment and residential redevelopment to the north with a buffer. Mr.
Prosser stated there is strong market interest in the Wally McCarthy's
Oldsmobile site but potential developers find the adjacency to Walser car
dealerships as a drawback. It would be beneficial if that area was also
redeveloped for a different use. He stated timing could be an issue since the
market is strong right now.
• Cedar Avenue/CDP Building
There is some market interest in redevelopment opportunities on Cedar Avenue.
A new tenant has not been attained yet to occupy the CDP building, although
several inquiries have been made including DataSource/Hagen.
• Chicago Avenue Shopping Center
Community Development Director Palmborg inquired as to the HRA's interest in
providing some type of assistance for exterior upgrading for the center. The
HRA indicated no interest in this idea.
• Lampert Site
Several developers are interested in purchasing this site.
M/Sandahl, S/Susag that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks: 11477-11588 $138,681.40
HRA Checks: 18504-18677 $294,450..27
Motion carried 4-0.
The meeting was adjourned by unanimous consent at 7:50 p.m.
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Date Approved: ii/l~/9~ ~ ;~
r,~oan Helmberger
hair Pr ore
,~
Thomas P. Ferber Jam s D. tosser
City Clerk ~cutive Director