03-16-1998
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
~ - Richfield, Minnesota
Regular Meeting
March 16, 1998
The meeting was called to order by Chair Harms at 8:00 p.m.
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HRA Members
Present: Thomas Harms, Joan Helmberger, Michael Sandahl, Kristal Stokes
and Russ Susag.
Staff Present : James D. 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
February 17, 1998.
Motion carried 5-0.
Susan Rosenberg, 6633 Thomas Avenue, acknowledged Chair Harms for the
thorough letter to the editor explaining tax increment financing. She stated concerns
about the empty storefronts on Penn Avenue and the potential that a pawn shop business
may be looking at locating in the old Color Tile location. She requested that the HRA look
at action regarding this area.
HRA Meeting Minutes -2- March 16, 1998
Executive Director Prosser stated that Community Development Director Palmborg
has been in contact with the property owner regarding possible redevelopment or
cooperative effort to address improving the area. He stated that the new zoning ordinance
related to pawn shop businesses would make it difficult to locate there.
Chair Harms stated the HRA's interest in seeing the Penn Avenue area
redeveloped and encouraged staffs continued efforts in that direction.
Tom Burke, TOLD Development Company, stated that TOLD is ready to proceed to
closing on Friday for Phase II of the Meridian Crossings office development project. He
requested special consideration of the HRA to approve the following three legal
documents required for the closing:
• Consent to Assignment, Estoppel and Agreement
• Assignment and Assumption Agreement
• Amendment to Right of Entry Agreement
He indicated that they were documents similar to those that were required at the
closing for Phase I.
Chair Harms stated that he had concerns about approving these agreements
because the HRA had not been given them ahead of time to review. He indicated
displeasure with TOLD for not bringing this to the HRA in a more timely manner.
Executive Director Prosser suggested that the HRA could consider approval
contingent upon the review and approval of HRA Attorney John Dean.
M/Sandahl, S/Susag to approve and to authorize the HRA Chair and HRA
Executive Director to execute the following documents regarding Phase 11 of the Meridian
Crossings project:
• Consent to Assignment, Estoppel and Agreement
• Assignment and Assumption Agreement
• Amendment to Right of Entry Agreement
Subject to the following stipulation:
1. That HRA Attorney John Dean review the agreements and notify the HRA that
they are acceptable for the HRA, that they are substantially similar to the
documents which were prepared in connection with the Phase I closing, and
that they do not have a negative impact on the HRA or the Citv.
2. That HRA Attorney John Dean recommends that the HRA Chair and Executive
Director execute the agreements.
Motion carried 5-0.
Commissioner Sandahl stated dissatisfaction with the fact that TOLD did not
present their request in a more timely manner.
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HRA Meeting Minutes
-3-
March 16, 1998
-Chair Harms stated he would not sign the agreement unless all the HRA Members
were satisfied upon receipt of the HRA Attorney's review and recommendation. He
requested the Commissioners to call him if they had any concerns or questions.
Executive Director Prosser reviewed HRA Letter No. 16 regarding the proposed
sale of 6820 Portland Avenue to Twin Cities Habitat for Humanity for a single family home
development.
Larry Wozniczka, 6744 Wentworth Avenue, questioned the source of write down,
funding for the project, and what the purchase cost was for the HRA to acquire the
property.
Executive Director Prosser stated the purchase price was $55,000 and that the
HRA is responsible for demolition. He stated the funding is from the Richfield
Rediscovered Program.
Mr. Wozniczka questioned the $20,000 second mortgage.
Chair Harms explained that the buyer must execute a $20,000 second mortgage to
the HRA to secure the land value.
Commissioner Susag noted that previous Habitat for Humanity projects had been
constructed in the community through this same program.
M/Sandahl, S/Harms to close the public hearing.
Motion carried 5-0.
M/Sandahl, S/Susag that the following resolution be adopted. that it be spread in
the resolution book and that it be made part of these minutes:
HRA RESOLUTION NO. 660
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
6820 PORTLAND AVENUE TO TWIN CITIES HABITAT FOR HUMANITY IN
ACCORDANCE WITH A DEVELOPMENT AGREEMENT
Motion carried 5-0. This resolution appears as HRA Resolution No. 660 in HRA
Resolution Book No. 5.
HRA Meeting Minutes -4- March 16, 1998
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Executive Director Prosser reviewed HRA Letter No. 17 regarding the proposed
sale of the property located at 250 West 78th Street to Candlewood Hotel Company. He
stated that as part of its development of the adjacent City owned, former Lampert Lumber
property, Candlewood Hotel Co. will subsequently purchase approximately two-thirds of
the CP railroad property from the HRA. He stated the HRA will retain the remainder of the
CP property which will then be combined with that portion of the former Lampert property
which is not being purchased by Candlewood. He indicated the new parcel is being
marketed to the restaurant industry. He described the current site plan along with a
graphic representing the progression of site configurations.
Larry Wozniczka, 6744 Wentworth Avenue, stated concerns about the change in
the site configuration and possible reduced revenue from the sale of the property.
E~eecutive Director Prosser reviewed the issues regarding tl~e preferred site
configuration and potential for a restaurant development. He indicated that the HRA
would control the site and what may go there, which is a trade off for the risk of achieving
or not achieving the same revenue.
Mr. Wozniczka questioned the hotel site access.
Executive Director Prosser stated shared parking and access agreements are
required as part of the sale for both properties.
Mr. Wozniczka stated his opinion that he would have preferred the land be kept as
one parcel and sold as originally proposed.
M/Sandahl, S/Helmberger to close the public hearing.
Motion carried 5-0.
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 N0.661
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY AT
250 WEST 78TH STREET
Motion carried 5-0. This resolution appears as HRA Resolution No. 661 in HRA
Resolution Book No. 5.
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Executive Director Prosser reviewed HRA Letter No. 18 regarding the proposed
purchase by the HRA of property located at 300 West 78th Street from the City of
Richfield. He stated that the purchase of the subject property and the subsequent joining
of that property with the adjacent CP railroad property will result in the creation of a
marketable commercial development site.
M/Sandahl, S/Helmberger to close the public hearing.
Motion carried 5-0.
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. 662
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RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT
300 WEST 78TH STREET IN THE
ILN REDEVELOPMENT PROJECT AREA
Motion carried 5-0. This resolution appears as HRA Resolution No. 662 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No.19 proposing that the
Remodeling Advisor's hourly rate for services be increased from $35 per hour to $40 per
hour in 1998. He stated that the rate had last been adjusted two years ago.
Commissioner Helmberger asked if these services are available for apartment
properties.
Community Development Director Palmborg stated that a proposal regarding
apartments is scheduled for consideration by the HRA in April.
Chair Harms asked about the evaluation of the Remodeling Advisor.
Community Development Director Palmborg summarized the HRA Memorandum
regarding the evaluation of the Remodeling Advisor services.
HRA Meeting Minutes -5- March 16, 1998
HRA Meeting Minutes -6- March 16, 1998
Lany Wozniczka questioned the funding source for the Remodeling Advisor
services.
Community Development Director Palmborg stated it was funded from the HRA
general fund.
M/Sandahl, S/Helmberger to approve the increase in compensation for Remodelinq
Advisor services making the new rate $40 per hour.
Motion carved 5-0.
Executive Director Prosser reviewed HRA Letter i~lo. 20 regarding the proposed
purchase of 6241-14th Avenue with CDBG funds for the New Home Program; and 6224
Bloomington Avenue and 7204 First Avenue under the Richfield Rediscovered Program.
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. 663
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6241-14TH AVENUE FOR THE NEW HOME PROGRAM, AND
6224 BLOOMINGTON AND 7204 FIRST AVENUES
FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carried 5-0. This resolution appears as HRA Resolution No. 663 in HRA
Resolution Book No. 5.
tem #7
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The HRA had no further questions regarding the Executive Director's report
memorandum.
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HRA Meeting Minutes -7- March 16, 1998
The claims and payroll reports were not available for review, therefore the HRA did
not take action on.this item.
The meeting was adjourned by unanimous cons at 8:40 p.m.
Date Approved: 4/20/98
omas E. Harms
Chair
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Thomas P. Ferber
City Clerk
Jam D. Prosser
utive Director