Loading...
05-18-199811 ~~- ~ ;- ~~ __--~: CALL TO ORDER Regular Meeting May 18, 1998 The meeting was called to order by Chair Harms at 7:00 p.m. 1 ROLL CALL HRA Members Present: Thomas Harms, Joan Helmberger, Kristal Stokes, and Russ Susag. HRA Members Not Present: Michael Sandahl. Staff Present : James D. Prosser, Executive Director; Steve Devich, Acting City Clerk; and Bruce Palmborg, Community Development Director. APPROVAL OF MINUTES M/Susag, S/ Helmberger to approve the minutes of the Regular HRA Meetin4 ofi April 20. 1998, and the minutes of the Special Meeting of April 15. 1998. Motion carried 4-0. Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA. Larry Wozniczka, 6744 Wentworth Avenue, asked if the HRA would discuss the eventual expenditure of about $396,000 for a bridge design for 66th and I-35W. HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota HRA Meeting Minutes -2- May 18, 1998 Executive Director Prosser stated that it would come up at a future meeting. Chair Harms stated that he was not comfortable with discussion of this item tonight without a staff report and public notice. Commissioner Susag briefly described the City Council review of this item. Item #2 CONSIDERATION OF REPORT ON STATUS OF INTERCHANGE WEST-~ REDEVELOPMENT STUDY AREA.. HRA LETTER N~, 2S .. .; = , Executive Director Prosser reviewed HRA Letter No. 29 regarding a status report on the Interchange West Redevelopment Study Area. Nancy Welsh, facilitator, Mediation Center, presented a chronology of the Interchange West process and briefly described it. She stated that currently 70% of those residents south of 76th Street stated that they would prefer redevelopment of the re§6dential area. Mike Triggs, 7639 Penn Avenue, stated that while the first meetings were very emotional the more recent meetings were very civil and informative. Jim Bergin, 7627 Oliver Avenue, stated that while he didn't want to move he felt that he and the rest of his neighbors feel it would be in the best interest of the City that they move. Chair Harms commended the residents for their participation in this process. Commissioner Susag also commended the neighborhood for their efforts in this process. He asked how the development would address the increased traffic. Murray Komberg, CSM Corporation, stated that they are still in the process of dealing with the traffic issues and will include experts to resolve traffic considerations associated with the project. Commissioner Susag stated that one of the biggest concerns is keeping commercial traffic out of the residential areas. He also stated in option B it appears that an additional row of parking is added. Mr. Komberg stated that they were really not at that level of detail at this point. Chair Harms asked what the timing of the process would be. Mr. Komberg responded that a concept design plan was to be presented at the end of their Exclusive Rights Agreement at the June 16, 1998 HRA Meeting. 1 HRA Meeting Minutes -3- May 18, 1998 Tom Mead, 7620 Morgan, stated that he was one of the 30% who do not want to move. He also stated that trafFc problems will be exasperated by the redevelopment project. Lorraine Schreyer, 7615 Morgan Avenue, indicated she was not interested in selling or moving. M/Susag, S/Stokes to direct the staff to work with the developer to present a design plan along the lines of Concept B. Approved 4-0. 1 Chair Harms and Commissioner Helmberger stated that they support the plan because they feel it is in the best interest of the City in the long run. Item #3 CONSIDERATION OF RESOLUTt?N REGARDING APPROVAL OF MODIFICATIC?N TO RICHFIELD REDE1/EL4PMENT PRQJECT AREA REDEVELC3PMENT PLAN; ESTABLISHMENT OF GRAMERCY TAX- INCREMENT FINANCING DISTRICT; AND ADOPTION` OF GRAMERCY TAX INCREMENT F#NANCING PLAN. HRA LETTER NO. 30 Executive Director Prosser reviewed HRA Letter No. 30 regarding consideration of modification to the Richfield Redevelopment Project Area Redevelopment Plan, establishing Gramercy Tax Increment Financing District, and adopting Gramercy Tax Increment Financing Plan. Mike Conlan, President of Gramercy Corporation, described the Limited Equity Co- op Project proposed for the VFW site. He stated that they are now over 50% reserved. Mr. Conlan described the amenities in the project. Chair Harms expressed grave concerns that the project use Tax Increment Financing to buy out-the VFW facility. Mr. Conlan stated that the co-op would own both the tower and the bar/restaurant facility. It would then be leased to the VFW, so the VFW would not be receiving a direct T.I.F. subsidy. Commissioner Susag asked Mr. Conlan to describe the project in Inver Grove Heights and how it compares and contrasts with the project proposed here in Richfield. Mr. Conlan stated that while the limited equity arrangement was similar, the actual projects were really not similar. The Richfield project was a tower of brick and masonry construction, while the Inver Grove Heights project was a three story wood frame structure. HRA Meeting Minutes -4- May 18, 1998 Commissioner Stokes asked about the cost per unit and the need for Tax Increment Financing (T.I.F.). Mr. Conlan stated that the ideal urban location in Richfield and the concrete structural design both contribute to higher costs than wood frame facilities in a rural type location. He stated that without T.I.F. the cost of units would be about 30% greater. Sid Inman, Publicorp/Ehlers, described the project pro forma and "but for" analysis. No T.I.F. is pledged to the VFW, but instead all is placed to FHA mortgage. He also stated that it was a "pay as you go" T.I.F. request. Commissioner Susag stated that the T.I.F. is being used to reduce the purchase price of the units. He asked if there are other projects where T.I.F. is being used similarly. Mr. Inman stated that it is commonly used in most housing projects. Chair Harms asked what the cost of units would be with or without the T.I.F. Mr. Inman responded the Aspen unit will cost $29,000 and the Laurel unit will cost $56,000 without the T.LF. assistance the average unit would be increased by about $12,000. Chair Harms stated that he was having a problem with the "but for analysis". Mr. Conlan responded that prospective residents make a decision to buy into the project based on an analysis of their initial share payment and what they have left from the sale of their residence to use as an investment to help them offset monthly payments. Chair Harms stated that he wanted more data regarding the T.I.F. need. He stated that while he favors the project, he is not satisfied that this is the appropriate level of T.I.F. assistance. Larry Wozniczka, 6744 Wentworth Avenue, asked what is included in the larger T.I.F. area and that parcels in the HUB would be recertified into a new T.I.F. project. Executive Director Prosser and Chair Harms described the additional parcels in the adjacent area which would also be targeted for redevelopment. Mr. Inman stated that upon recertifying the parcels, those parcels will start at a base value as of 1998 as opposed to 1975 when they were originally certified. Thus there will be an increase in the taxes paid to the City, School and County on those parcels. Commissioner Susag asked that a Citizens League Report on T.I.F. be distributed to HRA and City Council members. M/Susag, 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 -5- May 18, 1998 HRA RESOLUTION N0.667 RESOLUTION APPROVING THE MODIFIED REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING THE TAX INCREMENT FINANCING PLAN FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT; REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON; AND RECOMMENDING APPROVAL OF THE PLANS Motion carved 4-0. This resolution appears as HRA Resolution No. 667 in HRA Resolution-Book No. 5. Item #4 CONSIDERATION OF'EXCLUSIYE RIGHTS AGREEMENT WITH RYAN COMPANIES US INC.'FOR'PENN AVENUE AND.66TH STREET.- `REDEVELOPMENT AND TAX INCREMENT FINANCING PRt)JECT AREA (PASSS}, 'HRA ..LETTER NQ. 31 . Executive Director Prosser reviewed HRA Letter No. 31 regarding consideration of Exclusive Rights Agreement with Ryan Companies US, Inc. for Penn Avenue and 66th Street Redevelopment and Tax Increment Financing Project Area (PASSS). Kent Carlson, Ryan Companies, addressed the HRA regarding the proposed redevelopment project. He presented a brief overview of the company and of the types of redevelopment projects they have completed in the past. Chair Harms stated that he felt that the area was ready for redevelopment and offered the developer great potential. Executive Director Prosser stated that the form of the Exclusive Rights Agreement is modeled after those previously approved and used by the HRA. M/Harms, S/Susag to approve the Exclusive Rights Agreement with Ryan Companies US Inc. for Penn Avenue and 66th Street Redevelopment and Tax Increment Financing_Project Area (PASSS). Motion carried 4-0. 4. Item #5 EXECUTIVE DIRECTOR REPORT Executive Director Prosser stated that it is looking more and more like Richfield will get federal funding for 77th Street, Phase 3 and the bridge over 1-494 at Lyndale Avenue. When that happens, the value of property along the 77th Street corridor will go up in value. He stated that is very important to address some of the development issues before the values substantially increase and make any future redevelopment much more costly. HRA Meeting Minutes -6- Item #6 CLAIMS-AND PAYROLL May 18, 1998 M/Helmberger, S/Stokes that the following claims and payrolls be approved: FIRSTAR BANK Sect 8 Checks 12319-12416 $126,153.01 HRA Checks 18760-18776; 18947-18961, 19103-19154 $818,468.13 Motion carved 4-0. ADJQURNMENT The meeting was adjourned by unanimous Date Approved: 6./15/98 L. Devich Acting City Clerk :ons 8:45 p.m. omas E. Harms Chair %~u~.t,cti Jame D. Prosser axe tive Director l