06-15-1998
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Regular Meeting
June 15, 1998
The meeting was reconvened by Chair Pro Tempore Helmberger at 7:59 p.m.
1
HRA Members
Present:
hIRA Members
Not Present:
Joan Helmberger, Kristal Stokes, and Russ Susag.
Thomas Harms and Michael Sandahl.
Staff Present : James D. Prosser, Executive Director; Steve Devich, Acting City
Clerk; Bruce Nordquist, Housing & Redevelopment Manager; and
John Melin, Community Development Manager.
M/Susag, S/ Stokes to approve the minutes of the Regular HRA Meeting of May 18,
1998.
Motion carried 3-0.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
No one wished to address the HRA.
HRA Meeting Minutes -2- June 15, 1998
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Executive Director Prosser reviewed HRA Letter No. 33 regarding consideration of
a report from CSM on the status of the Interchange West feasibility study and
authorization to formulate a developer's agreement.
Murray Kornberg, CSM, addressed the HRA regarding the status of the proposed
Interchange West development.
Gary Tushie, Tushie-Montgomery Architects, described a plan drawing of the
proposed project. The plan included proposed office buildings, a seven story hotel with
convention center, restaurants, residential development, open spaces, a water feature and
trails.
Mr. Tushie presented an elevation plan of an office building which would be in the
vicinity of the 77th Street area.
Mr. Kornberg added that the plan provides for very limited access to 76th Street.
Mr. Kornberg stated that if the project is approved, CSM would work to ensure that the
residents and businesses would be treated fairly. He stated that there have been
substantial talks with the auto dealers, although no agreements are in place with any of
them or any business at this time. Mr. Kornberg stated that he felt that tonight's action
was the first step in the next phase of this project and that there would still be plenty of
opportunities for business and resident input.
Mr. Kornberg stated they would like an extension of the Exclusive Rights
Agreement for an additional 90 days because of the appropriate delays that were built into
the resident review process.
Commissioner Susag asked what type of process was used for the other small
businesses in the area.
Mr. Kornberg stated that they were all notified and that there was discussion with a
number of the smaller businesses in the area, although not all of them.
Keith Laughey, Wally McCarthy Olds employee, asked about the discussions with
the car dealers.
Mr. Kornberg responded that CSM had a number of substantial discussions with
the car dealerships.
Wally McCarthy, Wally McCarthy Olds, stated that while he talked to Tim Bluem of
CSM, he stated that his property is not for sale at any price unless it is to be condemned
by the City.
HRA Meeting Minutes -3- June 15, 1998
Mark Campbell, Richfield-Century Masonic Center, 7615 Logan Avenue, stated that
their property is also not for sale.
Cindy Tryggs, 7639 Penn Avenue, spoke in support of the project, stating that it is
more important to look at the project in terms of the good of the entire community not just
a few property owners.
Amir Bronstein, Wally McCarthy Olds employee, spoke in opposition and said he
had a lot of questions about the project.
David Bakke, 7601 Morgan Avenue, spoke in opposition to the project and taking
his home. If the car dealers stay he felt many would want to also stay.
Jim Bergen, 7627 Oliver Avenue, stated that the property owners in the area feel
like they are being held hostage by this process and that the City owns them. He stated
that he wanted a decision to be made concerning the project, so they could go on with
their lives.
Mary Ellen Mathieu, 7624 Morgan Avenue, stated that her home is not for sale.
Steve Rabe, 8801 James Avenue, Bloomington, and employee of Wally McCarthy
Olds, spoke in opposition to the project.
John Cretzmeyer, 7604 Oliver Avenue, expressed his frustration with being left in
limbo.
Mel Shlosberg, Wally McCarthy Olds employee, spoke against the project because
of trafFc concerns.
Tom Mead, 7620 Morgan Avenue, spoke in opposition to the project.
Mr. McCarthy stated that they are also in limbo and want to know if condemnation
will be used.
Commissioner Susag described the process that would likely be used in the normal
course of this project consideration including the potential use of condemnation, and that a
final decision would not likely come until late fall.
Commissioner Stokes stated that this project area was brought to the City and HRA
because of trafFc concerns because of existing business.
Chair Pro Tempore Helmberger stated that it was necessary to follow this process
through to its conclusion.
M/Susag, S/Stokes to direct staff to be~ain neaotiatina a contract for private
redevelopment with CSM for presentation to the HRA in August.
Motion carried 3-0.
HRA Meeting Minutes -4- ~ June 15, 1998
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Executive Director Prosser stated that at the request of the developer, this item
would be deferred to the July 20 HRA Meeting.
Executive Director Prosser stated that at the request of the developer, this item
would be deferred to the July 20 HRA Meeting.
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Executive Director Prosser reviewed HRA Letter No. 36 concerning the sale of
7332 Queen Avenue to Variety Homes, 7204 First Avenue to Steven Marlin Grant Homes,
and 7645 Nicollet Avenue to Mahoney Construction for residential development.
Chair Pro Tempore Helmberger asked if the home without a garage at 7204 First
Avenue has access to the alley.
Housing & Redevelopment Manager Nordquist responded that it did and
developers were encouraged to provide garages.
M/Susag, S/Stokes to close the public hearing.
Motion carried 3-0.
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 Meeting Minutes -5- June 15, 1998
HRA RESOLUTION N0.668
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7332
QUEEN AVENUE TO VARIETY HOMES, 7204 FIRST AVENUE TO STEVEN MARLIN
GRANT HOMES, AND 7645 NICOLLET AVENUE TO MAHONEY CONSTRUCTION
Motion carried 3-0. This resolution appears as HRA Resolution No. 668 in HRA
Resolution Book No. 5.
Mayor Pro Tempore Helmberger asked about the interest of the apartment owners.
Housing & Redevelopment Manager Nordquist responded that there were a
number of owners that were very interested in the program and were ready to put up their
share of the funding necessary.
Commissioner Stokes asked about the process.
Mr. Nordquist described the processing of a remodeling request.
Commissioner Susag asked about the loan repayment and where the funding will
come from.
Executive Director Prosser stated that it was a Met Council grant as a model
program.
Mr. Nordquist described the process for loan repayments where applicable.
There was general discussion among the HRA Commissioners regarding the
property tax growth implications of the program.
Mr. Nordquist described the property tax implications.
~_
Commissioner Susag stated that he wanted to thank staff and RAMA for pursuing
this program.
M/Stokes, S/Susag to approve authorization of the following_proaram elements:
• Contract with the Metropolitan Council fora $575 000 Apartment Remodeling
Program Livable Communities Grant;
• Professional services agreement with the Center for Enerpy and Environment;
Executive Director Prosser reviewed HRA Letter No. 37 regarding authorization of
the Richfield Rediscovered Apartment Remodeling Program.
HRA Meeting Minutes
-6-
• Professional services agreement with Dennis Daniels: and
• Scope of services for the apartment remodeling grogram.
Motion carried 3-0.
June 15, 1998
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. 669
RESOLUTION AUTHORI~INO PURCHASE OF REAL PROPERTY
LOCATED AT 6824 PARK AVENUE
FOR THE RICHFIELD REDISCOVERED PROGRAM
Motion carried 3-0. This resolution appears as HRA Resolution No. 669 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 39 regarding the expenditure
of 1988 bond proceeds for the construction of the new I-35W bridge at 66th Street.
Commissioner Susag asked if what the HRA was looking at now was the design
concept recommended by the committee.
Community Development Manager Melin stated it was the design recommended by
the committee and approved by the City Council. He indicated that working with MnDOT,
the committee and staff were able to bring the City cost share down while maintaining the
integrity of the design.
Larry Wozniczka, 6744 Wentworth Avenue, expressed concern about this design
and favors the MnDOT design.
L,
Executive Director Prosser reviewed HRA Letter No. 38 regarding the purchase of
6824 Park Avenue under the Richfield Rediscovered Program.
HRA Meeting Minutes
-7-
June 15, 1998
M/Susag, S/Stokes to approve authorization to set aside $250,000 from 1988 bond
,proceeds for the I-35W bride at 66th Street• and to direct staff to prepare a plan
modification for the ILN TIF Plan.
Motion carried 3-0.
Commissioner Stokes stated that she felt it was important that this program provide
sites that will be scattered throughout the City and not concentrated in one area.
Housing and Redevelopment Manager Nordquist stated that it was scattered.
M/Susag, S/Stokes that the followina HRA resolution be adopted, that it be spread
in the resolution book and that it be made part of these minutes:
HRA RESOLUTION N0.670
RESOLUTION AUTHORIZING THE SUBMISSION OF A
"CERTIFICATE OF CORPORATE RESOLUTION" OF
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF RICHFIELD
Motion carried 3-0. This resolution appears as HRA Resolution No. 670 in HRA
Resolution Book No. 5.
Commissioner Susag stated that he was frustrated by the program because it was
the state legislature creating a program that has significant impact on local government.
Executive Director Prosser reviewed HRA Letter No. 40 regarding a "Certificate of
Corporate Resolution" with the Minnesota Housing Finance Agency (MHFA) for the Rental
Assistance for Family Stabilization program (RAPS).
Executive Director Prosser reviewed HRA Letter No. 41 regarding a contract with
Minnesota Housing Finance Agency (MHFA) for Richfield HRA to monitor the 4(d)
Property Tax Classification program.
HRA Meeting Minutes
-8-
June 15, 1998
M/Stokes, S/Susag to approve the execution of a contract with MHFA for
monitoring and arranging for the inspection of units for apartment owners to quality for a
~d) property tax classification.
Motion carried 3-0.
None.
Chair Pro Tempore Helmberger and Commissioner Susag commented on the
remarks made by Mr. Himle on local television media regarding Richfield and the
proposed North-South Runway.
Item #12 `>~t:::.::;::..~.~ :::::::::::::::.~::::::...:.~..:::::::::::
M/Susag, S/Stokes that the following claims and payrolls be approved:
FIRSTAR BANK
Sect 8 Checks 12417-12519 $120,369.07
HRA Checks 18962-18985; 19156-19207 $261,108.04
Motion carried 3-0.
The meeting was adjourned by unanimous consent at 9:38 p.m.
;y
,pproved: ~12o/9s ~'
/y J~q°n Helmberger
I ~Eftair Pro/~ore
L. Devich
Acting City Clerk
Jame D. Prosser
'exec tive Director
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