10-19-1998
HOUSING AND REDEVELOPMENT
THORITY MEETING MINUTES
AU
Richfield, Minnesota
Regular Meeting
-~ Oct®ber 19, 1999
The meeting was called to order by Chair Harms at 7:00 p.m.
1
HRA Members
Present: Thomas Harms; Joan Helmberger; Kristal Stokes; Michael Sandahl
and Russ Susag.
Staff Present : James Prosser, Executive Director; Bruce Palmborg, Community
Development Director; Thomas Ferber, City Clerk; and John Dean,
City Attorney.
MJSusag, S/Helmberger to approve the minutes of the regular HRA Meeting of
September 21. 1998,
Motion carried 5-0.
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City Clerk Ferber administered the oath of ofFce to HRA Commissioner Mike
Sandahl commencing an appointment for a five year term.
HRA Meeting Minutes -2- October 19, 1998
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No one wished to address the HRA.
Murray Kornberg, CSM Properties, Inc., reviewed a site plan drawing depicting a
mixed use office/hotel/housing/restaurant redevelopment concept for the area bounded by
Knox Avenue, 76th Street, Penn Avenue and 78th Street. He reviewed the status of
preliminary acquisition discussions with landowners in the area. He stated if the contract
is approved a residential specialist would be utilized to assist residents in the negotiation
and relocation process. He stated that the developer would strive to deal with the
individual circumstances as best they can. He stated negotiations continue with the major
commercial landowners and businesses but there is no agreement at this time.
HRA Attorney Dean reviewed the contract provisions and preconditions that must
be met for the development to go forward. He outlined some of the significant contract
#imeframes as follows:
• The redeveloper must complete a concept plan within 45 days.
• Preconditions #o acquisition must be completed with 60 days including the
determination of the level of public assistance necessary to facilitate the
development.
• Within 120 days the developer must provide information on site assembly status
i#ems.
Mr. Kornberg answered questions regarding the status of acquisition negotiations
with landowners, process, and relocation benefits. He reviewed the importance of timing
for the redevelopment including acquisition, infrastructure, and construction time.
Chairperson Harms stated that the HRA would hold a public hearing. on the concept
plan and tax increment financing at the~December 21 HRA meeting. He stated that
individual landowners would have better information by then as to their situation.
HRA Attorney Dean submitted and reviewed minor modifications to the contract
documents on pages 26, B-2, and E-3. The HRA accepted the changes.
Executive Director Prosser reviewed HRA Letter No. 60 regarding a proposed
contract for private development with CSM Properties,. Inc. for the Interchange West Area.
HRA Meeting Minutes
-3-
October 19, 1998
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. 682
RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT
WITH CSM PROPERTIES, INC.
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Motion carried 5-0. This resolution appears as HRA Resolution No. 682 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 61 regarding redevelopment
proposals for the area bounded by 76th Street and 77th Street between Aldrich Avenue
and Garfield Avenue.
Bob Boisclair, the Boisclair Corporation, developer of many housing projects in the
metropolitan area, evaluated the site and proposed a mixed unit development concept of
150 market rate apartment units and 26,000 sq. ft. of retail use on the two blocks from
Lyndale to Harriet.
Gary Dreyer, The TOLD Company, developer of Meridian Crossings, reviewed a
proposal for the block east of Lyndale Avenue consisting of mixed use development of
office and retail use; a 14,000 sq. ft. one story freestanding retail building on the south half
of the block and a three story office building of 44,400 sq. ft. on the north half of the block.
He responded to questions regarding traffic access points to the site.
Murray Kornberg, CSM Properties Inc., reviewed a proposal that envisions a
Marriott extended stay hotel of 98 units and 22,000 sq, ft. of retail and office space on the
west side of Lyndale Avenue; and 150 senior apartments and 27,000 sq. ft. of office on
the east side of Lyndale Avenue.
Discussion followed regarding how to distinguish between the proposals, whether
more senior housing is needed in the community, determination of the tax increment
financing requirements and gaps, and the desire to make a final decision to settle the
issue.
The HRA Commissioners ranked the proposals for the east side of Lyndale Avenue
as follows:
HRA Meeting Minutes
-4-
Commissioner Helmberger 1. CSM 2. Boisclair 3. TOLD
Commissioner Susag 1. CSM 2. TOLD 3. Boisclair
Commissioner Harms 1. TOLD 2. CSM 3. Boisclair
Commissioner Stokes 1. Boisclair
Commissioner Sandahl 1. TOLD 2. CSM 3. Boisclair
October 19, 1998
Discussion followed regarding economics, timing, financial analysis, and TIF
requirements. It was the consensus of the HRA that the financial analysis be performed
so that the HRA can be in a position to choose a developer at the next HRA meeting.
Executive Director Prosser reviewed HRA Letter No. 62 regarding a proposed
resolution authorizing the sale of 7532 Girard Avenue to Karla K. Dagnault and 7615
Nicollet Avenue to Mahoney Construction for residential development.
Larry Wozniczka, 6744 Wentworth Avenue, questioned the land sale price for 7532
Girard Avenue.
Community Development Director Palmborg stated that the appraiser valued it at
$27,000.
Commissioner Helmberger noted that it was an irregularly shaped lot.
M/Sandahl, S/Helmberger to close the public hearing.
Motion carried 5-0.
M/Sandahl, S/Helmberger that the following HRA resolution be adopted, that it be
spread in the HRA resolution book, that it be made part of these minutes:
HRA RESOLUTION N0.683
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 7532 GIRARD AVENUE TO KARLA K. DAGNAULT
AND 7615 NICOLLET AVENUE TO MAHONEY CONSTRUCTION
Motion carried 5-0. This resolution appears as HRA Resolution No. 683 in HRA
Resolution Book No. 5.
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HRA Meeting Minutes -5- October 19, 1998
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M/Sandahl, S/Helmberger to close the Qublic hearing.
Motion carried 5-0.
Executive Director Prosser reviewed HRA Letter No. 64 regarding a resolution to
authorize the purchase of 6228 Pleasant Avenue, 6833 Penn Avenue and 6855 Penn
Avenue under the Richfield Rediscovered Program.
M/Helmberger, 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. 684
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
_ 7520 PORTLAND AVENUE
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Motion carried 5-0. This resolution appears as HRA Resolution No. 684 in HRA
Resolution Book No. 5.
M/Susag, S/Helmberger that the following HRA resolution be adopted, that it be
dread in the HRA resolution book and that it be made part of these minutes:
HRA RESOLUTION N0.685
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6228
PLEASANT AVENUE, 6833 PENN AVENUE AND 6855 PENN AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 685 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. regarding consideration of a
resolution to authorize the sale of HRA property located at 7520 Portland Avenue.
HRA Meeting Minutes -6- October 19, 1998
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Executive Director Prosser reviewed HRA Letter No. 65 regarding a resolution
authorizing issuance of a certificate of completion to Key Land Homes, Inc. for the
Richfield Rediscovered house at 6921 12th Avenue.
M/Stokes, S/Sus~g 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. 686
RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATE OF COMPLETION FOR
RICHFIELD REDaSCOVERED PROPERTY AT 6921-12TH AVENUE
Motion carried 5-0. This resolution appears as HRA Resolution No. 686 in HRA
Resolution Book No. 5.
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Executive Director Prosser reviewed HRA Letter No. 66 regarding a resolution to
authorize a temporary easement on HRA owned property for the Gramercy Senior
Cooperative Housing Project.
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 N0.687
RESOLUTION AUTHORIZING TEMPORARY EASEMENT
Motion carried 5-0. This resolution appears as HRA Resolution No. 687 in HRA
Resolution Book No. 5.
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HRA Meeting Minutes -7- October 19, 1998
Executive Director Prosser reviewed HRA Letter No. 67 regarding a proposed
contract with Hennepin County for $100,000 in HOME funds to purchase and rehabilitate
one home in Richfield in cooperation with Cornerstone Advocacy Services. He stated that
the site being considered is 6600 Oakland Avenue, previously the site of Hat Trick
Hockey.
M/Stokes, S/Helmberger to improve execution of the contract with Hennepin
County for $100 000 in HOME funds to purchase and rehabilitate one home in Richfield in
cooperation with Comerstone Advocacy Services.
Motion carried 5-0.
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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. 688
1
RESOLUTION MODIFYING THE INTERSTATE-LYNDALE-NICOLLET (ILN) TAX
INCREMENT FINANCING DISTRICT VNITHIN THE RICHFIELD REDEVELOPMENT
PROJECT AREA AND ADOPTING THE MODIFICATION TO THE TAX INCREMENT
FINANCING PLAN RELATED THERETO
Motion carried 5-0. This resolution appears as HRA Resolution No. 688 in HRA
Resolution Book No. 5.
Executive Director Prosser reviewed HRA Letter No. 68 regarding the proposed
Modification to the Richfield Redevelopment Project Area Redevelopment Plan and
Interstate-Lyndale-Nicollet Tax Increment Financing Plan.
Executive Director Prosser reviewed HRA Letter No. 69 regarding discussion of
potential elements that should be considered for an agreement with the Ryan Companies
regarding potential redevelopment of property in the Cedar Avenue Corridor.
HRA Meeting Minutes -S- October 19, 1998
Commissioner Stokes stated concerns about the potential for miscommunication
and whether residents would interpret this action as meaning the airport mitigation
redevelopment is a "done deal", wh®n it has not been determined yet. She also asked if
this could preclude MAC from relocating hotels to this area.
Executive Director Prosser indicated it would be beneficial in planning ahead to
respond to the new development issues such as the new 66th Street/Highway 77
interchange MAC has proposed, interest in redevelopment near 1-494 east of 12th
Avenue, and airport mitt~ation redevelopment issues including the potential of the
relocation of the hotels.
Commissioner Sandahl stated some people may misinterpret that this would mean
redevelopment, it is important that the HRA and City have realistic information to flesh out
airport mitigation alternatives and options of such a plan.
Chair Harms discussed the importance of criteria being developed and
demonstrated that will help the HRA determine feasibility of mitigation possibilities.
Executive Director Prosser indicated that a proposed Letter of Understanding would
be drafted by staff.
It was the consensus of the HRA that staff move forward with the process keeping
in mind the importance of communication regarding this action.
Executive Director Prosser reviewed HRA Letter No. 70 regarding consideration of
granting a utility easement across the western edge of the restaurant site in favor of
Candlewood Hotel Company.
Larry Wozniczka, 6744 Wentworth Avenue, stated concerns that the utility
easement would deter placement of a restaurant on the site and that no compensation is
being given for the easement.
Executive Director Prosser stated the easement would not be detrimental to
development of the restaurant site.
M/Sandahl, S/Stokes to approve a utility easement across the western edge of.the
restaurant site in favor of Candlewood Hotel Company at 351 West 77th Street.
Motion carried 5-0.
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HRA Meeting Minutes
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Item #1 ~~I;t~..
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M/Sandahl, S/Stokes that the following claims and payrolls be approved:
FIRSTAR BANK
Section 8 Checks: 12830-13002
FiRA Checks: 19467-19486; 19560-19613
October 19, 1998
$118,796.45
$728,231.56
Motion carried 5-0.
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The meeting was adjourned by unanimous co at 9:03 p.m.
s
Date Approved: 11/16/98 °~
Thomas E. Harms
P~ y~
s //
Thomas P. Ferber
City Clerk
D. Prosser
ve Director