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01-19-1999 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting January 19, 1999 CALL TO QRDER The meeting was called to order by Chair Harms at 7:00 p.m. 1 ROLL CALL HRA Members Present: Thomas Harms; Joan Helmberger; Michael Sandahl and Russ Susag. HRA Members Absent: Kristal Stokes. Staff Present : James Prosser, Executive Director; Steven Devich, Acting City Clerk; Bruce Palmborg, Community Development Director; and Bruce Norquist, Housing & Redevelopment Manager. APPRQVAL OF MINUTES M/Susag, S/Helmberger to approve the minutes of the Regular HRA Meeting of December 21, 1998. Motion carried 4-0. HRA Meeting Minutes -2- January 19, 1999 Item #1 QPPflRTUNITY FUR CITIZENS TO ADDRESS THE. HRA. No one wished to address the HRA. Item #2 ELECTIUN aF HRA ©FFICERS FQR 9999. HF2~- LETTER N0. 9' M/Susag, S/Helmberger that Tom Harms be elected as Chair of the HRA for 1999. Motion carried 4-0. M/Susag, S/Sandahl that Joan Helmberaer be elected as Vice-Cf~air of the HRA for. 1:999. Motion carried 4-0. M/Helmberger, S/Harms that Michael Sandahl be elected as Secrets ory f the HRA for 1999. . Motion carried 4-0. Item #3 DESIGNATION OF HRA ACTING EXECUTIVE DIRECTQR FUR 9999. HRA LETTER. NQ. 2 M/Sandahl, S/Helmberger that Steven L. Devich. Administrative Services Director be designated as Acting Executive Director of the HRA for 1999. Motion carried 4-0. Item #4 DESIGNATION OF HRA QFFICIAL NEWSPAPER fOR 1.999. HRA LETTER N0. 3 M/Susag, S/Helmberger that the Richfield Sun-Current be designated as the official newspaper of the Richfield HRA for 1999. 1 Motion carried 4-0. 1 HRA Meeting Minutes -3- January 19, 1999 Item #5 CONSIDERATION OF .PROPOSAL TO CONTINUE COMMUNITY APARTMENT PROGRAM FOR 1999. H'RA LETTER NO.4 Executive Director Prosser reviewed HRA Letter No. 4 regarding consideration of proposal to continue Community Apartment Program for 1999. Julianne Manship, Community Apartment Program, made a brief presentation highlighting accomplishments of the program for 1998. Jennifer Verbrugge, Public Safety, talked about programs and the team effort involved in working with "Livable Communities" (focusing on problem apartment properties). Prudence Meyer, RAMA Board, spoke to the leadership and success of the current program under Julianne's guidance. Julianne Manship stated the program's major goals for 1999. Ms. Manship reviewed five areas of strategic goals. Commissioner Susag asked what percentage of rental units in the City are represented by RAMA. Ms. Manship responded that the participation varies per event depending upon the event. She stated that the program reaches out to all apartment complexes in the City. Commissioner Helmberger asked if sized complexes participate in the program. Ms. Manship responded that units as small as duplexes participate. Chair Harms asked if the program would focus on upgrading some of the properties in the City. Ms. Manship described the "three L's"grants for lighting, locks and landscape improvements and an apartment remodeling program. Housing and Redevelopment Manager Bruce Nordquist described a block of grant funds available through the Livable Communities Act to improve complexes. The Interfaith Action group has also provided some funds for apartment communities. HRA Meeting Minutes - ~ ., , -4- January 19, 1999 M/Sandahl, S/Susag to approve the execution of a contract with Julianne Manship for the Community Aaartment Program beginning February 1.1999 for 12 months. ' ` Motion carried 4-0. Item #6 CONSIDERATION' OF RESOLUTION t4UTHORIZING PURCHASE OF 73'I THOMAS AVENUE UNDER RICHFIELD REDISCOVERED` PROGRAIII. HRA LETTER NO.5 Executive Director Prosser revi~w~d HRA Letter No. 5 regarding consideration of a resolution authorizing purph~se +,4f 7315 Thomas Avenue under the Richfield Rediscovered Program. 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 N0.701 RESOLUTION AUTHORISING PURCHAS)= OF REAL PROPERTY LOCATED AT 7315 THOMAS AVENUE FOR THE RICHFIELD R~RISCOVERED PROGRAM Motion carried 4-0. This resolution appears as HRA Resolution No. 701 in HRA Resolution Book No. 5. Item #7 DISCUSSION OF PLANNING PROCESS 1N PENN AND SIXTY-SIXTH STREET AREA... HRA LETTER NO.6 Executive Director Prosser reviewed HRA Letter No. 6 regarding discussion of planning process in the Penn and Sixty-Sixth Street area. Kent Carlson, Ryan Companies, addressed the HRA regarding the exploration and public discussion of potential redevelopment in the Penn and 66th Street area. He stated that Ryan Companies would be back to the HRA to report on progress in the spring. The HRA received the report. No action was taken. 1 0 HRA Meeting Minutes -5- January 19, 1999 Item #8 CONSIDERATION OF °RESOLUTI~N APP'RUVING CONTRACT 'FOR PRIVATE DEVELOPMENT WITH CSNI PROPERTIES,INC. FOR REDEVELOPMENT OF 760U`-01' 'BLOCK OF LYNDALE AVENUE SOUTH: HRA LETTER NO. 7 Executive Director Prosser reviewed HRA Letter No. 7 regarding consideration of a resolution approving contract for private development with CSM Properties, Inc. for redevelopment of 7600-01 block of Lyndale Avenue South. Mr. Prosser described the major portions of the agreement including the "pay-as-you-go" Tax Increment Financing assistance. Commissioner Susag asked about the project timetable. Murray Kornberg, CSM, stated that.there is a total 150-day period to acquire properties. Within 90 days, CSM would come back to the HRA with the finalized project concept and "but-for" analysis so that the financing gap can be addressed among other issues. Within 150 days, CSM will report on the status of property acquisition. Community Development Director Bruce Palmborg stated that the HRA Letter incorrectly describes the time period in Article 2.5 of the agreement as 60 days instead of the correct period of 90 days. M/Sandahl, S/Susag 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 N0.702 RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH CSM PROPERTIES, INC. Motion carried 4-0. This resolution appears as HRA Resolution No. 702 in HRA Resolution Book No. 5. Item #9 UPDATE ON STATUS OF PRECONDITIONS TO DEVELOPMENT OF URBAN VILLAGE. HRA`LETTER'NOe 8 Executive Director Prosser introduced the topic and representatives of Richfield State Agency. HRA Meeting Miny~~s ~,, -6- January 1'9, 1999 Jan Susee, RSA, presented an update of the Urban Village project. He stated that all preconditions have been met except that RSA was seeking an extension of 30 days on items "i" and "m", the form and level of public assistance. M/Helmberger, S/Sandahl to authorize the Executive Director to forward a letter to Richfield State Aaency which confirms the basis for completion of preconditions and. extend for 30 days the reconditions of "form and level of public assistance." Motion passed 4-0. Item #10 STATUS REPORT ON ACQUtSIT1ON OF_PROPERTY FOR URBAN VLL.L_AGE DEVELQPMENT. HRA LETTER NO.9 Jan Susee, RSA, stated that they fully support the concept of a mediation process for the homes that remain to be acquired. He stated that one or two homeowners seem headed to mediation qrl~ that in total six properties remain to be acquired. Mr. Susee stated that because of the timing of construction of the parking ramp, which must begin in early March, it is necessary for RSA to request that the 90 day "quick take" period be initiated as spon as possible. Chair Harms explained the eminent domain process to the homeowners present. Sandy Forsman, speaking on behalf of Bonnie Alema, addressed the HRA. Ms. Forsman stated that Ms. Alema cannot deal with the issue. Mr. Susee stated that an offer has been made to Ms. Alema. He also stated that he had been contacted b~ an aftorney who stated they were representing Ms. Alema. Commissioner Sandahl and Chair Harms explained in detail the process of setting fair values for the homes tp be acquired. Sandy Forsman stated that they are not anxious to move and don't feel that they have to follow the HRA's timeframe. James Vargo, 6630 Pleasant Avenue, said that he was very upset over this taking. He stated that they are at an impasse with the bank because he cannot replace his home and garage for the money he has been offered. Grace Lund, 6721 Harriet Avenue, spoke to the unfairness of the process. James Vargo, 6630 Pleasant Avenue, spoke again to the unfairness of the 1 process. HRA Meeting Minutes -7- January 19, 1999 Chair Harms stated that he sees three options: 1. do nothing; 2. conditionally approve eminent domain; or 3. defer to another date. M/Susag, S/Sandahl to initiate eminent domain proceedings effective February 1 1999 with a stipulation that the developer meet with the owners of the following six properties in either direct negotiations or mediation from now until February 1. 1999: • 307 West 66th Street • 6630 Pleasant Avenue • 6640 Pleasant Avenue • 6607 Grand Avenue • 6615 Grand Avenue • 6621 Grand Avenue Motion passed 4-0. The HRA directed staff to monitor this process and to make periodic reports back to the HRA. Executive Director Prosser stated that the action taken tonight would have to be reviewed by the Attorney for the HRA to ensure its legality. Item #11 EXECUTIVE DIRECTOR REPORT' None. Item #7 CLAIMS AND PAYROLL M/Susag, S/Helmberger that the following claims and payrolls be approved: 1=BRST'AR BANK HRA Checks: 20237-20372; 20471-20522 $ 159,354.02 Section 8 Checks: 13199-13298 $ 126,681.73 Motion carried 4-0. HRA Meeting Minutes ADJQURNMENT -,$:. ~lanuary 19, 1999 The meeting was adjourned by unanimous consent at 8:30 p.m. Date Approved: 2/16/99 ~ i Thomas E. Harms Chair ~0 Ja .Prosser cutive Director J li ~'