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05-17-19991 ~-'~ -~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting May 17, 1999 CALL TO ORDER The meeting was called to order by Vice Chair Helmberger at 7:00 p.m. 1 ROLL CALL HRA Members Present: Joan Helmberger, Vice Chair; Kristal Stokes; Michael Sandahl; and Russ Susag. HRA Members Nof Present: Thomas Harms. Chair Harms was unable to attend this meeting. Vice Chair Helmberger served as Chair. Community Development Director Palmborg served as the Acting Executive Director for this meeting. Staff Present : Bruce Palmborg, Acting Executive Director; Thomas Ferber, City Clerk; and John Dean, City Attorney. APPROVAL OF MINUTES M/Sandahl, S/Susag to aprrove the minutes of the Regular HRA Meeting of April 19. 1999. Motion carried 4-0. HRA Meeting Minutes -2- May 17, 1999 Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA. No one wished to address the HRA. Item #2 CONSIDERATfON' OF RESOLUTION REGARDING APPROVAL OF MOD[FICATION TO' REDEVELOPMENT PLAN 'FOR'RICHFIELIJ REDEVELOPMENT PROJECT AREA; AND ESTABLI':SHM'ENT 4F INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING'D[STRICT AND TAX INCREMENT FINANCING PLAN: HRA LETTER NO. 24 Acting Executive Director Palmborg reviewed HRA Letter No. 24 regarding a proposed resolution which would do the following: • Approve a modification to the Richfield Redevelopment Project Area Redevelopment Plan; • Establish the Interchange West and Lyndale Gateway Tax Increment Financing District; • Approve the Interchange West and Lyndale Gateway Tax Increment Financing Plan; and • Request the City Council to bald ~ public hearing and approve the modified Redevelopment Plan and new-Tax Increment Financing Plans. Larry Wozniczka, 6744 Wentworth Avenue, questioned why 7608 Pillsbury Avenue _ __ was included in the Richfield Redevelopment Project Area by itself and why the whole block was not also included. Acting Executive Director Palmborg stated that a willing seller had approached the City to purchase 7608 Pillsbury Avenue and the purchase was approved due to the possibility of redevelopment if the City garage is relocated or expanded. He stated the modifications to the Richfield Redevelopment Project area were to expand the boundary so that it corresponds to the redevelopment planning areas within the City. Commissioner Sandahl asked about the boundaries of the Lyndale gateway TIF District. Acting Executive Director Palmborg stated the boundaries are the alley east of Garfield Avenue and Aldrich Avenue, between 76t" Street and 77t" Street. He stated that the east side of Garfield Avenue was included in the TIF District to allow for development to occur if the majority of homeowners in that area demonstrate a preference to sell their homes. Commission Sandahl suggested a deadline for that determination. Mr. Palmborg stated it should be determined by the June HRA meeting. 1 Commissioner Susag asked what the next step would be in the process after HRA approval of the resolution. HRA Meeting Minutes -3- May 17, 1999 Acting Executive Director Palmborg stated that the City Council will conduct a public hearing on the plans on June 14. 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 N0.710 RESOLUTION MODIFYING THE RICHFIELD REVELOPMENT PROJECT AREA AND ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN RELATING THERETO; AND ESTABLISHING THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING THE RELATED TAX INCREMENT FINANCING PLAN Motion carried 4-0. This HRA Resolution appears as HRA Resolution No.-710 in HRA Resolution Book No. 6. Item #3 . CONSIDERATION' OF'REQU'EST FRaM CSM PROPERTIES TO AMEND TH'E CONTRACT FOR PRIVATE DEVELOPMENT FOR INTERCHANGE WEST AREA.. H'RA LETTER' ND. 25 Acting Executive Director Palmborg reviewed HRA Letter No. 25 regarding a request from CSM Properties, Inc. to amend the Contract for Private Development for the Interchange West area to allow the project to be completed in two phases. He stated the first phase would be the residential portion of the project and the second phase would be the commercial portion. Murray ICornberg, Vice President of CSM Properties, Inc., discussed the status of site assembly activities indicating the following: Residential Properties: 61 of 68 signed purchase agreements 5 verbal agreements 2 remain without agreement _ Commercial Properties: Negotiations continue and issues are more complex 6 of 15 properties have agreement on price and basic terms Mr. Kornberg stated that because acquisition of the residential properties has proceeded faster that the acquisition of the commercial property, CSM is requesting that the HRA authorize staff to prepare an amendment to the contract for development to provide for the commencement of condemnation on the existing residential properly separate from the ahead of condemnation of the existing commercial property. He stated CSM continue to remain hopeful that we will not require condemnation on any property in the project area, but such an amendment would recognize the differences in timing between the two types of acquisition and development activities. He indicated in the future if CSM were to request condemnation, such an amendment could also facilitate an earlier commencement to portions of the project if required. HRA Meeting Minutes -4- May 17, 1999 Larry Wozniczka, 6744 Wentworth Avenue, stated it was not clear what action was being requested of the HRA. Vice Chair Helmberger read the recommended motion. Mr. Wozniczka stated concern that the residential portion of the project would be developed before the commercial portion. Acting Executive Director Palmborg stated that the proposed amendment was responsive to the residential property owners in order to meet the scheduled September 1 closing date on their homes while the total project also continues to move forward. M/Susag, S/Stokes to direct staff to prepare an amendment to the contract to provide for the commencement of condemnation on the existing residential property separate from and ahead of condemnation of the existing commercial property and to submit the amendment to the HRA for consideration at their June 21. 1999 meeting. Motion carried 4-0. Item #4 PRESENTATION OF ANNUAL STATUS REPORT ON TAX INCREMENT DISTRICTS HRA LETTER NO. 26 Acting Executive Director Palmborg reviewed HRA Letter No. 26 regarding presentation of the annual status report on tax increment districts as prepared by Sid Inman of Ehlers & Associates, Inc., financial consultant to the City and HRA. Sid Inman, Ehlers & Associates,.lnc. reviewed and answered questions regarding the Richfield HRA Tax Increment District Status Update Report. Commissioner Susag requested that future reports include the district's market value at inception and current market value. Larry Wozniczka, 6744 Wentworth Avenue, stated he wanted to see a complete list of the Richfield Rediscovered properties and their increments. He questioned why only two Richfield Rediscovered properties were listed in the report. Commissioner Sandahl asked why Mr. Wozniczka needed this information stating the HRA was satisfied with what was presented and he didn't want staff taking a lot of time compiling additional information for Mr. Wozniczka unless there was a good reason. Mr. Wozniczka questioned the greater than inflation increases in City property taxes since 1992 and questioned the reporting of T.I.F. receipts for the program. Mr. Inman stated the T.I.F. receipts for the program were $30,000 per year as noted on page 4 of the tax increment district projections in the report. i~ HRA Meeting Minutes -5- May 17, 1999 Acting Executive Director Palmborg stated that two Richfield Rediscovered properties are listed in the report separately because they are subject to assessment agreements while none of the others required assessment agreements. Mr. Inman stated that Ehlers is doing a complete audit of T.I.F. programs and a separate listing for each property will be compiled in this process. He stated it should be available in approximately one month. M/Helmberger, S/Sandahl to accept the 1999 Richfield HRA Tax Increment District Status Update dated Ma~1999 prepared by Ehlers & Associates, Inc. Motion carried 4-0. Item #5 CONSIDERATION OF KEY PROVISIONS OF PROPOSED MASTER DEVELOPMENT AGREEMENT BETWEEN CITY OF RICHFIELD, 'RICHFIELD HRA AND RYAN COMPANIES'US, INC. HRA LETTER NO.27 Acting Executive Director Palmborg reviewed HRA Letter No. 27 regarding. a proposed master development agreement between the City of Richfield, the Richfield - HRA, and Ryan Companies US, Inc. - Commissioner Sandahl noted that the mitigation plan which envisions the redevelopment of east Richfield .near the airport is necessary because existing buildings - and homes cannot be retrofitted to mitigate the impacts of the low frequency noise. -_ HRA Attorney John Dean reviewed the legislation that authorized $30 million for airport mitigation in Richfield. He summarized and answered questions regarding the key provisions of the proposed master agreement with Ryan Companies and the role of Ryan Companies as a project coordinator and potential developer. Discussion followed regarding provisions for reimbursement of costs if a third party developer is chosen and how reimbursable costs would be determined. HRA Attorney Dean stated these issues would be clarified in the final agreement. Larry Wozniczka, 6744 Wentworth Avenue, suggested that if tax increment financing is used that values increase by inflation and the cost for increased services rather than being frozen. HRA Attorney Dean stated it will be at least one to two years before it will be known what will occur and it is unknown at this time if tax increment financing will be utilized. M/Sandahl, S/Stokes to approve the keyprovisions as presented by HRA Attomey John Dean and summarized in the agenda packet and direct staff to neaotiate the final terms of a master agreement with Ryan Companies US. Inc. for subseauent presentation to the HRA for approval. HRA Meeting Minutes Motion carried 4-0. -6- May 17, 1999 Item #6 .PUBLIC HEARING AND CONSIDERATION OF `RESOLUTION AUTHORIZING SALE OF 6824 PARK AND 68051RVING AVENUES TO VYINDWOOD HOMES INC. AND 73'1:5 THOMAS AVENUE TO STEVE MARLIN GRANT'HOMES, INC,. "'HRA LETTER NO. 2H Acting Executive Director Palmborg reviewed HRA Letter No. 28 regarding authorization to sell the Richfield Rediscovered Program properties at 6824 Park Avenue and 6805 Irving Avenue to Windwood Homes, Inc. and 7315 Thomas Avenue to Steve Marlin Grant Homes, Inc. Don Gallos, 6801 Irving Avenue, requested information regarding the concept and site plan for 6805 Irving Avenue. Phil Mortenson, 7221 Thomas Avenue, former tenant at 7315 Thomas Avenue, requested that he be allowed to remove three pine trees that he had planted at 7315 Thomas Avenue. It was consensus of the HRA that this would be acceptable and they instructed Mr. Mortenson to contact Pam Bookhout regarding this issue. M/Sandahl, S/Stokes to close the public hearing. Motion carried 4-0. 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 N0.711 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6824 PARK AND 6805 IRVING AVENUES TO WINDWOOD HOMES INC. AND 7315 THOMAS AVENUE TO STEVEN MARLIN GRANT HOMES, INC. Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 711 in HRA Resolution Book No. 6 Item #7 CONSIDERATION OF RESOLUTION AUTHORIZING HRA TO ACQUIRE ?545 PENN AVENUE FROM CITY FOR APARTMENT REMODELING PROGRAM, AND~CONDUCT PUBLIC 'HEARING AND CONSIDERAT6ON OF RESOLUTION. AUTHORIZING SALE OF REMNANT PARCEL AT 7545 PENN AVENUE TO FLOYD SJOSTRAND, H'RA LETTER N0. 28' 1 HRA Meeting Minutes -7- May 17, 1999 Acting Executive Director Palmborg reviewed HRA Letter No. 28 regarding authorization for the HRA to acquire property at 7545 Penn Avenue and to sell the property to Floyd Sjostrand as part of the HRA Apartment Remodeling 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 N0.712 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7545 PENN AVENUE FOR THE APARTMENT REMODELING PROGRAM Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 712 in HRA Resolution Book No. 6. Larry Wozniczka, 6744 Wentworth Avenue, asked about the cost and funding source. Acting Executive Director Palmborg stated that a Metropolitan Council Livable Communities Grant will pay the $25,196 value of the parcel with $12,598 going to Hennepin County and $12,598 to reimburse the City's MSA fund. M/Sandahl, S/Susag to close the public hearing. Motion carried 4-0. 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 RESOLUTION N0.713 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7545 PENN AVENUE TO FLOYD SJOSTRAND Motion carried 4-0. This HRA Resolution appears as HRA Resolution No. 713 in HRA Resolution Book No. 6 Item #8 EXECUTIVE QIRECTOR REPORT Commissioner Sandahl gave a status report on the work of the Low Frequency Noise Policy Committee. Acting Executive Director Palmborg discussed legislative action regarding funding for airport impact mitigation and the FFA "funding diversion" policy. HRA Meeting Minutes -8- Item #9 CLAIMS AND PAYR4lL May 17, 1999 M/Sandahl, S/Susag that the followina claims and payrolls be approved: FIRSTAR BANK Section 8 Checks: 13655-13767 $ 116,950.68 HRA Checks: 20425-20458;-20894-20747 $ 533,041.94 Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 8:37 p.m. Date Approved: 6/21/99 ~ ,~~~~ Thomas P. Ferber City Clerk Jo Helmberger Vi a Chair ~~ ruce Palmb rg Acting Executive Director 1