Loading...
08-16-1999 ii ~~ --~ CALL TO ORDER Regular Meeting August 16, 1999 The meeting was called to order by Chair Harms at 7:00 p.m. ...ROLL CALL HRA Members Present: Thomas Harms;.Joan Helmberger; Kristal Stokes; Michael Sandahl and Russ Susag. Staff Preseni: Steven Devich, Acting City Manager; Bruce Palmborg, Community Development Director; and John Dean, HRA Attorney. APPROVAL OF MINUTES M/Susag, S/Helmberger to approve the minutes of the July 27, 1999 HRA Meeting. Motion carried 5-0. 0 Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA. No one wished to address the HRA. HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota HRA Meeting Minutes -2- August 16, 1999 Item #2 CONSIDERATION OF AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT WITH CSM PROPERTIES, INC. FOR DEVELOPi1~ENT OF INTERCHANGE WEST AND ASSOCIATED "BUT FOR" ANALYSIS. HRA LETTER NO. 46 Acting Executive Director Devich stated Murray Kornberg of CSM wished to address the HRA regarding recent events that affect consideration of this item. Murray Komberg, Vice President of CSM Properties, Inc., stated that there had been new and exciting developments regarding the potential redevelopment of the Interchange West area. He stated a single corporate user has expressed interest in the site for their headquarters. He stated this use would provide a significant increased tax base and denser development than the current proposal. Mr. Kornberg stated that this potential use would require possible changes to the timeline, necessary government approvals and that the user would not be a tenant, but instead an owner. He requested that staff be given time to analyze this possibility and changes in order to present information to the HRA at their- next meeting. Chair Harms asked how real the possibility was for this use. Community Development Director Palmborg stated that he had talked to representatives of the company in the last few weeks and the situation is competitive, but they appear to have a strong interest in the site. Commissioner Susag expressed concern about the impact of the schedule. Mr. Kornberg indicated it was unclear at this time, but it would likely take longer with the new use. Commissioner Stokes stated concern as to what would happen if this option does not occur. Mr. Kornberg stated that he thought it was best to take the time to pursue this possibility. Chair Harms stated that it would be worth the time to look at this possibility because of the potential for significant tax base and jobs for the community associated with such a corporate use. M/Harms, S/Sandahl to authorize and direct staff to do the followina: 1. To review and analyze the issues related to the Interest and possibility of a single corporate headquarters use for the Interchange West Redevelopment Project. 2. To work on the amendments to the contract for private redevelopment with CSM Properties, Inc. for the Interchange West area. r L 1 HRA Meeting Minutes -3- August 16, 1999 Motion carried 5-0. Discussion followed regarding communication to the Interchange West area regarding these new developments. Item #3 CONSIDERATION OF AMOUNT AND FOR~II OF PUBLIC ASSISTANCE TO B'E USED FOR COMPLETION OF LYNDALE GATEWAY DEVELORiVIENT. HRA LETTER'NO. 47 Acting Executive Director Devich reviewed HRA Letter No. 47 recommending the following action by the HRA: 1. Approve assistance only for the senior apartment and attached office development which is proposed for the east side of Lyndale Avenue and for the commercial development which is proposed for the west side of Lyndale Avenue; 2. Approve the use of tax increment financing (TIF) for the development in the approximate amount of $3,930,000 in the form of apay-as-you-go note issued to the developer(s) as reimbursement for eligible redevelopment costs; 3. Stipulate that the tax increment assigned to the Twin City Christian Homes component of the development be reduced proportionately in any year that the debt service coverage exceeds 130%; 4. Request that the City Council issue general obligation tax increment bonds in the approximate amount of $1,250,000 to be retired from the tax increment generated by the Candlewood Tax Increment Financing District, the proceeds of which would be reimbursed to the developer(s) for eligible redevelopment costs; and 5. Approve the use of development account funds of up to $100,000 for reimbursement to the developer(s) for eligible redevelopment costs which exceed the amount of TIF and bond proceeds which are to be provided. Sid Inman, Ehlers and Associates, Inc. responded to questions regarding the potential use of the tax increment generated by the Candlewood Hotel site. Commissioner Susag stated that in his judgement the development on the east side of Lyndale Avenue with the Twin City Christian Homes Senior Apartments must include the townhomes as part of the development because of the negative impacts on the homeowners on Ga~eld Avenue. He stated his motion would be to amend the recommended action by deleting the commercial development proposed for the west side of Lyndale Avenue, adding the townhome development on the east side of Garfield Avenue and deleting number 5. HRA Meeting Minutes ~ -4- August 16, 1999 Heidi Kurtz, representing Ron~Clark Construction, discussed and responded to questions regarding the townhome~ market, price and density issues related to the site ;. Mr. Kornberg discussed density~issues related to townhouse price point and market evaluation. He indicated his interest that the commercial portion on the west side of Lyndale Avenue be approved although it was only one component. He discussed the financing gap issue. Commissioner Sandahl stated concerns about the financing gap and the desire that all three components be built. Commissioner Helmberger stated she supports doing both sides of Lyndale Avenue and building the townhomes later if financing becomes available. Discussion followed regarding various financing and funding sources including the impact on the development account fund, which would hinder future opportunities and projects throughout the City. M/Susag, S/Stokes to take the-following action: 1. Approve the use of tax increment financing only for the senior apartment and_ attached office development =which is proposed for the east side of Lyndale Avenue and for the townhome development proposed for Garfield Avenue. This would require approximately $621,000 in additional assistance beyond the tax increment which would be aenerated by the development; 2. Approve the use of tax increment financina (TIF) for the development in the proximate amount of $3.930,000 in the form of a pay_asyouu-go note issued to the developer(s) as reimbursement for eligible redevelopment costs; 3. Stipulate that the tax increment assigned to the Twin City Christian Homes component of the development be reduced proportionately in any year that the debt service coverage exceeds 130%; and 4. Requests that the City Council issue general obligation tax increment bonds in the approximate amount of $1.250.000 to be retired from the tax increment generated by the Candlewood Tax Increment Financing District, the proceeds of which would be reimbursed-to the developer(s) for eligible redevelopment costs. Motion carried 3-2. (Helmberger and Harms opposed) Commissioner Sandahl stated that he wanted to see the west side of Lyndale Avenue redevelopment be a top priority for staff.. HRA Meeting Minutes -5- August 16, 1999 Item #4 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 7520 COLFAX AVENUE TO STEVEN MARLIN GRANT HOMES, INC. HRA LETTER NO. 48 Acting Executive Director Devich reviewed HRA Letter No. 48 regarding the proposed sale of 7520 Colfax Avenue to Steven Marlin Grant Homes, Inc. M/Stokes, SlSandahl to close the public hearing. Motion carried 5-0. HRA RESOLUTION N0.721 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7520 COLFAX AVENUE TO STEVEN MARLIN GRANT HOMES, INC. 1 'u 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: Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 721 in HRA Resolution Book No. 6. Item #5 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OE fi600 OAKLAND A1(ENUE TO CORNERSTONE ADVOCACY SERVICE'F4R TRANSITIONAL HOUSING PROGRAM. HRA LETTER. NO. 49 Acting Executive Director Devich reviewed HRA Letter No. 49 regarding the proposed sale of 6600 Oakland Avenue to Cornerstone Advocacy Service for its Transitional Housing Program. Community Development Director Palmborg responded to questions regarding the Cornerstone Advocacy Service Transitional Housing Program. Chad Sharkey, 6637 Park Avenue, asked if the retail space in the building would be occupied. Community Development Director Palmborg stated that the retail portion will be removed from the structure and only the living spaces will be retained. M/Helmberger, S/Stokes to close the public hearing. Motion carried 5-0. HRA Meeting Minutes -6- August 16, 1999 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 N0.722 RESOLUTION AUTHORIZING THE SALE OF 6600 OAKLAND AVENUE TO CORNERSTONE ADVOCACY SERVICE FOR ITS TRANSITIONAL HOUSING PROGRAM Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 722 in HRA Resolution Book No. 6. Item #6 CONSIDERATION OF RESOLUTION AUTHORIZING' ACQUISITION OF 6901' 12TH. AVENUE, 6929 QUEEN AVENUE AND 6933 QUEEN' AVENUE UNDER RICHFIELD REDISCOVERED PR'ROGRAM AND R'ESOLUTI'ON AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE 6933 QUEEN AVENUE. HRA LLETTER NO. 50 Acting Executive Director Devich reviewed HRA Letter No. 50 regarding consideration of authorization to purchase the properties at 6901 12th Avenue, 6929 Queen Avenue and 6933 Queen Avenue under the Richfield Rediscovered Program and to authorize eminent domain proceedings to acquire 6933 Queen Avenue. Community Development Director Palmborg discussed the status of the property at 6933 Queen Avenue. He stated that the Community Development staff would meet with the owner to see if their current plans to improve the property are feasible and eminent domain would only be used if necessary. Chair Harms directed staff to meet with homeowner and if there is significant progress to delay the eminent domain process and report back to the HRA at the next meeting. M/Stokes, 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 N0.723 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6901- 12TH, 6929 QUEEN AND 6933 QUEEN AVENUES FOR THE RICHFIELD REDISCOVERED PROGRAM 1 Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 723 in HRA Resolution Book No. 6. HRA Meeting Minutes -7- August 16, 1999 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 N0.724 RESOLUTION AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTY LOCATED AT 6933 QUEEN AVENUE Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 724 in HRA Resolution Book No. 6. Item #7 CONSIDERATE©N t~F AUTHORIZATION-OF FOUR YEAR FUNDING PLAN FOR RICHFIELD REDISCOVERED AND TRANSFORMATION HOMES PROGRAMS AND REQUEST FO'R CITY COUNCIL TO AUTHORIZE SALE OF GENERAL OBLIGATION TAX INCREMENT REVENUE. BONDS. HRA LETTER NO. 51 Acting Executive Director Devich reviewed HRA Letter No. 51 regarding authorization of a four year funding plan for the Richfield Rediscovered and Transformation Homes Programs and a request to the City Council to authorize the sale of general obligation tax increment revenue bonds. M/Sandahl, S/Susag to authorize a four year funding plan for the Richfield Rediscovered and Transformation Homes Programs; to request the City Council to authorize the sale of general obligation tax increment revenue bonds; and to authorize the HRA Chair and Acting Executive Director to execute agreements related to the funding plan for the Richfield Rediscovered Transformation Homes Program. Motion carried 5-0. Item #8 CONSIIJERATION OF RESOLUTION AUTHORIZING EXECUTION OF CERTIFICATE OF COMPLETION' FOR MERIDIAN CROSSINGS, PHASE II. HRA .LETTER NO. 52 Acting Executive Director Devich reviewed HRA Letter No. 52 regarding execution of the Certificate of Completion for Meridian Crossings, Phase II. HRA Meeting Minutes -8- August 16, 1999 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 RESOLUTION N0.725 RESOLUTION AUTHORIZING EXECUTION OF A CERTIFICATE OF COMPLETION FOR MERIDIAN CROSSINGS, PHASE II Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 725 in HRA Resolution Book No. 6. Item #9 CONSIDERATION OF ACKNOWLEDGEMENT AND CONSENT TO TRANSFER PROPERTY FROM MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT L.L.G.'D/B/A TOLD DEVELOPMENT COMPANY TO THE STATE TEACHERS RETIREMENT SYSTEM OF OHIO; MERIDIAN CROSSINGS OFFICE REDEVELOPMENT PROJECT,.. PHASE II. t~~~.~.~~_ _~!R ~___ Acting Executive Director Devich reviewed HRA Letter No. 53 regarding the request of Meridian Properties Real Estate Development L.L.C., d/b/a TOLD Development Company for the required approvals and consent to transfer the property to The State Teachers Retirement System of Ohio. Chair Harms read the stipulations. M/Sandahl, S/Stokes that the HRA take the following actions: 1. Approval of the CONSENT TO ASSIGNMENT agreement which assigns Meridian Crossings. Phase II. property to Purchaser does not constitute a default under the Redevelopment Contract nor does it alter or affect any payment due under the Limited Tax Increment Note to TOLD; 2. Approval of the CERTIFICATION AND ESTOPPEL CERTIFICATE which (a. acknowledges the HRA's consent of the transfer of property: (b.) acknowledges compliance with the Redevelopment Contract except for provisions relating to Land Sale. Construction of Minimum Improvements. and Wage and Job Covenants: (c.) acknowledges that there are no outstanding defaults or claims• and d. verifies outstandin s ecial assessments balance due under the Limited Tax Increment Note. and current market value of property and 2a. The execution and delivery of the Estopel certificate by the HRA is conditioned on the following: 1. Issuance of the certificate of comaletion in accordance with the terms of the contract HRA Meeting Minutes -9- August 16, 1999 2. Any amount due and owed the HRA and/or City must be paid in full 3. HRA consent to the GENERAL WARRANTY ASSIGNMENT OF PROJECT CONTRACTS AND ASSUMPTION AGREEMENT which assigns all of TOLD's project contracts representations warranties, covenants, and agreements relating thereto for Phase II to Purchaser. 4. Authorizes the Chairperson and Acting Executive Director to take any and all actions necessary to execute the agreements in order to carry out the implementation of the actions requested by TOLD. Motion carried 5-0. Item #10 CONSIDERATION OF RESOLUTION APPROVLNG PROPOSED 2000 HRA BUDGET AND CERTIFYING :2000 TAX LEVY RESOLUTION REVISING 1`999 HRA BUDGET. HRA :LETTER NO.54 Acting Executive Director Devich reviewed HRA Letter No. 54 regarding approval of the proposed 2000 HRA Budget, certification of the proposed 2000 Tax Levy, approval of authorization to revise the 1999 HRA Budget and scheduling of a public hearing for 7:00 p.m. on November 15, 1999 regarding the HRA budget and final tax levy. 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. 726 RESOLUTION APPROVING PROPOSED 2000 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2000 TAX LEVY Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 726 in HRA Resolution Book No. 6. M/Sandahl, 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 RESOLUTION N0.727 RESOLUTION AUTHORIZING REVISION OF THE 1999 BUDGET OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 727 in HRA Resolution Book No. 6. HRA Meeting Minutes -10- Item #11 EXECUTIVE DIRECTOR REPQRT August 16, 1999 Community Development Director Palmborg discussed HRA representation on the Affordable Housing Committee. By the unanimous consent of the HRA, Commissioner Stokes agreed to be the HRA representative if the scheduling is feasible. Item #12 CLAIMS AND PAYROLL M/Sandahl, S/Harms that the following claims and payrolls be approved: FIRSTAR BANK Section 8 Checks: 13991 - 14102 $129,879.06 HRA Checks: 20767 - 20777; 20940 - 20995 $638,084.83 Motion carried 5-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 8:22 p.m. Date Approved: September 13. 1999 Thomas P. Ferber City Clerk Thom E Harms Ch 'r D~~ ~~ Stev,~n L. Devich ` Acting Executive Director 1 ~1