09-13-1999 Special
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SPECIAL HOUSING
AND REDEVELOPMENT AUTHORITY
MEETING MINUTES
Richfield, Minnesota
September 13, 1999
CALL T4 `ORQER
The meeting was called to order by Chair Harms at 6:15 p.m.
1
ROLL GALL
HRA Members
Present: Thomas Harms; Joan Helmberger; Kristal Stokes; and Russ Susag.
HRA Members
Not Present: Michael Sandahl
Staff Present Steven Devich, Acting Executive Director; Thomas Ferber, City
Clerk; and Bruce Palmborg, Community Development Director.
APPROVAL CJF M('NUTES
Commissioner Helmberger requested a correction to the August 16, 1999 HRA
minutes on page 4, Item #4 to reflect Harms as voting in opposition to the motion instead
of Sandahl.
M/Helmberger, S/Harms to approve the minutes of the regular HRA Meeting of August 16,
1999 as amended and the Special City Council and HRA Meeting of September 2. 1999.
Motion carried 4-0.
Special HRA Meeting Minutes -2- September 13, 1999
Item #1 CfJNSIDERATIOM OF REQUEST BY CSM PROPERTIES, IAIC. TO Al1~END
CONCEPT PLAN FOR LYNDALE GATEWAY REDEVELOPMENT AREA.
HRA LETTER Nfl. 56
Acting Executive Director Devich reviewed HRA Letter No. 56 regarding the request
by CSM Properties, Inc. to amend the Concept-Plan for the Lyndale Gateway
redevelopment area to include additional residential units.
Murray Kornberg, Vice President of CSM Properties, Inc., discussed the proposed
modifications to the Concept Plan.
Gary Tushie, Tushie Montgomery Associates Inc., reviewed the Lyndale Gateway
amended Concept Plan and site plan drawings.
Kristi Olson, Twin City Christian Homes, reviewed and answered questions about
the senior apartment building components which included 30 assisted living units and 130
independent "congregate" units.
Commissioner Susag asked questions about the traffic impact of the increased
density of the townhome component.
Community Development Director Palmborg stated that a traffic analysis had not
been done regarding that issue.
Heidi Kurze, Ron Clark Homes, reviewed their experience regarding traffic
generation at their Eastridge townhome development in Minnetonka.
M/Helmberger, S/Stokes to approve CSM Properties. Inc. Revised Concept Plan for
the Lyndale Redevelopment area as presented in accordance with the Contract for Private
Development.
Motion carried 4-0. _
Item #2 CONSIDERATION` ®F'REVISIO'N TO PUBLtC ASSISTANCE PROVIDE[}
FOR LYNaALE GATEWAY DEVELOPMENT. HRA LETTER N~1, 57
Acting Executive Director Devich reviewed HRA Letter No. 57 regarding
consideration of a revision to the public assistance provided for the Lyndale Gateway
Development in order to fund the entire project, including the west side of Lyndale Avenue.
Sid Inman, Ehlers & Associates, Inc., explained and answered questions regarding
the financing scenario which included the following funding sources:
Special HRA Meeting Minutes -3- September 13, 1999
The first public funding source is the tax increment which will be generated by the
development, currently estimated at $4.6 million. Secondly, the City would issue a tax
exempt general obligation tax increment bond in the approximate amount of $1,650,000.
This bond is to be retired using the tax increment generated in the Candlewood hotel site.
The final source of public funding takes the form of a $100,000 loan from the HRA using
development account funds. This development account loan would be repaid from excess
debt coverage and tax increment which may be generated by the development.
Commissioner Susag asked about the taxable status of Twin City Christian Homes
senior housing.
Kristi Olson, Twin City Christian Homes, explained that the Twin City Christian
Homes senior housing development was taxable.
M/Susag, S/Stokes that the HRA take the followina actions:
1. Approves public assistance for all three phases of the Lvndale Gatewa
development (Phase I: senior aQartments and attached offices on the east side
of Lyndale Avenue• Phase II: commercial development on the west side of
Lvndale Avenue; Phase III: condominium development on the east side of
Garfield Avenue);
2 Approves the use of tax increment financina (TIF) for the development in the
proximate amount of $4.6 million in the form of apay-as-you-ao note issued to
the developer(s) as reimbursement for eligible redevelopment costs;
3 Requests that the City Council issue tax exempt general obligation tax increment
bonds in the proximate amount of $1 650 000 to be retired from the tax
increment generated by the Candlewood Hotel site. the proceeds of which would
be reimbursed to the developer(s) for eligible redevelopment costs;
4 Approves the loanina of development account funds of up to $100,000 for
reimbursement to the developers for eligible redevelopment costs which
exceed the amount of TIF and bond proceeds which are to be provided:
5 Approves the terms outlined in the memorandum from Ehlers Publicorp.
6 Finds that this development could not occur but for the use of tax increment and
other public assistance.
Motion carried 4-0.
Special HRA Meeting Minutes -4-
ADJOURNMENT
The meeting was adjourned by unanimous
Date Approved: September 20, 1999 .
T omas P. Ferber
City Clerk
September 13, 1999
C
at 6:38 p.m.
E. Harms
given L. DevicFi
Acting Executive
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