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01-18-2000 f / /~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting January 18, 2000 CALL TO ORDER 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 Present: Samantha ®rduno, Executive Director; Steven Devich, Acting City Clerk; Sruce Palmborg, Community Development Director; Johri Stark, Community Development Manager; and John Dean, HRA Attorney. APPROVAL OF MINUTES MlSusag, SAHelmberger to approve the minutes of the regular HRA Meeting of November 15 1999 and the Special HRA Meeting of November 22, 1999. Motion carried 5-0. Item #1 OPPORTUNITY FOR CITIZENS TO-ADDRESS THE HRA: No one wished to address the HRA. HRA Meeting Minutes -2- January 18, 2000 I~~m #2 ELECTION OF .HOUSING AND REDEVELOPIVI'ENT AUTHORITY OFFICERS fOR 2000. HRA LETTER NO._1 M/Susag, S/Stokes that the followina be elected as officers of the HRA for 2000: Thomas Harms, Chair Joan Helmberger, Vice-Chair Michael Sandahl, Secretary Motion carried 5-0. Item #3 HRA APPROVAL OF AGENDA M/Susag, S/Stokes to approve the agenda. Motion carried 5-0. Item #4 CONSENT CALENDAR A. APPROVED DESIGNATION OF STEVEN L. DEVICH AS HRA ACTING EXECUTIVE DIRECTOR FOR 2000 DURING ABSENCES OF EXECUTIVE DIRECTOR ORDUNO HRA L. 2 B. APPROVED DESIGNATION OF RICHFIELD SUN CURRENT AS HRA OFFICIAL NEWSPAPER FOR 2000 HRA L. 3 C. APPROVED RESOLUTIONS DESIGNATING HRA OFFICIAL DEPOSITORIES FOR 2000, INCLUDING APPROVAL OF COLLATERAL HRA L. 4 HRA RESOLUTION NO. 748 RESOLUTION DESIGNATING THE RICHFIELD BANK AND TRUST COMPANY A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FOR THE YEAR 2000 AND APPROVING COLLATERAL HRA RESOLUTION N0.749 RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF THE HOUSING'AND REDEVELOPMENT AUTHORITY FUNDS IN 2000 1 HRA Meeting Minutes -3- January 18, 2000 HRA RESOLUTION N0.750 RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2000 HRA RESOLUTION N0.751 RESOLUTION DESIGNATING THE FIRSTAR BANK A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY FOR RICHFIELD FOR THE YEAR 2000 AND APPROVING COLLATERAL These HRA Resolutions appear as HRA Resolution No.'s 748 - 751 in HRA Resolution Book No. 6. D. APPROVED MODIFICATION TO SOUTH HENNEPIN HUMAN SERVICE PLANNING AGENCY CONTRACT TO INCLUDE PAYMENT OF ADDITIONAL $1500 HRA L. 5 E. APPROVED RESOLUTION RATIFYING PAST ACTIONS TAKEN BY RICHFIELD CITY COUNCIL RELATING TO TAX INCREMENT FUND ACCOUNTS HRA L. 6 HRA RESOLUTION N0.752 RESOLUTION APPROVING AND RATIFYING ACTIONS TAKEN BY THE RICHFIELD CITY COUNCIL; RELATING TO TAX INCREMENT FUND ACCOUNTS This HRA Resolution appears as HRA Resolution No. 752 in HRA Resolution Book No. 6. F. CONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING $300,000 REDUCTION IN IRREVOCABLE STANDBY LETTER OF CREDIT DATED OCTOBER - - 13, 1999 FOR ACCOUNT OF CSM INVESTORS, INC.; SHOPS AT LYNDALE, PHASE II HRA L. 7 HRA RESOLUTION NO. 753 RESOLUTION AUTHORIZING A $300,000 REDUCTION IN IRREVOCABLE STANDBY LETTER OF CREDIT DATED OCTOBER 13, 1999 FOR THE ACCOUNT OF CSM INVESTORS, INC. SHOPS AT LYNDALE, PHASE II This HRA Resolution appears as HRA Resolution No. 753 in HRA Resolution Book No. 6. G. APPROVED CONTINUATION OF COMMUNITY APARTMENT PROGRAM FOR 2000 HRA L. 8 M/Susag, S/ Stokes to approve the consent calendar. Motion carried 5-0. HRA Meeting Minutes -4- January 18, 2000 Item. #5 CONSIDERATION OF "CITY 'BELI~.A" DEVELOPMENT .CONCEPT AND AGREEMENT WITH GRAMERCY CORRORATIflN 'FOR 'EXCL.USIVE COaPERATI4N WITH. HRA IN EXPLORING FEASIBiLITV OF REDEVELOPING SOUTHWEST QUADRANT QF LYNDALE AVENUE AND 66TH STREET; G'RAMERCY REDEVELOPMENT PROJECT AREA. HRA :LETTER NO. 9 Executive Director Orduno reviewed HRA Letter No. 9 regarding consideration of the "City Bella" development concept and agreement with Gramercy Corporation for exclusive cooperation with HRA in exploring redeveloping the southwest quadrant of Lyndale Avenue and 66th Street. Mike Conlan, President of Gramercy Corporation, addressed the HRA concerning the proposed project. The project, which is in the concept phase, includes a central plaza, a tiered apartment building with first flpor ~pmmercial space and some townhomes. Chair Harms asked if a timetable has been determined for the development. Mr. Conlan stated they are going to proceed with soil sampling, surveys and marketing analysis. Commissioner Susag asked for a description of the property to be included in the project. Mr. Conlan responded by showing each fot to be acquired on a site plan. He stated that the proposed developer has talked tathe property owners in the affected area. Mr. Conlan said the plaza would be open to the public. Ernie Lindstrom, representing John Sieff, Lyndale Hardware, stated that Mr. Sieff has received another offer, but will work.with Gramercy on the project before looking at other offers. However, Mr. Lindstrom stated that Mr. Sieff and the Gramercy Corporation have some unresolved issues to complete. He asked that the HRA not select the Gramercy Corporation as the developer until the next HRA meeting to allow the negotiations to continue. Commissioner Sandahl asked if it would be helpful to separate the Lyndale Hardware property out of the project at this time. Community Development Director Palmborg stated that it may be advantageous to keep the project together. Mr. Conlan stated that it would be acceptable with them to separate the Lyndale Hardware property, but they would eventually like to include that parcel in the future. Commissioner Susag stated that he understood the action tonight to have the developer continue to work on the concept, but to give no approval or authority for design, tax increment or any other matter. n HRA Meeting Minutes -5- Executive Director Orduno stated that this is correct. January 15, 2000 M/Sandahl, S/Stokes to execute the Agreement with Gramercy Corporation without includin tq he Lyndale Hardware property, following payment of $25.000 by Gramercy Corporation. Motion carried 5-0. 1 Item #6 CONSIDERATION OF REPORT AND RECOMMENDATIONS-OF AFFORDABLE HOUSING REPLACEMENT POLICY ADVISORY COMMITTEE; MiTI'GATIVE AREA.. HRA LETTER NO 1 Q Executive Director Orduno reviewed HRA Letter No. 10 regarding reports and recommendations of the Affordable Housing Replacement Policy Advisory Committee. Jeanne Massey addressed the HRA with a summary of key facts and issues discussed by the Affordable Replacement Housing Policy Advisory Committee. She summarized a report that was published on January 10, 2000. M/Susag, S/Helmberger to receive the report and recommendations from the Affordable Replacement Housing Advisory Committee with acknowledgement to the committee members for their time and effort and to: 1. Direct staff to: a. Use the guideline ratio in considering program ideas that the committee introduced and redevelopment opportunities in general b._ Utilize the guiding values and principals in applications for Livable Communities resources from the Metropolitan Council c. Actively pursue affordable housing resources which keep available existing housing affordable d. Continue to emphasize communication strategies concerning the miti aq five area., redevelopment and affordable housing. 2. Reauest the Richfield Community Council to consider the role of a "Support System Task Force to develop a livabilityplan for the mitigative area. 3. Prepare correspondence from the HRA. which thanks Committee Members for their time and effort. Motion carried 5-0. HRA Meeting. Minutes -6- January 18, 2000 Item #7 CONSIDERATION QF CONTRACT FOR PRIVATE REDEVELOPMENT WITH CSM INVESTORS.II FOR REDEVELOPMENT DF WEST SIDE OF LYNDALE AVENUE AND EAST SIDE OF_ALDRICH AVENUE WITHIN LYNDALE GATEWAY REDEVELOPMENT AREA..: HRA LETTER NO 11 HRA Attorney John Dean`reviewed HRA Letter No. 11 regarding private redevelopment with CSM Investors II for redevelopment of the west side of Lyndale Avenue and the east side. of Aldrich Avenue within the Lyndale Gateway Redevelopment area and presented the latest changes to the CSM Agreement which included: • Recharacteri~ed prepayment wording • Rewording of relocation benefi#s section -including hold harmless of HRA John Dean summarized the key points of the CSM Agreement: 45,000 sq. ft. commercial area $685,000 cash payment by the HRA to the developer at closing $1,240,000 limited revenue note to developer $525,000 for public improvement costs is a separate -issue and covered in all three agreements He stated the CSM contract contains a guarantee for performance from the parent company, CSM Investors that obligates CSM Investors to repay the $685,000 to HRA for non-performance.: CSM also must bring $2.5 million to the closing. Commissioner Susag asked if future proposed reductions in the Commercial - Industrial property tax class rates were considered in these calculations. Sid Inman, Ehlers & Associates, stated that they did consider such reductions. M/Sandahl, S/Susag to approve the Contract for Private Redevelopment with CSM Investors II for the redevelopment of the west side of Lyndale Avenue and the east side of Aldrich Avenue within the Lyndale Gateway Redevelopment area and direct staff to investiaate the financial data and net worth and auarantee of CSM Investors to ensure they can cover the guarantee in the agreement. Motion carried 5-0. It®m #8 CONSIDERATION OF CONTRACT FOR 'PRIVATE REDEVELOPMENT WITH'MINN:STAR'$UILDERS FOR'REDEVELOPMENT OF EAST SIDE O. GARFIELD AVENUE WITHIN LYNDALE GATEWAY REDEVELOPMENT AREA. HRA LETTER NO. 12 1 HRA Meeting Minutes -7- January 18, 2000 HRA Attomey John Dean reviewed HRA Letter No. 12 regarding a contract for private redevelopment with Minnstan-Builders for redevelopment of the east side of Garfield Avenue within the Lyndale Gateway Redevelopment area. Mr. Dean passed out a new draft of the Minnstar.Agreement replacing the current draft as well as distributed a new page 11 with a change in 3.6 (a) (ii). Mr. Dean stated that this agreement is similar to the CSM Agreement although the guarantee is not as strong. M/Sandahl, S/Helmberger to approve the Contract for Private Redevelopment with Minnstar Builders for the redevelopment of the east side of Garfield Avenue within the Lyndale Gateway Redevelopment area. Motion carried 5-0. 1 Item #9 CONSIDERATION' OF SECOND SUPPLEMENT TO CONTRACT FOR PRIVATE REDEVELOPMEMT,WITH RICHFIELD SENIOR HOUSING, INC. FOR REDEVELOPMENT OF PORTION OF LYNDALE GATEWAY AREA. HRA LETTER NO. 13 HRA Attorney John Dean reviewed HRA Letter No. 13 regarding a second supplement to a contract for private redevelopment with Richfield Senior Housing, Inc. for redevelopment of a portion of Lyndale Gateway area. He stated the HRA approved this contract in ®ctober, 1999 and that the Second Supplement to the contract amends the original contract. The key points were summarized as follows: • Spells out the conveyance process for the City property to the developer • $37,100_is~he_prace_the-developer-will pay for the parcels • Recalculates the limited revenue note to be used • Recalculated principal balance and debt service • The project could be broken into counterparts for assessment agreement purposes • Provides a new Access Agreement with new dates Commissioner Susag asked about the schedule for the projects. including purchase of the residential properties and the timing for the issuance of the bonds. Community Development Manager John Stark responded to the residential properties purchase schedule. Sid Inman, Ehlers & Associates, responded that the bonds were being marketed at this time. HRA Meeting Minutes -8- January 15, 2000 M/Sandahl, S/Susag to approve a second supalement to the contract for Private Redevelopment with Richfield Senior Housina Inc for redevelopment of portions of the ~ndale Gateway area. Motion carried 5-0. Item #10 CONSIDERATION OF EXTENSION OF AGREEMENT WITH RYAN COMPANIES, US,,'1NC. TO PROVIDE PLANNING AND DEVELOPMENT ASSISTANCE IN PENN AND 66TH'STREET AREA. 'HRA'LETTER NO. 1~ Executive Director Orduno reviewed HRA Letter No. 14 regarding an Extension of Agreement with Ryan Companies, US, Inc. to provide planning and development assistance in the Penn and 66th Street area. M/Helmberger, S/Susag to approve an Extension of Agreement with Ryan Companies~,US Inc to provide planning and development assistance in the Penn and 66th Street area. Motion carried 5-0 Item #11 CONSIDERATION' OF MARI4ETING CANDLEWOOD RESTAURANT PARCEL TO CEDAR AVENUE BRIE3GE PROJECT BUSINESS RELOCATEES. 'HRA LETTER NO. 15 Executive Director Orduno reviewed HRA Letter No. 15 regarding the marketing of Candlewood Restaurant parcel to Cedar Avenue Bridge Project business relocatees. Commissioner Sandahl asked If the Candlewood Hotel would have any say in what the use would be for this parcel. Community Development Director Palmborg replied they have no legal right, but they have.contacted Candlewood Hotel and staff will look at uses that are compatible with the Candlewood Hotel property. He stated the final judgement of which business goes there, if any, would be decided by the HRA. Commissioner Susag asked why the relocated Lyndale Gateway businesses were not included in this area, especia_ Ily since the Gateway Pro_ ject appears to be farther ahead than the Cedar Avenue Project. . Community Development Director Palmborg responded that the Cedar Avenue Project is ahead of the overall Gateway Project. However, the east side of the Lyndale Gateway area already has relocation projects in process. 1 HRA Meeting Minutes -9- January 18, 2000 M/Stokes, S/Sandahl of marketing Candlewood Restaurant parcel to the Cedar Avenue Bridge Project business relocatees. Motion carried 5-0. Item #12 EXECUTIVE DIRECTOR'REPORT Chair Harms reported that the Governor's Airport Community Stabilization Funding .-.Task Force work is done and a report is due out soon. Commissioner Susag stated that this was his last HRA meeting. Chair Harms commended Commissioner Susag for his years of service on the HRA. 1 Item #12 CLAIMS AN©'PAYROLL M/Sandahl, S/Susag that the following claims and payrolls be approved: FIRSTAR BANK Section 8 Checks: 14438 - 14556 HRA Checks: 21181 - 21405; 21449 - 21 51 1 Motion carried 5-0. ADJOURNMENT $ 125,725.49 ~ 404,655.16 The meeting was adjourned by unanimous consent at 9:05 p.m. • February 22, 2000 f~ E. Harms Ord"dno Director Acting City Clerk