11-27-2000 Special0
SPECIAL HOUSING
AND REDEVELOPMENT AUTHORITY
MEETING MINUTES
Richfield, Minnesota
November 27, 2000
CALL TO ORDER
The meeting was called to order by Chair Harms at 5:00 p.m.
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ROLL. GALL
HRA Members
Present: Thomas Harms; Joan Helmberger; Michael Sandahl; Kristal Stokes
and Dan Linnihan.
Staff Present: Samantha Orduno, Executive Director; Steven Devich, Acting City
Clerk; and John Stark, Community Development Manager.
Item #1 CONSIDERATION OF F7R5T AMENDMENT TO CONTRACT FOR
PRiUATE DEVELOPMENT WITH BEST BUY CO., ING. {RECONVENEQ
FROM NOVEMBER 20 2000} S. R. NC). 79
Executive Director Orduno stated that a new staff report has been prepared for this
item and has been distributed this evening.
Community Development Manager John Stark reviewed Staff Report No. 79 regarding
consideration of a first amendment to contract for private development with Best Buy Co.,
Inc. (reconvened from November 20, 2000).
Mr. Stark detailed the differences in the funding for Best Buy and the Penn Avenue
Bridge between the original agreement and the proposed new funding agreement.
Special HRA Meeting Minutes -2- November 27, 2000
Mr. Stark stated that the City received a letter from MnDOT stating that $6.7 million
will be available to the City for the Penn Avenue Bridge. He stated that other funding
sources were available to pay for the MnDOT $6.7 million share, if it was not available. Mr.
Stark added that if the total bridge cost is over estimate, there are no funds identified to cover
sucf~ an overage.
Mr. Stark stated that a new TIF Plan would have to be adopted subsequent to this
action for additional funding assistance to Best Buy.
Commissioner Sandahl asked if we are seeking additional funding for this project.
Mr. Stark replied that we are working with Congressman Sabo's office and have. talked
with Phil Riveness from the Met Council.
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 NO. 794
RESOLUTION APPROVING FIRST AMI~NDMENT
TO CONTRACT FOR PRIVATE DEVELOPMENT
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 794 in HRA
Resolution Book No. 6.
Item #2 PUBLIC HEARING REGARDING RESOLUTION. AUTHORIZING
ADOPTION OF BUSINESS SUBSIDY. AGREEMENT WITH BEST BUY,
CO., INC. (RECONVENED FROM NOVEMBER 20, 2000) S. R. NO. 80
Executive Director Orduno explained the need for the adoption of a Business Subsidy
Agreement. She stated that a new staff report has been prepared and distributed for this
item.
Community Development Manager John Stark reviewed Staff Report No. 80 regarding
consideration of a resolution authorizing adoption of a business subsidy agreement with Best
Buy Co., Inc. (reconvened from November 20, 2000).
Larry Wozniczka, 6744 Wentworth Avenue, asked the interest rate of the $48 million
pay as you go note and when it would be issued.
Sid Inman, Ehlers & Associates, Inc., answered that the interest rate is 8%. He stated
that they certify the exact cost and then the note will be issued.
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Mr. Wozniczka asked if the City has done adequate research on the math regarding
the financial feasibility of this proposal.
Special HRA Meeting Minutes -3- November 27, 2000
Mr. Inman responded that the 5% Housing Trust Fund and other City funds are ahead
of Best Buy's funding. He stated that if the HRA issued bonds for the project the bonds
would be taxable and go for about 8%. In essence, the financial risk of the HRA is assumed
by Best Buy.
M/Helmberger, S/Stokes to close the public hearing..
Motion carried 5-0.
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 NO. 792
RESOLUTION AUTHORIZING THE ADOPTION OF
BUSINESS SUBSIDY AGREEMENT WITH BEST BUY CO., INC.
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Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 792 in HRA
Resolution Book No. 6.
Item #3 CONSIDERATION' Of RESOLUTION REGARDING APPROVAL OF
MQDIFICATION TO TAX INCREMENT FINANCING PLAN FOR
INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT
FINANCING DISTRICT (RECONVENED FROM NOVEMBER 20, ~t1{}0)
S. R. NO. 81
Executive Director Orduno stated that this item needs to be taken off the agenda. She
stated that this item will be brought to the HRA in January.
Item #4 PUBLIC HEARING REGARDING RESOLUTION AUTHORIZING
ADOPTION OF BUSYNESS SUBSIDY AGREEMENT WITH' CSM
INVESTORS II, JNC. RELATED TO DEVELOPMENT WITHIN LYNDALE
GATEWAY REDEVELOPMENT` AREA {RECONVENED FROM
NOVEMBER ZD, 2000) S. R. NO.82`
Community Development Manager John Stark reviewed Staff Report No. 82 regarding
consideration of a resolution authorizing adoption of a business subsidy agreement with
CSM Investors II, Inc. related to development within Lyndale Gateway Redevelopment Area
(reconvened from November 20, 2000).
Mr. Stark stated that this item will also be considered by the City Council.
Special HRA Meeting Minutes
-4-
November 27, 2000
Steve Sawitzke, A-1 Foam & Fabric, 7608 Lyndale Avenue, addressed the HRA
expressing his disappointment with the process used by Murray Kornberg of CSM in putting
this project together. He asked that the City and. HRA do a better job of keeping business
owners in the area informed.
Executive Director Orduno sta#ed that we will take extra efforts to keep businesses in
the affected area informed of .progress on the project.
M/Sandahl, S/Stokes to close the public hearinq.
Motion carried 5-0.
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 NO. 793
RESOLUTION AUTHORIZING THE ADOPTION OF
BUSINESS SUBSIDY AGREEMENT WITH C.S.M. INVESTORS II, INC.
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 793 in HRA
Resolution Book No. 6.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 5:33 p.m.
Date pproved: December 18, 2000
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Steven L. Devich
Acting City Clerk
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L'
om Harms