01-16-2001
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HOUSING AN® RE®E\OEL.OPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 16~ 2001
CALL TO ORDER
The meeting was called to order by Vice Chair Helmberger at 7:00 p.m.
ROLE CALL
HRA Members
Present. Thomas Harms (arrived at 7:05); Joan Helmberger; Michael
Sandahl; Kristal Stokes, and Dan Linnihan.
Staff Present. Samantha Orduno, Executive Director; Steven Devich, Acting
Deputy City Clerk; Bruce Palmborg, Community Development
Director; and John Stark, Community Development Manager.
Item #it1 CONSIL~ERATIOIV OE ELECTFO(11 OE HRA pFFICERS FOR 2001 S.R. tVO. 1
M/Sandahl, S/Stokes that the following be elected as officers of the HRA for 2001:
Thomas Harms, Chair
Joan Helmberger, Vice-Chair
Michael Sandahl, Secretary
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Motion carried 5-0.
HRA Meeting Minutes -2- January 16, 2001
Item #2 APPROVAL OF MINUTES
M/Linnihan, S/Stokes to approve the minutes of the Regular HRA Meeting of
December 18. 2000.
Motion carried 5-0.
Item #3 OPPt~RTUNITY ftJR CITIZENS TO ADDRESS THE HRA
Carl Cornell, 6615 Lake Shore Drive #807, addressed the HRA regarding the City
Bella proposal to~build on lots 16, 17 and 18. He suggested that the Gramercy
Corporation purchase the Lynch property and trade it for lot 16 and use it as a gardening
plot. Mr. Cornell distributed a summary of his position to the HRA.
Item #4 HRA APPRCIVAL OF AGENDA
Commissioner Linnihan requested that Item 51 be removed from the Consent
Calendar and be placed on the agenda for consideration as Item 5K.
Item #5 CONSENT GALENDAR
A. Approved designating Steven L. Devich, Administrative Services Director, as HRA
Acting Executive Director for 2001 S.R. No. 2
B. Approved resolutions designating HRA official depositories for 2001 S.R. No. 3
HRA RESOLUTION N0.798
RESOLUTION DESIGNATING THE RICHFIELD BANK AND TRUST COMPANY
A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD
FOR THE YEAR 2001 AND APPROVING COLLATERAL
HRA RESOLUTION N0.799
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS
AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND
REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2001
I
HRA Meeting Minutes -3- January 16, 2001
HRA RESOLUTION NO. 800
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2001
These HRA Resolutions appear as HRA Resolution No.'s 798, 799 & 800 in HRA
Resolution Book No. 6.
C. Approved designating Richfield Sun-Current as HRA official newspaper for 2001 S.R.
No. 4
HRA RESOLUTION NO. 801
RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER
FOR 2001
This HRA Resolution appears as HRA Resolution No. 801 in HRA Resolution Book
No. 6.
D. Approved Department of Housing and Urban Development's proposed payment
standards, effective February 1, 2001 S.R. No. 5
E. Approved motion ratifying staff action for settlement of condemnation proceedings
pertaining to property at 7621 Lyndale Avenue S.R. No. 6
F. Approved motion ratifying staff action for settlement of condemnation proceedings
pertaining to property at 7601 Lyndale Avenue S.R. No. 7
G. Approved resolution authorizing issuance of Certificates of Completion to John B.
Mahoney Construction Inc. for 7613, 7619 and 7623 Nicollet Avenue; Karla K.
Dagnault for 7532 Girard Avenue; and Spencer Dahl Construction, Peter C. Brandt
and Lisa M. Bystedt for 6901-12th Avenue S.R. No. 8
HRA RESOLUTION NO. 802
RESOLUTION AUTHORIZING ISSUANCE OF A CERTIFICATE OF COMPLETION FOR
THE NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT
7613, 7619, 7623 NICOLLET AVENUE SOUTH, 7532 GIRARD AVENUE SOUTH,
AND 6901-12th AVENUE SOUTH
This HRA Resolution appears as HRA Resolution No. 802 in HRA Resolution Book
No. 6.
H. Approved execution of contract with Julianne Schwietz for Community Apartment
Program beginning February 1, 2001 for 12 months S.R. No. 9
I. Removed from the consent calendar and placed on the regular agenda for
consideration as Item 5K.
HRA Meeting Minutes -4- January 16, X001
J. Approved resolution modifying redevelopment plan for Richfield Redevelopment
Project Area and modifying tax increment financing plans for Gramercy tax increment
financing district, Urban Village tax increment financing district, Richfeld
Rediscovered 1999 tax increment financing district, A-5 tax increment financing
district, and B-5 tax increment financing district $,R. No. 11
HRA RESOLUTION NO. 803
RESOLUTION MODIFYING THE REDEVELOPMENT PLAN
FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND
MODIFYING THE TAX INCREMENT FINANCING PLANS FOR THE
GRAMERCY TAX INCREMENT FINANCING DISTRICT;
THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT;
THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT; THE
A-5 TAX INCREMENT FINANCING DISTRICT; AND
THE B-5 TAX INCREMENT FINANCING DISTRICT
This HRA Resolution appears as HRA Resolution No. 803 in HRA Resolution Book
No. ~.
Commissioner Linnihan requested Item I be placed on the regular agenda as 5K.
M/Sandahl, S/Helmberger to approve the consent calendar as amended.
Motion carried 5-0.
Item #5K CONSIDERATION OF APPROVAL OF REQUEST FOR 75-DAY
EXTENSION' FOR REMOVAL OF'~CLOSING CONTINGENCIES FROM
CSM INVESTORS N, INC, AND MODIFY SCHEDULE Ft~R PUBLIC
IMPROVEMENTS, ~YMDRLE .GATEWAY QEVELOPMENT SR, NO. 1Q
Executive Director Orduno briefly introduced this item and asked Community
Development Manager Stark to review the Staff Report.
Community Development Manager Stark reviewed revised Staff Report No. 10
regarding consideration of a request fora 75 day extension for removal of closing
contingencies from CSM Investors II, Inc. with the stipulation that CSM enter into an
agreement with the City of Richfield addressing the schedule and cost allocation of public
improvements as defined in Article 6 of the Contract for Private Redevelopment. Absent
such an agreement within 30 days of this approval, the extension shall be deemed null and
void.
Commissioner Sandahl asked when the 30-day period would start.
L~'
Mr. Stark responded that it starts today. V~thin 30 days of today CSM must enter
into an agreement with the City for public works improvements for a cost allocation.
HRA Meeting Minutes -5- January 16, 2001
Commissioner Sandahl asked for further clarifications.
Community Development Manager Stark explained the three potential contingency
provisions.
Chair Harms stated that he is concerned now, as he was this past summer, that
CSM is making progress in getting a major tenant.
Mr. Stark stated that staff has checked with Walgreen as to their position in this
matter. Mr. Stark stated that Walgreen told him that they open about 300 new stores per
year, and they'll get to it when they get to it.
Commissioner Linnihan stated that he was concerned about the lack of progress in
the project and the appropriate course of action needed at this point.
Commissioner Sandahl stated that this seems to be in a darned if you do, darned if
you don't position. The issue is to move this project along and not leave the businesses in
that area hanging on longer.
Mr. Stark reviewed the following three significant issues:
1. February 1 date and condemnation timetable
2. Street work
3. Tenants
Chair Harms asked Mr. Kornberg of CSM to address the HRA on this project.
Murray Kornberg, /ice President of CSM, addressed the HRA regarding this item.
Mr. Kornberg stated that it was necessary to get this entire project leased up before
making purchase offers and giving non-refundable earnest deposits. He stated that CSM
was anxious to avoid the pitfalls they incurred on the Interchange West project. Mr.
Kornberg stated that CSM's ability to proceed with this project is contingent upon leasing
this major tenant, and that they have no incentive to delay this project.
Mr. Kornberg also stated this proposed store is scheduled for the fiscal year of 2002
on Walgreen's timetable. He said Walgreen would not accept delivery of this store any
earlier than October 1, 2001. However, Mr. Kornberg believes that Walgreen still desires
this site.
Mr. Harms asked Mr. Kornberg why the HRA shouldn't just defer this item until CSM
comes back with a lease.
Mr. Kornberg stated that this option is certainly available to the HRA. He also
stated that CSM will not be ready to ask for condemnation on February 1, 2001. He
concluded that he did not know what impact deferring this decision would have on the
negotiations with Walgreen.
Chair Harms stated that an alternative motion would be to table this action because
there appears to be more questions than answers regarding this project.
HRA Meeting Minutes
-6-
January 16, 2001
Commissioner Sandahl stated that he did not agree with that concept. He felt that
tabling it would only increase the cloud of uncertainty for the business owners in the area.
Mr. Sandahl feels that the staff alternate recommendation would be an action he could
support.
Commissioner Linnihan stated that he could support the alternate recommendation
with the added stipulation that CSM immediately (after February 15 signed lease is
delivered) begin talking to business owners to find if there are hardship needs.
Chair Harms and Commissioner Linnihan both felt that during this 30 day period,
CSM should start to informally begin tdlking to property owners.
M/Linnihan, S/Stokes that a 75-day extension for removal of Closing Contingencies
from CSM Bnvestors II. Inc. with the stipulation that CSM enter into an agreement with the
City of Richfield addressing the schedule and cost allocation of public improvements as
defined in Article 6 of the Contract fir Private Redevelopment. Absent such an agreement_
withir~30 .days of this approval, the extension shall be deemed null and void. and to
approve the recommended' action with the added stipulation that CSM must provide staff
with a copy of a.lease with their primary tenant within- 30 days without which the extension
is to become null and void and ex~are~ i®n ®f intent to begin preliminary discussion with the
propertyowners affected. -
Motion carried 5-0.
Item #6 CONSIDERATIO OF RESOLUTIONS 'REGARDING SECOND
AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT AND
ISSUANCE 4F LIMITED REVENUE TAX INCREMENT NOTES RELATED
TO G'RAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE S.R.
Nfl.92
Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 12
considering .resolutions regarding asecond- amendment to a contract for private
redevelopment and the issuance of limited revenue tax increment notes related to
Gramercy Park Cooperative at Lake Shore Drive.
Commissioner Sandahl asked if this had any potential financial negative impact on
the HRA?
Mr. Nordquist stated that there is no impact.
Chair Harms asked about the structure of the bond issues and the adjusted interest
rate.
Dan Greensweig, Kennedy & Graven, stated that the notes are structured with a not
to exceed amount. He stated that there is no credit risk to the HRA.
u
HRA Meeting Minutes -7- January 16, 2001
Dick Ward, John G. Kinnard & Company, stated that both notes cannot exceed the
,; ..a. ,
9.95 rate and have a neutral creditaffect on the HRA:°
M/Sandahl, S/Helmberger that the following HRA resolutions be adopted, that thev
be spread in the HRA resolution book and they be made part of these minutes:
HRA RESOLUTION NO. 804
RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM,
TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS LIMITED
REVENUE TAX INCREMENT NOTE, SERIES 2001A; APPROVING AMENDMENT TO
CONTRACT FOR PRIVATE REDEVELOPMENT
HRA RESOLUTION NO. 805
1
RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM,
TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS LIMITED
REVENUE TAX INCREMENT NOTE, SERIES 2001 B
Motion carried 5-0. These HRA Resolutions appears as HRA Resolution No.'s 804
and 805 in HRA Resolution Book No. 6. ._ .
Item ~7 CONSIDERATION OF ISSUANCE OF CERTIFICA'~E OF COiVIPt,ETION
FOR GIRAMERCY PARK COOPERATIVE AT LACE SHORE DRIVE SeR.
N0. 13;
Housing and Redevelopment Manager Nordquist reviewed Staff Report No. 13
regarding the issuance of a Certificate of Completion for Gramercy Park Cooperative at
Lake Shore Drive.
M/Sandahl, S/Linnihan to authorize the issuance of a Certificate of Completion for
Lot 1 Block 1. Gramercy Park. Richfield -the Gramercy Park Cooperative.
Motion carried 5-0.
[]
Item #8 CANCELLATION OF PUBLIC HEARING `(3N BUSINESS SUBSIDY
AGREEMENT F4R CITY BELLA PROJECT; PROJECT UPDATE`
PROVLDED S.R. NO. 14'
Chair Harms cancelled this item without objection.
Housing and Redevelopment Manager Nordquist reported on the City Bella project,
HRA Meeting Minutes -8- January 16, 2001
Ernie Lindstrom, 7406 Fremont Avenue, representing Lyndale Hardware, addressed
the HRA regarding the expiration of the option of Gramercy Corporation with respect to the
purchase of Lyndale Hardware. He stated that Lyndale Hardware will go dark on or about
June 1, 2001. Mr. Lindstrom stated he was asked by Lyndale Hardware owner, John Sief,
to make sure that the HRA was fully aware of this situation.
It®m #9 CONSIDERATION' OF ISSUANCE OF CERTIFICATE OF COMPLETION
FOR URBAN 101LLAG'E (ALSO KNOWN AS WOODLAKE CENTRE) IN
ACCORDANCE WITH GQNTRACT` FOR> PRNATE REDEVELOPMENT
.BETWEEN HRA AND RICHFIELD STATE AGENCY, INC, S:R. 'NO. 15
Housing end Redevelopment Manager Nordquist reviewed Staff Report No. 15
regarding the issuance of a Certiii~ate of Completion for Urban Village (also known as
Woodlake Centre) in accordance with a contract fQr private redevelopment between HRA
and Richfield State Agency.
M/Sandahl/ SlStokes to authorize the issuance of a Certificate of Completion for
Richfield Urban Village according t~ o fhe._Rlat thereof and in accordance with the Contract
for Private Redevelopm~:nt between the_Housing and Redevelopment Authority and
Richfield State Agency. Inc.
Motion carried 5-0.
Item #10 CONSIDERATION Of RESOLUTION RECOGNIZING TERMINATION OF`
ASSESSMENT AGREEMENT FOR RICHFIELD MEDICAL CI..INIC
PROJECT S.R. NO. 16:
Housing and Redevelopment Manager Nor~quist reviewed Staff Report No. 16
regarding a resolution recognizing the Termination of Assessment Agreement for Richfield
Medical Clinic project.
M/Helmberger, S/Stokes
HRA RESOLUTION N0.806
RESOLUTION RECOGNIZING TERMINATION OF
ASSESSMENT AGREEMENT
Motion carried 5-0. This HRA Resolution appears as HRA Resolution No. 80G in
HRA Resolution Book No. 6.
1
HRA Meeting Minutes -9= January 16, 2001
Item #11 EXECUTIVE DIRECTOR REPORT
None.
Item #12 - CLAIMS AND PAYROLL
M/Sandahl, S/Stokes that the following claims and payrolls be approved:
FIRSTi4R ~AIVK
Section 8 Checks: 101417-101533 ~ 138,483.10
HRA Checks: 24502-24610; 25019-25056 $ 203,522.65
Motion carried 5-0.
ADJt~URNMENT
The meeting was adjourned by unanimous co tat 8:28 p.m.
Date A roved: Februa 20, 2001
~N
e~6 L. Devich
Acting City Clerk
ILJ