06-05-23 Special HRA
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Meeting
June 5, 2023
CALL TO ORDER
Chair Vrieze Daniels called the meeting to order at 7:00 p.m. in the Council Chambers.
HRA Members
Present:
Erin Vrieze Daniels, Chair; Mary Supple; Sean Hayford Oleary; and Gordon Hanson
HRA Members Absent
Staff Present:
Guests:
Melissa Poehlman, Executive Director; Julie Urban, Assistant Community Development Director; and Dustin Leslie, City Clerk.
Julie Eddington, HRA Attorney; John Nolde, Dominium Attorney;
Khayree Duckett, Dominium Attorney.
OPEN FORUM
Chair Vrieze Daniels opened the public forum. No one spoke and the forum was closed.
ITEM #1 APPROVAL OF THE AGENDA
M/Supple, S/Hanson to approve the agenda.
Motion carried: 4-0
ITEM #2
PUBLIC HEARING TO CONSIDER A RESOLUTION AUTHORIZING THE ISSUANCE OF $10 MILLION IN MULTIFAMILY HOUSING REVENUE BONDS FOR THE BENEFIT OF THE UPPER POST FLATS HOUSING DEVELOPMENT AND RELATED
POST-ISSUANCE COMPLIANCE POLICY
Executive Director Poehlman gave the report and spoke about the conduit bond process as well as the benefits to the HRA.
Chair Vrieze Daniels opened the public hearing.
Alex Asmus – 6401 Harriet Ave S: Asmus pointed out that the project would be beyond Richfield city limits in Fort Snelling. He also spoke about troubling tenant records in regard to
the developer Dominium.
Ann Dougherty – 6844 James Ave S: Dougherty spoke about a Section 8 resident she was helping to find housing. She stated it has been difficult helping her find a rental in Richfield
and was in support of helping Dominium create more affordable housing in the area. She also stated she would like to see more affordable housing units for families in the project.
Mary Best – 6727 Elliot Ave S: Best spoke about how the plan would add around 200 students to the Richfield School District. She also recited statistics about student proficiencies
within the district and stated the School District was failing students and should not be allowed to add more through this project. She further stated that the project would be closer
to Mendota Heights and could benefit them more.
Janet Coleman – 6632 Elliot Ave S: Coleman spoke about comments from the Columbia Heights Mayor which were published in the Star Tribune. Resident noted that the Mayor spoke negatively
about Dominium and was not in favor of approving the bond.
Larry Ernster – 6727 Elliot Ave S: Ernster stated this project would not benefit Richfield with Dominium’s reputation. Ernster also spoke about unfavorable comments made by the Mayor
of Columbia Heights in regard to Dominium which were published in the Star Tribune.
Kathleen Balaban – 6526 Stevens Ave S: Balaban questioned the public hearing process and stated the community should have more input on projects.
Ruane Onesirosan – 2421 W. 65th St.: Resident spoke against the bonding and did not want her tax dollars going toward the project. She also spoke about Dominium’s negative reputation.
Linda Kohlman – 6430 Logan Ave S: Kohlman spoke about how the city has more pressing issues than this project and asked to put the money elsewhere.
There were no more speakers. M/Hanson, S/Hayford Oleary to close the public hearing.
Motion carried 4-0
Commissioner Hayford Oleary asked if there would be any financial stake from the city if they were to approve the conduit bonds.
HRA Attorney Eddington stated the conduit bond was passing from the Minnesota Department of Natural Resources (DNR) to Dominium with the Richfield HRA acting as a passthrough conduit.
She further stated there would be no financial stake for the city or HRA.
Commissioner Hayford Oleary asked if $10 million would be available to the city if the HRA denied the request. HRA Attorney Eddington responded that it would not be available to the
city.
Commissioner Hayford Oleary asked what would happen if Dominium defaults on the bond. HRA Attorney Eddington stated that defaults were extremely rare but if it were to happen, the developer
would pay the costs.
Commissioner Hayford Oleary asked if there was a default would the city’s credit be negatively impacted in any way. HRA Attorney Eddington responded that if there was a default, neither
the city nor the HRA’s credit would be impacted in any way.
Commissioner Hayford Oleary asked the developer representatives what would happen if the request was denied. Dominium representative Duckett stated that there was currently no backup
plan if the bonding request was denied.
Commissioner Supple asked if denial would affect the current tenants. Dominium representative Noldy stated denial would not affect current tenants in any way.
Executive Director Poehlman asked if the developer was unable to get the $10 million in bond funding, would they look elsewhere for funding? Dominium representative Noldy stated that
they would look elsewhere.
Commissioner Hanson asked the developers why they chose Richfield for this project. Dominium representative Noldy stated that they chose Richfield for geographical reasons and because
it would benefit their school district.
Commissioner Supple asked who had the ability to inspect units to ensure quality for tenants. Executive Director Poehlman stated inspections would mostly be done by the State of Minnesota
but the city could also request to perform inspections.
Commissioner Supple asked if there were plans to increase accessibility. Executive Director Poehlman stated that since this was a historic preservation project, there would be difficulties
with ensuring accessibility features. However, some accessibility features such as ramps would be included where they could be.
President Vrieze Daniels spoke about low income housing and asked if rent would be lower for qualified tenants. Executive Director Poehlman spoke about tenant qualification requirements
and how rent would be set for tenants. She further stated that rates were set by the Department of Housing and Urban Development (HUD).
M/Hayford Oleary, S/Hanson to approve a resolution authorizing the issuance of $10 million in multifamily housing revenue bonds for the benefit of the Upper Post Flats housing development
and related Post-Issuance Compliance Policy.
Commissioner Hanson stated there was a dire need for affordable housing and that this project was an opportunity to offer deep affordability. He further stated this would benefit the
School District by getting more students.
Commissioner Hayford Oleary stated not approving this project would not offer any advantages to Richfield.
Commissioner Supple spoke about the comments from residents during the public hearing and encouraged Dominium to take their criticisms to hear.
Motion carried 4-0
ITEM #3
HRA DISCUSSION ITEMS: UPDATE ON DISCUSSIONS AND ACTIONS RELATED TO THE REQUEST BY BEST BUY TO TERMINATE THE MINIMUM ASSESSMENT AGREEMENT FOR THE CORPORATE CAMPUS PROPERTY AT 7601 PENN
AVENUE SOUTH
Executive Director Poehlman gave an update to the Commissioners.
Commissioner Supple asked which entities would vote to approve the request. Executive Director Poehlman stated approval would come from the City Council, the School District, and the
County. She further stated the HRA would sign the agreement.
Commissioner Supple asked about the timeline. Executive Director Poehlman stated the agreement would have to be executed by all parties by June 30.
ITEM #4
ADJOURNMENT
Before adjournment, Assistant Community Development Director Urban gave the Commissioners an update on the housing legislation passed during the most recent legislative session.
The meeting was adjourned by unanimous consent at 8:15 p.m.
Date Approved: June 20, 2023
Erin Vrieze Daniels
HRA Chair
Dustin Leslie Melissa Poehlman
City Clerk Executive Director