09-02-99 Special
CITY COUNCIL AND SPECIAL HOUSING
AND REDEVELOPMENT AUTHORITY
MEETING MINUTES
Richfield, Minnesota
September 2, 1999
CALL TO ORDER
The meeting was called to order by Mayor Pro Tem Susag and Housing and
Redevelopment Chair Harms at 5:00 p.m.
ROLL CALL
Council
Members Present:Russ Susag, Mayor Pro Tem; Sue Sandahl; and Kristal Stokes.
HRA Members
Present:Thomas Harms; Joan Helmberger; Kristal Stokes; Michael Sandahl
and Russ Susag.
Council Members
Not Present:Martin Kirsch andSusan Rosenberg
Acting City Manager Devich stated that Council Member Rosenberg and Mayor
Kirsch were out of the City and unavailable to attend the meeting this evening.
M/Sandahl, S/Stokes to determine the absences of Council Member Rosenberg and
Mayor Kirsch as excused absences.
Motion carried 3-0.
StaffPresent :Steven Devich, Acting City Manager/Acting Executive Director;
Thomas Ferber, City Clerk; Bruce Palmborg, Community
Development Director; Tom Foley, Transportation Engineer; Jon
Starks, Community Development Manager; and John Dean, HRA
Attorney.
Special Council and HRA Meeting Minutes-2-September 2, 1999
Item #1CONSIDERATION OF TERMS OF PROPOSAL TO POTENTIAL END-USER
(DEVELOPER) FOR INTERCHANGE WEST REDEVELOPMENT PROJECT.
HRA LETTER NO. 10
Acting City Manager/Acting Executive Director Devich reviewed HRA Letter No. 10
regarding consideration of the options for the terms of a proposal to a potential end-user of
the Interchange West site. He presented and discussed issues regarding the following
options:
x
Issuance of a general obligation tax increment bond in the amount of $40 million
and using the bond proceeds for site assembly costs.
x
Issuance of a $750,000 pay as you go note to the proposed car dealership to
offset site assembly costs.
x
Allow commercial development of the entire site.
x
Do not require the development to contribute to the fiscal disparities account.
x
Revise the TIF boundaries to include only portions of the development on which
occupied buildings are located.
x
Issuance of a $7.1 million general obligation tax exempt bond for the
construction of the Penn Avenue/I-494 bridge.
Housing and Redevelopment Authority and City Council Members asked questions
regarding the various options with HRA Attorney John Dean, Community Development
Director Palmborg, Sid Inman, Ehlers & Associates, and Transportation Engineer Tom
Foley responding to the following issues:
x
Pay-as-go versus General Obligation Bond Risks
x
Debt service payments
x
Assessment deficiency agreements
x
Site assembly costs
x
Fiscal disparities formula
x
Fiscal disparity alternatives and impacts
x
TIF district duration options and impacts
x
Current office market conditions
x
Negotiation process
x
End user minimum requirements
x
Bond issue types
x
Penn Avenue bridge improvement costs and timing
M/Harms, S/Stokes that the Richfield Housing and Redevelopment Authority
recommends to the Richfield City Council that the City of Richfield submit a proposal to
this developer designated to meet their financial commitments as outlined by their primary
developer to us and that we propose to them that the best way to meet those commitments
to them would be by the "A" approach as presented by Sid Inman which is to propose to
create a tax increment financing district 25 years in length with fiscal disparities coming
within the district; issuing the maximum amount of taxable debt available and provide the
Special Council and HRA Meeting Minutes-3-September 2, 1999
rest to them in the form of pay as you go with the understanding that negotiation possible
on a 16 year approach although it is not the preferred option.
Motion carried 5-0.
M/ Stokes, S/Sandahl that the Richfield City Council adopt the recommendations of
the Housing and Redevelopment Authority as presented.
Motion carried 3-0.
ADJOURNMENT
Mayor Pro Tem Susag directed Community Development Director Palmborg to
send a letter to all residents and businesses in the Interchange West area to inform them
as to what has occurred.
M/Harms, S/Helmberger to adjourn the Special HRA Meeting.
Motion carried 5-0.
M/Sandahl, S/Stokes to adjourn the Special City Council Meeting.
Motion carried 3-0.
The Special Meeting of the Richfield City Council and the Richfield Housing and
Redevelopment Authority was adjourned at 5:50 p.m.
Date Approved:
Martin J. KirschMayor
Thomas P. FerberSteven L. Devich
City ClerkActing City Manager