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05-20-1996 CC-HRA-PCJ HRA MINUTES Richfield, Minnesota Special Joint City Council and Housing and Redevelopment Authority Meeting with the Planning Commission May 20, 1996 The meeting was called to order by Chair Harms at 6:30 p.m. City Council Members Present Martin J. Kirsch, Mayor; Don Priebe; Susan Rosenberg; Michael Sandahl; and Russ Susag. HRA Members Present. Thomas Harms; Joan Helmberger; Vem Luettinger; Michael Sandahl; and Russ Susag. Staff Present: James Prosser, Executive Director; Steven Devich, Acting City Clerk; and Bruce Palmborg, Community Development Director. Item #1 Planning Commission Chair Dan Linnihan summarized Council Letter No. 163 /HRA Letter No. 22 regarding consideration of acceptance of the Lyndale Gateway Study from Hoisington Koegler Group, Inc. Special HRA Meeting Minutes -2- May 20, 1996 c Fred Hoisington, Hoisington Koegler Group, Inc., addressed the concurrent meeting and presented a brief summary of the major points of the Gateway Study and described the process used to. complete the study. He stated that this is a mixed use concept including retail, office and residential components which focus on the 7600 block of Lyndale. Mr. Hoisington stated that the Gateway project would be of a local focus as opposed to the regional focus of the ILN district along 77th Street. The recommendations for funding $4.5 million of this project from land sale proceeds, project tax increment, fiscal disparities contribution, Livable Communities Act funding and MSA funds. However, there still remains another $3.9 million of project costs to be funded. Fred Ryan, Ryan Properties, and Russ Walzer spoke in opposition to the project. They indicated that they owned most of the buildings on the east side of Lyndale Avenue between 76th and 77th Streets. Mr. Ryan read a letter from the approximately 27 business owners in the Lyndale Gateway area opposing the Gateway project. Chair Harms asked how long the owners have owned the properties. Mr. Ryan and Mr. Walzer responded that it has been between 12 -15 years. Mr. Harms asked why they had not approached the HRA in the past to upgrade the properties. They indicated that they have been concerned for several years with the property being taken by condemnation. Jan Berge, 7345 Aldrich Avenue, spoke in opposition to closing off 75th Street at Lyndale Avenue because it would bring more cars into their neighborhood. She stated that she and a number of her neighbors are concerned about or do not support the project. Ms. Berge also stated that she felt that she wasn't listened to at the meetings. City Manager /Executive Director Prosser stated that he understood her concerns and that in the process of evaluating traffic issues citizens will be directly involved, together with staff, in making those decisions. Mr. Harms directed that staff, in conjunction with the City Attorney, prepare a disclosure statement related to the potential for development in the area. Steve Lindgren, Minnesota Chamber of Commerce and Richfield Chamber of Commerce, reported that the Richfield Chamber is in opposition to the Hoisington guided Lyndale Gateway plan. Mr. Lindgren submitted a letter to the HRA and City summarizing their position on this plan. Commissioner Luettinger, asked Mr. Lindgren to bring back ideas from the Chamber for redevelopment. Larry Wozniczka, 6744 Wentworth Avenue, spoke in opposition to the plan and the process and cited what he felt were inconsistencies in the report. Special HRA Meeting Minutes -3- May 20, 1996 Mr. Harms commended the Planning Commission for their hard work. He stated that this plan was to bring back ideas and generate interest for future discussion. Gertrude Ulrich, 7601 Aldrich Avenue, spoke in support of the plan. She stated that a fix -up, paint -up job should not be undertaken under any circumstances. Ms. Ulrich encouraged the HRA and City to do the project as recommended by the Planning Commission. Council Member /HRA Member Susag stated that he felt this was a larger issue than just Lyndale Avenue between 74th and 77th Streets because it includes a large portion of development assistance that should be evaluated for use in other project areas of the City. M /Sandahl, S /Susag to accent the Lyndale Gateway Study. RIM .' a I 1' ! .•1 #1 P2 RI I I - S N-714 5.11 "1 •1111 .1 1 Council Member Rosenberg commended the Planning Commission for their work on this project. Council Member Priebe stated that he would support accepting the report but is adamantly opposed to using TIF funds from another district to fund the Lyndale Gateway project. The City Council meeting was adjourned by unanimous consent at 7:53 p.m. The HRA meeting was recessed for ten minutes. Date Approved: Steven L. Devich Acting City Clerk Thomas E. Harms Chair James D. Prosser Executive Director CITY OF RICHFIELD MONDAY, MAY 20, 1996 SPECIAL JOINT RICHFIELD CITY COUNCIL AND RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING WITH PLANNING COMMISSION 6:30 P.M. RICHFIELD CITY HALL 6700 PORTLAND AVENUE COUNCIL CHAMBERS CALL TO ORDER ROLL CALL CONSIDERATION OF ACCEPTANCE OF LYNDALE GATEWAY STUDY FROM HOISINGTON KOEGLER GROUP INC.; ILN REDEVELOPMENT PROJECT COUNCIL LETTER NO. 163 HRA LETTER NO. 23 ADJOURNMENT AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO THE ADMINISTRATIVE SERVICES DIRECTOR AT 861 -9702. CITY OF RICHFIELD, MINNESOTA Council Letter No. 163 HRA Letter No. 23 Agenda May 20, 1996 Issue Statement: Consideration of the acceptance of the Lyndale Gateway Study from Hoisington Koegler Group Inc.; ILN Redevelopment Project. Background: On July 17, 1995 the HRA took the initial steps toward formulating a strategy for the Lyndale Avenue commercial area north of 77th Street. Fred Hoisington of Hoisington Koegler Group Inc. was retained to prepare a strategy. The Planning Commission under the leadership of Daniel Linnihan was requested to oversee the formulation of the strategy and together with Fred Hoisington, provide the businesses and residents with opportunities to participate. Attached to this letter is a copy of the strategy. Dan Linnihan, at the May 20, 1996 HRA meeting will present the report as it was accepted by the Planning Commission on April 23, 1996. Fred Hoisington will then discuss the significant conclusions and respond to questions. Business people and residents have been invited to the meeting and may wish to make remarks as well. The purpose of the strategy is to establish a framework within which to pursue the upgrading of Lyndale Avenue. The report identifies opportunities and constraints, and notes issues with which to be concerned. The report contains ten sections plus an appendices. Section 1.0. page 2 -'The Lyndale Gateway' Introductory remarks and a list of the objectives of the strategy. Section 2.0. page 3 -'Executive Summary' Contains a list of 12 significant statements regarding the strategy. Section 3.0. page 4 -'The Framework' Indicates among other things that building values in the area are declining while land values are increasing; (page 6). The summary paragraph on page 8 offers several insights into the area. Section 4.0. page 9 -'The Market' A market study was undertaken by Maxfield Research Group Inc. as a sub - consultant to Hoisington. They discerned a market for smaller office buildings of 60,000- 80,000 square feet; and retail space demand use up to 170,000 square feet. Housing may be feasible if it occurred in two to three stories or more above first floor retail. Section 5.0. page-1 1 - 'Stockholder Input/Results' Input from residents and business people was formulated into guiding principles which appear on page 13. (Attached is a list of the public meetings where study input was provided.) Section 6.QRa9e 15 - 'The Possibilities' A listing and brief discussion of each of eight alternative concepts which grew out of meetings with 'stockholders'. Section 7.0. page 16 -'The Concept and Plan' Recognition that this area is a gateway to the community and incorporates ideas from several of the alternative concepts. Section 8.0. page 18 -'Design Guidelines' Provides design considerations for implementation of the strategy. Section 9.0,_page 2 -'Costs & Feasibilb' On page 21 is a list of several economic statements to be considered when contemplating the implementation of this strategy. Identification of the areas east and west of Lyndale Avenue and south of 76th Street as the highest priority for redevelopment. The text points out the difficulty of financing the desired concept in the two Lyndale Avenue blocks utilizing only tax increment from redevelopment in the two blocks. Table 3 is a projection of costs for this area and totals $9.5 million. Table 4 lists some potential funding sources and the text notes additional options. A purpose of the study was to quantify the financial issues. The list of options is simply a list of options (by accepting the report neither the HRA nor the City Council would be rejecting or accepting the options). The list may be utilized to facilitate future discussions. So far there has been reaction in two ways to this section. One reaction is to abandon redevelopment of the two blocks east and west of Lyndale Avenue south of 76th Street and let the existing business owners "do something '. Another reaction has been that some of the options are totally unacceptable and should not be identified, i.e. the use of the City's portion of the LHN tax increment benefit. Section 10.0. Rage 2 -'A Strategy To Get It Done' Pages 23, 24, and 25 list 16 objectives to be followed in implementing the strategy. Finally, if the HRA and City Council accept the report, it would be appropriate for the HRA to direct staff to begin to explore the marketability of the mixed commercial /apartment concept proposed for the east and west side of Lyndale Avenue South of 76th Street. Once a potential redeveloper has been identified it would be appropriate for the HRA, City Council and Planning Commission to consider modifying the ILN Redevelopment and Tax Increment Finance Plans. At that time the project boundary could be shifted from the mid -point of the 7600 -01 blocks east to Garfield Avenue and west to Aldrich Avenue. Also, consideration could be given to moving the boundary north from 75th Street to 74th Street. At that time details of various financing tools would also be identified. Recommended Motion: A. City Council Adopt a motion accepting the Lyndale Gateway Study following discussion with the HRA and public testimony. 1. Adopt a motion accepting the Lyndale Gateway Study following discussion with the City Council and public testimony. 2. Adopt a motion directing staff to market the study concepts to the development community. Basis of Recommendation: 1. The area was studied because it exhibits characteristics of decline. 2. The HRA retained the services of Hoisington Koegler to formulate a plan. 3. The Planning Commission took a very active role in overseeing the conduct of the study and participation in formulating the Lyndale Gateway Study. 4. Opportunities were provided for the area business people and residents to participate. 5. Marketing of the plan should begin with its acceptance. Alternative Recommendation: 1. Delay acceptance. 2. Request the rewriting of certain portions of the report. 3. , Reject the report. 4. One neighbor on the east side of the 7600 block of Garfield Avenue has requested that the City consider expanding the project area to include acquisition of his property. He believes that the "transition" area would work better if it were in the back yard of a residential property rather than the front .yard. Discussion /Decision Mode: The study has recently been completed and it would be desirable to continue the momentum. Respect ylly submitted, J mes`06. Prosser City MaAager JDPcak t Public Meetings Lyndale Gateway Study August 8, 1996 7:00 P.M. Planning Commission Study Session review of process. September 6, 1996 7:00 P.M. Information meeting - businesses. September 7, 1996 7:00 P.M.-. Information meeting - residents. September 12, 1996 7:00 P.M. Planning Commission Study Session review results of meetings with business people and residents. September 12, 13, 14, 1996 Interviews with businesses, large property owners and abutting residents. September 26, 1996 8:00 P.M. Workshop - Planning Commission /City Council /HRA. October 24, 1996 7:00 P.M. Planning Commission Study Session review alternative concept plans. November 9, 1996 7:00 P.M. Corridor meeting - residents, 6:00 P.M. Open House) businesses, Planning Commission /City Council /HRA. November 14, 1996 6:00 P.M. Workshop - Planning Commission /City Council /HRA. January 17, 1997. . 7 :00 P.M. Corridor meeting - businesses. January 18, 1997 7:00 P.M. Corridor meeting - residents. 6:30 P.M. Open House) January 23, 1997 7:00 P.M. Workshop Planning Commission /City CounciVHRA. April 9, 1997 7:00 P.M. Planning Commission Study Session review draft report. April 23, 1997 6:00 P.M. Planning Commission presentation of report to residents, businesses. 7:30 P.M. Planning Commission presents report to residents and businesses and hears remarks during public hearing. Recommends report to HRA and City Council. Draft available for review from April 16, 1996 to present)