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HomeMy WebLinkAboutHRA AGENDA 11101987C STY O F S T_ ANTHONY H O U S T N G AND REDEVELOPMENT AUTHO R T TY AGENDA NOV EMB E R 1 0, 1 9 8 7 A. Call to Order. B. Roll Call. C. Approval of October 13, 1987 H.R.A. Minutes. D. Claims. 1. Development Advisory Services - $4,553.63. 2. Dorsey & Whitney - $3,742.18. E. Adjournment. IM ji iry `7 yy yyr }��r '�!�'.r7! � �nX`r y L•J n•%ii 4 ., � -�[[ :l'[.. 3,� KR •: �. M e 1 p �44� � .'�L %...^ x l�4� � K jf J �+�,'M1Vi :�4 .. c �C 4 5.�. -� '-�7"tl"�, �'i��w?'`$C. 16Y��ii �'� 5 (nd1, :r�,(•�,r- ��J4-l�nc 3 '[t �a �. 4 �WCr '� C f%r .. t..-�' 4['sG �F �f�^Y'i •�;rs r��sw#.. ''f C, a`°+i'�/f ',Fi.,c�� 4�...�� i�- �i'ri'6�+.�ir3 ��,�r -�., i Mrs � y , _.� i sa str '.t ��;!: ,�rr• !. �r fi:� - a l3 � pw a �C Ir �..T�"•'.A� oi'! .r e) F� 01 °� a r .' Y'.T' xr* xhS s1+' Thr hs, /�"ylj�n. tRr�-E`r ,",'Kie s r [t?'Sn$!I ()A� �•''t} �. 3 � f��-. �1F).. e� 4 + �..- Ft! i" i' ! $ `•yi�i r�.,y [ G t y. �, [t 'tom s1 •/r f i. 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C 2 TY O F S T_ ANTHONY HOU S = N G A�TD REDEVELOPMENT AUTHO R S TY M S N U T E S O C TOB E R --L3, 1.987 1 The meeting was called to order at 9:02 P.M. by vice Chair Enrooth. 2 Present for roll call: vice Chair Enrooth, Secretary/Treasurer 3 Marks, and Commissioners Ranallo and 4 Makowske. 5 Absent: Chair Sundland. 6 Also present: David Childs, Executive Director 7 William Soth, H.R.A. Attorney 8 Richard Krier, Development Advisory Services, 9 H.R.A. Consultant 10 P. J. Gaughan, Gaughan Company, Redeveloper 11 SEPTEMBER 22, 1987 H.R.A. MINUTES 12 Motion by Marks, seconded by Makowske to approve as presented. 13 Motion carried unanimously. 14 CLAIMS 15 Motion by Marks, seconded by Ranallo to approve payment of $1,732.04 16 to Development Advisory Services for August consulting services to be 17 reimbursed from the Arkeil arbitrage. 18 Motion carried unanimously. 19 Motion by Marks, seconded by Makowske to approve payment of $2,673.25 20 to the Dorsey & Whitney law firm for legal services rendered during 21 August, 1987 for which the H.R.A. will also be reimbursed from the 22 Arkell arbitrage. 23 Motion carried unanimousl 24 Motion by Marks, seconded by Ranallo to approve payment of $200.00 to 25 the Title Insurance Company of Minnesota for the necessary title 26 search of the Saliterman shopping center property necessary for the 27 first step in the acquisition of that property. -for the Kenzie Terrace 28 Redevelopment Project. 29 Motion carried unanimousl -1- 1 The Attorney and Consultant discussed the missing sections of the 2 Redevelopment Contract with the redevelopers who the Executive 3 Director indicated would now be referred to as the Wilson Street 4 Associates with Mr. Gaughan personally signing as the general partner 5 and submitting the $360,000 Letter of Credit guaranteeing the 6 development in the agreed upon period. 7 Mr. Krier said the redeveloper was being asked to provide the 8 drawings of buildings and site improvements according to the survey, 9 which is almost completed. The architectural renderings would then 10 become a part of the contract and would also be taken to the Hennepin 11 County Assessor to set a minimum value on the property, of which he 12 said the City already had a pretty good estimation. The Consultant 13 indicated the schedule was already in the contract and it was only 14 left to the redeveloper to provide an administrative type document 15 which would be easier to read. 16 Mr. Krier stated that in terms of any of the above missing items, he 17 did not perceive a need for delaying the approval of the Contract 18 that evening because the H.R.A. Chair and the Executive Director 19 would not sign the document until all necessary documentation is 20 provided. The Consultant indicated he perceived it was important to 21 keep the process going and to lock in lower interest rates as fast as 22 can be done. He said the hope was that the Redevelopers Contract 23 could be signed by the end of the week. 24 Mr. Soth recommended making the approval contingent on the City 25 Council approving the modified P.U.D. on the project on which both 26 the Planning Commission and Council would be required to hold public 27 hearings. He added that the description of the development, which 28 would be general in the contract, would be nailed down more specifi- 29 cally in the P.U.D. 30 Mr. Krier reiterated that the meeting with the people from the 31 Minneapolis triangle closest to St. Anthony would be held in the St. 32 Charles Borromeo school the following Monday, but because a lot of 33 time has already been spent talking to the Minneapolis people, no 34 major opposition was anticipated at that meeting. Mr. Childs 35 confirmed that all St. Anthony property owners who had been sent 36 notices of the Planning Commission October 20th public hearing on the 37 P.U.D. had also been invited to attend the October 19th informational 38 meeting at St. Charles where he perceived more questions could be 39 answered than at a public hearing. 40 Commissioner Ranallo reiterated that he would be attending the Monday 41 evening meeting at the request of Alderman Dziedzic, who perceived it 42 was very important to have the informal meeting with the neighbors 43 before the public hearing. The consensus was that Mr. Childs should 44 also attend that meeting. 45 Mr. Krier indicated he perceived the issues raised at the Monday 46 meeting would be mostly design oriented requiring the presence of the 47 redevelopers' president and architect but not the Attorney. 2 1 Commissioner Ranallo said he had discussed the project with Father 2 Kittock of St. Charles who was very favorable to the whole project, 3 but suggested that thought be given to allowing the balconies be 4 enclosed for three season use, similar to ones he and the priest had 5 viewed in Bloomington, to add a little more interest to the build - 6 ing. 7 Mr. Krier said that option could be brought up during negotiations 8 later that week because the architects design drawings had been 9 delayed by problems encountered with the survey. Mr. Childs said 10 part of the problem had been because the surveyor had left off a lot 11 on the property where the upholstery shop is now located on Kenzie 12 Terrace which the Executive Director had assured the architect posed 13 no real problem for the project since the assumption remains that Mr. 14 Saliterman wouldn't sell any of the property without the inclusion of 15 that parcel. Mr. Krier indicated he had the surveyor and the title 16 company working together on the problem. 17 In reference to the balcony enclosures, Mr. Gaughan said his company 18 likes to keep their buildings "clean, crisp, and uniform" however, 19 what the St. Charles pastor had suggested was more suited to a 20 condominium than an apartment building. He said such additions would 21 be very expensive and to put them on rentals would be impractical and 22 might create a "scuddy" appearance. Mr. Childs indicated he per - 23 ceived that was an item which could be added with condominium 24 conversion. 25 Risks Pointed Out by H.R.A. Consultant 26 A discussion of the reasoning behind the new name the redevelopers 27 had taken ensued, followed by the Consultant's pointing out the only 28 risk he perceived the H.R.A. would be taking in the contract before 29 them. He pointed out how important the financing was to the whole 30 project and said the developer is working closely with Piper Jaffray 31 to get that in place before the interests rates go any higher. 32 However, he said the lender is very happy with the project and only 33 has a few items left to be resolved. 34 The H.R.A. would not want to acquire the property without having a 35 redeveloper's contract signed and a Letter of Credit in place, the 36 Consultant said, so there is a very slight risk, that the property 37 might not be acquired and in the meantime the developer has under - 38 taken between $250,000 and $300,000 in costs to put the financing 39 package together which the contract dictates he must be reimbursed 40 for if the land isn't acquired. He said he considered that to be 41 less risk than risking the whole project on higher interest rates 42 which make the project unfeasible. 43 H.R.A. Action 44 Motion by Ranallo, seconded by Marks to adopt the resolution which 45 directs the H.R.A. Chair, Executive Director and Consultant to 3 1 execute the Redevelopers Contract with the Gaughan Company subject to 2 resolution of any issues which the City Attorney indicated remained 3 to be negotiated. 4 Motion carried unanimously. 5 Mr. Gaughan commented that since they had started to negotiate 6 financing for the project, the interest rate had gone up to the point 7 where it would cost them an additional $85,000 more a year to 8 complete the project. However, the developer said, he still wanted 9 to do the project and would continue to work on it. 10 Secretary/Treasurer Marks told him the Commissioners were also 11 determined to get the project completed with his buildings replacing 12 the deteriorating buildings in the center now. He added that was 13 the reason he ran for the City Council 8 years ago and he was up for 14 re-election this fall just because he was determined to see that goal 15 accomplished. 16 ADJOURNMENT 17 Motion by Ranallo, seconded by 18 9:25 P.M. 19 20 Respectfully submitted: 21 Helen Crowe, Secretary 22 :cjk 23 Makowske to adjourn the meeting at Motion carried unanimously. DEVELOPMENT ADVISORY SERVICES 7404 Girard Avenue South, Minneapolis. MN 55423 Telephone (612) 861-4213 October 16, 1987 Mr. David Childs Executive Director St. Anthony Housing & Redevelopment Authority 3301 Si.l,ver I_a_ke Road St. Anthony, MN 55418 INVOICE For September Consulting Services: September 1 September 2 September 10 September 11 September 13 September 15 September 16 September 18 September 23 September 24 Mileage Printing Typing TOTAL DUE THIS INVOICE 1.0 4.25 5.5 4.0 1.5 2.0 2.0 3.0 2.5 3.0 31.5 hours @ $85/hour = 72 miles @ 210/mile = 3.5 hours Total Past Due (Invoice September 16, 1987) Finance Charge TOTAL DUE $1,732.00 25.98 $2,677.50 15.12 15.53 87.50 $2,795.65 $4,553.63 There will be a finance charge of 1.5% per month (18% annual percentage rate) applied to all charges which have become more than 30 days past due. r- l DORSEY & NVIIITNEY 2.200 FIHSF HANK PLACE HAST ?IINNRAPOLIS, MINNESOTA 5 1102 1612 1 :340 - 2(100 (Internal Revenue Account Nu. 41-0223337) STAT E:%IF.N7 OF ACCOU'N'F POR PROFF SSIONA I. SFRVK FS October 31, 1987 Mr. David M. Childs Executive Director Housing and Redevelopment Authority of St. Anthony 3301 Silver Lake Road Minneapolis, Minnesota 55418 Re: Housing and Redevelopment Authority For legal services rendered from September 1, 1987, through September 30, 1987, including: Attend HRA Meeting on September 22, 1987: $ 37.00 Kenzie Terrace: Telephone calls and letter re mechanic's lien claim by Tushie-Montgomery Associtates, Inc. on Saliterman Property: $ 92.50 Gaughan Companies: Meet with D. Childs, R. Krier, A. Hamel, J. Johnson; telephone P. Brinkman re arbitrage; draft Redevelopment Contract; send letter to J. Johnson; telephone D. Childs re Redevelopment Contract; meet with A. Hamel, J. Johnson, D. Childs and D. Krier re Redevelopment Contract; send letter to J. Johnson re Arkell documents; telephone title company; sent, letters to J. Johnson re Walker easement documents; send letter to title company; meet at City Hall with A. Hamel, J. Johnson, R. Krier and D. Childs re Redevelopment Contract and related matters; redraft Redevelopment Contract; prepare Assessment Agreement and Guaranty; review and revise documents; telephone conference with J. Johnson re comments; revise Redevelopment Contract; telephone P. Brinkman re City Dishuaemenls made tol N out _c:,n1n [, Iol 1� iuch hills have 11"t � m h: en Iereiied. (3'ill appear o0 3 lat"I SIA011n0nl. DORSEY & WHITNEY 2200 FIRST BANK PI.ACIE EAST MINNEAPOLIS, MINNESOTA 55402 1012 � :340 - `.9000 (Internal Revenue Account No. 41-0223337) STA1E411.NT OF AC(OUN-1 FOR PROII SSIONAL SFRVIC'ES 2 _ costs to be paid by Arkell, telephone conference with D. Childs re same; send letter to J. Johnson; meet at City Hall re Redevelopment Contract and related matters; send letter to D. Childs re reimbursement by Arkell; review notice for PUD public hearing; telephone D. Childs; title matters: $3,565.00 TOTAL TIME $3,694.50 PLUS DISBURSEMENTS (as per attached sheet) 47.68 TOTAL TIME AND DISBURSEMENTS $3,742.18 WRS:gle 615 178820:74, 81 DISI, (I Tsenx•nts Tilade for nnu axount, It) �%l l lih b I I IS IIJW not vet hC•n recei%ed."dl appear on d late' Statement.