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HomeMy WebLinkAboutHRA MINUTES 05112004I CITY OF ST. ANTHONY iHOUSING AND REDEVELOPMENT AUTHORITY MEETING 4 5 MAY 11, 2004 6 7 CALL TO ORDER. 8 Chair Hodson called the meeting to order at 8:25 p.m. 9 10 ROLL CALL. 11 Commissioners present: Chair Hodson; Commissioners Horst, Stille, Thuesen, and Faust. 12 Commissioners absent: None. 13 Also present: Executive Director Michael Mornson and City Attorney Jerry 14 Gilligan. 15 16 17 1. APPROVAL OF MAY 11, 2004, H.R.A. AGENDA. 18 Motion by Commissioner Faust, seconded by Commissioner Thuesen, to approve the May 11, 19 2004, Housing and Redevelopment Authority Agenda as presented. 20 21 Executive Director Morrison noted Item III (B), Resolution 04-006, did not require a public 22 hearing; therefore, it should be moved to Item IV (A), General Policy Business of the H.R.A. 23 0 Executive Director Morrison's amendment was accepted. 26 Motion carried unanimously. 27 28 II. CONSENT AGENDA. 29 Motion by Commissioner Faust, seconded by Commissioner Horst, to approve the Consent 30 Agenda, which consisted of: 31 A. H.R.A. Meetine Minutes of April 13, 2004; and 32 B. Claims. 33 34 Motion carried unanimously. 35 36 111. PUBLIC HEARINGS. 37 A. Resolution 04-007; Proposed acquisition of property by exercise of power of eminent 38 domain. 39 Chair Hodson opened the public hearing at 8:26 p.m. 40 41 City Attorney Gilligan noted, pursuant to the terms of the Redevelopment Agreement between 42 the HRA and Apache Redevelopment LLC, the HRA received a request from Apache 43 Redevelopment LLC to authorize the acquisition by eminent domain of certain properties to be 44 redeveloped in accordance with the Redevelopment Agreement. The proposed properties were defined in the Agreement as the "Authority Parcels," which consisted of the properties owned by 16 J. A. Cadwallader Real Estate, Inc., Village Properties (Ken Solie) and Apache Square 47 Paramount Properties. W Housing and Redevelopment Authority Meeting Minutes •May 11, 2004 Page 2 Mr. Gilligan further explained, to date, the HRA was unable to negotiate a termination of the Tires Plus lease, which needed to be terminated in order for the HRA to transfer the liquor store/Tires Plus parcel as required by the Redevelopment Agreement and the liquor store Purchase Agreement. He noted, since this lease was not yet terminated, it was necessary at this time for the HRA to authorize the acquisition of the interests of the lessee in the Tires Plus lease by eminent domain. He added, under Minnesota Statutes, the HRA could not adopt a resolution authorizing condemnation unless it first held a public hearing on the proposed condemnation. 9 Mr. Gilligan stated, following the public hearing, he recommended the HRA adopt a resolution 10 authorizing the condemnation of the Authority Parcels and the interests of the lessee in the Tires 11 Plus lease. He explained it was expected that Apache Redevelopment LLC would be able to 12 purchase the Authority Parcels directly; therefore, until directed by the developer following the 13 adoption of the resolution, no action would be taken by the HRA to commence a condemnation 14 proceeding. He added, unless the HRA was able to obtain a termination of the Tires Plus lease, 15 however, the HRA would need to immediately commence a condemnation proceeding with 16 respect to the lease following adoption of the resolution. 17 18 Steve Quam, 200 South Sixth Street, Minneapolis, stated he was an attorney with Fredrikson and 19 Byron and was representing Ronald and Judith Rasmussen, the tenants and operators of the Tires Plus store. He indicated he was present to notify the HRA that Mr. and Mrs. Rasmussen had filed a lawsuit against the HRA the previous day, which set forth their position with respect to 22 their rights under the lease. He added this was not the time or place to debate the merits of the 23 lawsuit; however, he wanted the HRA to know the lawsuit was served. 24 25 Chair Hodson closed the public hearing at 8:30 p.m. 26 27 Motion by Commissioner Faust, seconded by Commissioner Thuesen, to adopt Resolution 04- 28 007 authorizing the condemnation of the Authority Parcels and the interests of the lessee in the 29 Tires Plus lease. 30 31 Motion carried unanimousiv. 32 33 IV. GENERAL POLICY BUSINESS OF THE H.R.A. 34 A. Resolution 04-006; Approve New Date for Phase Q of Silver Lake Village. 35 Stacie Kvilvang, Ehlers and Associates Inc., noted on December 19, 2003, Council and the HRA 36 executed a Development Agreement with Apache Redevelopment LLC for the redevelopment of 37 the Northwest Quadrant. She explained, according to the Agreement, the developer was to 38 submit detailed site plans and proformas to the City by March 15, 2004, for Phase II of the 39 development. She indicated, based upon review of this information and negotiations between the 40 two parties, the developer and HRA were to enter into the Phase II contract addendum by May 31, 2004. She noted the developer was requesting an extension of the above-mentioned timelines 16 due to the extensive time the developer needed to expend on expediting and finalizing all the 43 components of Phase I of the development. 44 Rousing and Redevelopment Authority Meeting Minutes •May 11, 2004 Page 3 1 Ms. Kvilvang stated the developer was still interested in completing Phase 11 of the development 2 and was requesting the new date to submit proforma and plan information be extended to 3 October 15, 2004, and the date to enter into a contract addendum be extended to December 31, 4 2004. 5 6 Commissioner Stille asked if there was a 60 -day extension beyond the stated date requested by 7 the developer. Ms. Kvilvang responded there was a 60 -day extension period that could be given 8 at the discretion of Executive Director Morrison. She added any extension beyond the 60 days 9 would need to come back before the HRA for approval. 10 I 1 Motion by Commissioner Faust, seconded by Commissioner Stille, to adopt Resolution 04-006 12 approving extension of the time line for Phase II development—Northwest Quadrant. 13 14 Motion carried unanimously. 15 16 V. STAFF REPORTS. 17 Executive Director Momson asked Ms. Kvilvang to give an update regarding additional issues 18 that would need Council consideration. 19 Ms. Kvilvang noted Apache Plaza was down and stated she was amazed at how quickly and precisely it was demolished. She added she thought the developers were taking photos of the site 22 and the demolition. 23 24 Ms. Kvilvang indicated the pond in front of Cub Foods was currently being filled. She noted it 25 would be replaced with a larger ponding area that would include surrounding park 26 improvements. 27 28 Ms. Kvilvang stated the new liquor store permit would be issued the following week, with 29 construction starting the end of May or early June. She added residents would be pleased once 30 they saw the store, noting the new store was larger than the previous one. 31 32 Ms. Kvilvang indicated the plans had been submitted for the Cub upgrade. She explained the 33 building would receive a "face lift" to make it come into compliance with the rest of the 34 development. She added work would probably begin after July 4. 35 36 Ms. Kvilvang stated plans were submitted for permit review of the two most eastern buildings of 37 the commercial portion of the development fronting Silver Lake Boulevard. 38 39 Ms. Kvilvang noted Dominion was planning to build approximately 180 general occupancy 40 rental units and 80 senior units. 40 Ms. Kvilvang indicated the draft Development Agreement was completed and negotiations were 43 beginning regarding the appearance of the development and procedures for moving forward. She Rousing and Redevelopment Authority Meeting Minutes May 11, 2004 •Page 4 noted the preliminary plan reviews were scheduled to come before the Planning Commission and Council in June. Ms. Kvilvang noted the site would be very different and would transform the overall look of the community. 7 Ms. Kvilvang stated SAV 1 was scheduled to open June 1. She added residents would be 8 pleased, as the building was attractive. She indicated Mr. Larson would be reporting great things 9 regarding sales in the next several years. 10 11 Ms. Kvilvang indicated a CIC plat was filed with the County; however, due to time turnaround, 12 there was no guarantee the plat would be back for a June 1 formal closing. She explained a 13 license agreement was being prepared that would allow the City to move in and operate, renting 14 the space for 81 per month, for example, until the plat was recorded and a formal closing could 15 take place. 16 17 Ms. Kvilvang noted additional leases for the site were signed, with more leases hopefully signed 18 by the following week. She indicated that left only one unrented bay. She explained the 19 developer was making a conscious effort to consider parking concerns and working towards 0 compatibility with the restaurant's use of the parking spaces. 22 Ms. Kvilvang stated the lease with Spectators was being finalized and Spectators would 23 hopefully open in the fall or late during the current year. She added additional work needed to be 24 done regarding Sports Boosters' license agreements and a liquor license. 25 26 Ms. Kvilvang noted 38 apartment units were being planned for the LaNel site, indicating the site 27 comprised the five vacant single properties next to Autumn Woods. She explained closing was 28 delayed mostly due to economies of scale related to the 38 units and construction costs, which 29 was making it difficult to obtain financing. She stated there was a 15% vacancy at the current 30 facility; therefore, they wanted to make sure the new units could be leased. She indicated 31 construction costs would be rebid and other creative things done to get the project underway. 32 33 Commissioner Faust indicated Council was good about using the name Silver Lake Village for 34 the Apache Plaza site. He asked if a name had been given to the shopping center at the 35 Stonehouse location. Ms. Kvilvang responded she did not believe a formal name had been given 36 to the shopping center and suggested Council could recommend a name. 37 38 Commissioner Faust noted it would be nice to differentiate the shopping center rather than use 39 the past name, which would shortly be irrelevant. Ms. Kvilvang responded she would have 40 suggestions brought before Council. 6 Mr. Morrison suggested Council might wish to give LaNel a "drop dead" date, as the City still 43 owned the property. He noted their PUD was approved and recommended a time frame for the Housing and Redevelopment Authority Meeting Minutes •May 11, 2004 Page 5 1 decision should be negotiated. He indicated the City might wish to put the property back on the 2 market if LaNel decided against building. 3 4 VI. H.R.A. COMMISSIONER COMMENTS. 5 None. 6 7 VII. INFORMATION AND ANNOUNCEMENTS. 8 None. 9 10 VIII. ADJOURNMENT. 11 Chair Hodson adjourned the meeting at 8:42 p.m. 12 13 14 Respectfully submitted, 15 16 Majorie R. Jenkins 17 TimeSaver Off Site Secretarial, Inc. i 0