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CITY OF ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
JUNE 25, 1991
1. CALL TO ORDER
The meeting was called to order by Chairperson Ranallo at
8:15 p.m.
2. ROLL CALL
Present: Chairperson Ranallo, Vice Chairperson Enrooth,
Secretary/Treasurer Marks, and Commissioners Wagner and
Fleming.
Staff Present: Executive Director Burt and City Attorney
Soth.
3. CLAIMS
A. Briggs and Morgan
The Executive Director advised this claim should have been
listed under claims on the Council meeting agenda. He
requested it be removed from the HRA claims list.
B. Dorsey 6 Whitney
Motion by Marks, second by Enrooth to approve payment in the
amount of 6358.80 to Dorsey S Whitney law firm for legal
sevicas rendered from March 1, 1991 through March 31, 1991
regarding the Lang -Nelson project.
Motion carried unanimously
4. 1990 H.R.A. FINANCIAL STATEMENT
The City Manager advised that this financial statement had
been reviewed by Stuart Sonniwell, the auditor, after a
previous meeting. No further discussion was required.
5. APPOVAL OF MINUTES
Notion by Marks, second by Wagner to approve the minutes of
the April 23, 1991 H.R.A. meeting as presented. There were
no corrections.
Motion carried unanimously
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54
H.R.A. MEETING
JUNE 25, 1991
PAGE 2
5. MISCELLANEOUS
A. Old Clark Station Property - 3301 Stinson Boulevard
The Executive Director advised he had requested the City
Attorney to review the possibility of the City doing small
projects in blighted areas rather than doing larger
projects.. He :noted that the area at 33rd and Stinson
Boulevard is presently zoned for tovnhomes. There are two
developers interested in this property.
Chairperson Ranallo inquired if the island and the building
presently on the parcel could be removed. The City Attorney
responded it would be very difficult without the cooperation
of the owner. He advised the property could be acquired by
the City through purchase or condemnation. He also advised
that H.R.A. tax increment financing could be used if a
redevelopment district were established but there would be a
loss of State Aid funds if this were to be done.
The City Attorney cautioned against the City taking title to
the property. He noted that soil testing has not been done
on the property. Title to the property could be transferred
directly to the developer.
The Chairman recalled that soil tests were done on the
property where the Evergreen project is located.
The Executive Director has requested information from the
League of Minnesota Cities regarding soil contamination on
land which may be acquired by a municipality. He will copy
the Council on this information when it is received.
The City Attorney advised that the State of Minnesota has
funds available for reimbursement of costs incurred for
cleaning up contaminated property. He felt the property in
question was a good candidate for redevelopment as it is
zoned residential.
All the members of the H.R.A. felt staff should pursue
redevelopment of this area. Commissioner Enrooth noted that
it was already designated as residential in the City's
Comprehensive Plan.
Councilmember Marks inquired if the City would be required
• H.R.A. MEETING
2 JUNE 25, 1991
3 PAGE 3
4.
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6 to take title if it were to condemn the property. The City
7 Attorney stated that this would be the case but that
8 frequently when condemnation proceedings commence
9 negotiations also start and the developer closes the sale of
10 the property with the seller.
11
12 B. LaNel - Autumn Woods Project
13 A letter was received from Frank Lang, developer of Autumn
14 Woods, requesting the Council to consider amending the
(15 Development Agreement for the Project to provide for the
16 reimbursement to the Developer from excess funds available
17 in the Tax Increment Fund to cover real estate taxes in
18 exce�a _of61;200 per year. The maxi"mumami ount of
19 reimbursement being requested would be 650,000 per year end
20 the Agreement would commence for taxes payable in 1991 and
21 continue until taxes payable 1998.
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23 Presently, each unit in the development generates about
24 61,800 per year in taxes. The developer feel& a "safety net-
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could be implemented and place the tax ceiling at 61,200.
The Executive Director advised that the developer knows the
28 property values and wants to make a formal presentation on
29 this matter along with a formal request.
30
31'l Chairperson Ranallo recalled that when the Tax Increment
CJ District was established the taxes were based on a realistic
33 amount. He noted that presently the H.R.A. has a substantial
34 fund balance in the District. Occupancy of'the project is
35 about 96/98x. The Chairperson felt renters would be easier
36 to keep if taxes did not rise every two or three years. He
37 noted other positive impacts this development has had on the
38 area, specifically the improvements done at the St. Anthony
39 Shopping Center. He also recalled that the City Council had
40 intervened with Hennepin County to reduce the values on the
41 property thereby reducing the property taxes.
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43 Commissioner Wagner inquired if a stable tax rate in
44 anticipated for 1992. The Executive Director noted that the
45 rate tables are coming down but does not know if this will
46 be the case in the future. The Executive Director also
47 observed that this development had been successful in
48 attracting present residents of homes in St. Anthony thereby
49 freeing up homes for younger families to purchase.
50
Commissioner Enrooth suggested that the Agreement be dealt
41 with on a year by year basis rather than until 1998.
53 Commissioner Wagner wondered if Frank Lang would still be
54 involved with the project in 1998.
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54
H.R.A. MEETING
JUNE 25, 1991
PAGE 4
The Executive Director stated that Mr. Lang is presently
deaing with the financier of the Project. He had requested
Mr. Lange to submit this written proposal to the H.R.A. and
make a personal appearance at a H.R.A. meeting and make a
presentation.
Chairperson Ranallo stated his opposition to assisting this
developer noting that developers of other projects in the
City may request the some kind of help.
The City Attorney stated that there would have to be some
basis for giving this kind of assistance to this developer.
He noted that initially help was approved by the City
Council to develop the project and get it built. That
situation presented an unique set of circumstances. This
request is not unique. He felt for the H.R.A. to authorize
the 650,000 it must be determined how it would benefit the
community and its residents.
The Executive Director noted that Mr. Lang will cite his
development in New Hope and how he made a .similar
arrangement for this type of funding in that community. It
was felt he would argue that there is still a working
relationship with the City as long as there is a Tax
Increment District in place.
Commissioner Marks inquired if the H.R.A. could review Mr.
Lang's books. Chairperson Ranallo felt this would be
inadvisable if it were discovered that the project really
needs financial assistance and this reviewal could be
considered a commitment on the part of the H.R.A..
The City Attorney stated that a reviewal of the books would
not really be a commitment, noting that any funds advanced
would have to be in the City's beat interests. He felt to
justify any financial assistance the development would have
to be "teetering" and only additional funds could keep the
project going.
Commissioner Wagner observed that two other development
projects in this Tax Increment District way be in the same
situation. Staff did not know how they compare to the
situation at Autumn Woods. It was noted that these two
projects are owner -occupied and that no one from these two
projects has come in requesting funds.
0 H.R.A. MEETING
2 JUNE 25, 1991
3 PAGE 5,
4
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6 ADJOURNMENT
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8 Motion by Marks, second by Enrooth to adjourn the H.R.A. meeting
9 at 8:40 p.m..
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11 Motion carried unanimously
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14 Respectfully Submitted,
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17 Jo -Anne Student, H.R.A. Recording Secretary
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