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HomeMy WebLinkAboutHRA MINUTES 08231988CITY (DE' S T . ANTHONY . HOU S S N G AND RED EVE LO PMENT AUTHOR 2 TY M 2 NUT E S AU GU S T 2 3, 1 9 8 8 1 The meeting was called to order by Chair Sundland at 7:00 P.M. 2 ROLL CALL 3 Present for roll call: Sundland, Vice Chair Enrooth, Secretary/ 4 Treasurer Marks, and Commissioner Ranallo. 5 Absent: Makowske. 6 Also present: David Childs, Executive Director 7 William Soth, H.R.A. Attorney 8 A Council Executive session had been held prior to the H.R.A. meeting 9 at 5:30 P.M. with Jack Van de North and David McDonald of the Briggs and 10 Morgan law firm which represents St. Anthony in its litigation with the 11 U.S. Army et al over the City's contaminated groundwater. Discussions .12 during that closed meeting had included an update on the litigation and 13 discussion of the fee arrangements for Briggs and Morgan service in that 14 regard. r -15 PUBLIC HEARING 16 Ever=een Tax Increment District and Plan Tabled for Final 17 Redevelopment Agreement 18 At 7:00 P.M. Chair Sundland opened the public hearing on the above by 19 referring to the copy of the Notice of Hearing in the agenda packet 20 which had been published in the St. Anthony Bulletin, August 3, 1988. 21 Because information on additional cost estimates for soil correction 22 activities related to the Evergreen Townhomes in St. Anthony Project 23 are still not available, Mr. Childs in his August 19th memorandum had 24 recommended taking public testimony on the Redevelopment and Tax 25 Increment Plans but delaying adoption until negotiations are completed 26 on the Final Redevelopment Agreement with the Evergreen Development 27 Corporation to do that project. 28 The only persons present to provide input to the hearing were Vern Hoium 29 and Ursula Sheehy of Evergreen Development. The latter indicated a 30 recent Bulletin news account about the project had generated 31 reservations on 12 of the 37 units to be built and she anticipated more 1 interest in the property to be demonstrated in cities like Arden Hills 2 and Shorewood where similar articles are to run. MW 3 Mr. So th advised the H.R.A. to continue the hearing for a few more 4 minutes to see if any members of the public appeared. The following 5 H.R.A. business was conducted during that period: 6 JULY 12TH REGULAR AND AUGUST 4TH SPECIAL H.R.A. MEETINGS MINUTES 7 APPROVED 8 Motion by Ranallo, seconded by Marks to approve both of the above as 9 presented. 10 Notion carried unanimou 11 CLAIMS 12 Motion by Marks, seconded by Enrooth to approve payment of $2,474.20 13 to the Dorsey & Whitney law firm for legal services to the Housing and 14 Redevelopment Authority during June, 1988. 15 16 The hearing on the Evergreen proposal was resumed and the Chair 17 commented that he perceived the reason none of the neighbors had come 18 to this hearing might be because all the issues had been so well covered 19 during previous hearings on the project. 020 The documents which Mr. Childs had attached to his memorandum in the 21 agenda packet had included a copy of the Ramsey County Commissioners' 22 September 13, 1982 Resolution on the St. Anthony Chandler Place 23 Project, which the Ramsey County Executive Director advised still 24 reflected the County Board's concern regarding tax increment financing. 25 Copies of the August 23rd review of the Evergreen Tax Increment 26 Financing Plan by Independent School District x/282 School Superintendent 27 had been distributed prior to the hearing. The Executive Director 28 recommended the H.R.A. consider at a later date Dr. Meriwether's request 29 that revenues generated by the school's levy referendum be paid to the 30 school district. 31 Commissioner Ranallo advised the other H.R.A. members that he had put 32 money down on one of the Evergreen townhouse units and would therefore 33 be abstaining from all future votes having to do with the project, 34 including that approving the final reading on the zoning changes which 35 would require a 4/5 Council approval to be adopted. 36 The hearing was closed at 7:10 P.M. for the following motion to table: 37 H.R.A. Action 38 Motion by Marks, seconded by Enrooth to table action on the Evergreen 39 Townhouses of St. Anthony Project Redevelopment and Tax Increment Plans • 2 I as recommended by the Executive Director. Response to School District .2 #282's review of the plans would also be delayed until the appropriate 3 time in the project approval process. 4 Voting on the motion: 5 Aye: Marks, Enrooth, Sundland. 6 Abstention: Ranallo. 7 Notion carried. 8 CLOSED EXECUTIVE SESSIONS 9 F and G of the agenda both called for 10 to negotiation strategies having to 11 Kenzie Terrace Redevelopment Project, 12 public and required discussions with 13 Director which were closed to the pr 14 these opened at 7:11 P.M. I.R.A. directions to staff related do with the final phase of the which of course could not be made the H.R.A. Attorney and Executive ass and the public. The first of 15 H.R.A. Agrees on FicLure to be Presented to Arkell and Tus 16 Nr. Soth reported the discussions he and Mr. Childs had with the 1017 unsuccessful project developer, John Arkell, and his project architect, 18 Gary Tushie, in relation to a settlement proposal to refund a portion 19 of the forfeited arbitrage proceeds from the Housing Revenue Bonds 20 issued to finance that project. The H.R.A. Attorney reported that by 21 the close of those talks, both the architect and the developer had 22 suggested they might be willing to reduce their share of what remains 23 in the arbitrage funds as of September 1st. He gave a figure which he 24 perceived might be a realistic negotiating point which Mr.. Soth added 25 he thought would leave the developer owing much more on the project than 26 he could have ever hoped to get from what remains in the arbitrage 27 funds. 28 Nr. Childs indicated that if they were able to get the figure Mr. 29 Soth was suggesting, the City would be able to retain $190,000.00 of 30 the arbitrage proceeds to pay some of the project land costs. 31 H.R.A. Action 32 Motion by Ranallo, seconded by Sundland to authorize staff to negotiate 33 an agreement to return $280,000.00 of forfeited Letter of Credit dollars 34 and arbitrage earnings to Mr. Arkell to cover both his and the project 35 architect's claims, contingent on the Housing Redevelopment Bond issue 36 being closed September 20th. 37 Notion carried unanimously. 0 3 1 Land Acquisition Possible_iSiithout Condemnation 2 Mr. Soth indicated that his discussions with one of Max Saliterman's 3 attorneys, the shopping center owner's representative had been generally 4 positive and the possibility looked fairly good for a negotiated 5 purchase rather than a condemnation. Mr. Soth reported that the H.R.A. 6 would have to pay more than the current county assessor's value of 7 .$980,000, but less than the $2.2 million desired by the property owner. 8 Discussion was held regarding the Council's settlement position and the 9 staff was given guidance for further negotiations. 10 11 Motion by Ranallo, seconded by Enrooth to adjourn the meeting at 7:27 12 P.M. for the regularly scheduled Council meeting which followed 13 immediately. 14 15 Respectfully submitted, 16 Helen Crowe, Secretary 17 :cjk Motion carried unanimously.