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HomeMy WebLinkAboutHRA MINUTES 03081988n U C 2 TY O F S T. ANT HOINT Y HOU S T N G AN D R E D EV E L O PMENT AUTHOR 2 TY M= N UT E S MAR C H 8, 1 9 8 8 1 The meeting was called to order at 9:20 P.M. by Chair Sundland. 2 Present for roll call: Sundland, Vice Chair Enrooth, Secretary/ 3 Treasurer Marks, and Commissioners Makowske 4 and Ranallo. 5 Also present: David Childs, Executive Director 6 William Soth, H.R.A. Attorney 7 FEBRUARY 24, 1988 H.R.A. MINUTES 8 Motion by Marks, seconded by Ranallo to approve as presented. 9 Motion carried unanimously. 10 CLAIMS 11 Motion by Ranallo, seconded by Enrooth to approve payment of $146.25 12 to the Dorsey & Whitney law firm for legal services rendered the 013 H.R.A. in January, 1988, having to do with final development of the 14 Kenzie Terrace Redevelopment project. 15 Motion carried unanimously. 16 STAFF UPDATE ON KENZIE TERRACE REDEVELOPMENT PROJECT - CHILDS AND SOTH 17 Childs reported: 18 *Gaughan had consented to putting up $20,000 which Lang/Nelson 19 surpassed by agreeing to the $40,000 the H.R.A. had said it 20 needed as a guaranty the project would be finished; 21 *he and Mr. Soth had not been quite ready to recommend accept - 22 ance of the latter without first telling the H.R.A. what Lang/ 23 Nelson's contingencies would be for doing that; 24 *they would be meeting with Lang/Nelson the rest of the week and 25 it was very possible the differences might be worked out by 26 the middle of next week so the H.R.A. could hold a special 27 meeting where either Gaughan or Lang/Nelson would hopefully 28 present the $360,000 Letter of Credit as well as either the 29 $20,000 or $40,000 option payment and sign the Redevelopers 30 Agreement; 31 *he was not yet sure which would happen since both developers •32 seem to want to do the project. •I In relation to the Lang/Nelson talks, the Executive Director said the 2 negotiator, Mr. Brewer, had brought in a conditional commitment from 3 Juran and Moody to finance the project, which he perceived Lang/Nelson 4 and the financing firm hadn't yet negotiated fully. He added that 5 those negotiations couldn't be completed until the next Monday when 6 all the Juran and Moody people would be back from Hawaii. So, of 7 course, the Lang/Nelson negotiator was reluctant to hand over the 8 $40,000 check before those negotiations were finalized. 9 Soth reported one thing Lang/Nelson had said they were prepared to do 10 was to put $40,000 at risk if they were designated as the project 11 developers. However, because of the uncertainties surrounding the 12 financer's contingencies, he and Mr. Childs had been reluctant to make 13 a firm recommendation to the H.R.A. before next Monday. 14 Childs indicated another issue he perceived the H.R.A. should 15 consider was the possibility that Lang/Nelson might want to construct 16 three buildings, which would change the building footprints a bit and 17 leave less green space, but would permit the developers to enlarge 18 the unit size to meet what they perceive to be the market demand. He 19 said it would be up to the H.R.A. and Planning Commission to interpret 20 how significant those changes were when it came to deciding whether 21 public hearings were necessary, but added whatever number of 22 buildings there were, Lang/Nelson would be doing the project all at 23 one time. •24 2 Ranallo restated his opinion that $20,000 difference between the two 5 offers wasn't that much money and he thought the City should stay 26 with Gaughan whose plan he liked best. 27 Soth told him he would have been a lot more comfortable with 28 designating Gaughan as developer if they had come right out and 29 indicated they intended to do the project and were only waiting to 30 find out what they had to do to get it done, rather than indicating 31 they wanted to get "everything" and telling the negotiators it was 32 O.K. with them if they found another developer. 33 Sundland agreed that Gaughan had not kept their original promise to 34 the H.R.A. to sign the agreement first and "button down" the details 35 later. 36 Childs indicated, on the other hand, that he knew from financial 37 people Gaughan was negotiating with, that the developer was working 38 hard trying to get financing. He also said the Gaughan architect had 39 told him he was working on different plans for the project every day 40 that the developer was talking to financial institutions to try to get 41 backing.. He added that there were people looking at the project for 42 both developers every day and perceived it would be better for the 43 next five days to let both keep on working to get the best financing 44 deal they can. The Manager told Mr. Soth he had gotten a call from 45 Paul Brewer of Lang/Nelson after he had talked to the attorney, which is 2 •1 indicated they wanted to work on the Redevelopment Agreement this week 2 so they wouldn't have to waste time on it next week. 3 Soth told Commissioner Ranallo that considering there would still be 4 200 units in the project, public hearings on Lang/Nelson's changes 5 might not be necessary, depending on how significant those changes 6 might be. 7 Childs indicated the developers perceived they needed the extra 100- 8 200 square feet per unit to be successful in marketing the project, 9 which the Vice Chair indicated from a marketing perspective , he 10 couldn't argue with. 11 Makowske agreed larger units might be better for the project: 12 ADJOURNMENT 13 Motion by Ranallo, seconded by Marks to adjourn the H.R.A. meeting at 14 9:35 P,.M. for an informal discussion of timetables for Executive 15 Sessions relative to the water contamination litigation. 17 Respectfully submitted, 018 Helen Crowe, Secretary 19 3 Motion carried unanimously.