HomeMy WebLinkAboutHRA MINUTES 10131987C= TY O F S T_ ANTHONY
HOU S = N G AND REDEVELOPMENT
AUTHOR 31TY M 2 N UT E S
O C TOB E R 3-3, 1987
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.
16
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 Arkell arbitrage.
18 Motion carried unanimousl
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 unanimously.
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
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• 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.
024 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
046 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.
025 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
�45 directs the H.R.A. Chair,
by Marks to adopt the resolution which
Executive Director and Consultant to
M
10 1 execute the Redevelopers
2 resolution of any issues
3 to be negotiated.
4
Contract with the Gaughan Company subject to
which the City Attorney indicated remained
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 Makowske to adjourn the meeting at
18 9:25 P.M.
19 Motion carried unanimously.
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20 Respectfully submitted:
21 Helen Crowe, Secretary
22 :cjk
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