HomeMy WebLinkAboutHRA MINUTES 08261986CITY OF ST. ANTHONY.
• HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
August 26, 1986
The meeting was called to order at 9:03 P.M. by Chairman Sundland.
Present for roll call: Sundland, Vice Chair Enrooth, Secretary/Treasurer Marks,
and Commissioners Makowske and Ranallo.
Also present: David childs, Executive Director.
Motion by Secretary/Treasurer Marks and -seconded by Vice Chair;-Enrooth to.,approve,the
minutes of the H.R.A. meeting held June 10, 1986, with the following changes related
to H.R.A. members' titles:
Page 1, para. 3: Substitute "H.R.A." for "City" following "William Soth".
Page 2, para. 8: Substitute "Chairman" for "Mayor" before "Sundland" in line 1.
Page 2, para. 9: Substitute "Commissioner" for "Councilmember".before' "Makowske"
in line 1.
Page 2, para. 10: Substitute "Vice Chair" for "Councilmember" before "Enrooth"
in line 1.
Page 3, para. 4: Substitute "Vice Chair" for "Commissioner" before "Enrooth"
in line 1.
Motion carried unanimously.
Motion by Secretary/Treasurer Marks and seconded by Commissioner Ranallo to approve
payments of $440.91 and $1,022.20 to the Dorsey & Whitney law`.firm:for-services to
the H.R.A. during May and June, 1986.
Motion carried unanimously.
Secretary/Treasurer Marks indicated that as part of his duties as H.R.A. Treasurer,
he had gone over the books with Finance Director Carol Johnson and found that, as
recommended in the audit, she was separating the various H.R.A. accounts according
-to tax increment districts and he said.he had concluded Mrs. Johnson was "pretty ;aggressive"
when it came to obtaining the best interest available for money the H.R.A. had invested.
When Vice Chair Enrooth asked for the timetables for action for Phases II and III
of the Kenzie Terrace Redevelopment project,the Executive Director told him the developers
have to place the Housing Revenue Bonds by October 1st and would have to direct the
H.R.A. to acquire the land for their project before December 31, 1986, or they would
be in :default.
Mr. Childs reiterated as he had previously reported to the H.R.A. members, that he
had met with John Arkell several weeks before and the developer' had indicatedAArkell
•Development was still interested in doing their project, although they might be returning
with proposals for changes at a later date. The Executive Director said he had not
heard from Mr. Arkell since that date.
.-�M.ti
-2-
Commissioner Ranallo said he perceived from the Federal Register which had just come
out that the tax reform legislation would certainly be passed, and with the way the
limited partnerships were being wiped out, he had concluded there was no way the
senior rental project, as approved in December, could be developed as Mr. Arkell
had indicated. he intended.
Vice Chair Enrooth agreed that there was little likelihood the project which had
been approved by the H.R.A. "would get off the ground" without limited partnerships
and he asked what the City could do regarding the existing businesses in the shopping
center some of which he assumed are staying in that location only because they hope
to get relocation money to make a move. The Vice Chair pointed out that the City
itself had spent a large sum in architectural fees expecting to move its own liquor
warehouse to the Stonehouse, on "a contingency which at best is very questionable
at this time," and he suggested the time might have come for the City to look at
other renovative alternatives for that economically depressed area.
There was general concurrence that planning in that regard would have to be initiated
soon, although Mr. Childs said, he perceived the new tax legislation might also have
provided tax credits for low income senior rental under which many, seniors-
-.-living,--on the interest from their home equities might qualify for the approximately $800
rents in the Arkell development, a•possibility Brighton Development was also exploring
at this time for some of their projects around the Twin Cities. Progress in the
selling of those units was explored briefly before the H.R.A. members returned to
the possibility of Arkell defaulting on their project.
•The Executive Director commented that he perceived no one could say the H.R.A. had
not given reasonable extensions and allowed changes which would help the developers
to construct the project. Mr. Childs said he perceived the H.R.A. could use the
$400,000 in default penalty it would receive.from Arkell to entice another developer
to provide some other type of project, maybe even redoing the commercial, which studies
years ago had indicated might work for a portion of the redevelopment project. The
Secretary/Treasurer commented that he considered the agreement the H.R.A. had
with Arkell had been based on performance and not on what might happen to the tax
laws.
There was a short report by Mr. Childs on how units in the Kenzington and Village
Townhomes were selling before adjournment.
Motion by Commissioner Ranallo and seconded by Vice Chair Enrooth to adjourn the
St. Anthony Housing and Redevelopment Authority at 9:20 P.M.
Motion carried unanimously.
40
Respectfully submitted,
Helen Crowe, Secretary