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HomeMy WebLinkAboutHRA MINUTES 02121985OF • CITY OF ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY MINUTES February 12, 1985 The meeting was called to order by Chairman Sundland at 8:50 P.M. Present for roll call: Sundland, Vice Chair Enrooth, Secretary/Treasurer Marks, and Commissioners Ranallo and Makowske. Also present: David Childs, Executive Director; William Soth, Attorney; and Richard Krier, Consultant. Motion by Secretary/Treasurer Marks and seconded by Commissioner Ranallo to approve as submitted the minutes of the H.R.A. meeting held January 8, 1985. Motion carried unanimously. Motion by Secretary/Treasurer Marks and seconded by Commissioner Ranallo to approve payment of $245 to Donald A. Hennessy, CRA, for review of real estate appraisal and two fixture appraisals of the Walbon property for the Old Highway 8 Redevelop- ment Project. Motion carried unanimously. Motion by Commissioner Makowske and seconded by Secretary/Treasurer Marks to is approve payment of $2,192.86 to Derrick Companies for consulting services on the Old Highway 8 Redevelopment Project. Motion carried unanimously. Motion by Secretary/Treasurer Marks and seconded by Commissioner Ranallo to approve payment of $875 to Dorsey & Whitney for legal services on the Walbon and Kenzie Terrace properties in December 1984. Motion carried unanimously. Mr. Childs indicated the GME representatives had already reported to him that the initial testing of the soil on the Walbon property to be developed for townhomes had seemed to indicate there would be no problems for the project in the test results they were to submit February 13th. Motion by Commissioner Ranallo and seconded by Commissioner Makowske to approve payment of $938.50 to GME Consultants, Inc. for soil testing on the property to be developed for Old Highway 8 Redevelopment Project. Motion carried unanimously. The Council meeting which preceded this one, had been recessed in order that the two resolutions presented by Mr. Krier, related to the adoption of the Old Highway 8 Redevelopment and Tax Increment Plan and the establishment of a tax increment • district for that project, could be acted on by the H.R.A. and then referred back to the Council for their approval, as required by statute. In addition to those documents, the Executive Director had distributed copies of the February 8th -2- revised tax increment cash flow projections for the project which had been • developed by Springsted-Incorporated in response to the redevelopers changing the unit numbers for the project from 32 to 29. Mr. Childs indicated these changes had been made by Brighton Development so each townhome would have a double garage as recommended by the Council and neighbors in that area. He added that the cash flows worked out because the developers had agreed to raise the unit price from $81,000 to $84,000 to include the larger garage space, and that the amount of money the City would be paid for the land would remain the same as originally projected. The Executive Director indicated he perceived this would_r_e_sult in a $20,000 cash savings for the-H.R.A. along with about a $50-60,000 interest savings. The consensus of the H.R.A. members was that the increased garage size would be an improvement for the project and the fact that Brighton Development had been so open to the suggested changes in this regard prompted several of them to comment that they were very optimistic about future relations with the developer. Motion by Secretary/Treasurer Marks and seconded by Commissioner Enrooth to accept the February 8, 1985 revised tax increment cash flow projections_from_Springsted Incorporated-as Exhibit-C-for the Old Highway 8 Redevelopment Project Plan. Motion carried unanimously. During the discussion of the resolutions which would approve the Redevelopment Plan and would establish Tax Increment District #2 for the townhome project, Mr. Soth told the Commissioners they were only being asked to approve a general plan and not a design for the project. is Motion by Secretary/Treasurer Marks and seconded by Commissioner Makowske to adopt H.R.A. Resolution 85-001 and to forward the Old Highway 8 Redevelopment/ Tax Increment Plan to the City Council for appropriate action. H.R.A. RESOLUTION 85-001 A RESOLUTION APPROVING THE REDEVELOPMENT PLAN ENTITLED, "OLD HIGHWAY EIGHT REDEVELOPMENT PLAN AND TAX INCREMENT PLAN", DATED JANUARY 3, 1985 Motion carried unanimously. The identification of the date on which the Planning Commission reviewed the Redevelopment Plan as January 15, 1985 and the deletion of "duly adopt" after "resolution" were accepted in the first two lines of the third paragraph in the second resolution presented for H.R.A. adoption. Motion by Secretary/Treasurer Marks and seconded by Vice Chair Enrooth to adopt the resolution which establishes Housing and Redevelopment Tax Increment District H2 for the Old Highway 8 Redevelopment Project; adopts a Redevelopment/Housing Program and Finance Plan for the district; and which directs the Executive Director to apply to the City Council for approval of the Plan and the new district. H.R.A. RESOLUTION 85-002 (� A RESOLUTION TO DESIGNATE AND ESTABLISH A HOUSING/REDEVELOPMENT DISTRICT • NUMBER 2 PURSUANT TO THE PROVISIONS-OF-SECTION 462 OF THE MINNESOTA STATUTES AND ESTABLISH A TAX INCREMENT DISTRICT PURSUANT TO THE PROVISIONS OF SECTION 273.71 TO 273 778 INCLUSIVE OF THE M'INNESOTA STATUTES (CHAPTER 322, LAWS OF MINNESOTA, 1979) AND ADOPTING A REDEVELOPMENT PROGRAM/_HOUS.I_NG PROGRAM AND FINANCE PLAN_ FOR SAID HOUSING OR REDEVELOPMENT AND TAX INCREMENT FINANCING DISTRICT -3 - Motion carried unanimously. • The Chair recessed the meeting at 9:06 P.M. so the Council could be reconvened to act on the above H.R.A. recommendations. When that had been accomplished, the H.R.A. was reconvened at 9:11 P.M. to receive the Council's response in the forms of Resolutions 85-015, 85-016, and 85-017 acceding to the H.R.A. requests. The Attorney then presented for H.R.A. guidance regarding several issues, the proposed Redevelopment Agreement to be finalized with Brighton Development the next day. The H.R.A. members agreed with staff's intention of standing fast on --, n the City's not taking on the responsibility for paying the taxes for 1985_and 1_986, as requested -by the redevelopers: Mr --Krieg agreed with co that. nsensus indicating he perceived to do so would probably affect the increment cash flows for the project. There was also H.R.A. agreement with staff that the $70,000 Letter of Credit would provideadequate_protection without requiring personal guarantees from the Brighton Development shareholders. The Attorney's suggestions for restricting the transfer of ownership was also acceptable. The H.R.A. perceived the soil testing results to be submitted the next day would resolve any hazardous waste questions, one way or another, although, the Executive Director reiterated he would not expect any unforeseen problems to develop in that regard. In spite of the complicated land description for the Walbon property, Mr. Soth indicated he had found no title problems with the redevelopment property and he • confirmed that the triangular shaped parcel on the west side of the property had been satisfactorily handled. The Executive Director indicated the drawings for Schedule A-1 would have to be for 29 units rather than 32 and Mr. Soth gave the following tentative figures for Schedule B-1 and C, which he reminded the H.R.A. would have to correspond to the Springsted cash flow projections: Allocation of Purchase Price Phase I $ 43,200 Phase II 79,200 Phase III 85,600 $208,000 Mr. Soth said the dates on which Brighton Development would purchase the land, tc be inserted on Schedule D, would -6f 30-1985 for the six units of Phase'I; September 30, 1985 for the 11 units of Phase II; and April 30, 1986 for the final 12 units in Phase III. The completion dates would have to correspond to the Springsted projections just accepted for Schedule C, according to the Executive Director. The H.R.A. instructed the staff to accede to Brighton Development's request that several items in the deed covenants be deleted as being too specific and since the • City already has control over the type of sidewalks which would be installed. They also concurred with the insertion of "and a statement by the H.R.A. that Brighton Development is in default"•shoul'.d'be sufficient in the second paragraph of the Irrevocable Letter of Credit, Exhibit B. • U -4 - The Attorney told Commissioner Ranallo the Redevelopment Agreement had to be signed before the City executes the purchase agreement with the Walbons who have had to wait six weeks for that to happen and have indicated they can wait no longer. The Commissioner responded by saying he personally would have no problem with having an H.R.A. meeting called Thursday, if staff believes they need further guidance on the Redevelopment Agreement. Motion by Secretary/Treasurer Marks and seconded by Chairman Sundland to authorize the Executive Director, Attorney, and Consultant to finalize the Redevelopment Agreement with Brighton Development Corporation to develop the Old -Highway Eight Redevelopment Project in accordance with the guidelines provided by the H.R.A. members February 12, 1985, and to further authorize the Executive Director and Chairman to sign that agreement. Motion carried unanimously. Mr. Soth then advised the H.R.A. that Brighton Development had asked that they be permitted to erect a sign and sales office on Phase I property and gain construction access off 33rd Avenue N.E. to that site before they take title in May. When she was convinced that the City would be adequately protected by the Letter of Credit and threat of lawsuit from having the redevelopers pull out of their agreement if initial sales weren't up to their expectations, Commissioner Makowske joined the other H.R.A. members in agreeing.,with that request. The H.R.A. perception was that the sooner the sales efforts are initiated, the better the chances would be the project would succeed, withhe tKeniington project cited as an example of y the reverse where sales efforts were delayed too long, according to some of the H.R.A. Motion by Chairman Sundland and seconded by Vice Chair Enrooth to adjourn the Housing and Redevelopment Authority meeting at 10:15 P.M. Motion carried unanimously. Respectfully submitted, Helen Crowe, Secretary