HomeMy WebLinkAboutHRA MINUTES 11121985• CITY[OF ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
November 12, 1985
The meeting was called to order by Chair Sundland at 8:21 P.M.
Present for roll call: Sundland, Vice Chair Enrooth, Secretary/Treasurer Marks, and
Commissioners Ranallo and Makowske.
Also present: David Childs, Executive Director; and William Soth, Attorney.
During the consideration of the October 22nd H.R.A. minutes, Commissioner Makowske
observed that the comments about the change in December Council dates might better
have been recorded in the minutes of the Council meeting that evening instead.
Motion by Secretary/Treasurer Marks and seconded by Commissioner Makowske to approve
the minutes of the Housing and Redevelopment Authority meetings held October 22 and
29, 1985, with the following changes in the October 29th minutes:
Page 2, para. 3: Correct spelling of "perception" in line 1 and insert "Planning"
before Commission members" in line 4.
Page 3, para. 2: Strike the first sentence in paragraph and substitute "Mr. Soth said"
for "He said" in the second sentence.
• Motion carried unanimously.
Linda Donaldson of Brighton Development Corporation was present to discuss her
November 6th letter requesting the H.R.A. pay 55,000 of the $8,185 in unforeseen
soil corrections costs her firm had encountered when a layer of roots, not revealed
by soil borings, was discovered during the excavations under Building 1, in Phase I
of the Village Townhouses project. In her letter, the developer had also requested
that the developers be allowed to purchase all the land remaining to be developed in
Phases II and III at their November closing and that Brighton Development be granted
a discount of $5,000 on that purchase which was not scheduled until the following
spring.
In his memorandum reporting the request, the Executive Director had indicated that,
if the H.R.A. decided to assist the developers with the soil correction costs, for
which he perceived the City is not responsible, the money could be paid from the
$20,000 contingency fund built into the bond issue. Mr. Childs also said the early
land take down would be partially offset by what he estimated would be $3,139 interest
gained by the H.R.A. due to the early payment.
When Commissioner Makowske expressed concern that paying a part of the soil corrections
costs the H.R.A. might be admitting responsibility for soil problems in the site and
might be setting a precedent for having to give assistance in the same form on the
final phases if similar problems were encountered by the developers. It was explained
that once this transaction is completed, the City would have no further responsibility
relating to the land and the developers would accept the property as is.
• The developer then said the reason for the early take down had been that Brighton
Development had decided it would be a wise business decision to take advantage of the
construction loan availability for the final 23 units of the project. She also said
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the 35% of the total 29 townhomes had either been sold or reserved and with the upgrad-
•ing requested by those buyers, for whom price seemed not to be an issue, the cost of
some of the units was now running closer to $100,000. The developer added that she
doubted any of the units would be priced in the 80's when they are finally built and
she perceived that would be good for the City's tax increment returns.
Brighton Development is now working with Howard Dahlgren of the City of Roseville
regarding the possibility of constructing Phase IV of the Village Townhouses on the land
across Old Highway 8 where the old gas station burned to the ground recently,
Ms. Donaldson reported and she corrected an impression held by the H.R.A. that the
property was all zoned commercial by saying about 20,000 square feet in that parcel
are actually zoned R-1.
Mr. Soth, in commenting on Brighton Development's request for assistance, confirmed
that the City legally had no responsibility for the soil correction problems and
indicated he perceived an early take down wouldidiminish the City's risks -on the pro-
ject and would provide the money earlier for investing. He later indicated that it
would legally be more difficult to convey the land for Phase II without platting Phase
III than it would be for both phases simultaneously.
Vice Chair Enrooth said he did not like being "under the gun" for this phase and
wondered if there would be any harm in waiting until the next meeting where the
economics of the move could be written out. However, he went along with Commissioner
Ranallo's conclusions that, since neither the City or the developers had been re-
sponsible for the inaccurate soil borings, the costs should be split down the middle,
and the Attorney's confirmation that no precedent would be set for similar action on
•the last phases of the project. The Vice Chair also seemed to accept Commissioner
Ranallo's perception that retaining the good relationship the City had with Brighton
Development would also be worth a lot.
Ms. Donaldson indicated she perceived the split of costs would be a fair compromise
and would be willing to accept the Executive Director's estimation of the interest
which the City would gain for a 5-1/2 month earlier closing.
Motion by Commissioner-Ranallo and seconded-by.Secr.etary/Treasurer Marks to -reduce
the land costs for Village Townhouses Phases II and III by $7,467.50, representing
half of the soil correction costs incurred on Phase I and the interest estimated the
City would gain if Brighton Development Corporation purchased the remaining portion
of the project land November 15, 1985 rather than in the spring as required in the
Redevelopers Agreement with them.
Motion carried unanimously.
Copies of the mortgage the H.R.A. would carry on the Chandler Place project had been
included in the agenda packet and the Executive Director had recommended approval be
subject to the final review by the Attorney.
Motion by Secretary/Treasurer Marks and seconded by Vice Chair Enrooth to adopt the
resolution approving the mortgage for the Chandler Place project on the corner of
37th Avenue N.E. and Chandler Drive, subject to the approval of the H.R.A. Attorney.
H.R.A. RESOLUTION 85-012
• A RESOLUTION APPROVING THE MORTGAGE
FOR THE CHANDLER PLACE PROJECT
Motion carried unanimously.
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Mr. Childs had provided copies of the second draft of the Development Agreement
•between the H.R.A. and the St. Anthony Nursing Home (Health Center) for the Chandler
Place on which Mr. Soth indicated he was working on a few minor changes with the
developers' attorney and said the final document would be dated in December.
Motion by Commissioner Ranallo and seconded by Secretary/Treasurer Marks to adopt
the resolution approving the Chandler Place Redevelopment Agreement with the
St. Anthony Health Center, subject to final approval by the H.R.A. Attorney.
H.R.A. RESOLUTION 85-013
A RESOLUTION APPROVING THE CHANDLER PLACE
REDEVELOPMENT AGREEMENT
Motion carried unanimously.
Consideration of the Tax .Increment mechanisms for Phases IIB•and.III of the Kenzie
Terrace Redevelopment project had been given at the special meeting on the project
the previous evening.
A reiteration of the meeting dates for December preceded the adjournment.
Motion by Commissioner Ranallo and seconded by Commissioner Enrooth to adjourn the
H.R.A. meeting at 9:00 P.M.
• Respectfully submitted,
Helen Crowe, Secretary
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