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CITY OF ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
March 22, 1983
The meeting was called to order by Chairman Sundland at 7:31 P.M.
Present for roll call: Sundland, Vice Chairman Letourneau and
Secretary/Treasurer Marks.
Absent: Commissioners Ranallo and Enrooth.
Also present: David Childs, Executive Director; and Jerry Gilligan,
Dorsey & Whitney, Attorney.
The Secretary/Treasurer requested that the February 22nd minutes be
amended to indicate in the second paragraph of Page 2 that Mr. Yurick
had been absent from that meeting, "because of illness".
Motion by Vice Chairman Letourneau and seconded by Secretary/Treasurer
Marks to approve as amended the minutes for the H.R.A. meeting held
February 22, 1983.
Motion carried.
Commissioner Enrooth arrived at 7:35 P.M.
The Executive Director informed those present that the final draft
of the Redevelopers Contract for the Kenzie Terrace Redevelopment
Project had been typed the previous day but would not be executed
until several minor technical points had been negotiated with the
redevelopers but final approval could be expected sometime in April.
Bob Dougherty, 3101 Armour Terrace, and four other persons who indica-
ted they were interested in learning more about the type of housing
which would be provided, were told by the Chairman just how the final
selection of the Arkell-Kraus Anderson group had been made and given
the specifics of the housing planned for the three phases of the
project. He told them he perceives there would be a good mix of
alternative housing for those over 55, including low income subsidized
housing as well as market rate condominiums, for empty nesters and
possibly for younger residents, some with children, provided on the
ten acres of land located on both sides of Kenzie Terrace. The H.R.A.
Chairman said it is anticipated construction on the first phase of
the project, which includes 134 market rate senior condominiums, would
be started this fall on the two parcels north of Kenzie Terrace where
the C & G Body Shop and vacant lots are now.
Phase Two would include a low to moderate rental senior building for
which a non-profit organization intends to seek 202 H.U.D. financing
• and a market rate condominium for elderly and empty nesters which are
proposed to be constructed beginning in 1984.
The remaining two structures in the project, both market rate condo-
miniums, would be provided under Phase 3,in�approximately 1986,
according to the market demand at that time.
V.�
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Chairman Sundland told those present the H.R.A. has been very encouraged
by the community interest shown towards the project which at times
reached the point of almost being "a demand that the City get on with
the project as soon as possible".
Although no firm commitment had been made by H.U.D. at this time, the
Chairman indicated he perceives the conversation he and the Secretary/
Treasurer had with a H.U.D. official when they were in Washington, D.C.
had been very fruitful when it came to obtaining information which
Chairman Sundland perceives could prove very helpful for the non-
profit organization, which would develop the subsidized senior housing
in Phase 2. The City residents should be very impressed with the bi-
partisan support the project had received from Congressmen Sabo,
Sikorski, and Vento as well as Senators Boschwitz and Durenberger
who had all sent representatives to support the City's lobbying efforts
with H.U.D., according to Chairman Sundland.
Councilman Ranallo arrived at 7:46 P.M., and he and Dick Krier of
Westwood Planning & Engineering Co., the H.R.A. Planning Consultant,
and Stephen Yurick, representing the redevelopment group, participated
in the discussion.
Mr. Krier distributed copies of his memorandum to the H.R.A. members
in which he had addressed the purpose of the hearing to be held that
evening and recommended several actions to be taken by the H.R.A.
to continue the project.
For the benefit of those in attendance, Mr. Yurick summarized the
project as it would be developed in three phases, pointing each out
on the preliminary renderings of the project. One person who was
present asked how soon the units in Phase 1 would be available for
sale. Mr. Yurick told her his firm anticipates initiating a
presale of units as soon as the Redeveloper's Contract is signed.
The public hearing to take testimony on the sale of property for
Phase 1 was opened at 7:49 P.M.
Mr. Krier reiterated the schedule summary of dates for developing the
Kenzie Terrace Redevelopment Project as suggested by the tentative
developer and the H.R.A. negotiators.
April, 1983
Signing Redeveloper Contract, Deposit Letter of
Credit, Begin Property Acqusition and Relocation
May, 1983
Consideration of PUD Plan for Phase I, Make
Application for 202 Housing
July, 1983
Construction Plans Submitted, Deliver Second
Letter of Credit, Loan Commitment by Redeveloper
August, 1983
Sell Tax Increment Bonds Phase I
September, 1983
Sell Phase I Property to Redeveloper
November, 1983
Start Construction Phase I, Begin Acquisition,
Relocation Phase II
May, 1984
Construction Plans Phase II
June, 1984
Sell Tax Increment Bond Phase II and III
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July, 1984 Sell Phase II Property to Redeveloper
September, 1984 Start Construction
March, 1986 Construction Plans Phase III
May, 1986 Sell Phase III Land to Redeveloper
June, 1986 Start Construction Phase III
The consultant told Mr. Dougherty the Arkell group had been favored over
the other firms which had made a proposal because it appeared to the
H.R.A. that Arkell had the greatest commitment to developing the entire
project with the least risk to the City. He gave the time schedule for
submittal of the Letters of Credit and their amounts. Mr. Krier then
requested the tentative redevelopment designation to be extended to
April 30th, during which period, he said, he is certain an agreement
could be reached on the few minor issues which remain to be resolved
in the contract and a contract, "which would be equitable for both the
City and the redeveloper and which would limit the risks for both
parties", could be executed and acquisition and relocation for Phase 1
property completed.
Brad Bjorklund was present to report the minutes of the March 15th
Planning Commission meeting and he read the two motions which the
Commission had passed which indicated the Commissioners had found the
redevelopment plans for Phase 1 to be consistent with the City's Compre-
hensive Plan for that area and recommended the H.R.A. proceed with the
sale of property necessary for Phase 1 after a developer's agreement
had been executed. Mr. Bjorklund also reported the Commission would
be holding a public hearing on the preliminary Planned Unit Development
Plan for the project May 17, 1983.
The hearing was closed at 8:00 P.M.
Motion by Secretary/Treasurer Marks and seconded by Vice Chairman
Letourneau to instruct the Attorney to prepare the necessary resolutions
for approving the sale of the property for Phase 1 of the Kenzie Ter-
race Redevelopment Project and authorizing the execution of the Redev-
elopment Contract with the joint venture redeveloper.
Motion carried unanimously.
Motion by Secretary/Treasurer Marks and seconded by Commissioner Enrooth
to extend the tentative redevelopment designation of the Arkell-Kraus
Anderson group to April 30, 1983 as recommended by the H.R.A. Planning
Consultant.
Motion carried unanimously.
Mr. Gilligan who was substituting for the vacationing Bill Soth, was
introduced to the H.R.A.
Prior to making a motion for adjournment at 8:02 P.M., the Secretary/
Treasurer told those persons who were present that he perceives the H.R.A.
members are very pleased to see the redevelopment project, "becoming a
reality at last" and foretold that, "You will probably see a building
going up down there before the year is up." His motion to adjourn was
seconded by Commissioner Enrooth and passed unanimously.
Respectfully submitted,
Helen Crowe, Secretary