HomeMy WebLinkAboutHRA MINUTES 05101983L�
M
CITY OF ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
May 10, 1983
Chairman Sundland called the meeting to order at 7:51 P.M.
Present for roll call: Sundland, Vice Chairman Letourneau, Secretary/
Treasurer Marks, and Commissioners Ranallo and
Enrooth.
Also present: David Childs Executive Director; William Soth, Attorney;
Dick Krier of Westwood Planning & Engineering, Inc.,
Planning Consultant; Stephen Yurick of Arkell Develop-
ment, Tentative Redevelopers of the Kenzie Terrace
Redevelopment Project; and Carol Johnson, City Finance
Director.
Motion by Commissioner Ranallo and seconded by Vice Chairman Letourneau
to approve as submitted the minutes of the H.R.A. meeting held March
22, 1983.
Motion carried unanimously.
Mr. Krier reported there had been a further delay in signing of the
Redevelopers Contract so additional information vital to the successful
development of the project could be researched. Additional appraisals
of the real estate had been ordered so Kraus Anderson, the co -developer,
could be assured the purchase figures would be consistent with those
of the Department of Housing and Urban Development; a new budget had
been developed; and his firm had developed a new cash flow analysis
which addressed "the worst case possibilities which could happen before
the project is completed", Mr. Krier said. He had concluded that
this analysis supported his belief that even with delays in the Phase
2 and 3 schedules and only a partial completion of Phase 3, the project
could be considered a highly feasible undertaking, with only a limited
risk for the City.
The latest version of the Redevelopers Contract had been provided the
H.R.A. members for review prior to the meeting. Referring to the
section addressing condemnation, the Secretary/Treasurer cited a
recent court ruling which had raised some questions in his mind about
the extent of risk for the City once condemnation proceedings are
initiated.
Mr. Soth told him it should be recognized that at some time the City
would be forced to buy the property with some risk involved, with the
greatest risk possible during the acquisition of land for Phases 2
and 3. However, he said he would anticipate the City would proceed
with condemnation proceedings only after they had reached a "level of
comfort" with such a step. According to the Attorney, the developer
had authorized the City to proceed with the acquisition of land for
-2 -
Phase 1, but Mr. Soth said he would anticipate very little risk to
be involved, "unless you have missed the cost of the land by a great
deal". Intense efforts have been taken to negotiate the sale of the
property without condemnation, which could take 120 days, Mr. Soth
reported, but he added that he would recommend against actual acquisi-
tion without the contract being signed first.
Mr. Yurick indicated the redevelopers have no major problems with the
contract and anticipates signing it and submitting the Letter of Credit
before the next H.R.A. meeting. He said he was very optimistic about
the project since his company has received over 200 inquiries about
just the 134 units which would be constructed first and he still
believes that project can be started this fall.
Since he would be unable to attend the next Council meeting, May 24th,
the Secretary/Treasurer wondered if the H.R.A. meeting could be
scheduled in advance of that date. When this did not appear to be
possible, he made the motion, which Commissioner Enrooth seconded,
to schedule a Housing and Redevelopmeny Authority meeting for May 24,
1983 and to direct that it be put into the record that a special H.R.A.
meeting scheduled for May 3rd had been held instead on May 10th.
Motion carried unanimously.
Motion by Secretary/Treasurer Marks and seconded by Vice Chairman
Letourneau to approve payment of $3,073.46 to Westwood Planning &
Engineering, Inc., representing the H.R.A. share of the costs of the
Kenzie Terrace Redevelopment Study.
Motion carried unanimously.
Motion by Commissioner Ranallo and seconded by Secretary/Treasurer
Marks to adjourn the Housing and Redevelopment Authority meeting
at 8:15 P.M.
Motion carried unanimously.
Respectfully submitted,
Helen Crowe, Secretary