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1987 07 30HOUSING AND REDEVELOPMENT AUTHORITY MINUTES JULY 30, 1987 CALL TO ORDER: Vice-Chairman Horn called the meeting to order at 7:30 p.m. Members present: Whitehill, Swenson, Horn, Bohn, and Robbins. No members were absent. Also present were Don Ashworth, City Manager and Todd Gerhardt, Administrative Assistant. APPROVAL OF MINUTES: Motion by Swenson, seconded by Robbins to approve the June 11, 1987, minutes as presented. All voted in favor and the motion carried. CONCEPT DISCUSSION ON DAY CARE SITE: Ashworth explained how the financial restructuring of the day care facility will come about contingent upon the following conditions: The HRA enter into an option agreement with Loren Anderson, owner of the Union 76 Station. This agreement would include a value established for the parcel through the HRA's budget process, a waiver of relocation bene- fits, and setting a date to vacate the premises consistent with the construction time table. 2. Establish a public hearing date for the municipal parking lot public improvements on the north side of West 78th Street. Ashworth further explained that he would present these conditions to the City Council on August 3 and request that a public hearing date be set for August 24th. Commissioner Robbins asked who would maintain the parking lot once it has been completed. Ashworth explained that the City would take bids for the snow removal and then assess those costs back to each benefitting property. Chairman Whitehill moved, Commissioner Robbins seconded, that the HRA direct staff to prepare the option agreement with the con- ditions set forth by the City Manager. All voted in favor and the motion carried. CONCEPT DISCUSSION ON RETAIL CENTRAL SITE: Ashworth explained that at our last meeting the HRA agreed with Clayton Johnson that the Retail Central site could not be a self-supporting site and that outside increments would be needed. Staff has looked into expanding the City's Economic Development District boundaries to include certain parcels within the down- town area and also remain within Tax Increment District 41. Ashworth explained that this would allow the City/HRA to choose which district could fund acquisitions/demolitions within the district's boundary. In essence, this approach solves the problem that has confronted the HRA for the past two years. HRA MINUTES JULY 30, 1987 PAGE 2 The Economic Develompent District will cease to exist in 1989. Any monies remaining in the district will then go back to Hennepin County, Eden Prairie School District, City of Chanhassen, and miscellaneous districts (55%, 25%, 15%, 5%, respectively, out of the remaining total after metropolitan fiscal disparities pool receives their top 40% of the district funds). Staff is recommending that the HRA approve this concept and recommend approval to the City Council. The Council would then consider this item on August 3rd. Commissioner Swenson moved, seconded by Commissioner Robbins, that the HRA take all actions necessary to expand the Economic Development District boundaries. All voted in favor and the motion carried. LOW INTEREST LOAN PROGRAM: Ashworth explained that staff has reviewed other city's low interest loan programs. A number of options have been considered, including establishment of a total principal and interest payment that meets the needs of each indi- vidual applying for the program. All of these alternatives have been in vain as the administrative and load costs remove any benefits of reducing the interest rates. Staff feels they have another alternative in providing assistance. Specifically, for Mr. Krueger (owner of the Riviera Restaurant), is looking to remodel his building so that it may blend in with Retail West. If Mr. Krueger would agree to have his lot included in the parking lot improvement project, the City would, in effect, be offering a low interest loan of 8% over 10 to 15 years. Ashworth further explained that he would draft a letter stating all the alterantives to Mr. Krueger and have Chairman Whitehill review the letter for his comments before sending it to Mr. Krueger. No further action was needed on this item. DOWNTOWN REDEVELOPMENT IN REVIEW: Ashworth gave a verbal update on the action taken to date with the Downtown Redevelopment Project. He also explained the legal action on Mr. Burdick's property and the court ruling in favor of the City. Commissioner Swenson commented on the pond site and her concern of the size and design of pond. No luther action was needed. APPROVAL OF JUNE BILLS: Motion by Whitehill, seconded by Swenson to approve the June bills as presented. All voted in favor and the motion carried. Motion Dy Bohn, seconded by Robbins to adjourn the meeting at 9:47 p.m. All voted in favor and the motion carried. Prepared by: Todd Gerhardt, August 7, 1987