2000-03-28Il ,IS i i I &d, I, I ,~ ,
REGULAR MEETING
MOUND HRA -MARCH 28, 2000
The Housing and Redevelopment Authority of the City of Mound, I-Iennepin County,
Minnesota, met in a regular session on Tuesday, March 28, 2000, at 7:00 p.m., in the
Council Chambers at 5341 Maywood Road, in said City.
Those present: Chairperson Pat Meisel; HRA Board Members: Bob Brown and Leah
Weycker. Absent and Excused: HRA Board Members Andrea Ahrens and Mark Hanus.
Also in attendance were Acting City Manager Fran Clark, City Attorney John Dean, HRA
Director Pinky Charon, Mound Visions Coordinator Bruce Chamberlain, and Secretary Sue
McCulloch. Others present: Randy Beyreis, Jane Carlson, Walter Couden, Blair
Lindemyer, Mrs. Longpre, Peter Meyer, Mike Pfeiler, Frank Weiland.
Consent Agenda: All items listed under this Consent Agenda are considered to be routine by
the Housing and Redevelopment Authority. There will be no separate discussion of these
items unless a Councilmember or citizen so request, in which event the item will be removed
from the Consent Agenda and considered in normal sequence.
Chairperson Meisel called the meeting to order at 7:05 p.m.
APPROVAL OF AGENDA AND CONSENT AGENDA.
MOTION by Brown, seconded by Weycker, to approve the agenda and consent
agenda as submitted. Motion carried. 3-0.
*1.0 INDIAN KNOLL MANOR CONSENT AGENDA.
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MONTHLY BILLS.
MINUTES - FEBRUARY 22, 2000.
1.1 ACCOUNTING REPORTS.
A. ACCOUNTANT REPORTS.
HRA Director stated she has started using the monies received from the $67,000 grant. She
has tinted the windows and is getting bids to have the vents cleaned. She is a bit frustrated
with the two bids because they are $7,000 apart from each other.
HRA Board Member Brown asked the HRA Director if she has heard from a man by the
name of "Mike" who could give her a quote on a new type of vent cleaning process. She
stated she has not heard from "Mike." HRA Board Member Brown will contact "Mike" and
have him call her.
MOUND HRA MINUTES - MARCH 28, 2000
HRA Director stated she would be making landscaping improvements as well with the grant
money.
B. BANK ACCOUNTS.
HRA Director reported no new information.
1.2 HRA ACTION ITEMS.
A. RESOLUTION g00-6 MAINTENANCE POLICY.
HRA Director stated in May, 2000, she will be presenting a five-year maintenance plan to
the HRA Board Members that will need to be submitted by July 15, 2000.
Chairperson Meisel asked how the HRA Director intends to comply with the maintenance
plan with regard to the 32 hours of training requirement. HRA Director stated she would do
the best job possible. She further stated her caretaker has quit and she will actively be
pursuing another candidate to fill this spot.
Chairperson Meisel suggested calling an insurance company that might have videos that
would assist in this training. HRA Director will speak to the Public Works Director about
this as well. HRA Director noted the requirements with this policy are excessive for her
small building.
MOTION by Weycker, seconded by Brown, to accept the Maintenance Policy as submitted.
RESOLUTION//00-6:
RESOLUTION ADOPTING MAINTENANCE
POLICY EFFECTIVE APRHJ 1, 2000.
The vote was unanimously in favor. Motion carried. 3-0.
B. RESOLUTION//00-7 TENANT CHOICE IN RENT.
HRA Director stated the agreement specifies there will be a flat rent policy by tenant choice
put into effect upon the acceptance of the attached resolution.
HRA Board Member Weycker noted the word "Hopkins" should be replaced with the word
"Mound" in the resolution. HRA Director agreed with this correction.
MOTION by Brown, seconded by Weycker, to accept the Tenant Choice in Rent - Flat Rent
Policy with the above change.
RESOLUTION g00-7:
RESOLUTION ADOPTING TENANT CHOICE IN
RENT - FLAT RENT POLICY.
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MOUND HRA MINUTES - MARCH 28, 2000
The vote was unanimously in favor. Motion carried.
1.3 INFORMATION ITEMS.
A. THE CONTINUING SAGA WITH HUD.
B. APRIL 25, 2000, INDIAN KNOLL MANOR MEETING.
1.4 MISCELLANEOUS.
HRA Director will not be in attendance at the April 25, 2000, meeting because of her
scheduled surgery. She stated if there are no TIF items, the meeting could be cancelled.
Chairperson Meisel asked about the March 21, 2000, meeting. HRA Director had nothing to
report to date because of active discussions to date.
HRA Board Member Weycker asked about the March 16, 2000, hearing. HRA Director
stated she has not read the documents to date, but will review them at a later date and time.
1.5 TENANT REPRESENTATIVE REPORT.
There was nothing to report.
1.6 TAX INCREMENT FINANCING AGENDA.
A. MOTION TO APPROVE RENTAL FORBEARANCE AGREEMENT ON
LONGPRE PROPERTY.
Mounds Visions Coordinator summarized the rental forbearance agreement. He restated the
rental forbearance agreement is intended as an incentive for property owners within the
redevelopment district to not release property if it becomes vacant. The advantage to the
HRA in this scenario is that tenant relocation costs would not be incurred when and if the
property is redeveloped. The advantage to the property owner is that they will receive
payment in lieu of rent if the property is redeveloped.
Chairperson Meisel wanted to be assured the project is moving forward and the developer
does understand the City of Mound is anxious to see some progress very soon. She further
stated by having the rent forbearance agreement we are helping the City of Mound by
keeping relocation costs down as well as assisting current property owners, such as Mrs.
Longpre.
Mounds Visions Coordinator stated the project is progressing forward at an acceptable rate.
There will be documentation presented on April 11, 2000. He wanted the Board Members
assured this type of redevelopment takes time to work through the development agreement.
He is confident this project will be successful.
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Il ,11 Il I I &l, &, ~1 B ,~,
MOUND HRA MINUTES - MARCH 28, 2000
Mounds Visions Coordinator stated this agreement does not disallow the property owner to
lease its property, but its does try to discourage the property owner from doing so.
MOTION by Weycker, seconded by Brown, to accept the Rental Forbearance
Agreement on Longpre Property as submitted. The vote was unanimously in
favor. Motion carried. 3-0.
Be
APPROVE ISSUANCE OF CERTIFICATE OF COMPLETION TO JRW
PROPERTIES - RE: COMMERCE PLACE SHOPPING CENTER.
APPROVE ASSIGNMENT OF REMAINING OBLIGATIONS OF JRW
PROPERTIES CONTRACT TO UNITED PROPERTIES.
D. AUTHORIZE THE ACCEPTANCE OF A SUBSTITUTE LETTER OF
CREDIT FROM UNITED PROPERTIES.
E. AUTHORIZE RELEASE OF THE CURRENT LETTER OF CREDIT TO
JRW PROPERTIES UPON RECEIPT OF LETTER OF CREDIT FROM
UNITED PROPERTIES.
The City Attorney summarized the private redevelopment agreement and stated this is a
fairly routine process and the HRA will be seeing more of these in the future. He stated
items B, C, D and E all relate to the private redevelopment agreement. He stated JRW
Properties is a creditable operation as well as United Properties. He stated United Properties
would be assuming the obligations JRW Properties had with regard to the tax situations and
such. The City Attorney stated the original agreement stated United Properties would
assume these obligations by a letter of credit, although with the second supplement to the
agreement for private redevelopment that the City Attorney presented tonight, United
Properties would assume these responsibilities by a letter of credit or a substitute letter of
credit. The City Attorney further stated no changes would take place until either of the letter
of credits have been presented adequately.
MOTION by Brown, seconded by Weycker, to accept B, C, D and E of the
private redevelopment agreement as submitted above. The vote was unanimously
in favor. Motion carried. 3-0.
1.7 INFORMATION/MISCELLANEOUS.
1. Letter that will be sent to Langdon District property owners.
The Acting City Manager stated the letter was sent on March 28, 2000, to the
property owners.
2. Note from Bruce Chamberlain regarding the Balboa Property Purchase Agreement.
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MOUND HRA MINUTES - MARCH 28, 2000
The City Att0mey stated Maxwell rejected the City of Mound's offer because of three
points. (1) not sufficient price; (2) the closing date does not satisfy the specific
environmental concerns; and (3) he is interested in 100 percent cash at closing or a
short term note with a balloon payment. The City Attorney stated the financial
arrangements should be discussed with the Finance Director before making a decision.
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Chairperson Meisel suggested the next step would be to have the HRA renegotiate the
price and she would like to have discussions about the price at the April, 2000, COW
meeting when all members are present.
Mounds Vision Coordinator stated Maxwell would not consider the City of Mound's
offer if the City is not willing to address his three concerns of rejection. Maxwell
does have another interested individual in the property.
The City Attorney suggested to the HRA that when they meet at their COW meeting
to consider the remediation costs.
MOTION by Brown, seconded by Weycker, to adjourn the meeting at 7:25 p.m.
The vote was unanimously in favor. Motion carried. 3 -0.
Fran Clark, Acting City Manager
Attest: Chairperson Meisel
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