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HRA 02/14/1991 - 29618.--�, � CITY OF FRIDLSY HOIIBINa & REDEVELOPMENT AIITHORITY MEETING, FEBRIIARY 14, 1991 CALL TO ORDER: Chairperson Commers called the February 14, 1991, Housing & Redevelopment Authority meeting to order at 7:40 p.m. ROLL CALL: Members Present: Larry Commers, Duane Prairie, John Meyer Members Absent: Virginia Schnabel, Walter Rasmussen Others Present: William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Jim Hoeft, HRA Attorney Rick Pribyl, Finance Director Paul Hansen, Accountant Dr. Dennis E. Rens, Independent School Dst. #14 Jai Suh, 6440 University Avenue NE, Fridley, MN 55432 George Borer, Attorney, 1200 Capital Centre, St . Paul , NIl�T Bill Schatzlein, 4032 Grand Avenue South, Minneapolis, I+�.�T Doug Erickson, Fridley Focus APPROVAL OF JANUARY 10, 1991 HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the January 10, 1991, Housing & Redevelopment Authority minutes as written. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERBON COrIIKERB DECLARED THE MOTION CARRIED IINANIMOIIBLY. ACTION ITEMB: 1. RECON5IDERATION OF TIF TURNBACK TO SCHOOLS Mr. Commers stated the HRA had received, with their agenda, a letter from Dr. Rens, Superintendent of Independent School District #14. Mr. Burns stated the City had received a formal request from Dr. Rens stating the loss of over $40,000 would mean the loss of 1.5 teaching positions at a time of financial need for the r"� � r"1 HOIIBIN� & REDEVELOPMENT AIIT80RITY MEBTINm. FEB. 14� 1991 PAaE 2 School District. The School District did not anticipate the loss in the financial planning for this year. The turnback projected for School District #14 remains the same as 1990. There has been confusion about what is being turned back. All of the turnback money is money collected as the result of post-1979 school district referendum levels. The school district's turnback is based on a 2 mill levy approved in 1983 and a 2.5 mill levy approved in 1986. There are no additional levies since beginning the turnback program in 1988. Therefore, growth in turnback for the school district since 1988 has been due to property appreciation and new property placed on the tax rolls, not additional levies. Mr. Burns stated that at an earlier meeting the HRA expressed concern that the size of the turnback would continue to grow. At the last meeting, Mr. Burns returned figures to the HRA developed by the City Assessor showing the increases and decreases for various tax increment project areas. Using this information, between 1991 and 1992, they are going to realize a net increase of $266,513 of value, or it looks like a 20� revenue growth. If they apply the 20� figure to the 1991 potential turnback, it would rise to $322,800. After that, they think the TIF return will stabilize. The main reason for an anticipated jump in 1991-92 is the value for the Moore Lake Racquet Club will come on line. Copies of the City Assessor's analysis of major projects were distributed. Mr. Commers stated, when looking at the budget preparation materials, he did not understand why there was money allocated to School District #14 from the Skywood/Johnson project. Mr. Hanson stated the Skywood/Johnson project is a noncontiguous tax increment finance district. Mr. Pribyl stated this was done when the district was approved as a noncontiguous tax increment district. There were two separate areas that were approved as part of one process. Mr. Prairie asked if Johnson Printing is also in School District #14. Mr. Pribyl stated the Johnson Printing parcel is in School District #14, and the Skywood Mall parcel is in School District #13. Mr. Prairie asked if there is any way to separate these so it would not be so confusing. Mr. Pribyl stated, no, that is the way it was approved. Mr. Commers asked if the City collected the monies. ^ HOIIBING � REDEVELOPMENT AOT80RITY METsTINa, FEB. 14, 1991 PAGE 3 Mr. Pribyl stated the County collects the funds and separates the funds by a code. Each segment of a tax increment is assigned a code. The City has no internal allocation. Mr. Prairie asked if the Johnson parcel is going to be turned back. Mr. Pribyl stated it would be returned to the tax rolls for taxes payable in 1994. Mr. Prairie asked if, at that point, Tax Increment District #4 would consist solely of Skywood and if there would be no turnback to School District #14. Mr. Pribyl stated that all increment would then be returned to the tax rolls as that district terminates. Mr. Commers asked if the dollar amount is $19,955 a year. Mr. Pribyl stated Johnson's total tax increment payable in 1991 is $101,000. ^ Mr. Commers stated that, of that amount, $19,955 would go to the school district as a refund. Mr. Hansen stated this is correct. Mr. Commers asked if, after 1993, this would no longer be part of the refund. Mr. Pribyl stated this is correct. The property will be back on the tax rolls. Nlr. Prairie stated the school district would then end up with more. Mr. Pribyl stated this would likely happen. Mr. Commers asked if this matter had been returned to the HRA by the City Council. Mr. Burns stated that no action has yet been taken by the City Council, so this item was returned informally to the HRA. Mr. Prairie stated the HRA discussed this issue at their last meeting. What has generated the increase in amount from $66,000 to $268,000? He spoke with Mr. Jim Ferguson briefly and thought Mr. Ferguson was under the impression the funds � are generated by levies. At that time, the HRA based some of their thinking on that. He felt the HI2A should not take any money the school district rightfully has coming. �, �� 80II8INa � REDEVELOPMENT AIITHORITY MEETINa, FEB. 14. 1991 PAGE 4 Mr. Commers stated he thought, too, that the difference was due to the appreciation and not an additional levy. He thought this was clear. Dr. Rens, Superintendent of Schools, stated he was speaking on behalf of the Board of Eduaation, that has indicated two concerns. The first is serious financial difficulty. In 1989-90 and 1990-91, the budget has been reduced each year. Their preliminary budget still has expenses over budget. They see this escalating because they see difficult times for the State. 1.5 teaching positions is a lot for our school district. Secondly, their dollars are from the tax levy passed by the school levy. They understand those have increased because the values in the district have increased. They are not increasing from last year's budget to this year's budget. There has been no change in the dollar amount that they put into their projections when they made decisions. He is concerned about the timing of the decision. The Board made financial decisions in the fall based on a given amount. If the HRA has a concern about the total amount being returned in the future, the School District's preference would be to return the full amount that affects the 1990-91 budget so they can go ahead. The school district would have time to plan if it would impact 1992-93 by July so decisions made have that considered. They were not aware of this until September and December. The Board is asking to reconsider for those reasons. Mr. Prairie stated the HRA originally moved the vote back eight months thinking it would help districts with their budgets. Now what they have to do is go back another six months. Mr. Commers stated the school district is asking for a 12- month lead time for budgets they are adopting for the next fiscal year. Dr. Rens stated, as an example, the Board of Education had to make a decision by August on a referendum issue. When they made that decision, they had $164,000 in projections over a four-year period of time. For that reason, they decided against the referendum. That is just one of many decisions when he put this together. Mr. Prairie asked if there is a way that this could be written up so this would be done early enough. ^ Dr. Rens stated that under normal conditions that would be okay, but these are not normal financial times. �,.,, HOIIBING � RED�VELOPMENT AIIT80RITY MEETING, FBB. 14, 1991 PAGE_5 Mr. Prairie stated the earlier the HI2A has to look ahead the harder it is. If they know about the dates from the school districts, it would help. Have they heard from any other of the school districts? Mr. Burns stated the City has not heard from the other districts, nor have the districts heard from the City. Mr. Pribyl stated the districts are aware of the issue, but they may not be aware of the pending process. The districts are aware the HRA will be returning funds at some point in time. Dr. Rens stated the other districts are probably not aware of the change in amounts or are not affected. Mr. Meyer stated he is sympathetic to the position of the Board. The referendum decision was made late last summer not to go for it. The Board is depending on full amount from the HRA. At this time, he would favor changing our position with better understanding by both parties of what they can expect in the future. �,, Mr. Prairie asked if the City could notify the school districts when this again comes up. Mr. Burns stated the City can do this. It is something that has been overlooked in the past. Other than School District #14, the City has not contacted the districts. Mr. Meyer stated the HRA concentrated on its own financial position and thought that the districts would not mind the decision made because it was not punitive. The HRA did not realize that the district was looking for more but they did discuss it. Dr. Rens stated the Board recognizes there is nothing punitive, and thanks the City for their support. Mr. Commers stated there is a difference in viewpoint as to those funds . He thought that there is a legitimate issue with respect to the planning and decision not to go forward with the school referendum, to that extent that weighs more heavily in favor of paying the school a refund but he thought that the HRA will have to address this so this will not happen again in the future. MOTION by Mr. Prairie, seconded by Mr. Meyer, to recommend to � the City Council approval of a full refund of TIF turnbacks to the school districts for taxes payable in 1991, or approximately $268,000. ,� � 800BIN(3 � REDEVELOPMENT AIITHORITY MBBTINt�. FSB. 14. 1991 PAGTs 6 OPON A VOICE VOTE, ALL VOTINa AYE, CHAIRPER801J COrII+SERB DECLARED THE MOTION CARRIED QNANIMOIIBLY. 2. CONSIDERATION OF SUH REOUE5T TO ACQUIRE PROPERTY: Mr. Commers referred to the memo dated February 7, 1991, from Mr. Burns regarding a meeting the City Manager had with Mr. and Mrs. Suh. Mr. Burns stated Mr. George Borer, attorney for Dr. and Mrs. Suh, would provide infonaation for the HRA. Mr. Borer stated the property consists of a car wash, Burger King and shopping center. The first proposal would be for the HRA to purchase this property, similar to the purchases the HRA has made with similar properties. They felt this was the fair thing to do. Mr. Suh's property has been in this district since 1978. His ability to rent out the center is becoming more and more difficult for various reasons. The real estate market is one reason. Also, long term tenants do not want to rent because they have heard the property is in a redevelopment district. It is also his understanding that once there is acquisition, this property will be the last piece to be acquired. They are asking the HRA to consider purchasing their property as well. The placement in the district is becoming harmful to the Suhs. There is also refinancing coming up. They must decide what to do with the property and the decision must be made in a short time. Mr. Borer stated he and his client are present to ask if the HRA would consider moving forward with this property. The preference is that the i�tA purchase the property; however, through discussions with staff, this is unlikely. With this being the last piece in the quadrant and a key piece, they would like to enter into negotiations with the HRA and consider terms. As an alternative, if this is not the appropriate time to purchase, could the property be released from the district in order to attract long term tenants? It is difficult to lease because prospective tenants fear condemnation. If the area is not going to be redeveloped in the near future, would the HRA provide a letter stating this so tenants can be attracted? He would like to see something happen so his client can move forward. They would like to see the HRA either purchase the property or allow the Suhs to do something to their property to make it attractive to long- term tenants. � Mr. Meyer stated a possible scenario would be that even if the property is released from the district and improvements made, the HRA could later decide to take the property because they �iOIIBING 6 REDEVELOPMENT AIITHORITY MEETINC3, FTB. 14. 1991 PAGiE 7 purchase the entire area. Why, under that scenario, would Mr. Borer's client be any better off? The property would still be in jeopardy. Would his client gain anything? Mr. Borer stated he is not certain if this would be better, but felt it would. The center is not going to attract top notch tenants with the threat of condemnation. It is certainly something that has been mentioned by tenants and leasing agents. He did not think staff is telling anyone this but the fact is that other property around them has been taken. Tenants do not want a five-year lease and then have to move. This hampers the ability to lease space. Burger King is likely to be lost from the site as well, which will be devastating to the site. He is willing to look at any alternative to make the site more marketable. Mr. Meyer stated he is trying to think of a way to take away the stigma, short of abandoning the district for the southwest quadrant. Mr. Borer stated tenants question moving in if the property is going to be condemned by the City in the near future. The agreement would be cleaner from their standpoint if they knew r�, how long it would be there. Mr. Meyer felt Dr. and Mrs. Suh would be better served to sell to the HRA or lease back, but did not consider it a viable option to be released from the district. Mr. Borer stated selling is the preference. Basically, he and his client feel that if they must keep the property for ten years, how can they keep it in a state that is attractive. Their desire is to sell to the HRA. Mr. Commers asked when the owner would be refinancing. Dr. Suh stated at the end of this month, but he has a two to three month grace period to renegotiate. Mr. Borer did not think refinancing would be a problem, but they do need to make a decision about the property. Mr. Commers stated they had talked about agreements not to condemn or take the property for a period of time. Mr. Borer stated such an agreement would be shown to prospective tenants. ,,,� Mr. Commers asked if the Burger King would default now since � � it is in bankruptcy. �,..,� HOIIBING & REDEVELOPMENT AOTHORITY MEETINa. FEB. 14. 1991 PAG�_8 Dr. Suh thought so, but has not received a formal letter. Mr. Commers stated, with the status, he would think it would also impact Mr. Suh�s ability to do many things. Dr. Suh stated a developer may be talking to Burger King directly, but he is not sure. Mr. Commers stated this may even become a different franchise. Dr. Suh agreed that this could happen. Mr. Commers stated part of the issue is that, in terms of priority, this is not a priority for the HRA. The HRA has some difficult financial issues which need funding. There is some issue as to their ability to purchase if the HRA elected to do that. He asked the value of the property and what the HRA may be able to affect. Mr. Meyer suggested that staff sit down with the owner and explore scenarios, and report back to the HRA at the next meeting. � Dr. Suh stated that, since the HRA is talking about financial difficulties, he would propose that if the HRA would decide to purchase the property, it could be done over a period of years. He did not need a lump sum right now. Mr. Borer stated they have talked about a sale lease back so the City would not end up as landlord over a period of years. Terms are open. Mr. Burns recommended that, since the City had just received Mr. Borer's letter that day, staff take an opportunity to review the letter and proposals. At this point, he did not see a need for staff to be directed to have further talks with the 5uhs unless the HRA is contemplating buying the property. He would like to see if there are legal implications. If the Suhs have a proposal to make, there is no problem with accepting their proposal, but staff has not received a proposal. At this time, staff would evaluate any proposal received with an eye to the legal implications. Mr. Commers stated there is a timeframe here. The HRA needs to respond as promptly because of the refinancing questions. Staff was requested to review and check with legal counsel for implications, at least to the issues raised, and meet with the Suhs again to see if they have any suggestions or ideas. � Dr. Suh asked if Mr. Burns needed numbers from him in a proposal. ,� HOIISING & REDEVELOPMENT AQTHORITY MEETING, 8�8. 14. 1991 PAGE 9 Mr. Burns stated that, if they have a buyout plan in mind, the Suhs were welcome to submit it for consideration. Mr. Commers stated it may be a good idea so they can get a feel for what the Suhs are looking at. The HRA has done their budgeting for 1991 so that could be a problem for a short-term decision. In the meantime, the HRA will review the issue. If staff and the Suhs could talk in the next week or two, the HRA could provide an answer in the next month or so. Mr. Borer stated he thought the request to be removed by the district had a 30-day limit to be referred to the Planning Commission. They would waive if that is the case. Mr. Burns stated he is not aware of such a restriction, but this would be referred to legal counsel. 3. CONSIDERATION OF CONTRACT FOR HOUSING REDEVELOPMENT CONSULTANT SERVICES• Ms. Dacy stated the purpose of the contract is to perform a preliminary market research study to determine the feasibility n of a housing and redevelopment project in two areas. The first is the University Avenue Gateway area in the northeast corner of 57th Avenue and University extending up to 60th Avenue, which contains some older commercial properties which are now vacant; and second, the northeast corner of Rice Creek Road and Central Avenue, part of which is in a tax increment district. The City owns property adjacent to that area. The property in that area has been subject to several controversial requests, and both proposals were denied by the City Council. Ms. Dacy stated that in evaluating those two areas during the last year, staff felt that there were eligible sites for a housing project, and staff reviewed with the HRA some of our land use goals for both of those areas. Staff believes it is important to look at the market, determine the type of housing, the type of density, and what type of amenity package would be in the best interest of the City. Mr. Schatzlein would be expected to prepare a written report and present the findings to the HRA. The contract is an hourly contract up to maximum of $3,500 and staff would like the report completed by April 1, 1991. Mr. Schatzlein was present to answer questions. Information regarding Mr. Schatzlein's company and references was included in the agenda. Staff recommends approval of the contract as presented. Mr. Commers asked what happened to the proposal for the Mochinski property. �� '"� 80II8INa & REDEVELOPMENT AIITHORITY MEETINa. FEH. 14. 1991 PAaE 10 Ms. Dacy stated the developer never formally applied for a land use application. Staff was told they were evaluating the site as a potential redevelopment area, but staff has not heard from them. Mr. Burns thought Mr. Brickner was waiting for the City. Ms. Dacy stated the City is trying to determine what would be the most appropriate land use. Property owners strongly object to townhouse development and commercial development. Unfortunately, single family does not work in redevelopment. Mr. Commers asked if detached townhouses were constructed, what does the preliminary economic impact show? Is there enough there to do that kind of project? Ms. Dacy stated that they have to get the density of at least 12-15 units per acre to get to a break even point. That may be unacceptable in a layout context. If the townhomes are rental, the tax increment is larger. However, she thought property owners will want an ownership situation rather than rental units. Another factor is to determine whether they want to acquire the commercial building in the immediate corner of the intersection. That skews the scale toward the negative side. Mr. Commers asked if it would be beneficial to have a study. He thought this is a zoning issue. It looks like density is needed to make it work, and wondered if the Planning Commission or City Council would approve a project that would meet the minimum criteria. Mr. Burns stated he thought it is too early to say. He thought there were some serious challenges here. There are three issues: 1. 2. The market issue - What can be put there that will sell? The cost issue - What can be put there that will produce enough increment to justify itself? 3. The political issue - What can be put there that will satisfy the neighbors? The Mochinski property is zoned C-2, Commercial, and it could be rezoned residential. Soil correction is needed particularly if a road is to be built. Another element is the Gray Star Building which, under ideal circumstances, should be purchased if that corner is to be developed. ��, �"`� HOIIBING & REDEVELOPMENT AIITHORITY MEETINa. FEB. 14, 1991 PAGE 11 4. Mr. Commers asked what is being aonsidered in the area of 57th and University. Mr. Burns stated staff did not know for sure. The City is looking at a mixed use project. There is approximately eight acres from 57th northward almost to 61st Avenue. The depth goes back to 4th Avenue. There are some residential properties that would also be involved, if it is decided that this would be a redevelopment area. Ms. Dacy stated this includes the former Holiday Station, McDonald's, Benjamin's, and Zantigo buildings, plus Frank's Used Cars across the street. Mr. Commers asked if a report done by April 1 would give some sense of what the economy will be. Mr. Burns stated there has been some preliminary analysis. He felt that the economies have already covered as best we can at this time. OM TION by Mr. Meyer, seconded by Mr. Prairie, to approve the contract as specified with Schatzlein Associates. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED IINANIMOIIBLY. Mr. Schatzlein stated he is looking forward to the project and bringing an independent proposal to the HRA. His goal is to provide information to help make decisions in this area. He will be looking at it from the market approach. CONSIDERATION OF ANOKA HRA REOUEST FOR PERMISSION TO OPERATE HOUSING PROGRAM: Mr. Burns stated he had been contacted by Rita Ander, City of Anoka HRA, requesting permission for them to a operate a program for the mentally disabled in the City of Fridley. Anoka's HRA has applied for a grant to subsidize rental payments in apartments for up to 20 individuals. The grant application would be more attractive if it was a multi-city project, and they have talked to Fridley, as well as Columbia Heights. 5taff recommends the HRA let the Anoka HRA operate a program in Fridley, but that the Anoka HRA operate the program through the City's Section 8 Housing Coordinator. Mr. Commers stated it seemed to be a program that deserved a chance but he would be more comfortable if Fridley could �` control the program in the City. HOIIBINa & REDEVELOPMENT AIIT80RITY MEETINa. FBB. 14. 1991 PAGE 12 Mr. Burns stated the role of the Section 8 Housing Coordinator would be to check out the apartment units and administer contracts with the owners. Mr. Commers stated there would not be a large number of persons involved. Mr. Burns stated the City would receive $15.00 per month per person. MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the request by the City of Anoka HIZA to operate a program for the mentally disabled in the City of Fridley, with the amendment that it be administrated by the City's Section 8 Housing Coordinator. IIPON A VOICE VOTE, ALL VOTING AYE, CBAIRPER80N COMMERS DECLARED T8E MOTION CARRIED IINANIMOIIBLY. 5. CONSIDERATION OF 1991 BUDGET: Mr. Burns stated he had adjusted the budget numbers based on the HRA's decision of turning back the full amount to the � school district. He also amended the capital outlay to reflect taking out the grates for the Fridley Plaza area. MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the budget as amended. IIPON A VOICE VOTE� ALL VOTIN(3 AYE, CHAIRPERBON COMMERB DECLARED THE MOTION CARRIED IINANIMOOSLY. 6. ESTIMATESfCLAIMS: Mr. Pribyl presented Check Register #2094 through #2099 for consideration. Mr. Prairie asked if Check #2096 was the fee paid to analyze insurance. Mr. Pribyl stated this is the actual insurance coverage for the Rice Creek Plaza. This is the only one where the City actually goes out and solicits quotes. Mr. Commers asked Mr. Pribyl to provide a memo next month to explain how this works. Mr. Pribyl stated he would let them know the mechanics and ^ process as they get into other insurance. � HOIIBING & REDEVELOPMENT AIITSORITY MEETING, FEB. 14, 1991 PAaE 13 , - Mr. Pribyl asked the HRA to note on a separate listing, Checks #2100 to #2105, in addition to the register they had received. These checks are listed on an additional handout. Mr. Commers stated it is hard to keep track of the agencies and who is doing what. Mr. Pribyl stated that in 1985, Casserly was a financial advisor/underwriter. He was later released and went out on his own, and is now consulting. Then the City was looking more toward Springstead. Now that he is operating independently, he does not have the same level of expertise available to him. There was some transition. In a memo to Mr. Burns, First Trust acts as a paying agent for the City's bond issues, while the consultants are Casserly and Springstead. Mr. Commers requested a description of each and their function. Mr. Prairie requested this memo also include a description of appraisers. ,--� MOTIO by Mr. Meyer, seconded by Mr. Prairie, to accept Check Register #2094 through #2105. IIPON A VOICE VOTE, ALL VOTINa AYE, CBAIRPER80N COMMERB DECLARED THE MOTION CARRIED ONANIMOIIBLY. INFORMATION ITEMB: 7. UPDATE ON FIRST WESTERN DEVELOPMENT'S PROPOSAL: Ms. Dacy stated she had nothing more to report. The City Council will not decide on the variances until February 25. She has not received information on the soil correction. Mr. Meyer asked if the YMCA property is now sold. Ms. Dacy stated they entered into a purchase agreement. 8. UPDATE ON FRIDLEY TOWN SOUARE PROJECT: Ms. Dacy stated the City Council tabled this item, and the City Council will discuss at their February 25th meeting. Mr. Commers asked if there is a final resolution as to whether there needs to be another home taken along Mississippi. Mr. Burns stated this was discussed and rejected by the �� developer. The traffic study showed this is not necessary. ,� �i008ING & REDEVELOPMENT AIITHORITY MEETIN(�. FEB. 14. 1991 PAGE 14 9. RICE PLAZA UPDATE: Mr. Commers asked if they had approved the Cinnamon Tanning not paying rent. Ms. Dacy stated the original action was made in November 1990. Mr. Burns, Mr. Kordiak, and she met and went through a number of issues with a number of tenants. A motion was made to release the balance of lease payments on T's Hair Plus, but they would make lease payments on the tanning salon. Rent payments will be made next month. 10. REPORT ON TIF PROPOSALS FOR 1991 LEGISLATIVE SESSION: Mr. Burns stated that Mr. Casserly is not on the City's payroll as a lobbyist, but is working being done for MCVA. He does, however, have the City's best interests in mind. Mr. Burns referred to his memo of February 4 regarding 1991 TIF Legislation, in which he summarized the amendments. Of these, there are three proposals that the City would stand to benefit from: 1, 2, and 6. Realistically #1 and #6 have the greatest chance of being considered as part of a package of technical amendments that will be carried forward. Number 2 is regarded as a substantive change rather than a technical change and there may be some delay beyond the 1991 legislature. He stated it is important, but thought that the greatest chance of success will be with technical amendments rather than substantive amendments during this legislative session. Mr. Commers asked what the penalty was for hazardous housing conditions. Mr. Burns stated, to his understanding, in creating any new TIF district, the City would begin to lose LGA. The LGA penalties for the district are for beyond the fifth year. What cities are trying to do is eliminate that penalty for housing redevelopment districts. Item 6 refers to penalties and interest on delinquent properties. The City is hoping to have legislation passed so that the HRA would receive delinquent taxes rather the County. Mr. Commers asked if they could check with the surrounding counties to see where they on this issue. Mr. Pribyl stated legislation passed in 1989 made it a gray enough area so interpretation is legal. Whether Hennepin County uses, he did not know. �, � � HOIIBINGi& REDEVELOPMBNT AIITHORITY MEETINa, FLB. 14, 1991 PAGE 15 r"� 11. LETTER REGARDING TAX DELINOUENCY AT LAKE POINTE SITE: Ms. Dacy stated these are information items. Notices have been sent. 12. MEETING WITH LINVILLE PROPERTIES: Ms. Dacy stated that the property has not been established as a tax increment district. The information is offered for informational purposes. She has not heard from Linville Properties and will not pursue it until more information is submitted. Mr. Prairie asked if any other persons are proposing anything for that property. Ms. Dacy indicated they have a purchase agreement so it may be off the market. Over the past 6-12 months, the City has received a number of calls. Mr. Burns stated that, if this issue arises, the HRA will need to decide if they want to spend excess funds to enhance out- of-district projects. 13. OTHER ITEMS: a. Resignation of Walter Rasmussen Mr. Commers stated Mr. Rasmussen has resigned for medical reasons, and he has asked staff to send a letter to acknowledge his resignation. Mr. Rasmussen has served faithfully for a long time. Mr. Burns sated staff will prepare a plaque for future recognition at a City Council meeting. Mr. Meyer requested that all the HRA members sign the letter. Mr. Burns stated he would write a letter and send it out for signatures. b. Rapid Oil Site Mr. Burns stated he has never received anything formally severing Winfield from the project. His understanding is that Mr. Robertson had received informal word that the principal person involved from that organization was no ^ longer pushing the project. There were some financial commitments made. � HOIIBING & REDBVELOPMENT AIITHORITY MEETING, FBB. 14, 1991 PAGE 16 � Mr. Commers stated staff should check back in the minutes to see if it was completed. Mr. Burns stated he was not aware of commitments that were made by the HRA or City. Mr. Commers stated he thought a good faith deposit was made. Mr. Meyer stated the HRA should discuss this. Mr. Commers requested staff to review the minutes during the negotiations. ADJOURNMENT: OM TION by Mr. Meyer, seconded by Mr. Prairie, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTIN(� AYE, CHAIRPER80N CO1rIlKERB DECLARED THE MOTION CARRILD UNANIMOIIBLY AND T8E FEBRIIARY 14, 1991, HOIISING & REDEVELOPMENT AIITHORITY MEETING ADJOIIRNED AT 9:20 P.M. �, Res.�pectfully submitted, < �� � � `�'`G'``Y� rL ; lv�i'`-✓ � ? i'� : Lavonn Cooper / �, Recording Secretary