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Home My WebLink About1978/05/02 - ADMIN - Minutes - City Council - Joint2. JOINT CiTY AUTHORITY Call to Order Roll Call MINUTES COUNCIL-HOUSING AND OF ST. LOUIS PARK, May 2, 1978 REDEVELOPMENT MINNESOTA A joint meeting of the City Council and Housing and Redevelopment Authority was called to order by Mayor Stern at 7:15 p.m. The following Councilmen were present at roll call: Ronald Backes Martha Elstrom Rose-Mary Griak Jerrold Martin Keith Meland Irving Stern The following Housing Authority cor�nissioners were present at roll call: Jane Tsichda Dudley Moylan Thomas Williams Joel Glotter Commissioner Israel arrived at 8:30 p.m.; Councilman Hanks arrived at 9:00 p.m. Also present were the City Manager and the Executive Director. 3. Development Proposals The Executive Director explained that each of the prospective developers had been requested to submit a statement of qualifications and financial responsibility. Five developers submitted this information, and it has been reviewed by himself and the Finance Director. He indicated that most responses did not supply all necessary information, however, in most instances, sufficient information was submitted to make a tentative conclusion. He continued that these five developers, Ryan Canstruction Company, William Fine, Stuart Corporation, Landvesco Corporation and Anderson-Cherney, Inc. are generally financially sound. He stated that a statement was not received f the Roone Company and several other proposals are more tentative in rom y nature. The Ezecutive Director added�that because the information has been recently received, there has not been opportunity to check references and factual data. � The Executive Director indicated that all developers have shown interest in a land leasing situation. He also stated that the Council and Authority might consider alternative acquisition policies for the single-family area on W�ct 38 Street; the developer will need to know this acquisition policy in order to proceed. -177- �o?�Mv� rri . . rr�v-rv.'�1�0�•'�=� �•�:. �r�• t, �� City Council -tesUSMay Authority Minu and Redevelopment 2, 1978 •' s i ngl e--fami ly housing Commissioner Tsichda stated that teferXtheldeveloper integrate this �d r is in good condition, and wou p housin9 into his development plan. review the The Executive Director proceeded todevelopers who�have proposal. He ind�cated that those till interested in pursuing the revised proposals are s proposal submitted. development submitted original Re1 a tive to the supermarket site on the south side of Eioementrwould Boulevard, the Executive Director stated thanterlbydone-third. He reduce the existing Miracle Mile Shoppin9 Ce stated that problems may be involved in exposure of thetheuillustrative residential property to a.parking lot. He �oamenttintthis area should plan provided that the existing reta�l deve p be strengthened and integrated. In addition, he explainCosthof the project was not financially feasible in that the public acquisition, demolition and relocat�on would significantly exceed tax increment revenues. The Executive Director stated that the Ryan the Rooney Company are currently discussing their proposed developments. In response development Council and systematic Construction options for to a question relative to the legality of one supermarket to the area, it was HRA could do so if this conclusion was study and review of land use policies. Company and integrating of limiting explained that the reached through In response to a question from Mayor Stern, the Executive Director stated that the supermarket site in the Park Center area is expected to produce revenues of approximately $100,000 and the public costs are minimal. He added that the developer has aqreed to acquire each parcel as the City acquires it, to minimize the City's holdings. Ne added that at the site on the south side of the Excelsior Boulevard, there is an obligation to relocate tenants, which can be a very expensive operation. John Bradbury, representing B. Dalton Bookseller, stated that although this store was a test market, the store has a ten-year lease on the building, and has intended to stay in its existing location. Chairman Glotter stated that to make accurate comparisons between developments, one must look at the element of time commitment for development completement. He added that the Council and Authority must determine the scope of the redevelopment area, as an office/ commercial complex or a subregional center. Ne stated that the Ryan proposal would most likely eliminate a subregional concept. -178- �- 1 t� , -- --- _____________�_ City Council - Housing a►�d Redevelopment Authori ty Mi nutes , May 2, 1 g7g . ��rd C amper, Stuart Corporation, stated that his company would prefer to depelop both blocks simulianeously, but would be willing to n�gotiate a hased construct�on. He continued that the 100 elderly units would be Section 8, subsidized housing and 117 apartments and �ight townhouse units would be market rate units. He continued that the company would initiate the financing process simultaneously with the City land acquisition proceedings. In response to a question from Commissioner Tsichda, Mr, Champer stated that integrating the townhouses with the existing single-family homes would not be consistent with the dev�lopment proposal. Corr�issioner Moylan stated that the acquisition of the single-family homes is a political decision to be made by the City Council and not by the Nousing Authority. Councilman Elstrom questioned whether a supermarket was compatible with office and hotel development. Richard Graves, representing the League of Cities Technical Advisory Service, stated that in his opinion, the south Excelsior Boulevard site for the supermarket would be financially feasible. He stated that no m�tter where the supermarket is located, the same land/building ratio exists, so it would make more sense to construct a supermarket on the south side of Excelsior Boulevard where residents prefer less dense land use. William Fine stated that his company has determined that the north Excelsior Boulevard site would be self-sustaininq for a supermarket; however, the calculations have not been completed for the south Excelsior Soulevard site. The Executive Director method of analyzing the assuriptions relative to revenaes. stated that Mr. Graves has used a similar financial data, however, has used different acquisition and relocation costs and tax It was moved by Councilman Meland, seconded by Councilman Martin, to authorize staff to proceed with finan�helredevelopmentbdtlstript�ptoation for �11 supermarket proposals within be completed within sixty days. The City Manager explained that sixty to ninety days would be necessary for these studies, in order to determine accurate relocation and other T hnical Advisory Service would costs. He continued that the League ec need sixty days, with staff input, to complete the studies. Chairman Glotter stated that he preferred not study results since the developers are anxious He continued that the Cherney proposal is only the water tower site could be acceptable for a _» to wait sixty days for for commitments from tentative in nature, supermarket proposal. the the City. and � � � �'�+..� - � ��ty Council - Housing Authority Minutes, May The motion failed 1-11 (Councilman and Redevelopment Z, 1978 Meland in favor) . s ex lained the Technical Advisory Service.program to the Mr. Grave P The service would make its expertise Council and the Author��y. • • ilable to St. Louis Park. He added tha� St: Louis Park �s the ava . • • ' nl city with a signi�i�ant tax �ncree�nthat°the�financialsstudihave o y es a full-time managemen� s�aff. He agre would take at least sixty days. He continued that the Technical Advisory Service would cost $25 per hour. The City Planager sta�ed that if the Council and Authority wish to consider the south side of Excelsior Boulevard for supermarket development, additional informationdevelo ment�wouldtnot occursony� The illustrative p1an assumed that p the south side of Excelsior Boulevontinuedtthat1to�determineatheot been obtained at this point. He c relocation costs on the south side site, the City must examine each lease, all inventories, etc., which will take a considerable amount of stud,y. It was moved by Councilman Bac kes, seconded by Councilman Elstrom, to eliminate the proposal for construction of a supermarket on the south side of Excelsior Boulevard. The motion passed 8-4 (Councilmen Hanks and Martin, Commissioner Moylan and Mayor Stern opposed). It was moved by Councilman Hanks, seconded by Councilman Backes, to prepare complete financial information and budgets for all remaining development proposals. Mayor Stern suggested that the remaining supermarket proposals should be referred to staff for financial study and budget determination for report back in 45 days. Chairman Glotter stated that the current prevents short-range development, and the plan has been approved by the Council and the proposal should be reviewed in terms illustrative plan. 1 and use pl an for the area redevel opment i l lustrative Authority. He added that of consistency with the It was moved by Chairman Glotter, seconded by Councilman Meland, to review the supermarket proposals for the water tower area in terms of financial data, budget preparation and planning considerations consistent with the illustrative plan to be presented on June 27, 1978' Chairman Glotter continued that the illustrative plan for the Park Center area designates a cohesive retail unit and a supermarket in this area would be inconsistent with the illustrative plan, therefore, , he would favor examination of the water tower area for a supermarket °��r r City Council - Housing and Redevelopment Authority Minutes, May 2, 1978 The motion failed 2-10 (Comnissioner Williams and Chairman Glotter in favor). It wap moved by Councilman Hanks, seconded by Councilman Meland, to prepare a com lete financial study and budget preparation for all supermarket proposals in the area north of Excelsior 8oulevard to 36 Street and to review the proposal in terms of consistency with the illustrative plan. Councilman Elstrom siated that she felt it was inappropriate to deal only with the supermarket proposals, especially since the proposals for the water tower site are not all for supermarkets. In response to a question from Chairman �lotter, Anthony Cherney stated that he is not committed to the development other than the office/bank facility. The motion passed 11-0-1 (Chairman Glotter abstaining). Mayor Stern proposal. He plan and the proceed with stated that stated tha devel oper definitive he would like t it meets the needs direction cost data. to consider the Stuart Corporation requirements of the illustrative and indication of approval to Chairman Glotter stated that there may be problems with obtaining MHFA financing for the 100 elderly units. Leonard Champer stated that without some indication of approval, he will not be able to proceed with financing. He suggested the City proceed with its studies simultaneously with his seeking adequate financing. Chairman Glotter stated that the proposal is consistent with the guide plans, and if there were objections to the acquisition of sinAle-family homes in this area, those objections should have been raised when the plan was adopted. He continued that there was not a great deal of exposure for the City in a letter of intent; the developer must provide information within sixty days or give up the right to development. It was moved by Chairman Glotter, seconded by Commissioner Moylan, to issue a letter of intent for development approval to the �tuart Corporation to develop the easterly block with 125 units to be leased at the market rate. Mr. Champer indicated that he would prefer approval for both blocks at this time; although the financing must be obtained for the elderly units, the company ultimately wants to develop both blocks. -181- � ; 0 � ��y Gounci� - Housinq uthori�y Minutes, May A Chairman Glotter other developers and Redevelopment 2, 1978 sta�ted that development shoumoreetimel �man to �f �t can be develoned in a Y ner. Mayor Stern stated,tha� sinCe�tbesdonea district, all acquffset�theuacquisition is no project to 0 The motion failed Chairman Glot�er, 3.-g ( Commi ss i oners in favor). i s wi th i n a tax i ncr�nent quickly, .otherwise, there cost. Williams and Israel, and It was moved by Councilman E1strom, seconded by�fCtheCsixteenrhou� to study the acquisition and relocation costs ses in the area proposed to be developed by the Stuart Corporation. The motion was withdrawn. It was moved by Commissioner Moylan, seconded by for staff and the Stuart Corporation to discuss market rate structures to be constructed on both and westerly sites. The motion passed 12-0. Councilman Griak, a proposal for the easterly William Fine stated that although he preferred the north Excelsior Boulevard site for supermarket construction, he would also be willing to make a proposal on the Park Center site if the Council determines that is where the supermarket should be located. Bill Schatslein, Landvesco Corporation, presented a proposal for 150 units of congregate elderly market rate units. It was moved to encourage and work with by Councilman Hanks, seconded by Councilman Elstrom, Landvesco to pursue private acquisition of property staff for further development of its plan. The motion passed 11-1 (Commissioner Tsichda opposed). It was moved by Councilman Martin, seconded by Commissioner Williams, to authorize staff to use the services of the League of Cities Technical Advisory Service for the development of the financial information relative to the district. Councilman that staff to be used, money to be Elstrom stated that she was opposed should be directed to recommend the and the Council should be aware of expended, Councilman Hanks staff determines stated that necessary, to the moti on, and types of service estimated time and this service should be used only �5 The motion passed 8-3 (Councilmen Elstrom, Hanks and Meland oppose�)� -182- ,�, �.,,___ _ _ _ _. City Council - Housinq and Redevelppment Authority Minutes, May 2, 1978 It was determined that the next joint meeting would be held on June 27 , 1978 at 8: 00 p.m. � , Ad i ou rnment Attest: �L� Wendy Born Recording Secretary The meeting was adjourned at 11:15 p.m. -183- ,