Loading...
HRA 09/16/1982 - 29382CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 16, 1982 CALL TO ORDER: Chairperson Commers called the September 16, 1982, Housing & Redevelopment Authority meeting to order at 7 :37 p.m. ROLL CALL: Members Present: Larry Commers,.Elmars Prieditis, Carolyn Svendsen, Duane Prairie Members Absent: Walter Rasmussen Others Present: Jerrold Boardman, City Planner Mark Haggerty, 6441 University Ave. N.E. Erland Ekberg, 2140 Spruce Trail, Golden Valley Ron'Schoneman, 246 Mississippi St. N.E. Len & Judy Schollen, 6381 Mississippi St. N.E. CONTINUED: APPROVAL OF JULY 21, 1982, HOUSING & REDEVELOPMENT AUTHORITY SPECI L'' EETING'MINUTES: Chairperson Comers stated that since neither Mr. Prieditis or Ms. Svendsen were present at the July 21 meeting, the approval of those minutes should again be continued until the next meeting. APPROVAL OF AUGUST 12, 1982, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO APPROVE THE AUGUST 12, 1982, HOUSING & REDEVELOPMENT AUTHORITY MINUTES. Mr. Len Schollen stated he would like to refer to page August 12th minutes where Mr. Boardman stated that "Len has found a building where he would like to relocate." correct. He stated at the time, Mr. Boardman had asked and he had said, yes, they had noticed one building tha ever, later investigation found it was not suitable. 11, paragraph 3, of the Schollen, who owns Lennie's, He stated that was not him if he had been looking t might be suitable. How- Mr. Schollen also referred to the last sentence in that paragraph which stated: "He (Mr. Boardman) stated they may want to start some relocation in lieu of rent, but he will have to look at each situation on an individual basis." Mr. Schollen stated that accepting relocation in lieu of rent has no bearing at all on their laundromat. n • HOUSING & REDEVELOPMENT AUTHORITY MEETING, SEPTEMBER 16, 1982 PAGE 2 Mr. Boardman stated what he was saying was if it is possible, at some point in time, it may be more beneficial for the HRA to relocate in lieu of rent: Mr. Schollen stated the statement sounded like he would accept relocation in lieu of space or rent, and that was not the case. The HRA agreed to clarify the last sentence in paragraph 3 as follows: "He (Mr. Boardman) stated the HRA may want to start some relocation in lieu of receiving rent....." Mr. Schollen stated he has also been very concerned about the parking problems for his customers because of the construction trailers since the rear parking lot has been closed. He stated his business has dropped 75% and Magic Swirl's has dropped 50 %. They are very anxious to either get the parking lot clear or be relocated. With the situation the way it is now, when winter comes, they will not even have that 25% of business. Mr. Boardman stated he has been working with the contractor on the clinic to try to get them to move their vehicles in order to free up some parking straight in along the alley. One problem now is getting the houses off the lots. When that is done, it will free up some more space to park construction vehicles. He stated they are trying to work things out as quickly as possible. Mr. Commers stated the best solution is to work with their consultant and try to get these businesses relocated as soon as possible. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED. APPROVAL OF AUGUST 27, 1982, SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MS. SVENDSEN, SECONDED BY MR. PRIEDITIS, TO APPROVE THE AUGUST 27, 1982, SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MINUTES. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. I. CENTER CITY PROJECT A. Office Building - Mark Haggerty Mr. Boardman stated Mr. Haggerty was bringing before the HRA a plan for preliminary plan approval of the design of the building and the location of that design. Mr. Haggerty stated they have modified the plans based on a lot of input from the InterDesign people who wanted a much larger area to the west for putting in some type of walkway. He stated they have changed the plans to accommodate the architects, and they feel this design would work just fine. 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING; SEPTEMBER 16, 1982 PAGE 3 Mr. Haggerty stated that according to the contract agreement, he has to have HRA approval of these plans. He stated there was a change in the contract documents which was in the HRA's favor. In.reviewing the documents, Mr. Herrick indicated the parking lot lease would be sub- ordinated to the first mortgage. When Mr. Herrick focused in on that, he realized some of the consequences to the City. So, in negotiations, Mr. Haggerty stated they have agreed to come up with another $60,000 to be placed in an escrow account in the event of a default so the City will never have to run the fear of losing the monthly rental payments, plus that fund is guaranteed to have sufficient funds to exercise the full option price. That will be in addition to the other escrow amounts they are putting up for the protection of the City. Mr. Boardman stated the main thing needed from the HRA is concept approval of the design, design location, and building. Mr. Prieditis questioned whether the location of the trash area would have any visual objections from the landscape architects or the City. He felt it might be better to have the trash area located on the east side of the building. However, he stated if the landscape architects . had no problem with the trash area in the present location, he had no objections. . Mr. Haggerty stated the only real viable solution would be to switch the trash area and the electrical and rearrange the entrance, but maintain an entrance from the north. He stated he would be agreeable to that. With that consideration, he would like concept approval. MOTION "BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO GIVE CONCEPT APPROVAL IN TERMS OF THE DESIGN WITH THE REVIEW OF THE MODIFICATION OF THE LOCATION OF THE TRASH AREA: FINAL APPROVAL TO BE CONTINGENT UPON THE PROVIDING OF THE FINAL PLANS AND THE HRA'S REVIEW AT THAT TIME. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Boardman stated that in the contract documents under the restriction on "uses", he and Mr. Herrick and Mr. Haggerty had sat down and looked at those restrictions on use they would want to try to develop for this type of office building. He thought they had come up with something that was satisfactory to Staff as well as Mr. Haggerty, and he wanted the HRA to review it. Mr. Prairie suggested that in Section 10.3, the word "drug" be changed to "pharmacy" and that "small business uses generally related to office building uses" be deleted. Mr. Haggerty stated he would have no problem with those changes. • 10 HOUSING & REDEVELOPMENT AUTHORITY MEETING,-SEPTEMBER 16, 1982 PAGE 4 MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO MAKE THE FOLLOWING CHANGES TO SECTION 10.3 OF THE PROPOSED CONTRACT DOCUMENTS: CHANGE THE WORD "DRUG" TO "PHARMACY" AND DELETE "SMALL BUSINESS USES GENERALLY RELATED TO OFFICE BUILDING USES% UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. Resolution No. HRA -6 -1982 Mr. Boardman stated he was intending to go to City Council on September 27 with Mr. Haggerty's plans. He stated if Mr. Haggerty is looking at starting construction in October, the HRA needs to at least start negotiation with the City Council on the purchase of property. At this time, he would like the HRA to approve Resolution No. .HRA -6 -1982 requesting the sale of city property to the HRA for the development of an office building. , Mr. Boardman stated the details of the purchase have never been discussed with the Council. The property under the building would need to be an outright purchase of the HRA from the City, but there are two possible alternatives on the purchase of the property for the parking lot. That would be that the HRA could purchase that from the City on a contract basis and pay that contract over a period of time. Then, the City could deed that property directly over to the HRA and the HRA would then lease the property to the office; or the HRA could pay directly a $21sq. ft. purchase price for the parking lot property to the City of Fridley and take fee title. Mr. Commers stated he was not sure that they had resolved the question of whether or not the City might be willing to work the lease directly with the developer. Mr. Boardman stated-it was his understanding that the HRA would prefer to go with some kind of contract with the City to carry the purchase over a period of years with interest rather than an out- right payment. Mr. Commers stated that at some point in time, the HRA should try to establish something with the City Council whereby the City Council shows some good faith in these kinds of things, too. The HRA still has to be concerned about their cash flow position for the next year or two. He stated that even though it only involves about $100,000, he thought the City should be able to work something out with the HRA. • Mr. Boardman stated the HRA will have to pay for the property under the building because that is a deed that is turned over to them. On the parking, since they have a lease arrangement, HOUSING & REDEVELOPMENT AUTHORITY MEETING, SEPTEMBER 16, 1982 PAGE 5 and not a direct sale they could go with a contract with the City and make the terms concurrent. If the HRA would like•to, they might want to discuss this with the City Council on Sept. 27. MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE RESOLUTION NO. HRA -6 -1982 WITH THE MODIFICATION THAT THE HRA WILL PURCHASE THE PROPERTY UNDER THE OFFICE BUILDING;AND TO AUTHORIZE THE EXECUTIVE DIRECTOR TO FURTHER NEGOTIATE ON THE PARKING LOT LEASE PROPERTY. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONKERS DECLARED THE MOTION CARRIED UNANIMOUSLY. B. Receive Barthel Realty, Inc., Letter dated Aug. 16, 1982 Mr. Boardman stated this letter was self- evident that Barthel Realty is unable to put the package together. At this time, it is up to the HRA to officially terminate their right of development. MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO TERMINATE THE DEVELOPMENT RIGHTS PREVIOUSLY GRANTED TO BARTHEL REALTY, INC., AND TO AUTHORIZE THE EXECUTIVE DIRECTOR TO SO NOTIFY BARTHEL THAT THOSE RIGHTS HAVE BEEN OFFICIALLY TERMINATED. • UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Commers stated the HRA members had received a copy of a letter dated March 15, 1982, from Jim Vasser to Ron Schoneman regarding a deposit in the amount of $481.25 that Mr. Schoneman had made to the first development on the east side of University. Mr. Schoneman stated he would like the advice of the HRA as to how to go about getting his deposit money back. Mr. Boardman stated he could contact Mr. Vasser by telephone or letter and talk to him about this. He would recommend Mr. Schoneman go to small claims court taking an action against each one of the parties involved. Mr. Commers asked Mr. Boardman to follow up on this and at least write a letter to Mr. Vasser supporting Mr. Schoneman's position. C. Receive Northern States Power Letter dated Aug. 20, 1982 (Memo #82 -64 from Executive Director on Temporary Relocation of 64th Ave. Power Lines) Mr. Boardman stated NSP has a policy that in urban renewal areas, NSP • will put in underground electrical lines up to the property at no cost, if it involves 75 %. Right now the City is working on a plan with NSP where they can divide Center City and develop it in such a way that each HOUSING & REDEVELOPMENT AUTHORITY MEETING, SEPTEMBER 16, 1982 PAGE 6 of the areas is actually 75 %. However, the thing the City does have to have and the HRA will have to pay for is temporary lines and those kinds of things. The HRA has a $15,000 credit with NSP, and those costs will go against the $15,000 credit from NSP as long as possible. Mr. Boardman stated the cost of the temporary service to date is $4,810, and he would like approval of that amount. Mr. Commers stated it must be clear that this amount will just be offset against their $15,000 credit. MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO APPROVE THE NSP TEMPORARY SERVICE. TO BE PROVIDED DURING THE POWER INTERRUPTION AS PROPOSED IN THE APRIL 19, 1982, STATEMENT OF WORK REQUESTED OF $4,810. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. II. MOORE LAKE PROJECT A. Memo #82 -65 from Executive Director regarding a Proposal for Development of a 96 -Unit Luxury Condominium Project in the Moore Lake Redevelopment MDistrict and a Letter dated Sept. 1, 1982, from Erland Ekberg requesting right of development: Mr. Boardman stated Mr. Ekberg is proposing a condominium development in the Moore Lake area on the north side of Moore Lake. Mr. Ekberg has looked at several different location possibilities. Mr. Boardman intro- duced Mr. Ekberg and asked him to give his presentation. Mr. Ekberg described his proposal and showed the HRA the design for the luxury condominiums. He stated there would be two, 13 -story towers, and each unit would cost approx. $160- 175,000. He stated this is a project he has been designing -and planning for 1 -12 years. He has been looking for the ideal site,and he felt the Moore Lake site has a lot of merit. He thought it was a very feasible project, and would like the HRA to consider it. Mr. Boardman stated Mr. Ekberg is asking the HRA to provide him with a space on which to put a model condo unit. Mr. Boardman stated the HRA does`not own any property; therefore, they do not have any control over having a display unit built. He stated he had suggested that Mr. Ekberg contact Max Saliterman or one of the other property owners to possibly lease a portion of land along Old Central on which to put a display model. Mr. Boardman stated Mr. Ekberg is also looking for some kind of commitment in the form of a right of development. The HRA has the authority to • grant a right of development and give a time period by which Mr. Ekberg has to perform. But, again, they run into problems if the HRA takes an action without giving the residents a chance to respond. 0 HOUSING & REDEVELOPMENT AUTHORITY -MEETING;;SEPTEMBER:16,'1982 PAGE 7 Mr. Comers stated the HRA is concerned about allowing the people who live in that area to have a say and to have some input into the-project. He did not know how they could do much without a public hearing. Mr. Boardman stated a public hearing was not needed unless the HRA chose to have one. Mr. Commers suggested the HRA first meet with the City Council on September 27th and see how the City Council would like to see the HRA handle this. He stated Mr. Boardman should check into getting them on the City Council agenda for that meeting. Mr. Commers stated it was the concensus of the HRA that they were very interested in Mr. Ekberg's project, they felt the project could be very beneficial, and were interested in pursuing it. Mr. Ekberg thanked them for their time and support of his project. III. FINANCE A. Check Register MOTION BY MR. PRAIRIE, SECONDED BY MS. SVENDSEN, TO APPROVE THE CHECK REGISTER DATED SEPT. 14, 1982, IN THE AMOUNT OF $40,576.93. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. IV. OTHER BUSINESS: A. Conference Mr. Boardman stated there is a training conference in Washington D.C. about development, development techniques, how to work with developers, etc. The conference is put on by BNR. He stated the conference is Oct. 14 -15. The conference cost is $355, in addition to air fare and room rates. He stated he felt it was going to be an excellent conference and he would like authorization from the HRA to attend this conference. MOTION BY MS. SVENDSEN, SECONDED BY MR. PRAIRIE, TO GIVE MR. BOARDMAN THE AUTHORIZATION TO ATTEND THE TRAINING CONFERENCE IN WASHINGTON D.C. ON OCT. 14 -15, 1982. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT AUTHORITY MEETING, SEPTEMBER'16, 1982 PAGE 8 B. Meeting Date Change The HRA changed the next meeting date from Thurs., Oct. 14 to Tues., Oct. 19 at 7:30-p.m. ADJOURNMENT: MOTION BY MS. SVENDSEN, SECONDED BY MR. PRAIRIE, TO ADJOURN THE MEETING. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE SEPTEMBER 16, 1982, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 10 :10 P.M. Res ectfully submitted, y rp Sara Recording Secretary 0 0