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HRA 10/19/1982 - 29381CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 19, 1982 ...... .. ....... . CALL TO ORDER: Chairperson Commers called the October 19, 1982, Housing & Redevelopment Authority meeting to order at 8:35 p.m. ROLL CALL: Members Present: Larry Comers, Elmars Prieditis, Carolyn Svendsen, Duane Prairie (arr. 8:58 p.m.) Members Absent: Walter Rasmussen Others Present: Jerrold Boardman, City Planner -Kurt Schrupp, 6716 Jefferson St. N.E.- representing the Fridley . ..... .. Jaycees CONTINUED• APPROVAL OF HOUSING & REDEVELOPMENT AUTHORITY'MINUTES'OF ,'JULY'21,.'1982: The approval of the July 21, 1982, Housing & Redevelopment Authority-minutes were again continued until Mr. Prairie and Mr. Rasmussen are present. APPROVAL OF SEPTEMBER 169 1982;'HOUSING'& REDEVELOPMENT-AUTHORITY MINUTES: MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO APPROVE THE SEPT. 16, 1982, HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED. THE NOTION CARRIED UNANIMOUSLY. I. CENTER CITY PROJECT A. Kurt Schrupp, Fridley Jaycees - Request to use Hardware Building for Halloween (See Executive Director's Memo #82 -74) Mr. Boardman stated Mr. Schrupp was representing the Fridley Jaycees who are requesting the use of the hardware building for Halloween. He stated that at this time, they do not have any tenant or lease for that building, and since the building is sitting empty, it may be in the HRA's best public interest to let the Jaycees utilize the building for a haunted house. The HRA would not be paying for any electricity and the Jaycees have their own insurance coverage. Mr. Schrupp stated they have contacted NSP to hook up electricity, and that will be billed to the Fridley Jaycees. Through the Minnesota Jaycees, they have adequate liability insurance for all members in the HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 19, 1982 PAGE 2 • state as far as any project they are running. The only additional thing they will have to purchase is the dram shop liability, but there will be no liquor; it is strictly a fundraiser. The Fridley Jaycees are going to be donating the funds to cerebral palsy and Aid to Retarded Citizens, so they feel it is a very worthwhile project. Mr. Schrupp stated that since he cannot remember anyone in Fridley having anything like this, he thought it would be a nice thing to have for the families in the Fridley area. The people in charge of this project are basically the Columbia Heights Jaycees. The reason the Columbia Heights Jaycees approached the Fridley Jaycees to cosponsor this project is because they lost the building they were using in Columbia Heights. They came to Fridley to see if anything was available in Fridley and if the Fridley Jaycees would work with them on the project. The Fridley Jaycees accepted the co-sponsorship of the project, and that is why he is approaching the HRA with this request. He stated they think the location of the hardware building is excellent because it is accessible, and there is plenty of parking. Mr. Commers asked if they would be putting up any partitions inside the building. Mr. Schrupp stated they will be putting up temporary partitions; however, they will guarantee that the building will be cleaned up and returned to its original condition. Mr. Commers stated his one concern was to make sure the insurance policy had adequate coverage for any kind of accident. He asked if the Jaycees would provide the HRA with a copy of that policy and make sure the policy is adequate. Mr. Schrupp stated they would be happy to do that. Also, to alleviate any responsibility from the City, they would be willing to have the City draw up an informal lease of some kind where the Jaycees would pay $1 for the rent, basically, and the Jaycees would be totally liable. Mr. Boardman stated he would check with Mr. Herrick, City Attorney, to see what was the best way to handle it. MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO APPROVE THE REQUEST BY THE FRIDLEY JAYCEES FOR THE USE OF THE HARDWARE BUILDING DURING HALLOWEEN WEEK, CONTINGENT UPON PROPER INSURANCE COVERAGE APPROVED BY THE CITY ATTORNEY. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 0 HOUSING & REDEVELOPMENT'AUTHORITY MEETING, OCTOBER 19, 1982 PAGE 3 B. Phase III - Discussion (Executive Director Memo #82 -75) Mr. Boardman stated this memo was to update the HRA members. In the memo he stated that since the HRA formally withdrew the offical right of development from Barthel Construction, Mr. Paul Klaverkamp, attorney representing Fred Levy, has met with Mr. Herrick and hdmself to discuss the affects the redevelopment district is having on his client's ability to lease space and maintain existing leases in the centers he owns. Mr. Boardman stated he was under the impression that Mr. Klaverkamp was going to be at this meeting to discuss what happened on Phase III, but in talking to Mr. Klaverkamp that evening, Mr. Klaverkamp had made the determination it would not be in his client's best interest to be at this meeting. Mr. Boardman stated Mr. Klaverkamp felt his client had a claim against the HRA because of actions the HRA had taken in the establishment of a redevelopment district. It was Mr. Herrick's position at this time that they really have no legal claim against the HRA for the establishment of the redevelopment district, and Mr. Herrick felt very confident that Mr. Klaverkamp would find it very difficult to show that a hardship does exist. In the meeting, he and Mr. Herrick told Mr. Klaverkamp they will do everything in their power to notify the tenants when things are and are not happening, but they didn't feel he had a legal basis by which he wanted the HRA to remove them from the district. Mr. Boardman stated he has met with representatives from Frank's Nursery, and Frank's Nursery is very interested in doing a center and becoming the anchor tenant of the center. At this time, he had no further information. C. Parking Lot Property Lease from City Council - Discussion (Memo on City Council /HRA Meeting of Sept. 27, 1982; Executive Director Memo #82 -76) Mr. Commers stated he had not been able to attend that meeting and asked the other HRA members what they felt came out of that meeting and what the HRA's position should be with regard to the parking lot lease. Mr. Prieditis stated no definite decision was made. The basic question was whether this should be an outright purchase by the HRA. Ms. Svendsen stated she had the impression the City Council felt very strongly that any kind of terms for purchasing the parking lot would have to be the same type of terms they would get anywhere else and that the City Council did not want to subsidize in any way the HRA's purchas- ing of the parking lot. • :SOUSING & REDEVELOPMENT' AUTHORITY -MEETING " OCTOBER 19; 1982 PAGE 4 Mr. Commers stated when the HRA and the City Council talked about the 2% over prime, the HRA was talking about leasing or paying the same interest rate they would be getting from Mr. Haggerty's group. He asked if that had been discussed at this meeting on Sept. 27. Mr. Boardman stated it was discussed with the City Manager, Mr. Qureshi, and Mr. Qureshi did not and would not promote that type of project. The City Manager's position and his position to the City Council is that the HRA had the money, and the HRA should make a direct payment on the property. The only condition the City Manager looked at and thought was feasible was one that would be a normal type of feasibility,and that was what was presented to the City Council. The City Council said they wouldn't mind going on a contract on the land, but they want a contract that isn't.going to put them in any position for criticism for subsi- dizing the Center City project with tax dollars. Mr. Commers stated that in terms of the overall concept, it is probably not that critical whether the HRA has a contract or makes an outright cash purchase. The other side of it is that when you make a cash pur- chase, you usually get a discount. He stated that in order to resolve the problem, maybe they should just purchase the land. Ms. Svendsen stated that this situation does give the HRA an indication of how the City Council feels about these kinds of things. Mr. Commers agreed. He stated that if the City has that feeling a little bit about some of the development projects that are being undertaken and their inability to give the HRA any real meaningful assistance, maybe the HRA is going to have to relook at some of these things. It happened with the plaza, and here is another example where it is happening. (Mr. Prairie arrived at 8:58 p.m.) Mr. Prieditis stated the idea of a discount on the purchase price was intriguing. Mr. Commers stated maybe the City Council should use the money for a contribution to the plaza project. Mr. Boardman stated it was something that could be proposed to the City Council. He stated if the HRA wanted to make a proposal or counter pro - prosal to the City Council, they could do it at the Oct. 25th City Council meeting. Mr. Commers stated it was probably better to make the outright cash purchase, but he thought the City Council should be forewarned that the HRA is not just going to be footing totally themselves a several hundred thousand dollar deal for whatever reasons the City Council feel they HOUSING & REDEVELOPMENT'AUTHORITV 'MEETING, OCTOBER 19, 1982 PAGE 5 cannot contribute. He stated if the City Council wants to make a commitment to the City of Fridley like the HRA has, they are going to have to do so, and if it involves their being afraid of political problems, they are going to have to face that. It comes down to what kind of commitment the City Council wants to make to the City. The HRA recognizes its responsibility and does carry the big share of the burden, but the City Council has to make some contribution of some significance. The HRA has had meeings with the City Council over the plaza, and the City Council has always said "no ". Mr. Prairie stated the HRA is bending to meet the City Council's require- ments this time, but that is not always going to be the case. They have to draw the line somewhere. Mr. Commers stated he would like it recorded in the minutes that the HRA has discussed this and is looking towards some kind of significant contri- bution from the City in the future in the development of the Center City project, and, specifically, the plaza. Mr. Commers stated the HRA unanimous) agreed to acquire the parking lot property rom'the y " ireot y- or-t a ,6 puro ate pr ce. II. NORTH AREA DISTRICT • A. Receive Letter from Jerry Paschke (Executive Director Memo #82 -77) Mr. Boardman stated Mr. Paschke is requesting assistance on soil correction in the development of his property at 79th & Ranchers Road. He stated Mr. Paschke had intended to be at the meeting, but since he was not present, he would recommend this item be continued. MOTION BY MS. SVENDSEN, SECONDED BY MR. PRAIRIE, TO CONTINUE THIS ITEM UNTIL THE NEXT MEETING. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. III. MOORE LAKE PROJECT A. Condominium Project (Executive Director Memo #82 -78) Mr. Commers stated that part of the purpose of the meeting with the City Council on Sept. 27 was_also to discuss the manner in which this project should be undertaken. Mr. Prieditis stated the City Council expressed a concern at that meeting on the reaction of the public, particularly the residents near this property. HOUSING & REDEVELOPMENT AUTHORITY'MEETING, OCTOBER 19, 1982 PAGE 6 i Mr. Prairie stated some of the councilpersons also expressed concern about any condemnation. Ms. Svendsen stated it was her understanding that one of the first steps would be to contact the property owners of the property involved. Mr. Boardman stated they will be contacting the involved property owners and they will be notifying out into the neighborhood. How far has not yet been determined, and the HRA should discuss this at their Nov. 18 meeting. He stated they will be laying out some of the informa- tion to be shown at the public hearing, and they want to get input back from the HRA at their meeting. IV. FINANCIAL A. Check Register MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE CHECK REGISTER DATED OCT. 18, 1982, AS PRESENTED. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. B. HRA Financial Report The HRA members received and reviewed the financial report. They requested a memo from Sid Inman regarding the grants to the City for the North Area and the Moore Lake area. The HRA members also questioned the breakdown of the categories under each of the programs listed -- Personal Services, Supplies, and Land & Capital Improvement. They felt it would be helpful to have some kind of breakdown of categories to describe them more fully. V. OTHER BUSINESS: A. Approval of G. M. Hanson Co. for HRA Auditor Mr. Commers stated the G. M. Hanson Co. has been the HRA's auditor in the past. He stated he felt the fee of $1,100 seemed reasonable. a► MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO APPROVE THE G. M. HANSON CO. AS THE HRA AUDITOR FOR THE COMING YEAR. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT'AUTHORITY MEETING, OCTOBER 19, 1982 PAGE 7 • B. Request for Funds from NAHRO (National Association of HRA Officials) for Legislative Assistance (Executive Director Memo #82 -79) Mr. Commers stated the Minnesota NAHRO is requesting a pledge of $250 from the HRA to carry on their legislative lobbying efforts. He questioned whether the HRA, as a tax exempt body, could contribute to lobbying. Mr. Boardman stated he would check with Mr. Herrick on whether the HRA could contribute to lobbying. Mr. Commers stated this item would be continued, and they could discuss it further when they had received a report from Mr. Boardman. C. Certificate of Completion - HUD - Large Family Project The HRA received the letter addressed the Community Development Block Grant Certificate of Completion showing tha t paid out for the Large Family Project. D. Memo #82 -73 on Mortgage Bond Meeting to Mr. Boardman from HUD regarding and a copy of the fully executed $119,999.59 was received and Mr. Boardman stated he attended a meeting in Coon Rapids on the Housing Mortgage Revenue Bonds. They are looking at the possibility of selling revenue bonds within the County. The City Bank has been an interested party in this and is willing to sell in a minimum of $20 million packages. He stated it is very difficult for one city to put together a package for $20 million worth of housing construction loans at one time; therefore, they are looking at the possibility of doing some kind of combination with other pities of the County of Anoka. He stated there will be another meeting on Fri., Oct. 22, and he would keep the HRA informed. E. Memo from Sid Inman - HRA Financial Reporting Mr. Commers stated Rick Pribyl's memo which was also included in the agenda raised a question regarding the separation of powers between the City and the HRA. The reason the auditor's fee of $1,1000 is'so reasonable is because apparently the City Staff is going to be more involved in the HRA's accounting. He was not sure what that was going to mean in terms of time and dollars. He thought the HRA should find that out and should get an estimate or a purchase order from the City in order for the HRA to determine what it is going to cost them. They may find out it may be more feasible for the HRA to have their own accountant. Mr. Boardman suggested this item be continued until Mr. Inman and Mr. Herrick could be at the meeting to discuss this. He stated he would put it on the next agenda. • • HOUSING & REDEVELOPMENT'AUTHORITY MEETING; OCTOBER 19, 1982 PAGE 8 Mr. Commers stated he would like to have Mr. Inman and Mr. Herrick prepared to give an opinion on the "oversight responsibility" (referred to in Mr. Pribyl's memo), division of responsibility, and the estimates for implementing this in terms of cost. F. City Council Resolution #82 -1982 Mr. Boardman stated this was a resolution approved by the City Council on Sept. 27 "waiving all application fees pertaining to the city approval process directly applied for by the Fridley HRA'. He stated it was for the HRA's information. G. Von Klug & Associates Mr. Comers stated that in a letter from William Von Klug, Relocation Consultant, he is recommending the City hire Patchin Appraisers to make fixture appraisals in the Center City project. It was the concensus of the HRA members that Staff be authorized to moVe'a ea an " retain Patc in ppraisa s;' ne:; or-a'fee o ; 00. H. Letter Sent to Vassar & Barthel for Ron Schoneman At the last HRA meeting, Mr. Boardman was asked to write a letter to Mr. Vassar supporting Mr. Ron Schoneman's position in trying to get his deposit money back. Mr. Boardman stated he had written that letter, but there had been no response. I. Letter to Don Pollard of Cub Foods Mr. Boardman stated this was a letter to Cub Foods from Kent Hill, Economic Development Assistant, regarding the soil conditions of the area at 81st & University. According to the City engineers, the soil is not all that bad and could be corrected with some assistance from the HRA. J. Letter from VFW Mr. Boardman stated they have been working with the VFW regarding the removal and relocation of the monument in Eisenhower Park. The VFW membership voted to move it to Moore Lake Park by the flagpole. He stated he needed the authorization to go ahead and get bids on moving the monument. He stated it will probably need to be done within the next couple of weeks. It was the concensus of the HRA members to authorize the Executive Director to get = - 6idg'on t e rerhoVa- an re ota on o 't'2'monument in and to take HOUSING & REDEVELOPMENT AUTHORITY MEETING;'OCTOBER 19, 1982 PAGE 9 ADJOURNMENT: Chairperson Commers declared the October 19, 1982, Housing & Redevelopment Authority meeting adjourned at 10:36 p.m. Respectfully sub 'tted, LynrA Saba Recording Secretary 0