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HRA 04/14/1983 - 6740HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, APRIL 141 1933 7: 30 P. M. City of Fridley A r c u n e HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, APRIL 14, X983 7:30 P.M. Location: Council Chamber (upper level) CALL TO ORDER: ROLL CALL: APPROVE HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MARCH 10, 1983 I. CENTER CITY DISTRICT A. Hardware Building Update 1.. Memo (Executive Director) 2. Lease Process 3. Status on existing lease property B. Property Acquisition Update 1. Dr. Ryan Automotive 2. Community Credit 3. Awarding Bids on sale and removal of 332 64th Avenue N.E. II. MOORE LAKE DISTRICT A. Request for Assistance by Tom Brickner for Property Development at 6211 Central Avenue N.E. B. Request for "Right of Development" for "202" application by St. Phillip's Human Services Inc. III. NORTH AREA DISTRICT A. Request by G. W. Paschke for Lots 5 and 6, Block 4, University Industrial Park IV. FINANCIAL A. Financial Report B. Check Register V. OTHER ITEMS: A. Information on ELO Engineering /General Reserve System B. Potential for stock piling fill for North Area C. ADJOURNMENT: 4 ka�r. .i CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING MARCH 10, 1983 CALL TO ORDER: Vice - Chairperson Prieditis called the March 10, 1983, Housing & Redevelopment Authority meeting to order at 7 :30 p.m. ROLL CALL: Members Present: Elmars Prieditis, Carolyn Svendsen, Duane Prairie, Walter Rasmussen Members Absent: Larry Coroners Others Present: Jerrold Boardman, City Planner Nasim Qureshi, City Manager Sid Inman, City Finance Director Dennis Schneider, City Council Ed Hamernik, City Council Mark Haggerty, 6441 University Ave. N.E. Terry McNellis, Piper, Jaffray & Hopwood Jim Casserly, O'Connor & Hannan Warren Johnson, NSP Larry Benson, NSP Lorraine Nelson, 6080 Central Ave. N.E. APPROVAL OF FEBRUARY 17, 1983, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MS. SVENDSEN, SECONDED BY MR. PRIEDITIS, TO APPROVE THE FEB. 17, 1983, HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. I. CENTER CITY DISTRICT A. Copy of Landscape Architect Contract as requested by HRA on Feb. 17, 1983 Mr. Boardman stated the HRA requested this at the last meeting. It was for the HRA's information and no action was needed. B. Information on Problem developing with Hardware Lease Mr. Boardman stated the HRA had received copies of the correspondence between himself and Dick Carson, President of Clothing Liquidators, regarding the past -due rent payments for the hardware building. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 10, 1983 PAGE 2 Mr. Rasmussen stated that in the future, he felt the City should develop some type of formal guidelines with regard to certain fundamental things that have to be looked at before they would enter into any type of lease arrangement. Mr. Rasmussen stated he had objected to this when Mr. Carson came.before the HRA asking to lease the hardware building, and he was the only one who voted against it. Mr. Prieditis asked Mr. Boardman to give an update on this situation. Mr. Boardman stated the first rent payment was due Jan. 10. When that payment was not received, he had contacted Mr. Carson toward the end of January. Mr. Carson had indicated the payment was on its way. When the February payment was missed along with the January payment, several letters were sent out. In Mr. Boardman's discussion with Mr. Herrick, Mr. Herrick had indicated that Mr. Boardman should write a letter to Mr. Carson giving a final date of March 11. If no payment is received by that date, legal action will be taken to have the operation removed from the building. Mr. Rasmussen stated they have already wasted taxpayers' money. By the time they get this operation out of the hardware building, they will probably be out $12,000 plus attorney's fees. Also, there was no provi- sion in the lease to protect the HRA against any liens for unpaid work done in the building. There could easily be some bills for remodeling that was done and not paid for. Mr. Rasmussen stated the HRA should know how many bills are not paid, how much the HRA's obligation is, and to see if this money can be collected in any way. He could not believe the City had waited 90 days for any payment; but since they have, they should aggressively protect their interest. Mr. Rasmussen stated he would also like to have information on how much the City has lost, if any, in other unpaid rents in 1982 and the current status of those rents. He would like to have this information for the next meeting. Mr. Prieditis agreed he would like to see those figures. Mr. Prairie stated the HRA definitely should have some type of procedure to follow before entering into leases. He had assumed the City had some type of procedure. Even though the HRA, except for Mr. Rasmussen, had voted in favor of the leasing of the hardware building, they did so reluctantly. They had asked Staff to check into the financial statements and how Mr. Carson's other operation was run. Staff had reported back that it was a good operation and the financial looked good. :MOTION BY AR. RASMUSSENf SECONDED BY MS. SVENDSENr TO REQUEST STAFF TO DEVELOP SOME GUIDELINES FOR FUTURE RENTING OR LEASING OF CITY PROPERTIES TO BE DISCUSSED AT THE NEXT MEETING. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CRAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. i I .4 HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 10, 1983 PAGE 3 C. Letter from NSP concerning underground distribution line (Letter from Warren Johnson, NSP, to Mr. Boardman dated Aug. 20, 1982, and Letter from W. W. Eldridge, NSP, to Mr. Boardman dated March 2, 1983) Mr. Boardman stated the reading of the 1982 NSP policy was they would put the underground electrical line in 5th St. free of charge to the HRA because it was in a redevelopment area and was being developed on a section -by- section basis. NSP has now clarified that policy and say they will no longer do the underground electrical free of charge and that the underground work on 5th St. is going to cost $48,630. Mr. Rasmussen stated this seemed like rather a late hour for NSP to be reclarifying their policy. The City wants to go underground with the electrical and the City has been going under the assumption that NSP was going to do this free of charge; now right at the moment when it will delay the whole effort, NSP has come in with a proposal for a $48,000 bill to the City. Was there some kind of compromise that could be made between the City and NSP? Mr. Johnson, Staff Assistant, North Division of NSP, stated NSP has done everything possible in regard to keeping the cost down. Back in August 1982, they indicated that if 75% of the area was renewed, NSP would put in the underground system within the area itself. However, there happens to be a feeder line passing through on 5th St. that passes through the renewal area to service other areas. In NSP's policy of doing underground work within an urban area, when there is a feeder line of such a capacity that it carries through to service other people, it has never been the intent of NSP to bury this at NSP's expense. They do it at their expense only in the area where the renewal is. That is what NSP's policy has always been. He was sorry if NSP led the City astray in that regard, but they felt that both sides understood this when dis- cussions were started last year. Mr. Boardman stated the City met several times with NSP to discuss the possibility of getting the underground work done free of charge. It was his understanding that the underground work would be done free of charge, and he thought they had looked at all of the lines including 5th St. The indication he had gotten from NSP at their last meeting was that it wasn't a policy change but a reclarification of that policy. Mr. Johnson stated it was his understanding that the City was going to widen 5th St. NSP already has existing overhead lines along 5th St., and they will move the overhead lines at NSP's expense. He stated they arrived at the $48,000 figure by subtracting the cost of going under- ground from the cost of moving the overhead lines. Mr. Rasmussen stated that regardless how NSP approaches this, he still felt NSP has led the City to believe that there was no cost. The City is trying to do some redevelopment which will create more electricity for NSP. He felt Mr. Johnson should go back to NSP and discuss this again to see if some adjustment can be made in the cost. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 10, 1983 PAGE 4 J Mr. Johnson stated they are under the jurisdiction of the Public Services Commission, and each type of service has to pay its own way. One community cannot subsidize another. He could not make this kind of decision, but would have to discuss it with their management people. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO REQUEST MR. JOHNSON TO DISCUSS WITH NSP MANAGEMENT THE COST OF UNDERGROUND FACILITIES AND TO COME UP WITH AT LEAST A 50% REDUCTION IN THE $48,630 COST. UPON RECEIPT OF THIS INFORMATION AND BECAUSE OF THE URGENCY, A DECISION ON HOW TO PROCEED WILL BE MADE BY THE BRA PRIOR TO THE NEXT MEETING. Mr. Boardman stated the City is in a real time bind on this. The engineers are looking for a decision at this meeting. At this time, the options are either to go underground at whatever cost or move the overhead poles to the east side of 5th St. which NSP has said will be at their .expense. Of course, then the power would not be below ground. Mr. Haggerty stated he would prefer to have the electricity underground. He referred to the letter dated Aug. 20, 1982, from Mr. Johnson which stated: "In an urban renewal area wherein 75% of the buildings are being demolished and undergrounding of electrical lines are required by the urban renewal plan, NSP will at its own expense replace its overhead system with a standard underground system . Then, in the letter dated March 2, 1983, Mr. Eldridge, General Manager of the North Division, stated: "We have made a cost comparison and have determined the additional cost of installing underground versus relocation of overhead for the portion of the existing main feeder line on 5th St. N.E. from Mississippi St. to 63rd Ave. N.E. to be $48,630." Mr. Haggerty stated this was in direct contradiction to what was stated in Mr. Johnson's letter dated Aug. 20. Mr. Haggerty stated he signed the contract on the office building back in December 1982 so obviously NSP knew about the project. He felt if for no other reason than for public relation purposes in an urban development area, there should be some serious consideration by NSP. From a legal standpoint, because of the circumstances, the City would go ahead and have the service put underground but would do it under protest, reserving the right to go to the Public Services Commission and from there to the courts. He thought there should be some serious consideration on the part of NSP for a reduction in this cost because there has been an absolute misrepresentation in writing from a municipal entity. Mr. Johnson stated he would go back to the management people and explain this situation to them. He stated they should have an answer for the City by the end of the next week. UPON A VOICE VOTE-, ALL VOTING AYE, VXCE- CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 10, 1983 PAGE 5 II. MOORE LAKE DISTRICT A. Letter from Menton C. "Duke" Addicks, Jr., dated March 1, 1983, concerning removal of residential west of Old Central from Moore Lake Redevelopment Area Mr. Boardman stated Mr. Addicks is the attorney representing Mr. & Mrs. Dan Nelson. They are requesting the HRA and City Council remove these residences from the redevelopment district. The HRA had a copy of Petition No. 2 -83 dated March 8, 1983, with the signatures ` of those property owners. Those signing the petition are Elaine and Thomas Gray, Daniel and Lorraine Nelson, Gloria Wiemann, and Frances and Edward Rush. It was his understanding that Scott Kohanek had refused to sign the petition. Mr. Boardman stated he would like the HRA to receive this petition and continue discussion and decisions because some additional work has to be done on legalities and the process for removing property from a redevelopment district. He stated he would prepare a report for the HRA. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO RECEIVE PETITION NO. 2 -83 REQUESTING THE HRA AND CITY COUNCIL TO EXCLUDE THE RESIDENTIAL PROPERTY LOCATED BETWEEN CENTRAL AVENUE AND MOORE LAKE FROM THE EXISTING MOORE LAKE REDEVELOPMENT DISTRICT AND MOORE LAKE TAX INCREMENT DISTRICT. FURTHER DISCUSSION TO BE CONTINUED AT THE NEXT MEETING. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. B. St. Phillips Request (Memo #83 -17 from Executive Director) Mr. Boardman stated that at the last meeting, the HRA had requested Staff to get some estimates on soil compaction tests for the property at Old Central and Rice Creek Road. That cost would be between $1,500 and $2,000. Mr. Boardman stated he attended a meeting with St. Phillips Human Services, Inc., on March 3. At that meeting there was some discussion on two other possible sites that might be better sites. Unless they get some further direction from St. Phillips, he did not think the HRA was in a position to spend any money on soil compaction tests. Ms. Svendsen stated the St. Phillips Human Services, Inc., will be meeting next week and will be interested to know what action, if any, the HRA took at this meeting. Mr. Prieditis stated he would think the site selection would depend on the soil conditions. How can St. Phillips select a site until they know what the soil is like? The HRA could commit to the soil tests regardless of whether St. Phillips picked the Moore Lake site, and they could conceivably decide not to select it based on the soil conditions. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 10, 1983 PAGE 6 Mr. Boardman stated that since the property is in a redevelopment district and will eventually be developed, soil tests will have to be made at some time anyway. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO AUTHORIZE STAFF TO GO AHEAD WITH SOIL COMPACTION TESTS FOR THE PROPERTY AT OLD CENTRAL AND RICE CREEK ROAD. UPON A VOICE VOTE, PRIEDITIS, PRAIRIE, AND RASMUSSEN VOTING AYE, SVENDSEN ABSTAINING, VICE -- CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. III. DISCUSSION ON FISLIC PROGRAM AND BOND RESERVE FUND Mr. Boardman stated this was brought up at the last meeting and the HRA members were asked to review these programs for discussion at this meeting. He stated Mr. Haggerty, Mr. McNellis from Piper, Jaffray & Hopwood, and Mr. Casserly from O'Connor & Hannan were here to give a brief explanation of the programs. Members of the City Council had also been invited to attend as this directly affects City Council action in the passing of a resolution. Mr. Haggerty stated that, as Mr. Boardman had mentioned, he had given the HRA some materials on some programs that were available that, after dis- cussing them with City Staff, Mr. Haggerty thought might be helpful for adding new tools to the HRA redevelopment districts, keep businesses and firms in Fridley, and also to attract new business. He stated he has done a lot of work in tax increment financing, reserve systems, industrial revenue bonds, and securities. In his work, he has been very impressed with two firms, who are represented at this meeting. Mr. Haggerty stated that Jim Casserly, a former partner of his, was in the Legislature for eight years and authored most of the tax increment financing statutes the State now has. Mr. Casserly's firm, O'Connor & Hannan, other than Briggs & Morgan of the St. Paul Port Authority, is the only law firm that is a national firm that has a bond counsel and has set up a reserve system through the City of Minneapolis, City of Blaine, and is in the process of setting one up for the City of Marshall. However, there are a number of other nationally recognized law firms locally that have consented to the concept under Minnesota Statutes and federal law. In his opinion, there was no other firm with more experience in setting up this type of system than O'Connor & Hannan. Mr. Haggerty stated Piper, Jaffray & Hopwood is the only underwriting firm he knew that has actually underwritten a program under the reserve system. This was done in Blaine. Other programs are going on in Minneapolis. Piper, Jaffray & Hopwood seem to have the tools and the knowledge for a very innovative program to be used for both tax exempt financing as well as conventional financing. He stated Terry McNellis, who worked for the City of St. Paul for ten years, recently came to Piper, Jaffray & Hopwood. His specialty is commercial, but primarily in housing. 0 HOUSING & REDEVELOPMENT AUTHRORITY MEETING, MARCH 10, 1983 PAGE 7 Mr. Haggerty stated the reason why he brought these people together was because he was trying to find a mechanism that would not cost the City or the HRA any money up front and yet would be a resource that would review what the City and the HRA has and would come back with some ideas and tools on how to work a program. Mr. Haggerty stated Congress outlawed the FISLIC program so that program will be dead as of April 14. However, the FISLIC concept can still be used for conventional financing. There are two other types of programs similar to FISLIC. One is called a collaterilized program which deals with mortgages and would be the most likely one to be used in the City of Fridley. The reserve system was another one they were looking at. Another program he thought would be good for Fridley in helping retain companies was a commercial rehab program. Mr. Haggerty handed out copies of a resolution he hoped to bring before the City Council on Monday, March 14. Mr. Haggerty stated O'Connor & Hannan have been charging $10,000 to set up a reserve system in other cities plus other fees. Piper, Jaffray & Hopwood historically has been charging a number of fees. Through a number of negotiations, both firms have consented to this particular resolution which has been discussed with a number of City Staff members as well as Larry Coroners, Chairperson of the HRA. This resolution gives O'Connor & Hannan and Piper, Jaffray & Hopwood a one year exclusive right for industrial revenue bonds and general obligation bonds in the tax increment district. They would be bond counsel and underwriters, but if nothing is sold, they receive no payment. Mr. Haggerty stated he would like the HRA to look over the resolution and make a motion supporting the resolution. Mr. Boardman stated he: and Mr. Haggerty had met with Mr. Commers. Mr. Coroners' overall response was favorable. He did not have any problem with setting the wheels in motion as long as the HRA had review power when any program was brought back so decisions could be made. Mr. Commers had no problem with this resolution. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO APPROVE RESOLUTION NO.jq A "RESOLUTION RELATING TO THE DEVELOPMENT OF A GENERAL RESERVE BOND FUND SYSTEM, A HOUSING PROGRAM, AND A COMMERCIAL BUILDING REHABILITA- TION LOAN PROGRAM; RETAINING A SPECIAL COUNSEL FOR SUCH PURPOSES: AND DESIG- NATING GENERAL BOND COUNSEL FOR THE CITY ". UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON PRIEDITIS DECLARED THE NOTION CARRIED UNANIMOUSLY. Mr. Prieditis stated he would like to thank Mr. Haggerty for his interest in Fridley and for promoting this for the good of Fridley. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 10, 1983 PAGE 8 IV. FINANCIAL A. Check Register MOTION BY MR. PRAIRIE, SECONDED BY MS. SVENDSEN, TO APPROVE THE CHECK REGISTER DATED MARCH 9, 1983, IN THE AMOUNT OF $13,206. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. B. Financial Report Mr. Boardman stated there was no financial report. There would be a financial report at the next meeting. V. OTHER BUSINESS: Mr. Boardman stated that in the agenda, he had included letters and information dealing with the acquisition of the Tom Ryan building, 6385 -6389 University Ave. N.E. He stated there was a breakdown on relocation costs and a fixture appraisal that was submitted for Tom Wing, Discount Batteries, tenant at 6385 University Ave. N.E. Mr. Boardman stated an agreement has been reached on the fixtures in the amount of $2,695 and on the relocation cost in the amount of $3,616. Included was a report from the relocation consultant. He stated he would like the HRA to approve these payments. MOTION BY lit. RASMUSSEN, SECONDED BY MS. SVENDSEN, TO APPROVE A PAYMENT OF $2,695 FOR FIXTURE ACQUISITION AND $3,616 FOR RELOCATION COSTS TO TOM WING, DISCOUNT BATTERIES. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO ADJOURN THE MEETING. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON PRIEDITIS DECLARED THE MAR. 10, 1983, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:30 P.M. Respectfully su fitted, C'1_4u_x� LY60 Saba Recording Secretary I IAA .r MARCH 31, 1983 CALL ' D GEM: Chairperson Commers called the March 31, 1983s, Special Housing & Redevelopment Authority meeting to order at 5:00 p.m. MA (`AT : Members Present: Larry Commers, Carolyn Svendsen, Elmars Prieditis Members Absent: Russel Houck, Duane Prairie Others Present: Jerrold Boardman, Executive Director HRA Nasim M. Qureshi, City Manager William J. Nee, Mayor Edward Fitzpatrick, Councilman Edward Hamernik, Councilman Mark Burch, Assistant Public Works Director John Flora, Public Works Director Sid Inman, Director of Central Services Harold Skjelvostad - InterDesign, Site Planner /Landscape Architect. Jerrold Boardman - Executive Director HRA submitted the bid tabulation sheet for the Center City Plaza and Phase II Project. Mr. Qureshi, City Manager, asked for same indication from the HRA on which bid along with modification is acceptable to BRA and he would like to present them to the City Council at the April 4, 1983 Council meeting. Mr. Commers questioned this procedure and asked why it must be sent to the Council. Mr. Qureshi explained that this is required of the City Council because the HRA requested the City to assess the project. The City Council is the one who calls for bids and will be awarding then. He explained that it is the purpose of the staff to take the information and choices made by HRA to the City Council directly before awarding the bids. The HRA cannot call for and award bids unless they want to pay for a project directly and not use the special assessment procedure. Mr. Qureshi explained there are four elements involved in the development. They are: the parking lots (Civic Center and Office Building) 64th street realignments, water and sewer for the Office Building and the Plaza Development. Mr. Qureshi stated that in January of 1983, it was requested the City Council go ahead with the Parking Lot, 64th Street realignments and the Water and Sewer Bids. The numbers were sent to the HRA and they were comfortable with the numbers. ft•! H(1<TSING TfPF ORTTTV tM EMCa t MARCH Ill 1983 PAGE 2 Mr. Qureshi stated the Architect initially estimated the project costs in , January 1983. The costs were then given to the HRA for their confirmation and got go ahead for the project bidding. The bid proposal request was layed out with base bid along with number of different alternates so that the HRA can pick and choose depending upon the bid cost and the amount of money budgeted so the HRA can get the best type of facility for the money. Mr. Mark Burch, Assistant Public Works Director, explained the different parts of the bid. Base bid included: Mark explained the base bids and the alternates for the Plaza: Alternative A -1 is for the fountains; A -2 is for the irrigation with plastic heads; A -3 is for irrigation with brass head; A -4 is to provide sleeving for irrigation; B-1 is to install wall lights; B-2 is for the Plaza lights with trash receptacles; &-3 alternate Plaza lights and B-6 is the electrical service connections. It was recammended that they award the base bid with the following alternates: A -1, A -3, Brl, B-4, Br5 and B-6. The base bid included the landscaping for the Plaza area. They are, Alternative 1 for the Landscaping for the office building, Alternate 2 is the landscaping for the 5th Street island, Alternate 3 is the landscaping for the Clinic and Alternate 4 is for the 5th Street boulevard. Mr. Qureshi stated the costs came in much too high when the bids were received. The fountains were estimated at $20,000 by the Architect but came in at $87,000. The electrical was estimated at $20,000 and came in at $40,000. Mr. Qureshi explained how alternative material could be used in the construction of the fountains, such as changing the type of aluminum in order to bring the cost down. Mr. Qureshi stated there are alternatives and certain choices available to you for you to make determinations. Mr. Qureshi went over the project costs and bids for the HRA. Plans were submitted for their review during the discussion. The items that were discussed were the fountains, irrigation, wall lights, pylon lights, overhead lights and.electrical service. The following alternates were recommended, bringing the alternates cost to a total of $163,960. $163,_ 960.00 ALTERNRTE BIDS FCR PLAZA Alternate A -1 Fountains $87,000.00 Alternate A -3 Irrigation 18,600.00 Alternate Brl Wall Lights 16,740.00 Alternate B-4 Pylon Lights 3,000.00 Alternate B-5 Overhead Lights 35,595.00 Alternate B-6 Electric Service 3,025-00 $163,_ 960.00 -J wire_nUn QEnEVErnvMFnm AtTIS 12TTY MFFTTtr MARCH 310 1983 PAGE 3 Mr. Caamiers stated that this is a substantial increase. Mr. Qureshi then explained the landscaping bids. He felt that cuts should be made, however, those cuts should not destroy the integrity of the Plaza. He explained same of the possible reductions: 1) 1 flag instead of 2, 2) delete some unnecessary walls, 3) eliminate recessed lights and provide satisfactory replacement lights and 4) eliminate 1 planter but leave shrubs. These reductions cane to a total of $61,551. Mr. Campers asked what is the "cost to the others"? Mr. Qureshi stated that those costs relate to the work around the office building, the clinic and the work on 5th Street. Mr. Qureshi stated that the alternatives with the base bid is the total cost for the whole project. These costs are then broken down and allocated to the specific items (like the office building, the parking lots, 5th Street and the Plaza). Mr. Qureshi stated that the office building and Civic Center parking lot was $140,000 and would be assessed to the HRA. This would include the paving, lights and irrigation related to that property. Mr. Comners stated that the initial cost of the parking lot was for $1401000 but he was not aware that this included anything more than the paving. Mr. Qureshi stated the bids for the paving were let separately because all similar project items should be handled by the contractor best able to give a good product. Mr. Boardman stated the plaza and the parking lot and street bids were let separately as was the landscaping. This saves the HRA a lot by combining similar items in one bid. Mr. Prieditis questioned the Alternative B -1 bid for the wall lights. He asked if the ,recessed lights would be deleted and if they are recessed in the concrete and if there would be a credit. Mr. Burch stated that the concrete is fix and form and that the additional concrete work is included in the light bid. Mr. Qureshi suggested that the HRA members see the sheet regarding the possible deletions on the Plaza. He stated that a change order in the contract for $61,000 would be necessary if you want to award the base bid to come within the guidelines. Mr. Cammers asked about the difference in fountains. Mr. Qureshi stated that the fountain is the highest area of cost discrepancy. The problem is the increase from the Architect's estimate of $20,000 to the actual bid cost of $87,000. r. HODS AND' Dt}ITaTw MF�U. MARCH 31s 1983 PACE 4 Mr. Qureshi said that they were given a price from the Architect's estimate of the Plaza. This information was given to you in January. Mr. Comners stated his principal concern is about meeting the numbers and making sure that the HRA cash flow is adequate for the development in the area. Mr. Qureshi stated the costs of the Plaza with the suggested cuts and other contributions is $248,000. If you add in the contingency and finance costs, the project will be below $300,000 and would fall within the HRA budget. Mr. Qureshi stated there are two ways of doing it; 1) the HRA can choose to pay up front for the project or 2) the City can loan the money and have it then assessed to the HRA. Mr. Cambers asked Sid what does that do to the HRA cash flaw. Mr. Inman stated that it does not change the expense for the first twelve (12) months but reduces future assessment payments. Mr. Prieditis asked about the lack of contingency. Mr. Qureshi stated $52,000 include contingency and interest during construction, etc., is built into that $300,000 figure. Mr. Cmmers asked that if the HRA is assessed for the plaza costs that $52,000 is for interest and carrying costs and other contingency. Mr. Qureshi stated that this would be the cost if the HRA wants the assessment and the City finances the HRA during construction. Mr. Ccmners asked Mr. Inman to give them some numbers on the effects of an outright payment for the plaza. More specifically, the effect of direct payment in 1984 & 1985. Mr. Inman stated that the original effect obviously would be to reduce the amount of cash available by $300,000. This would reduce the HRA's ability to earn interest at the same rate that the City would charge to loan that money. Therefore, the first twelve (12) months would cost the HRA just about the same irrespective of whether they were assessed or pay up front. From that point on, the immediate effect would be in the inability of the HRA to invest the $300,000, which would be offset by the additional assessment payment they would not be making. For the first two to three years the HRA would be behind in actual cash flaw and after four years could potentially gain. It would really depend on the interest rate and the time. Mr. Cambers asked what the cash savings are and how badly does that hurt our cash flaw over 15 years. -.✓ Mr. Qureshi asked Mr. Inman to cane up with an estimate within the next ten minutes. Mr. Skjelvostad then explained the changes in the materials and design for the fountain and the sun dial. He explained the bids came in high. The bids from the contractor could be reduced by building 7 fountains instead of 9 saving $28,000, and by changing the number to five and the material they could save $30,000. Mr. Qureshi stated the reduction in number and having the same shape and use a different aluminum, with the hope that enough money can be saved to have at least seven structures. Mr. Boardman stated that each option saves money. Mr. Prieditis stated he would like to make sure no reflective, sound bouncing off the aluminum or whistling would occur. Mr. Cammers stated he is concerned with. the maintenance of it in regards to the Public Works Department. Mr. Skjelvostad explained there should be no change as far as maintenance is concerned. He also explained that it is more reflective but not much. Mr. Prieditis stated he would like to maintain the numbers if possible. He would like to see a material change with the initial design. Mr. Qureshi stated another item was the deletion of the wall lights with a replacement of overhead lighting. This could reduce the bid by $20000. They are nice to have but the bid costs came in too high. Mr. Commers stated that the carrying cost was never given to them. They thought that they were talking about a total cost of $300,000. Mr. Qureshi stated $30,000 would be the City's financing costs. Mr. Qureshi stated he wanted to make it clear that the construction costs for the Plaza came in at $300,000. That means that the total costs to be assessed to the HRA would be approximately $360,000. If the HRA wants to bring the total costs under the $3001,000 figure, cuts would have to be made. If the HRA wants to pay the Plaza costs directly there would be a savings to the HRA regarding the carrying costs. Mr. Qureshi asked in what areas does the HRA want to make adjustments to and what guidelines do you want to give the City Council to aid them in awarding the contract. Mr. Canners asked Mr. Inman if he has had cash flow projects yet. 10-, HOUSIlw AND AIYBM Y MF.Frt+TM, MARCH 31r. -1983 PAGE 6 Mr. Inman stated that the information that he would give them now was rough and that he would have to run it on the computer to be absolutely accurate. Generally speaking, at the end of 1983, the HRA would be approximately $450000 less in their cash flow position than they would be if they did not pay the assessment up front. He further stated that at the end of 1984, they would only be approximately $ 1601,000 behind the difference being the $300,000 they paid up front plus the loss of interest along with the assessment payment they would not be making in October and the additional interest they would earn on that. Mr. Com ers asked Mr. Inman what the effect would be on his worst case model and Mr. Inman stated that the worst case model included no interest income anyway. Therefore, reducing the cash balance by $300,000 would not effect the worst case model. Mr. Burch showed brochures of the different types of lights. Mr. Qureshi stated that they should try to make rational changes. Tied to the guidelines as we feel the plaza will be used mainly in the summer time. That it is your choice if you want it assessed. Mr. Prieditis stated he preferred the recessed lighting over the other. Mr. Skjelvostad stated it is costly to add lights. Mr. Qureshi stated before the base bid is brought to the City Council, alternatives should be presented for approval. This should be cone before we sign the document and award the bids. MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO PAY THE $300,000 UP FRONT FOR THE PLAZA WITH NO ASSESSMENTS AND TO INCLUDE AS MANY ITEMS AS POSSIBLE SUCH AS RECESSED LIGHT= AMID THE FOUNTAIN, ETC. UPON A VOICE VOTE, ALL VOrM AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION BY MR. PRIEDITIS, SEGO MM BY MS. SVFNDSEN, TO RECU001D TO THE COUNCIL To AkV= THE BID To MONETTE OONSHOCTION WITH ALTEMaTIVFS Al, A31 B11 B4, B5 AND B6. UPON A VOICE VOTE, ALL VOTM AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION BY MR. PREIDITIB, SECONDED BY MS. WENDSEN, TO AWARD THE BID TO NOBLE NURSERY WITH THE UMERSTANDING THAT $23,137.50 WILL BE CHARGED AGAINST THE PLAZA. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CMRRIED UNANIMOUSLY. LION BY MR. PREIDITIS, SECONDED BY MS. SVENDSEN, TO ADJOURN THE MEETING. UPON A VOICE VO'L'E, ALL VOTING AYE, CHAIRPERSON O=4ERS DECLARED THE MARCH 31, 1983 HOUSING AND REDEVEIAPMENT AMORITY MEETING ADJOURN AT 7:08 P.M. CENTER CITY DISTRICT 1 FROM EXECUTIVE DIRECTOR MEMO NO. 83 -23 DATE Apri 1 7, 1983 TO ACTION INFO. SUBJECT Hardware Building - 214 Mississippi Street Housing & Redevelopment Authority We removed Clothing Liquidator, Inc. order on April 4, 1983. This gave us leasing again. This again raises the place on the leasing of the building. tenant makes it nearly impossible to potential risks. from the Hardware Building on an unlawful detainer back the control of the building for purpose of question on the terms that the HRA wants to Placing an 18 month restriction on any new lease to any operation other than those with If the HRA wishes to lease the building, I would suggest that we lease for a guaranteed three years with 2 one year options. Within the two option years, the HRA would be able to buy out the depreciated tenant improvements and remove the business at no additional cost. It may also be in our best interest to hire a leasing agent for that building so we can try to pull in a first class tenant rather than relying on the limited contacts that we generate at the City. I've talked to Fred Levy, to get a feel of prices in this area. He indicated that the average price range for 1,000 to 1,500 square feet is about $6.00 per square foot triple net. The larger the space, the less per square foot you would be able to draw. The top dollar on the hardware building would probably be from $3.50 to $4.00, but with the market in this area, it could be difficult to get. The Lions Club has expressed an interest in leasing the hardware building for the purpose of setting up their club operations. John Gargaro is putting together some figures on what he feels he could rent the building for. They have been talking initially about $2.50 per square foot with a 3 year lease with 2 one year options with depreciated buy outs. The Lions want to discuss that with you at the April 14, 1983 meeting. JLB /de Z STANDARD LEASE PROCESS - APRIL 14, 1983 The following is the standard lease process to be followed on all new leases and the maintenance of new and existing leases. New Leases - 1. A11, leases shall be executed on standard lease forms approved by the Attorney for the HRA. 2. There will be a staff review of required financial documentation (such as, asset /liability report, bank /financial credit reference checks, financial statements of existing businesses, etc). This review shall include the HRA Excutive Director, City Manager, Finance Director and the HRA attorney. 3. The signing of the lease must be approved by the HRA with a report from the Executive Director with written approval from the HRA attorney. 4. All executed leases shall be accompanied by a first and last month lease payment. Maintenance of New and Existing Leases 7, 1. There shall be a standard late payment process set up which triggers the sending of pre- developed form letters in the following matter. a. 5 days late - registerei letter requesting payment with 5% late fee - copy to the attorney. b. 10 days late - registered letter notifiying the tenant and the HRA attorney that unlawful retainer action is to be started. 2. This is set up for a quick step process, however, some discretion is allowed to the Executive Director for cases of unusual circumstances. 3 RE: Payment of rent at Fridley. MN. Dear Mr. This letter is put you on notice that we have not received your rent payment. It is essential that this payment, along with a 5% late fee be received no later than 5 days from the date of this notice. Failure to respond to this notice will start automatic legal action. Payment due F If you have any questions concerning this notice, please contact the Fridley Housing and Redevelopment Authority at 5T1 -3450. Sincerely, JERROLD L. BOARDMAN Executive Director Fridley Housing & Redevelopment Authority cc: HRA Attorney JLB /de 3/0/24/8 4 RE: Action to Remove From Premises Due to Non - Payment of Rent Dear Mr. We have been forced to notify our attorney start legal action to remove you from the premises at , Fridley, Mn., for non payment of rent. If we have not reached 5 days from the date of this notice, we will be required to follow through on the legal action started. Please contact me at 571 -3450. Sincerely, JERROLD L. BOARMAN Executive Director Fridley Housing & Redevelopment Authority JLB /de 3/0/24/9 a HRA RENT *In arrears - $3,420 * *In arrears - $975 MONTHLY DATE LEASEE RENT OCCUPIED 1981 1982 1982 Clothing Liquidators* $3,140 1/83 None Community Credit $550 8/82 $2,750 $1,650 Douthitt $190 + 29.22 9/78 $2,280 $2,280 570 Gary's ** $225 7/80 $2,700 $2,400 None Lifestyle Music $500 5/81 $4,000 $6,000 $1,000 Madsen Building $560 11/82 $560 $1,120 Magic Swirl $507 8/82 $2,535 507 Northwestern Bell $1,020 5/82 $8,160 $3,060 Royal Electric (Standard) $200 3/82 $220 $600 Royal Electric (Land) $20 9/78 $240 $240 $60 *In arrears - $3,420 * *In arrears - $975 FROM EXECUTIVE OIRECTOR MEMO NO. 83-24 DATE April 7 1983 TO ACTION INFO. SUBJECT ACQUISITION OF DR. RYANS AUTOMOTIVE CLINIC Housing & Redevelo ment Authority Please see attached copies of letters written concerning the acquisition of the above noted property. We have been requested to take condemnation action by Mr. Ryan's attorney. This process has been started. It is our hope to still be able to reach some workable purchase arrangement on the property within the restrictions of the Community Development Block Grant Funds. I should have ad- ditional information at the April 14, 1983 meeting. JLB /jh 7 LAW OFFICES ASSOCIATES 6. WILLIAM EKSTRUM STACEY A.DEKALB JAMES W. HOESCHLER March 21, 1983 Mr. Jerry Boardman City of Fridley Planner City of Fridley 6431 University Avenue N. E. Fridley, Minnesota 55432 Re: Ryan Automotive Condemnation Dear Mr. Boardman: As you are aware, our law firm represents Mr. Thomas Ryan in regard to the condemnation of his property located at the corner of University Avenue and 64th in the City of Fridley. Recently the City and the HRA made a proposal to purchase Mr. Ryan's building and land for the sum of $113,000.00 plus an additional $19,746.00 for fixtures and an additional $4,371.00 for his interest in his former tenants' property. This letter is to inform you that Mr. Ryan does not accept your offer in the dollar amounts as stated. I feel that the only way to resolve the matter will be to commence condemnation and to argue the issue of damages before the commissioners and possibly the court itself. In order to assist the City, my client is willing to accept a "quick take" which would mean that he would be paid the full amounts as described herein - before plus relocation costs and reserve all rights that he has to contest the value of the land, building, fixtures, and relocation damages. I have ordered that the abstract be brought up to date in order that the city attorney may review it and that a deed be given to the City for the property in exchange for the monies stated herein reserving all rights that my client has to contest the value as the City and the HRA have stated it. I should also inform you that we have hired the appraisal firm of Newcombe and Hanson to do an independent appraisal to determine what the real value of the property is. HHF /cv cc: Thomas Ryan SMITH, cJUSTE$, FEIKEMA, MALMON Bc HASKVITZ WYMAN SMITH CHARTERED LEONARD T. SUITE 1250 HENRY M. IKEMA GUILDERS EXCHANGE BUILDING ALVIN S. ALMON MINNEAPOLIS, MINNESOTA 55402 RONALD L. . HASKV IT2 ASKV TELEPHONE (612) 339 -1461 CARL J. NEWOUIST FRIDLEY OFFICE MARK E. HAGGERTY 6441 UNIVERSITY AVENUE. N. E. JOHN M. GIBLIN FRIDLEY, MINNESOTA 55432 J.CHRISTOPHER CUNEO TELEPHONE (612) 571 -6670 ASSOCIATES 6. WILLIAM EKSTRUM STACEY A.DEKALB JAMES W. HOESCHLER March 21, 1983 Mr. Jerry Boardman City of Fridley Planner City of Fridley 6431 University Avenue N. E. Fridley, Minnesota 55432 Re: Ryan Automotive Condemnation Dear Mr. Boardman: As you are aware, our law firm represents Mr. Thomas Ryan in regard to the condemnation of his property located at the corner of University Avenue and 64th in the City of Fridley. Recently the City and the HRA made a proposal to purchase Mr. Ryan's building and land for the sum of $113,000.00 plus an additional $19,746.00 for fixtures and an additional $4,371.00 for his interest in his former tenants' property. This letter is to inform you that Mr. Ryan does not accept your offer in the dollar amounts as stated. I feel that the only way to resolve the matter will be to commence condemnation and to argue the issue of damages before the commissioners and possibly the court itself. In order to assist the City, my client is willing to accept a "quick take" which would mean that he would be paid the full amounts as described herein - before plus relocation costs and reserve all rights that he has to contest the value of the land, building, fixtures, and relocation damages. I have ordered that the abstract be brought up to date in order that the city attorney may review it and that a deed be given to the City for the property in exchange for the monies stated herein reserving all rights that my client has to contest the value as the City and the HRA have stated it. I should also inform you that we have hired the appraisal firm of Newcombe and Hanson to do an independent appraisal to determine what the real value of the property is. HHF /cv cc: Thomas Ryan E FROM EXECUTIVE DIRECTOR MEMO NO. 83 -26 DATE April 7, 1983 TO ACTION INFO. SUBJECT COMMUNITY CREDIT UPDATE Housing & Redevelopment Authority Please see attached the memo from Dave Newman regarding the Community Credit condemnation. He has indicated that an appraisal of the lease will be required for the quick take action and should be Fompleted as soon as possible. This will also give us a basis for any possible negotiation with community credit. I have taken the necessary steps to get that appraisal completed. I will keep you in- formed of any future activity regarding this matter. JLB /jh 9 MEMORANDUM To: Jerrold Boardman From: David P. Newman t --- Re: Community Credit Company Date: April 8, 1983 You asked for clarification of the procedure being followed in the condemnation of the leasehold interest held by Community Credit Company. Inasmuch as Community Credit Company appears to be in possession of the property under a valid lease, the only action available to the H.R.A. was condemnation, since an unlawful detainer cannot be commenced against a tenant in rightful possession. In commencing the condemnation, we included a notice provision in which we advised Community Credit that we intended to take possession of the property on June 16, 1983. This was done pursuant to M.S.A. Sec. 117.042. This statute provides that if the City has an actual need for the property before the determination of the award by the commissioners, then the public body may take possession 90 days after notice is given by either paying to the owner or depositing with the court, the amount of the petitioner's approved appraisal. Consequently, it will be necessary for the H.R.A. to obtain an appraisal on the subject - property. This appraisal is different than the one performed by the court appointed commissioners. Although the appraisal does not need to be done at this time, it must be completed prior to the expiration of the 90 -day period. In addition, I would ask that it be done soon enough so that we would have time to apply to the court for an order transferring possession of the property to us teased upon our appraisal. It is my understanding that you have also asked our office to commence condemnation proceedings on the property owned by Tom Ryan. Again, we will draft the documents so as to provide for 90 -day possession and they will be prepared so that they can be served as soon as the H.R.A. has adopted a resolution authorizing the condemnation. .. 13 m v >1 r4 k g � Aj �v� g � v v .41 0 g �Ai 10 y d d gig3 3 o C rl in in b r4 .Ni N N O M .. y ++ 11 FROM EXECUTIVE DIRECTOR MEMO NO. 83 -25 DATE April 7, 1983 TO ACTION INFO. SUBJECT BIDS FOR THE SALE AND REMOVAL OF THE SINGLE FAMILY HOME AT 332 64TH AVE. N.E. Housing & Redevelopment Authority Please see the attached bids that were received for the sale and removal of the above noted single family home. The high bid was Safeway Movers at $5,800.00. The house is set for removal on May 2, 1983. This bid calls for the removal of the house structure from the site. All movers will be notified by letter, fol- lowing HRA awarding of the sale at the April 14, 1983 meeting. I am also enclosing copies of the bids for the removal of the garage at 336 64th Ave. N.E. The demolition and removal was completed as required under our contract with Columbia Park Clinic. H & S Asphalt Company was low bid at $3,750.00. JLB /jh WA CITY OF FRIDLEY 6131 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 TELEPHONE ( 612)S71 -3450 1983 lovers, Inc. 0100 - Z35th Street North Forest Lake, MN 55025 Dear Sirs: At the regular H.R.A. meeting on April 14, 1983, you will be awarded the house located at 332 - 64th Avenue N.E. The price you quoted the City of Fridley was $5,800. We require a certified check in the amount specified made out to the Fridley Housing and Redevelopment Authority. The check must be received prior to any activity on the property. As per our agreement, the house must be moved out of the City on or about May 2, 1983. It is imperative to the surrounding construction that this project be completed as soon as possible after May 1, 1983. Thank you for your cooperation and we look forward to working with you. Sincerely, i John G. Flora Director of Public Works JGF /mc cc: Jerry Boardman Mark Burch Del Zentgraf 0 SENDER Tr OR WRITE MESSAGE PIEE OUT rE SN[ET SPEEDWRITER MESSAGE MAIL NtiTE AND PINK COFIES TO ADDRESSEE ADDRESSEE WRITE REE'lr KEEP WHITE COPY RETURN THE PINK ,.s FROM: DALE MOVERS, INC. 7816 CENTRAL AvE•. N. E. MINNEAroLIS. MINN. 55432 Pry. 7014.4269 ■ i�J City of Fridley 6431 University Ave NE Fridley, 11N 55432 Attn: Del - MESSAGE 13 ❑UTME V PLEASE REPLY ❑ REPLY NOT NEEDED DATE March 30, 1983 IUDJZ RE: House on 64 Ave 2IE Our bid for house and garage to be removed from property. Removal will proceed on 24 hours notice. $2651.00 1 FOLD "'R, TIJO THOUSAND SIX HUNDRED FIFTY ONE DOLLARS. i TO •R l tlt0009 t 111tl*LOPS SIGN HERE Dale E. Peter:�e.>}E President -REPLY SIGN HERE ADDRESSEE: PLEASE KEEP WHITE COPY AND RETL'R.'% VI.NK curt SEND VIA ❑ REGULAR MAIL ❑ AIR MAIL ❑ SPECIAL DELIVERY ❑UTME V PLEASE REPLY ❑ REPLY NOT NEEDED DATE March 30, 1983 IUDJZ RE: House on 64 Ave 2IE Our bid for house and garage to be removed from property. Removal will proceed on 24 hours notice. $2651.00 1 FOLD "'R, TIJO THOUSAND SIX HUNDRED FIFTY ONE DOLLARS. i TO •R l tlt0009 t 111tl*LOPS SIGN HERE Dale E. Peter:�e.>}E President -REPLY SIGN HERE ADDRESSEE: PLEASE KEEP WHITE COPY AND RETL'R.'% VI.NK curt rn nntti Page No. Of PagJ4 SAFEWAY HOUSE MOVERS, INC. 8955.235th Street North FOREST LAKE, MINNESOTA 55025 Phone 4642037 PROPOSAL SUBMITTED TO PONE DATE G - 3— JOB NAME STREET CITY. STATE AND ZIP CODE JOB LOCATION ARCHITECT DATE Of PLANS JOB PONE we hereby submit specifications and estimates for: �P 11rapoor hereby to furnish material and labor — complete in accordance with above specifications. for the sum of: Lin is - _dollars Payment to be made as follows: All material r ng to standard ar be as ces. Any All work o d Completed in a above spoc4f"- ��� manner according to sUndard practrcei Any alteration a deviation from above specrfica� Authorized �� Ilion: involving extra costs will be executed only upon written orders. and will become on Signature axtra charge over and above the estimate All agreements contingent upon strikes. accidents r Note: This proposal may be a delays beyond our control. Owner to carry fire. tornado and other necessary insurance. Our worker: are fully covered by workmen's Compensation Insurance. withdrawn by us if not accepted within days. AIrPptan P of f roposta —The above prices. specifications and conditions are satisfactory and are hereby accepted. You are authorized Signature to do the work as specified. Payment will be made as outlined above. Date of Acceptance: Signature t i TO ADDRESS 15 STATEMENT TED RENOLLETT 927 Andover Blvd. N. E. 755 -3126 Anoka, Minn. 55303, L A A... 0 .� .. CITY - STATE Description Charges SWOON � �■ � Ifs I� ■ ■ I ION ■ OEM � ■ I�rl Pay! LosliAmount in Balance Column i■■ 1% per month service charge will be made an all a not collsocted within 30 days of due date. I� I- Drnuns l Page No. Of Pages 'rjpjfttWp of fIro;tnB81 —The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized Signature to do the work as specified. Payment will be made as outlined above. Signature Date of Acceptance: PO M 1101 COrrlaOrrr 19W - •wtlalr ego ; NWH WC . WOM tles oleso 16 PARK CONSTRUCTION CO. 7900 Beech Street Northeast MINNEAPOLIS, MINNESOTA 55432 (612) 786.9800 PIIOf OSAI fuN� TO PHONE DATE STREET 64-TI ��. JOB NAME CITY. STATE AND ZIP 000E , JOB LOCATION ARCHITECT DATE OF PLANS JOB PHONE We hereby submit specifications and estimates for: A •,lam _�e4t,• r WP f ropost hereby to furnish material and labor — complete in accordance with above specifications, for the sum of: -. d /k.. t 4 Y / o f.f / flre-c c4e cl c14 K dollars (E Payment to be made as follows: All m.tsrial is guararAeaA to be as sPec&W. All .cork to e! eomaatW in a workmanlike Authorized manner 11CCOrdins to standard practices. Any alteration or devotion from above specfica• St Authorized � g lions involving eatn cods will be esecuted only upon written orders, and will become an care charge ow and above the estimate. All agreements contingent upon strikes. accidents :This proposal may be our control. Owner to carry fire. tornado and other necessary insurance. or delays beyond rn n,..e...R .r. Iully m, amd by workmen's Compensation Insurance. with by LWif not accepted within �! days. 'rjpjfttWp of fIro;tnB81 —The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized Signature to do the work as specified. Payment will be made as outlined above. Signature Date of Acceptance: PO M 1101 COrrlaOrrr 19W - •wtlalr ego ; NWH WC . WOM tles oleso PROPOSAL Page No. of Pages H & S ASPHALT COMPANY 17 700 Industry Avenue NW Anoka, MN 55303 Phone 427.4900 Proposal Submitted To �.,... e.. Phone Date City of Fridle7 571 -3450 13/7/83 Street 6431 University Ave. NE Build Name rmoval City, State and Zip Code Job Location FYidle MN 55432 69th Ave. NE, Fridley We hereby submit specifications and estimates for: Detsolition and rmoval of concrete block building at 64th Ave. N.E. for lump sum bid of $3.750.00. We propose hereby to fumish materials and labor • complete in accordance with above specifications, for the Price hereinafter stated: Q One Total Contract Sum of 13- 750 -00 PRICE: ($ ) (Check applicable box) O Unit Price: S per Final billing amount shall be Unit Price shown • final delivered installed quantities Payment to be made as kiliows: PaRmt in full Upon oonletion. Applicable Interest rate on past due amounts % per annum. (See reverse side) Personal Guaranty Required O Yes O No (See Guaranty Section Below) NOTE: This proposal may be withdrawn by us if not accepted within days. H& 5 OMPA Y BY wwwr.dSq"w-. 1 11am B. Miller, V.P. SEE ADDMNAL TERMS ON REVERSE SIDE HEREOF. ACCEPTANCE OF PROPOSAL • The above prices. j specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as Signature specified Payment will be made as outlined above. -- -" Signature Date of Acceptance- - -- 1NDMDUAL GUARANTY rwwdmyrd.mw6vioadeeMa SPA" CwMwr.Mara'ar0dreanftwhnfrat a nlnrr�+iwlrAria�aMM.rr.�r+v ,r.•r.• •o. +vrr,a_.•.••. carsW'0W,01 Iw.*r.+e ol.+ary anp,.:.duo- -.de' •vw =..r.. �.o..,,a e,y:..a.f.►a....gs ^• ,..•„ . esrrarlvad al eape� mini - 0d a. a. ngon-'r ^•ao�",•••.ti•gr. -v• .., e~ *Iasi rarrarta. OW ap MbIf of dY wiiimlad Mmawdn SWISh a (1) Sirytue (Y) ME MOORE LAKE DISTRICT THE CITY OF HOUSING and REDEVELOPMENT AUTHORITY FRIOL FROM EXECUTIVE DIRECTOR 19 MEMORANDUM MEMO NO.83 -28 DATE March 7, 1983 TO ACTION INFO. SUBJECT Letter from Tom Brickner Requesting Assistance for Continueation of his Heather Hills West Development Housing & Redevelopment Authority x Please see attached letter from Tom Brickner, requesting HRA assistance for the continuation of his development to the north for the completion of Heather Hills West. In looking at the proposal, I would recommend caution on the part of the HRA to not be a catalyst, but assist as needed within the limitations of funds generated by the proposal. I have estimated that the proposal would generate six single family lots for homes between $200,000 - $250,000. That kind of development would generate approximately $100,000 in tax increment funds. If the HRA is interested in assisting in this proposal, I would suggest that the HRA assist Mr. Brickner in a negotiated purchase between himself and Mr. Skinner up to the amont of money available in the project and then only in the amount necessary to make it a viable project. I will discuss this further with Mr. Brickner prior to the April 14, 1983 meeting. JLB /de 11 w wao�a�awao ou��oaw Designers & Builders of Fashionable Homes Since 1963 20 E R B Uit Inc. Ap*�,q 574 - 9871 6249 BEN MORE DR. FRIDLEY, MN. , 55432 Mr. Jerry Boardman City of Fridley 6431 University Ave. N.E. Fridley, Mn. 55432 ff RE: Ralph Skinner Property 6211 Central Ave. N.E. Fridley, Mn. 55432 Dear Jerry: March 18, 1983 Brickner Builders', Inc. is interested in purchasing the Ralph Skinner property, which is adjacent to our Heather Hills West development. Our Heather Hills West homes are in the upper price bracket, and if we are allowed to continue development to the North, by building compatible homes, I feel it will be beneficial to our customers and the city will benefit from higher taxes because of the price range of the homes. Because this is in the redevelopment area, if the HRA purchases this land, I would like the opportunity to buy the cleared land. , Our proposed offer is $65,000.00. Your consideration of this offer would be appreciated. Since , omas E. Brickner Brickner Builders', Inc. 4TH AVE L ERW/ p �• 6, 13,77- 1304 ' 1400 14x6 1 #42l4so, 4 •, , Jio 6400 l ►3'N 13sc� r% C/Aw ("�w s a► �� j I AF- U- I� r .�� L 21 1 � (MW ACE 300 . I 14 L O 13 2 14 s S 14,0 ` ST RICE 24,CREEK ROAD ppp_ r 1 btgl ••j 47 °' ��.i,;.1y 140.0 ' i 3o zo 10 i ; . -. GZ93 -Jr. 4203 f ! t' �- ts!w - W ! -- - ..•f�` - i+ 6 5 • .. L� f t Z as r . rlt ` G471 _ , f < 6275 CLW?�, • (rZ.45.f r jb7 16 Z4 _ 6 z24 - Auk, 19 e6` 1-' `• �Z <o its, 2 T 11 6 `ti�6 . lA W i Z 3 1 / A 3 6 Y 6s '' ?S 3 6191 61 1 1R• 3 k A/O ORE I 1400 S0 61 3 f0 '31 �r z 3 p s a a� bt3Z '� OOY �'' ': `•,� � X50 jib IMF s .0 the I U8 tj 22 Xr, If -ftik & 10 Oft ICE A J., llfl AID . -&f % 06 o 0 llb 94 Ar 4p 're/ lc\ 4 .10 Of 44 rq z k 9 7 0 SL 41 rn lei a fl I . frvt tv Sf/ (rllw --r Attentions Jerry zoardran Planning Con.r.i t =:e City of rf ridley /LG //, A 9, w 7 Pr- 7,2, 900 5fruc -1a 1W 23, 8D4 ,64#141 'role,. mvo Ta1a -! 77,40oo 26,200 /v 2, Boo '`A 198/ Resss)or ?,re, i .re c; nf: _. f ^r sale tc .e of =c,—r+.Y, ( la_n' an! - ulllinrs ) lccate3 at 6217 CentrB.' tve. i:. FYI 2e-,, Fr.., w -.4ch legal description Is; lots 201 and 21, a&itors cu�-i•:icior. r.ur'ter " ?� An -1a County, Yn., a- is, with the following exceptions: furnirhin-_, a~:: a ^rliance£ in the hcusc aria a'1 tools, work benches, shelving, ca- inetr", F=^ f -=race a` n ronerails in f:araCe. Al2 equiinert, power or ran-a u^,,f,, incllert%' t,+ =-, :aint.ain_..c,- : ..._r c_ t*--..- ri ru anc total cr the raik: 1-rice offer IF Tr: . u re' . is }i {• ^i,.� c' Ti- .cunanl do"lw -rq ( �- 5,000.0" ). ?'ris cffer sti.a'1 sixty, days frcm the date of this ir.ctr:nent ant nrall automatically ex_irc at that time if nr,t accerte2. 23 /1'ttl /nt W Sf �s i% Stc %in /� 7-*0A; R-A w 24 $ ...�_,_ "�•��• ;r -(sssi n�vnt [.;t. ,✓.as) •; �� � u a �i�ESENT T to l AV — — I G2.7i / ?5.00 90.0/ rs•o0 a,�! ; I 299300 zs z� TI Tsgc - 30, 541 AY. ti kAl _ - -� w � M a e• °-� I g 1 r :.o, / OgE,•V jff 75.00 Y i til R C/R M TN A _,..� N ,o o a••-'� •; '11 � ti .'�.�` �y.r —� — y,* �a `z- ~ to C a i' y �' ►� a I' `. o +^ I M&20 - -• _ woo r�- u .. v �.. Oo�` / \� '� yri N4k il 9sls ���;;to��`�/ � t,t� �' bi•iF J' SS' /y• *9 "/✓ ti •1.�'j!'!t!i-�o ofj oa N�'��d1i:y �� Q ^fie h A I v ad\m° 0 jf 0� v W w 4l shoo C v Ob c• ut • b4 M � -'- -- a w I Eg �l� �,• � k - - - -- ti o . oo. v � AV 70,000 72... /os.00 cz.00 • O • M � g „�� I S M � �O Q .i S 7 �' '1 O � ►+ e• f• iol?HI. 25 FROM EXECUTIVE OIRECTOR MEMO NO. 83-27 DATE Aril 7, 1983 TO ACTION INFO. SUBJECT ST. PHILLIPS REQUEST FOR "RIGHT TO DEVELOP A PROPOSED 202 PROJECT IN PHASE III OF THE FRIDLEY MOORE LAKE REDEVELOPMENT PROJECT." Housing & Redevelopment Authority y% St. Phillips Human Services, Inc. has requested a "Right of Development" from the HRA for the above noted project. The project is similar to the one ap-1 plied for in 1982 and denied by HUD in their overall ranking of projects. The project as presented will generate approximately $325,000 in usable tax increment funds based on conservative capitalized interest estimates. I have attached a "Right of Development Letter" for this project for your consideration. We have taken the necessary action requested by the HRA for soil compaction tests on that site. Soil Exploration Company is working directly with the architect for St. Phillips Human Service, Inc. to provide the appropriate in- formation they need for site analysis. JLB /jh J 0 t � 0 e Y / W + � C V W � C I I e Z a J a W F- EXHIBIT 1.00 BOND ISSUE DETERMINATION FOR: FRIDLEY MN -CONTRACT COSTS LEGAL, FISCAL & ADMINISTRATION SUBTOTAL LESS FUNDS AVAILABLE: CASH FLOW DURING CONSTRUCTION 29 5/25/82 1983 TAX INCREMENT FINANCING 395,586 2.50% 12,500 408,086 17,890 17,890 SUBTOTAL 390,196 LESS INVESTMENT 11.00 YEARS @ 13.00/7 64,999 NET PROJECT COST 325,197 INTEREST DURING CONSTRUCTION 12.75 YEARS @ 12,00%.3 165,000 PRINCIPAL AMOUNT NEEDED 490,197 DISCOUNT ALLOWANCE E2.00 %3 9,803 SUP TOTAL 500,000 ADDITIONAL CONTINGENCY E .000%7 0 BOND ISSUE 500,000 DISC 1 FILE 30 PROGRAM COPYRIGHT BY EHLERS & ASSOC, INC. 1/12/1981 ~� 3y10 N « it I s, / ! .�._ 3/G LN d i I • _.lsd7 � /ss� d �s 7s I le l0""3io 101z Ioab; I �D • .��,� ADS AUDITORS vgl � ,SA�,_►r �QmAiJ IMOP') ?YG lip_ Aso, �.� s - —1._- 1 ; � 1 / a^ — r- o� r - °•6�,5� l� N 2O e 30 -- ° y rad r, %6 � 3j ; m '4 ovrj.OT 3 ' \� ~ - -•- 1 L� 21YI1 =6B• s z�tfi fzj Mfr e � � !�- -- -- ,e f• , , h 6 Z83 ,- %.3 �• IIZ%� = , ... _. • '"� 271 , • °� �° �Dor.7Sr, 4 ' � 1 1' I •• ' -1pfiT�'iA1.RE�mAa � ' b o• -f r —m,ax sa,.�rf,.maaN CC Z . W -NQ. 8 8 r paga p.9 u I,1, _J 1 � � - .r._�. �S POfoi LSS st.' Gs�sl�ir tiles r'o. / � ` i � y 11.23 t✓.; T�o�.sA fwms�;>..�0�?• V j s� NORTH AREA DISTRICT HOUSING and REDEVELOPMENT AUTHORITY RID 31 ME MOR ANDU FROM EXECUTIVE DIRECTOR' MEMO NO. 83 -29 DATE March 8, 1983 TO ACTION INFO. SUBJECT Contract for Assistance for G. W. Paschk Lots 5 and 6, Block 4, University Industrial Park We have had several meeting with Mr. Paschke concerning the specific contract documents for requested assistance on tke above noted property. However, we have not as yet come to an agreement on the terms of the assistance nor the base level that we feel is necessary to measure that assistance. We hope to have another meeting prior to the HRA meeting on the 14th so that we can finalize the contract for HRA review and discussion. JLB/de 32 FINANCIAL OTHER ITEMS 33 Tr OF HOUSING and AUTHORITY FRIO ........ FROM EXECUTIVE OIRECTOR MEMO NO. 83 -22 DATE March 28 1983 TO ACTION INFO. SUBJECT Status of ELO Engineering Nasim M. Qureshi K X As we had indicated to the City Council and the HRA during our previous discussion on the General Reserve Fund System, ELO Engineering had intended to move to Coon Rapids to develop a new facility. They had decided not to locate in Fridley because of the benefits that were being promoted by the City of Coon Rapids to draw in new business. We have been working with Mark Haggerty, who is representing ELO. Mark has convinced ELO to hold off on making a commitment with Coon Rapids based on the possibility of providing assistance through the General Reserve Fund System that we are looking at with Piper, Jaffray & Hopwood. If they stay in Fridley, they would be looking at expanding their present facility by connecting their existing building to the South. The building to the South is presently vacant and they have taken an option on the property until June 30, 1983. Mark has indicated that they have been able to arrange bank financing on this project subject to a workable reserve system. This may be an ideal first project for the reserve system provided that the City Council and the Housing & Redevelopment Authority concur with the programs that will be presented by O'Conner Hannon for the system. We will continue to work closely on this matter and keep you informed on its progress. JLB /de r IV. Cosy SEC t S • Cogs sm I 34 S 112 SEC. 2, T. 30, CITY OF FRIDLEY CITY OF SPRING LAKE PW I —si-.: i- ---tom• •I '� S i.I ) I / /i / x .• 7 41 0 14 � . > ii * J 1 N f ♦ � � WyLDw000 LANE I co r At r .1 a s i �y sl r F ii f ` iY I in i BOTH r�AVE. N.E •O e a 40 • w a ROSEOALE R - �y fi- W 2 r a zN O � I MALE— %4 41 �,;� [s „� N �-�'L p• -0 _ �-1 i� 1 f� a •to • a; i fI i A � G G Joi ONa r • ___ �.— �IT.T _y.► _ L. .i I MII. .. � i : — 40 a l �. _. _ _ _ ._ I ii 7e vz AVE • F ♦.r i �J •.4f : J '4r f cc tr/ is M • W 70 TM AVE. • 1hr. 4w /♦ • 1 j -'4ATE L' ^! al r R 1 1 ; WORK, � • � � ~ pA1N, _ � s w ctMir� �l 0 1 rw L..ir .• � S • Cogs sm I 34 S 112 SEC. 2, T. 30, CITY OF FRIDLEY CITY OF SPRING LAKE PW I —si-.: i- ---tom• •I '� S i.I ) I / /i / x .• 7 41 0 14 � . > ii * J 1 N f ♦ � � WyLDw000 LANE I co r At r .1 a s i �y sl r F ii f ` iY I in i BOTH r�AVE. N.E •O e a 40 • w a ROSEOALE R - �y fi- W 2 r a zN O � I MALE— %4 41 �,;� [s „� N �-�'L p• -0 _ �-1 i� 1 f� a •to • a; i fI i A � G G Joi ONa r • ___ �.— �IT.T _y.► _ L. .i I MII. .. � i : — 40 a l �. _. _ _ _ ._ I ii 7e vz AVE • F ♦.r i �J •.4f : J '4r f cc tr/ is M • W 70 TM AVE. • 1hr. 4w /♦ • 1 j -'4ATE L' ^! al r R 1 1 ; WORK, � • � � ~ pA1N, _ � s w ctMir� �l 0 12� NocfN Lot 3 Ego Es3GINEE C —• � �opoSED i AopinoH �Vv G� FA U�. igw tlwl- r 3t.0cm - (ELO hea Woken W Ay Opfoa%) Loft y 1 35 36 CITE/ OF HOUSING and.. .. ......... . ........ AUTHORITY FR- FROM EXECUTIVE OIRECTOR MEMO NO. 83 -30 DATE March 8, 1983 TO ACTION INFO. SUBJECT Possibility for Stock Piling Fill for North Area District Housing & Redevelopment Authority X If we are going to make the North District work, it will take a considerable amount of granular fill to assist projects with major soil problems. As one means of providing this fill, we are considering the possiblility of setting up space for stockpiling excess granular fill from various projects within the Twin Cities Area. I have been working with the City Manager and the Public Works Department in trying to set up the potential for stockpiling. I will keep you informed on any development with regard to this item. JLB /de a 37 .vt�eR- ., .,... V --is 1,mm ae�x• r a , ,,, x. t� • ham,.. +• �.. Writer- To the editor: Two years ago, the Fridley Hous- ing and Redevelopment Authority (HRA) used federal tax dollars to buy the Fridley Hardware building for something like $200,000. IQ=- one knows n to urn- '>s' HRA Executive Director Jerrold (Jerry) Boardman then elected to leave the building vacant, baking in the hot summer sun. if a few of us taxpayers had directly invested money in this building, would we have left it vacant and ' made no effort to produce a return on our investment? Of� t. But the HRA apparently operates under entirely different economic principles. The final insult to taxpayers in- teldgence is to learn that Jerry has rented the building to a 'flea mar- ket" but after several months has never received any rent. Think for a minute. Money the federal government in effect bor- rowed, used to buy a building to leave it vacant and in desperation, renting it out to a group that pays an cta you a rent—l" np� a a ty e a or tax ars. The upcoming mayoral report (published just before elections) won't highlight the quagmire the HRA has created. The city council seems to feel they don't have con- trol or responsibility for the HRA yet the mayor appoints HRA mem- bers. yid' �� . H& Center is un jor o e, yWrHRA still enviisions o major shopping center across the street. Can we taxpayers afford to allow this financial bungling to continue? Michael J. Larm Fridley f 6230 Jupiter Drive N.E. Fridley, Minnesota 55432 March 239 1983 Jerry Boardman HRA Director 6431 University Avenue Fridley, Minnesota 55432 Mr Boardman, W If the enclosed article in the recent Fridley Sun is correct, I'm just as mad as Michael Larson. We have been home owners and taxpayers in Fridley since 1957 and have seen a steady deterioration of grocery shopping facilities in our area. The exodus through the years of National, Penny's, Red Owl and I understand that Cub will soon departs has left Fridley with little choice in grocery shopping. To the average taxpayer, paying $2009000.00 for the hardware building seems out of line. A stranger driving through Fridley's "Downtown" is not impressed with the vacant buildings and barren lots. What do you people have In mind? I will look forward to your reply. Since e Keit 4 3c), i39�3 Larson: role of HRA To the editor: Well, our property tax statements sure made interesting reading this past week. The portion of our taxes that goes to our schools is justified because the education of our children is our most important social endeavor. The school board sees to it that our tax dollars are spent effectively and efficiently. The city council should take ac- tion though to reduce the role of the Housing and Redevelopment Au- thority (HRA). I'm convinced we're headed for trouble that will affect our ability and our willing- ness to support all our taxing dis- tricts, especially our schools. Look at what has happened to Eisenhower Park as an example, First, our HKA tears down the park, cutting down beautiful mature oak and other trees. Second, through their tax incre- ment districts, they restructure the entire area around city hall. The buildings within the district won't provide additional tax dollars for our schools, the county or the city. For up to 20 years, the property in a tax increment district no longer contributes to the growth in our tax base. The net effect is that that burden is placed on homeowners. Third, the HRA spends around x300,000 buying the Fridley Center building that houses several busi- nesses. The purpose? To bulldoze the building t$ replace some park- ing areas. Finally, the HRA will spend in excess of VW,000 for landscaping the new park. (Taxpayers may be interested to know that at the time the bids for this project were ac- cepted last week, the drawings ap- parently made no provision for the handicapped.) The net result? The HRA spends something like =500.000 to achieve a marginally improved park and parking area, the burden for funding our schools and government for the next 20 years is placed more on the backs of homeowners and we have a park with young trees to replace a park with mature trees. For my money, the more we. restrict HRA activities the better for us all. Michael Larson, Fridley 39