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:
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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.
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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.
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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
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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.
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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
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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
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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
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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
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til
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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
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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
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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
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SEC t
S • Cogs
sm I
34
S 112 SEC. 2, T. 30,
CITY OF FRIDLEY
CITY OF SPRING LAKE PW
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34
S 112 SEC. 2, T. 30,
CITY OF FRIDLEY
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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