HRA 12/08/1983 - 6741HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, DECEMBER 8, 1983
7:30 P.M.
City of Fridley
AGENDA
HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, DECEMBER 8, 1983 7:30 P.M.
Location: Council Chambers (upper level)
CALL TO ORDER:
ROLL CALL:
APPROVAL OF MINUTES:
Housing &-Redevelopment Authority Minutes: November 10, 1983
ADOPTION OF AGENDA:
CONSIDERATION OF AMENDING BY ENLARGEMENT OF
REDEVELOPMENT PROJECT #1 . . . . . . . . . . . . . . . .
. . . . . 1 - 1C
CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT
BETWEEN THE HRA AND PACO INC. . . . . . . . . . . .
. . . . . 2 - 2E
CONSIDERATION OF TAX INCREMENT #5 WITHIN
DEVELOPMENT PROJECT NO. 1 . . . . . . . . . . . . . . . .
. . . .3 - 3A
v
DISCUSSION ON HARDWARE BUILDING . . . . . . . . . . . . .
. . . . 4
CONSIDERATION OF EXCLUSIVE LISTING AGREEMENT
SUBMITTED BY GERALD E. MESSLER (Lifestyle and
Madsen Buildings) . . . . . . . . . . . . . . . . . . . .
. . . . . 5 - 5C
CONSIDERATION OF APPROVAL OF PAYMENT OF THE
SETTLEMENT TO DR. RYAN'S AUTOMOTICE CLINIC
AS PER COMMISSION FINDING . . . . . . . . . . . . . . . .
. . . . .6 - 6B
CONSIDERATION OF CHECK REGISTER . . . . . . . . . . . . .
. . . . .
DISCUSSION ON NOVEMBER 6, 1983 FINANCIAL REPORT . . . . .
. . . . .
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY
MEETING
NOVEMBER 10, 1983
CALL TO ORDER:
Chairperson Coroners called the November 10, 1983, Housing & Redevelopment Authority
meetint to order at 7 :37 p.m.
ROLL CALL:
Members Present: Larry Coroners, Elmars Prieditis, Carolyn Svendsen, Duane Prairie
Members Absent: Walter Rasmussen
Others Present: Jerrold Boardman, City Planner
Dave Newman, City Attorney
Sid Inman, Finance Director
Jim Casserly, O'Connor'& Hannan
Maynard Nielson, Fridley Lions
John Gargaro, Fridley, Lions
Bob Cook, Fridley Lions
Mark Haggerty
APPROVAL OF OCTOBER 13, 1983, HOUSING & REDEVELOPMENT AUTHORITY MINUTES:
MOTION by fir. Prieditis, seconded by Ms. Svendsen, to approve the October 13, 1983,
oH—u ng & Redevelopment Authority minutes as written.
Upon a voice vote, all voting aye, Chairperson Comers declared the motion
carried unanimously.
1. COMMISSIONER'S FINDINGS
Mr. Boardman stated that previously he had given the HRA the commissioner's
findings on both the Hardel and Ryan properties. He stated he has talked to
Mark Haggerty, attorney for Mr. Ryan, and Stan Rischard, attorney for Mr. Hardel.
Both have indicated they are going to be seeking an appeal on the commissioner's
findings. On the Hardel property, the City's appraisal was $82,000 including
fixtures, and the commissioner's award was $91,300. Hardel's appraisal was
$97,055.
Mr. Boardman stated that on the Ryan property, the City's fixture and appraisal
was $137,117 ($24,117 - fixtures; $113,000 - land and building). The
commissioner's award was $177,300. Ryan's appraisal was $234,000. Mr. Haggerty
has indicated his client is looking at appealing this process.
Mr. Haggerty stated he was looking for two things from the HRA: (1) He
thought Von Klug & Associates should be presenting a proposal soon on
relocation. Rather than have his client wait another 30 days for relocation,
he would like to have the HRA give City Staff the authority to pay whatever
Von Klug thinks is reasonable on relocation. (2) The commissioner's award
HOUSING & REDEVELOPMENT AUTHORITY MEETING: NOVEMBER 10, 1983 PAGE 2
was definitely less than 50% of what they thought it would be - -less than
50% of the difference between the City and Ryan's appraisal. He has talked
to his client about some form of compromise. Mr. Ryan obviously feels it is
worth $234,000. If there is any leeway whatsoever, maybe something could be
worked out. If the HRA could give him some indication if there was any kind
of flexibility on the commissioner's award, he would take this information
back to his client.
Mr. Newman stated that from a legal standpoint, there was the question of
whether the HRA has the authority to delegate any amount of money without
first reviewing the proposal, or if the HRA would even want to surrender that
right of at least reviewing the proposal.
Mr. Haggerty stated there was a 120 -day wait on relocation because they
agreed to give the HRA protection on the mechanics of this. They have already
run through that 120 days. Since there is no history of changing what Von Klug
is suggesting on relocation, it seemed it would be appropriate to delegate
authority to Staff so they would not have to bother the HRA again. They know
the maximum is $10,000 so it will be $10,000 or less.
Mr. Prairie suggested it might be feasible for the HRA to authorize Staff to
pay out 75% of the relocation payment, then the HRA could review the proposal
and agree to the balance of 25 %.
Mr. Commers asked why Von Klug has not been able to present the relocation
proposal earlier than this.
Mr. Haggerty stated one problem was they didn't realize until about 30 days
ago that Von Klug needed to see Mr. Ryan's financial statements. There has
been some problem because the financial statements are not totally in order
and they are reviewing them.
Mr. Commers stated the HRA may want to look at those financial statements in
making the determination.
Mr. Prieditis agreed. He stated there are examples of what can happen, just
like questioning the City's appraisal and the commissioner's award. He would
like to hear the facts before they delegate out any authority.
Mr. Comers stated it appeared there was some reluctance on the part of the
HRA to delegate authority to Staff to accept the Von Klug report and make the
relocation payment.
Mr. Haggerty stated he would have no problem with the disbursement of payment
as suggested by Mr. Prairie. If the HRA could send Mr. Ryan something, he
would appreciate it.
Mr. Commers stated Mr. Ryan does have his money on the quick -take.
Mr. Prieditis asked what the consequences would be after a partial payment
if the HRA disagreed with what was being requested on the relocation payment
and the actual revenues.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 10, 1983 PAGE 3
Mr. Haggerty stated that in the quick -take, they had an agreement with Mr. Ryan
whereby if the commissioner's award was less than what had been paid, he had
agreed to pay the difference. He did not think they would have any problem
with that, that if the HRA felt the award was not appropriate on relocation,
Mr. Ryan would pay it back.
Mr. Commers stated that since no motions have been made by the HRA on the
subject of relocation, the Chairperson would indicate that no change was in
order.
Mr. Commers asked what Staff's recommendation was regarding the commissioner's
award.
Mr. Boardman stated it was the City Attorney's legal opinion that the HRA was
in a pretty good position and any appeal would not create a lot of difference
in the process. At this point, it was up to the HRA as to whether they wanted
to be flexible in the amount of estimated costs for the appeal. The estimated
costs to the HRA in defending any of the appeals would be between $3,000- 3,500.
Mr. Newman stated that was the cost of legal fees. In addition, there would
be the cost of the appraiser's and commissioner's testimony. He would estimate
an additional $500 -750.
Mr. Prairie stated that with this whole situation with Mr. Ryan, the HRA has
been subject to some criticism. Based on that, he thought it was difficult
to make any compromises because he felt the HRA had already been more than
generous.
Ms. Svendsen stated she was in opposition to any additional settlement. She
felt the HRA has been very considerate of Mr. Ryan and has been fair to him in
helping him relocate.
MOTION by Mr. Prieditis, seconded by Ms. Svendsen, to affirm the award of the
co m ssioner in terms of the HRA's offer to Mr. Tom Ryan.
Upon a voice vote, all voting aye, Chairperson Commers declared the motion
carried unanimously.
2. LION'S CLUB PROPOSAL FOR HARDWARE LEASE:
Mr. Boardman stated he and Mr. Inman, met with John Gargaro last week before
the Lion's Club Board meeting. Mr. Gargaro had gone to the regular Lion's Club
meeting and had indicated they were still interested in the hardware building.
Mr. Gargaro was going to discuss this with the Board and come back to the HRA
Frith a proposal on the lease of the hardware building. There was also discussion
of the lions constructing a new building, not necessarily in the Center City
area, but in one of the tax increment districts - -North Area or Moore Lake Area,
He did not know whether that cost would be beneficial to the Lions as compared
to a lease arrangement on the hardware building and ungrading the facility
that they may only have for a short period of time.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 10, 1983 PAGE 4
Mr. Gargaro stated that in talking to the Board and some of the general
membership, they felt they do have some interest in acquiring something
for their club to have as a meeting room and rental generating some income
to the Lions. The only thing they ascertained was they felt they would
need some help in the renovation of the building based on the face that it
is not up to code as it exists for the purpose needed by the Lions, and the
cost would be so extreme for their Club to do it, it might be almost
impossible. Based on the terms of the lease they could negotiate, the
Club did not feel they would care to put as much money into the building
without having a lengthier commitment than three years.
Mr. Conners asked what would be required to upgrade the building.
Mr. Gargaro stated the primary expense was the sprinkler system, which is
required by code because of the meeting capabilities of the building. A
rough estimate of a sprinkler system is $12- 15,000 - -about 40 -50% of their
total expense. Also needed was a new floor, some ceiling work, partitions,
two extra escape doors, and restroom facilities.
Mr. Conners asked if anything had been discussed about rental rates.
Mr. Boardman stated they have talked about the possibility of $3 /sq. ft.
There is about 12,000 sq. ft. so it would be about $36,000 /yr or $3,000 /mo.
That is still open for negotiation. Rather than the possibility of the HRA
sharing in the cost of upgrading the facility, he would rather see a reduced
rental rate and allow the Lions to do the work and bear the cost of upgrading
the building. Another thing that has been discussed is a graduated increase
starting from very little the first year, more the second year, to a higher
value by the third year, allowing the Lions to get in with le S lease cost
to them. Mr. Gargaro had indicated that the $3.00 would be �iscussed
andthey would come back with a counter offer.
Mr. Conners stated he thought it was difficult at this point for the HRA to make
any divisions without a firm proposal from the Lions Club. He thought represent-
atives from the Lions Club should get together with Mr. Boardman and talk about
some specifics. He stated the problem on the timing is that there is a plan,
and the HRA does intend to redevelop that area. It would seem more realistic
that the hardware building is going to have to be included in the overll project.
So, from the HRA's point of view, if they had a 5 -10 yr. lease with the Lions Club,
it could hold the total redevelopment of that area. The HRA did recognize the
great community ettort put forth by the Lions Club and the HRA would like to
try and work something out with the Lions. The building is sitting vacant,
which doesn't do anybody any good. If there is any way it can be used, it
should be in use. He would think something equitable could be worked out
to make it feasible to the Lions.
Mr. Boardman stated he needed a proposal from the Lions Club telling what
they need as far as rent and what it is going to cost and what they need to
break even or make a profit.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 10, 1983 PAGE 5
Mr. Gargaro stated he has been unsuccessful in getting this kind of informa-
tion from the membership. He stated the input he has gotten from most of
the members is they feel three years is not long enough.
Mr. Prieditis stated the Lions Club in the hardware building could even become
a part of the total redevelopment, but that is something they do not know at
this time.
Mr. Inman stated that in order for them to really negotiate with the Lions
Club, they are going to need to know what it is going to cost the Lions. If
they could have some parameters on what the Lions are looking for, it would
be very helpful.
Mr. Gargaro stated he did not think $3 /sq. ft. would fly. Obviously, they
would also look for some relief from their contribution to the City (they are
presently giving 8 %) because of the capital expense they would have to expend.
Mr. Inman stated ore of the proposals discussed was a minimum square foot rent
with some sort of factor on the Lion's income. If they knew they had a
certain income, they might not be so nervous. He asked the HRA if they had
any concern about a 3 -year minimum rental; and if the HRA had to remove the
Lions before that time, there would be some type of buy -out on the investment
they have made.
Mr. Comers stated it was his personal opinion that something like that could
be feasible. The HRA would like to work something out with the Lions. He
thought Staff should be able to put together a couple of different proposals
for the Lions to consider.
Mr. Haggerty stated what he would do is get the exact rental rate that the
Lions would have to be paying in the new facility at Skywood. Then the Lions
can use that figure as a benchmark in working with the HRA.
Mr. Boardman stated that would be helfpul. They need some point at which they
can negotiate with the Lions in order to try to work out some compromise.
Mr. Prairie stated Staff should try to have that information by the next
meeting.
Further discussion on this item was continued until the next meeting.
i
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 10, 1983 PAGE 6
3. TAX INCREMENT PLAN
Mr. Boardman stated that as noted in his memo #83 -86, he had anticipated
some modifications in the figures in the plan. The amended copy had been
received in the mail that day. He stated Jim Casserly was at the meeting
for any discussion on the tax increment financing district. He stated the
tax increment district does include both the property where Johnson Prtnting
will be located and the Skywood Mall.
Mr. Boardman stated one of the things looked at by Staff with O'Conner
and Hannon is giving the HRA the maximum amount
of flexibility within the documents so they can take the necessary actions
needed without necessarily having to go back over and over again and amending
the plan with the public hearing process. For this reason, they set it up
with dollar amounts in the plan for the maximum capture of increments on
those proposals.
Mr. Boardman stated that also included in the agenda packet was an "Action
Alert" regarding "Industrial Development Bond Authority,Attacked in Congress ".
They are looking at major changes in IDB legislate,, -,n it the next few years.
That points out how important a reserve system is to the City of Fridley
staying competitive with development.
Mr. Comers asked Mr. Casserly to go through the Tax Increment Financing Plan
and indicate the changes that were made. He stated that from now on, it
would be very helpful to have any changes to documents marked in some way so
they can be easily picked out.
Mr. Casserly stated this plan allows for maximum alternatives. The specific
amounts right now they have agreed to is $30.000. The second amount that has
been contemplated in some time frame would be how to deal with traffic or the
potential landscaping problem with the neighbors. The third problem is how
does any municipality or public entity fund a reserve to facilitate future
growth and development? The third part of this is something that is still
2 -3 years off, and all this does is provide a vehicle to help develop that
reserve funding system. There are natural limitations built into the statute
that says if you do not use the reserve fund system, you cannot keep on
collecting increments for a pool, and those increments will be shut off.
These are referenced by statute.
Mr. Casserly stated this plan is really a planning tool. The kind of district
they are proposing at this time is not a redevelopment district. It only
qualifies as an economic development district with a maximum length of 10 yrs.
with 8 yrs. of increments. This is not a 25 -year district, and he would
encourage the City to do the districts on a parcel -by- parcel basis and keep
them as short as possible.
Mr. Inman stated that regarding the legislation on IDB authority, it was
Staff's recommendation to leave it as is.
HOUSING & REDEVELOPMENT AUTHORITY MEETING NOVEMBER 10 1983 PAGE 7
Mr. Boardman stated he is looking for approval of Resolution No. HRA -17 -1983,
"A Resolution Establishing Tax Increment District No. 4 within Redevelopment
Project No. 1 and Approving and Adopting a Proposed Tax Increment Financing
Plan Thereof ". He stated that in that resolution, they are requesting that
the plan be sent to the County, school districts, and to the City Council
requesting the City Council to hold a public hearing.
MOTION by Mr. Prieditis, seconded by Ms. Svendsen, to adopt Resolution
No. H -17 -1983.
Upon a voice vote, all voting aye, Chairperson Commers declared the motion
carried unanimously.
Mr. Casserly stated that a municipality such as Fridley really is adversely
impacted by the legislation pending before Congress. Fridley would be limited
under the formula to $41-2 million of tax increment financing. By the end of
this year, the City of Fridley will have closed some $142 million, assuming
they have no more requests proposed before the end of the year. Actual bond
issues authorized and closed will exceed at least three times the amount that
is in the congressional legislation. For cities that are aggressively pursuing
development, these are the ones that will be the most severely impacted.
Mr. Commers stated maybe some Staff member should be directed to write a
letter to their state representatives and state senators and perhaps attend
some of the meetings.
Mr. Boardman stated that right now he is on the NAHRO Legislative Committee
working with Minneapolis, St. Paul, Duluth, and a lot of other people trying
to push legislation, and they are working through Senator Durenberger's office.
They are very concerned about the IDB legislation and are working closely
with the representatives to get it either stopped, changed, or modified.
4. FINANCIAL REPORT:
Mr. Commers stated that as he understood it, there have been CDBG monies
granted to Anoka County, and those funds are controlled by the City Council.
He asked if there were any plans or requests for the use of any CDBG monies
regarding any development.
Mr. Boardman stated the 1984 allocations will be coming before the City
Council next month and they are looking at a about $160,000 worth of allocation.
There has been no discussion on the allocation at this time. The City Council
is the final body who will be making the determination as to how they want
to spend those monies. It is clearly in the realm of the HRA to utilize
those funds in the sense that those funds would be used for economic develop-
ment for the elimination of slum and blight. Any of the redevelopment districts
that are set up and the tax increment districts that are set up, other than
economic deveopment districts, can be classified as slum and blighted areas.
HOUSING & REDEVELOPMENT AUTHORITY MEETING NOVEMBER 10 1983 PAGE 8
Mr. Commers asked if the HRA should be looking at making a request for CDBG
funds. Are there any rehab projects?
Mr. Boardman stated the only rehab project they really have is the Holly
Center. They have been doing single family rehabs through the past year.
The year before they allocated about $150,000 into rehab. All single family
rehab is contracted out to the Anoka County CAP Agency. The City Council
have in the past allocated monies for weatherization for the elderly,
handicapped retrofit for single family homes, and direct rehab. Also, Anoka
County uses some of the block grant funds for county -wide rehab. The City
gets some of that rehab dollar also. As far as the HRA operating any single
family rehab, he would recommend against it.
Mr. Boardman stated that last year, the City Council allocated some funds for
human service activities. They also allocated funds and will be reallocating
those funds in December to a LAWCON match for the removal of some homes in
the North District. The City Council has looked at allocating some funds for
the removal of handicapped barriers in public facilities and actual construc-
tion will be started in the spring in the park facilities and in City Hall.
They also looked at the possibility of $7,000 being allocated for a drainage
study in the North Tax Increment District. If the City Council does not
reallocate the funds to the LAWCON match, the study will be done next spring.
Mr. Commers asked if it would be possible for the HRA to receive and review
the proposals being made for the use of 1984 CDBG funds.
Mr. Boardman stated he would get this information for the HRA.
Mr. Inman stated the financial report included all the activities year -to -date
and was very detailed. He stated the report had just been completed and he
had not had time to review it. He stated if the HRA members would like to
see cash flow analysis, he would get that for them also.
Mr. Commers stated the cash flow analysis would be helpful in tying it in
with the financial statements.
Mr. Inman stated he would mail that to the members before the next meeting.
Mr. Commers stated he would like to review the financial statement and discuss
it at the next meeting.
5. CHECK REGISTER:
MOTION by Mr. Prairie, seconded by Mr. Prieditis, to approve the check register
as presented.
Upon a voice vote, all voting aye, Chairperson Commers declared the motion
carried unanimously.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 10, 1983 PAGE 9
6. OTHER BUSINESS:
A. HRA Report
Mr. Boardman stated the HRA's first report was printed and mailed out
in October.
Mr. Commers stated he thought the report was very well done.
Mr. Commers stated he thought it was the understanding of the HRA that
it would be good to have an annual report. He thought it was important
because of the size of the projects and the things they are doing, the
HRA really has an obligation to keep the citizens informed.
Mr. Boardman stated the HRA may want to consider a different time than
October to issue the next report.
Mr.Commers stated he would like to have the report come out after their
October meeting when they make the decision of what they are going to be
doing.
The HRA concurred they would like to publish an annual report.
b. Proposed Letter to Tenants of Shopping Center
Mr. Boardman stated the City has been contacted by Paul Klaverkamp,
the attorney for Dr. Suh, who owns the property where the old National
Tea Building was. Mr. Klaverkamp is asking the City to assist Dr. Suh in
whatever manner is possible to help Dr. Suh with his leasing problems.
Dr. Sih has "d major balloon payment in February..
One request was for the HRA to send a letter to the tenants in the building
so that Dr. Sub would have this letter to show prospective tenants to help
him lease the building.
Mr. Boardman stated they asked Mr. Klaverkamp to draft a letter of what
he would like the City to do. Mr. Newman then redrafted a letter
similar to Mr. Klaverkamp's. He stated Staff would like some direction
from the HRA in this - situation.
It is quite clear in talking to Mr. Herrick and Mr. Newman that Dr. Suh
would probably have no legal action against the HRA. Because he is in the
redevelopment district, it does not necessarily force the HRA to consider
any action. However, Mr. Boardman stated he knew the HRA has indicated
in the past that if it was at all possible to help, they 6hould look at
whatever means they have available to help.
Mr. Commers stated he thought writing the letter was fine.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 10, 1983 PAGE 10
Mr. Boardman stated Dr. Suh has a- balloon payment in February. All the
leases in the center are coming up for renewal, and not one of the tenants
has shown any interest in renewing. That is going to cause Dr. Suh a
major problem when he tries to look for financing on the balloon payment.
One other consideration Mr. Klaverkamp is requesting is that the City
consider some kind of assistance to Dr. Suh in getting refinancing. He
stated Staff has indicated to Mr. Klaverkamp that the City would probably
not have any problem with writing the letter, and they will work with
him, if at all possible, to help in the financing arrangements up to the
point where they don't necessarily want to commit the HRA to any action
for acquisition.
Mr. Boardman stated the HRA is in a very strong position if they want to
work with some kind of equity, not necessarily putting its cash money into
it, but backing any kind-of bank loan, or whatever, on a contract basis.
Mr. Inman stated that Mr. Klaverkamp is claiming that the result of the
lack of rents is due to the HRA. He did not feel that was due to the HRA,
the situation existed, and that is why the HRA is in that area. He con-
curred that the HRA was on very firm legal ground. He would recommend
the HRA not pay anything, but merely underwrite the loan with a bank.
Mr. Commers requested Staff to contact Mr. Klaverkamp telling him that
the HRA has looked at other alternatives and is recommending no action
for assistance at this time.
Chairperson Comers stated it was the concensus of the HRA to authorize
legal counsel to send the letter, as drafted, to the tenants of the shopping
center.
c. Von Klug & Associates
Mr. Boardman stated the HRA had received a copy of a letter from Von
Klug & Associates. All this is information to the HRA. At the last
meeting, the HRA approved a $12,500 settlement to Von Klug & Associates.
Von Klug is reuqesting a payment of $3,000 against that balance. So far,
the HRA has paid Von Klug & Associates $6,000. The only project left is
the Ryan property and it should be done within a couple of weeks. He
would like the HRA to authorize a payment to Von Klug & Associates in the
amount of $3,000.
MOTION by Mr. Prairie, seconded by Ms. Svendsen, to authorize a payment
to Tlon Klug & Associates in the amount of $3,000 under the $12,500
settlement previously approved.
Upon a voice vote, all voting aye, Chairperson Comers declared the
motion carried unanimously.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 10, 1983 PAGE 11
ADJOURNMENT:
Chairperson Commers declared the November 10, 1983, Housing & Redevelopment
Authority meeting adjourned at 10:15 p.m.
Respectfully su fitted,
A -xl�
LYnIhe Saa
Recording Secretary
I
FROM EXECUTIVE DIRECTOR
MEMO NO. 83 -88
DATE December 2, 1983
TO
ACTION
INFO.
SUBJECT
Suggested Amendments to Redevelopment
Project Area
Housing & Redevelopment Authority
X
Please see attached memo from Nasim Qureshi, City Manager, considering the City
Councilsuggestion to expand the Redevelopment Project Area #1 as outlined on
the included map. All of these properties are presently vacant properties and
only one is not located in Shool District 16. By amending the district, the
HRA is not capturing any increment, but merely allowing itself the flexibility
to assist in development. Any additional tax increment districts would require
additional public hearings.
In any case we have had a request for assistance on Lot 1, Block 2, East Ranch
Estates Second Addition from Mr. Bob Schroer (property owner) and Mr. Jerry
Pasche (Developer). We have reached a tentative agreement for your consideration
in item #2 of the agenda and if acceptable would have to amend the Redevelopment
Project Area #1.
I am including in your folder the necessary documents that are needed for your
action if this amendment is something you want to consider.
JLB /kh
MEMORANDUM
1A
CITY OF FRIOLEY OFFICE OF THE CITY MANAGER
O� 6431 UNIVERSrrY AVE. NE. NASIM M. GURESHI
FRIDLEY, MN. 65438 1618) S"-3450
December 2, 1983
MEMO TO: JERROLD BOARDMAN, EXECUTIVE DIRECTOR, FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY
FROM: CITY MANAGER
SUBJECT: POSSIBLE INCLUSION OF LOT 1, BLOCK 2, EAST RANCE ESTATES
SECOND ADDITION AND OTHER EMPTY COMMERCIAL AND INDUSTRIAL
PROPERTIES NORTH OF RICE CREEK IN THE DEVELOPMENT DISTRICT
Mr. Bob Schroer, owner of Lot 1, Block 2, East Ranch Estates, which is
in the southwest corner of University and 79th Avenue, approached the
Councilman of the Ward, Ed Hamernik, to seek some assistance in develop-
ment of the property. Councilman Hamernik, because of some serious soil
problems with this property making it difficult to develop, suggested
that some assistance be given by the Housing and Redevelopment Authority
to this property. There was consensus on this issue by the City Council.
There was also discussion that the vacant commercial /industrial property
north of Rice Creek be included in the development district.
Please pass these suggestions on to the Housing and Redevelopment Authority
for their consideration.
Thank you for your assistance.
NMQ /ms
CC: City Council
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RE- - LUrION N0. BRA 18 -1983
A RESCLU 'ION AHWII1G REDEVEI,OPMM PROJECT N0. 1 AMID
MmIFYM BY ENLARGEMENT REDEVELDFMEZU PRWECP ND. 1 AND
WE REDEVELOFMW PLAN REI ATII , THERETO PUr43lAMTP TO THE
PROVISIONS OF MINNS= STAMM, SECTIONS 462.411 TO
462.716, II+IQ,OSIVE.
BE IT RESOLVED by the Commissioners (the "Canmissioners ") of the Housing and
Redevelopment Authority (the "Authority ") in and for the City of Fridley,
Minnesota (the "City ") , as follows:
1. It has been proposed that the Authority amend Redevelopment Project No.
1 (the "Redevelopment Project ") and modify by enlargement Redevelopment
Project No. 1 and the Redevelopment Plan (the "Redevelopment Plan ") relating
thereto pursuant to and in accordance with Minnesota Statutes, Sections
462.411 to 462.716, inclusive.
2. This Authority has caused to be prepared and has investigated the facts
with respect thereto, a proposed modification by enlargement of the
Redevelopment Plan for the Redevelopment Project, defining more precisely
the property to be added to the Redevelopment Project.
3. The Authority hereby determines that it is necessary and in the best
interest of the City at this time to amend by enlargement Redevelopment
Project No. 1 and the Redevelopment Plan relating thereto and is hereby
approved subject to Planning Commission review and City Council approval as
herein after provided.
4. The Authority hereby requests the City Council to call a public hearing
to consider the establishment of the District and the approval and adoption
of the Plan, to cause notice of said public hearing to be given as required
by law, and to take such other actions as may be required by Minnesota
Statutes, Section 462.521. The Authority further requests that the City
Council direct the Planning Commission of the City to consider and comment
on whether the District and Plan are in accordance with the Comprehensive
Plan of the City, prior to the public hearing to be called by the City
Council, The Executive Director of the Authority is hereby directed to
submit a copy of the District and Plan to the City Council for its approval.
5. If and when approved by the City Council, the Authority shall cause the
District and Plan to be filed with the Minnesota Energy and Economic
Development Authority and placed on file in the office of the
Clerk- Treasurer for the City of Fridley.
PASSED AMID ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF
FRIDLEY THIS DAY OF , 1983.
0 r " ffil R 1011AU211
ATTEST;
EXECUTIVE DIREC'InR
3/0/24/15
FROM EXECUTIVE DIRECTOR
MEMO NO. 83-89
DATE December 2 1983
TO
ACTION
INFO.
SUBJECT
Contract for Private Development and
Tax Increment Plan #5
Housing & Redevelopment Authori t
We have met with Bob Schroer and Mr. Jerry Paschke about development on the property
located at the southwest corner of 79th Avenue and University Avenue N.E. We have
reached a tentative agreement on assistance based on inclusion into the Redevelopment
Project Area, and the adoption of Tax Increment Financing District #5.
I have included in your folder, the "Contract for Private Development" which lays
out the terms and conditions of that assistance. Please note that the assistance
for the development has been negotiated at $30,000 which is less than 50% of the
cost of soil correction on the property. It is our intent that this assistance
would be given as a reduction on the reconveyance of the property and would be
concluded only with the issuance of the Certificate of Completion within 12 months.
JLB /de
COON 00405
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RF�9Q.IrrIaN ND. HM 20-1983
• ate• ' •,•
AIN ►: �.• ►:�' :r/ rM1 '
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IT IS HEREBY RESOLVED by the Board of Commissioners (the "Board ") of the
Housing and Redevelopment Authority in and for the City of Fridley,
Minnesota (the "Authority "), as follows:
1. Recitals.
A. The Authority has all the powers of a housing and redevelopment
authority under the Municipal Housing and Redevelopment Act, Minnesota
Statutes, Sections 462.411 to 461.716, inclusive, as amended (the
"Act")
B. In furtherance of the objectives of the Act, the Authority has
undertaken a program to acquire, or otherwise promote development of,
open or undeveloped land and in this connection is engaged in carrying
out the redevelopment project known as the Authority's Redevelopment
Project No. 1 (the "Redevelopment Project ") in an area (the "Project
Area ") located in the City.
C. There has been prepared and approved by the Authority and the City
Council of the City, pursuant to the Act, a Modified Redevelopment Plan
for the Redevelopment Project (the "Redevelopment Plan ").
D. The acquisition and the subsequent sale or lease of the potential
development property to private developers for commercial development
are stated objectives of the Redevelopment Plan.
E. In order to achieve the objectives of the Redevelopment Plan and
particularly to make the land in the Project Area available for
development by private enterprise in conformance with the Redevelopment
Plan, the Authority has determined to provide substantial aid and
assistance in connection with the Redevelopment Plan through the
financing of certain of the public costs of development in* the Project
Area.
F. Paco Inc. a Minnesota corporation, , has presented the Authority
with a proposal for the construction within the Project Area of a
commercial facility, and a certain Contract for Private Development
between the Authority and Paco, Inc. (the "Development Contract "),
stating the terms and conditions of such development and the Authority's
responsibilities respecting the assistance thereof, has been presented
to the Board for its consideration.
Page 2— Resolution No. HRA 20 -1983
G. The Development Contract provides for the purchase and reconveyance
by the Authority of the property on which the Paco, Inc. project is
proposed to be constructed, and in compliance with Minnesota Statutes,
Section 462.525, Subdivision 2, following published notice thereof,
2. The Board hereby approves the Contract for Private Development
substantially in the form attached hereto as Exhibit A, and hereby
authorizes the Chairman and Executive Director to execute the same on behalf
of the Authority, with such additions and modifications as those officers
may deem necessary.
3. Upon execution and delivery of the Contract for Private Development, the
officers and employees of the Authority are hereby authorized and directed
to take or cause to be taken such actions as may be necessary on behalf of
the Authority to implement such Agreement.
PASSED AMID ADOPTED BY THE H(XJSING AND REDEVEOPM IT AUTHORITY OF THE CITY OF
FRIDLEY THIS DAY OF , 1983.
CHAIRMAN
HOUSING AND REDEVELOPfMiT AUTHORITY
ATTEST;
2E
y
3
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE
CITY OF FRIDLEY
COUNTY OF ANOKA
STATE OF MINNESOTA
RESOLUTION NO. NRA-19 -83
A RESOLUTION ESTABLISHING TAX INCREMENT DISTRICT
NO. 5 WITHIN REDEVELOPMENT PROJECT NO. 1 AND
APPROVING AND ADOPTING A PROPOSED TAX INCRF.MEMT
FINANCING PLAN THEREFOR.
IT IS HEREBY RESOLVED by the Board of Commissioners of
the Housing and Redevelopment Authority in and for the City
_ of Fridley, Minnesota (the 'Authority"), as follows:
1. It has been proposed that the Authority establish
Tax Increment District No. 5 (the "District ") within its
Redevelopment Project No. 1 and adopt a proposed Tax Incre-
ment Financing Plan (the "Plan ") relating thereto pursuant
Theta proposed teDist District nand Plan lareo inclu
attached to
si ve. . and
sa
Made part of this resolution.
2. The Authority has to the establishment of gtheelaw to be performed prior
Dis-
trict and the adoption of the Plan.
3. The Authority hereby determines that it is neces-
sary and in the best interest of the City at this time to
that the City Council and
holdp avepublic Plan and
hearingtorelating
that t y
thereto.
4. Subject to the approval of the District by the City
Council, the rDistrict included hereby then District by Author-
ity. be the
ity. The p p Y
property described in the Plan.
S. The Plan is hereby approved and adopted by the
Authority, subject to City Council approval, as hereinafter
provided.
6. The Authority hereby requests the City Council to
call a public hearing to consider the establishment of the
District and the approval and adoption of the Plan, to cause
notice of said public hearing to be given as required by
law, and to take such other actions as may be required by
Minnesota Statutes, Section 273.74, Subdivision 3.
The Executive Director of
the Authority is hereby directed to submit a ropy
District and Plan to the City Council for its app
7. If and when approved by the City Council, the
Authority shall cause the District and Plan to be filed with
the Minnesota Energy and Economic Development Authority.
9. Upon approval of the District and Plan by the City,
the Authority shall request the County Auditor of Anoka
County to certify the. original assessed value of all real
property within the District and Plan, and each year here-
after to certify the amount by which the assessed value has
increased or decreased from said original increase or value, to
certify the proportion which any such
bears to the total assessed value for the real property in
the District for that year, and to remit to the Authority In the
a that each year all captured assessed# all pursuant to Minnesota
District on the cap
Statutes, Section 273.76.
pp�ID A•� ADOPT ID BY THE HWSDC 1D P WEL OptO� AtT1f10RITY OF Z�IE CITY OF
F=LEY TH IS __ DAY OF .r._.
Qihm ml
HWSM AZ) PEDn=P;mT AmORITY
A7=r.& i
3A
4
FROM WWIWM"TIVE OICIP07130
MEMO NO. 83 -90
DATE December 2, 1983
TO
ACTION
INFO.
SUBJECT
Hardware Building
Housing & Redevelopment Authoriy
X
Mr. John Gargao contacted me following their November 22, 1983 Lion's Club meeting
and indicated that the membership has discussed the hardware lease possibility and
the submission of a proposal to the HRA; and had voted not to pursue any use of that
building for their facility.
In the meantime, the City Liquor Manager has expressed an interest to use the
building for a warehouse liquor facility. Sid Inman will be at the meeting to
discuss this proposal with the HRA.
JLB /de
5
FROM WW =n"TIVE IMI12E0TO0
MEMO NO. 89-91
DATE December 2, , 1983
TO
ACTION
INFO.
SUBJECT
Listing Agreement for Lifestyle Music and
Madsen Offices
Housing & Redevelopment Authorit
X
Please see attached listing agreements submitted to us by Mr. Gerald E. Messler.
Mr. Messler was one of three realtors that I contacted to do the leasing for the
HRA. The other two were not interested in listing the properties.
I will be reviewing these agreements with Dave Newman and will had additional
information for the December 8, 1983 meeting.
JLB /de
5A [g
r.Ea;tpr•
MLS
OHOME OFFICE: 8085 WAYZATA BLVD., MINNEAPOLIS,
BROS. INC. REALTORS MINNESOTA 55426 • (612) 545 -1111
REAL ESTATE: RESIDENTIAL • COMMERCIAL INDUSTRIAL
PROPERTY MANAGEMENT • GENERAL INSURANCE
November 30, 1983
Mr. Jerrold Boardman
Fridley City Planner
6431 University Avenue N.E.
Fridley, Minnesota 55432
Dear Jerry:
I am writing to review our conversation concerning the two vacant
properties owned by the city.
It is difficult to locate tenants that are willing to locate in
a building for only one year. Their only incentive would be an
extremely attractive rate.
I have enclosed two contracts that have a fixed dollar fee. These
amounts will be paid only if we successfully lease the buildings.
Because I am the leasing agent for the building at 6440 University
N.E., I will have the greatest opportunity of anyone to locate
tenants for your properties. You will receive the full services
of the sixteen person commercial division of Thorpe Bros., Inc.
I will advertise the properties and immediately place them on the
Commercial /Industrial Multiple Listing Service which includes all
major brokers in the metropolitan area. If another broker leases
the property, I will share the commission with them.
We should plan on a three to six month period to lease the build-
ings. The lower the rate, the faster we can lease them.
We look forward to serving you.
Sincerely,
(Ierald E. Messler
Commercial- Industrial Division
GEM:glt
Enclosures (2)
10 OFFICES TO SERVE YOUR NEEDS!
Member of Local & National: Real Estate Boards, Building Owners & Managers, Institute of Real Estate Management.
COMMERCIAL - INDUSTRIAL 4D rs, M
EXCLUSIVE LISTING AGREEMENT M
REALTOR
1130 FORM APPROVED BY GREATER REALTOR" s 5B
MINNEAPOLIS AREA BOARD OF REALTOR
February. 1993
Date: November 30, 1983
IN CONSIDERATION OF the Agreement of Thorpe Bros .. Inc .
(hereinafter referred M as BROKER) to undertake to lease the premises hereinafter deecdbed.
City of Fridley
(hereinafter referred to as LESSOR) pants to BROKER for the period from the date hereof through and including
June 1, __ 10 84 the exclusive right to lease or contract to lease the property known as
370 Mississippi, Fridley, Minnesota
(hereinafter rderred to as the Property) for the sum of $8-940.00
per _—year upon the following terms One year lease, tenant to pay all utilities,
or on such other terms and conditions as may be consented to by LESSOR.
It is agreed that LESSOR shallpromRpoy�nis BROKER with complete information concerning any pawn who during the period
of this Agreement makes inquiry to &O the leasing of the Property.
NOTICE: THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT OF REAL
PROPERTY SHALL BE DETERMINED BETWEEN EACH INp3 IDU00 BROKER AND ITS CLIENT.
It is farther agreed that LESSOR sbal pay BROKER a brokerage W of 33
which fee shall be doe and payable in full upon the occurrence of any of the following conditions:
1. The lease or contract for lease of the Property during the period of this Agreement by BROKER or any other person including but
not limited to LESSOR. or any other agent or broker not a party to this Agreement, in accordance with the price. or terms as sat
forth herein. or otherwise consented to by LESSOR: or
!. The above- described Property is leased within 180 days after the expiration date of this Listing Agreement to any prospect
with whom BROKER has negotiated or to whom BROKER has exhibited mid Property during the period of this Agreement and whose
name was disclosed to LESSOR in writing by BROKER not later than seventy -two (7t?) hours after the expiration of the Agreement.
S. The lease or contract for lease of the Property within 180 days after the expiration of this Agreement to any person who
during the period of this Agreement has made inquiry to LESSOR regarding the lease of the Property.
If a lease entered into by LESSOR and a LESSEE procured by BROKER grants to the LESSEE an option to purchase the LESSORS
interact in the Property, and said option is exercised at any time by the LESSEE. LESSOR agrees to pay BROKER, at the time of
dosing of the purchase, an additional fee equal to 7% j of the purchase price lees the unearned portion of the he paid
under the tams of this Agrwm=L
U a lease entered into by LESSOR and a LESSEE procured by BROKER grants to the LESSEE an option or socoeasive options to
renew or extend the term thereof, upon the exercise of said option and each successive option the LESSOR agrees to pay BROKER
a tee egnal to - -- percent of the rent reserved for an& period of axtension or renewal which fee shall be due and payable in
full at the time of sueh exercise.
LESSOR certifies that as of the date of execution of this Agreement. so motives of building. health or Are code violations, nor notice of
condo io pertaining to the above-described Property have been received from any municipality or other governmental agency, axeept v
noted.
None
LESSOR further agrees to promptly notify BROKER of any notion pertaining to the above-dnen'bed Property which are b=Uhw
received during the tam of this Agreement.
It is further agreed that LESSOR shall permit BROKER to erect a "For LEASE" sign on the property amd to remove AS othar 'for
LEASE' signs from the Property during the period of this Agreement
IS-S& R
Qdareas
Tele"kw
Thrne Bros— Inc
BROKER
SAR.E3 IATE Gerald b. Messier
8085 Wayzata Blvd— , Irtn] s _ , MN
"dress
Telephone
(612) S4S -1111
Revised 2 -g3 CIMLS e112
COMMERCIAL - INDUSTRIAL �M >ZAM
EXCLUSIVE LISTING AGREEMENT L 5C
REALTOR ,FORM APPROVED BY GREATER MI \%EAPOLS AREA BOARD OF REALTORS* Cie
February. 1983
Date: November 30, 1983
IN CONSIDERATION OF the Agreement of 'Thorpe Bros . , Inc.
(hereinafter referred to as BROKER) to undertake to lease the premises hereinafter described,
_ City of Fridley
(haeb after referred to as LESSOR) grants to BROKER for the period from the date hereof through and including
June 1. 10 84 exclusive right to lease or contract to lease the property known as
6441 University Avenue N-F__ Fridley Minnesota
(hereinafter referred to err the Property) for the sum of $4,275.00
y Fear upon = the -following terms One ySar lease tenant to pay all utilities.
or on such other terms and conditions as may be consented to by LESSOR.
It is agresd that LESSOR shall promptly furnish BROKER with complete information concerning any person who during the Period
of this Agreement makes inquiry to LESSOR regarding the leasing of the P40p1rty.
NOTICE: THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT OF REAL
PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT.
It is further agreed that LESSOR shall pay BROKER a brokerage to of $7 Sun nn
which fie shall be doe and payable in full Upon the occurrence of any of the to0owia9 oosditiom
1. The lease or contract for lease of the Property during the period of this Agreement by BROKER or any other person including but
not limited to LESSOR. or any other &Beat or broker not a party to this Agreement, in accordance with the price, or terms as at
forth herein, or otherwise consented to by LESSOR: or
!. The above - described Property is leased within 180 days after the expiration date of this Listing Agreement to any prospect
with whom BROKER has negotiated or to whom BROKER has exhibited said Property during the period of this Agreement and whose
same was disclosed to LESSOR in writing by BROKER not later than seventy -two (72) hours after the expiration of the Agreement.
S. The lease or contract for lease of the Property within 180 days after the expiration of this Agreement to any person who
during the period of this Agreement has made inquiry to LESSOR regarding the lease of the Property.
If a )ease entered into by LESSOR and a LESSEE procured by BROKER grants to the LESSEE an option to purchase the LEMOR11
interest in the Property, and said option is exercised at any time by the LESSEE. LESSOR agrees to pay BROKER, at the time of
closing of the purchase, an additional fee equal to 7% 1. wt of the purchase price less the unearned portion of the fa paid
soda the terms of this Agreement
If a lease entered into by LESSOR and a LESSEE procured by BROKER grants to the LESSEE an option or s000e&rivc opLoas eo
renew or extend the term thereof, upon the exercise of said option and each successive option the LESSOR agrees to pay BBOX=
a fee egnal to --- peseent of the rent reserved for each period of extension or renewal which fee shall be doe and payable is
full at the time of such excrete
LESSOR osstilles that as of the date of e:&ontion of this Agreement. en notices of building, bealth or An code violations, nor notice of
condemnation pertaining to the above•dexribed Property have bees, received from any municipality or other governmentAl agency, except
corers w
Nome
UMOR further agree to promptly notify BROKER of any notices pertaining to the above-deseribed Property which are hereafter
reaivd during the tam of this Agreement
It is further agreed that LESSOR shall permit BROKER to erect a 'For LEASE" sign oa the property and to remove d other "let
LEASE- signs from the Property during the period of this Agreement
LEMR
Address
TeMNse
Thnrne Rrng_e Inc_
BRO
SALES IATE Gerald E. Mess er
8085 Wayzata Blvd., Mpls., MN SS426
Address
Tdaprsss (612) S4S -1111
Revised 2-83 CIMLS *112
6
FROM PWIXn"TIVE InIQECTInQ
MEMO NO.83 -92
DATE December 2, 1983
TO
ACTION
INFO.
SUBJECT
Settlement of Condemnation of Dr.
Ryan's Automotive Clinic
Housing & Redevelopment Authorit
X
I have been contacted by Mr. Mark Haggerty, attorney for Mr. Ryan, indicating
that they will not appeal the Commission Finding of $177,300 and settle
for that amount as per the attached report.
We will need authorization of payment from the HRA for $40,183 since the
$137,117 had been previously paid to Dr. Ryan with the property closing.
JLB /de
STATE OF MINNESOTA
COUNTY OF ANOKA
Fridley Housing and Redevelopment
Authority, a Minnesota Public
Corporation,
Petitioner,
and
Thomas F. and Mary Jo Ryan,
husband and wife; Northwestern
National Bank, Continental Oil
Company and All Unknown
Persons Claiming Any Rig ht, Title, or
Interest in the Property
Described Herein,
Respondents.
6A
DISTRICT COURT
TENTH JUDICIAL DISTRICT
.0.
REPORT OF COMMISSIONERS
FILE N0. B -52402
TO THE DISTRICT COURT OF ANOKA, MINNESOTA:
The undersigned Commissioners appointed by the District
Court of Anoka County by Order dated May 31, 1983, to
ascertain damages suffered by the owners of the real property
described in the petition heretofore filed in the above
entitled proceedings do hereby report that, having first
duly qualified as required by law, viewed the premises
hereinafter described, and heard the testimony offered on
behalf of the interested parties, hereby assess and award
damages for the taking herein to each person claiming any
interest therein as follows:
.. V.w
V�
• W�
I
DESCRIPTION OF LAND
Lots 12 -14 inclusive. Block 4.
Rees Addition to Fridley park. Anoka County
OWNER AMOUNT OF AWARD
Thomas F. and Mary Jo Ryan .
Personal Property: $ X00,00
Land: S 3_ GOS -Ov
Buildins: S�9 2' :ka0. 00
Appraisal Fees Awarded $ __.gCG•410
7o to / — /771 300. 00
We further report that in the performance of our duties
as Commissioners we were occupied SO days, and
0:;lrJr**' miles.
Alop Dated at Fridley, Minnesota, this a day of �Y1'Ifirl��•�
1983.
Curtis A. Larson
VM
liver Erickson
I L
SEP 8 1933
Jar* F. Mor.►ow
CLCRK Or O'sTnlm MUNT
ANOKA CouNry. . gCWtL
e
°"v** Q YJOR