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HRA 02/17/1983 - 29377• CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING FEBRUARY 17, 1983 CALL TO ORDER: Chairperson Commers called the February 17, 1983, Housing & Redevelopment Authority meeting to order at 7:45 p.m. ROLL CALL: Members Present: Larry Commers, Elmars Prieditis, Carolyn Svendsen Members Absent: Duane Prairie, Walter Rasmussen Others Present: Jerrold Boardman, City Planner Ed Hamernik, Councilman Craig Ekberg Mrs. Erland Ekberg, Jr., 2140 Squire Trail, Golden Valley (See attached list) • APPROVAL OF JANUARY 13, 1983; HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO APPROVE THE JAN. 13, 1983, HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. I. MOORE LAKE DISTRICT A. Condo Project (Hearing for HRA Consideration) (Memo #83 -11 from Executive Director) Mr. Commers asked Mr. Boardman to give a brief update of what has taken place since the public hearing on Dec. 9, 1982. He would also like Mr. Boardman to give a brief summary of the project itself. Mr. Boardman indicated the tax increment district on the map. He stated several things were looked at in the establishment of a tax increment district. First of all, there are extreme traffic problems at the inter- section of Old Central and Highway 65, plus a great deal of traffic that is being generated along Old Central due to the connection with Highway 65 and the industries north of this area. With the tax increment district, the City is looking at the possibility of trying toodivert Old Central traffic to Highway 65 which would call for some intersection modifications. 0 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 17, 1983 PAGE 2 Mr. Boardman stated another thing that would have to be done in conjunc- tion with the development of the drive -in property would be the inter- section modification at Old Central and Highway 65 to create an easier flow of traffic up Old Central. Another reason for the establishment of the tax increment district is the drainage and clean -up of Moore Lake. The clean -up is very expensive. EPA monies have been put into it, but there also has to be some matching city monies. The reasoning behind a tax increment district is the development will pay for the tax improve- ments within the district. Mr. Boardman stated Mr. Erland Ekberg, who is the developer, made a proposal at the Dec. 9, 1982, HRA meeting, to put in two 12 -story condo- minium towers, four units per floor, approx. 1,500 sq. ft. per unit. The towers, in conjunction with the overall project, would be an approx. $15 million project. The proposed site Mr. Ekberg had selected was the site which included seven property owners, a vacant property, and part of a commercial property to the north. Mr. Boardman stated there was a lot of discussion at the Dec. 9 meeting. The suggestion was made at the meeting that a neighborhood committee be formed to sit down with the HRA and the developer to see if any com- promises could be made. Mr. Boardman stated that at the first meeting on Jan. 4 with the neighbor - hood, approximately 12 -13 people were in attendance. At the meeting, the people indicated that if the project was moved north of the property owners, at least the acquisition of the property would be feasible. How- ever, there were still questions about access and height of the towers. Mr. Boardman stated Mr. Ekberg did take a look at the recommendations the neighborhood committee suggested, looked at the soil problems that would -be entailed in moving the project to the north, and came back with a proposal that suggested leaving three houses, but still taking the Dan Nelson property and one other property to the north. Since this was not the suggested change made at the Jan. 4th meeting, it was necessary to go back to the neighborhood committee with this proposed change. That was done on Feb. 9. At that meeting, the committee was unwilling to look at the developer's change as a compromise and stated there was no com- promise if the project could not be moved north. Mr. Boardman stated he had a conversation with Mr. Ekberg that day, and Mr. Ekberg stated that with some assistance from the HRA for soil correc- tion and some slight modifications in the direction of the buildings, he felt he probably could move the project to the north. It would be north of the line the neighborhood committee suggested on Feb. 9, which is north of the Nelson's property; however, it would still take the vacant property and the property owned by Scott Kohanek. Mr. Ekberg still feels it is imperative to the project to have access onto Old Central. As far 0 as assistance from the HRA, that has not been discussed. 0 HOUSING & REDEVELOPMENT AUTHORITY'MEETING, FEBRUARY 17, 1983 PAGE 3 Mr. Scott Kohanek stated he is the property owner most affected, and he has not been notified about any meetings, other than the public hearing on Dec. 9. Mr. Boardman stated that because of an emergency, Mr. Ekberg could not be at the meeting; however, his wife and son were representing the project. Mr. Craig Ekberg stated he had met that day with his father who briefly went over the project. He stated it is basically as Mr. Boardman has outlined -- moving the towers to the north and shifting the direction of the towers approx. 150 to the south to get a view over the lake. Mr. Boardman stated there would have to be some further exploration of the soil in that area. They do have some soil borings in there, and he thought there would have to be some soil correction. He did not feel the soil correction would jeopardize the project or take all the tax incre- ment generated from the project. Mr. Commers stated it might be premature to decide on a right of develop- ment at this time, because they do not know all the facts with respect to assistance and soil correction. Was it possible the project might not be feasible? • Mr. Boardman stated it was possible, but he would doubt it with this kind of project. It is a $15 million project and will generate consider- able amount of tax increment. If the HRA does give a right of develop- ment, it should be a conditional right of development until these things could be brought back for approval by the HRA. Considerable work is going to have to be done before the HRA can give a formal right of development. Mr. Commers stated they would open the hearing up for comments from the audience. He stated he would like someone who was present at the Feb. 9 neighborhood meeting to present his /her understanding of what transpired with the developer. Ms. Jackie Lentz, 6053 Central Ave., stated Mr. Boardman had outlined the meeting very well. Besides the question of the properties being razed, there was still a lot of concern about the height of the buildings and the access onto Old Central. One thing that was mentioned to Mr. Boardman at one of the meetings was that, if indeed the proposal was moved to the north, then those people who would be subsequently affected should be notified. She did not know if that was done. Mr. Boardman stated the primary person who would be affected from the proposal being moved to the north was Max Saliterman and he has been contacted. The property to the east is Tom Brickner's property, and • Mr. Brickner has indicated his support of the project. 0 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING; FEBRUARY'17, 1983 PAGE 4 Ms. Lentz stated that, to her knowledge, Mr. Kohanek was not at either neighborhood meeting. How that had happened, she did not know. Mr. Dan Nelson stated he was the property owner of the site in question. He stated they have been discussing the pros and cons of this project since the Dec. 9th meeting. He stated City Staff keeps reviewing the tax structure, the dollars, etc., however, the citizens are not only looking at the tax structure, but what the pride of ownership, aesthetics, etc., mean to them. In order to get a handle on the tax dollar, he had taken it upon himself to get some facts and figures from City Hall. He would like to present these figures at this time. Mr.Nelson stated Fridley has a population of 30,000 people. In the 1983 city budget, it is going to cost $6,307,659 to run the city, and the cost to run the city per person is $210. The average number of persons per family in Fridley is 2.8 persons. Taking the population of 30,000 and dividing it by 2.8 persons per family, he came up with 10,714 taxable units. Mr. Nelson stated he was now going to talk about the $150,000 valuation which was the average cost of each condo unit. The homestead tax on $150,000 valuation is $3,000. Ninety -six units X $3,000 brings in a gross tax increase of $288,000. By having 96 units and 2.8 persons per unit, the population in Fridley will be increased by 268.8 persons. Taking that number and multiplying the cost per person of $210, it is going to cost the City $56,448 to govern the additional people living in the condominiums. Taking the gross tax and subtracting the cost of governing the people, he got an adjusted gain in the tax of only $231,552. Mr. Nelson stated approximately 10 acres of land is involved in this project. Using 3 homes per acre = 30 homes. In keeping with the $150,000 valuation, 30 X $3,000 (homestead tax) brings about a tax increase at that point of $90,000. By having homes in there, it would increase the population by only 84, which is less than 1/3 of the pop- ulation the condos would bring. The cost of governing the 84 people would be $17,640. Taking the gross of $90,000 and subtracting the cost of governing the people of $17,640 equals a net gain in taxes of $72,360. Going back to the adjusted tax on the condo of $231,552 minus the net gain of $72,360 comes up with $159,192 in increased taxes from the condo. That amounts to only 1/4 of lq of the city budget. Taking that increase and dividin it by the number of units in the City of Fridley, it comes out to 14.85. Out of that $14.85, the City has to pay the cost of acquiring the properties which could be very expensive,and they have to spend money on redirecting the traffic. So, they are looking at selling their most valuable birthright, home ownership, for less money that it costs to take a spouse out to dinner, $14.85, and he did not think it was worth it! . HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 17, 1983 PAGE 5 Mr. Comers stated that with the $159,192 in increased taxes mentioned by Mr. Nelson, they also had to take into consideration that that money would be available each year thereafter if the project went through. Mr. Comers asked Mr. Nelson what his feelings were in regard to the proposal to move the project north of his property. Mr. Nelson stated when he bought his property and built his house, he was aware the property north of him was commercial. In building, he allowed a barrier of trees and a 6 ft. cyclone fence. He realized he would have no control over what went in north of him because of the commercial zoning. He stated he would rather not see big towers there; he would rather see private enterprise take over and put in office buildings or whatever. Mr. Boardman stated he has done some analysis as far as the generation of taxes. They must understand that in tax increment, they do get the captured value over and above the existing tax. The captured value means the amount of tax that is generated,the amount of tax returned from the State for homestead. If this project went in, that taxes that would be generated per year would be approx. $394,080. That would be the total tax based on the mill rate in this area. Based on this, they could sell a little over $3 million worth of bond. They look at the tax that is generated and base that over the life of that bond which is generally a 15 -yr. bond. That is where they get the money and revenue that is generated to do the acquisition. Ms. Barb Reiland, 6068 Woody Lane, asked if the City has looked at the traffic impact. The proposed driveway for the condo is right across from Woody Lane, which means it is at the top of a hill and on a curve. She stated they live just below that. They have had two cars go through their yard already, and she could not imagine increasing traffic on Old Central. Mr. Boardman stated they are looking at trying to eliminate a lot of the through traffic on Old Central. Right now there are approx. 10- 12,000 cars per day on Old Central. The remodeling of the intersection to the north would divert a lot of that traffic over to Highway 65. He stated that in looking at any kind of driveway entrance, it is best to have that entrance across from a regular street intersection so there is a cross -type intersection. In this location, this was probably the best intersection for that entrance to be located. If the project is moved to the north, the best intersection may be further north. Ms. Reiland asked why they didn't redirect the traffic and make the inter- section modifications first and then decide what kind of project should go in. 10 Mr. Boardman stated then the question is; who pays? They can do the intersection modification, but if there is no money to pay for the inter- section, then it has to be assessed against the property owners. One of 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 17, 1983 PAGE 6 the purposes of setting up a tax increment district is because there are problems. With development in the area, they are going to try to take care of some of these problems. The tax increment district is set up as a possibility for some public improvements due to development. With this type of development, they could start doing some of the things that need to be done, but they cannot do anything initially until they have some development. Mr. Bailer Tiller, 1535 Gardena Ave., stated there should be no development unless it has all been planned out ahead of time. The people who live in this area are the most important of all. They are the people who have to put up with this development, and they should have the say as to whether it goes in or not. Mr. Charles Ross, 5895 Central Ave., stated as he listened to this project proposal, he heard about people being moved out of their homes and the need to develop profitable revenue, When the City talks about diverting traffic, aren't they going to have to have another hearing process like they are having now? Whose yard are they going to go through? First, they create the monster and then, because there is a traffic problem because of it, they find they have to divert traffic. If the City is going to have to divert traffic when they have already acknowledged an existing traffic problem on Old Central, why not divert the traffic first and then build something that fits within the existing community? Mr. Ross stated this is a very large project. He felt it was unfortunate that Mr. Ekberg did not have the courtesy to show up and speak for himself. Mr. Commers stated they do recognize there is a traffic problem already in existence on Old Central. In order to do something about it, they need some monies to start making those modifications. Ms. Lois Adolphson, 6131 Woody Lane, stated she works for Bermel Smaby Realtors. She is in the new home and condominium division of Bermel Smaby. She has done some successful projects, so she has expertise in this area. She had the following questions: Has there been a feasibility study done on the marketability of this project? How many taxpayers in Fridley now have an assessed home value of over $150,000? How many successful projects has Mr. Ekberg accomplished or completed? Does the contractor have either building financing or end financing established on this project? What happens if the HRA approves the project, the homes are taken, the traffic diverted, and then the project doesn't work? What will go in on that property? Mr. Boardman stated no homes will be taken or traffic diverted until there are firm financial commitments on the development of those units and firm end loan financing. That would be mandatory, and the HRA would not take any action unless that happened. Mr. Ekbert has met with real estate people and he apparently feels there is a lot of interest in the sale of these units. 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 17, 1983 PAGE 7 Ms. Adolphson stated she did not feel there was a market for $150,000 units at this location in Fridley. She was against the project. It would ruin her view, and there was already a traffic problem. Mr. "Duke" Addicks, Jr., of Pepin, Dayton, Herman, Graham, & Getts, Attorneys at Law, stated he was hired by Mr. & Mrs. Dan Nelson to look into what is going on. He stated his firm represents both developers and residents on various proposals. He stated the people are objecting to giving Mr. Ekberg the right of development without additional informa- tion. The HRA is a public body and represents not only the present residents, but also the future residents of Fridley and the future develop- ment of Fridley. This is a touch decision to make. He would urge the HRA to think about some of the questions concerning this proposed develop- ment. Mr. Addicks stated that, historically, HRA's were created to provide for low and moderate income housing and to assist in the redevelopment of blighted areas. The power has been expanded over the last few years. He wondered if it was appropriate for the HRA to promote expensive luxury condominiums. He wondered if it was even unlawful to do so. He stated there will certainly be tax increment resulting from this development or whatever development eventually goes in this area, and some of it can be used to clean up the lake and improve traffic flow. . But the principle purpose of the HRA is to assist in the development and not to worry about clean -up or traffic problems. Mr. Addicks stated there is probably a rezoning involved, modification of existing districts, and an environmental assessment process because of the proximity to the lake. In other words, there are quite a few hurdles the developer will have to handle even if the HRA gives him the right of development. For these reasons, Mr. Nelson is asking for a delay in the decision to give a right of development and has asked that City Staff be instructed to find out more about what the developer really intends,.his ability to follow through on a project, and how serious he really is with this proposal. Mr. Addicks stated he felt the HRA should not make a decision without more information. Mr. Ray McAfee, 1360 Hillcrest Dr., stated that since the Dec. 9th meeting, all the developer has done is move this monster further north. He felt that 95% and perhaps 100% of the people in the audience would like to see this thing go back to Golden Valley. He did not think a condominium like this fit into the City of Fridley, because of the height. The buildings would be higher than the Fridley water tower. Mr. Scott Kohanek, 6116 Central Ave., stated he has owned his property since 1976. He likes his home and would like to keep it. He was really upset about the City's communication system. It seems there were a couple of neighborhood meetings he was never notified of; conse- quently, the project was moved further north to include his home and his property. He stated that did not make him very happy. He stated 0 0 L-1 HOUSING & REDEVELOPMENT AUTHORITY MEETING;'FEBRUARY 17, 1983 1. . PAGE 8 Mr. Nelson's lawyer had mentioned there were a lot of hurdles ahead for the developer. Mr. Kohanek stated he was going to be the toughest and biggest hurdle of them all. Mr. Yoava Klucsar, 1337 Hillcrest Dr., stated this property would need rezoning. When people buy a house, it is the biggest investment they make in a lifetime. All these neighbors do not want this project, so why is the City wasting their time. Mr. Mel Nelson, 980 Hackmann Circle, stated Mr. Boardman had talked about homestead tax returns. If he had been listening to the legislature that is now in session, he would know that the people may not end up with any homestead credits. Mr. Boardman shouldn't use that point in bringing out any possibility of returns to the tax structure. Mr. Jeff Hagen, 5980 Gardena Lane, asked if there were any alternatives to this project. Mr. Boardman stated there are always alternatives. The Shorewood shop- ping center has been earmarked as a neighborhood center. In develop- ing an area that is going to support a neighborhood center, the City is trying to encourage a residential type of development in this area. An elderly development, sponsored by St. Phillips Church, has been proposed for the corner of Rice Creek Road and Old Central. Ms. Elaine Gray, 6062 Central Ave., stated their private homes were included in the tax increment district so the HRA can come through and buy and build wherever they choose. She stated she would like to see their properties removed from the tax increment district as it would save the HRA alot of headaches. They have invested a lot of money into their properties. They like the area and the beautiful view. She felt they have the right to enjoy it more than people in a condominium as they were there first. She found it hard to believe that Fridley couldn't survive without this area being developed any more than it is now. The City can develop in the north area where no one is living. Mr. Commers closed the public hearing at 9:11 p.m. Mr. Commers asked Staff's opinion about some of the questions raised concerning a feasibility study, whether or not there needs to be an environmental assessment, and the marketability of these condo units in this area. Mr. Boardman stated all these areas need to be addressed. He wished Mr. Ekberg had been at the meeting to answer some of these questions. He stated they do not have the Shoreline Management Act in Fridley where these units would be located. Where Mr. Ekberg is proposing the project is out of the flood plain; therefore, the setbacks really don't come into effect. The size of the project does not require a mandatory environmental assessment. 0 0 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING,'FEBRUARY 17, 1983 PAGE 9 Mr. Commers asked about the question of soil correction and HRA assistance. What has to be done to make that determination and can it be done on a preliminary basis? Mr. Boardman stated before any soil correction can be done, Mr. Ekberg has to have access to the property. Mr. Prieditis stated it is obvious that a large portion of the neighbor- ing property owners are totally opposed to this project. He felt maybe they were just wasting their time in discussing the site problems and feasibility studies when there is such strong opposition to the develop- ment, no matter where it is located. Mr. Commers declared a 15- minute recess at 9:15 p.m. He reconvened the meeting at 9:30 p.m. Mr. Commers asked Mr. Boardman what the requirements would be to alter the tax increment district, to either subtract or add properties. Mr. Boardman stated the HRA would have to go through the same process they went through in establishing the district. The HRA would have to make a recommendation to be approved by the City Council. He would have to check to see if it would require a public hearing. MOTION BY MS. SVENDSEN, SECONDED BY MR. PRIEDITIS, TO GRANT TO EKBERG & ASSOCIATES, INC., A ONE -YEAR RIGHT OF DEVELOPMENT FOR THE MOORE LAKE CONDOMINIUM PROJECT. Mr. Prieditis stated he thought any project, whether the City or the HRA is involved, should theoretically do something good for either the City itself or the people. Seeing such unanimous opposition to this project, he did not see how this project in its present form could succeed, and he would like to see this particular request for right of development dropped. Ms. Svendsen stated she agreed with Mr. Prieditis. Even though there were only three HRA members present, she felt it was important for them to vote as the homeowners have been waiting a long time for this decision. Mr. Commers stated he was impressed by some of the arguments and questions raised by the people.at this meeting and previous meetings. If this, project is turned down, there might be something else that would go in on that site that might make the people even more unhappy than this project. That property has been slow in developing because it is not prime property. Unless some assistance is given to a future developer, it is probably not going to be developed and will stay off the tax roles. To that extent, it hurts the whole City of Fridley and not just the people who live in the immediate area. UPON A VOICE VOTE, COMMERS, SVENDSEN, PRIEDITIS,- VOTING NAY, CHAIRPERSON COMMERS ' DECLARED 'THE ' MOTION' FAILED AND ' TIE ' RIGHT OF ' DEVELOPMENT ' IS ' NOT GRANTED ' TO ' EKBERG ' & 'ASSOCIATES 'AT THIS ' TIME'. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 17, 1983 PAGE 10 Mr. Commers thanked everyone for coming. He urged them to continue to be aware of the different things that are going on in Fridley. He apologized for the lack of communication; they attempted to give the best notice they could to the people. He stated the people also have a duty to stay informed and to be aware of what is taking place. B. St. Phillips Project (Memo #83 -12 from Executive Director) Mr. Boardman stated St. Phillips is interested in again applying for 202 funds on the property at Rice Creek Road and Old Central. In order for St. Phillips to submit an application for 202 funding, they will have to prove to HUD that the land and soil is compactible and is developable. St. Phillips is concerned that the fill that has been brought in on the site could create difficulties in their application to HUD. They feel the fill was the initial reason they were turned down for 202 funding last year. The fill was placed on the property by the property owner. The property owner met all the permit requirements; therefore, the City had to issue the hauling permit. Mr. Boardman stated that if HUD feels it is necessary, St. Phillips would like some assurance that the HRA would do some soil compaction tests. He thought the cost would be approx. $2,000. If the soil is not compactible or if the fill was put over bad soil, it could decrease • the value of the property. He needed some indication from the HRA prior to St. Phillips' application for 202 funds. He stated he has a meeting with St. Phillips Human Services, Inc., on Mar. 3. Mr. Commers stated that was difficult when they really do not know what the cost will be. Mr. Boardman stated he would do some further investigation on the costs of soil testing and would also discuss this with St. Phillips. He felt they should know what the soil is like as it could be helpful in acquiring the property if the project goes through. MOTION BY.MR. PRIEDITIS, SECONDED BY MR. COMMERS, TO CONTINUE DISCUSSION ON THE ST. PHILLIPS PROJECT UNTIL THE NEXT MEETING AND TO INSTRUCT STAFF TO GET SOME ESTIMATES ON SOIL TESTING. UPON A VOICE VOTE, COMMERS AND PRIEDITIS VOTING AYE, SVENDSEN ABSTAINING, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. C. Letter - Vernon Beck & Associates, Inc. (Drive -in Site) Mr. Boardman stated he has been working with Vernon Beck & Assoc. and Northwestern Life Insurance Co. They have shown an interest in being the developer for the entire drive -in site. Mr. Boardman stated one of the first things he wanted to know was whether that site was a prime 9 to for a hotel development. They are looking at a hotel development and also peripheral development in the way of an office development. 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 17, 1983 PAGE 11 Mr. Boardman stated that at his request, Vernon Beck & Assoc. did an in -house market feasibility study to see if the hotel development would support a high price development. They found that in this northeast area, it would support $55 /night at this time. That does not preclude this area from getting a high class facility. At this time, most of the hotel developers have their primary emphasis on the south and southwest. Once that emphasis is fulfilled, they will look at the northeast area. Mr. Boardman stated Vernon Beck & Associates' recommendation to the HRA would be to try to develop a strong base (office, office - warehouse development) on the drive -in site and save a parcel on the corner for a hotel development. They feel it will happen; it is just a matter of timing. Mr. Prieditis stated his main concern would be the traffic and the difficulties of getting in and out of this site. Mr. Commers asked if there was any way of doing a traffic feasibility study in this area. Mr. Boardman stated the HRA can order a study to be done and pay for it. It has been recommended to the City Council that some of the 1983 CDBG • monies be used to do a traffic study in the Moore Lake area. The City Council will be considering that recommendation at their Feb. 28 meeting.. Mr. Commers declared the letter from Eugene H. Hefter, Vernon Beck & Assoc. dated Jan. 24, 1983, received into the record. II. CENTER CITY DISTRICT A. Consideration of Resolution HRA 6 -1983 (Petitioning the Cit of Fridley for Plaza Improvements for Center City Phase II Development Mr. Boardman stated that at the last HRA meeting, they had a petition on the parking lot but forgot to put in a petition for the assessments. Before the City Council can approve the project and plans for assessments, this resolution has to be passed by the HRA. MOTION BY MS. SVENDSEN, SECONDED BY MR. PRIEDITIS, TO APPROVE RESOLUTION NO. HRA 6 -1983, RESOLUTION PETITIONING THE CITY OF FRIDLEY FOR PLAZA IMPROVEMENTS FOR CENTER CITY PHASE II DEVELOPMENT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. B. Information • 1. City Council Resolution 11 -1983 2. City Council Resolution 12 -1983 3. Anoka County Correspondence on CDBG Mr. Boardman stated this was all support information for the previous resolution. No action was needed by the HRA. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY'17, 1983 PAGE 12 III. FINANCIAL A. Financial Report Mr. Boardman stated there is no financial report at this time. They are just getting their year -end reports in so these should be available at the March meeting. B. Check Register MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO APPROVE THE CHECK REGISTER DATED FEB. 16, 1983, IN THE AMOUNT OF $262,206.42. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. C. Contract Summary dated Feb. 17, 1983, from InterDesign, Inc. Mr. Commers stated the HRA should have a summary of what their agree - ment is on payment with InterDesign. Mr. Boardman stated it is based on the total value of about $356,000. That cost includes the plaza area and includes the area around the • office building (that will be assessed to the office building). It will also include the area along 5th St. The breakdown on all that is going to be assessed differently. As far as any costs or breakdowns of architect's fees, it goes with the development of that portion of the project. Forty per cent of 8% of the overall budget is the archi- tect's fee. Of that, 90% is construction documents and 10% is bidding negotiations. The architect is not involved at all in the inspection process. The City Engineering staff will be doing all the inspection work on the plaza. Mr. Commers stated he would like a memo on exactly how the performance is taking place under their contract with InterDesign. MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO APPROVE THE CONTRACT SUMMARY DATED FEB. 17, 1983, FROM INTERDESIGN,INC. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. V. OTHER BUSINESS: A. Report from Von Klug & Assoc. Mr. Boardman stated the House of Dragon in the Fridley Center will be moving at the end of February. The HRA received a report from 10 Bill Von Klug on the payment. The House of Dragon is accepting a payment in lieu of relocation. The payment in lieu of relocation is $2,500. Attached to the report was a list of the fixture appraisals. There was $6,105 in personal property. Mr. Von Klug is recommending that the City draw up a bill of sale in the amount of $6,105 as he 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 179 1983 PAGE 13 felt it was a justifiable figure for a fixed appraisal. The House of Dragon is also entitled to the $2,500 for relocation. Mr. Boardman stated he had put together for the HRA's information an "Activity List on Acquisition /Fixtures /Relocation" which gives the HRA an indication of where they are with all the properties involved in Phase II. Mr. Commers stated the HRA has received this "Activity List" and it should be attached to these minutes for the HRA's information. MOTION BY MS. SVENDSEN, SECONDED BY MR. PRIEDITIS, TO APPROVE THE RELOCATION AND APPRAISAL COSTS FOR HOUSE OF DRAGON IN THE AMOUNTS OF $2,500 AND $6,105. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. B. FISLIC /FDIC Program and General Reserve Program (Memo #83 -14 from Executive Director) Mr. Boardman stated there are two possible programs that could be used to promote development in the redevelopment districts. One is the FISLIC /FDIC program which has been used in Minneapolis and Blaine for multi - family housing. The other program is the General Reserve Program. Mr. Commers stated the HRA members should have a chance to review these programs and discuss them at the next meeting. Mr. Boardman stated the City Council will also be receiving this information to see if there is any interest there. If the HRA shows an interest at their next meeting, Piper, Jaffray, and Mark Haggerty, who has been involved in the Blaine programs, would be happy to discuss this with the HRA. 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