HRA 06/09/1983 - 29372C
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY
MEETING
JUNE 9, 1983
CALL TO ORDER:
Chairperson Comers called the June 9, 1983, Housing & Redevelopment Authority
meeting to order at 7:50 p.m.
ROLL CALL:
Members Present: Larry Comers, Elmars Prieditis, Carolyn Svendsen,
Duane Prairie, Walter Rasmussen
Members Absent: None
Others Present: Jerrold Boardman, City Planner
Sid Inman, City Finance Director
Dave Newman; City Attorney
Duke Addicks, 930 Lumber Exchange, Mpls.
Lorraine & Dan Nelson, 6080 Central Ave. N.E.
Elaine & Thomas Gray, 6062 Central Ave. N.E.
Gloria Wiemann, 6044 Central Ave. N.E.
APPROVAL OF MAY 12, 1983, HOUSING & REDEVELOPMENT AUTHORITY'MINUTES
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE MAY 12, 1983,
HOUSING & REDEVELOPMENT AUTHORITY MINUTES.
Mr. Comers indicated that on page 14 of the minutes, in paragraph 5 and paragraph
79"$240,000" should be changed to "$24,000 ".
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES
APPROVED AS AMENDED.
ADOPTION OF AGENDA:
Mr. Boardman stated the following items should be added to the agenda:
Item #6: "Bid Tabulation for Demolition Project for 6339 -- 6389 University
Avenue N.E. and-Awarding of Bid"
Item #7: "Discussion of Community Credit - Presentation by Dave Newman"
MOTION BY MR. PRAIRIE, SECONDED BY MS. SVENDSEN, TO ADOPT THE AGENDA WITH THE
ABOVE ADDITIONS.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
16 CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 2 46
1. CONTINUATION OF DISCUSSION ON MOORE LAKE PETITION:
Mr. Comers stated that continued from the last meeting was the discussion of
the Moore Lake Redevelopment District, particularly the petition with respect
to amending the Moore Lake Redevelopment Plan to delete from it the subject
properties contained in the petition.
Mr. Boardman stated that after the last meeting, Mr. Newman had prepared a
resolution in an attempt to work with the petitioners. If was Staff's recommenda-
tion that the HRA enter into this resolution if they so chose. Primarily, the
resolution stated that the HRA will give the petitioners written notice of any
actions which deal with their properties so the petitioners can attend any
meetings.
Mr. Boardman stated that at this meeting, Mr. Addicks has presented a substitution
for the last page of the proposed resolution.
Mr. Commers stated that as he understood it, the proposed resolution as prepared
by Mr. Newman, was not acceptable to the petitioners.
Mr. Addicks stated that was correct. He stated he was representing the petitioners
in this matter. He stated this is the third time they have appeared before the
HRA and the second time on this issue. At the last meeting, along with the
petitions, they showed slides of the four residences that presently exist in an
attempt to demonstrate to the HRA that the initial inclusion of these properties
in the redevelopment area was improper.
Mr. Addicks stated he believed the inclusion of these properties to be improper
because (1) the houses are not blighted; and (2) the argument was made by City
Staff that because the lots are large and inappropriately laid out and could
accommodate more than one residence, that in itself constituted blight under the
law. He stated he disagreed with the conclusion legally. Perhaps if these
houses were scattered amongst blighted houses, the City might have an argument;
but because these are four nice houses isolated on the fringe of the redevelopment
area adjacent to each other, he did not believe that legally there was any blight.
In any event, there was no evidence presented at the public hearing about a year
ago on the condition of the houses, and he felt that was a question the HRA would
have to correct before they could proceed with the redevelopment of this property.
Mr. Addicks stated the HRA seems to have plans for most of the areas within the
other redevelopment areas. There seems to be no formal plan for redevelopment
of this area. A condominium proposal has come and gone - -a proposal in which the
City proposed to spend public money to subsidize luxury condominiums. The
neighborhood obviously opposed that, and he felt that, no matter how good a plan
there is, any type of development like that would always be opposed by the
neighborhood.
Mr. Addicks stated the argument was made earlier informally that the HRA
should probably hold off on a decision at this meeting on whether or not to excludAL
this property pending some plans that are going to be developed to give the people
more of a clue as to what is going to happen in this redevelopment area. He was
• HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 3
i
convinced it was an economic problem. They can plan for condos and have a nice
plan saying there is going to be a luxury condominium there, but he did not know
how that would ever happen.
Mr. Addicks stated he did not see the sense or the need to include the petitioners'
properties under such nebulous circumstances when there is really no definite
proposal or even a tentative proposal or even any ideas on what is to be done
with the property. The petitioners want to be excluded from the redevelopment
area. The resolution drafted by the City Attorney indicates that the HRA can
always move to amend the redevelopment plan to include these properties whenever
there are definite plans on what is to be done with the property: "WHEREAS, if
the 'petitioners' petition was granted, the 'H.R.A.' would still be empowered by
Minnesota Statute to later amend the Moore Lake Redevelopment Plan to include
the 'petitioners' real property...."
Mr. Addicks stated he felt the HRA could plan what to do with the property with -
out having these properties included and then later when there is a more definite
plan for development that the neighborhood can understand, again go through the
process to include the petitioners' property. He thought the decision at this
meeting to exclude the properties would not be a precedent for including it
some years from now when there is a definite proposal or plan.
Mr. Addicks stated that concerning being kept informed about the proposal, no
10 matter what action the HRA takes at this,meeting, he will be writing a letter to
the HRA Chairperson requesting to be kept informed by first -class mail of any
agenda items concerning development, and he would expect that request to be honored.
There is a case law saying a request like that should not be ignored. Out of fair-
ness, he felt the HRA should keep the petitioners informed as to what is going to
happen to their homes.
Mr. Addicks stated they did not bring in a lot of people in an attempt to keep
the meeting as simple as possible. He stated he believed some of his clients
may want to make statements, and he thought it was appropriate for them to do so.
He stated if the HRA had any questions of him or his clients, they would be happy
to answer those questions.
Mr. Addicks stated that one other argument presented at the last meeting was the
possibility of setting a precedent by letting these four homes out of the redevelop-
ment district. He stated there are no other petitions before the HRA for
exclusion and this has certainly been publicized in the newspapers so if people
were interested in getting out, they would be here. Since no one has petitioned
to be excluded, he did not foresee an avalanche of homeowners coming in. He ,
stated that for his clients, everything is nebulous and up in the air; they are
not sleeping nights, and the uncertainty of this whole thing is making them
physically sick.
Mr. Boardman stated it has always been his recommendation and the recommendation
of the legal counsel that these properties not be taken out of the redevelopment
area. They were added in under a great deal of public hearing process which went
through the Planning Commission, City Council, and HRA. The Planning Commission
said it met the Overall Comprehensive Plan for the City of Fridley.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 4
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Mr. Boardman stated Mr. Addicks had stated that these homes were on the fringe
of the redevelopment district. He disagreed. He felt these homes are right in
the middle of the overall district. One of the HRA's responsibilities in the
establishment of the district was to do an overall district - -not just for those
parcels that are excluded from the district by petition of the residents.
Mr. Boardman stated Mr. Addicks had said this would not set a precedent.
Mr. Boardman stated he wanted to point out that this district has been in effect for
over a year, and these petitioners did not come before the HRA with a petition
until a development was proposed in that redevelopment district. He felt that
whenever there is a proposal for development, there is the possibility of peaple
petitioning to be out of the district. As long as the HRA is involved in redevel-
opment, he felt they were going to have this situation repeated over and over
again.
Mr. Boardman stated he understood that this was not an easy decision for the
HRA to make. If the HRA was uncomfortable with making a decision at this meeting,
he would recommend a moratorium be placed on the property for further study.
He stated it is easy to say that these properties can be put back into the district
at a later time, but that may not be the case. Ten years from now, there may be
a problem with these homes (the homes may have different owners, may become
dilapidated, or there could be a tornado go through there). He stated the state
law may change, and they may never be able to put the property back in if they
would want to put it back in. Is
Ms. Lorraine Nelson, 6080 Central Ave., stated she was tired of hearing the
words, "might ", "maybe ", "I don't know ". The City does not have plans or any
alternate plans for this area. She stated public notices sound good, but she did
not know anyone who could interpret what they meant. Whenever she tries to get any
information, she always gets the run- around. Now do they find out what is going to
happen to their homes?
Mr. Addicks stated he worked for the League of Cities for ten years, primarily
in the area of land use and land use legislation. It seemed to him that the
plans are supposed to be flexible and not be cast in iron. The plan is an on-
going process over a period of years. He knew the district was supposed to
last another 20+ years, but during that time, the HRA is going to expand in some
areas and contract in some areas. If the redevelopment project boundary remains
the same for that length of time, he would be very surprised. He did not believe
that taking a parcel out or adding a parcel later was going to make any difference.
They are talking about a plan, not a tax increment district which is rw ch harder
to amend. Amending the redevelopment plan is a fairly simple procedure, and he
40
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 5
could not see why the HRA was so afraid of providing more flexibility in the
plan. Also, he did not see the legislature changing this part of the law
which has been around for years and years.
Ms. Gloria Wiemann, 6044 Central Ave., stated her husband has been in the
hospital since a few days before she received the letter of this process, so
she has been handling all this by herself. She stated she doesn't feel that
her home and yard are blighted. She stated she understood that both Mr. Boardman
and the HRA have a job to do. In the meetings she has attended, she has always
appreciated the concern the members of the HRA and Staff have shown, and she
wanted to thank them for that.
Mr. Dan Nelson, 6080 Central Ave., stated he has a contractor interested in
buying the front acre of his property for the purpose of building two nice homes.
This contractor has been waiting for a decision as to whether they can continue
negotiations or not. By postponing this decision, it is working an additional
hardship for him. He stated he pays taxes on this land, and he cannot even sell
it, so this is something else the HRA should take into consideration in making
their decision.
Mr. Commers stated as he understood it, the petitioners would like a decision
from the HRA on whether they are in or out of the district. Staff has recommended
there be a moratorium for a period of six months for the purpose of doing some
further study. He was not sure if further study would make the decision any easier.
Mr. Prairie stated he had a real problem with keeping the petitioners' property
in the district. He could also understand that if they delay this decision, it
is a burden on the petitioners.
Mr. Prieditis stated he thought a moratorium of six months would only be delaying
the decision and it would not be helping anybody. He did not see them having a
plan for development even within a year. He still felt that any development can
work around something; it is not an absolute. If,by having the petitioners'
properties in the district, it is creating so many problems for these families,
he did not think they would be gaining that much by keeping the properties in the
district.
Mr. Rasmussen stated he sympathized with the homeowners. There is nothing worse
than having built a home and then not know what is going to happen to it. He
stated he would like to see them have some kind of study done. Even when the
district was created, he did not know how much study was actually put into it.
Ms. Svendsen stated that Mr. Addicks had a point when he said they do not have
a firm plan for this area. As a homeowner, she could understand how the home-
owners felt. She stated that when they first talked about the redevelopment
area, she thought there were a couple of problems that were involved with the
Moore Lake area, and she did not think those problems have been solved. One was
the lake itself, and the other was the traffic pattern on Old Central, particularly
the intersection at Highway 65 and Old Central. It was her understanding that
r
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 6
those problems were part of the reason why they put this area in the redevelop-
ment plan, but not in the tax increment plan, because they really didn't have
any plans for developing it but wanted it in the redevelopment plan to try to
remedy these two problems that still exist.
Ms. Svendsen stated she would like to see more information on a timetable of
when they are going to do something with Moore Lake, the street and the inter-
section.
Mr. Boardman stated those things won't happen until development happens - -until
they know what they can get into that property.
Mr. Addicks stated a study sounds good in principle, but really until they have
gotten development to the north, he was not sure if the HRA was going to know
how they could best utilize this property or if they even want to utilize it.
He did not see a study making the HRA's decision any easier or even changing the
facts. By excluding the petitioners' properties, the City would have more time
to do a better study.
MOTION BY MR. RASMUSSEN, SECONDED BY MS. SVENDSEN, TO GRANT A SIX -MONTH MORATORIUM
ON THE PROPERTY TO ALLOW FOR FURTHER STUDIES TO BE CONDUCTED.
Mr. Prieditis stated he still did not think they could accomplish much in six
months or even a year. He looked at the northern end of the district as the
main area they would like to see developed, and he saw the southern end, except
for the intersection and the possibility of redevelopment of Old Central, as
being of lesser importance.
Mr. Prairie stated he had problems with all three of the choices: (1) leaving
the petitioners' properties in the district; (2) taking the properties out of
the district; or (3) delaying for six months to make a study. He did not know
if he could vote for any one of those choices.
Mr. Addicks stated the HRA will be putting these people through hell if they
make the decision to have a study done. He expected a study would just say that
the properties should be kept in the plan because of the uncertainties in the
future. This area should be of only minor concern to the HRA. They have the
whole area to the south and the area to the north to worry about developing.
It seemed the HRA should let the petitioners out of the district and then maybe
consider putting them back in if that is an appropriate decision based on what-
ever development occurs.
Ms. Lorraine Nelson stated she wanted to thank the HRA members that came to look
at their home. She stated this whole situation has been very psychologically
damaging to her. She used to be in good health, but since this has all happened,
her health has gone down hill. She stated this lobbying is too much, and she
will not wait six months.
UPON A VOICE VOTE, RASMUSSEN VOTING YES, COMMERS, SVENDSEN, AND PRIEDITIS VOTING
NO, PRAIRIE ABSTAINING, CHAIRPERSON COMMERS DECLARED THE MOTION FAILED.
0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 7
Mr. Newman stated it seemed to be implied that if the HRA would want to add
this property back into the redevelopment plan at a later date, it was relatively
simple. He wanted to make it clear that there was no guarantee that that would
be the case. Like everything, they are dealing with uncertainties in the future.
Mr..Addicks stated he had prepared a new last page to replace the last page of
the resolution drafted by Mr. Newman. Basically, the change states that: "it is
the intention of the 'H.R.A.' to exclude the 'petitioners' real property from
the Moore Lake Redevelopment Plan and the 'H.R.A.' hereby directs the Executive
Director of the 'H.R.A.' to take the proper steps to enable the 'H.R.A.' and
City Council to exclude the 'petitioners' real property from the Moore Lake
Redevelopment Plan." He stated that if the HRA adopts what he is proposing, they
are instructing City Staff to implement that procedure.
Mr. Newman stated it was his suggestion that the HRA delete the second paragraph
of the page Mr. Addicks had prepared. That paragraph states: "WHEREAS, if the
'petitioners' petition were granted, the 'H.R.A.' would still be empowered by
Minnesota Statute to later amend the Moore Lake Redevelopment Plan to include
the 'petitioners' real property. If either of these two options were exercised
by the 'H.R.A.', the 'petitioners' would not be entitled to individual notice
other than that the 'H.R.A.' would only be required to publish in a newspaper
of general circulation, notice of a public hearing."
• Mr. Newman stated this paragraph did not serve any purpose and did not benefit
the HRA and he would suggest it be deleted.
MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO APPROVE RESOLUTION NO.
TO REMOVE THE RESIDENTIAL PROPERTY LOCATED BETWEEN CENTRAL AVENUE AND MOORE
LAKE FROM THE MOORE LAKE REDEVELOPMENT PLAN, WITH THE DELETION OF PARAGRAPH 2
ON THE LAST PAGE OF THE RESOLUTION.
Mr. Comers stated that as he understood it, approval of this resolution would
initiate the mechanics to have the subject properties excluded from the
redevelopment district.
Mr. Prairie stated that at one time, the HRA talked about if the properties
were removed from the district, there would still be some ability to correct
the street if that was deemed feasible? Was that part of this?
Mr. Newman stated the City will always retain the right to condemn property, if
needed, to expand streets. Depending on the right -of -ways the City presently
holds, the City may be able to improve Central Ave. without condemnation. But,
if these properties are not in the redevelopment plan, the HRA will not have
any power in that area.
I.
Mr. Boardman stated they cannot use tax increment monies outside the redevelop-
ment district. The redevelopment district is the district that empowers the HRA
IS to spend money within the district.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 8 •
Mr. Rasmussen stated he still thought it would be appropriate to have a study
done so that everyone would know what direction the HRA wants to go with this
area.
Mr. Prieditis stated there seemed to be the concern that if these properties
were excluded from the district that it might be difficult to develop. He did
not feel that was true, and he did not see the importance of those properties
being in the district to make the development work.
UPON A VOICE VOTE, PRIEDITIS AND PRAIRIE VOTING YES, COMMERS, SVENDISEN, AND
RASMUSSEN VOTING NO, CHAIRPERSON COMMERS DECLARED THE MOTION FAILED.
Mr. Commers stated he was sorry about this, but the HRA did their best and tried
to arrive at a decision under very difficult circumstances. They hoped things
would work out better in the future.
2. CONSIDERATION OF GENERAL RESERVE SYSTEM:
Mr. Boardman stated the HRA had received a packet of information on the General
Reserve System. He stated he had included a Reserve Finance System Schedule
based on the information received from O'Connor & Hannan. He stated they are
looking at taking an action on the "General Reserve Resolutions" and the "Redevelo�
ment /Tax Increment Plan Amendment Resolutions" at the HRA's July 14th meeting.
Mr. Boardman stated that at the last meeting, the HRA approved the General Reserve
System and authorized Staff to proceed with the mechanics to get action
going. The City Council also approved the system and right now Staff is doing
all the necessary resolutions and mechanics to make the system a more viable
system.
Mr. Commers stated he had a lot of questions concerning the system, and maybe
the way to handle it would be to have a work meeting. One question he had was
if the HRA adopts the General Reserve System, does the adoption and approval of
this document require the HRA to fund it?
Mr. Inman stated, no, with the acceptance of the resolution, not a single dollar
will transfer.
Mr. Commers asked what the requirement was for the initial deposit of $200;000
(Item B -1, page 2, of the report from James Casserly, O'Connor & Hannan).
He wanted to clarify where these first funds are coming from.
Mr. Inman stated that would be the first IDB the HRA sells. At that point in
time, the HRA would make the decision as to where the source of funds would come
from. He stated it is clear the HRA has the choice of where the funds are to
come from to reserve that system. However, he would check with James Casserly
and clarify this. 0
• HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 9
Mr. Commers stated he also had questions about the debt service funds and
some of the administration funds, also the requirements of staff.
Mr. Boardman stated they won't have the other documents from Mr. Casserly until
about June 30. After they have all the documents and have had a chance to
review them, he would suggest they sit down at a work meeting, possibly the
first part of July.
(Ms. Svendsen left the meeting at 9:05 p.m.)
MOTION BY MR. PRIEDITIS, SECONDED BY MR. RASMUSSEN, TO CONTINUE DISCUSSION ON
THE GENERAL RESERVE SYSTEM WHEN ALL THE DOCUMENTS HAVE BEEN RECEIVED AND
REVIEWED.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
Mr. Boardman stated the Reserve Finance System Schedule is not cut and dried.
The main thing is that the HRA feel comfortable with what they are doing and
what they will be approving. It all takes time.
3. CONSIDERATION OF AGREEMENT WITH TOM RYAN:
• Mr. Commers stated this was discussed at the earlier pre - meeting with Mr. Qureshi,
City Manager. He stated the proposal is contained in a letter dated June 9, 1983,
from Mark Haggerty and is signed by Mr. Ryan. As Mr. Commers understood the
proposal, the HRA will take Mr. Ryan's present property for $113,000 on the
real estate, $24,000 on the personal property, and they will still go forward
with the condemnation. In addition, the HRA will allow Mr. Ryan to move into
the Standard Station rent -free for 24 months, he will receive a relocation fee,
and at the end of the 24 months, the HRA can either re- negotiate with Mr. Ryan
or ask him to leave. The HRA would allow the use of the alignmect rack, the
modeco air compressor, and the 300,000 BTU heating system.,
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO ACCEPT IN CONCEPT THE
PROPOSAL AS CONTAINED IN THE JUNE 9, 1983, LETTER FROM MARK HAGGERTY, AND THAT
DETAILED DOCUMENTATION BE WORKED OUT BETWEEN MR. HAGGERTY AND LEGAL COUNSEL FOR
THE.HRA.
Mr. Haggerty stated he is acting as Mr. Ryan's attorney in place of Mr. Feikema
who has been unavailable for the past couple of days. Mr. Ryan has looked at
a number of other sites, but has not found any that meet his needs. Because
Mr. Ryan has been in this location for 22 years, he has a real personal attach-
ment for the building. Mr. Haggerty stated that if they can work something out
where Mr. Ryan can move out and have something to go into would be in the best
interest of everyone. Mr. Ryan is willing to move but not very far away.
He felt what they have accomplished in the proposal is a move situation where
Mr. Ryan is satisfied, and there are some accommodations that are really not
costing the HRA that much more.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 10 •
Mr. Commers stated it was his understanding that after the move, the alignment
rack, the modeco air compressor, and the 300,000 BTU heating system will belong
to the HRA and will remain in the Standard Station if Mr. Ryan moves.
Mr. Haggerty stated that was correct.
Mr. Prairie stated the HRA has been reluctant in Phase 3 to give anyone a lease
over 12 years. This would be a commitment for 2 years. Was there any problem
with that?
Mr. Boardman stated that based on the inactivity in this area, he felt comfort-
able that nothing was going to happen for two years and possibly three years.
Mr. Prieditis stated the HRA is paying Mr. Ryan for personal property that after
two years will probably be worthless. He felt they were giving Mr. Ryan a break
that they have not given anyone else, and he hoped this would not set a precedent.
Mr. Commers stated what he did not like about this is that Mr. Ryan will not be
paying any taxes on the facility for the two years.
Mr. Newman stated he had seen this letter for the first time this evening. He
would assume the motion was to approve the proposal in concept, thereby instruct-
ing Staff to execute the necessary documents. The question asked by Mr. Commers
about who will retain ownership of the personal property and some other questions •
should be spelled out a little more clearly.
Mr. Coroners stated he was assuming that by approving the concept, they were not
violating any ordinance.
Mr. Haggerty stated that if the HRA approves the concepts in the letter, then
the Staff and City Attorney can draft the appropriate documents and proceed as
quickly as possible. He was not asking them to violate any ordinance.
UPON A VOICE VOTE COMMERS, PRAIRIE, AND RASMUSSEN VOTING YES, PRIEDITIS
ABSTAINING, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED
Mr. Commers asked Staff to get the documents together and bring them to the
next meeting for signing.
4. FINANCIAL REPORT:
Mr. Inman stated Item No. 1 was a progress billing for the Fridley Plaza. The
HRA in their cash flow projection anticipated paying $200,000 in May of 1983.
As of May 31, 1983, the progress billing shows $72,720 expended. He had met
with Mark Burch, Assistant Public Works Director, and Mr. Burch has suggested
they make the transfer of $200,000 as soon as possible because with the additional
projections of the billings before the HRA's next meeting, they could be very
close to that figure. Therefore, he was requesting the HRA to authorize the
transfer of the $200,000 to ensure proper cash flow and that no interest expense
accrue.
0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 11
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRIEDITIS, TO APPROVE THE TRANSFER OF
$200,000 TO COMPLETE THE FRIDLEY PLAZA PROGRAM.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
Mr. Inman stated Item No. 2 was a copy of the expenses due the City of Fridley
from the HRA for services rendered from Jan. 1, 1983, to April 30, 1983, in the
amount of $5,442.71.
Mr. Inman stated Item No. 3 was the Rent Report from Jan. 1 to May 31, 1983, as
requested by the HRA.
Mr. Inman stated they anticipate having the detailed expenditures for January
to June 30, 1983, at the HRA's July meeting, including the audited financial
report and an updated cash flow based on any payments made In the interim.
Mr. Conners stated the HRA was also supposed to get some kind of breakdown from
Mr. Inman with respect to projected administration and personnel costs for the
HRA.
Mr. Inman stated he had prepared an Hours Audit showing the actual hours charged
including time spent at the commission meetings. It was his understanding the
HRA wanted an hours audit of what had been spent in terms of staff hours.
Mr. Commers stated he would like to see a budget so they can see what is being
projected, how the City arrived at the numbers put into the budget for the
coming year. That is the $98- 100,000 allocated for administrative expenses.
He would like to see how it is broken down, both historically for last year and
what is being projected for this year. He asked if Mr. Inman made a budget
projection for the HRA.
Mr. Inman stated they do not make a budget projection per se for the HRA because
the law does not require it. He stated they have attempted to project based on
the HRA's activity last year and the anticipated additional development north
of City Hall and across the street which hasn't taken place yet.
Mr. Commers stated he thought the HRA would like to see the data used in arriving
at that number and those projections, so the HRA can get a feeling on how much
it is costing the HRA in terms of administration dollars and whether or not there
are some other types of arrangements that would be feasible in terms of staffing.
Mr. Inman stated he would be happy to prepare that information for the HRA's
next meeting.
5. CHECK REGISTER:
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE CHECK REGISTER
DATED JUNE 7, 1983, IN THE AMOUNT OF $28,959.82.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 9, 1983 PAGE 12_ 0
6. BID TABULATION FOR DEMOLITION PROJECT FOR 6339 -6389 UNIVERSITY AVE. N.E.
AND AWARDING OF BID:
Mr. Boardman stated this includes all the Doty property as well as Dr. Ryan's
property.
MOTION BY MR. PRAIRIE, SECONDED BY MR. RASMUSSEN, TO ACCEPT THE BID FROM
TED RENOLLET TRUCKING IN THE AMOUNT OF $12,950.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
7. DISCUSSION OF COMMUNITY CREDIT - PRESENTATION BY DAVE NEWMAN:
Mr. Newman stated that, as the HRA was aware, Community Credit was claiming to
have a valid leasehold interest. In order to get Community Credit out of the
building, the City commenced condemnation procedures and Community Credit is
now out of the building.
Mr. Newman stated the City was approached this week by Community Credit's
attorney asking about the likelihood of a settlement. Mr. Newman stated he
told the attorney he would bring this to the HRA to see if there was any
likelihood of a settlement.
Mr. Newman stated he feels very comfortable that as far as the actual value of
the leasehold, there is no value to which Community Credit is entitled to
compensation. He felt comfortable that as they proceed through the legal
process, Community Credit will be awarded enough compensation.
It was the concensus of the HRA that the legal counsel go forward and see what
can be done.
ADJOURNMENT:
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRIEDITIS, TO ADJOURN THE MEETING.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE JUNE 9, 1983,
HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:45,P.M.
Respectfully submitted,
&�2� - JL�
Ly6ne Saba
Recording Secretary
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