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HRA 03/08/1984 - 29365is 15,1 A CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING MARCH 8, 1984 CALL TO ORDER: Vice- Chairperson Prieditis called the March 8, 1984, Housing & Redevelopment Authority meeting to order at 7:08 p.m. ROLL CALL: Members Present: Elmars Prieditis, Duane Prairie, Walter Rasmussen Members Absent: Larry Commers, Carolyn Svendsen Others Present: Sid Inman, City Finance Director Nasim Qureshi, City Manager Mayor Bill Nee Ed Hamernik, Councilman Ed Fitzpatrick, Councilman Dave Newman, City Attorney Mark Haggerty Richard Brooks, Target Stores Michael Moorman, Target Stores APPROVAL OF JANUARY 12, 1984, HOUSING &_ REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO APPROVE THE JAN. 12, 1984, HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. CHECK REGISTER APPROVAL Mr. Inman stated that in the past, Staff has been handling the HRA's checks upon approval by the HRA. He stated Staff would like the authority to make payments on those things where there is a discount or a penalty. He stated that before the HRA.made a decision on this, he would send them a copy of the resolution the City Council passed for a similar procedure. The HRA members agreed this would be a good idea. MOTION BY MR. PRAIRIE, SECONDED BY MR. RASMUSSEN, TO APPROVE THE CHECK REGISTER DATED JAN. 27, 1984, IN THE AMOUNT OF $74,959.29 AND CHECK REGISTER DATED MARCH 2, 1984, IN THE AMOUNT OF $15,718.52. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. 15;1 E 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 8, 1984 PAGE 2 MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO APPROVE THE PAYMENT OF P.O. NO. 20287 FOR LEGAL FEES FOR HERRICK & NEWMAN P.A. IN THE AMOUNT OF $215.00. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. RESOLUTION DESIGNATING OFFICIAL DEPOSITORY FOR FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY: MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO APPROVE RESOLUTION NO. HRA -4 -1984, "RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY ". UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. FINANCIAL REPORT: Mr. Inman stated no action was needed on this item, but he would like the HRA to make a motion to receive the financial report. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO RECEIVE THE HRA ANNUAL FINANCIAL REPORT, UNAUDITED, FOR YEAR ENDED DEC. 31, 1983. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. OTHER BUSINESS: a. Proposal by Target Stores Mr. Qureshi stated it has been the City's and the HRA's desire to see the property developed north of City Hall. For the last few months, Staff has been working with Target representatives to see how the City of Fridley could accommodate a possible administrative building for the Target people. He stated he now felt they were far enough along in their dis- cussions to give the HRA an update on what has transpired over the last few months and where the negotiations are with Target at this time. If the HRA feels this is a good proposal and a good development, he would like to get a conceptual approval from the HRA on the proposal so they can proceed to formalize the proposal and possible agreement between the City, the HRA, and Target Stores. Mr. Qureshi introduced Richard Brooks, Target Regional Real Estate Manager, and Michael Moorman, Project Architect for this office.facility. He stated Mr. Brooks and Mr. Moorman would give the details of the proposal. • 1 -,1 C (D . HOUSING & REDEVELOPMENT AUTHORITY MEETING ;MARCH 8;'1984 PAGE 3 Mr. Brooks stated they have spent considerable time analyzing what they should do with their existing Commerce and Paco office personnel. He stated that when he started with the Target company in 1978, there were 46 stores. Today, there are 217 stores. The amount of people needed to operate those stores has increased substantially; therefore, they are running out of room at their existing facilities at Commerce and Paco. Over the past months, they have viewed several sites and proposals from various cities surrounding Fridley and Fridley. With the great cooperation of the Fridley City Manager, Mr. Qureshi, and his staff, they have selected this location to put their new office facility. It will be approx. 75,000 sq. ft. office building, three stories, that will accommodate initially 320 people. These people will be coming from the facilities at Commerce and Paco. Mr. Brooks stated they are very happy with this decision, because they have had a very long history with Fridley. They have a store in Fridley, their distribution center is here, and they are happy they have been able to work out arrangements to stay in Fridley. Mr. Brooks stated that, as far as the site specifics, he would turn that part of the discussion over to Mr. Moorman to explain a little bit about the site, the building, and then they would be happy to answer any questions. • Mr. Moorman stated the building itself will have about 74,600 sq. ft. They are planning for 350 people and right now their best projections are until 1995. They are.proposing a three -story building where they can split up their operation. He stated their operation works better with a two -story building, but with this particular site, they are going with three stories because it fits the site. The building will be to the north of Fridley City Hall. Mr. Moorman stated there are about four structures that will have to be taken down. There is a large excavated area from a previous structure that they are going to take advantage of on the site and put in their lower level. They are proposing that the western portion of the site be building and the eastern portion of the site be parking for about 300 cars. They have been working out the details of the parking arrange- ment and landscaping with Mr. Qureshi. They are also planning to have ponding areas that are required here in the City to retain water. Mr. Moorman stated they are proposing that the building be basically broken into two blocks. Primarily, the building is set so it flows into the site. It leaves some room for physical expansion after 1995. The building itself is basically laid out so they have a circulation core through the center of it that focuses on the parking lot. Mr. Moorman stated there will be a lower level which will be a walk -out . into a lower grassed area which will have picnic tables, etc. The second level goes out onto the parking lot and will be where their main facilities are Some of their other departments will be on the third level. They are looking at the fact that the City's greenway will continue on through and by the site. They are looking at an entrance HOUSING & REDEVELOPMENT AUTHORITY MEETING,'MARCH 8, 1984 PAGE 4 off Mississippi St. and also making use of the center driveway that now services City Hall and the Police Dept. Mr. Moorman stated their staff will work two shifts. The bulk of the employees will work 7:00 -8:00 a.m, to 4:30 p.m., and the second shift (about 100 employees) stays until about 12:00 -1:00 a.m. Mr. Rasmussen asked if a study had been done on how this proposal would affect the Fire Dept. as far as traffic congestion. Mr. Moorman stated no particular study has been done, but he felt they were not going to create any particular problem, any more than what the Fire Dept. has right now. Mr. Qureshi stated he felt they were looking at a very small magnitude impact on the overall picture. At the present time, about 40,000 vehicles per day go through the University /Mississippi intersection. By adding 200 vehicles, the magnitude is less than 1 %. He stated it was his hope that some of the modifications they have worked on and looked at would not, in any way, adversely impact the existing situation and as develop- ment is completed, they certainly will be studying to see what the actual impact is and do anything they can to minimize any adverse effects. Mr. Rasmussen stated he thought getting such a great company such as Target to come here was a wonderful opportunity for the City of Fridley. Mr. Prieditis stated he was happy about Target's decision to move into Fridley. He asked Mr. Brooks why they selected Fridley and this parti- cular site. Mr. Brooks stated that certainly the cooperation and enthusiasm the City Staff had shown them had been a key factor. Also, many of their employees are Fridley people. One of their goals was to try to stay within a certain radius of their existing facility. They have a lot of long term employees who live here and they tried to accommodate those people. Mr. Prieditis stated the HRA was certainly pleased to see Target's interest in this site. He asked what time frame Target was looking at as far as development. Mr. Brooks stated they would like to be under construction in June and have the facility completed in at least 12 months. Mr. Prairie asked if the building would be similar to the new medical building and office building that are relatively new in the Center City. Mr. Moorman stated their building will be brick-on tFie exterior, a very . similar brick to the other buildings. They will be using some metal panels and some stucco panels. They intend this building to be very l�,l F • HOUSING & REDEVELOPMENT AUTHORITY MEETING,'MARCH 8, 1984 PAGE 5 compatible to the design and materials that are currently used in the site.. Their landscaping will fit in with the greenway and plaza areas. They intend to help complete the Center City area. Mr. Prairie stated that earlier in the meeting, Mr. Moorman had mentioned the possibility for growth on this site. How many square feet? Mr. Moorman stated they could probably add 15- 16,000 sq. ft. This is just an option they want to reserve. They do not know the likelihood of any expansion, but it is good planning to keep that option open. Mr. Qureshi stated that, originally, Target felt the site north of City Hall was too small. Their original desire was for 9 acres. Their preference was for two stories because of their general need for opera- tions. When the City was approached by a real estate professional hired by Target, the City showed them the site west of University which is certainly 9 acres, but because of the desire of the HRA and the City to complete this quadrant they had started, their emphasis was on this site. Target did some initial sketching to see if there was a way to work a two -story building, but it did not look right because it did not leave any room for green spaces. It was the City's desire to leave some space between City Hall and a new facility for good separation between • the two buildings, some kind of continuation of the plaza system and walkway system, and a lot of green area and landscaping. Target was willing and able to adjust their needs and came up with the proposal for the three -story building. He stated they seem to be quite comfortable with this proposal. Mr. Qureshi stated they feel that if this facility is built, it will be an excellent addition to Center City. It will complete the southeast quadrant and will introduce 300+ people which will favorably impact the business people in Fridley. Mr. Qureshi stated Target's proposal is to build a $ 5 Million dollar facility. It is going to create over $200,000 in taxes, and that would certainly be available to make this development work. Once that has been completed, they could all be very proud of having a good development and a sizable tax generation by this facility to the City. Mr. Moorman showed the HRA the plans for the interior design of the building. Mr. Prieditis stated that, architecturally, this was a very nice building. Mr. Brooks stated that Target has a new City Center building in Minneapolis, and they wanted their employees here to have the feeling they were getting a comparable quality facility. That is why they designed the building the way they did. 11-0 1�,1.FI HOUSING & REDEVELOPMENT AUTHORITY MEETING MARCH 8; 1984 PAGE 6 Mr. Qureshi stated that, informally, Target has now made enough arrangements to commit to the City on this site. He stated the HRA will require a resolution for the sale of property the HRA owns north of City Hall, and a public hearing is required for that. After that, the HRA will be free to sell the property. Mr. Qureshi stated the basic financial arrangements worked out with Target is the HRA will sell Target the footprint, 5 ft. around the building, for $2 /sq. ft. Target would actually own that property. The rest of the land outside the building will be leased to Target for 30 years at maybe $15,000 /year; then the City will sell the land to them at approx. $300,000. The City will retain the option of air rights of a little over half of the easterly portion of the parking lot so that in the future, either the City, HRA, or Target could develop a parking ramp if the parking needs demand such a facility. Target will have the option to buy additional property at $2 /sq. ft. at any time during the 30 -year period if they want to expand. Mr. Qureshi stated there are some problems with drainage north of City Hall, and arrangements will have to be made to handle that. The HRA will have to have the land ready for development, so they will have to remove the existing structures. Mr. Qureshi stated that if the HRA was comfortable with this proposal, Staff will proceed with the arrangements of publishing a notice for a public hearing for disposal of the land and notify all the tenants of the general plan so the tenants can start making arrangements to move. There is some flexibility here as the area is basically vacant where the building will go. Mr. Qureshi stated that with the concensus of the HRA, they would also formalize the agreement with Target and that agreement would be brought back to the HRA. He stated he would send copies of the formalized agreements to the HRA prior to their meeting so they would have time to review it. Mr. Prairie stated he felt very comfortable with Target's proposal and Was looking forward to seeing it get going. Mr. Rasmussen stated he thought it was a wonderful opportunity for Fridley. Vice - Chairperson Prieditis stated it was the general concensus of the HRA members present at the meeting that they were comfortable with the Target proposal. They would authorize Staff to proceed with the 10-day notice for public hearing. The HRA would also give conceptual approval to the financial arrangement as outlined by Mr. Qureshi, which will be brought back to the HRA in a formal agreement. If it was necesary, the HRA would hold a special meeting. 15.1 G HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 8, 1984 1 PAGE 7 Mr. Prieditis thanked Mr. Brooks and Mr. Moorman for coming to the meeting. Mr. Prieditis stated he would like Staff to continue to give the HRA more factual information as the project progresses. ADJOURNMENT: MOTION BY MR. RASMUSSEN, SECONDED BY JAI2. PRAIRIE, TO ADJOURN THE MEETING. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON PRIEDITIS DECLARED THE MAR. 8, 1984, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 8:45 P.M. Respectfully sub itted, Ly ne Saba Recording Secretary —40