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HRA 06/27/1984 - 29362CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING June 27, 1984 CALL TO ORDER: Chairperson Commers called the June 27, 1984, Housing & Redevelopment Authority meeting to order at 7:00 p. m. ROLL CALL: Members Present: Larry Commeres, Duane, Prairie, Elmars Prieditis, Walter Rasmussen Members Absent: Carolyn Svendsen Others Present: Nasim Qureshi, HRA Director Sid Inman, City Finance Director Dave Newman, City Attorney APPROVAL OF MY 10, 1984, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. PRAIRIE, SECONDED BY MR. RASMUSSEN, TO APPROVE THE MAY 10, 1984 • HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMIMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA: The following items were considered under 'Other Business ": Paschke Construction TIP #2 Humphrey Dome Appreciation Night Public Works Memo 108 -84 Re: Landscape Plan for Skywood Mall Motel Report from City Attorney Re: Steven Hardel Property The agenda was adopted with the addition of the above items. 1. STATUS OF HOLLY CENTER: Mr. Qureshi stated Holly Shopping Center was bought by the Hearthland organization and they wish to update it and make a more aggressive local shopping center. He stated the owners are interested in the Federal 312 subsidized interest program and their application is being processed through the County. He stated if the funding is received, they would match this amount for upgrading Holly Center. • HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 27, 1984 PAGE 2 Mr. Qureshi stated the owners are also interested in purchasing the old Phillips 66 gas station. He stated they have approached the owner and are in the process of obtaining appraisals and, once these are obtained, their proposal will probably come back before the HRA. Mr. Prairie questioned if 312 funds were not received, what would happen. Mr. Qureshi stated there would probably be a further review of the pot- entials and what the risks would be, however, the new owners wish to attract more business. He stated all indications are showing that the new Country Buffet restaurant in Holly Center is doing a fairly good business since they have opened. W. Commers stated there were some appraisals done on this gas station several years ago and thought perhaps this information may be useful. 2. HARDWARE BUILDING USAGE; Mr. Qureshi stated the new owners of Holly Center have indicated that Snyder Drugs may be interested in expanding their store and unless they are given more space, they may not renew their lease. Mr. Qureshi stated the City currently has a lease with Holly Center for the liquor store. He stated the sales approach for liquor stores has changed and a number of warehouse type stores are opening. • W. Qureshi stated this type of operation has been discussed with the City Council and the proposal is to lease about 8,500 square feet in the hardware building. He stated the lease would probably be for three years, with a guarantee of two years, and the last year would be optional. Mr. Qureshi stated it is estimated the City would have to put almost $60,000 into this operation and would lease space at $2.50 a square foot. He stated if the HRA moved out the liquor store in the third year, they would proportionately pay for the improvements which would probably amount to about $.10,000, since some of the items included in the $60,000 figure could be sold. Mr. Qureshi stated if the HRA gives conceptual approval, the relocation of the liquor store would possibly be in October. He stated, at this time, there is no guarantee Snyder's wants the additional space, but they have indicated an interest in expanding. It was the general concensus of the HRA members that they would be interested in such an arrangement if the City desires to proceed. 3. PLANNING APPROVAL FOR POLICE GARAGE; W. Qureshi presented the plans for construction of the Police garage and storage area,;outlining the location of the bridge, walkway, driveways, and storage space. • Mr. Qureshi stated the HRA called for bids for this construction which were opened on June 26. HOUSING & REDEVELOPMENT AUTHORITY MEETING E 27 1984 PA 3 • Qureshi stated the estimated costs, as indicated in Public Wor P117 -8A from John Flora, were as follows: ks Memo Preparation of Land $144,000 Construction of Retaining Wall 170,000 Construct Storage Facility 75 000 Construct Walkway & Landscaping 80,000 He stated the total estimated cost was $469,000 and the low bid received from Monette Construction was $394,700. Mr. Qureshi stated the costs were broken down as follows: Preparation of Land, $100,594; Construction of Retaining Wall, $146,691; Construction of Storage Facility, $71,960; and Construction of Walkway & Landscaping, $75,455. Mr. Quereshi stated the traffic consultant proposed an island to allow only right turns on Mississippi Street, and to increase the lanes from two to three on the South driveway to 5th Street, and these improvements were not included in the bid so there would be an additional cost of about $10,000 to make these improvements. He requested this work be added to the bid under Change Order No. 1 The HRA received the following bids for the garage /storage facility in the Center City: • Monette Construction Co. $394,700 Witcher Construction Co. 397,500 Acton Construction Co. 464,866 MOTION BY M. PRIEDITIS, SECONDED BY MR. RASMUSSEN, TO INSTRUCT THE CITY COUNCIL TO ACCEPT THE BIDS-AND AWARD THE CONTRACT TO THE LOW BIDDER, MONETTE CONSTRUCTION INCLUDING CHANGE ORDER NO. 1. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Qureshi stated it would simplify accounting procedures if the City Council could make payment to Monette Construction, however, both the HRA and Council would review the payment and concur with it. He stated the contractor would also receive payment sooner since the Council meets more frequently than the HRA. Mr. Commers stated the City is in agreement to share in the cost of the storage facility. Mr. Qureshi stated the City would be paying their portion of these costs. Mr. Qureshi stated the County has been considering widening Mississippi Street all the way to 5th Street and those costs would be brought before the HRA when a decision is made by the County. Mr. Qureshi stated the NSP power line will be relocated which involves • substantial costs and it may be easier for the City to pay this re- location cost, rather than the HRA, and then receive a credit from the HRA to be applied to the storage facility. The HRA members indicated no objection to this suggestion since it would be an even trade -off. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 27, 1984 PAGE 4 . Mr. Commers stated dirt is being hauled out in connection with the Target project and felt they would then have to bring some back for the parking lot. Mr. Qureshi stated Target is responsible for this operation so there would be no extra charge to the HRA for fill. He stated he is meeting with the Target representatives regarding this question and if there is any change, he would notify the HRA. 4. FRIDLEY CENTER CITY PLAT: Mr. Commers stated the HRA tentatively approved proceeding with this plat for the Center City. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO CONCUR WITH THE LAYOUT AS PROPOSED IN THE CITY CENTER ADDITION PLAT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. APPROVAL OF 49ERS USE OF HRA PROPERTY: The HRA received the information regarding a carnival license in con- junction with the Fridley 49er's Celebration. • 6. REQUEST FROM STORER CABLE TELEVISION FOR FINANCING ON CABLE RELOCATION: Mr. Commers stated a request was received from Storer Cable Television for compensation from the HRA in the relocation of their cable lines in the redevelopment area of Mississippi Street and University Avenue. Mr. Commers stated staff has recommended denial of this request as the franchise agreement between the City and Storer states that removal or replacement of service lines shall be at the expense of Storer. Mr. Qureshi stated NSP will be relocating underground some of their power lines and the City's franchise agreement with NSP provides they will be reimbursed by the City for this relocation. The HRA received the memo from the Public Works Director, PW 100 -84 regarding the request and staff's recommendation. 7. FINANCIAL STATEMENT: The HRA received the financial statement presented by Mr. Inman, Finance Director. There was a general discussion on bonding and whether the HRA should call for bonds at this point in time. Mr. Inman stated if the HRA has a fund balance at the completion of the Target project, it becomes • speculative to bond without any other projects. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JUNE 27, 1984 PAGE 5 Mr. Commers stated he would like a report on whether all funds have to be used in the Center City project. Mr. Inman stated he has a letter regarding this question which he would forward to the HRA. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRIEDITIS, TO ACCEPT THE FINANCIAL REPORT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONKERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. CHECK REGISTER: MOTION BY MR. PRAIRIR, SECONDED BY MR. PRIEDITIS, TO APPROVE THE CHECK REGISTER DATED JUNE 8, 1984, IN THE AMOUNT OF $34,946.22 WITH THE ADDITION OF THE STATEMENT FROM O'CONNOR & HANNAN DATED MAY 16, 1984 IN THE AMOUNT OF $4,500 AND THE STATEMENT FROM HERRICK & NEWMAN DATED JUNE 14, 1984 IN THE AMOUNT OF $3,08.40, LESS THE 3 HOURS ERRONEOUSLY CHARGED TO THE HRA FOR THE COUNCIL MEETING. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CO1*ERS DECLARED THE NOTION CARRIED UNANIMOUSLY. 9. OTHER BUSINESS: • PASCHKE CONSTRUCTION IN TAX INCREMENT PROJECT #2: Mr. Qureshi stated Mr. Paschke submitted construction plans for Lots 3, 5 and 6, Block 4, University Industrial Park in Tax Increment Project #2. He stated it would be in order for the HRA to accept and approve the plan. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRIEDITIS, TO ACCEPT AND APPROVE THE PLANS SUBMITTED BY MR. PASCHKE IN PUBLIC WORKS MEMO, PW 101 -84. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. HUMPHREY DOME APPRECIATION NIGHT: Mr. Commers stated the HRA members received information regarding this appreciation night at the Metrodome and anyone interested in attending should notify Mr. Qureshi. LANDSCAPE PLAN FOR SKYWOOD MALL MOTEL - PUBLIC WORKS MEMO 108 -84: Mr. Qureshi stated this memo is submitted for the HRA's information. He stated the developer is meeting with the neighbors regarding the landscaping behind the motel. • The HRA received Public Works Memo 108 -84 for informational purposes. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 27, 1984 PAGE 6 REPORT FROM CITY ATTORNEY RE: STEVEN HARDEL PROPERTY: Mr. Commers asked if more can be offered for property or if they must go with the value placed on it by the appraisers. Mr. Newman stated there has been some funding restrictions, but one of the things always taken into consideration is the cost of litigation. Mr. Qureshi stated it would have to be determined what would be a reasonable settlement in comparison to what it may cost to go to trial. MOTION BY M. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO AUTHORIZE UP TO $95,000 FOR SETTLEMENT OF THIS PROPERTY, IF IT IS LEGALLY ACCEPTABLE. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO ADJOURN THE MEETING. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMERS DECLARED THE JUNE 27, 1984, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 8 :15 P. M. • Respectfully submitted, Carole Haddad Recording Secretary 0