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
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