HRA 02/14/1985 - 29356CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY
MEETING
FEBRUARY 14, 1985
CALL TO ORDER:
Chairperson Comers called the February 14, 1985, Housing & Redevelopment
Authority meeting to order at 7:03 p.m.
ROLL CALL:
Members Present: Larry Commers, Elmars Prieditis, Carolyn Svendsen,
Walter Rasmussen
Members Absent: Duane Prairie
Others Present: Nasim Qureshi, HRA Director
Sid Inman, City Finance Director
Dave Newman, City Attorney
Arlin B. Waelti, O'Connor and Hannan
• APPROVAL OF JANUARY 10,1985, HOUSING'& REDEVELOPMENT AUTHORITY 'MINUTES:
MOTION by Mr. Rasmussen, seconded by Ms. Svendsen, to approve the Jan. 10, 1985,
offing & Redevelopment Authority minutes as written.
Upon a voice vote, all voting aye, Chairpersow Commers declared the motion
carried unanimously.
1. UPDATE REGARDING'HOLLY'CENTER DEVELOPMENT'_AGREEMENT AND
APPROVING'THE'SIGNAGE'PLAN'FOR
Mr. Qureshi stated the City has been working with the owners of the Holly
Shopping Center to upgrade the center. The HRA approved the development
agreement, and that agreement has been fully executed by the HRA, Heartland
Realty, the owners of Holly Center, and it has been filed against the
property.
Mr. Qureshi stated one of the requirements of the agreement was that Heart-
land would submit plans to the HRA for the upgrading of the center. They
have already repaired the roof of the restaurant. They will be putting up
a new facade and signage on the front and a new pylon. Mr. Qureshi stated
the commissioners had in their agenda the plans for the new facade and the
upgrading of the total signage.
Mr. Qureshi stated the commissioners had also received a rendering copy
that showed how the center will look after the improvements are made. He
stated the City feels this will certainly be a good and sizeable ipprove-
ment to the center.
0 HOUSING '& REDEVELOPMENT'AUTHORITY 'MEETING,'FEBRUARY'14,'1985 . . PAGE 2
Mr. Qureshi stated one requirement in the agreement was that Heartland was
to acquire the old Phillips 66 station before March 1. He understood they
have already purchased the station, and the next phase will be the HRA
acquiring the station and taking it down (item #2 of agenda).
Mr. Qureshi stated action needed by the HRA was approval of Resolution No.
HRA 4 -1985, "Resolution Approving the Construction Plans for Improvements
to Holly Center as Submitted by the Heartland University Commercial Limited
Partnership ".
Ms. Svendsen expressed some concern about the tenants of Holly Center
regarding the new signage. She had been informed that one tenant was not
very happy about the new signage. She wondered if the tenants had been
given any kind of information regarding what was happening with the Center
Would the new signage result in a cost to the tenants, and had the tenants
been informed of this?
Mr. Qureshi stated all the tenants were notified when the center was sold
to the new partnership. He would assume the new owners have talked to the
tenants. Realistically, if the owners are putting money into the center to
make it a more viable center, he would assume there would be some cost to
the tenants eventually. As far as improvements on the building and the
signage, the HRA was not involved at all. The only involvement by the HRA
and the City was in the landscaping and road access.
Mr. Rasmussen stated he would also sympathize with the tenants if they had
not received proper notice and if the HRA should be notifying tenants of
these kinds of things. After all, the HRA was spending a great deal of
money to help the center out.
Mr. Commers stated that maybe in the future when the HRA enters into
private contracts for development, the HRA should consider requiring the
developer to present evidence or require the developer to make a presenta-
tion to the tenants. They could make that part of the development contract.
It was a non - technical type of requirement, but they seem to consistently
have this problem with tenants getting upset. The more the HRA can do to
alleviate this problem, the better off they will be.
Mr. Commers stated the HRA would also like something in their files from
the city inspectors who give final approval that would indicate that all
the construction meets local codes.
MOTION by Mr. Prieditis, seconded by Ms. Svendsen, to approve Resolution
lNo. CFA 4 -1985, "Resolution Approving the Construction Plans for Improve-
ments to Holly Center as Submitted by the Heartland University Commercial
Limited Partnership ".
Mr. Qureshi stated he would provide the HRA with a copy of the building
. permit so they know that the construction meets all state and local codes.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
• HOUSING & REDEVELOPMENT'AUTHORITY MEETING,'FEBRUARY'14, 1985 PAGE 3
2. CONSIDERATION OF RESOLUTION NO. HRA 1 -1985 ORDERING'DEMOLITION
E L '.OF.:.STR' CTURES :AND' ECEIVI G.'.QU TES.'.FOR' I G' SIN
Mr. Qureshi stated the City has gone ahead and received written quotes
for the demolition of the Phillips station. The three quotes were as
follows:
•
Renollet Trucking $ 4,560
Gammon Bros., Inc. 10,000
Park Construction Co. 12,600
Mr. Qureshi stated if it was the HRA's desire to award the contract, he
would recommend they award the contract to Renollet Trucking for $4,560.
MOTION by Mr. Prieditis, seconded by Ms. Svendsen, to approve Resolution
No. HRA 1 -1985, "Resolution ordering Demolition and Removal of Structures ",
with the following rewording in #2: "That the Public Works Director,
John G. Flora, City Hall, Fridley, Mn., is hereby authorized and directed
to draw plans and specifications for this work and to acce t'the bid from
Renollet Trucking in the amount'of $4,560 for the demolition an3 removaT-
of said struc ures.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
3. CONSIDERATION OF REFUNDING OF HRA 'BONDS:
Mr. Inman stated the HRA was being asked to do the following two things:
1. To approve Resolution No. HRA 3 -1985 which was the modified
Redevelopment Plan, which simply added increment districts
4 and 5 into the plan and made everything into one group.
2. To approve Resolution No. HRA 5 -1985 asking the City Council
to approve and adopt the modified Redevelopment Plan.
Mr. Inman stated that on March 14, the HRA will be giving the final
authorization of the bonding and on March 18, the City Council will be
giving final approval.
Mr. Inman stated Ms. Arlin Waelti of O'Connor & Hannan was at the meeting
to answer any questions and explain the document.
Ms. Waelti stated that in working with the refunding, her responsibility
was very narrow. It was an area that required a lot of intense scrutiny
of documents. The only part they were covering at the meeting was making
sure that all the prior redevelopment plans and tax increment plans were in
order for purposes of the refund. This document was the master plan. The
reason they have a document that looked like this was that under state law,
they can walk through the statute and set up the system by which they can
take tax increment from one tax increment district and use it elsewhere in
HOUSING & REDEVELOPMENT'AUTHORITY -MEETING,'FEBRUARY'14, 1985' PAGE 4
the project, .but in the statute there was nothing that was definitively
called a master plan.
Ms. Waelti stated that tax increment district #4 and #5 have been
established. The reason for the modified Redevelopment Plan was to tuck
what the HRA had validly done into a document so the master plan works
and allows those funds to flow from one tax increment district to
another. The reason she was very concerned about this document was because
tax increment financing was being very carefully scrutinized in the Legis-
lature. If she had to testify in the Legislature, she would be very
comfortable with this document.
Ms. Waelti reviewed the document with the HRA.
MOTION by Mr. Rasmussen, seconded by Ms. Svendsen, to approve Resolution
No.—WA 3 -1985, "A Resolution Modifying the Redevelopment Plan for Redevelop-
ment Project No. 1 Pursuant to the Provisions of Minnesota Statutes,
Sections 462.411 to 462.716, Inclusive, As Amended, and Modifying the Tax
Increment Financing Plans for Tax Increment Districts No. 1 Through 5, All
Located Within Redevelopment Project No. 1, Pursuant to the Provisions of
Minnesota Statutes, Section 273.71 to 273.86, Inclusive, As Amended, for
the Purpose of Refunding General Obligation Tax Increment Bonds of the
Authority ".
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
MOTION by Mr. Rasmussen, seconded by Ms. Svendsen, to approve Resolution
No.A 5 -1985, "Resolution Requesting the City Council of the City of
Fridley to Approve and Adopt the Modified Redevelopment Plan for Redevelop-
ment Project No. 1 and the Modified Tax Increment Financing Plans for the
Tax Increment Financing Districts Within Redevelopment Project No. 1 to
Facilitate the Refunding of the General Obligation Tax Increment Bonds of
the Authority ".
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Mr. Commers stated this was a job well done and he thanked Ms. Waelti
for coming to the meeting.
4. CONSIDERATION OF RESOLUTION NO. HRA 2 -1985 DESIGNATING OFFICIAL'DEPOSITORIES
.1 MK INE I G' E T' I Y:
Mr. Inman stated this resolution was started last year, and he felt they
should continue with it as it protects both the HRA and the Fridley State
Bank.
• The HRA members expressed some concern about Fridley State Bank being
designated as the depository for funds for the HRA when there are other
banks located in Fridley. Mr. Commers stated he felt they should review
and approve the designati.on and depository on an annual basis.
HOUSING & REDEVELOPMENT'AUTHORITY MEETING,'FEBRUARY'14,'1985 PAGE 5
'MOTION by Ms. Svendsen, seconded by Mr. Prieditis, to approve Resolution
No. R 2 -1985, "Resolution Designating Official Depositories for the
Fridley Housing & Redevelopment Authority ".
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
5. FINANCIAL STATEMENTS:
Mr. Inman stated the HRA had the following financial information:
1. Jan. 1, 1984 to Dec. 31, 1984, Financial Statement (unaudited)
2. Billing for City Services in the Target Project Area through
Nov. 30, 1984
3. Billing for City Services in the Target Project Area through
Dec. 31, 1984.
'LOTION by Mr. Rasmussen, seconded by Mr. Prieditis, to approve the
Btlltngs for City- Services in the Target Project Area through Nov. 30, 1984,
and Dec. 31, 1984.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
6. OTHER'BUSINESS:
a. HRA Director
Mr. Rasmussen stated he felt there was a definite conflict of interest
by having the City Manager as the HRA Director. He felt maybe the
HRA Director should be a full -time person working with the HRA but
also working with city staff to coordinate things. He just felt
a little uncomfortable with this type of situation.
Mr. Commers stated the HRA has addressed this issue a little in the
past, but it could certainly be discussed again.
Mr. Rasmussen suggested the HRA have an informal meetinq so that he
could be brought up to date on what has been discussed in the past.
The commissioners agreed to have an informal meeting at a time con-
venient to all the members.
ADJOURNMENT:
'MOTION by Mr. Rasmussen, seconded by Mr. Prieditis, to adjourn the meeting. Upon
a voice vote, all voting aye, Chairperson Commers declared the Feb. 14, 1985,
Housing & Redevelopment Authority meeting adjourned at 8:55 p.m.
Respectfully sub itted,
Lynne Saba, Recording Secretary