HRA 10/10/1985 - 29349CITY OF FRIDLEY
• HOUSING & REDEVELOPMENT AUTHORITY
MEETING
- OCTOBER 1.0�, 1.985 ...... ...... ..... . _ _ _ _.
CALL TO ORDER:
Chairperson Comers called the October 10, 1985, Housing & Redevelopment Authority
meeting to order at 7 :43 p.m.
ROLL CALL:
Members Present: Larry Commers, Elmars Prieditis, Duane Prairie
Members Absent: Carolyn Svendsen, Walter Rasmussen
Others Present: Nasim Qureshi, HRA Director
Rick Pribyl,'Acting City Clerk
Bob Barnette, City Councilman
Jim Robinson, Planning Coordinator
Dave Newman, City Attorney
Chris Wegemer, Storer Cable
Keith Hennek, Storer Cable
10 Mark Davis, 620 Mendelssohn Ave.
Jim Benson, 620 Mendelssohn Ave.
APPROVAL OF SEPTEMBER 5; 1985; SPECIAL HOUSING '& REDEVELOPMENT 'AUTHORITY'MINUTES:
Mr. Priedi:tis stated that he was listed as absent, and a couple of motions were
made by him in the minutes. He stated he was sure that all the members of the
HRA were present at the Sept. 5th meeting.
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO APPROVE THE SEPT. 5, 1985,
SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS AMENDED TO REFLECT THAT
MR. PRIEDITIS WAS PRESENT AT THE MEETING.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
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APPROVAL OF SEPTEMBER 30; 1985; SPECIAL -HOUSING' & -REDEVELOPM- ENT - AUTHORITY - MINUTES;
'MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE.THE SEPT. 34, 1985,
SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
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HOUSING' &' REDEVELOPMENT' AUTHORITY 'MEETING ','OCTOBER'10,'1985 ..... 'PAGE 2
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1. PUBLIC HEARING ON THE PURCHASE AND RESALE BY THE HOUSING'AND ,REDEVELOPMENT
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO OPEN THE PUBLIC HEARING
� PURCHASE AND RESALE BY THE HOUSING & REDEVELOPMENT AUTHORITY OF LOTS
4 AND 7 (EXCEPT THE SOUTHERLY 30 FEET THEREOF), BLOCK 4, UNIVERSITY INDUSTRIAL
,PARK.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE PUBLIC
HEARING OPEN AT 7 :45 P.M.
Mr. Qureshi stated that Mr. Paschke had come before the HRA some time ago asking .
for assistance for soil correction for the bui"ldi"ng he built on Main St. He
has finished that building and is now hoping to build on'Lots`4 and 7. Thi's
proposal is basically the same as the one for the Main St. lot. There wfll be
assistance of $13,500 on Lot 4 and $13,500 on part of Lot 7. Mr. Paschke could
not be at the meeting, but Mr. Jim Benson was at the meeting representing
Mr. Paschke.
Mr. Commers asked if soil tests had been done.
Mr. Benson stated, yes, Mr. Paschke had performed soil tests all over the area.
Currently, it is estimated to cost $70,000 to correct the soil for those two
lots.
Mr. Commers asked the size of the buildings and the approximate market value
of the two.
Mr. Benson stated one building would be approx. 15,500 sq. ft., and the other
building would be approx. 18,500 sq. ft. Market value was $600 - 900,000.
There was no one else present at the meeting who wished to give testimony
regarding this item.
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO CLOSE THE PUBLIC HEARING.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE PUBLIC
HEARING CLOSED AT 7 :55 P.M.
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO ADOPT RESOLUTION NO. HRA 13 -1985
MODIFYING THE TAX INCREMENT FINANCING PLAN FOR TAX - INCREMENT. FINANCING DISTRICT
NO. 3 (NORTH AREA) WITHIN REDEVELOPMENT PROJECT NO- 1 TO.INCLUDE INFORMATION
ABOUT INCREASED PROJECT ACTIVITIES AND APPROVING AND AUTHORIZING THE EXECUTION
• OF A CONTRACT FOR PRIVATE DEVELOPMENT WITH GERALD PASCHKE.
HOUSING & REDEVELOPMENT AUTHORITY 'MEETING,'OCTOBER'10,'1985 " PAGE 3
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
Mr. Comers stated that in terms of approval of construction plans, in
Article IV, Section 4.2, subparagraph (a), it stated: "Such Construction
Plans must be rejected in writing by the Authority withf1i 4 days of submission
or shall be deemed to have been approved by the Authority.'r
Mr. Commers stated he felt four days was too short a period of time. They,
should have a little more time to review those plans.
Mr. Prieditis and Mr. Prairie agreed.
Mr. Qureshi stated Mr. Paschke's building plans were available if the HRA
would like to review them at this time.
The HRA reviewed the plans with Jim Robinson, City Planning Coordinator, and
Jim Benson.
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, THAT THE SENTENCE REGARDING
A TIME FRAME FOR CONSTRUCTION PLANS IN ARTICLE IV, SECTION 4.2, SUBPARAGRAPH (a)
BE AMENDED AS FOLLOWS: "SUCH CONSTRUCTION PLANS MUST BE REJECTED IN WRITING
BY THE AUTHORITY WITHIN 14 DAYS OF SUBMISSION OR SHALL BE DEEMED TO HAVE BEEN
APPROVED BY THE AUTHORITY."
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO ADOPT THE CONTRACT FOR
PRIVATE DEVELOPMENT BY AND BETWEEN THE HOUSING & REDEVELOPMENT AUTHORITY FOR
THE CITY OF FRIDLEY, MINNESOTA, AND GERALD W. PASCHKE, AS AMENDED.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
2. RESOLUTION NO. HRA 14 -1985 APPROVING AN AGREEMENT FOR A TEMPORARY EASEME
Mr. Qureshi stated this was discussed at the last meeting and plans were shown
to the HRA. The Frdly Plaza Clinic would like to proceed as soon as possible
because of approaching cold weather.
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE RESOLUTION
APPROVING AN AGREEMENT FOR A TEMPORARY EASEMENT TO FRIDLEY PLAZA CLINIC FOR
PARKING PURPOSES.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
• HOUSING & REDEVELOPMENT' AUTHORITY -MEETING,'OCTOBER'10,'1985 ...... PAGE 4
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3. CONS IDERATION_' -OF.'. SETT -ING:*' PUBLIC -` HEAR -M6- M- R- jWEf1<R =`l4 "1'48 "'IN 'REGARD
Mr. Qureshi stated this was also discussed at a previous- meetiEng.
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO SET A PUBLIC HEARING
FOR NOVEMBER 14, 1985, IN REGARD TO A DEVELOPMENT AGREEMENT WITH COLUMBIA
PARK PROPERTIES.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
4. DISCUSSION REGARDING'POSSIBLE:DEVELOPMENT ON'THE'CORNER'OF'63RD,'AVENUE "AND
S
Mr. Commers stated this was also discussed at an earlier meeting. He stated
the HRA had a copy of the original letter of agreement th-e HRA entered into
with. the Fridley Office Plaza Partnership. On page 2 of that agreement was
tha question about the option relating to this lot.
Mr. Commers stated that as part of the original transaction, the -r had been given
an option until Feb. 1, 1986, authorizing and giving the HRA the opportunity
to exercise, for the sum of $10,000 plus any unpaid.property taxes as of the
. date of purchase, the right to acquire the property. If the HRA does not
exercise the option, then the redeveloper will pay to the HRA the sum of
$90,000 plus accrued interest at 10 %.
Mr. Qureshi stated that the HRA also had a letter from Gus Doty dated
Oct. 8, 1985. He stated this letter was a little different from his earlier
understanding of the situation. Mr. Doty had said he wanted to extend -the time
for six months, and he would continue to pay the extra it terest. Then, he would
have his building constructed.
Mr. Commers stated his interpretation of the letter from Gus Doty was that
Mr. Doty was asking the HRA to give up the option. The money he was going to
pay the HRA they would place on a mortgage for a year term.
Mr. Newman stated he would agree with that interpretation.
Mr. Qureshi stated maybe he should talk to Mr. Doty again to get a clearer
understanding of the situation. If he felt it was necessary for Mr, Doty to
discuss this further with the HRA, he would invite him to a meeting.
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO TABLE THE DISCUSSION ON
THE POSSIBLE REDEVELOPMENT ON THE CORNER OF 63RD AVE. AND UNIVERSITY SERVICE ROAD.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
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HOUSING' &' REDEVELOPMENT' AUTHORITY 'MEETING ','OCTOBER'10 " 1985 '' " ...........PA'GE 5
5. DISCUSSION REGARDING'COUNCILMAN'BARNETTE'S PROPOSAL'FOR'A'GOLF'COURSE
Mr. Barnette stated he attended the Community Development Commission meeting
on Tuesday where he presented the idea of the possibility of a golf course
on property wrapping around the nature center property.
Mr. Barnette stated that to give. a qufck_ history of the golf course, the whole
golf course /nature center issue went back -to 19.7(1-71. Aprpoximately one year
ago, a group of interested golfers came to him wanting to do something. They
looked in the Charter and found it would take approx. 2,500 signatures to force
a referendum for the general election.- The committee wrote a resolution to
vote on, did a mailing, and received 1,600 signatures. They were eager to go
door to door to get the rest of the needed signatures.
Mr. Barnette stated that apparently this created some interest from some other
people who did not want to get into the situation they had in 191041 and that
there should be another way. From all the information gathered in 19- 70 -71, it
definitely showed a need for a golf course in this quadrant of the metropolitan
area.
Mr. Barnette stated with that, he went to the Community Development Commission
with some drawings of land that was available. A lot of the land is substandard
. soil. One of the reasons he was before the HRA was the HRA had some condemna-
tion rights that might have to be exercised.
Mr. Barnette stated Mark Burch, Asst. Public Works Director, has talked to
Siah St. Clair, City Naturalist, about the compatibility of tfie golf course
and the nature center. Apparently, Mr. St. Clair was elated to have the golf
course as a ring around the nature center preserving the natural aesthetics.
There may be some reason to utilize the eastern half of the nature center.
Mr. Barnette stated Don Herfort, a golf architect in the Twin Cities, who was
involved in the golf course issue in 1970 -71, has been in contact with him.
He has asked Mr. Herfort to talk to Mr. Burch to see if an 18 -hole golf course
could go in on this site. All indications are that there is enough room.
Mr. Barnette stated he felt this was a great idea. He has gotten some recent
information that golf courses do make money. No golf course he knew of in the
past ten years has gone bankrupt. Golf courses do not cost the taxpayers
money, and any money made over and above the bonds being paid off and taxes,
etc., would go back into the park programs, general funds, contributing to the
community. Other things could be done on a golf course besides golf course;
for example, cross country skiiing in the winter.
Mr. Barnette stated the Community Development Commission has asked staff to
put together some preliminary figures on the total assessed value of the land
available and the cost to build a golf course. Staff will have that information
for the next Community Development Commission,meeting.
• Mr. Barnette stated he was bLefore the HRA to see if there was any-interest on
the part of the HRA.
HOUSING &'REDEVELOPMENT'AUTHORITY MEETING,'OCTOBER'10,'1985' .... .... " 'PAGE 6
Mr. Commers stated the HRA could not take any formal action at this time.
The HRA was certatnly willing to consider any proposal. He stated that once
more information has been put together, the HRA would like to be kept informed
as to what is taking place.
Mr. Prieditis stated he was not a golfer, but he licked the idea.
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6. S TOR ER'.CABLE. COMMUN. ICAT IONS .-REQUUT -TOR .'REMBLiRMENT ND RGROUND -CASLE
Mr. Commers stated that at the Sept. 5, 1985, special HRA meeting, the HRA
discussed Storer`s request for reimbursement for underground cable lines and
made a motion to deny that request.
Mr. Wegemer stated that Storer had appeared before the HRA once before request-
ing reimbursement for underground cable limes on Mississippi St., east of
University Ave. He wanted to make it clear that the request before the HRA
now was not the same situation. The HRA did deny that first request, and they
were not attempting to resurrect that issue. This request was for the second
stage of the project for next year.
Mr. Wegemer stated he realized that when they appeared before the HRA before,
their timing might have been bad,- so they were coming well in advance of the
next stage of the project.
Mr. Wegemer stated he wanted to explain the reason they were at the. meeting and
the reason the CATV Advisory Commission recommender) that Storer be reimbursed.
First of all, they were not contester g the HRA's- right to require reim-
bursement. They are just asking whether in this particular case it was fair
and just to exercise that right. The reason for this was it was not Storer
who would be paying for this work; the cost would be passed on to the cable
subscribers so essentially they are asking 39% of the population in Fridley to
underwrite the cost of this project which was a form of indirect taxation.
That was the reason the CATV Advisory Commission recommended Storer be reimbursed
just like Northwestern Bell and NSP.
Mr. Commers stated he had not realized this was the second stage of the under-
ground project.
Mr. Qureshe stated this was the underground project on the west side of
University on Mississippi. He stated that in the case of NSP, their agreement
provides that the HRA reimburse them. In the case -of Storer, the agreement
provides that the HRA does not reimburse them. So, on one hand was the matter
of legality which Storer was not contesting, and on the other hand was the
matter of fairness.
Mr. Commers asked if there was any benefit to Storer whether the lines were
above ground or underground.
• Mr. Qureshi stated, no, there was not. He thought the City Council had taken
the position that there was an agreement, and they should live by that agreement.
The HRA could make the decesion to reimburse Storer iff they wanted to. He stated
HOUSING &'REDEVELOPMENT'AUTHORITY MEETING;'OCTOBER'10 ','1985 ........ . . PAGE 7
the HRA already denied this request at their Sept. 5th-meeting. Mr. Wegemer
wanted to appear before the, HRA to explain their position as they had not
been present at the meeting when their request was denied.
Mr. Commers stated that when he acted on the motion to deny the request, he
thought they were still talking about the earlier request on the east side of
University Ave.
Mr. Pri.editis stated that had been his understanding also.
Mr. Commers stated he thought this item should be continued and discussed again
at the next meeting as the situation was a little different from the first
request. The HRA does have a contract, and he would hesitate to start operating
differently than what the contractual agreement says. It was difficult to set
that kind of precedent. The other side of it was he did see where there was
some merit to Storer's request where it was something that was being done
because of the HRA's desires to benefit the Center City redevelopment area.
Mr. Prairie stated he would agree with Mr. Commers.
Mr. Commers stated maybe a member of the CATV Advisory Commission could come
to the next meeting to verbal%.ze their feelings and hove they arrived at their
decision.
• MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO REOPEN THE CONSIDERATION
OF THE REQUEST BY STORER CABLE COMMUNICATIONS FOR REIMBURSEMENT FOR UNDERGROUND
LINES AT THE NOVEMBER 14TH MEETING.
The Commissioners agreed that a member of the CATV Advisory Commission be
invited to the Nov. 14th meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
7. APPROVAL OF THE'HOUSING'& REDEVELOPMENT'AUTHORITY'BROCHURE 'FOR'1985:
Mr. Comers stated that in his report, "Fridley, Yesterday, Today and Tomorrow ",
he would recommend that in the left column, second paragraph, the following
sentences be eliminated: "After the 1965 tornado, Fridley turned down a
$3 million urban renewal grant in favor of private initiative. Private
initiative was minimal."
Mr. Prieditis stated he felt it was very worthwhile to`'keep the citizens of
Fridley informed of the HRA's activities.
Mr. Commers stated he would support the project. It was important to try to
help people understand what is going on, and the cost was reasonable in view of
the overall picture.
• Mr. Prairie stated that the first brochure must have done a good Job-of explain-
ing things because he had not received any negative feedback-as a result of it.
''HOUSING &REDEVELOPMENT- AUTHORITY -MEETING ; - OCTOBER - 10;'1985 .. ' ........ 'PAGE 8
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE HRA BROCHURE
OR 85 AS AMENDED AND TO AUTHORIZE EXPENDITURES UP TO $2,300 BY STAFF FOR
BROCHURE COSTS, PRINTING, AND MAILING.
UPON A VOICE VOTE, ALL VOTING AYE,, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
8. CHECK REGISTER:
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITLSf TO APPROVE THE CHECK REGISTERS
DATED SEPT. 23, 1985, AND OCTOBER 9, 1985,
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
Armni IRNMFNT-
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO ADJOURN THE MEETING. UPON
A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE OCTOBER 10, 1985,
HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:19 P.M.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
Respectfully su i:tted,
ynn Saba
Recording Secretary
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