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HRA 05/08/1986 - 29341CITY OF FRIDLEY • HOUSING & REDEVMDPMENT COMMISSION =W, MAY 8, 1986 � Chairman Comers called the May 8, 1986, Housing & Redevelopment Authority meeting to order at 7:15 p.m. ftTo OFA Members Present: Larry Comers, Virginia Schnabel, Duane Prairie, Elmars Prieditis, Walter Rasmussen Members Absent: None Others Present: Mayor Nee Councilman Goodspeed Councilman Barnette Councilman Schneider Nasim Qureshi, HRA Director John Robertson, Connunity Development Director John Flora, Public Works Director Rick Pribyl, City Finance Director Julie Burt, Assistant Finance Officer Dave Newman, HRA Attorney Samantha Orduno, Administrative Aide Richard Mpchinski, Developer David Weir, Woodbridge Properties Gene Ernst, Architect for Woodbridge Properties Linda Fisher, Legal Counsel for Woodbridge Properties James O'Meara, O'Connor & Harman Mr. & Mrs. Lou Lundgren, Developers Paul Ruud, Anoka County Highway Engineer John Olson, Assistant County Highway Engineer Bob Roscoe, Consulting Engineer for Anoka County Bob Schroer, Bob's Produce Ranch Dick Harris, H & R Enterprises APPROVAL OF APRIL 10, 1986, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: N MCN BY MR. RASNIDSSEN, SECONDED BY MR. PRIEDITIS, TO APPROVE THE APRIL 10, 1986 HOUSING & REDEVEIAPVM AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COBS DECLARED THE MMTON CARRIED UNANIMOUSLY. 1. UNIVERSITY AVENUE CORRIDOR STUDY: Mr. Qureshi stated a meeting was held on April 24 with interested businessmen, the City staff, and four consultants regarding improvement of University 46 Avenue in order to enhance the entrance to Fridley and Anoka County. Mr. Qureshi stated tapes are available of this meeting in the event the HRA meanbers or City Council wish to review them. HOUSING & REDEVELOROU MMORITY MEETIlVG, MAY 8, 1986 PAGE 2 Mr. Qureshi stated proposals were submitted by the four consultants for the University Avenue Corridor Study and it was the consensus of those attending the meeting that Barton- ,schman Associates and Short-Elliott-Hendrickson had the most expertise in engineering, urban design, environmental management and experience in working with the Minnesota Highway Department. He stated if the HRA feels this is a high priority project for the City, it would be appropriate to hire a consultant who specializes in this area of planning, design, and upgrading. Mr. Qureshi stated Barton- Aschman is one firm that has the capabilities to undertake this project. He stated in their presentation, they felt in order for the project to be a success, it should have the support of those persons who will be affected. Mr. Qureshi stated Short- Elliott - Hendrickson was another firm who made a present- ation and would be acceptable for a project of this nature. Mr. Qureshi stated what had to be decided was if the HRA felt this was a worth- while project. He stated the estimated costs quoted for this study vere' j20', 000 to $26,000 from Barton- Aschnan and $17,000 from Short- Elliott - Hendrickson. Mr. Comers stated the BRA was interested in enhancing University Avenue and the business people were to come back with a proposal. Mr. Qureshi stated the business commmity should be involved in the planning, but any funds they may contribute shouldn't be the main concern. He felt their input and comments would be the most helpful. Mr. Comers stated he felt there was a commitment though that had been made. Mr. Bob Schroer stated a group of business people had indicated they would like University Avenue cleaned -up and would be willing to donate some funds to this project in regard to fencing, lighting, and removal of weeds. He stated, unknown to them, the City also had an interest in such an improvement. Mr. Schroer stated representatives of the business canmunity were invited to a meeting with the City staff and the consultants and they were very pleased with the presentation. He stated as far as the businesses contribution, they were speaking about $5,000 to $6,000 that could possibly be raised. He felt this would be only to clean-up the debris, get the fencing and some lighting. Mr. Qureshi stated those attending the meeting felt something should be done to improve and enhance University Avenue and to hire someone who has experience in this field. He stated the key element is working with the Highway Department and to involve the businesses and community in a plan for this project. Mr. Schroer stated the consultants who were at the meeting were developers or planners who have done work in other communities and worked with the Highway Department and city officials in designing structures and parkways. He stated it seemed Barton- Asclman had the best contacts with the Highway Department which may be the key to the whole project. HOUSING & REDEVEDHO T AUIHORITY MEETING, MAY 8, 1986_ PAGE 3 • Mr. Commers stated the BRA has always been committed to such a project. He stated, however, he thought the business people were working on a road plan and were to make a final decision on the commitment. He stated be didn't know there was another plan. Mr. Qureshi stated there is no plan by the City, except for the improvement at the Mississippi /University Avenue intersection. He stated the meeting was called to hear proposals from the consultants and to evaluate if they wished to consider any of these proposals. Mr. Rasmussen felt mare input is needed than just from the business community. Mr. Qureshi stated if a consultant is hired, input would be received from persons along University Avenue, business groups, and governmental units. He stated it would be advisable to have a Technical Advisory Committee to represent land owners and businesses throughout the planning and implementation of this process. Mr. Commers felt direction should be given to the consultant to advise them in what boundaries to work with and then come back with a plan they can afford. Mr. Qureshi felt the HRA would have control because, if the consultant came back with a plan that was too expensive, it could be prioritized, Mr. Dick Harris stated he didn't feel Mr. Qureshi was entirely wrong in his approach, but could see the HRA's concern. He felt maybe they should decide what this project would be worth to the City and put some dollar figure on a plan. Mr. Qureshi stated if the HRA hires a consultant, they would receive a plan and could decide what items they wished to include in the improvement project. He didn't feel, however, the HRA would want to restrict the consultant from pre- senting certain elements in their -plan. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRIEDITIS, TO HIRE THE FIRM OF BARTON- ASCHMAN TO UNDERTAKE THE UNIVERSITY AVENUE CORRIDOR STUDY FOR A COMPENSATION OF UP TO $26,250.00. Mr. Harris felt it was part of the process to involve residents and business people in the development of a plan. Mr. Schroer stated he thought they would develop a "Cadillac" plan and, if this could not be accomplished, they would start eliminating items. Mr. Prairie stated the HRA wouldn't be committing any certain amounts for this project, but would be discussing all possibilities when a plan is received. Councilman Goodspeed felt it may not be a good idea to ask for a "pie in the sky" plan and then have to reduce it. Mr. Qureshi stated if there is a Technical Advisory Committee and the plan was way out of line, it probably could be handled at this stage. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 8, 1986 PAGE 4 Ms. Schnabel stated she fully supports citizen participation in this study and felt it was essential to include the businesses and residents. She stated she would support the motion with that understanding. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN MyERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Qureshi stated he felt a member of the HRA should chair the Technical Ad- visory Committee along with at least four business representatives, several persons representing Hyde Park and Sylvan Hills, as well as representatives from the Highway Department, Anoka County and the City. Mr. Qureshi stated the meetings of the Technical Advisory Committee would be open to the public and anyone could attend. He stated he would look to the HRA and Council for names of anyone who may want to serve on such a committee. MOTION BY MS. SCHNABEL, SECONDED BY MR. MIRIE, TO APPROVE THE CONCEPT FOR THE ESTABLIM MELVT OF A TECHNICAL ADVISORY COMMITTEE WITH REPRESENTATION FRCM THE BUSINESSES, RESIDENTIAL AREAS, THE MINNESOTA HIGHWAY DEPARTMENT, ANOKA COUNTY HIGHWAY DEPARTMENT AND CITY STAFF. Ms. Schnabel stated she would be willing to chair this Committee as she was interested in the committee approach. Mr. Qureshi stated the committee's activities would probably take about three months with one or two meetings per month. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN CMER.S DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. MISSISSIPPI STREET Mk. Paul Ruud, Anoka County Highway Engineer, appeared before the HRA regarding the status of the Mississippi Street improvements. Mr. Rudd introduced his assistant, John Olson and the consulting engineer, Bob Roscoe. Mr. Ruud stated the County has worked with the City for a year in preparation of the plans for the improvement of the Mississippi /University Avenue inter- section. He stated there were some limitations in designing the project as far as available right -of -way. He stated there are a few points of contention that exist and asked Mr. Roscoe to review the plan. Mr. Roscoe stated the existing roadway has a three lane approach in either direction and the intersection would be widened to a four lane approach with a median and some channelization. He stated an extra lane will be provided on the west side of University for access into Holly Shopping Center. Mr. Roscoe stated on the east side, there will be a five foot sidewalk and a four foot median, which is a little smaller than the normal six feet, • HOUSING & REDEVaDEVO T AUTHORITY ME rINGG, MAY 8, 1986 PAGE 5 is Mr. Roscoe stated additional right -of -way was to be acquired on the south of Mississippi and along the Dairy Queen and Rice Creek Plaza. property. He stated there is a paving strip with concrete with trees on either end. Mr. Roscoe stated they plan to extend the water and sewer to serve the proposed development in the southwest quadrant. Mr. Rasmussen asked why the widening didn't extend further east on the north side of Mississippi. Mr. Roscoe stated they didn't feel it was warranted to have to go through the right -of -way acquisition. Mr. Rasmussen felt development is limited on that northeast corner, if the widening is not extended further east. Mr. Ruud stated they wanted to stay away from acquiring right -of -way from the private homes. Mr. Prieditis asked where the County's plan differs from the City's proposal. Mr. Ruud stated the City requested a wider median than four feet in order to plant trees. He stated there would be some trees on the west end of the project, however, they felt planting trees in a narrow median creates a safety problem. He stated he knows the City is trying to landscape this area, but wondered if it was a prudent thing to do when handling all this traffic. Mr. Qureshi stated he would agree they don't need trees - all' :the - way' p :to intersection, but some of the area would be bricked and some landscaping provided to create the environment desired. He stated the major concern is the right -of -way. Mr. Qureshi stated the critical question is if they wish to go beyond the pro- posed plan and acquire additional right -of -way to the east in the northeast quadrant. He stated this, of copse, would then involve the homes along Mississippi. He stated these residences are set back about 50 feet which exceeds the City's normal setback requirement; however, if ten feet was acquired, it would have some impact on the homes. Mr. Rasmussen stated, as proposed, the plan doesn't look too attractive for development in this northeast quadrant. Mr. Qureshi stated this is the third time this intersection has been improved and it probably should be done in order to provide enough right -of way for the turning lanes and landscaping so it wouldn't need to be redone again. Mr. Ruud stating they are receiving" estimates of over $150,000 to acquire the right -of -way needed from the Dairy Queen and Rice Creek Plaza. He stated the last time the intersection was approved, the cost for acquiring right-of-way was shared jointly by the City and County. He stated they started with an estimated cost of $200,000 and now the County's share is about $400,000 and right -of -way costs are skyrocketing. He felt maybe this should be researched a little further to see if the County and City can work together on something to fit in with the overall plans. HOUSING & REDEVEIAPMEM AMORITY, MAY 8, 1986 PAGE 6 Mr. Coroners asked how many feet was acquired in the southwest quadrant. Mr. Ruud stated it starts at 40 feet and tapers dawn to 10 feet as you go further west. He stated it affects the parking at Rice Creek Plaza by eliminating a row. Councilman Barnette stated if you take 40 feet from the Dairy Queen property, it almost wipes than out and they, in fact, lose their business. Mr. Ruud stated that is why the cost is so high. Mr. Ruud felt the County would rather do it right this time if the terms and costs could be worked out. Mr. Ruud stated on the west side of University, there are connections to streets caning out of the redevelopment area. Ms. Schnabel stated she is concerned about the access capabilities to various businesses because of the islands. Mr. Ruud stated the medians are installed to provide a protected left -turn bay. He stated it is a cannon design and businesses are finding they can live with it quite nicely. Mr. Qureshi stated the HRA members should be aware that access is blocked going east out of Holly Shopping Center because of the island. Mr. Qureshi stated the Highway Department should expose these plans to the property owners and tenants so they are fully aware of what is happening. Mr. Qureshi stated if the HRA felt they wished to pursue efforts to acquire additional right -of -way, some cost analyses could be done. Mayor Nee stated he could see this would satisfy the County's need for moving traffic, but didn't feel it benefits the City. Mr. Ruud stated the County has given consideration to the City and sidewalks will be installed on both sides and signals are bing revised with pedestrian buttons. He stated they also addressed the impact on the senior citizen housing and tried to put-those features . into.. the _project , Mayor Nee stated it makes it difficult to develop the property in the northeast quadrant when you don't have access going east. He stated he felt the County wished to protect their turning movement going north. Mr. Ruud stated the question is haw to handle the traffic problem and provide reasonable access to adjoining properties. He stated any time you provide channelization, you lose sane access. He felt everyone would like direct access, but you can't have a busy street and provide direct access. It was the concensus of the HRA members that the possibility of acquiring additional right -of -way and the costs involved should be pursued. Mr. Ruud stated he would like to have a meeting at the City Hall and invite the affected property owners and tenants to discuss the proposed plan. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 8, 1986 PAGE 7 i Mr. Ruud stated normally next year wouldn't be a problem for this improvement project to begin, but because of closing of East River Road due to culvert construction for Rice Creek and Osborne Road planned for next year, however, it ,probably would take more time if additional right -of -way needs to be acquired. 3. MOCHINSKI'S PROPOSED 19 UNIT 'TOWNHOUSE PROTECT ON OLD CENTRAL: Mr. Qureshi stated Mr. Nbchinski is proposing to construct a 19 unit townhouse on Lots 17 and 18, Block 2, Spring Valley Addition. He stated this property has some soil and drainage problems and Mr. Nbchinski is requesting some assistance from the HRA for piping the ditch and to contribute the adjoining lot to the project at no cost. Mr. Qureshi stated Mr. Nbchinski's cost for soil correction will be about $75,000 to $100,000 and his request for assistance totals about $25,000. Mr. 1Nbchinski explained his project will cost about $1,500,000 and the town- houses would sell in the $75,000 to $80,000 price range and vary from 1,100 to 1,500 square feet. Mr. Qureshi stated the HRA has provided assistance in the past to developers where there are soil and drainage problems on the property. Mr. Nbchinski stated he uus originally going to develop this property conner- cially, but traffic counts on Old Central indicate it isn't a viable retail center location. He stated realtors suggested to him that town omes be con- . structed and this would be the best use of the land. Mr. Nbchinski stated if he receives HRA approval, he would begin the process to rezone the property from C -1 to R -3. Mr. Conners asked what tax increment is captured, if the project proceeds. Mr. Qureshi stated somewhere in the neighborhood of about $50,000. /year. MOTION BY NS. SCHNABEL, SECONDED BY MR. PRAIRIE, THAT THE HRA PROVIDE ASSIST- ANCE UP TO $25,000 TO MR. MOCHINSKI FOR DEVELOPMENT OF HIS PROJECT BY (1) CONTRIBUTING THE ADJOINING LOT AT NO COST; AND (2) PAYING FOR THE COST OF PIPING THE OPEN DRAINAGE DITCH ON THE SOUTH SIDE OF THIS "SITE, SUBJECT TO OBTAINING CITY COUNCIL APPROVAL OF THE PROJECT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN CONII"lERS DECIARED THE NOTION CARRIED UNANIMOUSLY. 1) yJ '0541001 Mr. Qureshi stated the contract for redevelopment with Woodbridge Properties provides they submit a letter by May l confirming their commitment to this project. Mr. Qureshi stated they are requesting a 45 day extension to June 15, as they are experiencing delays, He stated Woodbridge applied 40 to the Pollution Control Agency for an indirect source permit and they have not received approval of this permit. HOUSING & REDEVELOPMENT AUIHORITY, MAY 8, 1986 PAGE 8 Mr. David Weir, President of the Woodbridge Financial Corporation, stated the PCA has given a verbal acceptance of the indirect source permit application, but asked to meet separately with the City and MOM on proposed conditions of the indirect source permit. He stated one condition was the upgrading of the intersection at TH 65 and West Moore Lake Drive. Mr. Weir stated one of the issues is the source of finding for the entire interchange. He stated, therefore, they wouldn't be in a position to execute an agreement where legally the City couldn't permit then to take occupancy of a building. Mr. Weir stated City staff has worked incredibly bard to get a design finalized with MnDOT. He stated they are proceeding with their plans and doing every- thing they can to remove these obstacles but it is a frustrating position. Mr. Conners asked if the interchange is where they are encountering problems. Mr. Qureshi stated, initially, before the Woodbridge development came into the picture, a study was authorized for improvement of the intersection. He stated it came to light, with application for the indirect source permit, that 'III 65 needs to be upgraded. He stated if the indirect source permit requires improvements to be in place, before additional buildings could be constructed . beyond the first phase, it tends to put a restraining affect on the development. Mr. Qureshi stated even if funding were given for this upgrading, the time requirement for getting this from MnDOT may impact on the development. Mr. Rasmussen asked the estimate for the improvement. Mr. Qureshi stated it is estimated the improvement of TH 65 would be over $1,000,000 and the West Moore Lake Drive /Old Central intersection improvement would be about $600,000. Mr. Conners stated in order for the development to proceed, someone may have to cane up with about $1,500,000. Mr. Qureshi stated this may be the require- ment of the Pollution Control Agency. Ms. Linda Fisher, Legal Counsel for Woodbridge Properties, stated they meet air quality standards for the first building to be constructed with the existing intersection, however, any additional development will probably require improvement of- the - intersection. Ms. Fisher stated once the PGA draws up the permit, there is a 30 day conment period. She stated after this period, assuming no challenge, they can proceed with their first building. Mr. Weir stated even though they can start building, they cannot sign the agreement as it wouldn't generate enough increment. 0 HOUSING & REDEVMDMP NT AMORITY, MAY 8 1986 PAGE 9 • Yx: Qureshi stated the major issue is when and how Highway 65 is improved in order, to_ accommodate the requirements of the Pollution Control'Agency. He stated he hoped to meet with the PCA tomorrow. Mr. Qureshi stated, even though the necessary approvals have not yet been possible to secure, the plans are being submitted for the HRA's review. He suggested, however, Woodbridge's request for an extension be considered until the next scheduled meeting of the HRA on June 12, 1986. MOTION BY MR. RASM ESEN, SECONDED BY M. SGMBEL TO MM THE AGREENM WITH WOODBRIDGE AND PAYMENT FOR ME FIRST PHASE OF DEVELOM !' FRCM MAY 1, 1986 TO JUNE 12, 1986. UPON A VOICE VOIE, AIL VOTING AyE, GMMM M4,EM DECIAM M MUnON CARRIED MANIMUSLY. Councilman Schneider asked if funds were available, if this solves the problem or if there is still a problem with the indirect source permit. Mr. Qureshi stated if the permit requires that, beyond the first building, they need these improvements and funds are available, it would make it easier to go to the Highway Department. Mr. Canners asked if there was the possibility the Highway Department would participate in the cost for the improvement. Mr. Flora stated the funds that could be made available for this project probably would be minimal and in the area of $300,000 to $600,000. Mr. Weir stated one of the things they hope to accomplish with their project is to create a whole new focal point for the north suburban area.. Mr. Weir introduced their architect, Mr. Ernst, who presented the landscaping plan. Mr. Ernst stated they are proposing the use of shade trees, flowering shrubs, and conifers for all year - around greenery. He stated the plan creates a strong boulevard concept with trees spaced 40 to 50 feet on center throughout the main drive. He stated there is a 40 foot buffer between the residential areas with heavy plantings of conifers, small flowering trees, shade trees, and shrubs. Mr. Ernst stated large shade trees would be planted in expansive undeveloped areas. He stated a majority of these trees would have to be reloacted as development occurs in those areas. Mr. Ernst stated the entire site wnuld be irrigated and would include seed'ng and sodding. Mr. Qureshi stated there would be extensive landscaping and the roadway and landscaping are to be part of the contracts. 0 • MMON BY MR. PRIEDITIS, SECONDED BY MR. RASM[USSEN, TO APPROVE THE DESIGN CONCEPT OF THE I&MCAPING PLAN, SUBJECT TO FINAL APPROVAL BY CITY STAFF. UPON A VOICE VOTE, ALL VOTING AYE, GW RMAN COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Comers asked, with the granting of the extension, if it was necessary to adopt the resolution approving the construction plans for phase one. He pointed out that Item 6 in the resolution states no default has occurred. He felt, technically, a default has occurred when they extended this contract to June 12. Mr. Newman felt Item 6 in reference to the default should be eliminated from the resolution. Mr. Comers asked if the plans have been checked to see that they conform to all applicable Federal, State and Local laws, ordinances, rules and regulations, Mr. Qureshi stated they comply with the building codes and other standards. MOTION BY MR. PRAIRIE, SECONDED BY M. SCHNABEL, TO ADOPT RESOLUTION NO. 6 -1986, WITH THE DELETION TO = NO. 6 IN REFERENCE TO A DEFAULT. UPON A VOICE VOTE, ALL VMNG AYE, CHAIRMAN CMIERS DECIAM THE MMON CARRIEDI UNANIMOUSLY. Mr. Weir stated, in spite of all the frustrations, the staff, in his opinion, has done an incredible job. He stated it really reaffirms to them their decision to be in Fridley. Mr. Qureshi staed a development agreement was entered into with Mr. Lundgren which provided certain contractual obligations roast be met by May 1, 1986 or the agreement became null and void. Mr. Qureshi stated a number of letters were sent to Mr. Lundgren to express concern on the timely presentation of certain items provided in the agreement. He stated Mr. Lundgren has not been able to provide some of these items such as a financing plan, construction plan, and lease agreement. Mr. Qureshi stated W. Lw-d.gren submitted a set of drawings today and indicated he has made application to the Rice Creek Watershed District and is attempting to get some commitment on the financing. He stated Mr. Lundgren, through his attorney, has requested an extension of the agreement. Mr. Qureshi stated Mr. O'Meara fran O'Connor & Haman and Mr. Newnan are pre- sent to give any implications regarding this extension request. Mr. O'Meara stated there were a number of different proposals, but this project ended up with a six story building. He stated, at the end of the year, he didn't believe Mr. Lundgren was in a position to sign what he considered to be a con - plete development agreement because he wasn't prepared to commit to a minimum market value. 14OUSING & REDEVELMM AUTHORITY. MAY 8. 1986 PAGE 11 He stated an agreement was executed, but left the basic teens blank, not only this minimum market value, but also terms of the lease. He stated the under- standing they had always conveyed to Mr. Lundgren was the HRA was willing to contribute up front, but would be looking for some payment down the road. He stated this came to the lease agreement where Mr. Lindgren would be making sane payments and purchase the underground parking ramp at fair market value. Mr. O'Meara stated the lease was never negotiated because Mr. Lundgren wasn't in a position to fill in the blanks at that time. He stated a provision was in- serted into the agreement that, if by May 1, 1986, a number of things didn't occur, and that included these unresolved issues, this agreement with Mr. Lundgren automatically would terminate and the property would be free of any obligations to hold it for this particular project. Mr. O'Meara stated the lease was redrafted in early March and wasn't acceptable to fuller VJorgage. He stated Fuller Mortgage insisted the developer be given the land and parking ramp or convey the fee title to Mr. Lundgren. He stated that concept was discussed from the beginning, but rejected because it tends to violate consumer loans which says you cannot loan more than five percent of a bond issue to a private person or else it would be taxable, He stated they didn't want the City's bond issue to be taxable. Mr. O'Meara stated the agree- ment has now expired as of May 1, 1986. Mr. Coroners asked what action would be necessary if they wanted to extend the agreement. Mr. O'Meara stated a simple way to deal with the matter, if they choose to extend the time, is to amend the May 1, 1986 date. Mr. Coroners asked if Mr. Iundgren's proposal Baas not!.legally feasible because of the tax consequences. Mr. O'Meara stated not if it has to be financed by the proceeds of tax increment bonds. Mr. Iundgren stated he has a complete set of specifications and working documents. He stated he has a legal problem and has been trying to get together with Mr, O'Meara, but they have a conflict in times. Mr. I=-) gren stated they have been to the Rice Creek Watershed District three times and hired a consultant and completed all their requirements. He stated they expect approval of their plan at the District's next meeting. Mr. Lundgren stated he doesn't have a problem with signing that agreement. It is not a question of the terms or money, it is a question of what HUD will allow in terms of their mortgage. He stated he finally got a copy of the regulations. Mr. Lundgren stated he would like his attorney, the HRA's attorney and HUD attorneys to discuss an agreement and extend the date of his contract to June 12. Mr. Lundgren stated he needed title or sanething equivalent to title. He stated if the parking ramp financing is the problem-, - he can do without it, °but needs to close this mortgage. He stated he has a good fiscal plan which he feels will work. He felt something should be able to be worked out to suit the HRA's needs and comply with HUD regulations. • L.I HOUSING & REDEVEIDRINT AUTHORITY, MAY 8, 1986 PAGE 12 Mr. Iindgren stated Fuller Mortgage will have a meeting the week of May 19 and he expects a commitment from them at this time. Mr. Qureshi stated, if it is the desire to grant Mr. li dgren an extension to June 12, staff would work with him on what needs to be done. He stated the extension could be granted and, if certain items are not completed, this agree- ment would be null and void and there wouldn't be any other extension. Mr. O'Meara stated a development agreement would have to be worked out by June 12. He stated, under the present agreement, the HRA is obligated to acquire and deliver the land on or before Septenber 1. He stated, with this delay, the BRA probably wouldn't be able to meet that deadline. Mr. I=- ,dgren stated the BRA would not be obligated to any of the dates in the agreement and these would be worked out. ;• • I' I •• II D1P �• • • • 1• 181r, I• • 1 I !'� • P ' i 1 • !! 1 D! •' M ' H' DID IDI • • ID1• 1 VI •' •' 1 1 " • ' DI`s I' 11!!'�DI " • ' •► I ' • 1, •1' P I I' • ID! • I ••; I' DIP 1 Die* 111 LTON A VOICE • iE, ALL VCTING AYE, M 1• MEM Ca41ERS DECLARED I • • N CARRIED UNANIMUSIY. At this time, 10:20 p.m., Virginia Schnabel was excused from the meeting. 6. OUTLINE OF PROJECT immVEtvam FOR THE NExr 2 -1/2 YEARS: Mr. Qureshi stated the HRA sold $11,500,000 in bonds for improvements underway and future improvements. he stated $3,400,000 is available for other projects and felt some priorities should be set. Mr. Qureshi submitted a list of different projects with very rough cost estimates and indicated that he prepared the outline just to get the HRA to prioritize the projects to be done in the next 2 - 2 1/2 years. Possible Project Rough, EstiTates Soil sorrection $ 250;000 81st /83rd & frontage 500,000 -West Moore Lk Dr & Old Central 600,000 Mississippi. Street 500,000 Trunk Highway 65 1,000,000 Moore Lake water quality 5001--000 Rice Creek Drive #TH 65 400,000 University Avenue Corridor 750,000 West Moore Lk park improvement 150,000 Senior Housing 150,000 "Junkyard "Acquisition 750,000 Miscellaneous Acquisitions 150,000 Shopping Center Vacancies 100,000 Civic Center ramps 750,000 HOUSING & REDEVEIAPNM AUIHORITY, MAY 8, 1986 PAGE 13 Mr. Qureshi stated the BRA sold $11,500,000 in bonds for improvements underway and future improvements. He stated $3,400,000 is available for other projects and felt some priorities should be set. There was discussion on the list submitted and some of the projects which the HRA felt should be given first priority were as follows: soil correction, West Moore Lake Drive & Old Central intersection, Mississippi Street improve- ment, Trunk Highway 65 improvement, University Avenue Corridor and Senior._ Housing. Another priority mentioned was drairiage -from Lake Pointe and the Moore Lake water quality. ColTmers felt the high priority is the Center City and.the HRA has a commitment to Lake Pointe so they are going to have to do what needs to be done for this project to proceed. Mr. Qureshi stated the owners of Rice Creek Plazaa have requested a meeting as they feel some action should be taken to either acquire this property or else take it out of the redevelopment area. He stated a raw of parking will be lost for this center as a result of the Mississippi Street improvement and the question arises if the BRA should proceed further to negotiate and acquire the property. Mr. Qureshi stated he felt the owners of Rice Creek Plaza may be interested in selling and asked direction from the HRA if they wanted to see that only the necessary right -of -way is acquired or the entire center. He stated the position of HRA and Council has been that they don't want to be property owners. Mr. Newnan stated he felt the owners wished the HRA to acquire their property and stated they would get back to the City with some figures. He stated staff felt they couldd'.t incur any expense of appraising the, property without approval of the BRA. It was the general concensus of the HRA that they would review any proposals from the owners of the Rice Creek Plaza, but it isn't their policy to acquire land. Mr. Qureshi stated a letter has been received from Brian and Rosemarie Crampton for the HRA to release its second mortgage against the subject property. MOTION BY MR. PRIEDITIES, SECONDED BY MR. PRAIRIE, • DENY TEE • OF BRIM AND ROSEMARIE CRAMPTION TO RELEASE THE SECOND MORTGAGE THE BRA PRESENTLY HOIDS. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COBS DECLARED THE N17TI0N CARRIED UNAN MUSLY. MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE CHECK REGISTER DATED MAY : 1986, UPON A VOICE VOTE, ALL VOT ING AYE, CHAIRAAN C"ERS DECLARED THE MrION CARRIED LUANIMUSLY. HOUSING & REDEVELAPM M AUTHORITY, MAY 8, 1986 PAGE 14 MMON BY MR. RARWSEN, SECONDED BY MR. PRAIRIE, TO ADJOURN THE H=G. UPON A VOICE VOTE, RILL VOTING AYE, CHAIRMAN COMM DECLARED THE MAY 80 1986 HOUSING & REDEVEIAPME AUTHORITY MEETING ADJOURNED AT 11:15 P.M. Respectfully submitted, Carole Haddad, Recording Secretary 0 2