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HRA 10/09/1986 - 29335. CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 CALL TO ORDER: Vice - Chairperson Schnabel called the October 9, 1986, Housing & Redevelopment Authority meeting to order at 7:10 p.m. ROLL CALL: Members Present: Virginia Schnabel, Duane Prairie, John Meyer Members Absent: Larry Commers, Walter Rasmussen Others Present: Jock Robertson, HRA Executive Director Nasim Qureshi, City Manager Dave Newman, HRA Attorney Rick Pribyl, Finance Director Julie Burt, Asst. Finance Officer Barry Warner, Barton - Aschman Bob Levy, 100 S. 5th Street Sherrill Kuretich, Larkin, Hoffman, Daly & Lindgren Lou Lundgren (See attached list) APPROVAL OF SEPTEMBER 11, 1986, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO APPROVE THE SEPTEMBER 11, 1986, HOUSING & REDEVELOPMENT AUTHORITY MINUTES,AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARES THE.; MOTION CARRIED UNANIMOUSLY. 1. PRESENTATION BY BARTON- ASCHMAN REGARDING THE UNIVERSITY AVENUE CORRIDOR STUDY: Mr. Robertson stated Mr. Warner of Barton - Aschman is present this evening to review a master plan for the University Avenue Corridor. He stated this plan is a result of a four month effort with the Technical Advisory Committee. He stated the Committee met seven times with the consultant, Barton - Aschman, to consider the upgrading of University Avenue. Mr. Robertson stated the primary elements of the plan include highway landscaping, intersection resurfacing, median treatments, fence re- moval and modification, key intersection treatments, and lighting. He stated the total cost to implement this plan is about $2,000,000 and, if plans proceed, it would probably be a two to five year project. He stated the improvements would significantly transform the • rural image of University Avenue from the freeway to 85th Avenue. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 2 • Mr. Robertson stated that the staff will review the plan and then submit it to the HRA and City Council for concept approval during November so priorities can be set for the actual implement- ation. Mr. Barry Warner, Senior Associate with Barton- Aschman, presented the master plan. He stated the University Avenue Corridor is representative of most trunk corridors with a Lot of different land uses abutting it. Mr. Warner stated the Technical Advisory Committee, which was established to study the corridor, consisted of business people, residents, and representatives of the County and State Highway Departments. He stated Barton- Aschman also conducted interviews with persons in the corridor to obtain their input on what they would like for the future of University Avenue. Mr. Warner stated the first task was to define the issues, analyze opportunities and discuss goals and objectives. He stated the next step was to generate some alternatives which have been defined as the mini, midi and maxi strategy and then to prepare a plan with sketches and cost estimates. He stated everyone had different feelings on what they envisioned for University Avenue. Mr. Warner stated the Minnesota Department of Transportation (PhrDOT) had concerns regarding liability and maintenance. He stated the business people wanted visibility, access and an attractive setting for their businesses. He stated the residents were concerned with screening, noise reduction and enhancing the image of the corridor. Mr. Warner stated the goals the Technical Advisory Committee (TAC) established were (1) improve community image and visual appearance; (2) create a distinct community identity; (3) treat right -of -way and property edge commensurate with planned use type; (4) provide for bicycle and pedestrian movement within or adjacent to the corridor; (5) improve visual quality of private parcels abutting the corridor; and (6) improve access from University Avenue to adjacent abutting parcels. Mr. Warner stated the plan presented this evening is the result of the work of the Technical Advisory Committee, with participation by the City staff. He stated the plan addresses the landscaping, Lighting and fencing. He stated it provides for minimal landscaping and MnDOT would provide adequate trimming once a year and maintain the ground cover by mowing three times a year. Mr. Warner stated it was felt there should be a gradual reforestation plan developed with.the private and public sector working together towards this goal. He stated one of the major constraints was that MnDOT was looking--at minimal maintenance. Mr. Warner stated the plan clearly delineates • location of trees and changes to be made in the ground cover. HOUSING & REDEVELOPMENT AUTHORITY MEETING. OCTOBER 9, 1986 PAGE 3 Mr. Warner stated in order to accentuate the principal inter- sections, there would be a double row of trees on either side and a single row of trees wherever there is a frontage road. He stated next to the frontage road, ornamental trees would be used to pro- vide a statement of color. He stated where there are residential land uses, coniferous screening would be established. He stated some coniferous trees could be planted behind major retail busi- nesses. He stated shrubs and vines may be planted to screen the existing chain link fence. He stated it was determined where there should be upper story trees, plants and shrubs, and ornamental trees and what species to utilize. Mr. Warner stated the plan involves a reseeding program. He stated, even though MnDOT would cut the grass three times a year, if it is maintained as a Lawn, it would require the City to mow about once every ten days. He stated the business people felt the grass that is there now is not attractive and the ground cover is the most distinc- tive visual element in the corridor. Mr. Warner stated it is recommended, at this time, the drainage swales be maintained, but not converted to a full urban section primarily due to the cost. He stated MnDOT did not have any interest in this area. Mr. Warner stated several lighting alternatives were considered by the TAG and recommendations made by the City staff. He stated the first consideration was there should be high level lighting placed in the median from one end of the corridor to the other. He stated single poles would be used at the south end of the corridor, with double poles in the north end. Mr. Warner stated MnDOT had some re- servations as they didn't feel University Avenue warranted this level of lighting. Mr. Warner stated another alternative was to Lower the lighting by using a 30 foot pole, with more of an architecturally treated light, on the frontage roads only. He stated this would provide an attractive setting for businesses adjacent to the frontage roads and help delineate the location of the frontage roads. He stated they attempted to light the roadway to a standard acceptable from the highway design standpoint. He stated he felt this alternative is more appropriate. Mr. Warner stated landscaping the median was discussed. He stated if this is done, a jersey barrier would have to be provided. He stated MnDOT maintains that if trees are installed in the median, cars must be protected. He stated it is recommended this idea not be pursued as it would be very costly and difficult to maintain, primarily when snow removal is necessary. Mr. Warner stated it is recommended the chain link fence abutting • commercial properties be removed, but remain in the residential uses. He stated it was felt when the existing fence goes through its life cycle, it should be replaced with vinyl -clad fencing. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9. 1986 PAGE 4 Mr. Warner stated there was a recommendation that all hard sur- faced items, whether it be signals, lights, poles, etc., to be painted a uniform dark color such as brown to blend into the land- scaping. Mr. Warner stated specific treatments for different intersections were recommended. He stated at 85th Avenue, brick and wrought iron are used to make a statement that you are entering the City of Fridley. He stated the median in the roadway is treated with the same brick or inter - locking paving system, with a backdrop of coni- ferous trees flanked on either side by wrought iron fencing and brick columns. He stated this same design was earmarked for the 57th Avenue intersection. Mr. Warner stated at the Mississippi Street and Osborne Road inter- sections, double rows of canopy trees would be provided, with colorful landscaping with flowering shrubs and trees, and the wrought iron fence with brick columns. He stated the same family-of materials would be used at all the intersections and sidewalks would be pro- vided to the bus stops. Mr. Warner stated it was recommended the reader board at the City Hall be moved to Columbia Arena. . Mr. Warner submitted cost estimates for this plan covering reseeding, reforestation, median -urban section from 69th to 85th Avenue, lighting options (median and frontage road), and fencing. The costs were further broken down for each interesection, 57th Avenue, Mississippi Street, Osborne Road and 85th Avenue. Mr. Warren stated the total estimated costs are $2,000,000 for all the improvements. Mr. Warner stated the master plan meets or surpasses the majority of the objectives of the TAC, but would take some time to accomplish. He stated it would take commitment and may involve both the public and private sector. Mr. Warren stated at the onset of this process, everyone obviously had different feelings, however, as discussions progressed, there was a lot of compromises. Mr. Qureshi asked Mr. Warner if he had estimates of on -going mainten- ance costs for these improvements. Mr. Warner stated he did not have these figures available at this time, however, several factors have to be taken into consideration such as whether this would be maintained by the public or if the private sector assumes some responsibility. He stated he didn't have specific figures at this time, but could supply them. Mr. Qureshi stated he felt it would be important to know the maintenance costs. • HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE S Mr. Qureshi stated if the concept 6f this plan is approved, he asked if the different elements contain enough detail to allow implementation over a number of years. Mr. Warner stated it is assumed the improvements would be done under the public bidding process and some detailed engineering surveys may have to be done, especially for the intersections. Ms. Schnabel stated it seemed the TAC members were most interested in the condition of the grass and fence and access to the bus shelters, particularly in the winter. She stated she knows there are a lot of maintenance costs involved and this should be a legitimate concern. Mr. Qureshi stated no such trees should be planted that would obstruct businesses. Mr. Warner. stated the plant matrix shows which canopy trees would be acceptable such as Honey Locust because they are more open and transparent in comparison to a Maple which is much more dense. Ms. Schnabel stated the last thing they would want to do is block the businesses' exposure. Mr. Prairie asked if the costs submitted were based on a "midi" plan. Mr. Warnerstated the TAC reviewed the different elements and felt this plan was, basically, a midi. Mr. Prairie asked if there is any timetable for these improvements. Mr. Warren felt if the resources were available to pursue it, it could be accomplished in a three to five year staging. He stated a five year target for the plan is reasonable. ME. Warner stated the opportunity to work with MnDOT is there as they were receptive to many of these ideas. He felt MnDOT took a much more Liberal view, when the final plan was submitted, then when the process first began. Ms. Schnabel felt it would be helpful to establish what elements of the plan would be accomplished at certain times so perhaps the business community and residential area in that section can partici- pate. She.stated it would be helpful if the business people planted the conifers and took an interest in helping to maintain the median in front of their business. Ms. Schnabel stated an area which she felt the business community wished to improve was the drainage ditches. Mr. Prairie stated it would be expensive to have underground drain- age. He also questioned how they could eliminate the cattails. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 6 Mr. Warner stated runoff water would have to be piped and this would involve a lot of agencies such as the Rice Creek Watershed District and the Department of Transportation. He stated MnDOT did not want to put in an urban section. He stated the cattails don't appear uniformly in the ditches. He felt with some regrading , water would not be standing. Then seeding may help this problem. Mr. Qureshi stated it would be no problem to eliminate the cattails, but stated they do serve a useful purpose for filtration. Ms. Schnabel stated if the chain link fence was removed on the east side of University from 57th Avenue to Mississippi Street, the grass improved,and lighting installed on the frontage road, it would visually open up the corridor. Councilman Schneider asked if an inflation factor was considered in the cost estimate. Mr. Warner stated a 10% inflation was included in the estimate. Mr. Qureshi asked if anything of this nature has been done in the metropolitan area. He felt it would be helpful to actually see how elements of the plan have been implemented. Mr. Warner stated there is a development at 98th and Lyndale in Bloomington which has similar characteristics. Mr. Qureshi asked what special elements were considered. Mr. Warner stated a variety of vertical elements were reviewed such as fountains, banners, clock tower, etc. He stated the majority of the TAC members felt they were too significant and didn't fit in with the suburban feeling. Ms. Schnabel stated she personally didn't like the banners and the clock tower idea was not well received. She felt the members wanted something a little more restrained. Ms. Schnabel stated she felt this was a quality plan which would help promote a positive image for the City. Mr. Qureshi asked if there was discussion on iahat means would be taken to maintain the grass area and if a sprinkling system was necessary. Mr. Warner stated he wouldn't recommend a sprinkling system for the corridor. He felt a good grass mixture would suffice and survive dur- ing the drier months. He stated there is also a grass that tolerates salt and would suggest this be part of the grass mixture. Mr. Meyer stated his only reservation is the gates. He stated, to him, this means do not enter and is not hospitable. He felt they would be • costly-and expensive to maintain. He felt the other elements of the plan are refreshing and would "tidy -up" the corridor. HOUSING &_ REDEVELOPMENT AUTHORITY MEETING. OCTOBER 9, 1986 PAGE 7 Ms. Schnabel stated she had some of these reservations herself. She stated there was discussion on whether these gates should be lower. She stated if they were lower, there may be a problem with children jumping over them or it may also reduce their visibility. Councilman Schneider asked if any input was received by other persons besides those serving on the Technical Advisory Committee. Ms. Schnabel stated Barton - Aschman interviewed a number of people along the corridor regarding their concerns. She stated as the Committee process:proceeded,:less people attended. She stated the impetus for this study came from the people in the north and there was really little input from them. She stated she would be sensitive if they had a lot of criticism because she felt they didn't partici- pate. She stated the feeling she got was they just wanted the cattails removed. She felt a lot more input was needed from people before a commitment is made to proceed with this plan. Mr. Prairie stated there is no question something should be done to improve the University Avenue Corridor, but he didn't think it would cost this much. Mr. Meyer felt if they spent half of this estimated amount, they could probably still have a tremendous project. Mr. Robertson stated he had a different perspective on the partici- pation. He felt participation decreased after some of the controversial items were settled. Mr. Qureshi felt there should be a hearing to involve participation by the business community and residents and receive their input, Ms. Schnabel thanked Mr. Warner for his presentation. 2. REPORT ON LAKE POINTE CORPORATE CENTER: Mr. Robertson stated the HRA has a copy of a letter written by Dave Newman to Mr. Weir, Woodbridge Properties, Inc., in which he answers several issues raised by Mr. Eric Nesset. He stated the issues involved State aid road funding, location of the proposed road, and turnback property located along Highway 65. Mr. Robertson stated Lake Pointe Drive is designated as a State aid street and Mr. Weir wished to know if they would have any additional funds going into their project by this designation. He stated Mr. Newman's answer was they would not as the City receives these funds based on a certain formula. • Mr. Robertson stated Mr. Weir's second question concerned the align- ment for a 30 mph curve at the north end of their project and wondered if this would drastically reduce their building area, Mr. Robertson HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 8 stated when the HRA approved the plat, it was known there would be a minor adjustment when the curve was engineered by the consultant. He stated when the engineering was completed, at the point ..the first building, the curve was almost at the same distance as shown in the preliminary plat. Mr. Robertson stated the third issue.raised involved the question of turnback property along Highway 65. He stated staff's position was that . as soon as the title is researched and engineering completed on the intersection with West Moore Lake Drive and Highway 65, the City would be in a position to consider turning the title over to Woodbridge. He stated this may take several months because of the process involved. Mr. Newman called the HRA's attention to a letter he had submitted to them dated September 23, 1986 regarding the interpretation of the subordination conditions in the redevelopment contract between Lake Pointe and the HRA. He stated the intent is that this is a true subordination clause. Mr. Newman outlined the scenarios contained in his letter in the event there was a foreclosure. He stated the zoning restrictions would still be in force,so whoever owned the property would have to comply. Mr. Newman stated in the last several weeks, the contractor has stated he feels there is a larger amount of peat on this site than what was disclosed in the soil tests. He stated we have taken the position that the contract was for a lump sum. Mr. Qureshi stated these issues are submitted as informational and require no action by the HRA. 3. UPDATE ON LUNDGREN'S UNIVERSITY AVENUE APARTMENT PROJECT: Mr. Qureshi, City Manager, stated the HRA entered into a development agreement with Mr. Lundgren last year. He stated the agreement pro- vided that the developer perform certain obligations by August 1, 1986 or else he would be in default. He stated there was a clause in the agreement which would allow the developer an additional 60 days to cure the default. He stated the HRA proceeded on this basis and this period ended on October 1, 1986. Mr. Qureshi stated he has indicated to the developer that the additional time given to him to cure the default has expired. He stated unless Mr. Lundgren could have come up with a firm finalicial ggmmitment,, with no stipulations other than land control, he would recommend the HRA draw on the letter of credit. He stated there no longer is any Legal relationship with the developer , the HRA can draw on the letter of credit. letter of credit. Ms. Kuretich, attorney representing Mr. Lundgren, stated she was recently retained by Mr. Lundgren to represent him in conjunction with this project. She stated she understands this project has a long history and the development agreement was in existance for a considerable period of time. She stated due to the Tax Reform Act, and the pending nature of that action, it has been difficult for any developer to put together a financing package. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 9 • She stated because of the uncertainty with not knowing what would happen in regard to the tax reform,it has been impossible to raise financing. Ms. Kuretich stated Mr. Lundgren is $1,000,000 short of the funds necessary to finance this project and he is working diligently to raise the equity. She stated since the terms of the Tax Reform Act are now known, there is some framework in which to work. She requested the HRA not draw on Mr. Lundgren's letter of credit for at least another 30 days. She stated this would not take away the HRA's ability to negotiate with other developers in the meantime. Mr. Lundgren stated he is going to Chicago next week and believed he could raise the necessary financing in 30 days. He stated he is ready to proceed as far as the construction. He stated, at the present time, he has $700,000 at risk in the project. He stated if the HRA can be indulgent for a short time more, he believed there would be a turning point. Mr. Lundgren stated he has over $240,000 invested in the plans alone and has with surveying and soil tests and, Legal fees, the amount exceeds $500,000. He stated the other $200,000 involves the letter of credit. Mr. Lundgren stated he needs $800,000 to have 100% of the financing. He stated he would borrow this amount and sell a part of the equity . to persons who purchase the zero coupon bonds. Ms. Schnabel asked Mr. Lundgren if he doesn't find someone who is interested in the zero coupon bonds, what would be the status of the project. Mr. Lundgren stated the people he is meeting with in Chicago will handle the issue, assuming a deal can be structured. He stated if he cannot come up with satisfactory financing for the total project in 32 days the HRA can cash the letter of credit. Mr. Meyer stated assuming the financing can be obtained and the project proceeds, he asked if there would be any change in the quality of the development or rents to be charged. Mr. Lundgren stated the rents are set by the market place. He stated he is working on ways to reduce the costs. He stated, however, the staff and HRA would have to approve any changes proposed. Ms. Kuretich stated when Mr. Lundgren entered into the development agreement with the HRA, it was assumed tax exempt bonds could be used. She stated the lower the interest rate, the greater the mortgage that could be obtained. She stated when the Tax Reform Act was introduced, it became impossible to use tax exempt financing for housing. She stated rent restrictions were so severe that you • couldn't charge rents high enough to pay the mortgage which means going into the conventional market at higher interest rates. • HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 6. 1986 PAGE 10 Ms. Kuretich stated Mr. Lundgren wants to go into the equity market and find the way to raise the difference between the equity he can provide and the mortgage amount available to him. She stated up until the Tax Reform Act was signed, no one could even obtain equity. Mr. Newman stated as far as the HRA's obligation to Mr. Lundgren, there is none. He stated he understands, from talking to Ms. Kure - tich, they are not contesting the fact the HRA has the right to negotiate with another developer. He stated they are only requesting the HRA not to draw on the letter of credit for 30 days. Ms. Schnabel stated the HRA's next meeting is not until November 13 so if they agreed not to draw on this letter of credit for 30 days, it would actually be over this time period. Mr. Qureshi stated if the HRA approves Mr. Lundgren's request, it should only be for 30 days to give staff time to review the proposal and submit a report for the meeting. Mr. Meyer asked what specific changes were made in the plans for this project. Mr. Lundgren stated the swimming pool area had a complicated pre -cast beam roof section with a skylight. He stated this was changed and in that area there was a stairway to the pool and a handicapped ramp. He stated they have changed the pool so it is on the same level as the party room and there is no need for the stairs or ramp. He stated they re- examined costs in order to obtain a $500,000 reduction and rebid several of the items. He stated the changes would have to be shown in detail and the HRA agree to them, if the project proceeds. Mr. Meyer stated he would take a dim view if the quality of the project was lowered. Mr. Lundgren stated he knows staff wishes a high quality building and he would provide such a building. Mayor Nee stated it didn't seem, by not drawing on the letter of credit for 30 days, to put the HRA in an adverse position. He stated the option is still open for the HRA to review any other proposals they receive. MOTION BY MR. MEYER, SECONDED BY MR. PRAIRIE, TO DEFER DRAWING ON MR. LUNDGREN'S LETTER OF CREDIT TO NOVEMBER 10, 1986. Ms. Schnabel stated the 30 days comes before the HRA's next meeting and asked Mr. Meyer if it was his intent for staff to activate this procedure. • 1A HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9. 1986 PAGE 11 Mr. Meyer stated that was not his intent. He stated it would take an official action by the HRA to activate the letter of credit. Mr. Newman stated staff would not take the necessary steps to draw on the letter of credit until an action was taken by the HRA, how- ever, staff would like to know where Mr. Lundgren stands before the HRA's next meeting. UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, ALL VOTED AYE, AND VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. UPDATE ON NEGOTIATIONS FOR ACQUISITION OF THE RICE PLAZA SHOPFING CENTER: Mr. Qureshi, City Manager, stated there has been discussion by the HRA regarding the Rice Plaza Shopping Center. He stated staff's recommendation is not to acquire property unless the HRA has a need for it. Ms. Schnabel stated in the memo the HRA received from Samantha Orduno, it was indicated that certain members of the Council supported this acquisition. She stated she didn't come away from this joint meeting with as strong a feeling. Mr. Qureshi stated if the HRA decided to acquire the property, it may have some political implications for the Council. Mayor Nee stated he does not have a political problem with the HRA owning the property, but it doesn't seem like a very good idea. Councilman Schneider stated he doesn't have a problem with the HRA acquiring this property, if they felt something is relatively imminent for development and if it is the right price. Mr. Levy, representing Rice Plaza Shopping Center, stated they have lost prospective tenants when they alert them to the possibilities of what may happen to this property. He stated Ron's Pub is out of business because of the owner's health problems. He stated a buyer for this business was lost because of the possibility of the space being taken. Mr. Levy stated, in regard to Mr. Lundgren's project, tax exempt financing is still available and being used for multiple family housing. He cited examples in Robbinsdale and Brooklyn Center where housing bonds were issued. He stated he has no idea what the differ- ences were in those projects compared to Mr. Lundgren's. Mr. Qureshi stated no one is saying there are no projects being financed under tax exempt bonds. He stated because of rent restrictions, • it would affect the quality of the project. W HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 12 • Mr. Meyer stated the question on the acquisition of this property was deferred on the basis the Lundgren project was still in abey- ance. Mr. Levy stated his client has been looking for a resolution to this issue and the matter has been pending since May. He stated if the HRA wishes to defer action, it is their prerogative, but want them to understand his client has directed him to take some action and he would file a mandamus action. He stated this type of action is expedited through the court, and would include counts of business liable. Mr. Newman stated there is no question the HRA would incur some legal fees right away, after this action is filed. He stated after 30 days, they would probably increase significantly. He stated he talked with Mr. Levy this afternoon and he recognizes that if the HRA denies his request, he would commence litigation. He stated a willingness was expressed to keep the lines of communication open in the event things changed. Mr. Prairie stated this issue has been discussed so many times that the feelings of the absent members, Mr. Rasmussen and Mr. Commers, are known. Mr. Levy stated their asking price is $1,008,000. Mr. Newman stated the County's appraisal was $974,000. Mr. Prairie stated he didn't have so much of a problem with the dollar amount, but what will happen to the property and when is the real issue. Mayor Nee asked if the HRA had funds to cover acquisition of this property. Ms. Schnabel stated if they sacrifice somewhere else. Mr. Meyer stated if the Lundgren development proceeds, it would be desirable to acquire this property. Mr. Qureshi stated if Mr. Lundgren's project had proceeded, the HRA would have the funds to acquire this property. He stated the question is if the HRA wants to acquire property where they actually don't have a project. Mr. Meyer stated he recognizes the argument that the HRA doesn't acquire property unless they have a need for it. He stated, on the other hand, this is a unique situation where an owner has felt he is aggrieved enough to get into a Legal action. Mr. Qureshi felt the decision should be made on the general policy and not the Legal issue. He stated the HRA should consider that . there are other properties in this same situation. 1C _HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 13 • Councilman Schneider asked if the HRA acquired the property, if there would be a cash flow. Mr. Levy stated the parcel includes vacant land which does not generate revenue. He stated he would have to check the rentals as there is one vacancy and another short -term lease. He stated if the HRA acquires the property, a decision would have to,be made if it was in their best interests to renew leases. MOTION BY MR. PRAIRIE, TO NOT ACQUIRE THE RICE PLAZA SHOPPING CENTER AT THIS TIME. VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION FAILED FOR LACK OF A SECOND. Mr. Levy stated his client feels used and abused by this process of the HRA. He stated discussion began in May and was deferred until August to reach an agreement on the dollar figure. He stated, in September, the item was tabled until this meeting, and now not even a motion can get passed. Mr. Levy stated the bottom line is the HRA was waiting to see what developed with Mr. Lundgren's project before this issue was addressed. He stated this is one of the most frustrating experiences his father will have in real estate. Mr. Levy stated his father built Holly Center in 1958 and then Rice Plaza, when others were building south, and tried to be a good citizen for 30 years. He stated his father was not shown the same level of respect in the HRA's response to this issue. He stated he felt the answer given this evening could have come six months ago and they would have been finished with the court process. Ms. Schnabel stated she appreciated the Levy contribution to the community. She stated this isn't an action against the Levy's, but a philosophical issue of the HRA owning property. Mr. Newman stated he felt what has happened is a number of the HRA members were philosophically opposed and, if Mr. Lundgren's project had proceeded, the HRA would have the means to purchase the property and satisfy Mr. Levy's needs. He felt it is not the question of trying to avoid the issue, but a process that was used to accomplish the goals and objectives of the HRA and, unfortunately, it failed. 5. STATUS REPORT ON BELGARDE'S UNIVERSITY AVENUE APARTMENT PROJECT: Mr. Robertson stated that a meeting was meld at the Springbrook Nature Center with the Springbrook Nature Foundation, the developer of this project and City staff. He stated the developer's plans were presented and the architectural elements reviewed along with the • ponding, drainage, and berming. • HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 14 Mr. Robertson stated the berms would be located on the project property, as well as the Nature Center property. He stated there was some degree of agreement by the Nature Center Foundation that this would enhance the center. He stated screening, land- scaping and Lot access was also discussed. Mr. Robertson stated the Foundation understands that the developer will begin the process for rezoning. He stated staff has reviewed subsequent improvements, changes in the site plan, aesthetics and landscaping and is ready to recommend approval of this project. Mr. Robertson stated the request for financing assistance made to the HRA has not changed since the last time discussions were held on this project. He stated the HRA did agree to provide assistance in the amount of $850,000 for purchase of the property which would be returned to the HRA in the form of a second mortgage. Mr. Qureshi stated the HRA had given conceptual approval of the agreement and staff is now working to finalize this agreement. He stated when this is completed, it will be brought back to the HRA for action. Ms. Schnabel asked if any response was received from the YMCA. Mr. Robertson stated the only response received was regarding the alignment of the road. 6. CONSIDERATION OF A REQUEST BY GERALD PASCHKE FOR THE HRA TO ISSUE A CERTIFICATE OF OCCUPANCY AND RELEASE $13,500 IN SOIL CORRECTION ASSISTANCE FOR LOT 4, BLOCK 4, UNIVERSITY INDUSTRIAL PARK: Mr. Qureshi, City Manager, stated Mr. Paschke's building is substantially completed, except for a few areas where items have not as yet been installed. He stated his only concern involves the driveway easements which have not been recorded. He stated if the HRA wishes to release the $13,500 for soil correction assistance and authorize staff to issue a Certificate of Completion, it should be subject to the City obtaining the driveway easements. MOTION BY MR. MEYER, SECONDED BY MR. PRAIRIE, TO APPROVE RELEASING $13,500 IN SOIL CORRECTION ASSISTANCE FOR LOT 4, BLOCK 4, UNIVERSITY INDUSTRIAL PARK, SUBJECT TO THE NECESSARY EASEMENTS BEING RECORDED AT THE COUNTY FOR THE DRIVEWAYS. THESE EASEMENTS ARE FOR 50 FEET BETWEEN LOTS 4 AND 7, AND EASEMENT TO COVER THE WESTERLY 50 FEET OF LOTS 1,2,3,4, 7 AND 8, BLOCK 4, UNVERSITY INDUSTRIAL PARK. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. • HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 15 7. CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY AND SUBTERRANEAN ENGINEERING CORPORATION FOR SOIL AND ENGINEERING SUPPORT FOR THE DEVELOPMENT OF THE LAKE POINTE CORPORATE CENTER: Mr. Robertson stated at the last meeting, the HRA approved contracts for Sunde to be the supervising engineer for the Lake Pointe develop- ment. He stated Subterranean Engineering was initially retained by Woodbridge Properties to conduct preliminary soil borings and analysis for their development site. He stated they will continue to provide engineering support for this project and, for reporting purposes, both Sunde and Subterranean prefer this be handled by a direct contract with the HRA /City. He stated the work undertaken by Subterranean, however, will be under the direction of the supervising engineer. MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO APPROVE RESOLUTION NO. HRA 19 -1986. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. CLAIMS• MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO APPROVE THE CLAIMS AS SUBMITTED. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL-DECLARED THE MOTION CARRIED UNANIMOUSLY. 9. OTHER BUSINESS: Mr. Robertson stated the Northern Mayor's Association is undertaking an analysis to promote economic development in the northern suburbs. He stated a comparison would be made involving other metropolitan regions in the United States. He stated the report would be avail- able in early February and felt it would give good background data on what is happening in the marketplace today. ADJOURNMENT MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO ADJOURN THE MEETING. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE OCTOBER 9, 1986 HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 11:05 p.m. Respectfully submitted, • Carole Haddad Recording Secretary • /` Qom. y, L� u 0,4W '15 4 z o i N ,/y � /js �m G Of �o