Loading...
HRA 05/12/1988 - 6519HOUSING REEEVELOPM34T AUTHORITY NEETING f AY 12, 1933 7: 00 P.M. Jock Robertson Executive Director of HRA City of Fridley AGENDA HOUSING & REDEVELORMENT AUTHORITY NTG. THURSDAY, MAY 12 1988 7: 00 P.M. Location: Council Chanber (upper level) CALL TO ORDER: RCDL CM.T.: Ayj3C5a _• OF NLTMT : `7 Housing & Redevelopment Authority Minutes: April 14, 1988 CONSIDERATION OF NSP AGREEMENT FOR THE UNDERGROUND j ELECTRICAL SYSTEMS FOR RICE CREEK ROAD .. . . . . . . .. . . . . . . . . 1 - 1A �v UPDATET 2 T FIO R REDEVELOPMENT ASSISTANCE FOR MI DW ES T VAN & Et IL NG BY .2 - 2G CONSIDERATION DE 0 MEN �PO FOR 5 H & UNIVERSITY AVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . .3 ii CONSIDERATION OF PARKING GARAGE PROJECT ADMINISTRATION BY THE CITY COUNCIL . . . . . . . . . . . . . . . . . . . . . .4 - 4A CONSIDERATION OF LEASE AGREEMENT WITH COLUMBIA PARK PROPERTIES FOR PARKING WEST OF THE ERIMY PLAZA CLINIC . . . 5 STATUS REPORT OF NSP UNDERGRO:JND POWER LINES N LAKE 6 INF MATIOJ ON LCU LUNDGREN DEVELOMM PROPOSAL . ,. . . . .7 CLA14S . . . . . . . . . . . . .. . . . . . . . . . . . . 8 OTHER BUSINESS: 1. QTY OF ERIILEY HOUSING & REDEVEL MUNT AU711a=Y MINJMS, APRIL 14, 1988 CALL TO ORDER: Acting Chairperson Meyer called the April 141 19881, Housing & Redevelopment Authority meeting to order at 7:05 p, m. RCA.T. CALL! Members Present: John Meyer, Duane Prairie, Walter Rasmussen, Virginia Schnabel (arrived 7:15 p� m. ) Members Absent: Larry Comers Others Present: Jock Robertson, Executive Director of HRA Rick Pribyl, City Finance Director Julie Burt, Asst. Finance Officer Dave Newman, HRA Attorney Jim Casserly, 215 S. 11th St., Mpls. Daniel S. Coplan, Advance Companies Lou & June Lundgren, 343 Kellogg Blvd., St. Paul Alan Rouse, 1786 Hennepin Ave. So. Kevin Rouse, 2200 First Bank Place East, Mpls. Janes Lincoln, Centennial Mortgage, Southbend, Ind. APPROVAL OF MARCH 10, 1988. R130SING & REDEVELOPMENr AUTHORITY MIN(TT'E.S: MO1!I by Mr. Rasmussen, seconded by Mr. Prairie, to approve the March 10, 1988, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CMUMD UNANIMOUSLY. IIEORMATION ON LOU LUN GMN' S PROPOSAL: Mr. Lundgren introduced Mr. James Lincoln from Centennial Mortgage in Southbend, Indiana. He stated Mr. Lincoln was the Loan Off ioer and Project Coordinator. He stated that since the Mardi meeting, they have executed the agreement with the HRA and have made an application for a mortgage ..I itment with Centennial Mortgage in Southbend, Indiana. Centennial has retained the Maxfield Research group to update their study. Maxfield has indicated that the update will be completed in three weeks or less and has indicated there is still a strong market. Centennial has also engaged another firm for appraisal for the project which will be done in the same time period. Mr. Lundgren stated the Fridley Plaza Associates group has caused 31 sets of drawings and specifications to be printed at a cost of a little over $30,000. Krause Anderson is working on the project at the present time and is in the process of taking new subbids. Those are expected to be available in 2 1/2 weeks. Krause-Anderson has indicated that because of the intense interest in the project, they expect to get better prices than those obtained in -1- December 1986. Mr. Lundgren stated a meeting was held with city staff at 10 :30 that morning attended by Mr. Robertson, Mr. Newman, Mr. Lincoln, Mr. Kevin Rouse, Mr. Alan Rouse, and himself. Three complete sets of drawings have been delivered and an application filed for a building permit with Darrel Clark, the Building Inspector. They are scheduled to meet with staff of Wednesday, May 4, at which time they expect all the preliminary cost information to be in hand, and they will then be working on the details and filling in the skeleton of the development agreement. He stated much progress has been made, things are going well, and he did not see any "glitches" at the moment. Mr. Robertson stated at the meeting that morning they worked out a rough schedule. He stated Centennial Mortgage asked for, and Mr. Newman has drafted, a letter conf inning past HRA action in giving notice of option to Mr. Lundgren for the property. Mr. Lundgren needed this letter for the HUD underwriting on the mortgage. That letter was delivered 'to Mr. Lundgren this evening. Mr. Robertson stated the next key date was approximately May 1 when they expect the market study to be updated by the Maxfield group. By the May 12 HRA meeting, staff is requesting that the developer and the financier prepare a rather thorough progress report of what they have accomplished to date. After that, the key date is the end of May when they will get some indication informally on the financing. In order to expedite the process, Qentennial is not going to go through a preliminary commitment and then a final commitment process. 9iey are going right to the process where they will make essentially a f inal commitment wihin this 75 day timef rame. With that, they hope to get a f irm , -; - itment at approximately the same time the letter of credit is due, which is the end of June. Mr. Newman stated that at the last meeting, the HRA directed staff to try to bridge the gap on financing. Staff did have a meeting with Mr. Lundgren and his consultants which was followed up with a discussion with Centennial's legal counsel. In talking to the people at Centennial Mortgage, they were encouraging in that staff believed a couple of different alternatives could be used to provide a total financing package. Staff was also encouraged in that they felt there were some avenues they could explore in securing the HRA' s interest adequately. Those were the two major issues that had to be resolved, and staff was so encouraged with the answers that, based on the HRA's direction at the last meeting, staff extended the option for an additional 90-day period. Mr. Meyer asked what role Krause Anderson would play in the whole operation. Mr. Lundgren stated they will be the general contractor who will produce the drawings exactly according to the plans and specifications for "x" amount of dollars. They will receive no interest or ownership in the projject. (Ms. Schnabel arrived at 7:15 p. n ) -2- Mr. Meyer asked if the HRA had any role in reviewing the plans and specifications in the usual course of events. Mr. Newman stated that as in all their development cunt r acts, a provision would be included of when the HRA would have the right to review the construction plans. Mr. Meyer stated if the plans and specifications are ready now, he would like the HRA to see them. Mr. Robertson stated three copies were submitted to the City that morning. Mr. Meyer asked Mr. Lincoln if he had any oomments he would like to make. Mr. Lincoln stated it was very nice to be in the City of Fridley. He stated Centennial is excited about the project. It seems to be a very viable project, but there was still a lot of work to be cone. lie application was in and all their people are working to get things done to meet the timef rames. They feel comfortable that these timef rames can be met. They will be in contact with Mr. Lundgren who in turn will inform staff and the HRA on how things are progressing. Mr. Meyer stated this was all very heartening news to the HRA, and they certainly hoped things continued to go well. 2. CONSTDEMIQU OF MOORE I= C=4QNS DF!VP.LQ=Nr &QIZ III': Mr. Robertson stated that at the last meeting, the HRA authorized staff to proceed with drafting a development agreement based essentially on six items outlined in his April 81, 1988, memo to the HRA: L $400,000 write -down 2. Landscaping maintenance agreement 3. Developers guarantee reimbursement of City cost of constructing utilities if no start of construction in 18 months. 4. Financial statements to be reviewed by HRA attorneys. 5. $ L 2 million total cost of public improvement construction by BRA. 6. BRA provides minimum landscaping of $95,000 in Rice Creek Road right --af way. Mr. Robertson stated that essentially the way this was structured was that a write -down of $400,000 is turned over to the developers at the end of this year upon substantial completion of the exterior of the building. This year they will proceed with the total construction of the landscaping and the right -of -way of the reconstructed Rice Creek Road and then over 15 years, -3- there is an assessment payback of 5600000 plus interest which amounts to approximately $665, 000. Also, he should note that the developer has filed a petition to waive the assessment hearing. Mr. Newnan stated the HRA was providing $400,000 in assistance and that assistance was essentially divided 70% to the shopping center and 30% to the racquet club. That was by agreement between both parties. The assessments will also be apportioned on that same percentage. Mr. Newman stated that at the last HRA meeting, Mr. Meyer was asking about the amount of assistance and how it relates to soil correction. Staff is not requiring the developer to provide substantiation for the amount of soil correction work. 7hey generally do not do that. Staff has no doubt that the developer is going to incur far greater than $400,000 in costs for soil correction, public utility costs, eta, and to require then to come in with docwnentation makes the process a little more cumbersome. Mr. Newman stated that with the assessment agreement, they anticipate the total improvements to be $1.2 million, of which $665j,000 will be assessments paid by the adjoining property owners. As part of the public improvements, the HRA has agreed to do certain landscaping treatments along the public right -of -way, and that the landscaping will not be less than $95,000. Also included in the maintenance agreement was that the adjoining property owners will, over a period of time, agree to maintain the right -af -way. As part of the improvements, the HRA would be putting in an irrigation system. They will agree to provide water to that irrigation system and use it for watering the properties. Mr. Newman stated one thing he considered to be a minimal risk was that f ram the construction scheduling standpoint, the HRA will need to do its work at the front end of the project as far as the right -of -way improvements. There is always the very remote risk that the HRA would go in, do the work, have the work substantially completed, and then, for whatever reason, the developer could run into some problems and not be able to start the project. Mr. Newman stated the developer has agreed that if they do not start construction within an 18 month period, they will reimburse the HRA for the cost of the public improvements to the extent the HRA is not reimbursed fran other sources (state aid funds, special assessments, etc.) . If the developer has not substantially completed the exterior of the building within the 18 month period, then they will be obligated to reimburse the HRA for unrecovered expenses. Again, the allocation is 70%/30$. Mr. Newman stated in the development contract, as in all the HRA's development contracts, they provide that the developer submit the construction documents to the HRA for review and the HRA has 30 days in which to review the documents. Historically, they used to use a 10 day period, because of the timef rames developers have, but the HRA raised conoerns that 10 days was not an adequate amount of time for review because of their having only monthly meetings. It was a question that the developer raised last week, and staff's response was that the review for this purpose and qualifying for assistance was a process separate and distinct from the -4- review process by staff for the issuance of building permits. The developer can come in, submit plans, get permits, and commence construction; but in order to qualify for assistance under this contract, the HRA is going to need to review the construction documents and give their approval. Mr. Newman stated they are trying to keep this a simple agreement. He had not included an assessment agreement. The reason he had not was because in reviewing this and in looking at the values that are projected and looking at the size of the development, they are extremely confident that the buildings will be constructed in conformance with the documents. Mr. Meyer stated he would just be concerned that they not end up in the same situation as they did with the 100 Twin Drive -in property where a development has not occurred, and in the process millions of dollars have been expended. Mr. George Applebaum stated he was one of the general partners in the project. He stated there was an extreme amount of site work to be done prior to pulling the building permits. They want to pull an excavation permit first and clear the site. The ponding areas have to be constructed before the existing drainage and ponding areas can be drained and vacated entirely. That woud also have to be substantially done before the building permits can be pulled. The Health & Racquet Club has about a 14 month construction period, of which 8 -9 months are needed just to enclose the shell, so that has to be under construction at the end of June at the latest. They should start getting tenants into the shopping center yet this f all. Mr. Meyer stated Mr. Newman had stated that it did not seem reasonable to require documentation for the necessity of soil improvements; yet, it will definitely be necessary on the part of the developer to have soil borings done prior to completing the plans and specifications. He thought it would be worthwhile to ask the developer to submit copies of the soil boring tests as a courtesy. If they are going to use the term "soil correction" in the contract, it might be appropriate to have copies of the soil correction tests. Mr. Newman stated he had no problem with the developer submitting copies of the soil correction tests to the HRA, and he was sure the developer would be willing to do that. He just wanted to get away from the developer having to document actual expenses. Ms. Schnabel stated that regarding the 18 month completion of the exterior of the building, when did that time begin? Mr. Newman stated the time begins upon execution of the development agreement which should be within a few weeks. He did not foresee any changes in the agreement. If there were any, they would be minimal in nature. If greater changes are requested f ram the developer, then they could not act on it until the next HRA meeting. Mr. Robertson stated they were proposing to have the contract administered -5- by the City again as has been cone in the past. 71he HRA has two options on haw they wish to reimburse the City for this contract: (1) on a monthly basis; or (2) in one lump sun. Mr. Rick Pribyl explained to the HRA that it was much easier for city staff if the reimbursement was on a monthly basis. Even though there was some concern on the part of the HRA, the members agreed to reimburse the City for the contract on a monthly basis. MOrIQr] by Mr. Prairie, seconded by Mr. Rasmussen, to direct the Chairperson and the Executive Director to enter into the development agreement with Moore Lake Associates. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. NOTION by Mr. Prairie, seconded by Mr. Meyer, to authorize the City Council to proceed with the $1.2 million improvements to Rice Creek Road, ST 1988 1 and 2. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDERATION OF A REQUEST FOR REDEVELOPMENT ASSISTANCE FOR MIDWEST VAN BUILDING BY FRANK ttTTI EMAN: Mr. Robertson stated that at the April 4, 1988s, City Council meeting, the City Council approved a special use permit for this property. In granting the special use permit, the City Council asked that the HRA seriously consider providing some assistance to Mr. Kitterman for improving the outside appearance of the building. The proposal is to completely renovate the eastern and southern elevation, giving it the appearance of a new building, and substantially contributing to the improved appearance of Central Avenue in this vicinity. Mr. Robertson stated that at the time the HRA agenda was prepared, they did not have the cost estimates. He received those f rom Mr. Kitterman that afternoon. Mr. Robertson distributed them to the HRA members. Mr. Robertson stated that in his cover letter dated April 14th, Mr. Kitterman stated he has budgeted approximately $60,000 to renovate the office, repair the roof, paint the exterior of the buildings, and repair the fencing. The next two pages of the exhibit showed an estimate for renovating the exterior of approximately $130,000, and the rest was for the interior at $97,000. Mr. Robertson stated staff had just received those cost figures that day, but he still needed some direction frcam the HRA at this meeting. As pointed out in his memo to the HRA dated April 7th, the HRA has provided assistance in the past in the form of a second mortgage. 7lhe most conventional thing would be to do something similar to that done for the Shorewood Inn. -6- Mr. Robertson stated Mr. Dan Coplan was at the meeting representing Mr. Ritterman who could not be at the meeting. He stated the property was purchased in April for approximately $240,000; and with the exterior improvements and the interior improvements, the total value of the property would be approximately $450,000. Mr. Dan Copt an stated Advance Company was a two division company: (1) A general contractor - they specialize in insurance reconstruction; i.e., disaster reconstruction, fire reconstruction for mobile homes, standard residential homes, - ercial property, and their major clients were in the church and school line. A major client was the Archdiocese of the metropolitan area. (2) Advance Carpet and Floors - this division was newly formed in Nov. 1987. There they direct all their business towards the commercial construction as a subcontractor in carpeting and floor coverings. One of the reasons for moving from 1800 Central Avenue was for expansion purposes. They need roan for the floor covering division. Since they direct their focus towards building contractors, they need a showroom for their clients. It will not be a showroom for the general public. They have to carry a large inventory of carpeting and floor coverings. The reason for the amount of money being put into the interior of the building was to project the quality that their customers expect to see. Along with that, they are redesigning the interior to go along with the quality of the exterior so they can project a good image to their clientele. Mr. Robertson stated that at this time, staff has not discussed any dollar amount in terms of HRA assistance. ' The closest analogy was the Shorewood Inn renovation. That was a total market value of $506,000, with a second mortgage of $70,000. The proportion for a second mortgage has generally been around a 10 :1 to 5:1 ratio. Ms. Schnabel stated the redevelopment proposed by Mr. Ritterman would certainly be a major improvement to that site which has long been an eyesore. The HRA members were in agreement that the HRA should provide some redevelonent assistance to Mr. Ritterman for the Midwest Van Building, and they directed staff to proceed in putting together some figures on the amount of assistance with similar terms to what was done for the Shorewood Inn property. Mr. Robertson stated as the HRA was aware, when the County has tax f orf eit land, they give first consideration for the use of the land to the cities. The City of Fridley is being asked to provide the land, an empty lot, to the AC(1M for an urban homestead. ACCU plans to take one of the hones along East River Road that has to be condemned because of the widening of East River Road. Their total cost to move that house to a foundation they will build on this lot and bring the house and lot up to code was approximately $25,000. They would then conduct a lottery for those candidates (families) -7- 5. RM 7. who qualify for a haze in order to get a family into a first -time home. ACCAP will handle the entire proceedings. An agency of the City (City Council or HRA) is needed to take the title f rom the County and then take the appropriate procedures to turn the property over to ACCAP. MMM by Mr. Meyer, seconded by Mr. Prairie, to approve the transfer of tax forfeit property to ACCAP to be used for a public purpose housing program as part of ACCAP's Urban Homestead Program and to direct staff to take the appropriate action. UPON A VOICE VOTE, ALL VDrING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Robertson statd that at the last HRA meeting, the HRA had requested that the bids for Lake Pointe maintenance be divided into two areas: (1) maintenance without irrigation; (2) irrigation only. Mr. Robertson stated that on page 4-C of the agenda, the operation and maintenance of the in -place irrigation system was $1,400 of the total maintenance cost of $33,350.00. This bid was prepared by Tal be r g Lawn & Landscape, Inc., and staff was recommending that the HRA enter into a contract with them for 1988 Lake Pointe maintenance. MOT,I by Mr. Prairie, seconded by Mr. Rasmussen, to enter into a contractd with Talberg Lawn & Landscape, Inc. , for 1988 Lake Pointe maintenance. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CMUMD UNANIMOUSLY. Mr. Robertson stated that as the HRA members were aware, there has been some winter erosion that needs to be repaired and reseeded. William B. Miller, Inc., has furnished the City with the lowest quote for this work of $7,500. Staff would recommend approval of this work. MQ= by Mr. Rasmussen, seconded by Mr. Prairie, to receive and approve the contract with William B. Miller, Inc., in the amount of $7,500 for winter erosion repair at the Lake Pointe site. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CMRRIED UNANIMOUSLY. Mr. Robertson stated the original design contract for Ernst Associates for landscape design services was $9,225. This was the first change order to be submitted by Ernst Associates, although Mr. Gene Ernst had stated in his March 25, 1988, mono to Mark Burch that they have put considerable more work -8- into the project for an overall total of $17,728.75. Mr. Ernst was reqesting that he be oompensated for an additional $3,100 of his total cost. Staff recommends approval cf this change order. Mr. Ernst has been very faithful in supervising the work and in making sure all plant materials were installed to specifications. MGTIGN by Mr. Rasmussen, seconded by Mr. Prairie, to approve Change Order #1 in the amount of $3,100 to Ernst Associates. UPCN A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSCN SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Robertson states! that NSP has an existing overhead power line which crosses the east side of the Lake Pointe development site. Development plans require this line be relocated and that it also be buried. NSP will relocate the line at no cost, but cannot do the work until they are furnished with a 10 ft. easement along the east and north property lines. In the agenda, page 7-A, was a map prepared by Sunde Engineering showing where the easement would be located. Mr. Robertson stated any action on this easement would have to be contingent upon approval by legal counsel. KCH!I by Mr. Rasmussen, seconded by Mr. Meyer, to grant the 10 ft. easement for NSP underground power at Lake Pointe, subject to special legal counsel approval. UPCN A VOICE VOTE, ALL VCr= AYE, VICE- CHAIRPERSCN SCENABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Robertson stated this was an information item only. At the last meeting, H & S Asphalt had asked for a change order to increase unit prices. Staff had been advised by Mr. Newman that there might be some legal question as to whether or not unit prices could be changed without a rebidding pf the whole project. There was the alternative that H & S Asphalt could continue the contract at the original bid unit prices. What staff did was allow a payment for remobilization. That has been consummated, and the work will be finished within the next couple cf months. Mr. Robertson stated this was an information item only. He stated a fence would be installed along the southern and part of the eastern boundary of the Nature Center not only to help prevent the dumping of trash and damage by four - wheel drive vehicles and motor bikes, but also to prevent potential damage to the pond. They received a favorable bid on the project and are -9- still within the $350,000 total budget allocated for Springbrook Nature Center. Mr. Robertson stated this was a similar situation to the Midwest Van Building redevelopment, although this project has not yet proceeded to the Planning Commission or the City Council. He had included a sketch of the proposed project on agenda page 11 -D. The building will be located on Hillwind Road approximately where the real estate off ice and burned -out building are in the northeast quadrant of the area. When Ms. Cheryl Stinski brought in the proposal for redevelopment of the property (half of it will require a rezoning), she also inquired about HRA assistance. He had told her he needed a letter stating what she thought her costs would be. That letter was on agenda pages 11 and 3-1-A. Mr. Robertson stated this was an information item so that the HRA was aware that Ms. Stinski would be approaching them for some assistance. He stated the HRA can direct him to proceed with this project somewhat along the same lines as what will be done for Mr. Ritterman's project. The numbers Ms. Stinski has submitted will have to be verified, and the project would be contingent upon City Council approval of the rezoning and variance. Ms. Schnabel stated that sometimes maybe the HRA should ask for what the extenuating circumstances are that makes HRA assistance necessary. In other words, what is the hardship? She stated they have not done that in the past, but maybe it is something they should think about and consider doing in the f ut ure. Mr. Robertson stated Ms. Schnabel's suggestion was a good one - -that whenever anyone comes to the HRA requesting assistance that he /she be asked f or a statement of hardship. 12• CLAIMS (1731 -1738) : MOTION by Mr. Rasmussen, seconded by Mr. Meyer, to approve the check register as submitted. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION (MUMD UNANIMOUSLY. NO= by Mr. Meyer, seconded by Mr. Prairie, to adjourn the meeting. Upon a voice vote, all voting aye, Vice - Chairperson Schnabel declared the April 14, 1988, Housing & Redevelopment Authority meeting adjourned at 9:05 R m. Respectfully submitted, L Saba Recording Secretary -10- I Engineering Sewer Water Parks Streets Maintenance MEMORANDUM TO: Jock Robertson, Executive Director - HRA FW88 -134 if FROM: Jahn G. Flora,► Public Works Director DATE: May 3, 1988 SUBJECT: NSP Underground on Rice Creek Road The City has received an agreement from NSP to revise the electrical distribution system along Rice Creek Road in the vicinity of Highway 65 to an underground service. This work is programmed to coincide with the upgrade cf Rice Creek Road scheduled for this summer's construction. The agreement is for $67,914. The work will provide underground services to the Moore Lake Commons development, Shorewood Restaurant and the St. Phillips Church. The restoration work is to be accomplished during the street const r uct i cn. All easements have been obtained except for an area for the electric transformer box on the northeast quadrant cf Highway 65 and Rice Creek Road. This box can be located by the Moore Lake Commons pylon sign and an easement obtained with the sign permit. Recommend the HRA approve and execute the (three) NSP agreements for relocating their distribution lines underground in the Rice Creek Road improvement area. JGFAs ri CITYOF MDLFY STATEMENT OF WORK REQUESTED I-n FORM 17.7012112 811 pm NORTHERN STATES POWER COMPANY April 28, 1988 19 WORK REQUESTED BY City of Fridley - HRA WORK TO BE AT Rice Creek Road - Old Central Ave to Hwy 65 ADDRESS Same as above CONSISTING OF: Removing overhead facilities along Rice Creek Road from Old Central Ave to the west side of Hwy 65. Also the line from Rice Creek Road south and west that serves Sears Outlet Store, Shorewood Lounge and St. Phillips Lutheran Church. - These overhead lines to be replaced with underground facilities along routes shown on the attached prints. - City of Fridley HRA to be responsible for all restoration. - City of Fridley HRA agrees to obtain any easements necessary for NSP facilities. The facilities installed or removed by the Company shall be the property of the Company and any payment by customer shall not entitle customer to any ownership interest or right therein. The undersigned hereby requests and authorizes the NORTHERN STATES POWER COMPANY to do the work described above, and in consideration thereof, agrees to pay Sixty Seven Thousand Nine Hundred Fourteen and 00 /100 (S 67,914.00 �, in accordance with the following terms: Payable within 30 days following notice by NSP that construction is completed' 4�a��,�� Credit Approval d. Receipt of the above amount hereby acknowledged on behalf of NSP by '12 NORTHERN STATES POWER COMPANY Customer City of Fridley HRA By By a + • + + a w + • • • + • a a a + • • + • • + + • • • • • a a • a • a • NSP Representative L. Benson Divisior$rookl yn Center NSP Proj. No FROM MLC AAM Const. $ Rem. $ Maint. $ Oper. $ Transf. $ Total $ ORIGINAL - DIVISION ACCOUNTING COPY- CUSTOMER COPY - DIVISION DISTRIBUTION ENGINEERING K M E M O R A N D U M TO: JOCK ROBERTSON, HRA EXECUTIVE DIRECTOR FROM: SAMANTHA ORDUNO, MANAGEMENT ASSISTANT SUBJECT: KITTERMAN'S REQUEST FOR HRA ASSISTANCE DATE: MAY 5, 1988 As per the HRA's request for information regarding the histroy of the level of assistance provided to development projects in Fridley, I have compiled the following information. Please note that traditionally the level of assistance has been provided based on the amount of the "minimum improvements" made to the property, not the estimated market value of the project upon completion. Development Project Amount of Min. Imp. Amount of Assistance Assitance Percentage Shorewood $590,000 $ 70,000 12% I .SLL Winfield $3,000,000 30,000 1% Vantage 4,000,000 100,000 2.5% °t Johnson Printing 1,790,000 30,000 1.7% Paschke 671,300 27,000 4$ Paschke 1,200,000 53,000 4.5% Paschke 1,000,000 30,000 3$ Springbrook 9,200,000 850,000 9$ I'~ If the HRA were to assist Ritterman at the same percentage given to Shorewood, the amount would be about $27,000 (based on the estimated minimum improvement costs of $227, 748). However, the very nature of the Ritterman redevelopment project is such that a deviation from past assistance levels may be warranted. This project promises to greatly enhance the visual appearance of the area and may very well set the tone for future quality developments. Providing a higher level of financial assistance to this project will make it possible for this business owner to significantly improve the visual quality to his building, but may also improve the chances that other businesses in the area will upgrade to the degree of quality exhibited by the Kitterman project. C,ADVANIgIA111,11, INC. April 14, 1988 City of Fridley 6431 University Av. N.E. Fridley, Mn. 55432 2 -A (612) 781 -2728 1839 Central Avenue, N.E., Minneapolis, MN 55418 Attention: Mr. Jock Robertson Commumity Development. Director Re: Property at 6400 Central Av. N.E. Dear Mr. Robertson, Enclosed please find copies of an estimate prep=ared f ,7•r otir company by the Welsh Construction Company for the exterior rennovation project at the aforementioned locatic)n. There is an additional enclosure for various exterior repairs and the interior remodeling necessary to occupy this biiilding.. The property was recognized to be in need of major repairs at. the time of the purchase negotiation. A budget amount of $60,000.00 was established to rennovate tf*ie office, repair the roof, paint the exterior of the buildings and repair the fencing. The improvement requests by your Municipality was in excess of our expectations both in work to be completed and associated costs. We are requesting that consideration be given regarding the possibility of providing financial assistance in the form of a grant. Possibly a grant with some additional preferential financing. This would enable us to complete the rennovation project. Your financial assistance will provide a top quality property setting for the standard of design character for future commercial property owners within your city. Thank you for the opportunity to submit this request. Sincerely, Frank Kitterman EXPERIENCED RECONSTRUCTION CONTRACTORS r�cwa�.i nwrw: I'1�JV /1. yL�L' PROJECT MGR: �7�IlJU3 - L SQUARE FOOTAGE: R r- NI vQ T/ Q)t.) 2 -B CODE _ ---- - - - - -- 01040 ---- - - - - -- 01050 ---- - - - - -- 01150 ---- - - - - -- 01200 ' ---- - - - - -- • 01205-_ - � 0]210 •--- - - - - -- 01215 ' ---- - - - - -- 01230 ---- - - - - -- C1300 ---- - - - - -- 01350 { ---- - - - - -- 01400 i 01410 ---- - - - - -- ` - 01420__- 01450 ---- - - - - -- 01460 ---------- .01480 - -------- 01500 ---- - - - - -- 01511 ---- - - - - -- - 01512 - -- ; 01513 ---- - - - - -- 01514 ---- - - - - -- 01515 -- - -- 01516 ---------- 01517 01518 - -- - 01520 ---------- 01523 - - -- 01526 01530 01540 ---------- 01570 01590 01600 _ 01705 _ -- 01720 018n1 01900 ---------- GEI(RAL CONDITIONS ------------------------------ Supervision Expenses j Vt ----------------- - - - - -- Surveyor /Field Engineer --------- i.00 Dumpster i (/ 2 Architectur6 Engineering - Civil -- -- Engineering - Structural Reproduction Interior Design Fuel 6 Truck ------------------------------ Small- Tools, Gas & Oil Soil Compaction Tests ------------------------------ Concrete Tests ------------------------------ Field Records /Photos -----••..-N ----------------- Insurance ------------ Bonds Construction Signage ------------------------------ Const. Facility /Job Trailer ------------------------------ Temp. Electric /NSP Charges ------ --------------------- Temp. Lights --- ------------ - - - - -- Temp. Heating /Gas Charges -- - Temp. Phone /NW Bell Charges --•-- -------------- Temp. Water ----••--.----------- - - - - -- Temp. + toilet------------ - - - - -- Temp. First Aid ----------- ----------------- Temp. Fire Protection - -------------- Winter Conditions material Temp. Enclosures Mat. & Lab. ---------------- - - - - -- Pumping 6 Material ---------*------------------ Fences Sec -------------------- urity Traffic Regulations - -- ------------------- - - - - -- Sheds ----------------------- Equipment Rental ---------------- Clean-Up - - - - -- ----- - - - - -- - Rough Hardware ---- - - - - -- Warranty - Material Misc. General Conditions -------- ---------------- - -- - -- ------------------------------ Total General Conditions ------------------------ - - - - -- LABOR _,260 33 � --- tin ,q6ey& MATERIAL _- I oo _ 250 130 - - -56U- - - -!00 250 - - -- -- - 155'-- SUBCONTRACTOR 13Zo - - - - -- - - - - - - -- - ------------- (00 TOTAL _Z960 •t3Z -v1 -- ZS 0 so Dd i i i ' l30 GJ_ (OO ---- - - - - -- ---- - - - - -- i ' ---- - - - - -- s __ saa _ ' /IOU - - - -- _ - - -- s' - -- zs o — - - - - - -- ; - - - - -- ------------- ---- - - - - -- - - -1410 - - -- ?92a_ AfWAtICE ComMAIE S fzrLpvvA--oo?Q ey,-res-4 ott, -mr.) H. G-r"L.--r'AsqoL 41-A-3 2-C 14-IZ-B b CL4-9 &I R C 4-T 60JA-11 r( i A44T L- S08 1! -TZ.TFA-1, 000 E4q ERM., 9 Z650 DemoLl I I r/ iu� OZ60 CAIP-THWOVe- � I �d li I 3 0 604 ATe: FENCE. (A 0"", LCT Smp ���I' OME75II li � !. .� I � III i I Zrxad � Z. DO, P :H S' AV(A* FAT Coylux, I -LL 165 (A C '7 OZ5 &j4tg ( ()NIT M II I 4 I . I 061 I L 1 I ! ! 1 -A 0. 300 I - LO, 10 dif 9"t4...CWA Z' Cob I q� 0-lio r-)fzlvlT, ys 07�0 17po 10 '300 6 LA S i:� LA (3 0 Im VZ05 itAWM IM 500 '7W '40 (I 4ol 3 14� P.. i Ja- i �l � I � i I, 01 3 Duo I I Dalv f r or H-11 I I I I i - - __ - i � I I_ I. I I I I ( � I i Ir I ( I �_ I I I j- _ _, r I II I i I I ' - I i ►4A•r Ips -i J-1 fT (612) 781 -2728 C14DVANG5MANIES, INC: 1839 Centml Avenue, N.E, Minneapolis, MN 55418 6400 Central Avenue N.E. Fridley, MN 55432 ESTI ATE OFFICE COMPLEX. WAREHOUSE & STORAGE BUILDINGS SECOND_STOR= OFFICE Remove carpet & pad 152 sy @ 1.50 Remove suspended ceiling & grid 1360 sf @ .25 Remove sheetrock 2848 sf @ .25 Remove & disassemble interior wall sections for re -use Remove insulation & vapor barrier 1480 sf @ .25 Install insulation 1480 sf @ .55 Install vapor barrier 1480 sf @ .25 Install partition walls 75 if @ 9.45 Install sheetrock & tape 2272 sf @ 1.35 Install wall coverings: Material 76 rolls @ 29.95 Labor 76 rolls @ 18.00 Install pre -hung doors 5 @ 186.15 Install glass partition walls 192 sf @ 30.00 Install suspended ceiling & grid 1496 sf @ 2.00 Install rear exit fire door Install glass door - conference room Install glass railing system - stairwell 19 if @ 103.00 Install storage room cabinetry 22 if @ 65.00 Install storage room counter top 11 if @ 30.00 Install secretary counter area - complete 11 if @ 90.00 Install carpet & pad: Material 160 sy @ 26.00 Labor 160 sy @ 3.50 Install oak base & shoe moldings 300 if @ 3.65 Prime walls 2272 sf @ .23 Prep walls for wallcovering Stain & finish doors 11 sides @ 25.00 Stain & finish base & shoe 300 if @ 1.30 BATHROOMS (2) 6' x_6' x 8' R & I toilets 2 @ 49.95 R & I sinks 2 @ 45.00 Wash & Clean walls & floor 456 Re -grout ceramic tile walls & Prep walls for wallcovering Install wallcovering: Material Labor 7 sf @ . 10 floor 264 sf @ 3.50 7 rolls @ 29.95 rolls @ 18.00 EXPERIENCED RECONSTRUCTION CONTRACTORS 228.00 340.00 712.00 240.00 370.00 814.00 370.00 708.75 3067.20 2276.20 1366.00 930.75 5760.00 2992.00 496.50 507.00 1957.00 1430.00 330.00 990.00 4160.00 560.00 1095.00 522.56 240.00 275.00 390.00 99.90 90.00 45.60 924.00 30.00 209.65 126.00 2 -E ELECTRICAL Install lighting 15 drop -ins @ 76.97 1154.55 Install receptacles, switches, etc. 32 openings @ 22.00 704.00 ROOF Repair roof as needed 450.00 RETAIL_$HOWROOM Remove VCT 1360 sf @ .65 884.00 Floor prep 1360 sf @ .30 408.00 Remove partition wall & door 120.00 Install soffitt for suspended ceiling 20 if @ 7.50 150.00 Install sheetrock & tape 60 sf @ 1.35 81.00 Install sheetrock, tape & feather ceiling(partition removal) 46 sf @ 1.35 62.10 Spot texture to match 45.00 Install suspended ceiling & grid 1496 sf @ 2.00 2992.00 Install carpet & pad(includes stairs) Material 172 sy @ 26.00 4472.00 Labor 172 sy @ 3.50 602.00 Paint walls 1184 sf @ .35 414.40 BATHROOM__52 ) _6__x_6'_x 8' R & I toilets 2 @ 49.95 99.90 R & I sinks 2 @ 45.00 90.00 Wash & Clean walls, ceiling & floors 528 sf @ .10 52.80 Re -grout ceramic the walls & floor 264 sf @ 3.50 924.00 Prep for wallcovering 30.00 Paint ceilings 72 sf @ .35 25.20 Install wallcovering: Material 7 rolls @ 29.95 209.65 Labor 7 rolls @ 18.00 126.00 CARPET _WAREIHOU$- E__40'_x_65'_x_20' Wash & Clean floor 2600 sf @ .10 260.00 Prime walls 4200 sf @ .23 966.00 Paint walls 4200 sf @ .35 1470.00 Install standard steel carpet storage racks Note: Based on approx 60 If, 12' depth & 12' height Used storage racks 24000.00 New $35,000- 40,000 Paint overhead doors 3 both sides 6 sides @ 120.00 720.00 Paint service doors 2 both sides 4 sides @ 25.00 100.00 ELECTRICAL Install lighting 15 drop -ins @ 76.97 1154.55 Repair lighting, furnaces & other wiring 450.00 2 -F Prime walls & ceiling 6640 sf @ .23 1527.20 Paint walls & ceiling 6640 sf @ .35 2324.00 Remove & replace 12' x 12' overhead door(wx stripped) 908.67 Wash & Clean floor 2800 sf @ .10 280.00 ELECTRICAL Repair lighting; furnaces & other wiring 350.00 STORAGE BUILDING 20' x_16_4'_x_10' Repair overhead garage doors: 8 -7' x 8' @ 30.00 240.00 12 -4' x 8' @ 22.50 270.00 Repair & reset steel divider walls in storage units 150.00 Clean -up & debris removal for individual units 20 @ 15.00 300.00 s TO8A9E x_8' Remove _BUILDIN9_OFFI9E__20'_x_18' carpet & pad 40 sy @ 1.50 60.00 Remove sheetrock, vapor barrier & insulation 608 sf @ .25 152.00 Remove suspended ceiling & grid 360 sf @ .25 90.00 MBI 1328 sf @ .12 159.36 Install insulation 608 sf @ .55 334.40 Install vapor barrier 608 sf @ .25 152.00 Install sheetrock & tape 608 sf @ 1.35 820.00 Install suspended ceiling, 10% waste 396 sf @ 2.00 792.00 Install carpet & pad: Material 53.33 sy @ 14.95 797.28 Labor 53.33 sy @ 3.50 186.66 Install vinyl cove base 76 if @ 1.35 102.60 Remove & replace locksets 3 @ 39.86 119.58 Prime walls 608 sf @ .23 139.84 Paint walls 608 sf @ .35 212.80 Wash & Clean windows 8 sides @ 4.50 36.00 LROOF Remove existing- partial Install EPDM rubber & ballast Reflash using existing material 600 sf @ 2.50 1500.00 Repair other problem areas 250.00 _ELE_CT_RIC_AL Install additional outlets 5 openings @ 22.00 110.00 Install drop -in lights 6 @ 76.97 461.82 2 -G YANS8AL_Q4ND=H$ Architectural fees & blueprints 3500.00 Dumpsters & debris removal 6 @ 450.00 2700.00 Parking lot clean -up machine sweep 450.00 Fencing - straighten, align, replace missing or broken pieces & paint _ 400.00 $97,748.47 lOUSING. and 'REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: LAWPENCE COMMERS, CHAIRMAN WANE PRAIRIE. VIRGNIA SCHNABEL W ALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY . M E M O R A N D U M TO: CHAIRMAN OOMMERS AND HRA COMMISSION MEMBERS FROM: JOCK ROBERTSON, HRA EXECUTIVE DIRECTOR SUBJECT: PROPOSED DEVELOPMENT AT 57TH AND UNIVERSITY AVENUE DATE: MAY 6, 1988 It appears that there are two competing developers interested in redeveloping the northeast quadrant of University Ave. and 57th Avenue. At this point, neither developer has provided much information as to the dollar amounts for the cost of their projects or the amount of assistance they would like to request of the HRA. It is well accepted by City staff and members of the HRA that this area represents a major gateway-into the City and therefore necessitates that we concentrate our attentions on securing a quality development for the site. This may r equ' re that the level of assistance given a developer by the HRA be in an amount higher than is consistent with past levels of assistance. Naturally, we need to see specific information from any potential developer regarding the amount of the minimum improvements in order to determine the level of increment to be generated as a payback for any assistance the HRA may provide. Additional information will be provided to you as it becomes available. SO lm Ylt \J EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 6711 -3460 FRIDLEY, MN 55432 EXT. 117 OUSING and REDEVELOPMENT AUTHORITY 4 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRAIRIE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY NEMD TO: Housing & Redevelopment Authority Members MEMO FROM: Jock Robertson, Exe cut ive Director of BRA MEMO DATE: May 6, 1988 FW7MDING: Management of Civic Center Garage Project At the November, 1987 meeting, the HRA authorized construction of the Civic Center public parking ramp with a $1.000,000 budget, see attached Resolultion HRA 7 -1987. This project will be constructed this year concurrent with the Civic Center renovation and expansion which will be roughly a $2,000,000 project. The City staff will be directing the management of both projects simul tane ously. In the past with large joint projects such as Lakepointe, we have found that the joint approval process for the inevitable alterations and change orders is cumbersome and causes delays. This is compounded by the fact that the HRA meets only monthly whereas the City Council meets twice a month. Therefore I would recommend that the HRA first review and approve the plans, --- - - - - -- - - — - - speci ications and contracts for the construction of the parking clara�e, and - --then-turn-thee- project over to the City Council to adm3 d—&e- on a bi- monthly basis. - - — - — �- The HRA would allocate the 51,000 900 d nth p9oj o�the City with the understanding hat an co �� g y sr wouY` then nsibil ity of the City and not the HRA. I will make sure that the HRA receives copies of the progress re is and any change orders on a monthly basis. aEJVdn � M -88 -121 ,vi- !, 1, V�5 h, c h? -4), b)"k o f HT sl,,'-d� , , I *-A�k EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY, MN 55432 EXT. 1 17 11 A RESOLUTION NO. BRA 7 - 1987 RESOLUTION AUTHORIZING IMPROVEMENT EXPENDITURES FOR PROJECTS WITHIN THE TAX INCREMENT DISTRICT FOR CONSTRUCTION IN 1988 WHEREAS, the BRA has reviewed improved public use and perception of the University Avenue Corridor; and WHEREAS, the BRA is concerned about the impacts of surface water quality in the North Area improvement district and the Nature Center; and WHEREAS, there is a requirement to divert some traffic off the Old Center Avenue; and WHEREAS, there is a need for parking in the Fridley Plaza area as a result of redevelopment and expansion; and WHEREAS, after discussion with the City Council, the BRA finds a need for sharing the $1 million expense for improving water quality in the Moore Lake Tax Increment District. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Fridley, that the following projects and budgets be authorized for construction in 1988: a. University Avenue Corridor - $1.5 million b. Public Parking Ramp - $1 million c. Rice Creek Road Diversion - $.6 million d. Moore Lake Water Quality - $.5 million e. North Area Ponding - $.35 million BE IT RESOLVED that the BRA staff be authorized to prepare the necessary project documents for City Council action and subsequent contract administration, PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 12TH DAY OF NOVEMBER, / 987 LAWRENCE f(. COMMERS CHAIRMAN ATTEST: 1, �0 t " 0 "ROBERTSON FjXECUTIVE DIRECTOR OUSING and * REDEVELOFMENT AU I MUM I' T COMMISSION MEMBERS: 5 LAWPENCE COMMERS, CHAIRMAN DUANE PRARE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY TO: FROM: SUBJECT: DATE: r� M E M O R A N D U M CHAIRMAN COMMERS AND HRA COMMISSION MEMBERS JOCK ROBERTSON, HRA EXECUTIVE VINZU1un LEASE AGREEMENT WITH COLUMBIA PARK PROPERTIES MAY 6, 1988 Representatives of the Columbia Park Clinic have informed me that the Clinic is not in a position at this time to expand their present building. The lease agreement between the HRA and the clinic for parking on the HRA owned property will expire on June 1, 198& The Clinic is asking that another lease agreement be drawn up w..ieh will give them parking priviledges on the same property for a period of 5 years with basically the same option to purchase and expand as was in the previous lease agreement. However, the expansion of City Hall and the construction of the parking ramp is going to necessitate the use of the lease property for City Fall and Fridley Plaza Office patron parking. If the HRA were to consider entering into a lease agreement upon completion of the Civic Center ramp, a one year lease is recommended with a termination clause which could be activated by either party at any time upon a 90 day written notice. A lease arrangement of this type would grant the '.'_RA the process of annual review of the lease payments and also give the flexibility to terminate if another development project is proposed. It may also serve to prompt the Clinic into actively pursing their expansion plans. ` ------------- EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571 -3450 FRIDLEY, MN 55432 EXT. 1 i? HOUSING and REDEVELOPMENT AUTHORITY 6 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRARE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER F OF FRIDLEY TO: Housing & Redevelopment Authority A nbers FROM: Jock Robertson, Director of HRA DATE: May 6, 1988 REGARDING: NSP Underground Pacer Lines at Lake Pointe Staff IS waiting to hear frm special legal counsel, Ray Haik, for clearance to proceed. JR: -1s M-88 -122 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571 -3450 FRIDLEY, MN 55432 EXT. 117 7 COMMISSION. MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRAIRIE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY M E M O R A N D U M 1 TO: CHAIRMAN COMMERS AND HRA COMMISSION MEMBERS FROM: JOCK ROBERTSON, HRA EXECUTIVE DIRECTOR SUBJECT: UPDATE ON LUNDGREN'S DEVELOPMENT DATE: MAY 6, 1988 Mr. Lundgren will be in attendance at the May 12, 1988 HRA meeting. It is anticipated that he will provide additional information regarding his development project at this time. SO /lm EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY, MN 55432 EXT. 117