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
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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 )
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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,
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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
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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
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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.
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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)
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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
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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
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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
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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
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(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