Loading...
HRA 06/09/1988 - 6520HOUSING & REUMLORME T AUTHORITY !"FETING THURSDAY, JUNE 9, 1988 7:00 PM Kick Pribyl Finance Director City of Fridley AGENDA HOUSING & REDEVFL#OPNENT AUTHORITY NIlG. THURSDAY, JUNE 9, 1988 7:00 P.M. Location: Council Chamber (upper level) CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: Housing & Redevelopment Authority Minutes: May 12, 1988 OF LOU IdMMUN PROPOSAL . . . . . . . . . . . • . . . . . . 1 - 1G CONSIDERATION OF NDC INSKI REQUEST FOR SITE IMPROVEMENTS LOAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 2C CXNSIDERATICN OF STINSKI STATEMENT OF HARDSHIP 0:)NNECTED TO REQUEST FOR ASSISTANCE FOR AN OFFICE DEVFL�OPMENT • . . . . . . . . . . . 3 - OCNSIDERATION OF PROPOSALS FOR REDEVELOPMENT OF 57TH PLACE . • • • • • • . 4 - 4E OC NSIDERATION OF AUTHORIZING $10,000 FOR TEMPORARY ASPHALT PARKING AREA WHILE FRIDL,EY PLAZA RAMP IS BEING 0CNSTRLJCI'ED . . . . . . . 5 - 5A INFORMATION ON 1°IHE CDTTAGES ", A PROPOSED TC WNHWSE PROJECT FOR ELDERLY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 - 6H ESTINJF= . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 OTHER BUSINESS: ADJOURN.+ Casserly Lave Office, P.A. 215 South 11th Street, Suite 200 . Minneapolis . Minnesota 55403 Office (612) 339 -0221 . Home (612) 897 -3569 MEMORANDUM TO: Fridley H.R.A. G' FROM: James R. Casserly RE: Lundgren Assumptions for T.I.D. DATED: June 9, 1988 Attached you wll find the following: 1. Phase I Analysis 2. Phase II Analysis 3. Phase III Analysis 4. Phase IV Analysis 5. Summary of Phases I - IV 6. Market Valuations 7. Base and Land Sales The Market Valuation and Land Sales data were suggested by Mr. Lundgren. The runs showing each each phase and the summary are structured like the previous runs except Mr. Lundgreds assumptions have been used. The only other change in structure is eleven full years of tag increment are used in each phase whereas the May 23, 1988 analysis had all phases terminating on February 1, 2002. 08- Jun -88 PHASE I 124 UNIT MID -RISE LUNDGREN ASSUMPTIONS CITY OF FRIDLEY ORIGINAL ASSESSED VALUE 131.666 PRESENT VALUE RATE TOLD HONEY) 7.227% CONSTRUCTION COSTS 3,758,511 PRESENT VALUE RATE (NEW MONEY) 10.000% ESTIMATED MARKET VALUE 0 80% 3,006,809 DEVELOPER LOAN PRINCIPAL AMOUNT 241,968 ESTIMATED ASSESSED VALUE 1,022,315 DEVELOPER LOAN INTEREST RATE 8.000% ASSESSMENT RATIO 34.000% DEVELOPER LOAN TERM (DEFERRED) 11 YEARS TAXES /UNIT (124 UNITS) 900 1988 EXPENSES: INCREMENT 6 YEAR AVERAGE HILL RATE 0.109164 ACQUISITION /IMPROVEMENTS 1,463,000 INFLATION RATE 3.000% # # # ## KKKk## K### K##### kkk# ADMIN FEES (% OF TAX INCREMENT) 5.000% k## k# k# Kk #kKK #k # # # # # #kKKk # #k # #KkkK # # # ## 8 1 86 # xk## K# K# K# KkKK## K## K##### K### KK## k# KKKKK## K# K# K# k# k# kkk#### k# k# k# k###### kK# KKkk# KK# K# KKk #Kk # # # # # # #k #K #kk #KkkK # # # # # # # ## PAGE CASSERLY LAW OFFICE FOR DISCUSSION ONLY LUNI ORIGINAL ESTIMATED ADMIN DEVELOPER PRESENT VALUE OF ASSESSED ASSESSED MILL TAX EXPENSE LOAN AVAILABLE AVAILABLE REVENUE STREAM DATE VALUE VALUE RATE INCREMENT 0 5% PAYMENTS REVENUE 7.227% 10,000% Mkt # # #tK #kk # # #KKKK # # # # ## KKKk## K### K##### kkk# K##### kk## kk# KkKK# k##### K## k# KkKkkk# k## k# k# Kk #kKK #k # # # # # #kKKk # #k # #KkkK # # # ## 8 1 86 131.666 131,666 0,109164 0 0 0 0 0 0 2 1 89 131,666 131,666 0.109164 0 0 0 0 0 0 8 1 89 131,666 131,666 0.109164 0 0 0 0 0 0 2 1 90 131,666 131,656 0.109164 0 0 0 0 0 0 8 1 90 131,666 1,022,315 0.109164 0 0 0 0 0 0 2 1 91 131,665 1,022,315 0.109164 0 0 0 0 0 0 8 1 91 131,666 1,037,650 0.109164 48,613 2,431 16,744 62,927 50,855 46,951 2 1 92 131,666 1,053,214 0.109164 48,613 2,431 16,744 62,927 49,082 44,721 8 1 92 131,666 1,069,013 0.109164 49,450 2,473 16,744 63,722 47,969 43,129 2 1 93 131,666 1,085,048 0.109164 50,300 2,515 16,744 64,529 46,882 41,596 8 1 93 131,666 1,101,324 0.109164 51,162 2,558 16,744 65,348 45,822 40,118 2 1 94 131,666 1,117,843 0.109164 52,037 2,602 16,744 66,180 44,786 38,694 8 1 94 131,666 1,134,611 0.109164 52,926 2,646 16,744 67,024 43,116 37,321 2 1 95 131.666 1,151,630 0.109164 53,828 2,691 16,744 61,880 42,789 35,998 8 1 95 131,666 1,168,905 0.109164 54,743 2,737 16,744 68,750 41426 34,723 2 1 96 131,666 1,186,438 0.109164 55,672 2,784 16,744 69,632 40,885 33,494 9 1 96 131,666 1,204,235 0.109164 56,615 2,831 15,744 70,528 39,967 32,310 2 1 97 131,666 1,222,298 0.109164 57,572 2,879 16,744 71,437 39,070 31,168 8 1 97 131,666 1,240,633 0.109164 58,543 2,927 16,744 72,360 38,195 30,067 1 98 131.666 1,259,242 0.109164 59,529 2,976 16,744 73,296 37,340 29,006 ? 1 98 131,666 1,278,131 0.109164 60,530 3,026 16,744 74,247 36,505 27,983 1 99 131,666 1,297,303 0.109164 61,545 3,077 16,744 75,212 35,690 26,997 3 1 99 131,666 1,316,762 0.109164 62,576 3,129 16,744 76,192 34,894 26,046 ? 1 0 131.666 1,336,514 0.109164 63,623 3,181 16,744 77,186 34,116 25,129 1 1 0 131.666 1,356,562 0.109164 64,685 3,234 16,744 78,195 33,357 24,246 1 1 131,666 1,376,910 0.109164 65,763 3,288 16,744 79,219 32,615 23,394 l 1 1 131,666 1,397,564 0.109164 66,857 3,343 16,744 80,258 31,891 22,572 1 2 131,666 1,418,527 0.109164 67,968 --- - - - - -- 3,398 - - - - -- 16,744 - - - - - -- 81,314 --- - - - - -- 31,183 21,780 1,263,150 63,157 368,368 1,568,360 - - - - - -- 879,493 - - - - - -- 717,448 PAGE CASSERLY LAW OFFICE FOR DISCUSSION ONLY LUNI 08-Jun -88 PHASE II 119 UNIT SENIOR HOUSING LUNDGREN ASSUr1PTIONS CITY OF FRIDLEY ORIGINAL ASSESSED VALUE 127,368 PRESENT VALUE RATE (OLD MONEY) 7.221% CONSTRUCTION COSTS 31606,958 PRESENT VALUE RATE (new MONEY) 10.000% ESTIMATED MARKET VALUE 8 80% 2,885,566 LAND SALES (49,196 SQ.FT. ® $2.00) 98,392 ESTIMATED ASSESSED VALUE 981,093 TAX EXPENSE ASSESSMENT RATIO 34.000% 1989 EXPENSES: DATE TAXESIUNIT (119 UNITS) 900 ACQUISITION /IMPROVEMENTS 886,935 6 YEAR AVERAGE MILL RATE 0.109154 REVENUE 7.227% INFLATION RATE 3,000% kk#### kkk### kk### kk### k# kk### kkkkkk######## ADMIN FEES (% OF TAX INCREMENT) 5.000% 8 1 88 127,366 ############### kk# kkkk#### kkkkkkkkkkk### kkkkk### k# k## kk# k# k## k### kkk# k##### k############ #k # # # # # # #k # # #k # #k # #kkk # # # #k # # ## PAGE 1 CASSERLY LAW OFFICE FOR DISCUSSION ONLY LUN2 ORIGINAL ESTIMATED ADMIN PRESENT VALUE.OF ASSESSED ASSESSED MILL TAX EXPENSE LAND AVAILABLE AVAILABLE REVENUE STREAM DATE VALUE VALUE RATE INCREMENT ® 5% SALES REVENUE 7.227% 10.000% ########################## kk#### kkk### kk### kk### k# kk### kkkkkk######## k########### k###### # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ## 8 1 88 127,366 127,366 0.109164 0 0 0 0 0 0 2 1 89 127,366 127,366 0.109154 0 0 0 0 0 0 8 1 89 127,366 127,366 0.109164 0 0 98,392 98,392 98,392 98,392 2 1 90 127,366 127,366 0.109164 0 0 0 0 0 0 8 1 90 127,366 127,366 0.109164 0 0 0 0 0 0 2 1 91 127.366 127,366 0.109164 0 0 0 0 0 0 8 1 91 127,366 981,093 0.109164 0 0 0 0 0 0 2 1 92 127,366 981,093 0.109164 0 0 0 0 0 0 8 1 92 127,366 995,809 0.109'164 46,598 2,330 0 44,268 35,776 33,034 2 1 93 127,366 1,010,746 0.109164 46,598 2,330 0 44,268 34,528 31,461 8 1 93 127,366 1,025,907 0.109164 47,401 2,370 0 45,031 33,899 30,479 2 1 94 127,366 1,041,296 0.109164 48,217 2,411 0 45,806 33,279 29,527 8 1 94 127,366 1,056,915 0.109164 49,044 2,452 0 46,592 32,670 28,603 2 1 95 127,366 1,072,769 0.109164 49,884 2,494 0 47,390 32,071 27,708 8 1 95 127,366 1,088,861 0.109164 50,737 2,537 0 48,200 31,481 26,839 2 1 96 127,366 1,105,194 0.109164 51,602 2,580 0 49,022 30,901 25,997 8 1 96 127,366 1,121,771 0.109164 52,480 2,824 0 49,856 30,331 25,181 2 1 97 127,366 1,138,598 0.109164 53,372 2,669 0 50,703 29,711 24,389 8 1 97 127,366 1,155,677 0.109164 54,277 2,714 0 51,563 29,220 23,622 2 1 98 121.366 1,173,012 0.109164 55,195 2,760 0 52,435 28,678 22,811 8 1 98 127,366 1,190,607 0.109164 56,127 2,806 0 53,321 28,145 22,156 2 1 99 127,366 1,208,466 0,109164 57,073 2,854 0 54,220 27,621 21,457 8 1 99 127,366 1,226,593 0.109164 58,034 2,902 0 55,132 27,107 20,779 2 1 0 127,366 1,244,992 0.109164 59,009 2,950 0 56,058 26,601 20,122 8 1 0 127,366 1,263,667 0.109164 59,998 3,000 0 56,998 26,104 19,485 2 1 1 121.366 1,282,622 0.109164 61,002 3,050 0 57,952 25,615 18,868 8 1 1 127,366 1,301,862 0.109164 62,022 3,101 0 58,921 25,135 18,269 2 1 2 127,366 1,321,389 0.109164 63,056 3,153 0 59,903 24,663 17,690 8 1 2 127,366 1,341,210 0.109164 64,106 3,205 0 60,901 24,199 17,128 2 1 3 127,366 1,361,328 0.109164 65,172 3,259 0 61,914 23,743 16,583 --- - - - - -- 1,21.1,005 --- - - - - -- --------- - - - - -- 60,550 - - - - -- - - - - -- - - - - -- 98,392 - - - - -- - - - - -- --- - - - - -- 1,248,846 --- - - - - -- --- - - - - -- - - - - - -- 739,930 - - - - - -- - - - - - -- - - - - - -- 620,644 - - - - - =- - - - - - -- PAGE 1 CASSERLY LAW OFFICE FOR DISCUSSION ONLY LUN2 08- Jun -88 LUNDGREN ASSU14PTIONS PHASE III 60,000 SQUARE FOOT COMMERCIAL CITY OF FRIDLEY ORIGINAL ASSESSED VALUE 61,748 PRESENT VALUE RATE IOID MONEY) 7.221% CONSTRUCTION COSTS 3,435,198 PRESENT VALUE RATE (NEW MONEY) 10.000% ESTIMATED MARKET VALUE 1 80% 2,748,158 LAND SALES 1286,575 SQ.FT. @ $2.00) 513,150 ESTIMATED ASSESSED VALUE 111811108 EXPENSE LAND ASSESSMENT RATIO 43.000% 1990 EXPENSES; DATE TAXES /SQ.FT. (60,000 SQ.FT.) 2.15 ACQUISITION /IMPROVEMENTS 318,450 6 YEAR AVERAGE MILL RATE 0.109164 REVENUE 7.227% INFLATION RATE 3.000% R### k#### kk##### R### ADMIN FEES 1% OF TAX INCREMENT) 5.000% k## k##### # # # # #k # # # # # # #R # # # # # # # #R # # # #RR ## #### xx## R## x#### R## k### k####### R######## RR## R##### RRRR# RRkk# k# kk# kk### Rk############### R # # # # #Rk #R # # # # # # # # # # # # # # # # # # # # ## PAGE 1 CASSERLY LAW OFFICE FOR DISCUSSION ONLY LUN3 ORIGINAL ESTIMATED ADMIN PRESENT VALUE OF ASSESSED ASSESSED MILL TAX EXPENSE LAND AVAILABLE AVAILABLE REVENUE STREAM DATE VALUE VALUE RATE INCREMENT 5% SALES REVENUE 7.227% 10,000% x# x# x##################### R### k#### kk##### R### k# k## kkk## RR# kR## k# kk## Rk# kkR#### k## k##### # # # # #k # # # # # # #R # # # # # # # #R # # # #RR ## A l 88 61,748 51,748 0.109164 0 0 0 0 0 0 2 1 89 61,748 61,748 0.109184 0 0 0 0 0 0 8 1 89 61,748 61,748 0,109164 0 0 0 0 0 0 2 1 90 61,748 61,748 0.109164 0 0 0 0 0 0 8 1 90 61.748 61,748 0,109164 0 0 573,150 573,150 573,150 573,150 2 1 91 61,748 61,748 0.109164 0 0 0 0 0 0 8 1 91 61,748 61,748 0.109164 0 0 0 0 0 0 2 1 92 61,748 61,748 0.109164 0 0 0 0 0 0 8 1 92 61,748 1,181,708 0.109'164 0 0 0 0 0 0 2 1 93 61.748 1,181,708 0.109164 0 0 0 0 0 0 8 1 93 61,748 1,199,434 0.109164 61,130 3,058 0 58,013 46,933 43,335 2 1 94 61,748 1,217,425 0.109164 61,130 31056 0 58,073 45,296 41,272 8 1 94 61,148 1,235,687 0.109164 62,097 3,105 0 58,992 44,408 39,928 2 1 95 61,748 1,254,222 0.109164 63,079 3,154 0 59,925 43,537 38,628 8 1 95 61,748 1,273,035 0.109164 64,076 3,204 0 60,872 42,683 37,370 2 1 96 61,748 1,292,131 0.109164 65,088 3,254 0 61,833 41,845 36,153 8 1 96 61,748 1,311,513 0.109164 66,114 3,306 0 62,809 41,023 34,914 2 1 97 61,748 1,331,185 0.109164 67,157 3,358 0 63,799 40,216 33,834 8 1 97 61,748 1,351,153 0.109164 68,215 3,411 0 64,804 39,425 32,730 2 1 98 61,748 1,371,421 0.109164 69,288 3,464 0 65,824 38,649 31,662 8 1 98 61,748 1,391.992 0.109164 70,378 3,519 0 66.859 37.888 30,629 2 1 99 61,748 1,412,872 0.109164 71,485 3,574 0 67,910 37,141 29,629 8 1 99 61,748 1,434,065 0.109164 72,607 31630 0 68,977 36,409 28,661 2 1 0 61,748 1,455,576 0.109164 1,3,147 3,687 0 70,060 35,691 27,725 8 1 0 61,748 1,477,409 0.109164 74,904 3,745 0 71,159 34,981 26,819 2 1 1 61,748 1,499,571 0.109164 76,078 3,804 0 72,274 34,296 25,942 8 1 1 61,748 1,522,064 0,109164 11,270 3,863 0 73,406 33,618 25,094 2 1 2 61,748 1,544,895 0.109164 78,479 3,924 0 74,555 32,954 24,273 8 1 2 61,T48 1,568,068 0,109164 79,707 31985 0 75,722 32,302 23,479 2 1 3 61,748 1,591,589 0.109164 80,953 4,048 0 16,905 31,663 22,710 8 1 3 61,748 1,615,463- 0,109164 82,218 4,111 0 78,107 31,036 21,981 2 1 4 61,748 1,639,695 0.109164 83,502 --- - - - - -- 4,175 - - - - -- 0 - - - - - -- 79,327 --- - - - - -- 30,421 --- - - - - -- 21,248 1,568,701 78,435 573,150 2,063,416 1,405,571 --- - - - - -- 1,251,213 PAGE 1 CASSERLY LAW OFFICE FOR DISCUSSION ONLY LUN3 LUNDGREN ASSUMPTIONS 08- Jun -88 CITY OF FRIDLEY PHASE IV 60,000 SQUARE FOOT COMMERCIAL /OFFICE ORIGINAL ASSESSED VALUE 226,180 PRESENT VALUE RATE (OLD MONEYI 7,227% CONSTRUCTION COSTS 3,994,416 PRESENT VALUE RATE (NEW MONEY) 10.000% ESTIMATED MARKET VALUE ® 80% 3,195,533 LAND SALES (48,816 SQ.FT. ® $2.00) 97,632 ESTIMATED ASSESSED VALUE 1,374,079 EXPENSE LAND ASSESSMENT RATIO 43.000% 1991 EXPENSES: DATE TAXES /SQ.FT. (60.000 SQ.FT.) 2.50 ACQUISITION /IMPROVEMENTS 2,179,825 6 YEAR AVERAGE MILL RATE 0.109164 REVENUE 7.227% INFLATION RATE 3.000% # # # #kkkk # #k #k # #k # # # # #k # # ## kkk # # # ## #kkkkkk #k #k #k #k ADMIN FEES 3 OF TAX INCREMENTI 5.000% 8 1 88 226,180 k # # # # # # # # ## kkk # #k # # # # # #kk # #k # #k #kk # # # # # # #kk ## kkk # # #k# kkk #k ## kkk#### k# k# k############ kk# k #k # # #k #k # # # #k # #k #kk #kk # # #k # #k ## PAGE CASSERLY LAW OFFICE FOR DISCUSSION ONLY LUN4 ORIGINAL ESTIMATED ADMIN PRESENT VALUE OF ASSESSED ASSESSED MILL TAX EXPENSE LAND AVAILABLE AVAILABLE REVENUE STREAM DATE VALUE VALUE RATE INCREMENT ® 5% SALES REVENUE 7.227% 10.000% #### k## k## k## k #k #kk # # # #kkkk # #k #k # #k # # # # #k # # ## kkk # # # ## #kkkkkk #k #k #k #k #k #kkkkkk # # #k # # #kk #k # #k #kkkkk # #kk #kkk #k # ## #kkk # # # ## 8 1 88 226,180 226,180 0.109164 0 0 0 0 0 0 2 1 89 226,180 226,180 0.109164 0 0 0 0 0 0 8 1 89 226,180 226,180 0.109164 0 0 0 0 0 0 2 1 90 226,180 226,180 0.109164 0 0 0 0 0 0 8 1 90 226,180 226,180 0.109164 0 0 0 0 0 0 2 1 91 226,180 226,180 0.109164 0 0 0 0 0 0 8 1 91 228,180 226,180 0.109164 0 0 97,632 97,632 97,632 91,632 2 1 92 226,180 226,180 0.1091.64 0 0 0 0 0 0 8 1 92 226,180 226,180 0.109164 0 0 0 0 0 0 1 1 93 226,180 226,180 0.109164 0 0 0 0 0 0 8 1 93 226,180 1,374,079 0.109164 0 0 0 0 0 0 2 1 94 226,180 1,374,079 0.109164 0 0 0 0 0 0 8 1 94 226,180 1,394,690 0.109164 62,655 3,133 0 59,522 48,104 44,415 2 1 95 226,180 1,415,611 0.109164 62,655 3,133 0 59,522 46,426 42,301 8 1 95 226.180 1,436,845 0.109164 63,780 3,189 0 60,591 45,612 41,010 2 1 96 225,180 1,458,397 0.109164 64,922 3,246 0 61,675 44,809 39,757 8 1 96 226,180 1,480,273 0.109164 66,081 3,304 0 62,176 44,018 38,539 2 1 97 226,180 1,502,478 0.109164 67,257 3,363 0 63,894 43,239 37,358 8 1 97 226,180 1,525,015 0.109164 68,451 3,423 0 85,028 42,472 36,210 2 1 98 226,180 1,547,890 0.109164 69,663 3,483 0 66,180 41,717 35,097 8 1 98 226.180 1,571,108 0.109164 70,893 3,545 0 67,346 40,973 34,015 2 1 99 226,180 1,594,675 0.109164 72,142 3,607 0 68,534 40,241 32,966 8 1 99 226,180 1,618,595 0.109164 73,409 3,670 0 69,738 39,519 31,948 2 1 0 226,180 1,642,874 0.109164 74,595 3.735 0 70,960 38,810 30,980 8 1 0 226,180 1,667,517 0.109164 76,001 3,800 0 72,201 38,111 30,001 2 1 1 226,180 1,692,530 0.109164 77,326 31886 0 73,460 37,423 29,070 8 1 1 226,180 1,717,918 0.109164 78,671 3,934 0 74,738 36,746 28,168 2 1 2 226,180 1,743.687 0.109164 80,035 4,002 0 76,034 36,080 27,292 8 1 2 226,180 1,769,842 0.109164 81,422 4,071 0 77,351 35,425 26,442 2 1 3 226,180 1,796,389 0.109164 82,829 4,141 0 78,687 34,780 25,618 8 1 3 226,180 1,823,335 0.109164 84,256 4,213 0 80,043 34,145 24,819 2 1 4 226,180 1,850,685 0.109164 85,705 4,285 0 81,420 33,521 24,044 8 1 4 226,180 1,878,446 0.109164 87,176 4,359 0 82,817 32,908 23,292 2 1 5 226,180 1,906,622 0.109164 88,669 --- - - - - -- 4,433 - - - - -- 0 - - - - - -- 84,235 --- - - - - -- 32,304 --- 22,562 1,638,691 81,935 97,632 1,654,388 - - - - -- 965,015 - - - - - -- 803,517 PAGE CASSERLY LAW OFFICE FOR DISCUSSION ONLY LUN4 N m N m N m N m N m N m N m N m N m N m N m N m N m N m N m N m N m x• 1F i! a[ r r r _. r r r r r r r r r r r r r r r r .... .r r r r r r r r — r r r r If p f0 x e i,• to to m m 10 CO CO m 'CO m CID CO Co CO m w Co Co 'Cl cta Co Co CO m m m i,• m x• tr A A W w N N r r 0 0 CO [O m m V V m m m m A A W w N N -+ r 0 0 m t0 m x• T # It N N N N A A m C" m C , m m m Cif m C11 C" LT c" L7/ C" cT cn C." cn CT VI Cif cn CT 6a1 Lf1 Cif Cif *0 C N iF N N m m -+ -+ A Ja.. A A A A A -0► A A A A A A A A ;. A A A A A A A A A A A 9F A N # tia m m m m m m m m m m m mmmm m m tT m m m m m m 01• r m O 10 r co Co N N to CO c0 c0 co cO W c0 co Co c0 co 9= iD co co co up co cO co cO co c0 cO Lo co co M m c" Z 11• m m N N co m m m m m m m m m m m cum m m cn oa m m m m m m m m m m m m x m a# o O m m da- A'O O O O O O O O O O O O O O O O O O O O O O O O O O O O it G r x x it x x• It m ar r r W w A A m CT C31 Cs1 CT C71 LT C." C." C" Cif LT CT A A A A A W W N r- r r x Y cN x x -C Ln --1 It co m A A �s m •O CO m V m m [71 A w N r r 0 Co m m V V m A W W A A C71 611 m m 1F p Co M-t # O �1 to W A V N w CT m V CO r W CT V CO r A m CO N C." O O V N O W w A A A A x r M $. •ae r O O w N N m V V m m m m i6 C CJa 9 x• x m ca -1 x• tia A w V w r A A m r to O W m C" 4• Ls1 V -� m rV CO m �J m V N m CA m CO t0 CO CO It m m 1! N A m Co O N CO O W m Cif -+ W m V 6T t0 m A W 0? A m W --J O O m C D m m x D O •a! N m r to V -+ m V W til m m m m m m [o N O tf1 N w A A N O m O t0 CO 0 0 0 0 x iF x 9t '14 x x• x G O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 1h x . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r r r r r r r r r r r r r r r r r ..� r r r r r ..+ r r G O O O O O O O O O O O O O O O O O O O O p O O O ;5'. O O O O O O O O co to to 12 to to m co to co to co ca to m to tO to 20 tO T Lv to m to to to to to T tP T T to x m r x x # oa Qa m cm m oa ca oa o1 oa oa oa oa o1 oa oa oa ora oa oa cn os oa oa m era Qa oa oa 01 co o/ oa oa x x P A A A A A A 4. A A A A A A A A A A A A P. A Of #' x # It x f 1a 1 # H x 1 _ x Z at t]n 1 N N N N N N N N N N N N N N N N IV N -n # A x m 1 OD m m ;-3.m N N m m m V V m m tJ1 C71 A A A W w N N m m to sa A A x• 9 -1 x 1 m �t co Oa m C11 LO A Q CT -+ 0a N �t W t0 m r V w to m r !JD m m m m x 1T1 Y /F 1 x = rt x Ua 1 m r N P ap N Cal m r m O m N Co M A W IV N w A V w m m O m m x R1 x P 1 OI V O V t>7 w A N m m V N A" V m Lii CO m w j'. N m CO Co A -+ 4 Z x V 1 c0 0a •-J A A CJf O O to m A m C71 m Cal [71 V O W CM CT N A US m to W W 0 0 0 0 0 0 IB --1 # # x # x N 1 x. m x m 1 14 m X A x P 1 A P m m r r A A A w w w W N N N N N r r m �I A A N N x -v v x I t v. m x x O 1 A• w A w A N A N 0 V CT W -+ m m J>•. N O m m A w O m m m A A x CR Z F-t 11 A m --1 A 0 V m w r CO m V m m m m -1 cap m m A O W W it ca g •et co A r N m A A m A A V N m t0 CT tJ1 N -+ -� 0 0 0 0 0 0 1F T in CJs x # C x x 3 1 x # a 3. O # 3 1 m 11 a 1 va x = m x —< w 1 r Z- ft r r r r r r r r r r r r r r r r r -/ Co x• M T # -t --+ 1 m m m _aaa m m m mmm m m m m m m m m m m m A w m 1a m r # A A A A A A A t► A A A A A A A A A A A O c0 IF [—I1 m x x I O CD 4- A A A A A A? A A A A A A A A -P. A A m O O N O O *t p lt Of •F x q7 1 r 1P x m M x co i tGa 1 to A V m x• O .Ca 1 m O I G 1 1a1 cs+ m CO Ir m Z x V 1 ,• - - I - x= v x x O 1 O tss Co P. x• O x 7O t.a 1 r j w CO # C x• L/s w i cs1 O sn x w x• sxc 1xlr z 1 x x _ x m x m caa 1 N IV N N N N r l N N N N N N N N N N N -+ r r r t0 m m x 6 0 x r to m m V V V m m cn C►1 A Gw A w C J w V m 0 0 m N V W V x m --1 x tT 1 P 1�a G m V W r V N m A 0 C71 r V W t.c/ Lit N m A N O m m V N C71 m m t0 , # c r x O 1 N m 4 t r CJt t0 m w Co m IV O m V V V m m r A V w O A V CO CO Lit V W co iF T x 1 w r A t)1 O -J O N O bit m W V V w CT W m m r r w Cif CT LO CO N f- N N CO x t/s x �, 1 tJ• -J --t O m A V W C11 N A m V m m bat W t0 w N V O t0 W V O --a t..s O r O N O W x x x x # x + P 1 r x x , N x• rn x u, 1 W m A x m x• A 1 V m m x• T # m 1 tp m m W # Z x 1 m " # x rya 1 m o x• m x 1 N CT W O x t/s x # # o> 1 # x c.T 1 r N N N N N N N N N N IV N N N N IV N N r C." x V m # 1 ts. m m tJ1 r c to m m V -t -.a m m Vt Lit A A A W W w V m O O m m +1 to x � m 1#t ts• I P N O m r W CD CT N m A N 51 m m V N 0 W m x N •C CD x 1 x N C13, -y x C• 1 N m r -+ tJ1 t0 m 1a.1 CO tr IV O m V V V m m r A V r O A V w CID CO U W # V A x P- m O V O N O M, m w V V W m w m m �► r W LT Cif t0 CO N CT CT CO # eC T 1F N 1 cT Z1 V O m A V W m N A t0 V m m GT W CO w N V O CO W 0 O O O N O O x M # x i! x 1 x •at x rr, x --/ x W m Co A # r O x m V V V CA m CT tT A A A W W W V C7a O O m A Co m m x T -1 x I != m m V N O bn W x Z" A x• _ _ .. j .. # CJs r x !aa I N Qa �/ tJa co OD w 10 to N O OD •-J �1 -.Cm LO •+ A V -+ O A V m m W m W O x T x- rJ O C." m w �1 V w C." W m m .-+ W Cal Lit co CO N m O N O # C/s # f V 1 Lr +a V O m A V w LT N A to V Qa m L.TI W to w N -1 O m w V O V A O O O V O O # x # x• # 1r # Ir Z CD 3^ x a a m /r w x r m x am x cn 1 m A m 2>• C 3. 1t �• I as. -r V w x a 7.+ .-. x m x T m r •at• It• 1 m O x 1 O O O O O O O O O O O O O O O O O O O p O 0 0 0 0 0 0 0 Ca O COS'1 O 6 t ot ...r ...... -. .r # x. # it x A x• # C x iF S• C # m 1 m m m m m m m m m m m m m m m m m m m m m m m m m m m m w C. V V m 6T1 x r r # tsa 1 GT LT 4i+ tJ1 w CT m i71 L71 cit tis tT CT Cif LT Ci+ ci1 cii 6T1 m m tai Cif m CT m m cif Lit m w W m m x A i>• x o0 1 m m m m m m m m m m m m m m m m m m m m m To ?I m m m m m m :m asa O O C- W x a —L 1t 1 xw C.1 n-. 1t fJ 1 N N N IV IV N N N N N N N N N N N N N N N N N N fV N N N IV m m cn Cif C11 m 0 0 0 0 4 0 0 0 x T .� x C} 1 O O Q 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 p 4 -+ -+ O O 'ir T x r tp Co N N V V x # 0 m I C 7 m 1 O T T a-a a m -O G" G" S rC� 4 d 1y�C w N N ci M Pd H O z cn Phase I Phase II Phase I I I Phase IV Phase I Phases I Phase! 11 Phase IV Phase I Phase II Phase I I I Phase IV LUNDGREN ASSUMPTIONS MARKET VALUATION (Lundgren Tag Increment District) Taxes Total Taxes per unit or foot RR r�ygar 900 /unit 111,600 900 /unit 107,100 2.15 /sq. ft. 129,000 2.50 /sq. ft. 9AM O S -0 AS..- E.M.V. Coast. Val, divided by M.R. divided by Ass. Ratio divided by .80 1,022,315 3,006,808 3,758,511 981,092 2,885,566 3,606,958 1,181,708 2,748,158 3,435,198 1,374,079 3,195,533 3,994,416 30,310 30,310 57 66 124 119 60,000 60,000 o LUNDGREN ASSUMPTIONS BASS AND LAND SALES (Lundgren Tag Increment District) DAH TOTAL BASE - 546,960 &K Yh AL 3 % Inflation Rate starting Phase I 131,666 1 / 1 /90 1,533,472 1992 PhaseI I 127,366 1 / 1 /91 1,007,658 1993 Phasel I I 61,748 1 / 1 /92 782,600 1994 Phase IV 226,180 1 / 1 /93 903,000 1995 YL S9. Ft. Price/Sg. Ft, Total Price Phase I 1988 120,984 2.00 241,968 Phase 11 1989 49,196 2.00 98,392 Phase I I I 1990 286,575 2.00 573,150 PhaseI V 1991 48,816 2.00 97,632 In u ri 0 C) m M t7 0 10 S 2 o 0 0 S 0 S S 0 0 S .0 � 0 q in 0 10 N -0 a, 0 a I m 0 m rd P- n 0 o a 1 m 1 I w ~ m 00 00 Oo n S S S 0o a n n o0 :° SR O a oo H 0 I7 o 0 w m m fn .o l7 m M.0 1 Ir Qp.. pp� in n P Q �0 90f �' � S m L7 0 N n ~ M a ~ m 1 i m o o m n a 0 0 0 o m .0 no o m 00 0 0 0 0 o P I- m o P 0 n us S o 0 0 n 0 0 o n o 0 o P o �4 rd a. o m I m m n n 0 S m° N .N. N° n r z o i Z O O O O O S 0 0 0 a S S 0 0 a O 0 !a ^ 0 n } I i° N '0° a a rd ZZw II 1 J Q I J I A Q 1 W w '+ .+ O O O O O O O O 0 w n W I n o S o 0 o 4c S 0 0 0 n o 0 o 0 o o o o m a .o aw aW 0 . P on In LL �c �� a n a 0 n LL o 01 o 0 AI E } i m O o 0 0 0 0 0 0 0 0 .. 0 0 0 0 0 0 0 0 0 n i N 0 0 0 0 0 0 0 0 o n 0 0 0 0 0 0 0 0 o n .o 1•N � � a v z I A OO p• n m P a m m Q a A H D W W z O w 1•- W E Z W W Z m a V A Wp� ►+ A A w w m I- W ? O I 1 Z j W z z F m O p V 1 I AJ JO W W W m m !- m 1-- H z J J > > j O J ��Jpp Q> C W z0 WWm pW zAz UU Q O Q Q W W W _I Q } C� Z U C ? 0 0 Qz (A N W W N N N a ~ D H F O z W z u u a fA 1 W W W 0 0 Z 1- W W 0 W W E OI F- O 0 01 A Z WMMZRt0� � "y 6� m Q 0 m w m m o 0 0 w o z I- m m w w w m z z v OU m W O x = W W W W O F- F O 1Z- O O W W W pWC W W Q Z a 0 0 0 ¢ v 4 Q q Q N W CL # W w z 3 ,i " Z 1 0 0 0 0 0 0 0 0 N 0 0 0 0 0 M o ro 0 0 0 0 Q G x Q "� '{ "� "� 'r '4 .+ w N w M N N N w N N N DATE 06 /09/88 PRCIM PON DECK RUN BATCH # 110006 VENDOR DESCRIPTION INV # PO /INV # 1751 ffff CHECK- PREPAID ffff 00134 MILLER, W.B., INC. SERVICES CONTRACTED, NON- 115 -88 00045 -01 !1t TOTAL VENDOR 1752 Ml CHECK- PREPAID 9*ff T00O23 TALBERri LAWN & LANDSCAPE SERVICES CONTRACTED NON- EST 1 00046 -01 ilig TOTAL VENDOR 1753 t CHECK- PREPAID IM A00040 ANOKA CITY TREASURER 1ST HALF TAXES 00047 -01 TOTAL VENDOR 1754 ffff CHECK- PREPAID mi-i 800123 BOARMAN & ASSOCIATES PROFESSIONAL SERVICES OOM -01 PROFESSIONAL SERVICES 04048 -02 H** TOTAL VENDOR 1755 CHECK- PREPAID ¢*ff 800170 BARTON- ASCHMAM ASSOC., INC. PROFESSIONAL SERVICESS 45649 00049-01 "ff TOTAL VENDOR 1756 ffff CHECK- PREPAID ffff 000044 CASSERLY LAW OFFICE PROFESSIONAL SERVICES 00050-01 PROFESSIONAL SERVICES 00050-02 Ott TOTAL VENDOR CITY OF FRIDLEY - HRA CHECK REGISTER 002 HRA DISC. SE0 # PCNT AMOUNT ACCT NUMBER 1757 1111 CHECK- MAID f' F00023 FRIDLEY, CITY OF REIMS M CITY -CK 20387 H 15 00051 -01 **" TOTAL VENDOR ffff 1758 ffff CHECK- PREPAID F0O023 FRIDM, CITY OF REIMBURSE CITY -CK 20692 H 45 00052 -01 Hol TOTAL VENDOR A202RBO.0000 4.000.00 DR455 -20200 4,000.00 CR455-10100 S 4,000.00 A207REO.0O00 4 580.36 DR455 -20200 4,580.36 CR455 -10100 S 4,580.36 A202RIO.0000 97.570.42 DR455 -20200 97 570.42 CR455 -10100 1 97570.42 A202MYO.O0O0 4,741.34 Dt450 -20200 4,741.34 CR450-10100 A202N20.0000 5,303.61 DR450-20200 5,303.61 CR454-10100 $ 10,044.95 A202820.0O00 1,420.43 DR460 -20200 1,420.43 CR460 -10100 f 1,420.43 A202090.0000 450.00 ORM -20200 450.00 CR430-10100 A202000.0000 2,450.00 DR450-20200 2,450.00 CR450 -10100 4 2,900.00 A2021#10.O000 37,131.70 DR455 -20200 37,131.70 CR455 -10100 S 37,131.70 A20210.0000 27 771.92 DR4W20200 27771.92 CR455 -10100 S 27,771.92 JOB m MESSAGES ill�llli a0ll:.`0 W fill 1• a ACCOUNTS PAYABLE CASH ACM WS PAYABLE CASH ACCOUNTS PAYABLE CASH ACMJNTS PAYABLE CASH AC MJNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH PAGE 1 DATE 06 109188 PROtftAM POOS CHECK RUNG BATCH 8 :0006 VENOM DESCRIPTION INV f PO /IN/ # 1759 ffff CHECK- PREPAID ffff F00023 FRIDLEY, CITY OF REIMB. CITY -CK 20693 MN V p,-,�' 00053 -01 ffH TOTAL V194DOR tt� 1760 ffff CHECK- PREPAID IIH F00023 FRIDLEY, CITY OF LIMB. CITY -CK 20385 Mt: 00054 -01 PROFESSIONAL SERVICES 00054 -02 HII TOTAL VENOM fm 1761 ¢*ff CHECK-PREPAID FOW FRIDLEY, CITY OF PROFESSIONK SERVICES 00055 -02 PROFESSIONAL SERVICES 000515 -03 PROFESSIONAL SERVICES 0005`5-04 PROFEESSIONAL SERVICES 00053 -05 PROFESSIONAL SERVICES 00055-06 SERVICES WGRACTED, NEON- 00055 -10 SERVICES CONTRACTED, NON- 00055 -11 SERVICES COITRACTED, NON- 00055-12 OPERATING SUPPLIES 00055 -07 PROFESSIONAL SERVICES 00055-01 CO UNICATIONS 00055 -08 CITY OF FRIDLEY - HRA CHECK REGISTER 002 H RA DISC. SEQ # PCNT NOM ACCT NUIBER A202RTO.0000 19,986.10 DR455 -20200 19,986.10 CR455 -10100 f 19,386.10 A202PEO.0000 1,423.00 DR455 -20200 1,423.00 CR455 -10100 A202PJO.0000 370.00 DR455-20200 370.00 CR455 -10100 f 1,793.00 A2020G0.0000 A2020OO.0000 A202P10.0000 A202P80.0000 A202PNO.0000 A202PU0.0000 A202R10.0000 A202R50.0000 A202RYO.0000 A202S50.00 A202SDO.0000 SERVICES CONTRACTED, NON- 00055 -09 A202SO0.0000 ffff TOTAL VOW *t f 1762+ CHECK- PREPAID H00019 FERRICK & N+ENdM PROFESSIONAL SERVICES 00056 -02 A202PRO.0000 PROFSSIONAL SERVICES 00056 -01 A202590.0000 ffff TOTAL MOOR ffff f 1,562.74 DR450 -20200 1,562.74 CR450-10100 1,977.10 DR451 -20200 1,977.10 CR451 -10100 453.15 DR452 -20200 453.15 CR452 -10100 102.79 DR453 -20204 102.79 CR453 -10100 2,577.46 DR455 -20200 2,577.46 CR455 -10100 516.66 DR455 -20200 516.66 CR455 -10100 1,033.33 DR455 -20200 1,033.33 CR47r10100 175.00 DR455 -20200 175.00 CR455 -10100 28.75 DR460 -20200 28.75 CR460 -10100 3,131.98 DR460 -20200 3,131.98 CR460 -10100 27.55 DR460 -20200 27.55 CR460 -10100 17.80 DR460 -20200 17.80 CR460 -10100 11,604.31 216.00 DR455 -20200 216.00 CR4WI0100 1,393.81 DR4W20200 1,393.81 CR460-10100 1,609.81 SITS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH AMOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH PAGE 2 DATE 06709/88 CITY OF FRIDLEY - HRA PAGE 3 PROGRAM POOS CHECK REGISTER CHECK RUN BATCH # :0006 002 HRA VENDOR DISC. Joe DESCRIPTION INV # P07INV # SEG # PCNT AMOUNT ACCT Mile mm lESSM 1763 pfCK- PREPAID **H M00134 MILLER, W.B., INC. SERVICES CONTRACTED, NON- 00057 -01 A202 M.0000 3,500.00 DR455 -20200 ACCOUNTS PAYABLE 3,500.00 CR455 -10100 CASH tftf TOTAL VENDOR S 3,500.00 1764 will CHECK - PREPAID 500108 T- ELLIOTT- FENDRICKSON PROFESSIONAL SERVICES 2009 00058 -01 A2O20TO.000O 37,069.02 DR451 -20200 ACCOUNTS PAYABLE 37,069.02 CR451 -10100 CASH ftft TOTAL VENDOR t 3 37,069.02 t TOTAL NUIM OF CHECKS WRITTEN : 000000 ffff TOTAL DOLLARS FOR CHECKS WRITTEN : s 260,982.02 Ml LAST CHECK NUMBER : 001750 TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR PERSONAL SERVICES FOR MAY, 1988 PERSONAL SERVICES: May TOTAL OPERATING EXPENSES: Petty Cash Postage Courier Service Inspection Service Inspection Service Install Elec Ser to 100 Twin TOTAL TOTAL FUND 236 9,805.22 9,805.22 28.75 27.55 17.80 516.66 1,033.33 175.00 1,799.09 $11,604.31 4 _ a H.R.A. LABOR DETAIL HOME NAME DEPT 236 HOURS PAY PENSION TOTAL Samantha Orduno 02 30 4.00 60.19 6.93 67.12 Shirley Haapala 02 30 8.00 108.47 11.39 119.86 Samantha Orduno 02 30 4.00 60.19 7.01 67.20 Shirley Haapala 02 30 5.60 75.93 7.97 83.90 Nasim Qureshi 02 30 10.64 333.85 38.95 372.80 Nasim Qureshi 02 30 9.44 296.20 33.17 329.37 Julie Burt 03 30 2.00 33.47 3.91 37.38 Julie Burt 03 30 3.75 65.89 7.75 73.64 Barbara Ridout 03 30 2.00 23.97 2.82 26.79 Sharon Fetting 03 30 6.00 79.63 9.36 88.99 Richard Pribyl 03 30 11.20 279.60 32.88 312.48 Sharon Fetting 03 30 24.00 318.53 37.46 355.99 Carol Bartlett 03 30 2.00 15.70 1.85 17.55 Julie Burt 03 30 2.00 35.14 4.11 39.25 Barbara Ridout 03 30 13.00 155.80 18.31 174.11 Richard Pribyl 03 30 16.00 399.43 46.57 446.00 Michele McPherson 06 30 1.00 8.10 0.12 8.22 John Robertson 06 30 4.00 91.97 10.82 102.79 Donna Saba 06 30 1.00 11.90 1.39 13.29 John Robertson 06 30 9.00 206.94 24.34 231.28 Donna Saba 06 30 4.00 31.72 3.73 35.45 Donna Saba 06 30 14.50 114.99 13.53 128.52 TOTAL FOR DEPT #30 2,807.61 324.37 3,131.98 Elsie Hanscom 03 31 2.00 18.64 1.96 20.60 Elsie Hanscom 03 31 3.00 27.95 2.94 30.89 John Robertson 06 31 18.00 413.87 48.67 462.54 John Robertson 06 31 30.00 689.79 81.12 770.91 John Flora 06 31 5.00 138.16 16.17 154.33 John Flora 06 31 4.00 110.53 12.94 123.47 TOTAL FOR DEPT #31 1,398.94 163.80 1,562.74 James Robinson 06 32 22.00 371.12 43.56 414.68 John Flora 06 32 8.00 221.06 25.97 247.03 John Flora - 06 32 4.00 110.53 12.94 123.47 John Flora 06 32 7.00 193.42 22.75 216.17 John Flora 06 32 10.00 276.32 32.35 308.67 James Robinson 06 32 8.00 134.95 15.88 150.83 Michele McPherson 06 32 3.00 24.30 0.35 24.65 Michele McPherson 06 32 7.00 53.97 0.78 54.75 John Robertson 06 32 9.00 206.94 24.34 231.28 John Robertson 06 32 8.00 183.94 21.63 205.57 TOTAL FOR DEPT #32 1,776.55 200.55 1,977.10 Mark Burch 06 33 4.00 83.00 9.76 .92.76 John Robertson 06 33 2.00 45.99 5.40 51.39 John Robertson 06 33 3.00 68.98 8.11 77.09 Richard Pribyl 03 H.R.A. Richard Pribyl 03 37 Robert Rice LABOR DETAIL 37 John Robertson 06 HONE Mark Burch 06 37 NAME DEPT 236 HOLRS PAY PENSION TOTAL Mark Burch 06 33 10.00 207.51 24.40 231.91 TOTAL FOR DEPT #33 154.19 405.48 47.67 453.15 73.21 695.73 John Robertson 06 34 4.00 91.97 10.82 102.79 Richard Pribyl 03 37 Richard Pribyl 03 37 Robert Rice 06 37 John Robertson 06 37 Mark Burch 06 37 Gerald Nordlund 06 37 John Robertson 06 37 Mark Burch 06 37 TOTAL FOR DEPT #37 TOTAL PERSONAL SERVICES FOR MAY 5.60 139.80 16.44 156.24 8.00 199.71 23.29 223.00 35.00 343.70 40.42 384.12 1.00 22.99 2.71 25.70 30.00 622.52 73.21 695.73 14.00 219.68 23.07 242.75 6.00 137.96 16.23 154.19 30.00 622.52 73.21 695.73 2,308.88 258.58 2,577.46 $8,789.43 $1,015.79 $9,805.22 ----------------------------------------- ----------------------------------------- er n� Centennial Mortgage, Inc. 501 E. Monroe Suite 220. P.O. Box 1942, South Bend, Indlano 46634 D Telephone: (219) 233.6773 TEL OPY RECEIVED FOB. ATiY. / ft TELECOPY COVER SHEET lLCOR Date: YatisaasnCaCaCaaDO �E • TO: gQh =+ 5- S,1 y er mvt i, Done e r ATTENTION: Loy L yqd tyre n TELECOPY 8�„ (ol �) 3L16 - 296 RE: FROM: CENTENNIAL MORTGAGE, INC. NAME: ' MESSAGE: ss= sss ��a�aaaarsa�z aQeaa�eCCCOCSSCCCSiCisa�ga�as�����aaaa�aaaaaaaseaReCe4a6lsc Total number of pages sent, including cover sheet Date sent: CP Time sent: 4.0t. By: '& ri a % C'r-kX (.fie -n - to: Lr >v_ Lupo( rc FOR TECHNICAL ASSISTANCE OR QUESTIONS, PLEASE CALL TELECOPY NUMBER LISTED BELOW: 8204, 8/87 (219) 233 -6855 96/09/08 e9s34 Centennial Mortgage) nc. 501 E. Monroe, Sulie 220, P.O. Box 1942, South Bend, Indlano 46634 ^ Telephone: (219) 233.6773 June 8, 1988 Mr. Louts R. Lundgren Fridley Plaza Associates, Limited 343 East Kellogg Blvd. St. Paul, Minnesota 66101 RE: Fridley Plaza Apartments Fridley, Minnesota Dear Lou, I would like to update you on the underwriting status for your HUD 221 Coinsurance Loan for Fridley Plaza. 1. The Minneapolis HUD Office has issued a market need approval for your project and we are awaiting environmental clearance and previous participation approvals. 2. The final copy appraisal report will be delivered to me by June 10, 1988. 3. Centennial Mortgage has completed a plan review and cost analysis. Comments and findings will be sent to you this week. Final agreement of numbers will be required by Kraus Anderson. 4. There remains a few missing exhibits that must be submitted to Jim Lincoln, Lock Financial, immediately to stay on track with our time frame projects. (See Jim Lincoln letters dated 6- 3 -88.) As you can see, Centennial Mortgage is very supportive of your project and we are attempting to tie down all facets of the underwriting to arrive at the issuance of a firm financial commitment and closing. We are continuing to pursue the potential of a participation lender offering a below market interest rate to improve the project economics of a potential mortgage. The draft appraisal report, prepared by Jeffrey Johnson, includes a potential debt service mortgage that is far below our original anticipations. The one factcr that stands out is the projected Real Estate Tax estimate of $1,300 per unit. This projection far exceeds comparable tax rates included in the appraisal and adds an operating expense burden that cannot be supported by proposed rents in the Maxfield study. It is critical to reach an agreement with the City of Fridley to have projected taxes in line with comparable rental projects in the area to accomplish a reasonable mortgage for Fridley Plaza. A , K Mr. Louis R. Lundgren June 8, 1988 Page Two Findily, we owe projecting to complete our mortgage underwriting in the next few weeks and a firm commitment should be issued on or about June 24, 1988. Depending upon resolving legal issues and endorsement preparation, we should be closing your project in mid -July. I hope this status update will assist you in your final planning stages for Fridley Plaza. Very truly yours, Terry Chuvata Chief Underwriter TLC:gsm QTY OF FRIMEY HOUSING & REDEVmOPMENT AU'IHORSTy NQ u=, MAY 12, 1988 CALL TO ORDER: Chairperson Commers called the May 12, 1988, Housing & Redevelopment Authority meeting to order at 7:05 p.m. ROLL CALL: Menbers Present: Larry Cbnmrs, Virginia Schnabel, Duane Prairie John Meyer Members Absent: Walter Rasmussen Others Present: Jock Robertson, Executive Director of HRA Rick Pribyl, City Finance Director Julie Burt, Asst. Finance Officer Dave Newman, HRA Attorney Lou & June Lundgren, 343 Kellogg Blvd., St. Paul Alan Rouse, 1786 Hennepin Ave. So. Steve Boerboon, Kraus- Anderson Jim Pouzar, Kraus-Anderson APPROVAL OF APRIL 14, 1988, HOUSING & REDEVELOPME U AUTHORITY MIN=.S: MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the April 14, 1988, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CDYMERS DECLARED THE MOTION CARRIED UNANIIDUSLY. 1. IIMRMATION ON IAU LUNDGRE N' S PROPOSAL: Mr. Lundgren stated that at the meeting he bad banded out a Progress Report on the Fridley Plaza Apartments dated May 12, 1988. He stated that since the April 14th HRA meeting, he and his consultants met with the Kraus - Anderson people. Kraus - Anderson has taken sub-bids on all the items of construction. Kraus- Anderson is prepared to enter into a firm contract with Fridley Plaza Associates and himself subject only to the final financing which will be the intitial endorsement of the mortgage. Mr. Lundgren stated Kraus- Anderson was capable and prepared to furnish a performance and completion bond for 100% of the construction cost. The bond is issued by the St. Paul Companies. Kraus - Anderson has the crews, equipment, and construction management skills to complete the project expeditiously in accordance with the plans and specifications. Costs have been allocated separately for the parking ramp, should it be required. Mr. Lundgren stated the update of the Maxfield Research Group Study of the Rental Market Trends in the Fridley area was completed and delivered on Monday, May 9, to Terry Chuvala, Chief Underwriter of Centennial Mortgage Co. A copy was given to the HRA consultant, Jim Casserly, and to Jock -1- HOUSING & REMVEMPNE21r AUTHORITY MMMING, MAY 12, 1.988 Robertson. This report shows a continued strong market for the proposed proj ect. Mr. Lundgren stated that on Monday, May 9, he net with Mr. Johnson and Mr. Paul Bakken of the firm of Johnson and Liedl Appraisal of Hopkins to visit the site and meet with Jock Robertson. This appraisal firm was retained by Cenrenn�a� Mortgage Co. and their report is due soon. Mr. Lundgren stated a meeting with Mr. Robertson and staff originally scheduled for May 2 was postponed to May 10 because the Maxfield update was not completed by May 2. Mr. Lundgren stated that on Tuesday, he and representatives of Kraus Anderson met with Paul Arnfelt, President of Life Style, Inc., a management company; Terry Chuvala, Chief Underwriter of Centennial Mortgage; and Lazlo Korbula, AIA, of the firm of Korbuly /Graf of South Bend, Indiana. Mr. Lundgren stated that on May 10 at 1 :00 p.m., a meeting was held at the Fridley Civic Center attended by the following persons: Jock Robertson; David Newman; Jim Casserly; Terry Chuvala; Laszlo Korbula; Paul Arnfelt; Robert Silverman, Attorney at Dorsey & Whitney, representing Mr. Lundgren; and Mr. Lundgren. At that meeting, Mr. Chuvala gave a progress report to staff and indicated that, assuming the remaining items such as the appraisal came in on time, they were about three weeks away from commitment. He explained they were able and willing to mortgage a building on air rights and they were pursuing that direction. He also indicated he may be able to provide an option which would not require that much HRA participation and he is also pursuing that option. Mr. Lundgren stated there are still some loose items yet to be resolved, but they were still on schedule with total activities. They hope and expect to come back the first week in June with a commitment. Mr. Lundgren introduced Steve Boerboon and Jim Pouzar from Kraus - Anderson. He stated both gentlemen were very capable in the field and were willing to answer any questions the HRA might have about their company. He stated he was very pleased to have then on the team. Kraus - Anderson was a first rate organization, and he has worked with then as long as 25 years ago. Mr. Newman stated that if Mr. Lundgren had final construction estimates from Kraus- Anderson, he would appreciate it if Mr. Lundgren would provide that infonnaticn to both Jock Robertson and himselt. Mr. Lundgren stated the way the bids are taken and the way HUD makes them divide the bids are two different things. They are in the process now of Putting the numbers on the HUD forms. He stated they still have scare bookwork to do, but he would provide Mr. Robertson with that information. Ms. Schnabel asked Mr. Lundgren when he expected construction to begin and what was the estimated completion date. Mr. Lundgren stated construction would begin when the financing was in place -2- HOUSSn G & RWEVELOPNENT ALnH R= NMTIlVG, MY 12/ 1988 and signed. The site was ready, the contractor was ready, and the subs were ready. They have done a lot of work in the last few weeks. He stated they have a canpletion date of 12 months which is tight, but doable. Ms. Schnabel stated that on the market studies, had there been any discernable changes as far as the rent structure? Mr. Lundgren stated the rent structure was pretty much confirmed at what Mr. Maxfield had projected 1 and 1/2 years ago for 1988 -89. This particular market is still a very strong market. Mr. Newman stated staff still needs to receive a number of items of info=ation from Centennial Mortgage before they can start drafting the development agreement. The meeting on Tuesday, May 10, was very encouraging. Centennial is looking at some options which will make for a cleaner operation. Until Centennial completes the underwriting process, they will not know for sure how to approach this and the level of HRA assistance that will be necessary. They have stressed to Centennial that it was imperative there be a final connnitment before the next BRA meeting, and Centennial seemed to feel comfortable with that timetable. Mr. Newman stated that from a procedural standpoint, he would envision that staff will cane to the BRA at the next meeting with, hopefully, at least, a general concept of how they should approach this. They might need to ask the HRA to schedule a special meeting in late June to act on the development agreement before the letter of credit expires on June 28, 1988. Mr. Robertson stated that in the first round of this analysis of the financial structure, the HRA authorized staff to obtain the services of Jim Casserly to review the draft pro formas. In the HRA information packet received at the meeting, the HRA had a copy of a letter from Jim Casserly which was requested by Mr. Newman and himself, along with some background information on Mr. Casserly. Staff was recommending the HRA continue to retain Mr. Casserly through the process of analyzing the final financial structure of this project. Both he and Mr. Newman had concluded that this was probably the most complex project the HRA has yet undertaken and they want to be very careful to cover all the bases. Mr. Robertson stated that in Mr. Casserly's letter, he stated that it will take between 15 -20 hours to complete the total project analysis. Mr. Newman stated that even though the HRA does not know what the direct assistance is going to be to Mr. Lundgren, the HRA will be incurring other costs --one being the cost of acquiring the site. Mr. Casserly has access to certain resources to do the financial evaluation and to provide the BRA with a very thorough analysis of what they are getting into as the project presses. Mr. Newman stated once they have a better handle on what type of assistance is being requested, they will also involve Jim O'Meara. They have some bonds that were in place 2 1/2 years ago, and they want to make sure there are not going to be any adverse tax consequences on those bonds. -3- HOUSIM & REDEVEWPNENT AiTIHORITY MEETIlVG, MAY 12, 1988 2. OONSIDERATON OF NSP AGREEMENT FOR THE UNDERGROUND ELECTRICAL SYSTEMS FOR RICE CREEK ROAD: MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the NSP Agreement for the underground electrical systems for Rice Creek Road in the amount of $67,914. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON iS DECLARED THE MOTION CARRIED UNANIK)USLY. 3. UPDATE ON RE{2UM FOR REDEVELOPMENT ASSISTANCE FOR MIDWEST VAST & SAGE BUILDING BY FRAM KITPERMAN: Mr. Robertson stated that he had handed out an amendment to the memo from Samantha Orduno dated May 5, 1988 (page 2 of HRA agenda) . This memo indicated the type of assistance the HRA has provided on comparable projects. He stated the assistance for Shorewood was 12 %, but the percentage for Springbrook Apartments was much higher because those were loans instead of soil correction and write -down. It was important to make that distinction. Mr. Robertson stated staff was recom-endi.ng that the HRA direct the staff to proceed with the Shorewood model. Staff would recommend approximately a $30,000 second mortgage (standard 15 year mortgage that has been dome before with no payments the first 3 years, interest only the next 2 years, and the remaining balance, principle, and interest the last 10 years) . If the HRA agreed, then he and Mr. Neman would draf t a development agreement along those lines. He stated they believe the assistance is justified because it is a redevelopment- type situation which they have known they were going to face more frequently. It is in the neighborhood of Moore Lake Commons, across the street from the new fire station, and staff feels it is important to do it to set the tone for the redevelopment of the whole neighborhood. Ms. Schnabel stated this project is more a rehabilitation project than many of the other projects they have participated in. From the information received at the last meeting from Mr. Coplan, representing Mr. Kitterman, there were a lot of problems in the building with water, electricity, etc., more problems than what the HRA has had to deal with in other projects. There were a number of construction projects which were new construction projects. Shorewood was probably the only one that came close to a rehabilitation project. She had been trying to think of ways to define this project so they could get a better handle on the dollar amounts they give to developers; in other words, the rehabilitation of an existing structure that is being updated and brought up to code, versus brand new construction. She was trying to cane up with a way to rationalize or justify this type of assistance. Mr. Robertson stated Mr. Kitterman was proposing extensive exterior remodeling work which was not really needed; but if it was not done, it would look just like an old building that has been repainted. There wre also a lot of interior improvements that needed to be done. QM A ,' HOUSIlVG & REQ ?MQPHW ADTHQ= MEEI'M Ag1Y 12, 1988 Mr. Ctrs stated the Commission bad to be careful in setting any kind of precedent. The first project ever done was Johnson Printing. They tried to maintain that as a benchmark and obviously they were not overly successful. Mr. Newman stated there was a significant difference between pure land write -down and a second mortgage. Mr. Cmuers stated he would agree with that. Ms. Scbnabel stated that at the last meeting, Mr. Coplan had stated the estimate for the exterior improvements was $130,000 and the estimate for the interior improvements was $90,000. The HRA members expressed concern that if they did agree to assist Mr. Kittennan, there was no guarantee that all these improvements would be done. Mr. Newman stated one thing they have to do is come up with a development contract. They can ask the City Assessor to look at the plans and give his estimate on what value he would put on the improvements and what the assessments would be. Mr. Meyer stated that as far as the HRA was concerned, the best thing was to get rid of the eyesore, particularly the exterior appearance. If the HRA should agree to assist Mr. Kitterman, he felt it would behoove Mr. Kitterman, m matter what the amount of assistance is, to be specific on what he will do on the outside of the building, and then maybe the HRA would assist him according to the specific improvements that would be done. Maybe the HRA could also make a shopping list that applied to the inside of the building. Mr. Newman stated that was a good point. They did something similar with Springbrook Apartments where they had the developer provide a page of amenities the City wanted him to provide in order to get the quality the City wanted. He felt it was appropriate for city staff to sit down with Mr. Kitterman and go over his list of improvements item by item, get a description of what will be done, and incorporate those items in the agreement. Mr. Meyer stated he would be comfortable with the level of assistance presented by staff ($27,000), because it was certainly going to help improve the area. If they want to talk about justif ication, he thought one major justification would be to create something much more pleasing than what is there now. Ms. Schnabel stated she could see spending the money for rehabilitation of an existing property that is rundown or in state of disrepair if it is going to be a larger percentage than what they have normally done, providing the end result is accomplished. It was the concensus of the HRA members that staff work on drafting a development agreement for the n*vbers to review at the next meeting. -5- h HOUSIlVG & REDEVEMMEW AlnUDRITY MEMU G, MAY 12, 1988 4. CONSIDERATION OF REDEVEGOPMTr PROPOSAL FOR 57TH & UNIVERSITY AVENUE: Mr. Robertson stated they have received m update information from the two carpeting developers and are still waiting for more canplete proposals from the developers. He stated no action was required at this time. 5. CONSIDERATION OF P GARAGE PRQTECr AL1Ma snuaTION BY THE CITY Comm: Mr. Robertson stated they believe they are close to an agreement with the owners of the Fridley Plaza Office Building in renegotiating the lease agreement. Mae inportant thing at this point is it looks likely that the parking garge project can proceed along with the first phase of the remodeling this summer. Mr. Robertson raised the procedural question: How should the HRA administer this construction contract? This is complicated by the fact that the City Council is administering that part of the contract that deals with renovation and expansion of the fire station and City Hall. The HRA has budgeted $1 million just for the ramp. Since the City Council is already administering the project, staff would propose that cake the garage part of the project's final specifications and budget cane to the HRA for approval, the day -to -day, month -to -month administration of the contract be done under the blanket of the City Council contract. Mr. Robertson stated that because inevitably there will be minor changes, one advantage would be that the City could avoid the type of problem they ran into with the Lake Pointe project where they essentially had a double approval process which was further compounded by the fact that the HRA meets only monthly whereas the City Council meets bi- monthly. Once the contract amount was agreed to, any cost overruns would be the responsibility of the City rather than the HRA. At all times, staff would give the HRA thorough and complete progress reports. Mr. Meyer asked what was so unusual about this $1 million for building a parking ramp against any other public facility they have done under a general contractor where monthly estimates and change orders came to the BRA for approval? Why would the HRA have to abdicate some of this responsibility to the City? Mr. Nemmn stated it was different in one respect in that simultaneously the City will be remodeling City Hall. It was different in that they have both bodies operating tandenly. Other than that, he did not know if it was that signficantly different. He stated he was greatly troubled during the Lake Pbinte Project in that they would encounter situations where change orders needed quick action, but the HRA did not have a meeting scheduled for three weeks. Staff was then faced with the dilemma of what they could do and what they couldn't do. Frankly at times, they probably came close to the gray area in whether or not they had the authority to do what they did. Based on how these projects tend to proceed, invariably there are change orders. Mr. Prairie stated this project was considerably smaller than Lake Pointe so it should be a lot easier. He stated he did not see any great problems with Z1 r HOUSIW3 & RVMV=PHW ALnHORM ,_ NAY 12, 1988 it, and he would agree with Mr. Meyer who would like to be able to see things as they progress. Even though the BRA meets just once a month, he did not think there had been any real great problems because of it. They could authorize staff to make the decision in an emergency situation, but the rest of the time, they could continue as they have in the past. Mr. Meyer stated that with any project, there are times when emergency decisions have to be made. Mr. Robertson stated he was worried about Mr. Newman and himself having to take the responsibility for making "yes /no" decisions in a couple of days versus waiting and consulting with the HRA, and actually losing money by waiting. Mr. Cammers stated the HRA could be put in the position where that same argument could be made for any future project. Mr. Prairie stated he thought there was the possibility of less change orders for the garage than for the Lake Pointe project. Mr. Meyer asked what the contrvction manager's role was for the parking ramp. The field observation stage is where decisions must be made by the architect, engineers, and /or construction manager to proceed with a project and assume that change orders will be approved by the governing body or by the private owner. Where was the architect and his engineers during the field observation stage in which they reed to the construction manager what should be done in any given or unusual circumstances? Under this contract, was it the construction manager who makes the final decision to go or not go with the change or was it the architect /engineer? If it was the construction manager, his vote would be to not relinquish control of this project to the City Council . Ms. Schnabel stated she could sympathize with what Mr. Robertson and Mr. Newman were saying in that it becomes difficult for them to try to make decisions on changes that occur in the 30 day period before the HRA meetings. But, she also thought they got themselves into a lot of trouble with the Lake Pointe project change orders. She thought the HRA had spent a lot of money they were uncomfortable with, but she did not know if that would be resolved by their keeping control over the project. Mr. Robertson stated he detected a very good working relationship between the construction management firm and the architect engineer. Mr. Meyer stated the City and the BRA hired an architect and an engineer to verify the specifications, and they are the ones responsible for the design of the project. Normally, they or some other architect or engineer are responsible to - the City to make sure those plans and specifications are adhered to. A construction manager comes in and if, in the process, the construction manager abrogates the responsibilities of the architect and engineer, then that is a nontechnical person who is making that decision and that should not be. If the architect /engineer accedes to that, then he would have a bigger question. -7- HOUSING & 199P WPNM ALnIiORITY k EE , MAY 12, 1988 Mr. Meyer stated he thought that somewhere along the line they want an architect/engineer controlling this project. In his opinion, a construction manager is just a "glorified clerk" in the first place and cannot be allowed to supplement the services of the professional. Mr. Robertson stated he would like to research this in more detail and get a detailed explanation to the questions raised by Mr. Meyer. Ms. Schnabel stated she did not question the staff's best interest in their integrity and their expertise, but was it common for a body like the HRA to give someone $1 million to build a parking ramp without having seen a drawing, without having talked to an architectural engineer or a construction management team? She was just wondering if they were doing this right, and she felt very uncomfortable with the situation. Mr. Robertson stated he wanted to make sure the HRA understood that he was not recammmending that. He was recommending that the HRA go through the review of the detailed plans, schedules, specs, and budget as a Board before they approve anything. Only after they have approved all of the above would they decide on what to do on a monthly basis in terms of contract management. Mr. Meyer stated Ms. Schnabel had brought up an interesting point. He stated the HRA has never been asked to sit in on any planning sessions with staff or anyone else. They have never been asked to aid in the selection of an architect /engineer, never been asked whether or not they wanted a construction manager. All of these things were told to them, and that was very upsetting to him. Zb answer Ms. Schnabel's question about whether it was unusual for this to happen this way, he thought it was very unusual. A question that should be asked of the City is: Were they going to use the construction manager system for the Public Works' city streets, sewer and water projects in the future because it saves so much city staff time? Mr. Newman stated the reason this was brought up now was to get the HRA's reaction to the concept of how they might manage the contract. He felt staff has gotten that reaction by the comments made by the HRA members at this meeting. Staff knows the HRA takes their responsibility very seriously and that they are very concerned about their budget, and the staff feels uncomfortable making decisions for the HRA. That was why staff came up with this different contract management approach. They are trying to do some early planning now. Mr. Cmuers stated that at this time, it was obvious to him that there was enough lack of comfort in what was being proposed by staff that the HRA could not make a decison at this time. Mr. Nmmran suggested they go with the normal approach, and once they get an idea of what the specific contract amounts are going to be, the HRA can go with a similar -type approach they used last year where the City Council, in the interim, would have the authority to authorize change orders that do not exceed certain amounts and then provide the HRA with an update at the following meeting. -8- 6. HOUSIW- & RE IELOMMU AUTHOR= NEZM G, MAY 12, 1988 NOTION by Mr. Prairie, seconded by Mr. Meyer, to continue discussion on this item until more information is provided by staff with respect to the management of the Civic Center garage project. UPON A VOICE VOTE, ALL VOTIbU AYE, CHAIRPERSON CIONMMS DECLARED THE MOTION CARRIED UNANIMOUSLY. OF Mr. Newman stated if the HRA was in agreement in concept with entering into a lease agreement with Columbia Park Properties for parking west of the Clinic (as outlined in Mr. Robertson's memo dated May 6, agenda page 5), staff would put together a lease for the HRA to review at their next meeting. Mr. Lammers stated he would like staff to review the teams of the option to Purchase and see how that was structured and whether those terms should remain structured the same way. It was the concensus of the HRA for staff to proceed in drafting up a lease for HRA review. 7. STATUS REPORT OF NSP UNDERGROUND POWER LINES AT LAKE POINTS: Mr. Newman stated that at the last meeting, the HRA authorized the approval of granting an easement for the NSP underground power at Lake Pointe, subject to special legal counsel approval. At this time, they have not received any response from Air. Haik. 8. CLAIMS (1739 -1750) : Mr. Pribyl stated the engineering staff had submitted two items for approval in additiari to the claims: (1) partial payment to W. B. Miller, Inc., for repair work to the Lake Pointe development site; and (2) Estimate #1 to Talberg Lawn & Landscape, Inc., for maintenance of Lake Pointe development site. MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the check register as presented-and to approve a partial payment to W. B. Miller, Inc., for repair work to the Lake .Pointe development site in the amount of $4,000; and to approve Estimate #1 to Talberg Lawn & Landscape, Inc., for maintenance of Lake Pointe development site in the amount of $4,580.36. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONA1ERS DECLARED THE MOTION CARRIED UNANIA'DUSLY. ADJOURNMENT: ION by Mr. Prairie, seconded by Ms. Schnabel, to adjourn the meeting. Upon a voice vote, all voting aye, Cbairperson Catmers declared the May 12, 1988, Housing & Redevelopment Authority meeting adjourned at 8:47 p.m. iifJUS= & RECEVECpamu xjng)RITY N�MRE, MY 12, 1988 Respectfully submitted, L Saba Recording Secretary -10- FRIDLEY PLAZA ASSOCIATES A LIMITED PARTNERSHIP June 3, 1988 Members of the Fridley, HRA c/o John Robertson Executive Director, HRA Fridley City Hall Fridley, Minnesota Re: Fridley Plaza Projects Dear Gentlepersons: Although we expect to give an oral report to you at your HRA Board Meeting Thursday, June 9, 1988, we are enclosing, herewith a brief report on our activities since your last meeting and certain other pertinent data. 1. Enclosed is a progress scbedule dated 5/27/88 for all four phases of the development. This as prepared as a tool for the development of the conceptual agreement, which we expect to present to you on June 9, 1988. 2. We have made plans to be in South Bend, Indiana to meet with Mr. Terry Chuvala, Cheif Underwriter for Centennial Mortgage. At that time we have been promised a letter from Centennial MOrtgage regarding the mortgage committment. 3. Arrangements have been made for a meeting at 9:30 AM, Tuesday, June 7, at City Hall between Mr. Robertson, Mr. Newman, Jim Casserly, Mr. Jacobson, FPA consultant, Mr. Robert SIlverman, Dorsey & Whitney and Mr. Lundgren. Mr. Casserly has furnished the Fridley Plaza Associates a 19 page package of useful information which will be helpful as a frame of reference for discussions aimed at the development of the conceptual agreement with the HRA. 4. Revised pro - formas have been submitted to Mr. Robertson and Mr. Newman. 5. Mr. Lundgren has caused a study to be made by Smith, Gendler and Shield and a letter has been given to Mr. Robertson and Mr. Newman on the taxes paid by each of the comparable properties referenced in the Maxfield study, as requested by Mr. Newman. 6. Final construction estimates prepared by Kraus - Anderson of St. Paul have been given to Mr. Robertson and Mr. Newman. 1110 minnesole building, at. pout, minnesots 55 10 1 611 -22I -4765 F7- - - -t FRIDLEY PLAZA ASSOCIATES A LIMITED PARTNERSHIP June 3, 1988 Members of the Fridley, HRA c/o John Robertson Executive Director, HRA Fridley City Hall Fridley, Minnesota Re: Fridley Plaza Projects Dear Gentlepersons: Although we expect to give an oral report to you at your HRA Board Meeting Thursday, June 9, 1988, we are enclosing, herewith a brief report on our activities since your last meeting and certain other pertinent data. 1. Enclosed is a progress scbedule dated 5/27/88 for all four phases of the development. This as prepared as a tool for the development of the conceptual agreement, which we expect to present to you on June 9, 1988. 2. We have made plans to be in South Bend, Indiana to meet with Mr. Terry Chuvala, Cheif Underwriter for Centennial Mortgage. At that time we have been promised a letter from Centennial MOrtgage regarding the mortgage committment. 3. Arrangements have been made for a meeting at 9:30 AM, Tuesday, June 7, at City Hall between Mr. Robertson, Mr. Newman, Jim Casserly, Mr. Jacobson, FPA consultant, Mr. Robert SIlverman, Dorsey & Whitney and Mr. Lundgren. Mr. Casserly has furnished the Fridley Plaza Associates a 19 page package of useful information which will be helpful as a frame of reference for discussions aimed at the development of the conceptual agreement with the HRA. 4. Revised pro - formas have been submitted to Mr. Robertson and Mr. Newman. 5. Mr. Lundgren has caused a study to be made by Smith, Gendler and Shield and a letter has been given to Mr. Robertson and Mr. Newman on the taxes paid by each of the comparable properties referenced in the Maxfield study, as requested by Mr. Newman. 6. Final construction estimates prepared by Kraus - Anderson of St. Paul have been given to Mr. Robertson and Mr. Newman. 1110 minnesole building, at. pout, minnesots 55 10 1 611 -22I -4765 1 -A June 3, 1988 MEMBER OF THE FRIDLEY HRA PAGE TWO 7. Mr. Lundgren will confer with Mr, John Laird, attorney for Centennial Mortgage, Inc. on his promised research on what would occur in the event of a foreclosure if the HRA were to lease to the developer the air rights for the construction of the apartment building. In short, we and our consultants have been working diligently with Kraus - Anderson, the contractor, Mr. Paul Bakken and Mr. Jeff Johnson, the appraisers, Mr. Terry Chuvala., the underwriter, Mr. James Lincoln the loan processor and expect to arrive at a conceptual agreement wiht staff next week. Very truly yours, 4FRI EY PLAZA SSOCI S R. Lundgren, FAIA ing General Partner LRL:cg Enclosure M1 Casserly Law Office, P.A. MOM 215 South 11th Street, Suite 200 . Minneapolis . Minnesota 55403 Office (612) 339-0221 . Home (612) 897 -3569 MEMORANDUM T0: Louis R. Lundgren n, L• FROM: James R. Casserly RE: Tai Increment DATED: May 31, 1988 The Fridley H.R.A. asked me to prepare a memorandum to you outlining the tax increment problems in your proposed development. We are sharing our analysis and the underlying assumptions with you with the hope that you can make this project work. Please keep in mind that these assumptions are not refined. The expense portion does not include money needed for bond discount, bond issuance, consulting fees, legal fees and so forth. The bond rates are overly optimistic. If the H.R.A. has to use taxable bonds, or even a substantial portion of taxable bonds, the project is clearly not possible. Finally the entire phasing may be overly optimistic. We are assuming that one phase will be fully completed each year and that the value will inflate at 3% per year following the year of completion. 1 1 -C Tax Increment analysis requires making a number of assumptions which hopefully are reasonable. Attached to this memo you will find a series of charts titled as follows: 1. Market Valuation 2. Expenses 3. Mill Rates 4. Base and Land Sales 5. Bond Rates All of these charts assume that the district (we are calling the Southwest quadrant of Mississippi Street & University the Lundgren Tax Increment District) will be developed in four phases. Phase I is the 124 unit mid -rise apartment project. Phase II would be a 100 unit senior housing project which would be located where the liquor store is presently. Phase III is a 35,000 square foot commercial project adjacent to Mississippi Streei and North of the 124 unit mid -rise apartment project. Phase IV would be a 35,000 square foot commercial office project fronting University Avenue (we are unable to determine whether Phase IV would be predominately commercial, office or mixed use and so have retained all the options). We have determined the valuation of each phase by estimating what the taxes would be per square foot or per unit and then working backwards. We understand that the construction costs may, in fact, be much greater than what is shown on our charts. However, the marketplace ultimately dictates what taxes can be paid on a per unit or square foot basis. Furthermore, because greater density is desirable for this district, there are substantial costs which will not be adequately reflected in a market valuation ( for example, the installation of underground parking). 2 t A number of assumptions had to be made regarding the cost of public improvements. We tried to delay expenditures for improvements as best we could until the development would take place on each phase. Instead of trying to structure bond issues, we used a present value analysis of the available revenues using bond rates in the attachments. The effect is the same, and the sum of the present value of available tax increment for each period would be the amount of money available for project expenses in the year the project was initiated. For example, in the Phase I Cash Flow Analysis the present value of the available revenue stream at 7.227% totals $1,911,644. This last amount is what is available for the public improvements to the property. The attachments labeled Phase I, Phase 11, Phase I I I and Phase I V are cash flow analyses of the tax increments generated by each phase in the Lundgren Tax Increment District. The tax increment revenue stream is then present valued using bond rates of 7.227% and 10 %. Each phase assumes a developer loan payment ( Phase I) or land sale payments (Phases II, III, & IV). The expenses are also shown, and those expenses can be matched with the total of the present value of the available revenue stream. In Phase I the acquisition improvements are $1,463,000 and the ramp improvements are $850,000 for a total of $2,313,000. The present value of the tax increment revenue stream at 7.227% is $1,911,644. There is a deficiency in " excess of $400,000 which would have. to be contributed to the project if it is to proceed. Phases II and IV have similar problems; only Phase III has excess revenues. The last attachment is the summary of Phase I - IV. It is a graphic representation of the problem. The Cumulative Balance column shows the 3 1D 1� annual deficiencies. By the end of 1991 the H.R.A. would have to invest over 1.6 million which it could not reasonably hope to recover using the stated assumptions. As stated earlier, the deficiencies are based on a most optimistic tax exempt bond rate and optimistic phasing. If Phase I had to use all taxable bonds, the deficiency for that phase alone would be in excess of $800,000. I will certainly review any of these assumptions or scenarios with you. Again we are looking for some reasonable and affordable solutions. cc. Fridley H.R.A. 4 Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 - 5713850 Louis Lundgren May 31, 1988 Page Two Finally, as you are well aware your current Letter of Credit expires on June 28, 1988. The HRA has repeatedly advised you that a final agreement will have to be reached by that date and that if a such an agreement is not reached there will not be any extensions to the Letter of Credit. In order to have a conceptual agreement by June 9, 1988 and a formal agreement by June 28, 1988, there is considerable work which remains to be done. Unfortunately, most of the information which the HRA staff has requested has not yet been received. Not until this information is received can we proceed with any further work in preparation for our final agreement. I would also like to remind you that during a March 24, 1988 telephone conversation between Jock, myself, and John Laird (Centennial's attorney) it was agreed that Mr. Laird would do further research on what would occur in the event of a foreclosure if the BRA were to lease to the Developer the air rights for the construction of the apartment building. We have not received any additional information from Mr. Laird in this regard. The BRA continues to be hopeful that an agreement can be reached with you within the required time period. However, time is shortly running out and unless the information previously requested is immediately forth coming I fear that there may not be adequate remaining time in order to complete the desired transaction. I look forward to receiving from you within the next few days the information I have indicated in this letter. incerely yours, DPN:jeb cc: Jock Robertson James Casserly Robert Silverman 1G OUSING and REDEVELOPMENT AUTHQRtTY COMMISSION MEMBERS: LAwPENCECOMMERS,CHAIRMAN DUANE PRAi1E VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY MEND 40: Housing & Redevelapnent Authority Menbers MEND FROM: Jock Robertson, Executive Director of HRA MM DATE: June 3, 1988 RW.ARDIM: Mochinski office Building Proposal The 20, 000 square foot office building proposed by Richard Mochinski meets the existing zoning requirements of the City of Fridley. If the HRA wishes to proceed with the requested loan for this project, staff would recommend the following: 1. The developer provide site plans and elevations indicating a higher quality of development such as brick construction and more landscaping than would normally be required under the building and zoning codes. 2. A successful negotiation of a develoonent agreement with a 15 year loan for $121,500 (9% of total projected cost of $1,350,000) which is similar to that of Springbrook Apartments. First three years no principal interest, next two years interest only, last ten years remaining principal and interest. 3. Closing on second mortgage upon issuance of certificate of occupancy by the City of Fridley. I believe it is important that we get a quality development on this site which will complement the Moore Lake Commons project which will be located diagonally across the intersection. This site is within the Moore Lake tax increment financing district. JLR/dn M°88 -144 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 671 -3460 FRIDLEY, MN 55432 EXT. 117 2 -A MINNEAPOLIS: 780 -4994 . CHISAGO CITY: 257 -1657 Z^Q)C�[�0HMG�0 GENERAL CONTRACTORS, INC. INSTITUTIONAL — COMMERCIAL — INDUSTRIAL 27540 KIRBY AVENUE CHISAGO CITY, MN 55013 April 8,1988 Mr. Nasim Qureshi Fridley City Manager Fridley,Minnesota Dear Mr. Qureshi, This is a request for a meeting with the Fridley HRA to consider a HRA loan for site improvements, for a 20,000 s.f. office building (see attached site plan), on lots 17 & 18, Block 2, Spring Valley Addition, City of Fridley. Use of the proceeds would be as follows; 1.) Building soil corrections. Remove, replace and compact approximately 4,000 cubic yards of soil. $35,000.00 2.) Parking and driveway soil corrections. Remove, replace and compact approximately 7,500 cubic yards of soil and lay 7,000 square yards of soil fabric. $75,000.00 3.) Drainage ditch improvements. Enclose approximately 350 lineal feet of open drainage ditch on the south side of property line. $35,000.00 Total $145,000.00 For evaluation purposes the total projected construction and developement costs will be approximately $1,350,000.00. R ectfvlly su CnskGi, 'tled; Richard chi Pres. TRASH ENCL08URE' i f ' • J • -f W EI f � j 2 -B 1 O• O 0.000. SF _ 2 -STOR - OFFICE dUILDINO:1 N ' -24 - CENTRAL'. AVENUE` ,::SITE- PLAN' SCALE. 1'::40�a M9CHIN8K1 __OENERAL._.CONTAA�tOA8�LNC. . % • �••• fog+ WN • • c�a y 1 I �• •& Al I in lonrl O 2 Y Q x Z N••R 2 -c 1 e j• • e t "t C a• n I _ �o d . $ $ G4TNE I L PAU c S o, N 10 Z c' c ii•• IMIN N••R 2 -c 1 e j• • e t "t C a• n I _ �o d . $ $ G4TNE I L PAU c S o, N 10 Z c' c �OUSMG and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: LAWPENCECOMMERS,CHAIRMAN DUANE PRAME VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY MEND M: Housing & Redevelopment Authority Mwbers MEND PMM: Jock Robertson, Executive Director of MA MDU DATE: June 3, 1988 RBGARDn G: Stinski Office Building Proposal The 31,718 square foot office building project proposed by Cheryl Stinski first requires a rezoning of the northerly portion of the site to CR -1, General Office (see attached map). The City Council public hearing is scheduled for June 6th, and the Planning Commission has recommended approval with several stipulations (see copy of minutes in packet). If the HRA wishes to proceed with the requested assistance for this project, staff would reccmnend the following: 1. The developer provide more details on building material specifications and costs which would indicate a higher quality of development than would no= al l y be required under the building and zoning codes. 2. A successful negotiation of a development agreement with a 15 year loan for $220,000 (9% of estimated project value of $2 1/2 million) which is similar to that of Springbrook Apartments. First three years no principal interest, next two years interest only, last ten years ram�ining principal and interest. 3. Ching cn secmd mortgage upon issuance of certificate of occupancy by the City of Fridley. It is iavortant that we get a quality development on this site which will complement the Lake Pointe Cbrorate Center project which will be diredtly across T.H. 65. This proposed site is within the Moore Lake tax increment financing district. ri-88 -144 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. 08 12) 671 -3450 FRIDLEY, MN 55432 EXT. 117 Im .://J/d-r 34 The Housing and Redevelopment Authority In and for the City of Fridley City of Fridley 6431 University Avenue HE Fridley, Minnesota 55432 Attentions Jock Robertson, City Planner Res 1001 Hillwind Road Lott 3 Addition% Aud Sub No 25 941 Hillwind Road Lott i Blkt 1 Additiont Hillwind Dear Mr. Robertson, Page 1 of 2 Platt 54133 Platt 56217 I would like to submit to the Housing and Redevelopment Authority for their recommendations the following statement and documentation regarding the hardship which precludes the development from proceeding without the assistance of tax Increment financing. The proposed development would not reasonably be expected to occur within the reasonably foreseeable future, without the use of tax increment financing. The existence of the Project to more intensive developmen, Increase the tax base of the authorities and maintain and opportunities for employment City. In the City will contribute L and use of the land to City and overlapping taxing provide for an increase in for the residents of the Conventional, commercial financing to pay the capital cost of the Project is available at such costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing cost, the Project is more feasible. " - Industrial revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. The issue of revenue bonds could finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of capital projects consisting of properties used and useful In connection with a revenue producing enterprise, such as that of the applicant, and the issuance of such bonds by the City would be a substantial inducement to the applicant to construct its facility in the City. W Page 2 of 2 Attached please find draft documents which itemizes the construction costs, and a short simple summary of operating expenses and revenue projections. Your attention and consideration to this development Project is very such appreciated. Sincerely, s Cheryl Stinski 1612 Berne Circle Fridley, Minnesota 3-C Attachment COSH LAND....... ............................... 195.000 ARCHITECT.. ............................... 80,000 Civil 3 Structural.... 0 ...... 0 ....... 06 10,000 SURVEYING - Building i topographic Site utility, grading 3 drainage plan 5,500 SITEPREPARATION ........................... 30,000 320,500 BUILDING (32,718 X 30.00 sq. ft. ) ......... 10 633, 900 BUILD -OUT (32,718 X 13.00 sq. ft.) ...... 490,770 PARKING.... ............................... LANDSCAPING............................... DRAFT PROFORMAs 32,718 sq. ft. x 70 X = 22,902 Debt services 3-D Attachment 22,902 x 751 leased 17,176 Operating costs ! 2.45 sq.ft. 56,000 Taxes s 0 2.30 sq. ft. 75,380 331,300 Revenues 10.30 nr 2.45 operating expense 2.30 taxes i S. 25 17, 176 x 15.25 261,193 261,193 70,107 3-E F IYDL& CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MINNESOTA 55432 • PHONE (612) 571 -3450 April 26, 1988 Ms. Cheryl Stinski 1612 Berne Circle Fridley, W 5542 Dear Hs. Stinski; I have been asked by Jock Robertson, Executive Director of the Fridley Housing and Redevelopment Authority, to update you on the HRAts response to your request for tax increment financing assistance with your proposed office building project on Hillwind Road. In accordance with Minnesota Statutes 273.74, Subdivision 3(b), before a tax increment financing plan can be approved, a municipality must determine "that the proposed development or redevelopment, in the opinion of the municipality, would not reasonably be expected to occur solely through private investment within the reasonably forseeable future and therefore the use of tax increment financing is deemed necessary." Consequently, municipalities have had to determine a hardship exists which makes site development cost prohibitive without public assistance. In the past, tax increment financing has predominately been used to assist projects which require excessive site soil oorrection or the construction of public improvements necessitated by state traffic or pollution control requirements. Information regarding the degree of correction needed or the dircet costs associated with meeting state requirements help the HRA determine hardship and therefore the degree to which the HRA will commit tax increment financing assistance. Your development package was presented to the HRA for consideration on April 14, 1988. Before the HRA oan respond further to your request for HRA assistance, it In necessary for you to submit a statement describing the particular hardship which precludes the development from proceeding without the assistance of tax -increment financing. The documentation you submit substantiating a hardship will be considered at the May 12, 1988 HRA meeting., If you have any questions in this matter, or require additional information, please do not hesitate to call either Jock Robertson or myself at 571 -3450. Sincerely, Samantha Orduno Management Assistant for Economic Development SO /lm enclosure 3-F Page 1 of 2 The Housing and Redevelopment Authority In and for the City of Fridley City of Fridley 6431 University Avenue NE Fridley, Minnesota 55432 Attention: Jock Robertson, City Planner RE: 1001 Hillwind Road Lot: 3 Addition: Aud Sub NO 25 Plat: 54155 941 Hillwind Road Lot: 1 Blk: 1 Addition: Hillwind Plat: 56217 Hillwind Office Plaza Approx. 33,000 sq. ft., 3 story office complex with a cost of approximately $1,980,000.00. Dear Mr. Robertson, Subsequent to our discussion I submit to you the Development Package for you to present to the Housing and Redevelopment Authority In and for the City of Fridley, on April 14, for their perusal and consideration. This following numerically outlines the specific objectives of a development package that are essential to achieve the redevelopment of the above documented Project Area: Development Package 1. Recommendation of rezoning of Lot: 3 Aud Sub No. 25 to CR -1 for redevelopment. 2. Development part of City's Redevelopment Project and designated as a Tax Increment Financing District. 3. HRA to enhance development by: - -A site survey according to AIA Document G 601 - -Site borings at 3 or 4 exact locations - -A civil engineer consultant to do a drainage plan showing all utility connections and services available, i.e., electrical, gas, water storm -- Public Improvements, demolition and site preparation, etc; -- Installation of development infrastructure -- Installation of parking lot, curbing; etc. -- Installation of sewer and water 3-r Page 2 of 2 4. HRA recommendation to purchase the property - Lot: 3 Aud Sub No 25 and Lot : 1 Blk: 1 Hillwind Addition (as described above) from fee owner at an agreed price, and sell back, at a reduced price, to fee owner on a second mortgage at 8% per annum (length of bonds or mortgage). 5. Recommendation that the City of Fridley sell IDB's to assist the developer to fiance projects costs. 6. Any other assistance HRA can offer. As a point of information, and also, a issue we discussed at our first meeting; was that a contract for private development by and between the Housing and Redevelopment Authority in and for the City of Fridley and Fehling, Fehling, and Nybo (now Stinski), was previously committed to in 1982. This development contract was for the redevelopment of the project area legally described on page one. Your attention and consideration to this development package is very much appreciated. Sincerely, e VSt s 1612 Berne Circle Fridley, Minnesota M m YI t O I !y L I =, y i� L Lr w � i 3-H G . 'el •° nor • �� ,+ I �T, .•sa�r If' r C I _ J r � I i T m 000 � ,Io�� I L i N 5 0 /A a Y SITE PLAN ro L a 1 dr N COI O r Q G . 'el •° nor • �� ,+ I �T, .•sa�r If' r C I _ J r � I i T m 000 � ,Io�� I L i N 5 0 /A a Y SITE PLAN 3-I oi. 1 AR s - o -a 3 L � i s S u S IT w� z d m. g �O -L5 poi t H a E Ws • N J i b W lk% ,o �z W =1'A FLOOR PLAN 3-J ELEVATION V V a • M • - �VM- ELEVATION OUSING and REDEVELOPMENT AUTHO$ITY COMMISSION MEMBERS: LAWPENCE COMMERS, CHAIRMAN DUANE PRAIRIE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY MW TO: Housing & Redevelopment Authority Members MEAD FROM: Jock Rabertsou, Executive Director of HRA MEM DATE: June 3, 1988 RDGARD1W: Proposals for Redevelogrnnt of 57th Place Corner on University Avenue Of the two coxpeting developers interested in redeveloping the northeast quadrant of University Avenue and 57th Place, Winfield Development has proceeded to the point of developing more detailed proposals and building plans (see attached exhibits). The other developer, the Commers Company and Rosewood Corporation, have indicated that they will have preliminary plans ready to submit by June 15, 1988 and final plans scheduled for completion by July 1, 1988. Both Prospective redevelopers apparently have sane options on alternate parcels within the entire site. I suggest that HRA give review to Winfield proposal this month and hold off any final action until they are able to review the Canners /Rosewood proposal at the HRA meeting in July. M-88-145 r 1 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY, MN 45432 EXT. 117 June 2, 1988 Wlnfleld Developments, 3300 Edinborough Way Inc. Edina, Minnesota 55435 Mr. James L. Robinson Planning Coordinator City of Fridley Civic Center 6431 University Avenue North East Fridley, Minnesota 55432 Re: 57th and University Redevelopment Your letter of May 26, 1988 Dear Jim: 4-A 612- 835 -5932 I am responding to your letter of May 26th to Mr. William Fogerty. By separate cover you will receive site data and corresponding elevations, parking plans, and landscape designs as required in your letter. Please consider them part of this proposal when they arrive at your office. We estimate that the land area of the proposed redevelopment project contains approximately 114,000 square feet on which we propose to build a facility for "quasi - retail" use which would contain about 20,000 total square feet of building area. The building would be constructed of basically brick, glass and metals and, as you can see from the elevations, will contain more of a business center look than pure retail design. We do not want to prohibit retail usage but aim to provide a facility which is several notches above the typical retail center image. You will note that we have designed a substantial portion of the building for bank use and, indeed, have a Letter of Intent from a bank for 8,000 square feet in the project. We foresee the balance of the project being filled out by a small "sitdown" restaurant (not fast food) along with a mix of insurance agents, video stores, opticians and, perhaps, some specialty showroom space. Since this is one of the major entryways to the City of Fridley we have designed the project to present an image consistent with this location. Landscaping will be designed with all due consideration given to the residential nature of the area immediately behind and adjacent to the project. We feel that the completed value of the project when fully built out will produce a market value of approximately $1,200,000. Page 2 Mr. James L. Robinson June 2, 1988 We presently have the duplex which is part of the proposed redevelopment area under Purchase Agreement and as far as City assistance we would appreciate the following considerations: i) Condemnation by the City of the entire redevelopment site; ii) Clearing and demolition of the present improvements and foundations located on the site as well as relocation of access, etc., as per the forthcoming plans and filling of any foundations so as to bring the entire site up to substantially uniform grade; iii) We will pay $3.00 per square foot for the land and require no further City assistance or, as an alternative, we will pay $4.00 per square foot for the land if the City will provide us with a $100,000 second mortgage, interest only, payable in five-years-or upon sale or refinancing of the project. As far as a timetable for development of the site, we anticipate a six month period commencing July 1st to allow for final negotiations with our bank tenant along with condemnation proceedings, followed by a six month time frame for construction of the facility. The property would, thus, be at its full market value at the end of 1989 and fully assessable on January 1, 1990. You may consider this our Letter of Intent to proceed with the development of this property under substantially the same terms and conditions expressed herein. This proposal is contingent on negotiating a mutually acceptable agreement between the HRA of the City of Fridley and Winfield Developments or its assigns. Thank you for allowing us the opportunity to present this project to both the City and the HRA and we sincerely hope you find our proposal acceptable. We do, indeed, look forward to being of service to you. Sincerely, Edward C. Bubany Executive Vice President EC$ /bl 4-C CITYOF FRIDLEY CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY. MINNESOTA 55432 • PHONE (612) 571 -3450 May 26, 1988 Mr. William Fogerty New Brighton Business Center 420 County Road D New Brighton, MN 55112 RE: 57th Place Redevelopment Dear Bill: Pursuant to our conversation on May 25, 1988, I am writing to clarify the information which our staff will need to objectively evaluate your proposal for the redevelopment of 57th Place. Please prepare and submit a refined site plan for the property which includes: building layout with setbacks; square footage and lot coverage calculations; vehicular and pedestrian circulation; service areas; and parking lot layout showing the r=ber of stalls, both required and proposed. In addition, a set of refined building facade elevations which indicate the design and proposed material usage for all sides of the building should also be supplied. Lastly, a prototypical plan for the landscaping of the site would also be appropriate at this time to further assist us in determining the qualitative aspects of your proposed project (this may be incorporated on the site plan). In addition to the design development drawings referenced above, a letter of intent from your organization to the City of Fridley Housing & Revelopment Authority (HRA) should also be forwarded. This letter should include at least the following information: • The proposed center type and a description of the proosed tenant mix. • The proposed square footage of the project and a timetable for the completion of the entire pro.E- . • The estimatez.::arket value for tax purposes of the completed develognent. • The naximum cost per square foot which you are prepared to pay for acquisition of the necessary parcels. * Your proposal as to the amount of subsidy required from the HRA and the form of that subsidy, i.e., second mortgage /land write down. We are requesting interested developers to submit this information to the City Offices-no later than 11 :00 a.m. June 3, 1988. The submittals will be included in the HRA agenda and reviewed by the HRA at their June 9, 1988, meeting. A specific time slot (between 7 :00 p.m. and 9:00 p.m.) for each developer's presentation to the HRA will be assigned by telephone on Monday, June 6, 1988. I trope this answers your questions regarding the status of your proposal. We look forward to reviewing your proposal for the redevelopment of 57th Place. Sincerely, James L. Robinson Planning Coordinator JLR/dn cc: Dave Newman, City Attorney Eck Rdbertsm, fbZ+=kdty DeveZcvpment`Direct& narrol Arviorcnn r-RR -714 CIiYOF FRIDLEY Hay w "ClOTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MINNESOTA 55432 • PHONE (612) 571 -3450 Mr. Joe Cmu ers The Commers many 223 Hamlin Avenue, Suite 620 Roseville, MIV 55113 RE: 57th Place Redevelognent Dear Joe: As a followup to your conversation on May 25, 1988, with Jock Robertson, I am writing to clarify the information which our staff will need to objectively evaluate your proposal for the redevelopment of 57th Place. Please prepare and submit a refined site plan for the property which includes: building layout with setbacks; square footage and lot coverage calculations; vehicular and pedestrian circulation; service areas; and parking lot layout showing the number of stalls, both required and proposed. In addition, a set of refined building facade elevations which indicate the design and proposed material usage for all sides of the building should also be supplied. Lastly, a prototypical plan for the landscaping of the site would also be appropriate at this time to further assist us in determining the qualitative aspects of your proposed project (this may be incorporated m the site plan). In addition to the design development drawings referenced above, a letter of intent from your organization to the City of Fridley Housing & Revelopment Authority (HRA) should also be forwarded. This letter should include at least the following information: • The proposed center type and a description of the proosed tenant mix. • The proposed square footage of the project and a timetable for the completion of the entire project. • The estimated market value for tax purposes of the oampleted development. • The maximum cost per square foot which you are prepared to pay for acquisition of the necessary parcels. * Your proposal as to the amount of subsidy required from the HRA and the form of that subsidy, i.e., seoond mortgage /land write down. We are requesting interested developers to submit this information to the City Offices no later than 11:00 a.m. June 3, 1988. The submittals will be included in the iR A agenda and reviewed by the HRA at their June 9, 1988, meeting. A specific time slot (between 7 :00 p.m. and 9:00 p.m.) for each developer's presentation to the BRA will be assigned by telephone on Monday, June 6, 1988. I hope this answers your questions regarding the status of your proposal. We look forward to reviewing your proposal for the redevelopment of 57th Place. Sincerely, Jam James L. Robinson Planning Coordinator JLR/dn cc: Dave Newman, City Attorney Zack Rcbertsm, _Liamnmi ty Bevel t Director Dan O'Brien C-88- 220 2233 N. HAMLINE AVENUE, SUITE 620 10 May 1988 THE COMMERS R E A L E S T A T E INVESTMENTS, DEVELOPMENT, CONSULTATION Mr. Jock Robertson Community Development Director City of Fridley 6431 University Avenue N.E. Fridley, MN. 55432 RE: 57th Avenue N.E. Development Dear Jock, 4FE ROSEVILLE, MN 55113 612- 631 -3775 As you know, we have been proceeding with you and Jim Robinson to obtain an option for purposes of acquisition and redevelopment of the land parcels that represent the 57th Avenue Development. After four weeks of negotiations with attorneys, at this point in the process, we have a finalized option contract to purchase the Rapid Oil property, which represents the major parcel in the above referenced project. We also have a second option contract currently in the hands of Ranko & Icena Schuur which represents the second largest parcel in the above referenced project. At the present time, they are in the process of reviewing the proposed option, and we expect to hear from them the end of this week. We anticipate calling you within the next few days to set up a meeting to show you our acquisition details and also our further work on the design plans for the center. Thank you, Jock, for your help and we to working with you and Jim and the involved at the City of Fridley mutually beneficial project. Sincerely, Jq�C comers J so cc:Jim Robinson Bruce Lundgren are looking forward others who will be as we pursue this Engineering Sewer water Parks Streets Maintenance MEMORANDUM TO: Jock Robertson, HRA ESxecutive EW88 -101 FROM: John G. Flora, (Public Works Director DATE: June 1, 1988 SUBJECT: Fridley Plaza Center Parking With the initiation of work to construct the Fridley Plaza Parking Ramp, there is a need to provide temporary parking for the Fridley Plaza office building. The Columbia Park Clinic has not opted to develop the empty lot along the University Avenue Fast Service Drive. This lot can be temporarily converted to provide approximately 100 parking spaces. This number is about equal to what will be lost during the ramp construction. The city should be awarding the 1988 Street Inprovement Project this month. During the award, a change order can be approved for the temporary placement of an asphalt parking lot om the available HRA property for approximately $10,000. Recommend that HRA authorize the city to amend the 1988 Street Project to include construction of a temporary asphalt parking area on their lot for a cost mt to exceed $10,000. This amount should be available within the total funds allocated for construction of the parking ramp. JGF /g 3/6/2/12 wo 5-^ FOURMIES AVENUE, OUSING and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: LAWPENCE COMMERS, CHAIRMAN DUANE PRAIRIE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEVER CITY OF FRIDLEY MEND M: Housing & Redevelognent Authority Members MEND FROM: Jock Robertson, Executive Director of HRA MEMO DATE: June 3, 1988 REGARDIM: "The Cottages" of the Housing Proposal The Cottages are small single level rental townhouses limited to those over age 55 and designed for easy access and low maintenance. The City Council has reviewed the general characteristics of this project and one Council member has visited the Stillwater project. The Council's reaction has been very favorable. Housing for the elderly is generally allowed in all residential and cainnercial zones with special use permits. Therefore, a rAmber of potential sites are available. The developer, the Arkell Development Corporation, is in the process of trying to secure cmmitments for a number of sites in the City. The developer requires housing revenue bond and interest rate reduction program to provide the project at the required level (see the attached description). JLR/dn M-88 -146 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571 -3450 FRIDLEY, MN 55432 EXT. 117 6-P. THE ARKELL DEVELOPMENT CORPORATION THE COTTAGES OF FRIDLEY FINANCING NEEDED There are two financing tools that Arkell Development needs to build one of our senior projects in Fridley. These are: 1.) Housing Revenue Bonds; and 2.)Interest Rate Reduction Program. The reason that both are necessary is because our rents start at $385 per month for a one bedroom unit. A brief description of these financial tools is given below. Housing Revenue Bonds Arkell Development will have to use Fridley's bonding authority to issue Housing Revenue Bonds.The use of these bonds will allow the project to obtain financing at a cost that is below conventional financing rates. The use of the City's bonding authority will not create debt for which the City will be responsible. Interest Rate Reduction Program Under this program the City takes part of the taxes paid by the project and uses those funds to buy down the interest payment incurred by the Housing Revenue Bonds. This buy down is requested for at least twelve years. Its intent is to make the low rents mentioned above continue to be possible for the life of the project. Standard TIF assistance would be an option if IRRP were not feasible. However, we feel that it is in the City's best interests to use it because of-what it does not do that TIF does, namely create a debt situation for the City should the project fail. Upon your approval of our request, we expect to finalize our spread sheets and have our lawyer and financial advisor meet with yours to draft and submit a final Developer's Agreement for your written approval by July 7. Metro Square Building • Saint Paul, Minnesota 55101 (612) 293 -0910 W" THE COTTAGES RENTAL HOUSING FOR THOSE 55 YEARS AND BETTER OWNED AND DEVELOPED BY ARKELL DEVELOPMENT CORPORATION 500 Metro Square St. Paul, MN 55102 DEVELOPER'S REPRESENTATIVES: E. MARK CLEMENS CAROL J. SLAVICK 370 Summit Avenue St. Paul, MN 55101 (612) 228 -0106 SUMMARY OF A TYPICAL COTTAGE PROJECT m Project: The Cottages: 64 Units: 32 720 square foot 1 bedroom 16 880 square foot 2 bedrooms (side -by -side bedroom floor plan) 16 880 square foot 2 bedrooms (end -on -end bedroom floor plan) 12 attached garages 40 detached garages 32 mini storage units Rents: $385 for a 1 bedroom $485 for a 2 bedroom $30 and $45 for garages $15 for mini storages Financing: Housing Revenue Bond of $2,900,000* for 64 units • Developer Contribution of $300,000* Total Project Costs of $3,200,000* Real Estate Taxes are refunded to reduce the interest rate of Housing Revenue Bonds, thereby creating a rent reduction rate subsidy of $55,000* Site: 5 to 10 acres of relatively flat land located near shopping and churches. Owner /Developer: John Arkell Chief ExecuLive Officer Arkell Development Corporation 500 Metro Square St. Paul, MN 55101 Project Managers: E. Mark Clemens Carol J. Slavick 370 Summit Avenue St. Paul, MN 55102 (612) 226 -0106 *Thase numbers are approximate and subject to change. e 1 THE COTTAGES Arkell Development from St. Paul, Minnesota is pleased to present to you its unique senior housing option known as 'THE COTTAGES.' The Cottages are rental housing units that are patterned after a New England Cottage. They are designed to be an attached home rather than a mid or high - rise apartment unit. Single story, one and two - bedroom rental lunits having a density of approximately 64 units per 5 to 6 acres (12 units per acre) results in a project which looks like a single - family housing project. They are frame construction built on slab and are painted gray with white trim. Stone facade detailing, picket fences and arbors add to its charm. Each tenant has his /her• own front entry, individual street address, yard space and garden area. Pets are allowed in certain units. Tenants are allowed to paint or wallpaper with permission. The units have a spacious living rouni, a kitchen equipped with a stove, refrig- erator, disposal, and one or two bedrooms. Each bedroom features a large storage /clothes closet. Also included is a hookup for a standard washer and dryer. A patio /porch will be put on all projects that will be developed in the future. The maintenance inside and out is part of the monthly rent, including sewer and water, c,arbage rerioval, snow renitival, and all lawn maintenance. This allows for a totally free living environment for The Cottage residents. To make their life style even more enjoyable and convenient, we try to place our communities as close to shopping and other service facilities as possible so our tenants can walk to the services they need. Services such as Meals -On- Wheels, City senior van transportation and medical -care art-coordinated by the Property Manager as may be needed. Residents thdL do not reed these services need not pay for them; therefore, our rent levels -.reflect an independent- living price range. The manager also serves as Activities Director and plans pot luck meals, card parties and outings as the residents desire. A monthly newsletter keeps the residents informed and introduces new residents who have moved into the project. CrL This re::ults in a truly amazing - -sense of community" within the community -at- large which gives the senior independence and privacy while at the same time offers companionship and activity as each chooses. This concept has been ex- tremly popular with seniors as is evidenced by the high (97 %) occupancy rate at the Stillwater project. The Cottages are built in clusters of four "L-- shaped units. These clusters are then attached end -on -end to create buildings that have been as large as 36 units and as small as four units. However the clusters are put together, they will still allow the residents to have an individual entrance and their own front yard. The project is geared to serve low to moderate income seniors. To accomplish high quality construction with below market -rate rents ($385 per month for a 1 bedroom units, and $485 for a 2 bedroom units) a cooperative effort between the developer and City is contracted. The majority of the project is financed with housing revenue bonds. Arkell Development contributes a 5 year subsidy of the units - - -an amount equal to $1500 per unit ($96,000 for 64 units) is put into an escrow account. This insures a 1.2 debt - coverage ratio required by the bond holders. As the rents go up (5% annually), by the time the escrowed amount is used up, the rent increases are able to make the project operate on its own. Additionally, Arkell Development puts in approximately $300,000 there- by making its total contribution about 15% ($480,000) of the total $3.2 million cost. In exchange, Arkell Development requests City help in one of two forms: Either Tax Increment Financing in the amount of approximately $500,000 or the Interest Rate Reduction Program, whereby Arkell Development pays the property taxes to the City, and in turn, the City reimburses the developer via a Trustee who passes the monies on to off -set our bond interest payment. _Following City approval, construction can begin within 60 to 90 days. Typically, _80% occupancy is accomplished after seven months. We look forward to working with you and your community to provide this unique and superb housing option to your seniors. 6-F ARKELL DEVELOPMENT CORPORATION Past and Current Development Projects The Cottages of Stillwater Phase I Stillwater, Minnesota 64 Units The Cottages of Stillwater Phase II Stillwater, Minnesota 60 Units The Cottages of Stillwater Phase III Stillwater, Minnesota 58 Units The Cottages of Wallmark Lake Phase I Chisago City, Minnesota 64 Units The Cdtages of McFarland Phase I McFarland, Wisconsin 72 Units Wooulake Point 157 Units Richfield, Minnesota Seniors' Complex Kennington of St. Anthony Phase I St. Anthony Village, Minnesota 153 Unit Seniors' Complex 495 Units Total Oak Glen Development 465 Acres Golf Course/ Stillwater, Minnesota Housing Metro Square Office Building 448,371 Gross St. Paul, MInnesota Square Feet Hamm Office Building 340,000 Gross St. Paul, Minnesota Square Feet Parkview Estates Condominiums 96 Units Roseville, Minnesota Towers Condominiums 512 Units Minneapolis, MInnesota Ridgewood Hills Condominiums 23 Units Minneapolis, Minnesota Three Fountains Condominiums 36 Units Minneapolis, Minnesota MCFARLAND FLOOR PLANS DATH OATH TWO BEDROOM UNIT 854 Square Feet McFarland Calendar For November November 5 (Thursday) - Senior Club Board Meeting November 7 (Saturday) - Hope Lutheran Church Annual Bazaar & Luncheon November 12 (Thursday) - Senior Pot Luck at 12 Noon November 14 (Saturday) - Boy Scout Paper Drive, 8 A.M.to 12 Noon November 20 (Friday) - Public Euchre Party November 26 (Thursday) - Birthday Celebration Followed by Bingo, THANKSGIVING McFarland Emergency Fare, Police, E.M.S. Ambulance 226 -4920 6-C Page 7 ONE BEDROOM UNIT 672 Square Feet {� ONE BEDROOM UNIT W 616 Square Feet "Where Life Begins in Your Fifties" 1 & 2 Bedroom ewe o"ecTnhCand Rental Cottages Rent From $300 /mo. of Plus Utilities (Garages Available) For Further Information: (608) 838 -6515 5165 Taylor Road McFarland, Wisconsin 53558 RENT INCLUDES: • Maintenance Free Living, lawn care, snow /trash removal • Private entrance /address, attached/detached garages • Drapery rods, carpeting • Appliances, washer /dryer hook -ups • 24 hour on -site staff • Air Conditioning COMMUNITY AMENITIES • Community Center with kitchen, game room, library • Craft and hobby room • Additional central storage & R. V. Parking .e �� I. < I i � � • � L� � cc C9 :1j� 'mil• w"''x "� a '��, €..,_. ESTIMATES pIG6i. ARClUIBi`7s. tPlAl11A1JyR5 222 EAST LITTLE CANADA ROAD, ST PAUL, MINNESOTA 55117 612 484 -0272 City of Fridley 6431 University Ave. N.E. Fridley, MN 55432 ATTN: John Flora Director of Public Works 7 -A INVOICE May 23, 1988 RICE CREEK ROAD INVOICE NO. 2009 SEH FILE NO. 88057 FOR PROFESSIONAL SERVICES. FOR PERIOD NOVEMBER 15, 1987 THRU APRIL 16, 1988 For plans and specifications for reconstruction of Rice Creek Road from T.H. 65 to Central Avenue. In accordance with our contract dated October 8, 1987. Project Engineer $ 428.33 Design Engineer 23,758.41 Technician 2,343.10 Drafter 3,247.14 Survey Crew 317.65 Clerical 373.07 Mileage and Expense 1,141.23 $31,608.93 Robert A. Eller Associates, Inc. 2,420.00 Twin City Testing 3,040.09 TOTAL AMOUNT DUE AND PAYABLE THIS INVOICE . . . . . . $37,069.02 MAXIMUM FEE: $52,500.00 INVOICED TO DATE: $47,615.39 Ft� of , Cistu�s , SS MY OOU OF RAMSEY. CRY OF SAINT PAUL Donald E. Lund ht Said Courdy " State. being duly swwn. m ore. up, mu he is vice President of die ShW- EGW- Hendnel Wn, tne..1W 90 In ag , g aDMUM a and true: Mw the seniees therein ChaWd were aetuaey rendered. WW d the ratue 1ltsrein that the tees w wrowds Ct p tB� lwje are such /ya /}re mowed by taw: and that no Pan of such swount has bean pn0 _ A /^ \ . /il. 1 / Subtteribed and ttwom m before My aommsson sea Q -] 19 a ■ BETTY J. ERSKINE NOTARY PUBLIC— MMtiESOTA RAMSEY COJWTY MY COMM EXPIRES MAY 2, 1992 tr �'■ SHORT ELLIOTT ST PAUL, WISCONSIN .ALES, HENDRICKSON INC MINNESOTA ISCONIt: CLAI MS 1751 - 1760