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
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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
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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
-----------------------------------------
-----------------------------------------
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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.
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TELECOPY COVER SHEET lLCOR Date:
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TELECOPY 8�„ (ol �) 3L16 - 296
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FROM: CENTENNIAL MORTGAGE, INC.
NAME: '
MESSAGE:
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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'
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-24 -
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�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
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ELEVATION
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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
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19
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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